Sartorius AG · XETR:SRT
Sartorius — ESG Presentation (February 2020)
41 slides from Sartorius's sustainability presentation, February 2020
Slide 1: Simplifying Progress – SRI Presentation
Simplifying Progress SRI Presentation Sartorius AG, February 2020
Slide 2: Disclaimer
Disclaimer This presentation contains statements concerning the future performance of the Sartorius Stedim Biotech Group. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we cannot guarantee that they will actuall
Slide 3: Agenda
Agenda Company Overview and Strategy Responsibility Overview ESG Performance 3
Slide 4: Sartorius in brief
Sartorius in brief 60+ Locations worldwide, headquartered in Göttingen, Germany 9,016 Employees ~1.83bn Sales revenue 27.1% EBITDA margin1 ~€12.5bn ~35% ~40% ~25% Sartorius AG market capitalization; Sales revenue Sales revenue Sales revenue included in MDAX and TecDax Americas EMEA Asia | Pacific As
Slide 5: Covering most steps of the biopharma process chain
Overview and Strategy Covering most steps of the biopharma process chain • Production process design is inalterable for the lifetime of most drugs Culture media Seed Scale-up Fermentation • Individually preparation cultivation customized production process UPSTREAM required for all DOWNSTREAM drugs
Slide 6: Attractive market environment with strong growth opportunities
Overview and Strategy Attractive market environment with strong growth opportunities Favorable 9bn people by 2050; demographics >2bn 60 yrs or older Rise of ~30% CAGR for biosimilar ~8% biosimilars sales 2018–2022 CAGR for biopharma market 2018–2025 Strong R&D pipeline; advances in gene and >40% sha
Slide 7: Sales revenue has more than doubled over the last 5 years
Overview and Strategy Sales revenue has more than doubled over the last 5 years +14.8% Sales CAGR +13.8% +13.2% 40 1900 ~€1.83bn EBITDA-margin1) +7.4pp +9.3% 38 +18.2% 1700 36 +16.0% 34 1500 32 1300 +12.6% 30 1100 +8.8% 28 +13.6% 900 27,1 26 25,1 25.9 700 €733m 25.0 24 23.6 ~€650m 22 500 21.0 20 19.
Slide 8: U.S. remains the most important market; China with the highest growth rates
Overview and Strategy U.S. remains the most important market; China with the highest growth rates Biologics market growth forecast CAGR 2018 to 2022, € in billions U.S. U.S. ~100 ~142 Europe ~+9% U.S. Europe ~44 ~56 China ~+7% Europe China ~29 ~€217bn ~€300bn ~52 ROW ~+16% China ROW ~44 ~50 • Biolog
Slide 9: Acquisitions strengthen and differentiate the Sartorius portfolio
Overview and Strategy Acquisitions strengthen and differentiate the Sartorius portfolio Essen Intellicyt ViroCyt BioScience Acquisitions to remain part of strategy 2013 2014 2015 2016 2017 2018 2019 2020 TAP AllPure Bio Cellca kSep Umetrics Biological Biosystems Technologies Outsource Industries 9
Slide 10: Recent investments: Infrastructure prepared for further growth
Overview and Strategy Recent investments: Infrastructure prepared for further growth Göttingen, Germany Aubagne, France Expansion of lab instrument Capacity extension for manufacture and extension of single-use bag capacities for filter production; production new Application Center Beijing & Shangha
Slide 11: Leading positions in key technology platforms
Overview and Strategy Leading positions in key technology platforms Sartorius Merck | Danaher | Thermo GE Top 3 Players Millipore Pall1) Fisher 1. Merck | Millipore Filtration 2. Danaher | Pall 3. Sartorius 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Fermentation
Slide 12: Limited dependence on individual accounts
Overview and Strategy Limited dependence on individual accounts Long-term business relationships with leading global Limited dependence on individual accounts (bio-) pharma companies Sales to Top 50 customers in 2019, € in millions 350 ~50% ~55% 300 ~45% ~40% 250 Cumulative 200 ~25% share 150 100 50
Slide 13: Sartorius 2025 targets and initiatives
Overview and Strategy Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regional Participate in strong Chinese market growth ~ €4bn Continue to outperform the important U.S. market Sales revenue Portfolio Add high-impact innovations, e.g. digital tools ~2/3 ~1/3 Enhan
Slide 14: Agenda
Agenda Company Overview and Strategy Responsibility Overview ESG Performance 14
Slide 15: Strong company values as the basis of all our activities
Responsibility Strong company values as the basis of all our activities Sustainability Openness Enjoyment Growing profitably and acting Driving change and progress Working in an energetic and responsibly towards all stakeholders internally and externally rewarding environment 15
Slide 16: Our corporate responsibility endorsements
Responsibility Our corporate responsibility endorsements Sartorius is a signatory of the United Sartorius is a member of econsense, Nations Global Compact and is the Forum for Sustainable Development committed to sustainable global of German Business. business. 16
Slide 17: Our corporate responsibility basics
Responsibility Our corporate responsibility basics Environment Social Governance • Environmental Policy • Policy on Labor Practices • Anti-Corruption Code • Policy on Occupational Safety • Sustainable Supply Chain • Human Rights Strategy Management • Code of Conduct • ESG Risk Reporting • Corporate
Slide 18: Transparency
Responsibility Transparency Non-financial group Overall rating: 57 of 100 Overall rating SSB: A Overall rating: C statement published in Environment: 70 Overall rating Group: AA Social governance: C+ our annual report and externally audited Labor: 60 Environmental rating: C- Ethics: 50 Staff and sup
Slide 19: Our ESG core topic: Better health for more people
Responsibility Our ESG core topic: Better health for more people We empower scientists and engineers to simplify and accelerate progress in life sciences • Anticipate clients needs • Time savings in drug • Accelerate innovation discovery • Collaborate • Cost savings in drug production • Bring expert
Slide 20: Sartorius' contribution to SDGs
Responsibility Sartorius’ contribution to SDGs Three-step materiality analysis to determine which SDGs are related to Sartorius business activities 1. Identification of the SDGs that are significant for Sartorius 2. Examination of the relevance of each topic to our business, as well as the potential
Slide 21: Next steps
Responsibility Next steps 1. Policy / Strategy / Targets 2. Measures / Management Approach • Endorsement • Sustainable Supply Chain Management • Non-Financial Risk Management Aspects 3. Results / Communication • Environmental Policy • Policy on Labor Practices • Non-Financial Group Statement • Polic
Slide 22: Sustainability in the supply chain
Responsibility Sustainability in the supply chain CODE OF RISK MANAGEMENT ASSESSMENTS & CONSEQUENCES CONDUCT AUDITS Foundation for collaborating Risk-based approach to Multi-level approach to Actively involve with with our business partners setting priorities for review verify compliance suppliers •
Slide 23: Biopharma accounts for a marginal share of plastic production
Responsibility Biopharma accounts for a marginal share of plastic production The world produces more than 400 million tons of plastics every year; biopharma accounts for only 0.008% Million tons 600 Necessary to differentiate between legitimate and non-legitimate 500 applications for single-use plas
Slide 24: Agenda
Agenda Company Overview and Strategy Responsibility Overview ESG Performance 24
Slide 25: Responsible management and long-term value creation
ESG Performance Responsible management and long-term value creation Energy efficiency Environmental Water management performance Waste management Occupational health & safety Economic Long-term Social Employee development performance value creation performance Labor practices Governance
Slide 26: Certifications
ESG Performance Certifications ISO 9001 17 production sites = 90% of employees in production ISO 14001 6 production sites = 53% of employees in production ISO 50001 4 German companies = 39% of employees in production OHSAS 18001 Production site in Beijing Companies that are not yet certified are man
Slide 27: Energy consumption and emissions
ESG Performance Energy consumption and emissions • Emissions caused by direct operations are Energy consumption comparably low Direct energy Other • Target: Keep GHG1) emissions at under ~45% ~4% proportionate levels with respect to revenue growth Electricity from public grid • Primary energy source
Slide 28: Water management
ESG Performance Water management • Most water is used for rinsing in the manufacture Water consumption of filter membranes acc. to the precipitation bath 2019 2018 method in Göttingen Water consumption in 460.22 425.53 • Water purchased mainly from public supply megaliters • Target: Reduce water con
Slide 29: Waste management
ESG Performance Waste management • Target: Reduce waste in relation to revenue / Recycling Waste for recycling Waste for disposal increase recycling quota ~54% ~46% • Hazardous waste mainly from membrane production (evaporation method) • 3 of 4 evaporation machines in Göttingen • Organic solvents ar
Slide 30: Single-use technology
ESG Performance Single-use technology Single-use products offer advantages over Construction Time-to- Energy cost Water cost conventional stainless steel devices cost market Social perspective -25–35% • SU products enable manufacturing processes that -30–50% are safe as cross contamination is avoide
Slide 31: Employees
ESG Performance Employees • More than 1,000 new hires per year Fluctuation 2019 2018 • 108,888 hours of education and training; Attrition rate excl. expired fixed- 7.5 8.4 ~14.7 hours per employee term contracts, in % • Annual performance reviews Attrition rate incl. expired fixed- 9.1 10.2 term con
Slide 32: Diversity
ESG Performance Diversity • People from 82 nations; 48 nations at headquarters Women in overall management roles • 69% of 1,334 managers are non-German Men Women • 63.2% of the Group’s staff are employed 68% 32% outside Germany • Target 2022: women in the first and second management tiers >30% Emplo
Slide 33: Health & safety
ESG Performance Health & safety • Risk assessments of workplaces and tailored Accident statistics training 2019 2018 • Work-related accidents up due to a wider Work-related injuries 253 135 definition of accidents to derive improvement Frequency rate 16.6 10 measures from less serious incidents as w
Slide 34: Sartorius legal & operational structure
ESG Performance Sartorius legal & operational structure Sartorius Group Legal Setup Sartorius AG Preference shares >50% Administered by executor ~91% Free float Ordinary shares Stock market listed in Germany1) ~34% Bio-Rad Laboratories ~9% Treasury shares ~9% Treasury shares ~5% Family owned ~2% Fre
Slide 35: Legal & operational structure
ESG Performance Legal & operational structure Sartorius Stedim Biotech S.A. Board of Directors J. Kreuzburg P. Boissel S. Dexter R. Fáber A.-M. Graffin L. Kappich H. Riey A. Buton Chairman & CEO Independent Independent Sartorius AG Supervisory Board Executive Board 50% employee representatives 50% S
Slide 36: Interlinkage of Sartorius Stedim and Sartorius AG
ESG Performance Interlinkage of Sartorius Stedim and Sartorius AG • In 2007, Stedim Biotech SA merged with the Biotech Division of Sartorius AG, creating Sartorius Stedim Biotech SA with a stock listing in Paris • Sartorius AG (SAG) owns approx. 74% of the shares and has control of approx. 85% of th
Slide 37: Appendix
Appendix 37
Slide 38: Share price performance
Appendix Share price performance 400% 350% 300% Sartorius (prefs.) Sartorius (ord.) 250% Sartorius Stedim Biotech 200% DAX 150% MDAX NASDAQ Biotech 100% 50% May-17 Nov-17 May-16 Jul-16 Nov-16 Jul-17 May-18 Jul-18 Nov-18 May-19 Jul-19 Nov-19 Jan-17 Jan-16 Mar-16 Jan-18 Mar-18 Jan-19 Mar-19 Jan-20 Sep
Slide 39: Extract of the Bioprocess Solutions' product portfolio
Appendix Extract of the Bioprocess Solutions’ product portfolio Filtration Purification Fermentation & Cell Culture Media Fluid Management 39
Slide 40: Sartorius 2025 targets and initiatives
Appendix Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regional Participate in strong Chinese market growth ~ €4bn Continue to outperform the important U.S. market Sales revenue Portfolio Add high-impact innovations, e.g. digital tools ~2/3 ~1/3 Enhance process de
Slide 41: Contacts
Appendix Contacts Petra Kirchhoff Katharina Tillmanns-Pelzer Head of Corporate Communications & IR Corporate Responsibility Phone: +49.551.308.1686 E-mail: petra.kirchhoff@sartorius.com Phone: +49.551.308.2893 E-mail: katharina.tillmanns@sartorius.com Ben Orzelek Sartorius Corporate Administration G