Gerresheimer Ag · XETR:GXI
Gerresheimer — Investor Presentation (October 2022)
49 slides from Gerresheimer's investor presentation, October 2022
Slide 1: Investor Presentation
Investor Presentation Gerresheimer AG October 2022
Slide 2: Disclaimer
Disclaimer − This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development
Slide 3: Gerresheimer at a Glance
Gerresheimer at a Glance
Slide 4: Our Vision: Innovating for a Better Life
Our Vision: Innovating for a Better Life Partner of Choice for Customers and Patients Worldwide Leading partner for the Innovative platforms and solutions for pharma and beauty industry customers and patients worldwide 4 Oct-22 Gerresheimer AG - Investor Presentation
Slide 5: Beneficiary of Global Mega Trends
Beneficiary of Global Mega Trends Reasons to Invest Transformation into an innovative system and platform provider – We accompany the customer along the entire value chain We anticipate growth trends and invest in business opportunities High Value Solutions accelerating growth momentum in all Transf
Slide 6: One Gerresheimer: Broad and Unique Portfolio
One Gerresheimer: Broad and Unique Portfolio Three Segments for One Gerresheimer Revenues 2021 Adj. EBITDA 2021 Leverage at 3.2x EUR 1.5 bn EUR 306 m as of November 30, 2021 Plastics & Devices Primary Packaging Glass Advanced Technologies (P&D) (PPG) (GAT) Revenue 2021 Adj. EBITDA 2021 Revenue 2021
Slide 7: Regionally Present and Globally Connected
Regionally Present and Globally Connected Producing for the Customers at the Customers Strong Focus Strong Global Presence 3 Focus Sectors 36 plants in 15 countries and Sales in 91 countries across 6 continents 81% 12% 7% Pharma & Biotech Cosmetics Other Over 1,500 customers with relationships to ma
Slide 8: Leading Positions in Attractive Niche Markets
Leading Positions in Attractive Niche Markets Overview Market Position Clearly ranking among top three players in addressed markets Regional expansion clearly focusing on increasing market share Top Expanding into high Ampoule, growth emerging Plastic Inhalation Syringe Vials, markets while Packagin
Slide 9: Focus – Transform – Grow
Focus – Transform – Grow
Slide 10: Transformation Fully on Track
Transformation Fully on Track New Gerresheimer: What has Changed? New customers, new orders, new business models Particular emphasis on innovation – High Value Solutions are key growth driver Ambitious ESG strategy implemented Entrepreneurial investment approach into growth opportunities and R&D Min
Slide 11: Changing World
Changing World Operating in a Mega Trend Environment That is Favourable for us Emerging Increasing Markets: Vaccinations as importance of Increasing health growth market biotech care access Increasing level of More self- outsourcing of medication and Cosmetic PharmaCo’s non- individual becomes Healt
Slide 12: Dedicated and Experienced Management Team
Dedicated and Experienced Management Team Since 2019 Complete Dr. Bernd Metzner Dietmar Siemssen Dr. Lukas Burkhardt since 2019 since 2018 since 2018 Chief Financial Officer Chief Executive Officer Board Member Plastics & Devices Primary Packaging Glass Advanced Technologies Management positions Man
Slide 13: Strong Vision: Developed for 2028
Strong Vision: Developed for 2028 Ambitious Goals in Five Strategic Directions Defined To: Growth Value as Innovation Leader and System & Solution Provider From: Commodity Provider with fast follower approach 13 Oct-22 Gerresheimer AG - Investor Presentation
Slide 14: Well-Positioned in Challenging Times
Well-Positioned in Challenging Times Comments on Current Energy Supply Situation Long-term supply German Federal government agreements in place stabilizes energy markets Diversified and long-term supply German government sets up protective agreements provide unique shield for German energy market –
Slide 15: Double-Digit Organic Revenue Growth in FY 2022
Continuously Rolling-out Our formula G Strategy Multiple Contributors to Growth: We are Delivering Double-Digit Organic Revenue Growth in FY 2022 High Value Capacity & Contract Beauty goes Solutions Regional Manufacturing Health Expansion 15 Oct-22 Gerresheimer AG - Investor Presentation
Slide 16: Boosting Injectables & High Value Solutions in the US
Boosting Injectables & High Value Solutions in the US Examples for Capacity and Regional Expansion in Tubular Glass 1/2 Investing up to 94 million USD in US production facility – supported by U.S. Biomedical Advanced Research and Development Authority (BARDA) BARDA has agreed to provide up to ~66 mi
Slide 17: Accelerating the Conversion From Bulk to RTF Vials
Accelerating the Conversion From Bulk to RTF Vials Examples for Capacity and Regional Expansion in Tubular Glass 2/2 Gerresheimer and Stevanato joining forces in the development of an enhanced Ready-To-Fill solution platform. Total cost of ownership Quality improvement advantage Risk of vial breakag
Slide 18: Integrated Solutions Across the Value Chain
Integrated Solutions Across the Value Chain Building on our Long-term Expertise API Drug Drug Customer Invention Formulation Manufacturing Drug Development Fill & Marketing & Process Finish Sales Value Added Systems & Washing & Patient Solutions Sterilization Adherence & Physician Support Containmen
Slide 19: Transforming Gerresheimer into a growth company
Transforming Gerresheimer into a growth company as innovation leader, solution provider and >10% system integrator. +7.6% +3.5% CAGR + 2% 2015 2019 2020 2021 2022 2015
Slide 20: Sound Financial Policy
Sound Financial Policy Strategic Direction ORGANIC INVESTMENT RATING & LEVERAGE − Holistic investment and capital − Consider net financial debt to allocation approach adjusted EBITDA ratio of 2.5x-3x as appropriate for − Investments focus into high Gerresheimer growth opportunities − Temporary varia
Slide 21: Outperforming Markets and Accelerating Growth
Outperforming Markets and Accelerating Growth Gerresheimer Becomes More Successful Step by Step High Single Market Growth Segments Digit Next Level Organic − Innovative products, platforms and Growth solutions − Advanced − Increasing portfolio of high value products Technologies − Focus on injectabl
Slide 22: Increase Sales With Biologic Customers Significantly
Increase Sales With Biologic Customers Significantly Growth Segments: Example Biologics Gx® Biological Solutions - cross divisional team Innovative product solutions for biotech drugs Best possible packaging configuration Interdisciplinary team of scientists, designers, engineers and product manager
Slide 23: Enhance our Portfolio with High Value Solutions
Enhance our Portfolio with High Value Solutions Increase Focus on Own IP and R&D Gerresheimer is a growth company as innovation leader, solution provider and system integrator Continue to innovate: own products with own IP Strategic partnerships and collaborations High Value Solutions as key growth
Slide 24: Partnering: Key to Expanding our Solutions Offering
Partnering: Key to Expanding our Solutions Offering Broadening our Offering With New Partnerships Some important examples: Focus on Customers: Gx Biological Sustainability Solutions Jointly developing next generation solutions BIOLOGICS Focus on Strategic Partnerships: Customer Expanding expertise f
Slide 25: Digitalisation Offers new Business Opportunities
Digitalisation Offers new Business Opportunities Connected Devices & Smart Business Models Digital solutions enable Increase of therapy effectiveness Reduction of global healthcare costs Physician / Platform Disease Manager Service Disease and digital expertise enables Creation of digital health bus
Slide 26: Advanced Technologies: Nucleus for Smart Devices
Advanced Technologies: Nucleus for Smart Devices Innovate: Examples of Advanced Technology Products and Projects GAT is an integral part of our growth strategy and contributes to our vision „innovating for a better life“ Parkinson Wearable pump Pump On-Body drug delivery device – Patch pump together
Slide 27: Investment Approach
Investment Approach
Slide 28: Further Sharpening our Growth & Return Profile
Further Sharpening our Growth & Return Profile Basis for Investments & Capex Priorities Basis for investments into growth opportunities Record order intake Transformation: Global megatrends & development solution provider & projects system integrator Increasing capacity Increasing focus on Regional
Slide 29: Clear Roadmap to Implement Growth
Clear Roadmap to Implement Growth Growth Investments With a Particular Focus on High Value Solutions Globalization in Syringes Advanced Technologies Regional expansion and high-value products Push digitalization for connected & digital devices − Double global syringe capacity by 2028 − Further inves
Slide 30: Significant Investments Into High Value Solutions
Significant Investments Into High Value Solutions Capex Split by Type and Growth Capex Breakdown Capex Split by Type Around 55% into High Value Solutions Capex type as % of revenues Growth capex by segment Capacity Expansion ~ 25% High Value Solutions Base: ~ 55% ~ 4% Growth: High Single- Digit Cont
Slide 31: High Value Solutions Support Margin Expansion
High Value Solutions Support Margin Expansion Current Investment Opportunity and Impact on Gerresheimer‘s Profile Underlying market growth proves High margin HVS will account for around attractiveness of High Value Solutions a third of revenues by 2028 HVS as % of total Gerresheimer revenues − Dynam
Slide 32: Gerresheimer's Investment Program
Gerresheimer’s Investment Program Delivers Attractive Returns Robust and holistic capital Investments into attractive growth allocation process markets with a priority on margin KPIs: IRR, payback period and NPV strong High Value Solutions Continuous improvement of capex/ Project Capex 75: Generatin
Slide 33: Serving our Global Customers
Serving our Global Customers Global Expansion: Increase Footprint and Market Penetration North America: South America: Europe: Asia: Increasing service Capacity expansion in New plant for medical New sales structure offering: plastics and cosmetics devices steadily and expansion of New plant for pla
Slide 34: Rethink the Future: Growth Through Sustainability
Rethink the Future: Growth Through Sustainability Holistic Approach With Ambitious Targets Sets New Standards Sustainability Goals Already strong today: Community CO2 emissionen engagement 9 1 Employee Renewable 8 2 satisfaction energy GxCare GxPure Health and 7 3 Water safety GxCircular Responsible
Slide 35: Sustainability as Growth Driver
Sustainability as Growth Driver Ambitious Sustainability Goals for the Future GxPure GxCircular GxCare Engagement for climate and Engagement for resources through Engagement for people - for our environment sustainable products, responsible employees and our impact on supply chain and circular econo
Slide 36: Q3 2022 Earnings Review
Q3 2022 Earnings Review gerresheimer
Slide 37: Delivering Another Double-Digit Quarter
Delivering Another Double-Digit Quarter Strong Momentum Continues – On Track for FY 2022 Guidance Double-Digit Growth: High Value Solutions Challenging market Revenue growth Adj. EBITDA growth: +21.7% environment successfully managed +17.4% (FXN) +13.3% (FXN) Consistent execution Adj. EPS: of growth
Slide 38: Profitable Growth: Another Double-Digit Quarter
Profitable Growth: Another Double-Digit Quarter Operational View on KPIs organic growth yoy Revenues Adj. EBITDA Adj. EPS (in EUR m) (in EUR m) (in EUR) 17.4% 13.3% 10.1% 473 91 1.15 75 382 0.97 447 85 75 0.99 1.09 381 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Reported Organic (adjusted for ex
Slide 39: Consistently Proving Strong Pricing Power
Consistently Proving Strong Pricing Power Q3 2022 Revenue Growth Reconciliation Focus on Q3 2022: Focus 9M 2022: ~17% 16-17% ~1% ~2% ~7% ~6% ~9% ~9% Q3 2022 Contractual Sustainable Q3 2022 9M 2022 Contractual Sustainable 9M 2022 org. revenue pass-through price increases revenue growth org. revenue p
Slide 40: Strong Divisional Performance in Q3 2022
Strong Divisional Performance in Q3 2022 Q3 2022: Divisional Performance and Highlights Organic yoy & margin In EUR m Revenues Adj. EBITDA Double-Digit Organic Growth +11.3% 9.3% 244 — Strong growth based on volume, price and pass-through 208 59 51 — Double digit growth in revenues and earnings in P
Slide 41: Solid FCF Performance While Maintaining Investment
Solid FCF Performance While Maintaining Investment Cash Flow and Financial Debt Q3 2022 Q3 2021 Change In EUR m Comments Adjusted EBITDA 90.5 74.8 15.7 Earnings significantly increased Higher NWC due to strong topline growth as well as Change in net working capital -4.7 23.8 -28.5 safety stock Net i
Slide 42: Successful Refinancing of Promissory Loans
Successful Refinancing of Promissory Loans Structured Two-Step-Approach Now Implemented Maturity Profile Promissory loans of EUR 306m In EUR m successfully refinanced in a two-step 551 approach: Promissory loans RCF ▪ (1) Issuance of promissory loans of 150m EUR in total in November 2021 306 338 476
Slide 43: Guidance Confirmed
Guidance Confirmed Well Positioned to Deliver on FY 2022 and Mid-Term Guidance Group level guidance (FXN) focused on three key drivers of shareholder value Adj. EBITDA / Revenue1 Adj. EPS Margin High High FY 2022 > 10% single-digit single-digit growth growth High Mid-term 23-25% single-digit (margin
Slide 44: Market Environment
Market Environment gerresheimer
Slide 45: Adressing Attractive Niches
Adressing Attractive Niches CAGRs of Relevant Product Segments Drug Cosmetics Pharma Pharma Syringes Delivery Glass Glass1 Plastic Devices Estimated Market Size 2020² ~ 1.9 ~ 2.5 ~ 6.5 ~ 1.1 ~ 5.0 (in € bn) Market CAGR MID TO HIGH ‘20-’25² MID SINGLE DIGIT SINGLE DIGIT (in %) The strategic relevant
Slide 46: Diversified Product Portfolio
Diversified Product Portfolio Competitive Landscape MG Liquids Product Plastic Inhalation Diabetes Syringe and Syrups TG Pens Pharma Pumps/Devices Packaging (DPI)2 Diagnostics3 Systems (Type II & Injectables Company (Type I) III) Gerresheimer ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Schott ✓ ✓ Becton Dickinson1 ✓ ✓ Nipro1
Slide 47: Appendix
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Slide 48: Financial Calendar
Financial Calendar Capital Markets Day Publication Financial Publication 1st 2022 Year 2022 Results Quarter Results 2023 December February April 6th, 2022 23rd, 2023 6th, 2023 48 Oct-22 Gerresheimer AG - Investor Presentation
Slide 49: serresheimer
serresheimer innovating for a better life