Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Shareholder Meeting (2021)
32 slides from Sartorius's shareholder meeting presentation, 2021
Slide 1: Opening of the meeting
Opening of the meeting Joachim Kreuzburg
Slide 2: Agenda
Agenda Ordinary Shareholders' Meeting 1 ▪ Report of the Chairman of the Board and CEO ▪ Resolutions Nos. 1–14 Extraordinary Shareholders' Meeting 2 ▪ Resolutions Nos. 15–16
Slide 3: Report of the Chairman of the Board and CEO
Report of the Chairman of the Board and CEO Joachim Kreuzburg 3
Slide 4: 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 5: 2020 was both an intense and highly successful year
2020 was both an intense and highly successful year ▪ Sartorius Stedim Biotech makes a valuable contribution towards overcoming the coronavirus pandemic ▪ Very significant profitable growth achieved across the portfolio and in all geographies ▪ Three acquisitions add technologies for downstream proc
Slide 6: Sartorius Stedim Biotech is part of the solution
Sartorius Stedim Biotech is part of the solution Companies and research institutions across the globe are working on developing and manufacturing coronavirus vaccines and medications to treat Covid-19 Every day many of them receive deliveries of essential products and technologies from Sartorius Ste
Slide 7: Adapted to the disruption
Adapted to the disruption Safe working environment Changed collaboration Production largely running 24/7 Protection and testing policies at all sites Less personal, more digital interaction Working from home not always an option R&D Virtual meetings +160% ~700 Seamless adaptation and change Admin Op
Slide 8: Pandemic as a catalyst: Customer requirements will change
Pandemic as a catalyst: Customer requirements will change Some products highly complex Customers’ expectations changed Implementing new approaches Consulting and support essential Requirements on sales and services Digital interaction and training ▪ Seamless combination of direct and digital sales ▪
Slide 9: Mid-range targets for 2020 exceeded
Mid-range targets for 2020 exceeded +34.6% Sales CAGR ~+16% +18.8% EBITDA1 margin +10.8pp ~€1.91bn +13.7% 2000 40.0 39.0 1800 38.0 +4.1% 37.0 1600 +20.4% 36.0 35.0 +19.4% 34.0 1400 33.0 1200 +15.9% 32.0 +10.8% 31.0 31.7 30.0 1000 +10.3% ~€884m 29.0 29.3 28.0 28.2 800 27.0 27.5 27.3 26.0 ~€477m 26.2
Slide 10: Exceptionally dynamic growth above expectations
Exceptionally dynamic growth above expectations Order intake1 Sales revenue1 EBITDA & margin2 Earnings per share3 € in millions € in millions € in millions in € +56.7% +34.6% +43.5% +45.9% 2,381.0 4.16 1,910.1 1,543.5 1,440.6 2.85 604.7 421.5 31.7% 29.3% 2019 2020 2019 2020 2019 2020 2019 2020 1 Gro
Slide 11: Double-digit sales growth in all geographies
Double-digit sales growth in all geographies Americas EMEA Asia|Pacific Sales by region € in millions € in millions € in millions in % +34.0% +33.0% +38.3% EMEA 761.0 ~ 40% Americas 670.2 ~ 35% 575.1 511.6 478.9 €1,910.1m 353.8 Asia|Pacific ~ 25% 2019 2020 2019 2020 2019 2020 Acc. to customers‘ loca
Slide 12: Recent acquisitions make our portfolio even more relevant
Recent acquisitions make our portfolio even more relevant Acquisitions are part of our capital Downstream processing Tools for gene and cell therapies deployment strategy Significant expansion of portfolio of Market-leading products for analysis and chromatography solutions for purification of large
Slide 13: Financial indicators remain at very solid levels
Financial indicators remain at very solid levels Key financial indicators Net Debt and net debt to underlying EBITDA 1 600 1.8 Dec. 31, Dec. 31, Sartorius Stedim Biotech 2019 2020 500 1.5 400 1.2 Equity ratio 64.4 48.3 in % 300 0.9 200 0.6 Net debt 110.4 527.0 in millions of € 100 0.3 0 0.0 Net debt
Slide 14: Balance sheet of the parent company
Balance sheet of the parent company Balance sheet structure in millions of € and % as of December 31, 2020 Equity and Assets liabilities 12.5 6.6% 27.4% 51.5 150 100 175.6 136.6 50 72.6% 93.4% Current assets Total liabilities 188.1 188.1 Equity Non-current assets 14
Slide 15: Dividend proposal
Dividend proposal Dividend per share in € 0.68 0.68 0.57 ▪ Total profit distributed €62.7mn; Payout ratio2 16.3% ▪ Reminder: Dividend for 2019 adjusted due to the pandemic 0.46 0.42 0.33 0.34 0.22 1 2014 2015 2016 2017 2018 2019 2020 1 Proposal submitted to the Annual Shareholders’ Meeting; 2 Relati
Slide 16: Share price has risen substantially
Share price has risen substantially 400% Performance 2020 350% SSB +97.2% SBF 120 -6.6% 300% MSCI Europe -4.3% 250% Sartorius Stedim Biotech SBF 120 200% MSCI Europe 150% 100% 50% Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 As of March 19, 2021; share prices of the respective main stock
Slide 17: Number of employees increases to over 7,500
Number of employees increases to over 7,500 Creation of jobs Key topic: people integration Dynamic spectrum of tenure Total number of employees Over 1,900 new employees in 2020 Length of employment ~700 additional jobs 31% created on avg. per year Between 5 and 15 years 55% 7,566 6,223 Less than 5,0
Slide 18: Becoming more international and younger; hiring more women
Becoming more international and younger; hiring more women International workforce Many younger than 40 Proportion of women to further rise Employees by nationality Workforce by age group Relatively high proportion of women at management levels 2,300 1,552 ≤29 Percentages of the entire workforce 744
Slide 19: Sustainability is an integral part of our corporate purpose
Sustainability is an integral part of our corporate purpose Our mission We empower scientists and engineers to simplify Good health and well-being and accelerate progress in life science and at the focus of our bioprocessing, enabling the development of new business activities and better therapies a
Slide 20: Sustainability at Sartorius Stedim Biotech – current initiatives
Sustainability at Sartorius Stedim Biotech – current initiatives Product responsibility Climate protection Supply chain Our products increase safety and Significant improvement in emissions Already ~30% of the purchase volume externally efficiency in the manufacture of medicines analyzed2 Developmen
Slide 21: Documentation of our sustainability efforts in the Sustainability Report
Documentation of our sustainability efforts in the Sustainability Report ▪ First-time publication of a separate sustainability report ▪ Applies the GRI Guidelines (Global Reporting Initiative) ▪ Will be published annually in addition to our annual report Download from: http://www.sartorius.com/corpo
Slide 22: Outlook for 2021 increased, uncertainties remain higher than usual
Outlook for 2021 increased, uncertainties remain higher than usual Sales growth1 Underlying EBITDA margin1 Sartorius Stedim Biotech ~38% ~33% - thereof from acquisitions | Corona demand ~5.5pp | ~18pp ▪ CAPEX ratio ~14% (FY 2020: 8.3%) ▪ Net debt to underlying EBITDA: ~0.6 (2020: 0.8) 1 In constant
Slide 23: Broad coverage of the biopharma process chain
Broad coverage of the biopharma process chain Culture media Seed Scale-up Fermentation | preparation cultivation Cell cultivation UPSTREAM DOWNSTREAM Final Cryo- Sterile Concen- Virus clearance Chroma- Clarification & filling preservation filtration tration & filtration tography centrifugation 23
Slide 24: Strong macro trends in our target markets
Strong macro trends in our target markets Growing and aging population Expanding biosimilars market USA leading; China growing strongly 9 billion people by 2050 ~30% CAGR, 2019-20251 Biopharma market by region World population in 2050 ~€250bn ~€365bn ~ 9bn | > 2bn 2025 167 Over 60 > €50bn years old
Slide 25: Very high innovation dynamics in the sector
Very high innovation dynamics in the sector Established biopharmaceuticals Next generation Proteins, peptides Virus-based therapies, advanced therapies mAbs Plasma Vaccines Vectors Vaccines mRNA, Gene and cell CRISPR/Cas9 pDNA therapies CAR-T Industrial products for Individually manufactured product
Slide 26: Increasing digitalization across the value chain
Increasing digitalization across the value chain Bioprocess data Artificial intelligence Production of active Interdisciplinary topic pharmaceutical ingredients Powerful solutions for digitalization and Data analytics and artificial intelligence (AI) automation for life science applications ▪ Leadin
Slide 27: Extensive program for expansion of production capacities
Extensive program for expansion of production capacities Substantial investments planned China CAPEX in millions of €; ratio in % Beijing USA 70 400 Marlborough 350 60 300 South Korea Songdo 50 Germany 250 177 40 159 200 Göttingen 30 137 136 14.6 ~14 Guxhagen 150 12.6 9.4 Puerto Rico 8.3 20 100 10 5
Slide 28: High investments in Europe
High investments in Europe Germany | Göttingen Germany | Guxhagen Membrane manufacturing capacities Capacities for bioprocessing equipment; ▪ New building for 10 casting machines available by end of 2021 ▪ First machines available by end of 2022 Customer Interaction Center; planned for 2022/23 Resea
Slide 29: Significant expansion of key sites in Asia
Significant expansion of key sites in Asia China | Beijing South Korea | Songdo Additional manufacturing facilities New site ▪ ~3,000m2 cleanroom for single-use ▪ ~25,000m2 for cell culture media, products assembly, labs and application center ▪ Completion scheduled for H2 2021 ▪ Close to Samsung Bi
Slide 30: Ramp-up and extension of manufacturing in North America
Ramp-up and extension of manufacturing in North America Puerto Rico | Yauco USA | Marlborough, Massachusetts Set up cell culture media manufacturing New Customer Interaction Center ▪ Production scheduled to start in 2022 ▪ New site of ~4,000m2 ▪ Completed by end of 2020 Additional cleanrooms ▪ Fluid
Slide 31: 2025 ambition raised based on higher baseline and organic growth
2025 ambition raised based on higher baseline and organic growth Growth strategy Sartorius Stedim Biotech Continued strong organic growth Sales €4bn targeted; additional acquisitions with revenue previously ~€2.8bn complementary portfolios Above-average growth in the EBITDA ~33% margin Previously ~3
Slide 32: Thank you very much for joining us
Thank you very much for joining us
Sartorius Stedim Biotech — Shareholder Meeting (2021) on 6ix