Sartorius AG · XETR:SRT
Sartorius — German Healthcare Conference 2011
42 slides from Sartorius's conference presentation, Sep 13, 2011
Slide 1: German Healthcare Conference
German Healthcare Conference Sartorius Corporate Presentation Jörg Pfirrmann, CFO September 13, 2011 | Zurich Page 1
Slide 2: Disclaimer
Disclaimer This presentation contains statements concerning the Sartorius Groups’ future performance. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking state- ments are realistic, we cannot guarantee that they will actually materialize. Thi
Slide 3: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights Page 3
Slide 4: Organization and Shareholding Structure
Organization and Shareholding Structure 7 9 Adm. by executor Family owned Ord. 30 Prf. Bio-Rad Laboratories Inc. 50 in % in % Free Float 4 Treasury shares 9 91 Ord. share: 9,36 mn., Prf. share: 9,36 mn., outstanding: ~8,53 mn. outstanding: ~8,52 mn. Sartorius AG 75% 100 % Sartorius Stedim Biotech S.
Slide 5: Sartorius at a Glance
Sartorius at a Glance Mechatronics ~34 % 2010 Sales ~€ 659mn Biotechnology ~66 % ￭ A world-leading supplier of laboratory and process technologies with strong worldwide presence ￭ Key Sartorius customers: biotech, pharma, chemical, food industries and academia ￭ Employees: approximately 4,500 person
Slide 6: Leading Worldwide Market Positions
Leading Worldwide Market Positions Filtration Fluid Management Fermentation Lab Weighing among TOP 3 #1 #1 #2 Page 6
Slide 7: Strong Worldwide Presence
Strong Worldwide Presence Europe North America Asia | Pacific Nieuwegein, Netherlands St. Petersburg, Russia Beijing, China Aachen, Germany Seoul, South Korea Vilvoorde, Belgium Taastrup, Denmark Tokyo, Japan Epsom, UK Stonehouse, UK Hong Kong, China Dublin, Ireland Hamburg, Germany Mississaugna, On
Slide 8: Proven Track Record with Alliances and Acquisitions
Proven Track Record with Alliances and Acquisitions Alliances & acquisitions support the strategy of profitable growth Significant extension of technology portfolio and Raumedic product offerings Südpack Medica Substantial extension of worldwide footprint Metroglas NIR Online Wave Biotech Schmidt +
Slide 9: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights Page 9
Slide 10: Biotechnology Division: A Total Solution Provider for BioPharma
Biotechnology Division: A Total Solution Provider for BioPharma ￭ Supports the biopharma industry in producing Equipment ~25 % drugs safely, timely and economically ￭ Provides the widest product and service portfolio along the biopharma process chain 2010 Sales ~€ 433mn ￭ Holds global market leading
Slide 11: The Widest Product Portfolio Along Biopharma's Process Chain
The Widest Product Portfolio Along Biopharma´s Process Chain Media Preparation Fermentation Value Added Services Buffer Preparation Cell Harvesting Purification Page 11
Slide 12: Strong Long-Term Trends Drive Further Growth
Strong Long-Term Trends Drive Further Growth Global Trends Pharma Market Sector Trends Aging population in western CAGR 2011 – 20151) 3 % - 6 % Patent expiries countries Healthcare reforms Increasing access to health Decreasing R&D efficiency care in developing economies Biopharma Market
Slide 13: Single-Use Technologies Will Become the Future Industry Standard
Single-Use Technologies Will Become the Future Industry Standard Significant reduction Additional Market Penetration in production costs advantages of Single-use Products CAPEX reduction Enhanced flexibility Own estimates Lower cleaning costs | and faster time-to-market validation Reduced ri
Slide 14: Regulated Market Environment
Regulated Market Environment ￭ Highly regulated market environment (FDA, EMEA, GMP requirements) with significant entry barriers ￭ Extensive customer validation procedures ￭ Proprietary technologies and specialized application expertise are prerequisites for suppliers ￭ Global supply structure manda
Slide 15: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights Page 15
Slide 16: Mechatronics Division: Strong Focus on Lab Business
Mechatronics Division: Strong Focus on Lab Business ￭ Provides weighing and analytical instruments for Industry ~40 % laboratories ￭ Produces weighing, monitoring and control equipment for industrial process applications 2010 Sales ~€ 227mn ￭ Serves the pharma, biotech, food and chemical industries
Slide 17: Leading Market Position of Lab Instruments Business
Leading Market Position of Lab Instruments Business ￭ Global No. 2 in Lab Weighing ￭ Complete product pyramid from premium to standard segment ￭ Top technology and high quality products ￭ Global sales and service organization with synergy potential to SSB ￭ Broad customer base with focus on pharma |
Slide 18: Global Full-Liner of Industrial Weighing Equipment
Global Full-Liner of Industrial Weighing Equipment ￭ Broad product portfolio from platform scales to checkweigher and tank & hopper solutions ￭ High product quality and healthy gross margins ￭ Relatively low market share in most geographies ￭ Strategic options under consideration; including divestme
Slide 19: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights Page 19
Slide 20: Sartorius Group's Performance in H1 2011
Sartorius Group’s Performance in H1 2011 In millions of € unless otherwise specified H1 2011 H1 2010 Order Intake | Growth 382.3 | + 13.6 % 336.4 Sales Revenue | Growth 353.7 | + 12.2 % 315.2 Underlying1) EBITA | Margin 51.1 | 14.4 % 36.3 | 11.5 % Underlying1)2) EPS in € 1.41 0.93 Operating Cash Flo
Slide 21: Considerable Increase in Order Intake
Considerable Increase in Order Intake Order Intake Biotechnology in millions of € Currency-adjusted Growth: ￭ Strong double-digit growth with single-use Group + 14.6 % products, especially filters and bags + 13.6 % Biotechnology + 17.4 % Mechatronics + 9.2 % 400 382.3 Mechatronics 336.4 + 16.2 % ￭ H
Slide 22: Strong Sales Revenue Growth
Strong Sales Revenue Growth Sales Revenue Biotechnology in millions of € Currency-adjusted Growth: ￭ Double-digit growth with single-use products Group + 13.1 % Biotechnology + 10.8 % + 12.2 % Mechatronics + 17.6 % Mechatronics 400 353.7 ￭ Strong growth in laboratory business as 315.2 well as in ind
Slide 23: Sales Revenue by Region – Biotechnology
Sales Revenue by Region – Biotechnology North America Europe Asia|Pacific Other Markets Sales1) in millions of. € Sales1) in millions of € Sales1) in millions of € Sales1) in millions of € 123.3 54.0 43.6 8.5 + 2.7 % + 8.8 % + 34.1 % + 2.2 % Currency adjusted growth H1 2011 ￭ Single-use filtration p
Slide 24: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics North America Europe Asia|Pacific Other Markets Sales1) in millions of. € Sales1) in millions of € Sales1) in millions of € Sales1) in millions of € 67.2 36.5 15.4 5.2 + 3.9 % + 18.2 % + 22.8 % + 24.9 % Currency adjusted growth H1 2011 ￭ Asia | Pacific also the
Slide 25: Overproportionate Increase in Profitability
Overproportionate Increase in Profitability EBITA Group Underlying1), in millions of € ￭ Underlying1) EBITA margin: 14.4 % (prev. year: 11.5 %) + 40.7 % 60 Biotechnology 51.1 50 + 22.8 % ￭ Underlying1) EBITA margin: 16.8 % 40 38.6 (prev. year: 15.0 %) 36.3 31.5 ￭ Main profit driver: economies of sca
Slide 26: Substantial Increase of Profitability
Substantial Increase of Profitability EBITA-Margin in % 2011 exp. 20 16,2 17 – 18 % Biotechnology Division 17,5 15,0 15 1514,5 – 15,5 % Sartorius Group 12,6 13,2 13,0 11,1 11,4 10,9 10,1 10 9,7 8,9 8,6 9,3 10 - 11 % Mechatronics Division 10,5 8,0 9,0 7,5 8,3 7,0 6,8 6,9 5 4,0 3,8 3,9 0,4 0 1) 2) 1)
Slide 27: Strong Gain Also in EBITDA
Strong Gain Also in EBITDA EBITDA Group Underlying1), in millions of € ￭ Underlying1) EBITDA margin: 18.0 % (prev. year: 15.4 %) + 31.0 % 80 Biotechnology 70 63.5 + 19.0 % ￭ Underlying1) EBITDA margin: 20.4 % 60 (prev. year: 18.8 %) 50 48.5 46.9 39.4 + 82.9 % 40 Mechatronics 30 ￭ Underlying1) EBITDA
Slide 28: Significant Increase in Earnings per Share
Significant Increase in Earnings per Share Earnings per Share Net Profit Underlying1), in € Underlying1), in millions of € ￭ Unadjusted consolidated net profit after minority interest: €18.7 mn (€12.1 mn) 2.0 40 + 50.6 % + 50.6 % 1.5 1.41 30 24.0 1.0 0.93 20 15.9 0.5 10 0 0 H1 2010 H1 2011 1) Exclud
Slide 29: All Key Financial Indicators at a Very Comfortable Level
All Key Financial Indicators at a Very Comfortable Level June 30, Dec. 31, Net Debt to EBITDA1) 2011 2010 300 Equity Ratio in % 39.9 40.5 3.0 Net Debt in € mn 217.1 196.9 200 2.0 Gearing 0.6 0.6 Net Debt to 100 1.0 1.7 1.8 Underlying1) EBITDA Interest Coverage1) 14.7 15.4 0 0.0 Q1-Q4 Q1-Q4 Q1-Q4 Q1-
Slide 30: FY 2011 Guidance Raised
FY 2011 Guidance Raised FY 2010 Former Guidance New Guidance FY 2010 Former Guidance New Guidance Sales Revenue H1 2010 Sales Growth1) Sales H1 Growth1) 2011 EBITA Margin2) EBITA Margin1)2) EBITA Margin1)2) Sartorius Group €659.3 mn 6% - 8% 8 % - 10 % 13.0 % Around 14 % 14.5 % – 15.5 % Biotechnology
Slide 31: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights Page 31
Slide 32: Further Strategic Development of Bioprocess
Further Strategic Development of Bioprocess Biotechnology Division Mechatronics Division Bioprocess ~85 % Lab Instruments ~60 % Sales 2010 Sales 2010 €432.6 mn €226.7 mn Biolab ~15 % Industrial Weighing ~40 % ￭ Successful implementation of the total solution provider strategy over the past years ￭ P
Slide 33: Further Strategic Development of Lab Business
Further Strategic Development of Lab Business Biotechnology Division Mechatronics Division Bioprocess ~85 % Lab Instruments ~60 % Sales 2010 Sales 2010 €432.6 mn €226.7 mn Biolab ~15 % Industrial Weighing ~40 % ￭ High brand awareness and excellent reputation in laboratories worldwide ￭ Further devel
Slide 34: Repositioning of Industrial Weighing
Repositioning of Industrial Weighing Biotechnology Division Mechatronics Division Bioprocess ~85 % Lab Instruments ~60 % Sales 2010 Sales 2010 €432.6 mn €226.7 mn Biolab ~15 % Industrial Weighing ~40 % ￭ Limited sales synergies between Industrial Weighing and Bioprocess as well as Lab ￭ Relatively l
Slide 35: Investment projects for Future Growth
Investment projects for Future Growth Göttingen, GER Yauco, PR Guxhagen, GER Capex Ratio 8 ~7,0 6 5,5 4,0 3,7 4 2 0 2008 2009 2010 2011e Membrane capacity Expansion and New site for equipment Investments of around expansion at optimization of the business in Germany €50 million planned for h
Slide 36: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights Page 36
Slide 37: Investment Highlights
Investment Highlights Clear focus on fast-growing business, especially the highly 1 attractive biopharma market 2 Leading market positions and strong brand 3 Strong base in all regions with high growth potential 4 Proven track record with alliances and acquisitions 5 Attractive incremental margins a
Slide 38: Thank you very much for your attention
Thank you very much for your attention Page 38
Slide 39: Agenda
Agenda 1 Company Profile and Strategy 2 Biotechnology Division: Markets and Trends 3 Mechatronics Division: Markets and Trends 4 Financial Performance in H1 2011 and Guidance 2011 5 Key Projects 2011 6 Investment Highlights 7 Appendix Page 39
Slide 40: Financial Calendar
Financial Calendar ￭ October 2011 Publication of 9-month figures for 2011 ￭ February 2012* Publication of preliminary full-year figures for 2011 ￭ April 19* Annual Shareholders’ Meeting * Tentative date scheduled Page 40
Slide 41: Sartorius Group Executive Committee
Sartorius Group Executive Committee Oscar-W. Reif Oscar-Werner Reif Reinhard Vogt* Jörg Pfirrmann* Joachim Kreuzburg* Dominique Baly Volker Niebel Chairman Research and Marketing, Sales, Finance, Information Corporate Strategy, Marketing, Sales, Procurement, Development Services, Business Technologi
Slide 42: Contacts
Contacts Petra Kirchhoff Henriette Meyer Corporate Communications & Investor Relations Investor Relations Phone: +49.551.308.3232 Phone: +49.551.308.1686 E-mail: henriette.meyer@sartorius.com E-mail: petra.kirchhoff@sartorius.com Sartorius Corporate Administration GmbH Weender Landstrasse 94-108 370