Sartorius AG · XETR:SRT
Sartorius — Investor Presentation (April 2024)
55 slides from Sartorius's investor presentation, April 2024
Slide 1: Simplifying Progress – Investors Presentation
Simplifying Progress Investors Presentation April 2024
Slide 2: Agenda
Sartorius Group Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division Q1 2024 Results | FY 2024 Guidance 2
Slide 3: Partner of Life Science research and the biopharmaceutical industry
Sartorius Group Partner of Life Science research and the biopharmaceutical industry Our mission We empower scientists and engineers to simplify and accelerate progress in Good health and well-being at life science and bioprocessing, enabling the focus of Sartorius‘ the development of new and better
Slide 4: Sartorius at a glance
Sartorius Group Sartorius at a glance ~€3.40bn Two divisions focused on attractive biopharma and life science Sales revenue 2023 markets ~15% Sales CAGR1 2013-2023 28.3% EBITDA margin2 2023 Sales 2023 79% 21% 60+ Bioprocess Solutions Division ~€3.40bn Lab Products & Services Division Locations world
Slide 5: Products and solutions span from lab to production
Sartorius Group Products and solutions span from lab to production Bioprocess Solutions Division Molecule Cell line and Upstream & development process development downstream production Quality | Testing | Validation Lab Products & Services Division 5
Slide 6: Attractive market environment offers strong growth opportunities
Sartorius Group Attractive market environment offers strong growth opportunities Growing and aging population Biologics are gaining importance2 >9.5 billion people by 20501 World population over age 65 in 2050 Sales share of biologics in 2028 ~1.6bn ~44% ~10% CAGR biopharma market 2023 – 2028 World
Slide 7: Strong track record of profitable growth
Sartorius Group Strong track record of profitable growth Sales CAGR 2019-23 ~17% 4100 59,5 57,5 3900 ~€3.40bn 55,5 3700 53,5 3500 51,5 3300 49,5 3100 2900 Sales CAGR 2013-19 47,5 45,5 2700 2500 ~14% 43,5 41,5 2300 39,5 2100 1900 ~€1.83bn 34.1 33.8 37,5 35,5 1700 1500 29.6 28.3 33,5 27.1 31,5 1300 25
Slide 8: Fueling organic growth; improved resilience by robust regional set-ups
Sartorius Group Fueling organic growth; improved resilience by robust regional set-ups Capex Capex composition in millions of €; ratio in % Global Resilience Redundant Capacity 560 Customer proximity Operational Excellence 16,5 Major projects ~X% ~13 Regular expansion ~3% Capitalized R&D ~2% Mainten
Slide 9: Expansion projects proceeding according to plan
Sartorius Group Expansion projects proceeding according to plan Ann Arbor, Michigan, USA Göttingen, Germany Songdo, South Kora Bioanalytics products and services Product development, membrane production, filtration Cell culture media, bags, filtration, laboratories, training Yauco, Puerto Rico, USA
Slide 10: M&A strategy – adding innovation, enhancing focus
Sartorius Group M&A strategy – adding innovation, enhancing focus Essen Life Science assets BioScience from Danaher ALS 2 2017 2019 2020 2021 2022 2023 Umetrics Biological BIA WaterSep CellGenix Xell Chrom. assets Albumedix Polyplus Industries Separations from Novasep Portfolio: Complementary produc
Slide 11: Polyplus acquisition a milestone for creating a technology platform for CGT
Sartorius Group Polyplus acquisition a milestone for creating a technology platform for applications in the CGT market Biological Albumedix Polyplus Up & downstream solutions CellGenix Xell Industries Cell culture Growth factors Media and Recombinant Transfection Cell line development, plasmid media
Slide 12: Cell and gene therapies an increasingly relevant market segment
Sartorius Group Cell and gene therapies (CGT) an increasingly relevant market segment ~30% of biopharma pipeline is focusing on CGT1 Number of commercial processes is expanding rapidly ~60 approved CGT globally1 ~70% ~30% Other CGT biologics 11 CGT approvals in 2022 and 2023 alone ▪ >6,000 CGT candi
Slide 13: Broad set of ambitious sustainability targets
Sartorius Group Broad set of ambitious sustainability targets 2030 mid-term targets 2045 long-term target ~10% Zero 100% Net-zero av. reduction of CO2eq emission intensity p.a. (Scopes 1-3) avoidable1 emissions in Scopes 1 and 2 electricity from renewable sources emissions Decarbonization of the ent
Slide 14: Midterm outlook to 2028: Expect to continue outgrowing the market
Sartorius Group Midterm outlook to 2028: Expect to continue outgrowing the market BPS LPS Sartorius Group Sales revenue CAGR Low to mid- Mid to high Low-teens % to 2028 teens % single-digit % Underlying EBITDA margin ~36% ~28% ~34% in 2028 ▪ ~1/5 of sales revenue growth to come from acquisitions in
Slide 15: Agenda
Sartorius Group Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division Q1 2024 Results | FY 2024 Guidance 15
Slide 16: Bioprocess Solutions: solution provider for biomanufacturing
Sartorius Group Bioprocess Solutions (BPS): solution provider for biomanufacturing ~€2.68bn Sales revenue 2023 29.2% EBITDA margin1 2023 Filtration Purification ~75% Recurring revenues ~90% Sales share biopharma Fermentation Fluid management 1 Excluding extraordinary items 16
Slide 17: Track record of dynamic growth; balanced regional revenue profile
Sartorius Group Track record of dynamic growth; balanced regional revenue profile BPS sales revenue; EBITDA margin1 in % Pillars of growth CAGRs 2022–20271 CAGR2 18% Pharma market ~3-6% ~€2.68bn Biopharma market ~10% Biosimilars ~15% ~€1.14bn CGT ~20% 29.2 28.6 Single-use ~15% 2018 2019 2020 2021 20
Slide 18: Generating revenue throughout the lifecycle of a biopharma drug
Sartorius Group Generating revenue throughout the lifecycle of a biopharma drug Preclinical Clinical Commercial Stage (1 year) (4-7 years) (15+ years) Scale Process development Proof of concept - pilot Large ▪ Wide product range of equipment and consumables for all stages (from pre-commercial to lar
Slide 19: Covering most steps of the biopharmaceutical manufacturing process
Sartorius Group Covering most steps of the biopharmaceutical manufacturing process ▪ Differentiated by the range and completeness of the Culture media Seed Scale-up Production portfolio preparation cultivation ▪ Excellent positioning in key single-use technologies UPSTREAM ▪ Internationally recogniz
Slide 20: Integrated services and technologies for all types of biopharmaceuticals
Sartorius Group Integrated services and technologies for all types of biopharmaceuticals ▪ ~ 95% of BPS revenue generated with mAbs Regenerative bio/pharma customers medicine ▪ Solutions for the production of all biotechnologically derived drugs and cell Vaccines derivatives ▪ Antibodies are most re
Slide 21: Competitive product offering
Sartorius Group Competitive product offering Sartorius Merck | Danaher Thermo Top 3 Players Millipore Fisher All player with approx. Filtration equal market shares 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Fermentation 2. Thermo Fisher 3. Danaher | Cytiva 1. Da
Slide 22: Biosimilars: Strong growth, big opportunities
Sartorius Group Biosimilars: Strong growth, big opportunities ▪ Major blockbuster biologics are going off-patent ▪ Time-to-market is key as only the first providers are most likely profitable ▪ Several approvals in Asia and Europe; U.S. at the beginning ▪ For now, relatively small market but with st
Slide 23: Pioneer and leader in the growing single-use technology market
Sartorius Group Pioneer and leader in the growing single-use technology market Single-use market penetration expected to increase from ~35% to ~75% Single-use products offer advantages over conventional stainless-steel devices ▪ Capex|Opex reduction over entire lifecycle ▪ Reduced risk of cross-cont
Slide 24: Single-use allows manufacturers to mitigate investment risks
Sartorius Group Single-use allows manufacturers to mitigate investment risks ▪ Construction of stainless-steel based facilities takes longer and is more complex compared to single-use ▪ Therefore, investment in stainless-steel facilities has to start in early clinical phase II ▪ The construction of
Slide 25: Analytical technologies to improve process economics and safety
Sartorius Group Analytical technologies to improve process economics and safety ▪ Bioprocess sensors, analyzers and software ▪ Collect, monitor and control quality-critical parameters ▪ Analyze data to obtain a better process understanding ▪ Use knowledge for process development, optimization and au
Slide 26: High innovation dynamics in Biopharma
Sartorius Group High innovation dynamics in Biopharma Development of new Increased efficiency New tools and Future drug drugs and vaccines possible in the methods required manufacturing is must be accelerated, production of 'classic' e.g. for novel cell and more automated, e.g. through more biopharm
Slide 27: Limited dependence on individual accounts
Sartorius Group Limited dependence on individual accounts Long-term business relationships with leading Limited dependence on individual accounts global (bio-) pharma companies Sales to Top 50 customers in 2023, € in millions 800 80,00 ~52 ~57 600 ~47 60,00 ~39 400 ~26 40,00 200 20,00 0 0,00 Top 10
Slide 28: Agenda
Sartorius Group Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division Q1 2024 Results | FY 2024 Guidance 28
Slide 29: Lab Products & Services: premium supplier for Life Science research and QC labs
Sartorius Group Lab Products & Services (LPS): premium supplier for Life Science research and quality control labs ~€720mn Portfolio includes lab instruments, consumables, software and services Sales revenue 2023 25.1% EBITDA margin2 2023 Bioanalytics Lab instruments 45% Recurring revenue ~60% Sales
Slide 30: Continuous transition to a higher growth and profitability profile
Sartorius Group Continuous transition to a higher growth and profitability profile LPS sales revenue; EBITDA margin1 in % Growth drivers CAGR2 11% Sales & Marketing pivot to 900,0 49 attractive segments and regions 800,0 ~€718m 44 700,0 Attractive portfolio mix coupled 39 with M&A 600,0 34 500,0 ~€4
Slide 31: Focus on attractive Life Science market; regional profile increasingly balanced
Sartorius Group Focus on attractive Life Science market; regional profile increasingly balanced Sales revenue share by segment, 2023 vs. 2018 Sales revenue share by geography, 2023 vs. 2018 2023 2023 Life Science Applied research research Americas EMEA ~60% (~43%) ~40% (~57%) ~32% (~26%) ~38% (~46%)
Slide 32: Strong market position in essential laboratory product categories
Sartorius Group Strong market position in essential laboratory product categories ▪ Average global market share of >10% ▪ High gross margins offer potential for economies of scale ▪ Growth potential especially in the U.S. and Asia ▪ Market growth related to R&D spending in the individual end markets
Slide 33: Bioanalytical tools to address pain points of our customers
Sartorius Group Bioanalytical tools to address pain points of our customers Drug discovery Preclinical Clinical trials Drug approval Our approach testing ▪ Facilitate digitalization 4-5 years 1 year 4-7 years 1-2 years and automatization ▪ Decrease likelihood of failure ▪ Reduce time and costs in mo
Slide 34: Overview of bioanalytical portfolio
Sartorius Group Overview of bioanalytical portfolio Solutions for cell analysis Competitive environment ▪ IncuCyte: Real-time imaging and analysis of living cells ▪ Beckman Coulter ▪ Becton Dickinson ▪ Bio-Rad ▪ Cytiva ▪ iQue Screener: Rapid, high content analysis of cells, beads and secreted protei
Slide 35: Solutions complement each other and have synergies with BPS products
Sartorius Group Solutions complement each other, optimize successive workflows and have synergies with BPS products Application example: Molecule development Application example: Cell line development iQueScreener Octet Screening of antibody libraries Identify high-producing clones for target-reacti
Slide 36: Total addressable market increased since 2018
Sartorius Group Total addressable market increased since 2018 Total addressable market of LPS ▪ Market opportunity increased through expanded product offering (e.g., addition of 2023 Octet and CellSelector platforms, specialty media, GMP cytokines and OEM ~€7.9bn diagnostic membranes) ▪ Higher expos
Slide 37: Agenda
Sartorius Group Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division Q1 2024 Results | FY 2024 Guidance 37
Slide 38: Expected soft top line development vs. strong PY; robust profitability
Sartorius Group Expected soft top line development vs. strong PY; robust profitability Sartorius Group Q1 2023 Q1 2024 in % in % cc1 in millions of € unless otherwise specified Sales revenue 903 820 -9.3 -7.6 Order intake 765 826 8.0 9.8 Underlying EBITDA2 272 234 -13.8 Underlying EBITDA2 margin in
Slide 39: Demand normalization in all regions except China
Sartorius Group Demand normalization in all regions except China Americas EMEA Asia | Pacific Sales by region Sales | € in millions Sales | € in millions Sales | € in millions in % -9.3% -4.4% -10.4% EMEA Americas 359 341 ~42% ~35% 322 288 222 190 €820m Asia | Pacific Q1 2023 Q1 2024 Q1 2023 Q1 2024
Slide 40: Bioprocess Solutions: Recurring business continues to recover while equipment remains soft
Sartorius Group Bioprocess Solutions: Recurring business continues to recover while equipment remains soft Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions 15.0% cc -5.3% cc 13.4% -6.9% -11.1% 653 695 647 576 217 193 50 200 45 150 40 100 35 30 50 31,2 2
Slide 41: Lab Products & Services: Below strong Q1 2023 but recovery ongoing
Sartorius Group Lab Products & Services: Below strong Q1 2023 but recovery ongoing except for China; investment activity widely soft Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions -6.2% cc -15.3% cc -8.2% -17.1% -24.4% 208 189 173 173 55 41 26,3 24,0
Slide 42: Operating cash flow influenced by phasing effects
Sartorius Group Operating cash flow influenced by phasing effects Sartorius Group Q1 2023 Q1 2024 in % in millions of € unless otherwise specified Underlying EBITDA 272 234 -13.8 ▪ Extraordinary items driven by reorganization and Extraordinary items -19 -16 +14.7 integration measures and corporate p
Slide 43: Balance sheet reflects recent capital measures; focus on cash generation
Sartorius Group Balance sheet reflects recent capital measures; focus on strong cash generation to drive further deleveraging Key financial indicators Net debt and net debt to underlying EBITDA Sartorius Group Dec. 31, Mar. 31, in millions of € unless otherwise specified 2023 2024 6,0 5.000 5,0 Non-
Slide 44: Guidance 2024 confirmed: Profitable growth with moderate H1 2024
Sartorius Group Guidance 2024 confirmed: Profitable growth with moderate H1 2024 Guidance 20241 Sales revenue growth Underlying EBITDA margin Sartorius Group Mid- to high single-digit percentage range slightly above 30% thereof from acquisitions ~1.5 pp Bioprocess Solutions Mid- to high single-digit
Slide 45: Appendix
Sartorius Group Appendix 45
Slide 46: Corporate responsibility & further financial information
Sartorius Group Corporate responsibility & further financial information To Sartorius, sustainability means operating Please click below for further financial information: responsibly over the long term – with respect to business partners, employees and society as well as to Earnings Release Q1 2024
Slide 47: Reasons to invest
Sartorius Group Reasons to invest 2 1 3 Biopharma market Leading market positions; Global presence fueled by long-term mission-critical portfolio; growth drivers high brand awareness High entry barriers; low price- High share of recurring Ambitious sensitivity and consolidated revenues ESG agenda co
Slide 48: Sartorius legal & operational structure
Sartorius Group Sartorius legal & operational structure Sartorius Group legal setup Sartorius AG (~69.0m shares) Ordinary shares (~34.2m shares) Preference shares (~34.8m shares) Stock market listed in Germany1 ~55% Administered by executor ~72% Free float ~38% Bio-Rad Laboratories ~28% Bio-Rad Labo
Slide 49: Share price performance
Sartorius Group Share price performance 500% 400% 300% 200% 100% 0% Jul. 20 Jul. 21 Jul. 22 Jul. 23 Apr. 20 Okt. 20 Apr. 21 Okt. 21 Apr. 22 Okt. 22 Apr. 23 Okt. 23 Apr. 24 Jan. 23 Jan. 20 Jan. 21 Jan. 22 Jan. 24 Sartorius preference Vorzugsaktie share Sartorius ordinary share Stammaktie Sartorius St
Slide 50: A sampling of the Bioprocess Solutions' product portfolio
Sartorius Group A sampling of the Bioprocess Solutions’ product portfolio Filtration Purification Fermentation Fluid management 50
Slide 51: A sampling of the Lab Products and Services' product portfolio
Sartorius Group A sampling of the Lab Products and Services’ product portfolio Lab balances | Lab water systems Bioanalytics Lab filtration | Microb. analysis Pipettes 51
Slide 52: Executive Board of Sartorius AG
Sartorius Group Executive Board of Sartorius AG Joachim Kreuzburg, CEO René Fáber Florian Funck, CFO Alexandra Gatzemeyer Joined Sartorius in 1999 Joined Sartorius in 2002 Joined Sartorius in 2024 Joined Sartorius in 2005 Member of the Board since 2002 Member of the Board since 2019 Member of the Bo
Slide 53: Contacts and Financial calendar
Sartorius Group Contacts and Financial calendar ▪ May 16, 2024 Capital Markets Day | Göttingen Petra Kirchhoff Head of Corporate Communications & IR ▪ May 30, 2024 Kepler Cheuvreux ESG Conference | Virtual +49.551.308.1686 petra.kirchhoff@sartorius.com ▪ June 19, 2024 Citi's European Healthcare Conf
Slide 54: Disclaimer
Sartorius Group Disclaimer This presentation contains statements concerning the future performance of the Sartorius 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 actual
Slide 55: Scan or click here to visit our IR website
Scan or click here to visit our IR website.