Stevanato Group S.p.a. · NYSE:STVN
Stevanato — Investor Day (September 2023)
145 slides from Stevanato's investor day presentation, Sep 28, 2023
Slide 1: Capital Markets Day
f, 4 ‘SG, Stevanato Group (NYSE: STVN) Capital Markets Day Wednesday, September 27, 2023 Exhibit 99.1
Slide 2: Welcome
Lisa Miles x Investor Relations, Senior Vice President Welcome Capital Markets Day – September 27, 2023
Slide 3: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains certain forward-looking statements w ithin the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Stevanato Group S.p.A. (“we”, “our”, “us”, “Stevanato Group” or the “Company”).
Slide 4: Today's Agenda
Today's Agenda 11:00 – 11:05 Welcome Lisa Miles, SVP Investor Relations 11:05 – 11:15 Paving the Way for the Future Franco Stevanato, Executive Chairman 11:15 – 11:35 Business and Corporate Overview Franco Moro, Chief Executive Officer Mauro Stocchi, Chief Business Officer 11:35 – 12:10 Industry and
Slide 5: Paving the Way for the Future
Franco Stevanato x Executive Chairman Paving the Way for the Future Capital Markets Day – September 27, 2023
Slide 6: Track Record of Excellence Sets the Stage for Sustainable Growth
Track Record of Excellence Sets the Stage for Sustainable Growth • Strong business fundamentals with 70-year history Double-digit of delivering against objectives revenue growth • Unique value proposition with differentiated Increasing mix of product set provides competitive advantage High Value Sol
Slide 7: Established Leadership Position in Core Markets
Established Leadership Position in Core Markets Leading Provider of Mission-Critical Containment, Delivery and Diagnostic Solutions for the Pharmaceutical, Biotechnology and Life Sciences Industries Market Leader Biopharmaceutical & Diagnostics Engineering #1 #1 #2 #1 #2 Ready-to-Use Vials Pen Cartr
Slide 8: Seven Decades of Delivering Innovation and Value
Seven Decades of Delivering Innovation and Value Glass forming Pharma specialization Integrated systems and technologies across the value chain 1971 1993-2005 2007 2008 2008-2012 2016 2017-2019 2020 2021 2022 1949 SG EZ-fill® SG Alba® STVN IPO Stevanato patented launch founded - New plant: Brazil Ne
Slide 9: Global Footprint with Investments Underway to Fuel Growth
Global Footprint with Investments Underway to Fuel Growth Offering Supply Security with a Single Quality Standard DENMARK - Brabrand U.S. - Silkeborg - Boston (MA) GERMANY - Ontario (CA) SLOVAKIA - Bad Oeynhausen - Fishers (IN) JAPAN - Bratislava - Newtown (PA) - Nagoya ITALY MEXICO CHINA - Piombino
Slide 10: Strong Secular Tailwinds Driving Customer Demand
Strong Secular Tailwinds Driving Customer Demand Expanded Healthcare Increasing Populations & Growth in Biologics & Access in Developing Aging Demographics Pharmaceutical Innovation Countries Outsourcing Non-Core Self-Administration Expansion of Vaccination Capabilities of Medicines Programs (BioPha
Slide 11: …with a Clear Ambition to Further Fuel Growth
…with a Clear Ambition to Further Fuel Growth Global partner of choice to biopharma customers, positioned to meet increasing demand for end-to-end solutions from drug development through life-cycle management Capital Markets Day – September 27, 2023 11
Slide 12: Business and Corporate Overview
Franco Moro x Chief Executive Officer Business and Corporate Overview Capital Markets Day – September 27, 2023
Slide 13: Business and Corporate Overview Agenda
Business and Corporate Overview Agenda for the session • Business Overview • Update to Strategic & Operational Priorities • Injectables Market Trends Capital Markets Day – September 27, 2023
Slide 14: Mission Critical Role in the Pharmaceutical Value Chain
Mission Critical Role in the Pharmaceutical Value Chain Supporting Customers From Drug Development through Life-Cycle Management DRUG SUBSTANCE DRUG PRODUCT API Finished Drug Manufacturing Product Formulation Device & Container Device & Container Drug concept, design & testing manufacturing Fill & A
Slide 15: Single Value Proposition Delivered Through Two Segments
Single Value Proposition Delivered Through Two Segments Stevanato Group’s Offering Biopharmaceutical & Diagnostic Solutions Pharmaceutical & IVD Engineering 2022 Revenue: € 800 M (81%) 2022 Revenue: € 184 M (19%) Drug Containment Solutions (DCS) Drug In-Vitro Delivery Ready-To-Use EZ-fill® & Bulk Di
Slide 16: Leveraging Engineering to Power SG Product & Services Portfolio
Leveraging Engineering to Power SG Product & Services Portfolio Benefits to Customer Benefits to Stevanato CUSTOMER • Higher quality containment Glass • Optimizes industrial setup: higher solutions yield and greater flexibility Converting • Shorter lead-times BioPharma • Easy single supplier managem
Slide 17: Unique Integrated Offering Delivers High Value to Customers
Unique Integrated Offering Delivers High Value to Customers Key Differentiator and Competitive Advantage Merck-Serono Customer Case Study 2 Products • Developed custom testing protocols 1 2 • Provided high-quality containment solution: SG NEXA® 3 • Developed state-of-the-art automated assembly equip
Slide 18: Near-Term Strategic and Operational Priorities
Near-Term Strategic and Operational Priorities to Capitalize on Strong Secular Tailwinds Global HVS R&D Multi-Year Expansion Growth Innovation Pipeline Capital Markets Day – September 27, 2023 18
Slide 19: Maximizing Industrial Footprint to Meet Global Demand for HVS
Global HVS R&D Multi-Year Expansion Growth Innovation Pipeline Maximizing Industrial Footprint to Meet Global Demand for High-Value Solutions Validation Commercial activities production 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fishers, IN Piombino Dese Zhangjiagang Latina Validation activi
Slide 20: High-Value Solutions: High-Performance, Best-in-Class Technologies
Global HVS R&D Multi-Year Expansion Growth Innovation Pipeline High-Value Solutions: High-Performance, Best-in-Class Technologies Key Value for Customers HVS Revenue Share % of Total Revenues (rounded) Reduced Superior 32% to Total Cost of Quality & 34% 30% Ownership (TCO) Performance 25% 22% 17% Fa
Slide 21: Global Drug Pipeline Dominated by Injectables
Global Drug Pipeline Dominated by Injectables Injectable Formats are Generally the Most Prevalent Patient Delivery for Biologics Global pipeline of drugs in development 1 at record levels - 21,292 Biologics (requiring high- performing packaging and delivery solutions) 1 61% of those in the pipeline
Slide 22: Operating in a Market With High Barriers to Entry
Operating in a Market With High Barriers to Entry Technological and scientific know-how Risk-averse industry High barriers Increasingly strict regulatory & quality standards to entry High switching costs Capital intensive Capital Markets Day – September 27, 2023 22
Slide 23: Setting the Stage for Sustainable Long-Term Growth
Setting the Stage for Sustainable Long-Term Growth • Mission critical role in Pharmaceutical supply chain • Unique integrated value proposition to support customers at every step • Concentrated market with high barriers to entry • Clear operational priorities to capitalize on secular macro tailwinds
Slide 24: Industry and Market Outlook
Mauro Stocchi Chief Business Officer Riccardo Marcon Strategic Marketing, Alliances and M&A, Senior Director Industry and Market Outlook Capital Markets Day – September 27, 2023
Slide 25: Industry and Market Outlook Agenda
Industry and Market Outlook Agenda for the session • End-market Pharmaceutical Demand Trends • Supply Chain and Regulatory Trends Capital Markets Day – September 27, 2023
Slide 26: Serving Large Direct Markets with Integrated Solutions
Serving Large Direct Markets with Integrated Solutions $ 15.5B Total 2022 Addressable Market Across Two Business Segments Engineering Segment BioPharma and Diagnostics Solutions Segment Drug Containment Solutions Drug Delivery Systems IVD Solutions Assembly, Converting, Inspection $ 3.8B $ 2.1B $ 8B
Slide 27: Biologic Drugs are the Primary Growth Driver Within Injectables
Biologic Drugs are the Primary Growth Driver Within Injectables Market Segment Biopharmaceutical Injectables In-Vitro Diagnostics Small Molecules Molecular End Market Biologics Vaccines Insulin Other & Generics Diagnostic Market Volume Growth 15%+ 6% to 8% 1% to 2% ~2% ~10% ~6% 2022-27 CAGR Antibodi
Slide 28: Commercial Footprint to Capture Expected Market Growth
Stevanato Group Has the Commercial Footprint to Capture Expected Market Growth, Comprised Mainly of Commercial-Stage BioPharma Exp. Biologics Growth by Customer Status SG Current Presence in Exp. Biologics Market Growth Exp. Sales of Biologics by volume in the 7 Major Markets Exp. Sales of Biologics
Slide 29: Multi-Year Visibility of Future Customers' Demand
…and With Several Levers That Offer Multi-Year Visibility of Future Customers’ Demand Multi-Year Commercial Agreements provide security and flexibility: • Minimum volume commitments 3 to 12 1. Standalone purchase order months • Take-or-pay SG Key Accounts are • Price adjustment clauses 1 to 2 common
Slide 30: Biologics Growth is Driving Demand for High Value Solutions
Biologics Growth is Driving Demand for High Value Solutions SG Offers Full Suite of High-performance Products to Address Scientific and Therapeutic Need BioPharma and Diagnostics Solutions Segment Drug Containment Solutions Drug Delivery Systems IVD Solutions • EZ-fill® ALBA® PFS Proprietary Devices
Slide 31: New Weekly GLP1s for Obesity are Driving Market Expansion
New Weekly GLP1s for Obesity are Driving Market Expansion GLP-1 Selected Examples of Injectables Obesity Products Obesity Market Forecast PRODUCT DDS DCS (USD Bn.) Syringe/ Wegovy (semaglutide) Cartridge Auto-injector & Pen 56 Cagrisema Syringe (semaglutide + Auto-injector cagrilintide) +36% Saxenda
Slide 32: GLP-1 Standard Presentations and SG Market Presence
GLP-1 Standard Presentations and SG Market Presence Today GLP-1 Pen Injectors Auto-Injectors • Doses can be modulated• Fixed dosing #2 in PFS • Multiple doses/injections• Single-use market market leader in • Cartridge-based• Pre-filled syringe-based cartridges • Current standard for diabetes care• W
Slide 33: Building on Core BDS Products to Exploit the GLP1 Opportunity
Building on Our “Core” BDS Products to Exploit the GLP1 Opportunity Over the Next Decade GLP-1 Obesity/GLP-1 “Runway” for SG: Incremental Revenue Potential Upside 3: Proprietary Device: Aidaptus® AI / Alina® Pen ILLUSTRATIVE Upside 2: Device Contract Manufacturing Upside 1: EZ-fill® NEXA® Cartridges
Slide 34: GLP1 Example of Engineering Portfolio Value
GLP1 is an Example of How Our Engineering Portfolio can Provide Unique Value to Pharma Customers GLP-1 Inspection, assembly and packaging equipment from prototyping to large scale production Benchtop Unit Pilot Line (GMP Compliant) Commercial Line Design Development DFA Clinical Pilot Production Med
Slide 35: Monoclonal Antibodies are Key Growth Driver Within Biologics
After GLP1s, Monoclonal Antibodies (especially in AI/PFS) are Key Growth Driver Within Biologics Antibodies Antibody drugs Expected “blockbusters” – Top 10 recently approved drugs ranked by ’27 volume (excl. vaccines, insulin) Drug Name Delivery End-Market Originator (company, brand) SEMAGLUTIDE AI
Slide 36: SG Offers Wide Portfolio of HVS for Antibodies
SG Offers Wide Portfolio of HVS, Specifically Addressing the Most Challenging Antibodies Requirements Antibodies • ALBA® PFS SG containment and delivery• NEXA® Cartridges • NEXA® Vials (both • NEXA® PFS TM Bulk and EZ-fill®) • Vertiva OBDS high-value solutions • Aidaptus® AI Container compatibility
Slide 37: SG Positioned as Leader in Antibodies Segment
SG Positioned as Leader in This Segment, due to Cutting-edge R&D and Integrated Offering, Including Engineering Capabilities Antibodies SG key competitive advantages Examples of leadership EZ-fill® ALBA® PFS – the industry leading SG cutting-edge R&D, deploying science in containment solution for an
Slide 38: SG NEXA Vial: Proprietary Technology
SG NEXA® Vial: Proprietary Technology Where Industrialization Was Possible Thanks to SG Engineering Antibodies Vials 1 - Proprietary Forming Process • No glass-to-glass • No metal-to-glass • Upgraded forming stations with lower contact forces during 1 forming of glass • Optimized flame control for b
Slide 39: mRNA Technology Should Enable Effective Vaccinations
mRNA Technology Should Enable Effective Vaccinations for New Therapeutic Areas (i.e. Respiratory Viruses) mRNA mRNA vaccine pipeline by therapy area by number of candidates (2016, 2022) (# of drug candidates) 65 60% of mRNA Other vaccines in 11 Oncology development are 5 Flu / respiratory for non-Co
Slide 40: mRNA Vaccines Require Deep Cold-Storage
mRNA Vaccines Require Deep Cold-Storage and Pose Challenges to Drug Product Stability and Container Closure Integrity (CCI) to PFS mRNA mRNA challenges moving from multi-dose vials to single-dose PFS SG HVS Solutions EZ-fill® Alba® ITC PFS The intrinsic nature of mRNA/Lipid (glass) Nanoparticles pos
Slide 41: Industry and Market Outlook Agenda
Industry and Market Outlook Agenda for the session • End-market Pharmaceutical Demand Trends • Supply Chain and Regulatory Trends Capital Markets Day – September 27, 2023
Slide 42: Increasing Adoption of RTU Vial and Cartridge Filling Lines
Increasing Adoption of RTU Vial and Cartridge Filling Lines is a Key Enabler and Leading Indicator of Potential Future RTU Conversion RTU Global Vial RTU filling line market Global Cartridge RTU filling line market (# of lines) (# of lines) +32% +32% 595 595 RTU Lines able 452 452 175 RTU Lines able
Slide 43: RTU Containers Help Simplify EU-GMP Annex 1 Compliance
Adoption of RTU Containers by Biopharma Manufacturers Helps Simplify Compliance and Reduce Burden of EU-GMP Annex 1 Regulation RTU Revised Principles And Main Impacts By ANNEX 1 RTU containers simplify compliance to ANNEX 1 Impacted by RTU containers Out-of-scope for RTU containers Optimized investm
Slide 44: RTU Vials & Cartridges Conversion: Long-Term Opportunity
RTU Vials & Cartridges Conversion: A Promising Long-Term Opportunity RTU Today 1980’s 1990’s 2000’s 2010’s 2020’s Market RTU Volume Penetration RTU platform launch ~4 Bn > 95% PFS Market Volume: < 0.5 Bn RTU platform launch ~13 Bn < 5% Vials Market Volume: 8 - 9 Bn RTU platform launch Cartridges ~4
Slide 45: SG Poised to Benefit from Growth of EZ-Fill Vials and Cartridges
SG Poised to Benefit from Projected Future Growth and Adoption of EZ-Fill Vials and Cartridges RTU Global RTU Vials & Cartridges Market (USD M) Market Leader ~1,500 +13% ~490 2021 2030 Source: Prescient & Strategic Intelligence Reports: “Global RTF/RTU Vials Market” and “Global RTU Cartridges Market
Slide 46: Well Positioned to Capitalize on Secular Tailwinds
Stevanato Group is Well Positioned to Capitalize on Secular Tailwinds & Favorable Demand Trends • Biologics (and injectables) is a key growth market for Stevanato Group • SG has a broad and integrated portfolio able to capture the growth coming from GLP1s, antibodies and mRNA technologies • Combinin
Slide 47: Customer Case Study
Sebastien Lebreton x Head of Global Key Accounts Customer Case Study Capital Markets Day – September 27, 2023
Slide 48: Customer Paths into High Value Solutions
Customer Paths into High Value Solutions Demand for high- Other HVS Adoption to RTU performance products and configuration containers services Focus of this session Capital Markets Day – September 27, 2023 48
Slide 49: Customer Case Study: RTU Technology Tackles Customer Challenges
Customer Case Study: RTU Technology Tackles Many Customer Challenges Key Challenges 1. Our customer had an extensive pipeline of new drugs in development with many different containment & administration formats Launched multi-year project 2. Needed to evaluate alternative drug packaging collaboratio
Slide 50: Multi-Year, Multi-Project Collaboration to Support RTU Adoption
R&D and scientific collaboration Multi-Year, Multi-Project Collaboration to Small-batches product supply Large-batches product supply Support RTU (EZ-fill®) Adoption 2016 2017 2018 2019 2020 2021 2022 2023 Technology evaluation High-Value PFS SG first ever customer supplier in PFS custom development
Slide 51: The Adoption of RTU Addresses Customer Challenges
The Adoption of RTU Addresses Customer Challenges Key Challenges Solutions 1. Our customer had an extensive pipeline of new Flexibility to accommodate any future product drugs in development with many different presentation and packaging requirement containment & administration formats 2. Needed to
Slide 52: Customer's Expected Path in the Adoption of RTU for Cartridges
Customer’s Expected Path in the Adoption of RTU for Cartridges ILLUSTRATIVE RTU - New Capacity RTU - Conversion Bulk 2000 2019 today future Capital Markets Day – September 27, 2023 52
Slide 53: Customers Increasingly Dependent on Reliable External Partners
Customers are Increasingly Dependent on Reliable External Partners to Support Successful Pathway for Lifecycle Management • Supply chain needs higher flexibility to anticipate forecast variability, to Adoption of RTU answer to future needs of drugs in pipeline, and to de-risk investment configuratio
Slide 54: Q&A
Q&A Capital Markets Day – September 27, 2023
Slide 55: Break
Break See you at 1:00pm Capital Markets Day – September 27, 2023
Slide 56: R&D and Innovation
Paolo Patri Chief Technology Officer Odra Pinato Head of EMEA Technology Excellence Center R&D and Innovation Capital Markets Day – September 27, 2023
Slide 57: R&D and Innovation Agenda
R&D and Innovation Agenda for the session • Strategy and Overview • TEC: Technology Excellence Centers Capital Markets Day – September 27, 2023
Slide 58: Research, Development and Innovation are Central to Our Culture
Research, Development and Innovation are Central to Our Culture 150+ 50+ € 34+ M 7 8 Employees Ongoing R&D and Invested in 2022* Global R&D Hubs Collaborations with focused on R&D innovation projects leading academic • Analytical Services: institutions Italy (HQ) / U.S. • Biomedical Engineers • DCS:
Slide 59: R&D Strategy Designed to Meet Customers' Evolving Needs
R&D Strategy Designed to Meet Customers' Evolving Needs Investments Centered on Three Key Pillars Process Drug Drug Delivery Excellence & Containment Systems Digitalization Solutions Innovate SG and customers’ Focus on patient-centricity, Develop solutions to manufacturing processes to sustainabilit
Slide 60: Process Excellence: Drug Containment Solutions Pillar
Process DCS DDS Excellence Helping Customers Bring Life Changing Medicine to Market Pillar 1: Drug Containment Solutions • Development of DCS with lowest particle generation, reduced or no extractable release, and metal-free option • Strengthen deep freeze / dead volume properties of solutions to su
Slide 61: Alba: Breakthrough Technology; Purpose Built for Biologics
Process DCS DDS Excellence Alba®: Breakthrough Technology; Purpose Built for Biologics Pillar 1: Drug Containment Solutions Silicon Particles Test Results Gliding Force Test Results ® Alba shows reduction of silicone particles from 117 to 1, providing same-level Alba® coating provides consistent and
Slide 62: Patient-centricity, Sustainability and Digitalization: Drug Delivery Systems
Process DCS DDS Excellence Patient-centricity, Sustainability and Digitalization Pillar 2: Drug Delivery Systems • Complete development of proprietary device platform portfolio: pen-injector, auto-injector, wearable device • Develop reusable and digital / connected concepts extending existing inject
Slide 63: Vertiva: Proprietary On-Body Delivery System Platform
Process DCS DDS Excellence TM Vertiva : Proprietary On-Body Delivery System Platform Pillar 2: Drug Delivery Systems On-Body Delivery System (OBDS) platform comprised of a single-use Pod with pre-filled and pre-loaded cartridge and a multi-use, smart controller • Flexible platform, from 3mL ISO stan
Slide 64: Process Innovation Driving Increased Efficiency in Manufacturing
Process DCS DDS Excellence Process Innovation Driving Increased Efficiency in Manufacturing Processes Pillar 3 : Process Excellence & Digitalization • Virtual prototyping accelerating development process of DCS, DDs and equipment, taking lead time from months to weeks and reducing time-to-market • E
Slide 65: Predicting Post Deposition Film Spreading over a Surface
Process DCS DDS Excellence Looking into Current Challenges to Predict Post Deposition Film Spreading over a Surface Pillar 3 : Process Excellence & Digitalization Capital Markets Day – September 27, 2023 65
Slide 66: Collaborations Complement Our Product & Service Portfolio
Collaborations Complement Our Product & Service Portfolio 2021 2022 Extractable and leachables / TM Nexa Flex : Polymer* pre-fillable syringe characterization studies 2022 2023 End-to-end supply chain solution for Aidaptus®: Single-use auto-Injector proprietary on-body delivery system *Nexa Flex™ is
Slide 67: R&D and Innovation Agenda
R&D and Innovation Agenda for the session • Strategy and Overview • TEC: Technology Excellence Centers Capital Markets Day – September 27, 2023
Slide 68: Supporting Customer Development with Early Analytics and Testing
Supporting Customer Development with Early Analytics and Testing Cutting-Edge Technology Excellence Centers (TEC) • Expert hub partnering with customers at an early stage to support their scientific and technical needs in drug product development • Wide breadth of scientific and technical expertise
Slide 69: Technology Excellence Centers
Technology Excellence Centers Capital Markets Day – September 27, 2023 69
Slide 70: Creating Value by Anticipating Customer Engagement
Creating Value by Anticipating Customer Engagement DISCOVERY DEVELOPMENT DELIVERY & LCM Drug Discovery Pre-Clinical Phase I Phase II A / II B Phase III Commercial Phase IV and LCM Traditional “late-stage” supplier engagement Early-stage partner engagement Technology Excellence Drug Product Drug Prod
Slide 71: Analytical and Testing Services Help Enhance the Integrity of Medicine
Analytical and Testing Services Help Enhance the Integrity of Medicine Focus on Quality, Continuous Innovation and Value-added Services Surface Characterization Chemical Analysis to detect Container Performance (e.g., (e.g., silicone layer Small-batch Fill & Finish risk of chemical interaction glidi
Slide 72: Vial Comparative Study for Customer Monoclonal Antibodies Platform
Vial Comparative Study for Customer Monoclonal Antibodies Platform Technology Excellence Center: Customer Case Study Customer Need & Objective Strong value for customer and SG Vial selection for high-value mABs platform → de-risking of primary container selection to reduce Secured early stage (clini
Slide 73: R&D is a Cornerstone in Driving Real Value to Customers
R&D is a Cornerstone in Driving Real Value to Customers • We are a Science & Technology driven company • We gain competitive advantages in developing and industrializing market-leading innovative technologies • Pharma innovation is driving an increasing need for strong scientific support at early st
Slide 74: Q&A
Q&A Capital Markets Day – September 27, 2023
Slide 75: Financial Update
Marco Dal Lago x Chief Financial Officer Financial Update Capital Markets Day – September 27, 2023
Slide 76: Proven Track Record Delivering Long-Term Growth
Proven Track Record Delivering Long-Term Growth FY 2022 FY 2021 FY 2020 FY 2019 Revenue (€M) 984 844 662 537 Double-digit revenue growth yoy growth +17% +27% +23% - Increasing HVS share of Revenues 30% 25% 22% 17% mix of HVS Gross profit margin 32.5% 31.4% 29.3% 25.7% yoy growth +110 bps +210 bps +3
Slide 77: Reiterating 2023 Guidance; Updating Mid-Term Outlook to 2027
Reiterating 2023 Guidance; Updating Mid-Term Outlook to 2027 2023 prior outlook outlook to 2027 Revenue € 1.085B to € 1.115B - Revenue Growth 10% to 13% HSD to LDD 2022to 2026 LDD 2024 to 2027 HVS Share of Revenue 32% to 34% High 30% in 2026 40% to 45% € 291.8M to € Adjusted EBITDA* - - 303.8M Adjus
Slide 78: Expanding Margins in the Medium Term
Expanding Margins in the Medium Term Construct for margin expansion towards 2027 ILLUSTRATIVE Operational Efficiencies Scale (leverage fixed costs) Ramp-up Adj. EBITDA inefficiencies Mix Mix Depreciation Gross (shift to HVS) (shift to HVS) margin & EBIT 2025 2023 2027 • Gross margin• Gross margin •
Slide 79: Mid-Term Clear Capital Allocation Priorities Towards 2027
Mid-Term Clear Capital Allocation Priorities Towards 2027 ORGANIC Growth R&D M&A Dividend Expand global capacity in Invest in R&D to maintain Opportunistic M&A to Expect to continue HVS to drive sustainable and accelerate HVS complement our existing distributing comparable low and accretive growth p
Slide 80: CapEx Cycle Building the Infrastructure for Long-term Growth
CapEx Cycle Building the Infrastructure for Demand-Driven Long-term Growth Ongoing CapEx cycle with multiple expansion projects in parallel, as planned at the time of IPO (CapEx as % of Revenue) 35% Executing growth plan at normalized to 40% CapEx level 31% Growth execution Return to ~70% HSD to LDD
Slide 81: Attractive Return Profile with Carefully Managed Investment Risk
Attractive Return Profile with Carefully Managed Investment Risk Exp. metrics from our EZ-fill® facilities Risk-mitigating levers • Strong commercial visibility on future demand € 1 € 1 • Anchor customers Invested CapEx Revenue Generated • Wide set of commercial opportunities; (fully ramped-up) low
Slide 82: Backing our Investments with Long-Term Demand Visibility
Backing our Investments with Long-Term Demand Visibility Multi-year Commercial Agreements provide security and flexibility: 3 to 12 1. Standalone purchase order SG Key Accounts are • Minimum volume commitments months commonly under multi- 1 to 2 • Take-or-pay 2. Rolling commercial forecast year comm
Slide 83: Customer Demand has Outpaced our Expectations Compared with Plan at IPO
Customer Demand has Outpaced our Expectations Compared with Plan at IPO 18% Plan at time of IPO CAGR Actuals & Guidance 13% 1,085 1,251 CAGR to 1,115 954 662 Net Revenues (€) 2023 2026 2020 HVS Share of 22% 29% 32% to 34% 36% approaching 40% Revenue Expanded and modulated investments planned at time
Slide 84: Free Cash Flow Driven by Growth CapEx Cycle
Free Cash Flow Driven by Growth CapEx Cycle Free Cash Flow Trajectory ILLUSTRATIVE 35% to 45% of adj. EBITDA Positive (with current allocations assumptions) Approaching Negative break-even (peak) 2023 2024 2025 2027 Capital Markets Day – September 27, 2023 84
Slide 85: Return on Invested Capital Expected to Decline in 2024
Return on Invested Capital Expected to Decline in 2024 Driven by CapEx, Steadily Growing from 2025 Expected ROIC Trajectory • Expected temporary decline driven by strong ROIC ILLUSTRATIVE growth capex cycle: lowest point expected in 2024 • Strong accretion trajectory from 2025, as new capacity comes
Slide 86: Well Positioned to Create Sustainable Long-Term Value
Stevanato Group is Well Positioned to Create Sustainable Long-Term Value Targeting reliable sustainable TOP-LINE GROWTH LDD through 2027 backed by proven track record of consistent delivery 40% to 45% Continued mix shift towards High Value Solutions HVS of revenue in 2027 Path ahead for MARGIN expan
Slide 87: Q&A
Q&A Capital Markets Day – September 27, 2023
Slide 88: Closing Remarks
Franco Stevanato Executive Chairman Franco Moro Chief Executive Officer Closing Remarks Capital Markets Day – September 27, 2023
Slide 89: Paving the Way for the Future
Paving the Way for the Future Global partner of choice to biopharma customers, positioned to meet increasing demand for end-to-end solutions from drug development through life-cycle management Capital Markets Day – September 27, 2023 89
Slide 90: Thank You
f, qs SG, Stevanato Group (NYSE: STN) Capital Markets Day Wednesday, September 27, 2023 Thank You
Slide 91: Meet the Stevanato Team
Meet the Stevanato Team Franco Stevanato, Executive Chairman Franco Moro, Chief Executive Officer Marco Dal Lago, Chief Financial Officer Marco Dal Lago brings more than 25 years of experience in With more than 30 years of experience managing global API (Active Franco tevanato was appointed Executiv
Slide 92: Meet the Stevanato Team
Meet the Stevanato Team Riccardo Butta, President of the Americas Paolo Patri, Chief Technology Officer Mauro Stocchi, Chief Business Officer With more than 25 years on industry experience, Riccardo Paolo Patri joined Stevanato Group in 2018 and serves as our Chief With more than 25 years of extensi
Slide 93: Meet the Stevanato Team
Meet the Stevanato Team Fabio Bertacchini, Senior Director of Product, Doug Bruno, Senior Vice Sharon DeWolf, Marketing and Proposal and Technical Account Management President & General Counsel Communications, Americas Region Fabio Bertacchini joined Stevanato Group in 2014 and currently With more t
Slide 94: Meet the Stevanato Team
Meet the Stevanato Team Giacomo Guiducci, Investor Relations, Latoya Greve, Senior Director Steven Kaufman, Vice President Strategic Alliances & M&A HR, Americas Region Drug Delivery Systems Giacomo Guiducci joined Stevanato Group in 2021 and brings Latoya Greve brings over 20 years of industry expe
Slide 95: Meet the Stevanato Team
Meet the Stevanato Team Sebastien Lebreton, Riccardo Marcon, Senior Lisa Miles, Senior Vice President of Head of Global Key Accounts Director Alliances & M&A Investor Relations Sebastian Lebreton currently serves as Head of Global Key Riccardo Marcon joined Stevanato Group in 2017 and serves as With
Slide 96: Meet the Stevanato Team
Meet the Stevanato Team Anthony Vico, Head of U.S. Odra Pinato, Head of EMEA Technology Technology Excellence Center Excellence Center, Lab Analytics Odra Pinato, Ph.D., joined Stevanato Group in 2014 and currently Anthony Vico joined Stevanato Group in 2011 and currently leads leads the Company’s E
Slide 97: Appendix
Appendix Capital Markets Day – September 27, 2023
Slide 98: Reconciliation Tables (1/2)
Reconciliation Tables (1/2) Reconciliation of 2019, 2020, 2021 and 2022 Adjusted EBITDA (Amounts in € millions, except per share data) (Unaudited) 2022 2021 2020 2019 Reported EBITDA 257.3 218.6 157.2 108.4 Adjusting items: Restructuring and related charges 0.1 1.2 - - Incentive Plans Settlement - (
Slide 99: Reconciliation Tables (2/2)
Reconciliation Tables (2/2) Reconciliation of 2023 Guidance for Adjusted EBITDA, Adjusted Operating Profit, Adjusted Net Profit and Adjusted Diluted EPS (Amounts in € millions, except per share data) (Unaudited) Operating Revenue EBITDA Net Profit Diluted EPS Profit Reported 1,085.0 - 1,115.0 281.3
Slide 100: Glossary
Glossary API Active Pharmaceutical Ingredient BDS BioPharmaceutical and Diagnostic Solutions Segment CDMO Contract Development and Manufacturing Organization CMC Chemistry, Manufacturing, and Controls CMO Contract Manufacturing Organization DCS Drug Containment Solutions DDS Drug Delivery Systems FC
Slide 101: Thank You
f, qs SG, Stevanato Group (NYSE: STN) Capital Markets Day Wednesday, September 27, 2023 Thank You
Slide 102: Breakout Session – Drug Containment Solutions
Breakout Session – Drug Containment Solutions
Slide 103: Drug Containment Solutions Product Portfolio
Fabio Bertacchini x Product, Proposal and Technical Account Management, Senior Director Drug Containment Solutions Product Portfolio Capital Markets Day – September 27, 2023
Slide 104: Drug Containment Solutions – Product Portfolio Agenda
Drug Containment Solutions – Product Portfolio Agenda for the session • Overview • Performance • EZ-fill® Configuration Capital Markets Day – September 27, 2023
Slide 105: Drug Containment Solutions Overview
Drug Containment Solutions Overview Mission Critical Components in the Production of Pharmaceutical and Biotechnology Products; SG's Solutions are Complex and Rely on Multiple Sophisticated Industrial Processes to Form, Treat, Inspect and Package these Products Syringe Platform Vial Platform Cartrid
Slide 106: Four Performance Levels Respond to Customer Needs
Four Performance Levels Respond to Customer Needs Optimized Drug Containment Solutions Designed to Maintain Drug Stability, Potency and Purity Breakthrough Treated with an innovative coating with breakthrough performance in solution for reducing to ultralow content of silicon oil droplets and any po
Slide 107: Robust Process Validated for High Volume Production
Robust Process Validated for High Volume Production Optimized Solution for Parenteral Drugs FEATURES MAIN BENEFITS Design flexibility and additional Custom container solutions treatments available for specific requirements Development Uniform quality aligned to market Glass container requirements qu
Slide 108: Higher Stability and Integrity without Internal Coating
Higher Stability and Integrity without Internal Coating Ideal for Aggressive (High PH) Drugs FEATURES MAIN BENEFITS No change in glass or additional Reduced validation activities – Development treatments no need for re-filing Lower risk for glass delamination Higher drug stability and and corrosion
Slide 109: Superior Cosmetic Quality and Mechanical Resistance
Superior Cosmetic Quality and Mechanical Resistance Best-in-class Solution for Most Demanding Products FEATURES MAIN BENEFITS Strict dimensional tolerances Compatibility with injection devices Development Improved mechanical resistance Reduced risk of breakages Improved cosmetic quality Reduced risk
Slide 110: Breakthrough Solution for Biologics
Breakthrough Solution for Biologics Innovative Proprietary Coating Significantly Reduces Silicone Particle Generation FEATURES MAIN BENEFITS Lower risk of protein aggregation or silicone particles generation Minimized drug-container Preserved drug stability interaction and pH drift and integrity Min
Slide 111: Microvials: Optimized Containers for Nasal Delivery Devices
Microvials: Optimized Containers for Nasal Delivery Devices Microvials Primary Packaging can be Easily Integrated into Drug Delivery Devices MICROVIALS FEATURES MAIN BENEFITS Design approved by main nasal device manufacturer Easy integration within nasal device systems and enhanced functionality Opt
Slide 112: Nexa Flex: Pre-Sterilized Polymer Syringes
Nexa Flex™: State-of-the Art Pre-Sterilized Polymer Syringes FEATURES MAIN BENEFIT Available in both COC and COP polymer Maximize flexibility to suit wide material range of applications Designed to assure tight dimensional Helps ensure reliability during tolerances fill/finish steps and final user M
Slide 113: Revolutionized Ready-to-Use Vials and Cartridge Platforms
Revolutionized Ready-to-Use Vials and Cartridge Platforms Fully Integrated Pre-Sterilized Containment for Aseptic Fill/Finish Manufacturing Innovator for RTU vials and cartridges: proven advantages have turned SG technology into an industry standard PRESERVED DRUG AND PHARMA RELIABILITY SUCCESSFUL A
Slide 114: Legacy Bulk Containment Fill/Finish is Less Efficient
Legacy Bulk Containment Fill/Finish is Less Efficient for Customers Value Chain: Roles & Responsibilities Traditional and Bulk Containment Drug Containment Pharma Company Solutions Industry Containers PRESERVED DRUG AND PHARMA REDUCED TCO RELIABILITY INCREASED EFFICIENCY SUCCESSFUL AND TIMELY LAUNCH
Slide 115: EZ-fill Drives Improved Integrity and Safety of the Medicine
EZ-fill® Drives Improved Integrity and Safety of the Medicine GLASS-TO-GLASS AND ROTARY TABLE Reduced risk of rejections, complaints and recalls GLASS-TO-METAL CONTACT • Reduced risk of glass particles • Improved cosmetic quality and reduced critical defects WASHING & DEPYROGENATION INFEED* DRYING*
Slide 116: Ready-to-Fill Configuration: Advantages and Value to Customers
Ready-to-Fill Configuration: Significant Advantages and Value to Customers Pharmaceutical Needs Value Chain: Roles & Responsibilities REDUCE TCO INCREASE QUALITY Drug Containment Industry Pharma Company INCREASE FLEXIBILITY REDUCE Ready-to-Use TIME-TO- Vials, Cartridges, Syringes PRESERVED DRUG AND
Slide 117: EZ-fill Smart Platform Enhances Product Performance
EZ-fill Smart™ Platform Enhances Product Performance Next generation EZ-fill® platform for ready-to-fill vials SECONDARY 1 PACKAGING DESIGN • INCREASED QUALITY • INCREASED REGULATORY STERILE PROCESSING 2 ACCEPTANCE DESIGN • REDUCED TCO • INCREASED SUSTAINABILITY PRESERVED DRUG AND PHARMA ALTERNATIVE
Slide 118: Key Takeaways Drug Containment Solutions
Key Takeaways Drug Containment Solutions • We are continually innovating across our Containment Solution platform • We have developed multiple performance levels to meet current and future market needs • We are accelerating the shift to ready-to-use vials and cartridges across the industry Capital M
Slide 119: Q&A
Q&A Capital Markets Day – September 27, 2023
Slide 120: Thank You
f, qs SG, Stevanato Group (NYSE: STN) Capital Markets Day Wednesday, September 27, 2023 Thank You
Slide 121: Breakout Session – Drug Delivery Systems
Breakout Session – Drug Delivery Systems
Slide 122: Drug Delivery Systems Product Portfolio
Riccardo Butta President of Americas Steven Kaufman Vice President, Drug Delivery Systems Drug Delivery Systems Product Portfolio Capital Markets Day – September 27, 2023
Slide 123: Drug Delivery Systems – Product Portfolio Agenda
Drug Delivery Systems – Product Portfolio Agenda for the Session • Value Proposition • Go-to-Market Strategy • SG Drug Delivery Device Portfolio Capital Markets Day – September 27, 2023
Slide 124: Value Proposition: Integrated Solutions for Drug Delivery Systems
Value Proposition: Integrated Solutions for Drug Delivery Systems Leveraging our Vertically Integrated Capabilities to Drive Innovation, Accelerate Time to Market, and Enable a Resilient, Efficient and Sustainable Supply Chain for our Biopharma Customers Engineering of Device Drug Analytical & sub &
Slide 125: Go to Market Strategy for Devices
Go to Market Strategy for Devices Driven by People, Partnerships and Innovation Team of Industry Professionals Experienced in the field of devices R&D Center in Milan, Italy With state-of-the-art equipment & capabilities Technology Management Driving innovation around core technologies Investing in
Slide 126: Proprietary Device Portfolio
Proprietary Device Portfolio Offering a Range of Platform Devices to Meet the Needs of Biopharmaceutical Companies ™ Alina® Aidaptus® Vertiva Pen-injector Platform Auto-injector Platform On-Body Delivery System Platform Market CAGR Double-Digit High Double-Digit High Single-Digit / Low Double-Digit
Slide 127: Proprietary Device Portfolio
Proprietary Device Portfolio Offering a Range of Platform Devices to Meet the Needs of Biopharmaceutical Companies ™ Alina® Aidaptus® Vertiva Pen-injector Platform Auto-injector Platform On-Body Delivery System Platform Market CAGR Double-Digit High Double-Digit High Single-Digit / Low Double-Digit
Slide 128: Alina Pen-Injector Platform
Alina® Pen-Injector Platform In-licensed Patented Technology to Address Growing Demand for Self-administration Alina® is a variable and fixed dose, disposable, pen-injector platform based on proven technology • Platform offering with multiple variants to support a range of therapeutic applications •
Slide 129: Final Assembly Equipment
Final Assembly Equipment Streamlining Production through Innovative, Efficient, Reliable Automation Technologies Offering for Alina® includes final assembly equipment solutions for installation at customer, as well as Contract Manufacturing Organization (CMO) fill & finish locations • Designed and b
Slide 130: Proprietary Device Portfolio
Proprietary Device Portfolio Offering a Range of Platform Devices to Meet the Needs of Biopharmaceutical Companies ™ Alina® Aidaptus® Vertiva Pen-injector Platform Auto-injector Platform On-Body Delivery System Platform Market CAGR Double-Digit High Double-Digit High Single-Digit / Low Double-Digit
Slide 131: Aidaptus Auto-injector Platform
Aidaptus® Auto-injector Platform Only Auto Injector with Auto Adjust Technology for Different Fill Volumes, Suitable for Both 1ml and 2.25ml Aidaptus® is an innovative award-winning design in collaboration with Owen Mumford • True platform technology that accommodates multiple syringe formats in the
Slide 132: Aidaptus Auto-Adjust Plunger Technology
Aidaptus® Auto-Adjust Plunger Technology Key Market Differentiator: Automatic Adjustment to Different Fill Volumes During Final Assembly, Enabling Pharma Partners to use the Same Device for Multiple Drugs and Concentrations 1mL Syringe 2.25mL Syringe Capital Markets Day – September 27, 2023 132
Slide 133: Aidaptus Comprehensive Product Offering
Aidaptus® Comprehensive Product Offering Leveraging Stevanato Group and Owen Mumford’s Combined Capabilities for a Flexible End-to-end Business Model to Simplify the Customer Supply Chain Device 1mL & 2.25mL Device Design, Performance & Final-assembly Development & Final-assembly Service Pre-filled
Slide 134: Proprietary Device Portfolio
Proprietary Device Portfolio Offering a Range of Platform Devices to Meet the Needs of Biopharmaceutical Companies ™ Alina® Aidaptus® Vertiva Pen-injector Platform Auto-injector Platform On-Body Delivery System Platform Market CAGR Double-Digit High Double-Digit High Single-Digit / Low Double-Digit
Slide 135: Vertiva On-Body Delivery System Platform
Vertiva™ On-Body Delivery System Platform A versatile platform that delivers: ✓ Micro-precision basal doses Multi-use Controller ✓ Full-content bolus injections• Control unit with customizable user-interface • Reusable to support daily, weekly or monthly injections Single-use Pod • Connectivity opti
Slide 136: Thermo Fisher & Stevanato Group Collaboration Framework
Thermo Fisher & Stevanato Group Collaboration Framework Providing end-to-end solution for on-body delivery system Customer Program Formulation & Container Closure Glass Cartridges Aseptic Cartridge Filling Characterization Device Final Assembly, Final Assembly Sub-Assembly Serialization & Packaging
Slide 137: Innovative Approach: People, Partnerships & Innovation
Innovative Approach: People, Partnerships & Innovation Empowering patients with next-generation drug-delivery solutions • Supporting biotech and pharmaceutical customers to bring their combination products to market quickly and efficiently • Built a global team of device professionals • Industry col
Slide 138: Q&A
Q&A Capital Markets Day – September 27, 2023
Slide 139: Thank You
f, qs SG, Stevanato Group (NYSE: STN) Capital Markets Day Wednesday, September 27, 2023 Thank You
Slide 140: Reference videos
Reference videos Highlights of our in-house capabilities & automation experience for medical device projects
Slide 141: Q2 2023 DDS Overview of SG Capabilities
Q2 2023 Confidential DDS Overview of SG Capabilities
Slide 142: Q2 2023 DDS Overview of SG Capabilities
Q2 2023 Confidential DDS Overview of SG Capabilities
Slide 143: Alina Pen Injector Video
Alina® Pen Injector Video 143 Copyright Stevanato Group 2023
Slide 144: Vertiva Pen Injector Video
Vertiva Pen Injector Video 144 Copyright Stevanato Group 2023
Slide 145: Capital Markets Day
f, 4 ‘SG, Stevanato Group (NYSE: STVN) Capital Markets Day Wednesday, September 27, 2023