Siegfried Holding Ag · SIX:SFZN
Siegfried — Investor Day (October 2024)
62 slides from Siegfried's investor day presentation, Oct 24, 2024
Slide 1: Capital Markets Day
Capital Markets Day Strategy EVOLVE + paves the way for continued profitable growth Barcelona, 24 October 2024
Slide 2: Disclaimer
Disclaimer This document is solely for use in connection with the presentation held by Siegfried Holding AG and their advisers. It is furnished to you solely for your information and you may not reproduce it or redistribute it to any other person. The contents of this document are to be kept confide
Slide 3: Strategy EVOLVE +
Strategy EVOLVE + Strengthening our path to success 3 |
Slide 4: Marcel Imwinkelried – CEO of Siegfried
Marcel Imwinkelried – CEO of Siegfried − CEO since September 2024 − Marcel Imwinkelried joined Siegfried in 2021 and was appointed Chief Operating Officer Drug Products in October 2021 − Previously worked for Novartis since 2005 in various roles and was appointed Global Head Technical Operations Sol
Slide 5: Siegfried at a glance – a globally leading network
Siegfried at a glance – a globally leading network with more than 150 years of pharmaceutical contract manufacturing experience Company overview Key financials Net sales in CHFm and Core EBITDA margin CAGR Who we − Leading global CDMO with 13 sites in 7 countries on three continents 19A-23A are − Fo
Slide 6: As a leader, we will continue to shape the CDMO industry
As a leader, we will continue to shape the CDMO industry Our size and our unceasing pursuit of business growth make us a strategic partner for our customers CDMOs by revenue size (€) Group # of CDMOs Market share Exemplary companies1 Breakaway >1bn 1% <20% group Following 500m-1bn 2% ~15% pack 250-5
Slide 7: Competitive and targeted offering in all growing customer markets
We have a competitive and targeted offering in all growing customer markets Global in-market sales prescription drugs ($bn) CAGR Siegfried offering 2018-24 2024-30 − Early stage CDMO services for +8%1,528 AAV1 based cell & gene 1,418 97 32% 37% therapies 1,317 76 − Currently constructing a GMP 1,218
Slide 8: Executing our strategy based on values, competencies and ambitions
Executing our strategy based on a strong set of values, competencies and ambitions With mastery of science and technology, Mission we take the precious innovation of our pharmaceutical customers to industrial scale We are the most trusted partner … we are the strongest team running Vision of the pha
Slide 9: EVOLVE +: We drive our strategy forward
EVOLVE +: We drive our strategy forward EVOLVE + builds upon the cornerstones of EVOLVE EVOLVE + Broaden Grow existing core Enter and grow new areas technological offering Small molecules (DS and DP) DS antibodies Advanced production End-to-end offering of DS and DP Cell & gene therapy (CGT) Strateg
Slide 10: We continue to execute value accretive M&A
We continue to execute value accretive M&A Successful track-record of integrating value accretive acquisitions We will continue value accretive M&A as a catalyst to drive growth on all levels Nov-14: Oct-15: Sep-20: May-23: Jul-24: Manufacturing site from Production sites from Manufacturing plants B
Slide 11: Siegfried's scale allows for an end-to-end service offering
Siegfried‘s scale allows for an end-to-end service offering Diversified technology offering is decisive to create strategic partnerships Benefits to customers Benefits to Siegfried Combined end-to-end service offering for Pre-filled Analytical Stronger customer intimacy both Drug Substances and Drug
Slide 12: Broad technological offering as key differentiator
Broad technological offering as key differentiator for acquiring further business Continuous expansion of technological portfolio Unmet demand for broad technological offering … … addressed by expanding our technological portfolio FDF (Drug API (Drug Products) Substances) Large pharma Small and mid-
Slide 13: EVOLVE + Excellence fields further accelerate profitable growth
EVOLVE + Excellence fields further accelerate profitable growth Commercial, development and operational excellence are the foundation for Siegfried’s EVOLVE + strategy EVOLVE + Commercial Excellence+ Development Excellence+ Operational Excellence+ − Adapt go-to-market strategy to changing − Offer in
Slide 14: Commercial Excellence+: More targeted value proposition
Commercial Excellence+: Providing a more targeted and differentiating value proposition to our customers Segmentation Prioritization Coverage Target operating model Identification of distinct customer Prioritization of customer segments Refinement of go-to-market strategy Roll-out operating model to
Slide 15: Development Excellence+: Strengthening early-stage services
Development Excellence+: We continue to strengthen our early-stage services offering development Pre-clinical / Phase I Phase II Phase III Launch / LCM Acquisition of early-stage manufacturing Strong development and scale-up capabilities integrated into site (Grafton) large-scale manufacturing netwo
Slide 16: Operational Excellence+: Scale and efficiency will drive growth
Operational Excellence+: Scale and efficiency will drive growth in the future Economies of scale Reliability Network / product allocation Operational excellence EBITDA > Sales growth growth Profitability Size − Growth translates into higher − Increase reliability and − Product allocation based on −
Slide 17: Operational Excellence+: Significant results being achieved
Operational Excellence+: Significant results are being achieved through operational excellence projects Sustainability initiatives On-site 3D printed spare parts Digitalization & automation − Since 2022, ~100 energy reduction initiatives − On-site design and printing of spare parts and − Areas for d
Slide 18: Proven success of EVOLVE strategy driving all value levers
Proven success of EVOLVE strategy driving all relevant value levers Accelerating sales, expanding margins, and optimizing capital efficiency drive long-term growth and profitability Value levers Successful financial track record Measures Net sales (CHFm) 1,272 834 +53% Stable organic growth Sales gr
Slide 19: EVOLVE + will drive value creation across all levers
As in the past, EVOLVE + will drive value creation across all levers Measures of EVOLVE+ Value levers Broaden technological offering Grow existing core Enter and grow new areas − Further expansion of − Further expansion of − Further develop DINAMIQS technological capabilities existing business areas
Slide 20: Strong and sustainable value creation
Strong and sustainable value creation 20 |
Slide 21: Strong performance showing resilience despite headwinds
Strong performance showing resilience despite macroeconomic headwinds Siegfried’s share price has nearly tripled over the last 5 years CHF Jul-24: CHF 1,168 Siegfried acquires CDMO site in 1,200 Grafton from Curia Global (US) +198% Sep-20: Sep-20: May-23: Siegfried and BioNTech Siegfried acquires No
Slide 22: Solid growth in net sales and operating cash flow
Solid growth in net sales and operating cash flow driven by capacity expansion, strategic acquisitions, and a shift towards high-margin products Net sales Comments in CHFm CAGR 1,272 − Driven by increasing demand, especially for 1,102 1,230 834 845 API and intermediates +11.1% − Underscored by strat
Slide 23: Both clusters poised for growth
Both clusters poised for growth while we continue to seek for a balanced revenue distribution Development of business mix Actions Net sales in CHFm – Successfully overcompensated the phasing +11% 1,272 1,230 out of vaccine business after Covid-19 for Drug Products 1,102 412 – Continuous improvement
Slide 24: Resilience through diversification
Resilience through diversification Our customer and revenue mix promotes stability and future growth 1 Client diversification1 2 Product diversification1 Top product 5% Small & mid pharma Large pharma 64% Clients 36% Products Products 2-10 26% Others 69% no cluster risks within customer base 2 servi
Slide 25: Well invested network and stringent investment process
Well invested network and stringent investment process support long-term growth and capturing new opportunities Enhancing asset efficiency comes first Evaluation of projects Allocating investments to the best node Capacity Hameln 1 demand (DE) Minden 1 − Individual business cases Nantong (CN) (DE)
Slide 26: Our investments enable us to capture future growth
Our investments enable us to capture future growth opportunities Following strong investments in 2021-23, Capex is expected to converge towards historical levels in the future Barcelona (ES) Evionnaz (CH) Minden (DE) Schlieren (CH) − New Development Center for − New research and development − New la
Slide 27: Structured net working capital management
Structured and sustainable net working capital management expected to free up significant capital Payment to Delivery of Expected customer Actual customer Raw material order Delivery of raws supplier products payment payment ILLUSTRATIVE Inv. Production Inv. Days inventory outstanding Reduce Reduce
Slide 28: Moderate leverage provides financial headroom
Moderate leverage provides sufficient financial headroom to conduct further acquisitions Development of net debt Comments 2.0x 1.5x 1.4x 1.3x1 − In the past, Siegfried has successfully executed its growth strategy without 407 419 the need for a capital raise while 389 maintaining a conservative leve
Slide 29: Investments in growth create scale and opportunity set
Investments in growth create the scale and the opportunity set required for further value creation Growth Dividends − Targeted organic expansion investments − Disciplined pay-out ratio enabling future growth − Committed dividend program − Value accretive M&A in line with − Growth in dividend per sha
Slide 30: Siegfried's journey goes on
Siegfried’s journey goes on Continuously delivering profitable growth Investing in our global network and executing value-adding M&A Positive mid-term outlook confirmed − Delivering our strategy EVOLVE + − Continued profitable growth − Optimizing our portfolio of projects, at or above market (exclud
Slide 31: Sustainability at Siegfried
Sustainability at Siegfried 31 |
Slide 32: Sustainability actions into a competitive advantage
We translate our sustainability actions into a competitive advantage Focus on environmental sustainability to drive operational efficiency Progressing on ESG goals and focusing Focus on customers to provide more sustainable products and solutions on deliv ering v alue for all stakeholders Focus on i
Slide 33: Sustainability embedded in governance structure
Accountability and responsibility for sustainability is embedded firmly in our governance structure Sustainability is one of our core values Siegfried’s sustainability organization Accountability and responsibility Board of Directors & Executive Committee − Corporate Sustainability Board (CSB) estab
Slide 34: Operational efficiency and sustainability work hand-in-hand
Operational efficiency Sustainable products #strongestteam Operational efficiency and sustainability work hand-in-hand Sustainability Operational efficiency Footprint reduction Process optimization Resource efficiency = cost efficiency − Global energy consumption reduction − Re-design of API synthet
Slide 35: Global energy management: c. 10% energy saved
Operational efficiency Sustainable products #strongestteam Global energy management: c. 10% energy saved relative to 2021 Group-wide electricity savings projects bearing fruits Increasing share of renewable electricity Electricity savings in % vs. 2021 baseline Share of renewable electricity (%) 13%
Slide 36: Delivering on commitments to lower carbon footprint
Operational efficiency Sustainable products #strongestteam Delivering on our commitments to lower our carbon footprint Siegfried is on track to validate near-term and net zero targets with SBTi in 2024 On track to achieve our targets Increasing focus on Scope 3 Focus areas for 2025 and beyond Scope
Slide 37: Sustainable process development at Siegfried
Operational efficiency Sustainable products #strongestteam Customer offering – sustainable process development at Siegfried Step-by-step analysis of product-specific ecological footprint to identify reduction opportunities Focus on areas supporting green chemistry principles Customer offering: Ecolo
Slide 38: Making API production more sustainable
Operational efficiency Sustainable products #strongestteam Selected examples: Deploying our expertise to make the production of API more sustainable Saving up to 50% raw materials Enhancing API production Reducing waste up to 15 times with second-generation processes through distillation with pervap
Slide 39: Building the strongest team: safe and supportive environment
Operational efficiency Sustainable products #strongestteam We focus on building the strongest team: working in safe and supportive environment Integrating people Promoting diversity Enhancing health & safety Acting with integrity 47% Share of women in management positions of revenue-generating mySTO
Slide 40: Unique, differentiated, competitive employer
Operational efficiency Sustainable products #strongestteam Siegfried is a unique, differentiated, and competitive employer Siegfried employs 3,900 employees across 7 countries We produce safe drugs, ensuring the continuity of treatment for millions of patients worldwide Purpose A workplace that − Si
Slide 41: Siegfried operates with the highest levels of integrity
Operational efficiency Sustainable products #strongestteam Siegfried operates with the highest levels of integrity Integrity at Siegfried Incidence of integrity cases below average Cases per 100 FTE Comprehensive group-wide integrity program 2.0 − Publicly available Code of Business Conduct − Mandat
Slide 42: It is our team that makes the difference
It is our team that makes the difference every day and brings us forward 42 |
Slide 43: Insights into our DS & DP Clusters
Insights into our DS & DP Clusters 43 |
Slide 44: Well-positioned to capture growth in the CDMO market
We are well-positioned to capture growth potential in the growing and diversified CDMO market Our Drug Substances offering Global CDMO market Our Drug Products offering Global market: c. $150bn Small molecules grow ing at 7 – 8% y oy Oral solids − A leading global network of 7 sites − Two large-scal
Slide 45: Drug Substances | Small Molecules
Drug Substances | Small Molecules: Siegfried is a leading player in the single largest segment in the CDMO universe Market outlook estimates ($bn) Key market trends Siegfried position and offering CAGR Classical API − Strong pipeline and healthy share − More than 150 years experience HPAPI +5-7% of
Slide 46: Robust innovation pipeline of small molecule candidates
Robust innovation pipeline and high number of approvals of small molecule drug candidates will drive sustainable growth Pharma pipeline products 2024 by technology and phase FDA novel drug approvals 13,495 5,659 5,684 2,532 59 New 8% 55 16% 53 modalities/ 22% 17% 50 17 48 CGT 45 46 13 17 37% 41 10 1
Slide 47: Small and mid-sized players drive small molecule pipeline
Small and mid-sized players increasingly drive small molecule pipeline CDMO support in high demand as smaller companies often lack in-house development and manufacturing Small molecule pipeline by company type and phase Implications on go-to-market model Pre-clin - Ph1 Ph2 - filed (# of projects, n=
Slide 48: Leveraging our leading network
Leveraging our leading network: Maximizing asset efficiency and reliability New Process research & Large-scale manufacturing network supported by business development centers local process excellence groups Network advantages Pre-clinical Focus on launch of newly Focus on run & deliver or clinical G
Slide 49: Drug Substances | Cell & gene therapy: DINAMIQS
Drug Substances | Cell & gene therapy: DINAMIQS is venturing into a high growth market with high speed of innovation Market outlook estimates ($bn) Key market trends Siegfried position and offering CAGR − CGT has high innovation potential − Acquisition and build-out of in treating a wide range of DI
Slide 50: DINAMIQS is an investment platform for growth
DINAMIQS is an investment platform for mid- to long-term growth in the cell & gene therapy market Bio-Technopark Zurich-Schlieren Investment platform to be built-out in line with market and technology trends − Attractive AAV vector development Capacity Expansion of GMP capacity manufacturing platfor
Slide 51: Drug Products
Drug Products 51 |
Slide 52: Drug Products | Wide range of services across dosage forms
Drug Products | Siegfried offers a wide range of services across all major finished dosage forms Finished dosage form Description Siegfried expertise − Tablets & capsules are the most prominent dosage forms due to BAR OSD & superior ease of use and cost-advantage inhalation − HiPo handling capabilit
Slide 53: Serving the most popular routes of administration
We are successfully serving the most popular routes of administration FDA novel drug approvals by route of administration How Siegfried addresses the market Orals 55 53 2 − Barberà and Hal Far are specialized in development, manufacturing and packaging of solid oral 1 50 2 3 1 dosage forms with dive
Slide 54: Oral solids manufacturing growth
Oral solids manufacturing is experiencing healthy growth rates on a large basis Market outlook estimates ($bn) Key market trends Siegfried position and offering CAGR − Trend towards challenging and − Extensive range of product difficult to manufacture offering, including high-potency, +4-6% 32-38 mo
Slide 55: Technological advances fuel demand for oral dosage forms
Technological advances fuel the demand for oral dosage forms Trends shaping the end-market for OSD & inhalation − Convenience, cost effectiveness and good therapy adherence make OSD the most preferred finished dosage form − Extensive demand for high-potency API (HPAPI) handling – mostly driven by gr
Slide 56: Ophthalmic drug manufacturing niche segment
Ophthalmic drug manufacturing is an attractive niche segment in the in a highly fragmented FDF universe Market outlook estimates ($bn) Key market trends Siegfried position and offering CAGR Ophthalmology − Increasing prevalence of eye − With two centers for ophthalmic Other FDF1 disorders like glauc
Slide 57: Injectables manufacturing market projections
Injectables manufacturing market shows strong projections driven by technological advancements Market outlook estimates ($bn) Key market trends Siegfried position and offering CAGR − Lack of in-house capabilities − High level of expertise in the (small- to mid-size pharma) and injectables market, co
Slide 58: Four major trends driving demand for injectables
Four major trends will continue to drive demand for injectable drug products Trends shaping the end-market for injectables − Aging population and rising prevalence of chronic conditions that involve injectable drugs for treatment − Growing importance of biologic drugs spanning across a broad technol
Slide 59: Well diversified network with operational leverage opportunities
Well diversified network with further operational leverage opportunities New Process research & Large-scale manufacturing network supported by business development centers local process excellence groups Network advantages Solid Dosage Forms − Expansion of development services facilitates seamless B
Slide 60: Clear roadmap upgrading our network offering
We have a clear roadmap upgrading our network offering to meet customer requirements Technology Outlook Affected sites Actions Tablets, MAL BAR − Reduce unit cost by increasing utilization of large-scale asset capsules base Inhalation capsules BAR − Selectively invest in adjacent technologies − Use
Slide 61: EVOLVE + and the team implementing the strategy
EVOLVE + and the team implementing the strategy EVOLVE + Broaden Grow existing core Enter and grow new areas technological offering Small molecules (DS and DP) DS antibodies Advanced production End-to-end offering of DS and DP Cell & gene therapy (CGT) Strategic technologies choices Oral / inhalatio
Slide 62: Thank you for your attention
Siegfried | Thank you Tor your attention