Siegfried Holding Ag · SIX:SFZN
Siegfried — FY2021 Earnings Presentation
25 slides from Siegfried's earnings presentation, Feb 23, 2022
Slide 1: Siegfried creates opportunities for long-term growth
Investing in our global network: Siegfried creates opportunities for long-term growth Media and analyst conference on full year 2021 – 23 February 2022
Slide 2: Safe harbor statement
Safe harbor statement This document is solely for use in connection with the Neither this document nor any copy of it may be presentation held by Siegfried Holding AG. It is furnished taken or transmitted into the United States or distributed, to you for your information and you may not reproduce it
Slide 3: Creating opportunities
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 3
Slide 4: Risen to the next level: sales beyond CHF 1 billion
Risen to the next level: For the first time in our history, Siegfried achieves sales beyond CHF 1 billion – profitability further expanded In 2021, Siegfried once more delivered both, strong growth and higher margins › Strong growth: Net sales up to CHF 1 102.4m (+30.5% and +30.3% in LC) – despite a
Slide 5: 2021: seized opportunities and withstood challenges
Risen to the next level: For the first time in our history, Siegfried achieves sales beyond CHF 1 billion – profitability further expanded In 2021, we – as a global team – once more seized opportunities and withstood challenges › Integration and transformation of the two new Spanish › Successful deb
Slide 6: All businesses growing
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 6
Slide 7: Robust growth delivered
Robust growth delivered Net sales split 2021 CHF million 2021 2020 Change Drug Substances 656.0 647.8 +1.3% Drug Products 446.4 197.2 +126.4% Total 1 102.4 845.1 +30.5% (+30.3% in LC) › Net sales grew by +30.3% in Local Currencies (LC) › All businesses growing › Drug Products grew stronger due to th
Slide 8: Reconciliation for 2021: From Swiss GAAP FER to Core results
Reconciliation for 2021: From Swiss GAAP FER to Core results CHFm Comments 214.8 207.2 200 Adjustments to Core EBITDA -7.6 Current net interest Foreign Discount rate change pension plans 150 124.4 Integration / restructuring costs -82.8 100 7.2 95.3 Adjustments to Core net profit -36.3 Current net i
Slide 9: Expanding profit margins on all levels
Expanding profit margins on all levels CHFm CHFm 1’200 300 1’102.4 1’000 239.3 845.1 207.2 800 200 177.5 149.4 600 124.4 400 100 94.3 95.3 72.5 200 21.0% 21.7% 17.7% 18.8% 11.2% 11.3% 8.6% 8.6% 0 0 Net sales Core Gross profit Core EBITDA Core EBIT Core Net profit 2020 2021 Margin in % 9
Slide 10: Robust financials 2021: Margin expansion despite higher costs
Robust financials 2021: Margin expansion despite higher costs of doing business CHF million 2021 2020 Comments Core results Net sales 1 102.4 845.1 Core Cost of goods sold -863.1 -667.6 › Expansion of Core Gross profit and Core Gross profit margin Core Gross profit 239.3 177.5 Core Marketing and sal
Slide 11: Improvement in operating cash flow
Improvement in operating cash flow – laying the foundations for investments into further growth CHF million 2021 2020 Comments Operating cash flow before changes in NWC 210.7 153.4 Change in NWC -91.0 -38.6 › Significant increase of Operating cash flow before Operating cash flow 119.7 114.8 changes
Slide 12: Capital allocation framework
Capital allocation framework: A strong balance sheet provides the financial flexibility required to execute our strategy EVOLVE Strong top Invest in organic growth – in line with strategy Support line growth › Expansion CapEx in capacity and technologies Strategy EVOLVE M&A – Core and beyond Profita
Slide 13: Driving organic investments
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 13
Slide 14: Siegfried's journey since 2010
Siegfried’s journey since 2010: We walked our talk and delivered on our strategy and growth aspirations Progressing key metrics since 2010 Net sales EBITDA1 People # Sites Sales split Stock price (2010 – today) CHFm CHFm CHF 1,102 207 3,637 11 80% 60% DS 314 3 37 696 20% DP 40% 2010 2021 2010 2021 2
Slide 15: Strengthen our core with organic investments and use M&A
We will continue to strengthen our core by continued organic investments and use M&A to enter into adjacencies and beyond Grow existing core Add adjacencies Enter new areas › Enhance value proposition to our › Diversification into new CDMO › Long-term expansion into high growth customers and outgrow
Slide 16: Expanding our capabilities and capacities
Expanding our capabilities and capacities to support long-term profitable growth Organic investments Portfolio management Mergers & Acquisitions › Expand development and › Allocate high value capacity › Acquire idle capacity with commercial capacities to margin accretive products attractive business
Slide 17: New R&D center in Evionnaz (CH)
Building the most competitive network: New R&D center in Evionnaz (CH) Expansion of drug substances launch capabilities › High-end chemical and analytical R&D facilities and kilo lab capacities › Consolidation of all on-site development activities in one location plus expansion › Energy efficiency m
Slide 18: New large-scale production plant in Minden (DE)
Building the most competitive network: New large-scale production plant in Minden (DE) Expansion of drug substances capacities › Up to 100 m3 additional reactor capacity › Technological and operational “blueprint” for all future investments: “Best practices” from decades of manufacturing experienc
Slide 19: Portfolio management: Enhance profitability of our portfolio
Portfolio management: Enhance profitability of our portfolio, while unlocking capacity for future business Network profitability 1 2 Product margin structure Network profitability and return on capital Product profitability’s across the entire portfolio Portfolio management Margin management and cus
Slide 20: Investing in digital capabilities
Investing in digital capabilities: Pushing digital technologies to further leverage the expertise and quality of our teams SAP S4 HANA roll-out Separation of IT & OT1 Chemometrics Global roll-out of S4/HANA Upgrading of our IT / OT infrastructure, Acceleration of development enhancing operational ef
Slide 21: Building the strongest team: We invest in our people
Building the strongest team: We invest in our people Value Award Team Siegfried Siegfried Academy Value Awards Great Workplace › Extending Siegfried’s › Strengthening our culture › Creating a work environment Academy curriculum › Celebrating success, outstanding where people can grow and › Addressin
Slide 22: We do not only think about tomorrow, but far beyond
We do not only think about tomorrow, but far beyond Siegfried started its ESG journey Cross-functional ESG Commitment: Siegfried’s carbon years ago: Governance Board sponsored footprint to be reduced by 50% › Code of Business Conduct by CEO and supervised by BoD until 2030 compared to 20201 › Global
Slide 23: Siegfried's ambition and 2022 outlook
Siegfried’s ambition: Consistently deliver profitable growth by investing in the global network and executing value adding M&A › Topline growth at least in line with CDMO market › Active portfolio management › Operational and pricing excellence › Investments in global network – adding technologies a
Slide 24: Creating opportunities
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 24
Slide 25: Annual General Meeting / Half-Year Reporting
Annual General Meeting Half-Year Reporting 13 April 2022 18 August 2022