Bachem Holding Ag Class B · SIX:BANB
Bachem Holding Ag Class B — FY2021 Earnings Presentation
28 slides from Bachem Holding Ag Class B's earnings presentation, Mar 18, 2022
Slide 1: Full Year Results 2021 call details
Date | March 18, 2022 Location | Bubendorf/Zoom Call Name | Thomas Meier, Alain Schaffter
Slide 2: Q&A instructions
Write to us in the Q&A section anytime and / or use the “Raise Hand” function. At the end of the presentation we will have time for questions. This call will be recorded and playback available on bachem.com. 2 Bachem FY Results 2021
Slide 3: Presenters: CEO, CFO, Head Group Communication
Thomas Meier Alain Schaffter Daniel Grotzky (Moderator) CEO CFO Head Group Communication 3 Bachem FY Results 2021
Slide 4: Agenda
1. Full Year Results 2021 Thomas Meier 2. Financial Review 2021 Alain Schaffter 3. Outlook 2022-2026 Thomas Meier 4. Q&A All 4 Bachem FY Results 2021
Slide 5: Thomas Meier
Thomas Meier 5 Bachem FY Results 2021
Slide 6: Full year 2021 highlights
Growth Profitability • Sales of CHF 503.2m (+25.2%*), exceeding half a • Profitable growth: billion Swiss francs o EBIT: CHF 128.9m / margin 25.6% • Excellent CMC development business o Net income: CHF 114.7m / margin 22.8% • Capital increase with net proceeds of CHF 571.6m • Proposal to increase di
Slide 7: Key financials 2021 vs 2020
2021 2020 Change CHF Change LC Sales (in CHF million) 503.2 402.0 + 25.2% + 26.8% EBITDA (in CHF million) 157.4 122.6 + 28.4% + 32.0% in relation to sales 31.3% 30.5% EBIT (in CHF million) 128.9 96.7 + 33.4% + 37.9% in relation to sales 25.6% 24.0% Net income (in CHF million) 114.7 78.1 + 46.9% in r
Slide 8: Sales by business segment
Change in in CHF million 2021 Change in CHF Sales share local currency Research & Specialties 44.8 + 34.1% + 32.5% 8.9% CMC Development 173.1 + 50.3% + 48.7% 34.4% Commercial API 285.3 + 15.0% + 13.3% 56.7% Total sales 503.2 + 26.8% + 25.2% 100.0% 8 Bachem FY Results 2021
Slide 9: Peptides: market trends and Bachem update
Market Trends GLPs and GLP/GIP for weight loss First approval of a complement C3 inhibitor for autoimmune & inflammatory Convenient formulations (i.e. oral, nasal) gaining traction Cosmetic applications Bachem Update Drove investments in manufacturing capacity at all sites Commissioned a
Slide 10: Oligonucleotides: market trends and Bachem update
Market Trends Expansion from rare diseases to large patient populations i.e cardio vascular Developing novel technologies to manufacture large quantities Manufacturing demand outstrips industry-wide capacities Bachem Update Excellent synergies with peptide manufacturing i.e. upstream and dow
Slide 11: NCE pipeline with 170 projects
• Healthy NCE pipeline with 170 projects Phase No. of projects % (all originator, not generics) Preclinical 73 43% • Pipeline development focus on quality Phase 1 43 25% over quantity Phase 2 43 25% Phase 3 11 7% Total 170 100 11 Bachem FY Results 2021
Slide 12: Alain Schaffter
Alain Schaffter 12 Bachem FY Results 2021
Slide 13: Key financials 2021 vs 2020
2021 2020 Change CHF Change LC Sales (in CHF million) 503.2 402.0 + 25.2% + 26.8% EBITDA (in CHF million) 157.4 122.6 + 28.4% + 32.0% in relation to sales 31.3% 30.5% EBIT (in CHF million) 128.9 96.7 + 33.4% + 37.9% in relation to sales 25.6% 24.0% Net income (in CHF million) 114.7 78.1 + 46.9% in r
Slide 14: EBIT bridge 2020 to 2021
+160bps 0.2 25.6 0.3 0.0 1.1 24.0 EBIT 2020 COGS M&S R&D G&A /other income EBIT 2021 14 Bachem FY Results 2021
Slide 15: Net income and operating cash flow
• Net proceeds of CHF 571.6 million from capital increase in October 2021. • Taken necessary steps to avoid interest charges on cash. • Prior year comparison of operating cash flow is impacted by one-off effects in 2020. 36.6 24.0 -17.5 65.7 114.7 141.0 115.0 89.2 117.0 97.6 78.1 23.5 Net income Net
Slide 16: Cash flow and net change in cash
-43.5 141.0 -29.3 -25.7 97.6 11.5 0.1 65.7 -116.8 437.2 -352.3 Operating CF Change in Change in Change in Operating CF CAPEX Other Financing CF Currency Net change before change receivables inventory payables investing CF impact in cash 2021 in NWC 2021 and accruals and accruals 16 Bachem FY Results
Slide 17: Balance sheet and liabilities
107.3 25.0 710.9 1 298.5 22.3 177.5 (14%) 235.2 (33%) 475.7 60.0 (67%) 1121.0 20.0 (86%) 20.0 Liabilities Dec. 31, 2020 Equity Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2021 Current loan Ingro Finanz AG Current loans bank Non-current loans bank 17 Bachem FY Results 2021
Slide 18: CAPEX and depreciation
130.7 76.4 50.4 38.6 32.7 28.4 23.1 25.9 20.9 24.9 26.0 19.3 19.0 13.7 10.4 2017 2018 2019 2020 2021 CAPEX in CHF million Depreciation in CHF million CAPEX in % of sales 18 Bachem FY Results 2021
Slide 19: Thomas Meier
Thomas Meier 19 Bachem FY Results 2021
Slide 20: Mission and medium- and long-term goals
Mission: The world-leading specialist in peptides and oligonucleotides with an unmatched market position, sales north of CHF one billion and strong profitability for independence. We attract and develop the most engaged and skilled workforce in our field. Medium-term goals: 2022-26 Long-term goals:
Slide 21: Trend favors specialists; demand for TIDES
Trend favors specialists Demand for “TIDES” Bachem value proposition • Outsourcing trend in • Complex molecules require • Deep technology & quality Pharma and Biotech specialist knowledge understanding • Pandemic confirms CDMO • New applications & • Unique mix of focus, experts value proposition for
Slide 22: Geopolitics, inflation, supply chain, interest rates
Geopolitics Inflation • No material customer exposure and footprint to • Swiss-based operations better hedged against Ukraine/Russia wage inflation • Europe and US manufacturing base • Contract clauses allow price adjustments with customers Supply chain Interest rates • Ability to re-integrate eleme
Slide 23: Adding to the world's manufacturing capacity for TIDES
Adding to the world’s manufacturing capacity for TIDES “Tides FABrication Plant” Additional Manufacturing Site (Bubendorf) • Shortlist for Northwestern Switzerland • Oligonucleotide & peptide facility • Final object by end 2022 / early 2023 (50-50 split planned) • Planned to go online by end of • St
Slide 24: Outlook 2022-2026
Growth Profitability • Expected average sales of 15% per year • EBIT growth by percentage ahead of sales 2022-2026 (CAGR) during the 5-year period Capacity Portfolio • Deliver capacity for a rapidly growing demand • Oligonucleotides and peptides that make a • Investments across global manufacturing
Slide 25: Outlook 2022
Growth Profitability • Appraisal of 2022 annual • Heightened macroeconomic uncertainty outlook at half-year • Ongoing productivity measures • Higher R&D, M&S costs expected Capacity Portfolio • Major capacity expansions come to bear in • Year-on-year fluctuations in commercial 2nd half of 5-year per
Slide 26: Q&A
BACHEM 26 Bachem FY Results 2021
Slide 27: Questions? Send an e-mail
Question? Send an e-mail to… ir@bachem.com media@bachem.com 27 Bachem FY Results 2021
Slide 28: Forward-looking statements
This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other things, str