Sartorius AG · XETR:SRT
Sartorius — Investor Presentation (February 2023)
59 slides from Sartorius's investor presentation, February 2023
Slide 1: Simplifying Progress – Investors Presentation
Simplifying Progress Investors Presentation February 2023
Slide 2: Agenda
Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 2022 Results | FY 2023 Guidance 2
Slide 3: Partner of Life Science research and the biopharmaceutical industry
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 therapies busine
Slide 4: Sartorius at a glance
Sartorius at a glance ~€4.17bn Two divisions focused on attractive biopharma and life science Sales revenue 2022 markets ~18% Sales CAGR1 2012-2022 33.8% EBITDA margin2 2022 Sales 2022 80% 20% 60+ Bioprocess Solutions Division ~€4.17bn Lab Products & Services Division Locations worldwide, HQ in Gött
Slide 5: Products and solutions span from lab to production
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
Attractive market environment offers strong growth opportunities Growing and aging population Biologics are gaining importance2 9 billion people by 20501 World population over age 60 in 2050 Sales share of biologics in 2028 >2bn ~41% ~10% CAGR biopharma market 2022 – 2026 World population over 60 in
Slide 7: Sustainable profitable growth
Sustainable profitable growth +15.0% 4100 Sales CAGR ~18% +49.3% ~€4.17bn 59.5 EBITDA1 margin +13.7pp 57.5 3900 +30.2% 55.5 3700 53.5 3500 51.5 +14.8% 3300 49.5 3100 +13.2% 47.5 2900 45.5 2700 2500 +9.3% 43.5 2300 +18.2% 41.5 +16.0% 39.5 2100 34.1 33.8 37.5 +12.6% ~€1.30bn 1900 35.5 1700 29.6 +8.8%
Slide 8: The U.S. and Asia are a focus of the regional growth strategy
The U.S. and Asia are a focus of the regional growth strategy Sales development by region Sales share 2022 | CAGR 2012-2022 Markets ▪ U.S.: Highly innovative market, further potential for market share gains Asia | Pacific ▪ Asia: Strong growth in China, Korea and other Asian countries ~26% | ~20% ▪
Slide 9: Investing for long-term growth
Investing for long-term growth France Finland CAPEX Aubagne Kajaani, Helsinki China in millions of €; ratio in % 100.0 600 Lourdes Beijing 523 USA 90.0 407 500 Marlborough 80.0 70.0 400 Ann Arbor 400 60.0 South Korea 50.0 226 240 300 Songdo Germany 40.0 12.3 200 10.3 11.8 12.5 12.5 30.0 20.0 Götting
Slide 10: Expansion projects proceeding according to plan
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 Aubagne, France
Slide 11: M&A strategy – adding innovation, enhancing focus
M&A strategy – adding innovation, enhancing focus Essen Life Science assets Intellicyt ViroCyt BioScience from Danaher ALS 2016 2017 2019 2020 2021 2022 kSep Umetrics Biological BIA WaterSep CellGenix Xell Chrom. assets Albumedix Industries Separations from Novasep Portfolio: Complementary products
Slide 12: Recent acquisitions strengthen both divisions in key areas
Recent acquisitions strengthen both divisions in key areas Bioanalytics Downstream processing Cell and gene therapies Solutions for automated analysis, Chromatography systems for smaller Cell culture media and components for the selection and isolation of cells with biomolecules and innovative syste
Slide 13: Running one year ahead of our mid-term plan
Running one year ahead of our mid-term plan Recent business development vs. mid-term growth trajectory 7000 7000 6500 CAGRs ~20%1 6000 6000 5500 ~13% ~32% ▪ Sales revenues in 2021 and 2022 substantially 5000 5000 impacted by direct and indirect Covid effects 4500 4000 4000 ▪ Thus growth 2019-2022 si
Slide 14: Ambition 2025
Ambition 2025 BPS LPS Sartorius Group Sales ~€4.2bn ~€1.3bn ~€5.5bn revenue previously ~€3.8bn previously ~€1.2bn previously ~€5.0bn EBITDA ~36% ~28% ~34% margin unchanged unchanged unchanged ▪ 2025 revenue targets do not contain any potential Covid sales ▪ Margin targets include expenses for reduct
Slide 15: Climate targets set to reduce CO2 emission intensity until 2030
Climate targets set to reduce CO2 emission intensity until 2030 CO2 emission intensity ▪ Ambitious targets spanning scope 1 , 2 and 3; also compared to Emissions in proportion to sales (g CO2/€) other initiatives ▪ Gross reduction of emissions is first priority; additional Reduction by ~10% p.a. com
Slide 16: Agenda
Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 2022 Results | FY 2023 Guidance 16
Slide 17: Bioprocess Solutions (BPS): solution provider for biomanufacturing
Bioprocess Solutions (BPS): solution provider for biomanufacturing ~€3.33bn Sales revenue 2022 35.7% EBITDA margin1 2022 Filtration Purification ~75% Recurring revenues ~90% Sales share biopharma Fermentation Fluid management 1 Excluding extraordinary items 17
Slide 18: Track record of dynamic growth; balanced regional revenue profile
Track record of dynamic growth; balanced regional revenue profile BPS sales revenue, € in millions; EBITDA margin1 in % Sales revenue share by geography, 2022 vs. 2017 CAGR2 26.2% 2022 3,326.5 60.0 3,100.0 55.0 2,600.0 Americas EMEA 50.0 ~37% (~35%) ~38% (~41%) 2,100.0 45.0 2017 1,600.0 40.0 35.7 1,
Slide 19: Generating revenue throughout the lifecycle of a biopharma drug
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 large-scale manufac
Slide 20: Covering most steps of the biopharmaceutical manufacturing process
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 recognized DOWNSTREAM su
Slide 21: Integrated services and technologies for all types of biopharmaceuticals
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 relevant; strong p
Slide 22: New modalities are coming to market and offer growth opportunities
New modalities are coming to market and offer growth opportunities Protein-based therapies Viral-based therapies Advanced therapies 56% 27% 17% ▪ mAbs ▪ Viral vectors for gene ▪ Cell therapy ▪ Bi-/Multi-specifics therapy (e.g., iPSC, MSC) ▪ Bioconjugates | ADCs ▪ Virus and viral vector vaccines ▪ Ge
Slide 23: Competitive product offering
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. Danaher | Cytiva P
Slide 24: U.S. remains most important market; China with highest growth rates
U.S. remains most important market; China with highest growth rates Biologics market growth forecast U.S. CAGR U.S. ~119 ~167 Europe ~9% U.S. Europe ~46 ~58 China ~6% Europe China ~38 ~€250bn ~€365bn ~67 ROW ~15% China ROW ~47 ~72 2020 2024 Source: Evaluate Pharma, July 2021; Daedal Research, Decemb
Slide 25: Biosimilars: Strong growth, big opportunities
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 strong growth ▪ Si
Slide 26: Pioneer and leader in the growing single-use technology market
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-contamination ▪ High
Slide 27: Single-use allows manufacturers to mitigate investment risks
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 single-use facil
Slide 28: Analytical technologies to improve process economics and safety
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 automation ▪ Allow
Slide 29: High innovation dynamics in Biopharma
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 biopharmaceuticals gene
Slide 30: Limited dependence on individual accounts
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 2022, € in millions 1000 ~51% ~55% 800 ~46% ~38% 600 ~25% 400 Cumulative share 200 0 Top 10 11 to 20 21 to 30
Slide 31: Four strong pillars drive above-average growth of BPS
Four strong pillars drive above-average growth of BPS Pharma market CAGR 3-6% ~20% Organic CAGR 1 Biopharma CAGR ~10% market Single-use Double-digit penetration growth Market Esp. in North share gains America 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 CAGR 2014 to 2022, excluding FX effects and
Slide 32: Agenda
Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 2022 Results | FY 2023 Guidance 32
Slide 33: Lab Products & Services (LPS): premium supplier for Life Science research
Lab Products & Services (LPS): premium supplier for Life Science research and quality control labs ~€850mn Portfolio includes lab instruments, consumables, software and services Sales revenue 2022 ~15% Sales CAGR1 2017-2022 Bioanalytics Lab instruments 26.2% EBITDA margin2 2022 ~50% Recurring revenu
Slide 34: Continuous transition to a higher growth and profitability profile
Continuous transition to a higher growth and profitability profile LPS sales revenue, € in millions; EBITDA margin1 in % Growth drivers CAGR2 15.4% Sales & Marketing pivot to 900.0 848.0 30.0 attractive segments and regions 800.0 26.2 28.0 700.0 26.0 Attractive portfolio mix coupled with M&A 600.0 2
Slide 35: Focus on attractive Life Science market; regional profile increasingly balanced
Focus on attractive Life Science market; regional profile increasingly balanced Sales revenue share by segment, 2022 vs. 2017 Sales revenue share by geography, 2022 vs. 2017 2022 2022 Life Science Applied research research Americas EMEA ~58% (~42%) ~42% (~58%) ~36% (~25%) ~34% (~48%) 2017 2017 of wh
Slide 36: Strong market position in essential laboratory product categories
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 Lab balances Mi
Slide 37: Bioanalytical tools to address pain points of our customers
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 molecule developme
Slide 38: Overview of bioanalytical portfolio
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 proteins ▪ Merck ▪ Per
Slide 39: Solutions complement each other, optimize successive workflows
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-reactive candidates in
Slide 40: Total addressable market increased since 2019
Total addressable market increased since 2019 Total addressable market of LPS ▪ Market opportunity increased through expanded product offering (e.g., addition of 2022 Octet and CellSelector platforms, specialty media, GMP cytokines and OEM ~€7.6bn diagnostic membranes) ▪ Higher exposure to faster gr
Slide 41: Agenda
Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 2022 Results | FY 2023 Guidance 41
Slide 42: Strong double-digit sales growth, margin close to high prior-year level
Strong double-digit sales growth, margin close to high prior-year level Sartorius Group FY 2021 FY 2022 in % in % cc1 in millions of € unless otherwise specified Sales revenue 3,449 4,175 +21.0 +15.0 Order intake 4,268 4,007 -6.1 -10.1 Underlying EBITDA2 1,175 1,410 +20.0 Underlying EBITDA2 margin i
Slide 43: High growth across all geographies; Americas expand the fastest
High growth across all geographies; Americas expand the fastest Americas EMEA Asia|Pacific Sales by Region € in millions € in millions € in millions in % +21.4% +9.0% +16.2% EMEA Americas 1,551 ~ 37% ~ 37% 1,544 1,411 1,080 1,141 897 €4,175m Asia|Pacific FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 20
Slide 44: Bioprocess Solutions: Double-digit increase in sales revenue and earnings
Bioprocess Solutions: Double-digit increase in sales revenue and earnings; order intake continues to normalize Order Intake Sales Revenue Underlying EBITDA & Margin € in millions € in millions € in millions -14.0% cc +15.9% cc +20.5% -10.4% +22.0% 3,484 3,326 3,123 2,727 1,188 1200 1000 986 44 42 80
Slide 45: Lab Products & Services: Dynamic growth fueled by Bioanalytics business
Lab Products & Services: Dynamic growth fueled by Bioanalytics business Order Intake Sales Revenue Underlying EBITDA & Margin € in millions € in millions € in millions +7.4% cc +11.5% cc +17.6% +12.8% +17.4% 885 848 784 722 222 189 26.1% 26.2% FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 ▪ Acquis
Slide 46: Strong cash flow, high investments, growth-related build-up of working capital
Strong cash flow, high investments, growth-related build-up of working capital Sartorius Group FY 2021 FY 2022 in % in millions of € unless otherwise specified Underlying EBITDA 1,175 1,410 +20.0 ▪ Higher inventories to support supply security Extraordinary items -41 -60 -48.3 effect cash flow Finan
Slide 47: Very sound balance sheet and financial KPI
Very sound balance sheet and financial KPI Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA Dec. 31, Dec. 31, Sartorius Group 2,500 4.0 2021 2022 2,000 3.0 Equity ratio in % 30.2 38.1 1,500 2.0 1,000 Net debt in millions of € 1,733 2,375 1.0 500 0 0.0 Net debt | underlying 1.5 1.7
Slide 48: Outlook 2023: moderate top-line growth due to demand normalization
Outlook 2023: moderate top-line growth due to demand normalization and low Covid business; strong market fundamentals fully intact Guidance 2023 1 Sales revenue growth (in %) Underlying EBITDA margin Sartorius Group Low single-digit Around prior-year level excluding Covid-related business High singl
Slide 49: Appendix
Appendix 49
Slide 50: Corporate responsibility & further financial information
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 FY 2022 natural resourc
Slide 51: Reasons to invest
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 Strong sustainability and sensitivity and consolidated revenues ESG positioni
Slide 52: Sartorius legal & operational structure
Sartorius legal & operational structure Sartorius Group legal setup Sartorius AG (~68.4m shares) Ordinary shares (~34.2m shares) Preference shares (~34.2m shares) Stock market listed in Germany1 ~55% Administered by executor ~72% Free float ~38% Bio-Rad Laboratories ~28% Bio-Rad Laboratories ~7% Fre
Slide 53: Share price performance
Share price performance 800% 600% Sartorius (pref.) 400% Sartorius (ord.) Sartorius Stedim Biotech 200% DAX MSCI Europe 0% Jan-19 Sep-19 Jan-20 Jan-21 Mar-20 Sep-20 Sep-21 Jan-22 Sep-22 Jan-23 Mar-19 May-19 Jul-19 Nov-19 May-20 Mar-21 May-21 Jul-20 Nov-20 Jul-21 Nov-21 Mar-22 May-22 Jul-22 Nov-22 IS
Slide 54: A sampling of the Bioprocess Solutions' product portfolio
A sampling of the Bioprocess Solutions’ product portfolio Filtration Purification Fermentation Fluid management 54
Slide 55: A sampling of the Lab Products and Services' product portfolio
A sampling of the Lab Products and Services’ product portfolio Lab balances | Lab water systems Bioanalytics Lab filtration | Microb. analysis Pipettes 55
Slide 56: Executive Board of Sartorius AG
Executive Board of Sartorius AG Joachim Kreuzburg, CEO René Fáber Rainer Lehmann, CFO Gerry Mackay Joined Sartorius in 1999 Joined Sartorius in 2002 Joined Sartorius in 19991 Joined Sartorius in 2015 Member of the Board since 2002 Member of the Board since 2019 Member of the Board since 2017 Member
Slide 57: Contacts and financial calendar
Contacts and financial calendar Petra Kirchhoff ▪ February 28, 2023 Head of Corporate Communications & IR Credit Suisse Global HC Conference | London +49.551.308.1686 petra.kirchhoff@sartorius.com ▪ March 1, 2023 Morgan Stanley Virtual Health Tech Conference | Virtual Meeting Petra Müller ▪ March 22
Slide 58: Disclaimer
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 actually materialize.
Slide 59: Scan or click here to visit our IR website
Scan or click here to visit our IR website.