Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Investor Day (May 2024)
35 slides from Sartorius's investor day presentation, May 16, 2024
Slide 1: Sartorius Stedim Biotech Capital Markets Day 2024
Sartorius Stedim Biotech Capital Markets Day 2024 May 16, 2024
Slide 2: Note
Note This presentation contains statements concerning the future performance of the Sartorius Group and Sartorius Stedim Biotech. 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
Slide 3: Vision & Strategy
Sartorius Stedim Biotech Vision & Strategy
Slide 4: Our path to further growth and value creation
Our path to further growth and value creation 4
Slide 5: Sustainability at the core of our business: Good health and well-being
Sustainability at the core of our business: “Good health and well-being” Sartorius mission We empower scientists and engineers to simplify and accelerate progress in life science and bioprocessing, enabling the development of new and better therapies and more affordable medicine. 5 Capital Markets D
Slide 6: Health is one of the most relevant global topics
Health is one of the most relevant global topics Growing and aging population Biologics gaining importance2 Significant market growth3 ~44% ~39% 9.5bn CAGR biopharma market ~21% World population in 20501 Over 65 years 2013-2022 ~0.6bn ~0.8bn >1.6bn 2013 2023 2028 ~10% 2013 2023 2050 2022-2027 Revenu
Slide 7: Scalable solutions for all biopharmaceutical modalities
Scalable solutions for all biopharmaceutical modalities Modalities Technologies Customer benefits Monoclonal antibodies Media & input materials Faster process Recombinant proteins Bioreactors | cell culture development technologies Vaccines More efficient Separation technologies manufacturing Gene t
Slide 8: Track record of profitable sales growth above market
Track record of profitable sales growth above market Sales CAGR Increase share of wallet by +18% addressing critical steps at customers ~€2.78bn Increase share of wallet by Solution offering addressing building critical steps on deep at customers Sales CAGR application know how Strong focus on
Slide 9: Fundamental trends strong and transparent
Fundamental trends strong and transparent 9
Slide 10: Strong market fundamentals, additional dynamics from new modalities
Strong market fundamentals, additional dynamics from new modalities ~23,100 biologics in development; Pillars of growth CAGRs 2022–20273 increasingly innovative and diverse pipeline1 Pharma market ~3-6% ~70% ~30% Biopharma market ~10% Other Advanced biologics therapies Biosimilars ~15% CGT ~20% Re
Slide 11: The life science industry is in a highly innovative phase
Breakthroughs at an ever- increasing pace offer hope for patients1 The life science industry is in a highly innovative phase Breakthroughs at an ever-increasing pace offer hope for patients1 1796 1818 1982 1986 2012 / 2017 2020 2023 Blood Recombinant Monoclonal Cell & gene mRNA CRISPR Vaccines produ
Slide 12: Integration of innovative technologies is a core competency
Integration of innovative technologies is a Sartorius Stedim Biotech’s core competency Acquisitions Cooperations Own Product Development1 of complementary and with customers, research institutes, in areas of core competencies differentiating technologies start-ups, and industry-leading experts 9 1,1
Slide 13: Consistent M&A strategy focusing on two defined areas
Consistent M&A strategy focusing on two defined areas Unique portfolio for Intensified technologies Advanced Therapies for downstream processing Biological WaterSep Danaher chromatography BIA Separations CellGenix (2020) (2020) Industries (2020) (2021) (2019) Albumedix Polyplus BIA Separations Novas
Slide 14: China-for-China strategy to balance opportunities and challenges
China-for-China strategy to balance opportunities and challenges 7 sites | ~450 employees Challenges Shanghai: Commercial hub & Geopolitical tensions operations Rise of local competitors Limited sales Beijing: Operations hub Stricter drug price regulation exposure1 Customer Interaction C
Slide 15: Numerous initiatives regarding carbon footprint and material consumption
Numerous initiatives regarding carbon footprint and material consumption plus further sustainability initiatives in implementation 2030 2045 ~10% p.a. Zero 100% Net zero ∅ reduction of CO2eq avoidable emissions2 electricity from emission intensity1 scopes 1-3 in scope 1 and 2 renewable sources emiss
Slide 16: Ambitious medium-term targets
Ambitious medium- term targets 16
Slide 17: Capitalizing on opportunities while managing temporary challenges and external risks
Capitalizing on opportunities while managing temporary challenges and external risks Challenges Strengths and Benefits Opportunities Strong integrated, scalable solution Robust risk profile of Life Science Changing order patterns of customers offering Tools segment within biopharma Customer-focused
Slide 18: Midterm outlook to 2028: Expect to continue outgrowing the market
Midterm outlook to 2028: Expect to continue outgrowing the market Sales revenue CAGR Low to mid-teens range to 2028 thereof ~1/5 from acquisitions Underlying EBITDA above 35 % margin in 2028 Margin target includes expenses for reduction of the company’s CO2 emission intensity of around 1% of sales M
Slide 19: Key takeaways: well positioned to continue profitable growth journey
Key takeaways: Sartorius Stedim Biotech is well positioned to continue its profitable growth journey Life Science Tools industry one of the Strong focus on innovation most attractive market segments in leadership in relevant application biopharma areas Support customers to decarbonize Clear strategy
Slide 20: Financial perspective
Sartorius Stedim Biotech Financial perspective
Slide 21: Profitability on robust level despite high business volatility
Profitability on robust level despite high business volatility 21
Slide 22: Four years of high volatility and limited visibility
Four years of high volatility and limited visibility; positive trends expected to improve gradually Fluctuation order intake +96% Q1 2021 vs. Q1 2020 -38% Q1 2023 vs. Q1 2022 Sales revenue ex Covid Covid-19 related sales Order intake Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 201
Slide 23: Market snapshot: This is what we see
Market snapshot: This is what we see Normalization continues; visibility remains Order intake currently no reliable clouded after Corona dynamics forward-looking indicator, particularly in quarterly perspective Changed customer behavior: smaller Healthy customer project pipeline equals orders in con
Slide 24: Guidance 2024 recap: Profitable growth with stronger H2 2024
Guidance 2024 recap: Profitable growth with stronger H2 2024 Sales revenue growth in cc Mid to high SD % Capex ratio ~13% ul. EBITDA margin > 30% Net debt / ul. EBITDA Slightly <2.5 For financial modeling Depreciation 170mn to 180mn € Financial result -150mn to -160mn € Normalized tax rate ~26% 24 C
Slide 25: Expecting positive revenue growth from Q2 onwards
Expecting positive revenue growth from Q2 onwards H1 2023 H2 2023 Q1 2024 H1 2024e H2 2024e Revenue growth + low to in cc yoy - 18.5% - 19.0% - 6.7% - low SD high teens Book-to-bill 0.81 0.97 1.01 ~0.95 ~1.0 ul. EBITDA margin 29.7% 26.9% 28.6% >28% >32% Revenue growth assumptions Book-to-bill assump
Slide 26: Focus on robust and agile position for future growth
Focus on robust and agile position for future growth in a competitive environment During the pandemic After the pandemic Focus on delivery ability Focus on efficiency and innovation Innovations for accelerated drug development Rapid capacity expansion and efficient bioproduction Significant increase
Slide 27: Margin peak in 2021 driven by artificially low costs
Margin peak in 2021 driven by artificially low costs; volume, mix and adjusted cost base to contribute to further margin expansion Share of cost positions Expected contribution 2013 2021 2023 2024e 2028e Sales 100% 100% 100% Cost of sales -50% -45% -51% Positive contribution S&D -21% -13% -15% Sligh
Slide 28: Efficiency program to right-size organization and improve 2024 margins
Efficiency program to right-size organization and improve 2024 margins Expected sustainable cost reductions and contributors Contributors Reorganization & efficiency Right-sizing of structures Other functional costs Process improvements Manufacturing-related Direct & indirect procurement ~85mn €
Slide 29: Further margin expansion until 2028 driven by economies of scale and mix
Further margin expansion until 2028 driven by economies of scale and mix effects Economies of scale Product mix effects On average higher gross margins of consumables Invest projects that lead to significant cash- compared to equipment outflows in past years now ready to operate Gross margins
Slide 30: Resilient and scalable growth platforms
Resilient and scalable growth platforms 30
Slide 31: Capacity investments and resilient global setup to support organic growth
Capacity investments and resilient global setup to support organic growth Global resilience Aubagne, France Songdo, South Korea Freiburg, Germany Redundant capacities ~€474mn Capex 2023 Operational excellence ~13% Capex ratio 2024e Customer proximity Göttingen, Germany Yauco, Puerto Rico 31 Capital
Slide 32: Current infrastructure plus ongoing expansion projects to support growth until 2028
Current infrastructure plus ongoing expansion projects to support growth until 2028 Capex Capex composition in millions of €; ratio in % 60 474 431 50 Major projects ~x% 324 40 30 159 136 Capitalized R&D ~2% 20 17.1 ~13 Regular expansion ~3% 10 11.2 12.3 9.4 8.3 0 Maintenance ~3% 2019 2020 2021 2022
Slide 33: Fast deleveraging post M&A enabled by healthy cashflows
Fast deleveraging post M&A enabled by healthy cashflows Net debt / underlying EBITDA Operating cashflow Polyplus CAGR DHR Novasep LS assets Chroma. ~+27% Purification WaterSep Albumedix BIA CellGenix Biological Umetrics Industries Xell 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021
Slide 34: Key takeaways: Our growth ambition is based on strong financials
Key takeaways: Our growth ambition is based on strong financials Margin ambition mainly driven by Right-sizing of the organization in efficiency measures (2024) dedicated areas; focus on process and economies of scale (2028) improvements to reduce NWC Investments in resilient infrastructure Strong i
Slide 35: Q&A
Q&A SARTORI