Slide 1: Gerresheimer – A Leading Partner for the Pharma & Life Science Industry
Gerresheimer – A Leading Partner for the Pharma & Life Science Industry Eigenkapitalforum Deutsche Börse AG Frankfurt, November 11, 2008 Hans-Jürgen Wiecha, CFO 0
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or
Slide 3: Investment summary: defensive growth stock
Investment summary: defensive growth stock Strong focus on Pharma & Life Science Industry with favorable growth drivers Leading market positions in attractive niche markets High barriers to entry due to regulatory environment Long-lasting relationships with blue-chip customers Very limited R&D expos
Slide 4: Gerresheimer at a glance
Gerresheimer at a glance Consolidated net sales FY 2007: EUR 957.7m Tubular Glass Plastic Systems Moulded Glass Life Science (Plastic Drug Delivery and (Injectable Glass and Systems) Systems) Research Net sales: EUR 271.2m Net sales: EUR 299.7m1 Net sales: EUR 318.8m EUR 72.2m Adj. EBITDA margin: 24
Slide 5: Gerresheimer is a global player
Gerresheimer is a global player Region Plants Employees Europe 20 5,802 Americas 14 3,171 Asia 6 1,325 Total 40 10,298 As of August 31, 2008 Headquarters Tubular Glass Plastic Systems Moulded Glass Life Science Research 4
Slide 6: Highly attractive fundamental market drivers
Highly attractive fundamental market drivers Fundamental market Impact on Demand drivers for Gerresheimer Products drivers GX Rising need for Rising demand for Primary Pharmaceutical pharmaceutical Packaging and Drug Delivery solutions products + Accelerating pace in Growth in biotech drugs drug dev
Slide 7: Gerresheimer's markets display highly attractive growth rates
Gerresheimer's markets display highly attractive growth rates Global Primary Pharmaceutical Packaging Demand Market Development 31.8 Products CAGR 2006-2016 GX Presence USD bn Other Primary 4.9% Containers Glass Bottles & 1.3% 23.7 Jars CAGR 06-16 IV Containers 4.1% +6.3% Prefillable Inhalers 10.2%
Slide 8: Well-diversified blue-chip customer base
Well-diversified blue-chip customer base Net sales to Top 50 customers (FY 2007) Pharma & Life Science Other EUR m Cumulative share in % 301 60% 56% 51% 43% 31% 114 73 50 38 Top 10 11-20 21-30 31-40 41-50 Gerresheimer has close long-term relationships …with limited dependence on individual with lead
Slide 9: Gerresheimer provides its Pharma & Life Science customers with solutions across all key product categories
Gerresheimer provides its Pharma & Life Science customers with solutions across all key product categories Tubular Glass Plastic Systems Life Science Division (Injectable Glass and (Plastic Drug Delivery and Moulded Glass Research Systems) Systems) Other Plastic Diabetes OTC liquids Glass Glass Phar
Slide 10: Leading market positions in attractive niche markets
Leading market positions in attractive niche markets Tubular Glass Plastic Systems Life Moulded Division (Injectable Glass (Plastic Drug Delivery Science and Systems) and Systems) Glass Research Inha- Diabetes OTC Liquids Glass Other Plastic Product Tubing Syringes Injectables Packaging lation Diagn
Slide 11: High barriers to entry support strong market positions
High barriers to entry support strong market positions Technological factors Start-up factors Regulatory environment (FDA & EMEA Proven track record is a prerequisite authorities, Pharmacopeia reference High investment requirements standards, GMP – Good Manufacturing Adoption of technological know-h
Slide 12: Gerresheimer's growth strategy is based on three pillars
Gerresheimer’s growth strategy is based on three pillars Acquisitions Growth Main areas: Above- projects -Primary Pharmaceutical market Packaging -Drug Delivery growth -Diagnostics rate Base growth New products/tech- -Medical Device Systems nologies at existing -Life Science Research Benefit from 6.
Slide 13: Key metrics prove financial stability
Key metrics prove financial stability Q3 as of Q3 as of FY 2007 as of EUR m Aug 31, 2008 Aug 31, 2007 Nov 30, 2007 Equity 480.2 491.5 -2,3% 499.9 Equity ratio in % 33.6 34.2 34.8 Net working capital1 205.9 187.0 +10.1% 179.8 in % of LTM net sales 19.7 21.6 18.8 Net financial debt2 437.8 414.3 +5.7%
Slide 14: Secured long-term financing structure; liquidity reserves through EUR 175m committed revolver
Secured long-term financing structure; liquidity reserves through EUR 175m committed revolver Debt/cash positions in EUR m1 Interest rate Due by Net financial debt 437.8 Bond 126.0 7.9%; Fixed coupon 2015 Long-term 5.7%; Hedged 100% 2012 / 2013 bank debt 232.0 until Sep 2010 55bps over Euribor/Libor
Slide 15: Confirmation of Guidance FY 2008
Confirmation of Guidance FY 2008 Growth rate 9-11% Net Sales Mid 19% Adj. EBITDA margin Expected investments of Capex EUR 105m – EUR 110m Ongoing market observation for Portfolio value-accretive M&A transactions optimization 14
Slide 16: Financial Calendar 2008 / 2009
Financial Calendar 2008 / 2009 February 17, 2009 Full Year Results 2008 April 2, 2009 Interim Report 1st Quarter 2009 April 29, 2009 Annual General Meeting July 15, 2009 Interim Report 2nd Quarter 2009 October 15, 2009 Interim Report 3rd Quarter 2009 15
Slide 17: Investor Relations Contact Details
Investor Relations Contact Details Phone: +49 211 6181 – 257 Fax: +49 211 6181 – 121 E-mail: gerresheimer.ir@gerresheimer.com Please visit our IR website: www.gerresheimer.com/ir 16
Slide 18: Q3 2008 with further profitable growth
Q3 2008 with further profitable growth Sound net sales growth of 7.2% to EUR 268.0m (at constant FX rate: +10.2%); Again all four divisions show increase in sales Adjusted EBITDA grew by 14.1% to EUR 50.3m Adjusted EBITDA margin expansion of 120 bps to 18.8% Net income of EUR -22.8m impacted by writ
Slide 19: Group: Sales and earnings development on a high level
Group: Sales and earnings development on a high level Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q3 2008: 18.8% rate: 10.2% Q3 2007: 17.6% Net sales growth of 10.2% before +7.2% FX rate effects fueled by strong 268.0 demand for pharma and cosmetic 2
Slide 20: Tubular Glass: RTF syringes continue to drive top line
Tubular Glass: RTF syringes continue to drive top line Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q3 2008: 24.6% rate: 19.1% Q3 2007: 25.0% RTF syringes post growth rate of 54% vs. Q3 2007 +14.0% 77.6 Continued sales increase 68.1 in American and Ch
Slide 21: Plastic Systems: Strong sales in core areas
Plastic Systems: Strong sales in core areas Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q3 2008: 17.5% rate: 5.5% Q3 2007: 16.7% Double-digit sales growth in +6.2% Medical Plastic Systems Segment 82.7 87.8 driven by strong demand in Inhalation, Diabe
Slide 22: Moulded Glass: Market growth rate outperformed again
Moulded Glass: Market growth rate outperformed again Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q3 2008: 20.8% rate: 7.7% Q3 2007: 19.1% Above market rate growth thanks to positive sales trend in +5.0% US and European market for 83.7 pharma bottles
Slide 23: Life Science Research: Successful quarter with margin jump
Life Science Research: Successful quarter with margin jump Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q3 2008: 12.7% rate: +26.4% Q3 2007: 8.7% Margin uplift of 400 basis points created by good +10.1% progress in integration and 20.8 22.9 streamlini
Slide 24: Net income impacted by potential book loss from intended sale of TPS
Net income impacted by potential book loss from intended sale of TPS EUR m Q3 2008 Q3 2007 Adjusted EBITDA1 50.3 44.1 Restructuring expenses + one-off income and -0.2 9.0 expenses EBITDA 50.5 35.1 Depreciation and fair value amortization 28.4 24.1 Book loss from disinvestment 33.0 0.0 Profit from op