Sartorius AG · XETR:SRT
Sartorius — Non-Deal Roadshow (March 2011)
38 slides from Sartorius's roadshow presentation, Mar 16, 2011
Slide 1: Roadshow, Paris | London March 16 | 17, 2011
Platzhalter Bild Roadshow, Paris | London March 16 | 17, 2011 Joachim Kreuzburg, CEO
Slide 2: Disclaimer
Disclaimer This presentation contains statements concerning the Sartorius Groups’ future performance. 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. This
Slide 3: Agenda
Agenda • Financial Performance in 2010 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects and Outlook for 2011 • Appendix
Slide 4: Sartorius Group's Performance in 2010
Sartorius Group’s Performance in 2010 In millions of €, unless otherwise specified 2010 2009 Order Intake (Growth) 681.1 (+10.7%) 615.1 Sales Revenue (Growth) 659.3 (+9.5%) 602.1 Underlying* EBITA (Margin) 85.5 (13.0%) 60.9 (10.1%) Underlying** EPS in € 2.29 1.22 Operating Cash Flow 96.0 143.4*** *
Slide 5: Considerable Increase in Order Intake
Considerable Increase in Order Intake In millions of € +10.7% 681.1 615.1 Currency-Adjusted Growth: 600 • Group: +7.5% 500 • Biotechnology: +5.0% +8.1% 442.3 • Mechatronics: +12.4% 400 409.2 Biotechnology: 300 • Single-use technologies continued to grow 200 above average. +16.0% 238.8 Mechatronics:
Slide 6: Sales Revenue Growth Reported by Both Divisions
Sales Revenue Growth Reported by Both Divisions In millions of € +9.5% 659.3 602.1 Currency-Adjusted Growth: 600 • Group: +6.4% 500 • Biotechnology: +5.1% +8.0% 432.6 • Mechatronics : +8.9% 400 400.4 Biotechnology: 300 Adjusted for the H1N1 vaccine base effect, 200 growth rate would be approx. 2.5
Slide 7: Sales Revenue by Region – Biotechnology
Sales Revenue by Region – Biotechnology According to customers’ location, in millions of € -2.8% Currency-Adjusted Growth: • Europe: -3.3% 200 • North America: +12.1% • Asia | Pacific: +25.4% 150 +17.7% • Strong double-digit sales growth in 100 North America and Asia | Pacific, mainly +35.0% driven
Slide 8: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics According to customers’ location, in millions of € +8.5% Currency-Adjusted Growth: 120 • Europe: +7.9% 100 • North America: +7.5% 80 • Asia | Pacific: +9.6% +18.5% 60 • Geographically balanced growth. +12.9% 40 +25.2% 20 0 Europe North Asia | Other America Paci
Slide 9: Underlying EBITA for the Sartorius Group Increased Significantly
Underlying* EBITA for the Sartorius Group Increased Significantly In millions of € 85.5 Group: 80 +40.4% • Underlying* EBITA margin: 13.0% (prev. year: 10.1%) 60.9 60 • Positive exchange rate effect of approx. 0.5 pp 70.2 +16.6% Biotechnology: 40 60.2 • Underlying* EBITA margin: 16.2% (prev. year: 1
Slide 10: Strong Increase in Underlying Earnings per Share
Strong Increase in Underlying* Earnings per Share In € +87.7% • Underlying* net profit after minority interest: €39.0mn (prev. year: €20.8mn) 2,00 2.00 • Unadjusted net profit after minority interest: €31.0mn (prev. year: -€7.3mn) 1,50 1.50 2.29 1,00 1.00 1.22 0.50 0,50 0,000 2009 2010 * Excluding e
Slide 11: Key Financial Figures
Key Financial Figures 2010 2009 Equity Ratio (in %) 40.5 38.9 Net Debt (in millions of €) 196.9 224.7 Gearing 0.6 0.7 Net Debt to Underlying* EBITDA 1.8 2.6 Interest Coverage 15.4 8.6 • Even though the Group spent €32.0mn on the SSB share buyback program, all key financial indicators have improved f
Slide 12: Agenda
Agenda • Financial Performance in 2010 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects and Outlook for 2011 • Appendix
Slide 13: Total Solution Provider for the Biopharmaceutical Industry
Total Solution Provider for the Biopharmaceutical Industry • We help our customers to produce biopharmaceuticals in short time, reliably and safely, at low costs, and with high flexibility • Most complete product and service portfolio along the biotech industry’s process chain • Focus on single-use
Slide 14: Most Complete Product Portfolio Along Biopharma's Process Chain
Most Complete Product Portfolio Along Biopharma´s Process Chain Media Preparation Fermentation Value Added Services Buffer Preparation Cell Harvesting Purification page 14
Slide 15: Strong Long Term Trends Drive Further Growth
Strong Long Term Trends Drive Further Growth Global Trends • Aging population in western countries Pharma Market • Hundreds of million + • Average growth 4-7% p.a. additional patients in developing economies + Trends towards Biotech • Diseases of civilization Biopharma Market • MAbs + vaccines domin
Slide 16: Increasing Pressure on Bio-Manufacturing Costs
Increasing Pressure on Bio-Manufacturing Costs* CoS by Category CoS by Unit Operation 12% 1% 3% 3% 3% 4% 7% 6% 48% 9% 25% 2% 44% 15% 8% 3% 7% Capital Charge 20L Seed Bioreactor Huge potential for 200L Seed Bioreactor Materials single-use techno- 2000L Production Bioreactor Consumables logies, especi
Slide 17: Single-use Technologies Will Become the Future Industry Standard
Single-use Technologies Will Become the Future Industry Standard + CAPEX reduction Market Penetration of Single-use Products in Potential Applications + Reduced cleaning costs | validation 100% + Downtime reduction, i.e. higher equipment utilization + Enhanced process performance = Reduction of life
Slide 18: Growth of Single-use Products Drives SSB's Margins Up
Growth of Single-use Products Drives SSB´s Margins Up Underlying EBITA Margin • Incremental gross margins of single-use 16% 16.2% products up to 80% and more 14% • EBITA margin of sales increase 2007 - 2010 15.0% 12% approx. 35% 13.2% 10% 10.9% 8% 6% 4% 2% 0% 2007* 2008 2009 2010 * pro forma page 18
Slide 19: Agenda
Agenda • Financial Performance in 2010 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects and Outlook for 2011 • Appendix
Slide 20: Strong Market Position of Lab Instruments Business
Strong Market Position of Lab Instruments Business • Global No. 2 • Complete product pyramid from premium to standard segment • Top technology and high quality products • Global sales and service organization • Broad customer base with focus on pharma | biopharma, food and academia page 20
Slide 21: Global Full-Liner of Industrial Weighing Equipment
Global Full-Liner of Industrial Weighing Equipment • Broad product portfolio from platform scales to checkweigher and tank & hopper solutions • High product quality and healthy gross margins • But relatively low market share in most geographies page 21
Slide 22: Mechatronics business strongly recovered in 2010
Mechatronics business strongly recovered in 2010 In millions of € +8.9%* • Strong recovery in both, lab and 225 industry, in all regions 14 15.3 • With significantly reduced breakeven 200 12 point back in robust profitability 175 226.7 10 • EBITA margin of sales increase almost 150 60% 125 8 201.7 1
Slide 23: Agenda
Agenda • Financial Performance in 2010 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects and Outlook for 2011 • Appendix
Slide 24: Further Strengthening of Global Sales & Marketing Organization
Further Strengthening of Global Sales & Marketing Organization Sales distribution 2010 in % of total Biotechnology Division Mechatronics Division ~40% ~85% €432.6mn ~15% ~60% €226.7mn Bioprocess Lab Instruments Biolab Industrial Weighing Implementation of cross-divisional Sales & Marketing respons
Slide 25: Consolidation of Production Sites for Future Growth of Biotech Division
Consolidation of Production Sites for Future Growth of Biotech Division • Consolidation of core competencies at dedicated sites (e.g. injection molding) • Membrane capacity expansion at headquarter in Germany • New site for equipment business in Germany • Concentration of U.S. production activities
Slide 26: Business Process Re-engineering
Business Process Re-engineering • Global business processes have been standardized and streamlined for future growth and strategic steps • ERP re-engineering started beginning of 2011 to optimally support the business processes page 26
Slide 27: Further Development of the Group Structure (1|2): Today's Status
Further Development of the Group Structure (1|2): Today’s Status Operational Other Shareholders Sartorius AG Mechatronics business approx. 25% approx. 75% Sartorius Stedim Biotech S.A. (SSB) 100% 100% SSB subsidiaries worldwide MT subsidiaries worldwide • Further development of the legal group struc
Slide 28: Further Development of the Group Structure (2|2): Planned Structure
Further Development of the Group Structure (2|2): Planned Structure Other Shareholders Sartorius AG approx. 25% approx. 75% 100% Sartorius Mechatronics Sartorius Stedim Biotech S.A. (SSB) as GmbH 100% 100% SSB subsidiaries worldwide MT subsidiaries worldwide Advantages • Robust dividend capability •
Slide 29: Biotech Product Innovations Focus on Single-use Technology (1|2)
Biotech Product Innovations Focus on Single-use Technology (1|2) • High volume disposable bioreactors • Flexible solutions for entire biomanufacturing steps page 29
Slide 30: Biotech Product Innovations Focus on Single-use Technology (2|2)
Biotech Product Innovations Focus on Single-use Technology (2|2) • Small volume single-use bioreactor with intelligent disposable sensors • New lab water system generation arium® pro • Continous performance improvement of filtration products page 30
Slide 31: New Mechatronics Products
New Mechatronics Products Further extension of Cubis micro balances portfolio Process analytical tools Technology expansion, e.g. NIR, refractometry page 31
Slide 32: Outlook for 2011
Outlook for 2011 Sales Growth Underlying EBITA Margin (const. fx) (const. fx) Sartorius Group 6% - 8% Around 14% Biotechnology 6% - 8% Around 17% Mechatronics 6% - 8% Around 8% • Management further forecasts a significantly positive operating cash flow. • Capex ratio expected to be around 7% due to
Slide 33: Thank you very much for your attention.
Platzhalter Bild Thank you very much for your attention. Joachim Kreuzburg, CEO
Slide 34: Agenda
Agenda • Financial Performance in 2010 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects and Outlook for 2011 • Appendix
Slide 35: Strong Global Presence
Strong Global Presence Sales Production | Production and Sales page 35
Slide 36: Facts about Sartorius Shares – Shareholding Structure
Facts about Sartorius Shares – Shareholding Structure Ordinary share Preference share 8,9 9 9 Administered by executor 50,1 Family owned 25 Bio-Rad Laboratories Inc. Free float 7 Own shares 91 ISIN Ordinary share: DE0007165607; preference share: DE0007165631 Market segment Prime Standard (technology
Slide 37: Financial Calendar
Financial Calendar • April 20, 2011 Annual Shareholders' Meeting in Goettingen, Germany • April 2011* Publication of first-quarter figures for 2011 * Tentative date page 37
Slide 38: Contacts
Contacts Andreas Wiederhold Henriette Meyer Team Leader Treasury & Investor Relations Treasury & Investor Relations Phone: +49.551.308.1668 Phone: +49.551.308.3232 Fax: +49.551.308.3153 Fax: +49.551.308.3153 E-mail: andreas.wiederhold@sartorius.com E-mail: henriette.meyer@sartorius.com Sartorius Cor