Sartorius AG · XETR:SRT
Sartorius — German Equity Forum Fall 2010
36 slides from Sartorius's conference presentation, November 2010
Slide 1: German Equity Forum Fall 2010
Platzhalter Bild German Equity Forum Fall 2010 Frankfurt | Main; November 22 - 24, 2010 Andreas Wiederhold, Team Leader Treasury & Investor Relations
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 • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results and Outlook 2010 • Appendix
Slide 4: Sartorius Runs Two Divisions
Sartorius Runs Two Divisions Biotechnology Division: Mechatronics Division: • Total solution provider for • Total solution provider of laboratory and biomanufacturing process weighing equipment • Focus on single-use technology • The No. 2 worldwide • Market-leading position in filtration, • Becoming
Slide 5: Sartorius Group Structure
Sartorius Group Structure Other Sartorius AG Shareholders 100% approx. 75% approx. 25% Sartorius Mechatronics Sartorius Stedim Biotech Group page 5
Slide 6: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results and Outlook 2010 • Appendix
Slide 7: 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 8: Products and Solutions Along BioPharma's Process Chain
Products and Solutions Along BioPharma´s Process Chain Media Preparation Fermentation Cell Harvest | Buffer Prep. Vol. Reduction Service program: plant survey, optimization, validation, training Transfer | Capturing | Form & Fill Viral Clearance Storage Polishing Service program: plant survey, optim
Slide 9: Strong Trends Fuel Growth
Strong Trends Fuel Growth Global Trends • Aging population in western countries Pharma Market • Hundreds of million + • Average growth ~5% p.a. additional patients in developing economies • Diseases of civilization page 9
Slide 10: Sustainable Development of the Global Pharma Market
Sustainable Development of the Global Pharma Market In billions of US$ Size and Growth of the Global Pharma Market 975+ • Strongest growth expected from the 4% to 7% “pharmerging markets*”: - huge populations with rising 800 disposable incomes, - changing mix of generic and 600 innovative products,
Slide 11: Strong Trends Fuel Growth
Strong Trends Fuel Growth Global Trends • Aging population in western countries Pharma Market • Hundreds of million + • Average growth ~5% p.a. additional patients in developing economies + Trends towards Biotech • Diseases of civilization • MAbs + vaccines dominate Biopharma Market key fields in ph
Slide 12: Biopharma Increases its Portion of the Global Pharma Market
Biopharma Increases it’s Portion of the Global Pharma Market Portion of Biopharma within the Global Pharma Market • Today, biotech within the pharma market 2014: represents approx. 17% of sales, this is supposed to increase to ca. 23% by 2014. 23% • Biotech sales are set to grow 62% between 2009 and
Slide 13: Strong Trends Fuel Growth
Strong Trends Fuel Growth Global Trends • Aging population in western countries Pharma Market • Hundreds of million + • Average growth ~5% p.a. additional patients in developing economies + Trends towards Biotech • Diseases of civilization • MAbs + vaccines dominate Biopharma Market key fields in ph
Slide 14: 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 15: Market Position vs. Competition
Market Position vs. Competition Filters Bioreactors Fluid management Market size ~ €750mn ~ €300mn ~ €200mn Market position Among the top 3 Market leader Market leader Main competitors Millipore NBS, Applikon Thermo Fisher Pall ABEC, ... ATMI GE Millipore Thermo Fisher Source: own estimates; in our
Slide 16: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results and Outlook 2010 • Appendix
Slide 17: Total solution provider of laboratory and process weighing equipment
Total solution provider of laboratory and process weighing equipment Full-liner of weighing equipment and control technology Number 2 in weighing technology worldwide Global sales, service and production network page 17
Slide 18: From a Weighing Specialist to an Application Expert
From a Weighing Specialist to an Application Expert • Increasing focus on monitoring and control of critical process parameters in the food and pharmaceutical industry • Build-up of a comprehensive product portfolio with process analytical technologies and software solutions • Fast and low-risk expa
Slide 19: Growing Demand for Inline Analytical Technologies
Growing Demand for Inline Analytical Technologies • Shifting of quality control procedures from the laboratory the to production line • Integration of weighing and control technology as well as data management into production processes Source: SDI Study (2005) page 19
Slide 20: Market Overview
Market Overview Laboratory business Industrial business Market size €300mn – 400mn €1.5bn - 2.0bn Market growth ~ 2% - 3% ~ 5% Main competitor Mettler Toledo Mettler Toledo Source: own estimates; in our specific market segments page 20
Slide 21: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results and Outlook 2010 • Appendix
Slide 22: Sartorius Group's Performance within the first 9 Months 2010
Sartorius Group’s Performance within the first 9 Months 2010 In millions of €, unless otherwise specified 9-month 2010 9-month 2009 Order Intake (currency adj. growth) 508.3 (+9.0%) 454.8 Sales Revenue (currency adj. growth) 482.3 (+5.9%) 444.7 Underlying* EBITA (Margin) 58.9 (12.2%) 43.9 (9.9%) Und
Slide 23: Considerable Increase in Order Intake
Considerable Increase in Order Intake In millions of € +11.8% 454.8 508.3 Currency-Adjusted Growth: 500 • Group: +9.0% 450 400 • Biotechnology: +6.4% +9.1% 330.9 350 • Mechatronics: +14.1% 300 303.4 Biotechnology: 250 • Double-digit growth rates with single-use 200 products in Asia | Pacific and Nor
Slide 24: Sales Revenue Growth Reported by Both Divisions
Sales Revenue Growth Reported by Both Divisions In millions of € +8.5% 482.3 Currency-Adjusted Growth: 444.7 450 • Group: +5.9% 400 • Biotechnology: +4.6% +7.0% 318.8 350 • Mechatronics : +8.5% 300 298.0 250 Biotechnology: 200 • Equipment orders are partly not yet reflected 150 +11.4% by sales reven
Slide 25: Sales Revenue by Region – Biotechnology
Sales Revenue by Region – Biotechnology According to customers’ location in millions of € const. fx -2.2% • As expected, development in Europe was restrained due to one-time orders in 2009 related to H1N1 vaccines. const. fx: +13.0% • Business development in Europe not satisfying const. fx +17.6% Eu
Slide 26: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics According to customers’ location const. fx +7.3% in millions of € • Significant positive sales revenue growth achieved in all regions • Strong development in Europe in Q3 const. fx: +5.7% const. fx +10.4% North America Europe Asia | Pacific const. fx +26.1% Oth
Slide 27: Underlying EBITA
Underlying* EBITA In millions of € 58.9 +34.1% 55 Underlying* EBITA Margin: 50 43.9 • Group: 12.2% (prev. year: 9.9%) 45 • Biotechnology: 15.7% (prev. year: 15.5%) 40 +8.1% 50.1 • Mechatronics: 5.4% (prev. year: -1.6%) 35 30 46.3 • Positive development mainly due to profitable 25 growth in both divi
Slide 28: Underlying Earnings per Share Strongly Increased
Underlying* Earnings per Share Strongly Increased In € • Underlying* net profit after minority interest: 1,50 1.50 €26.4mn (prev. year: €13.9mn) +90.8% • Unadjusted net profit after minority interest: 1,25 1.25 €20.3mn (previous year: -€7.0mn) 1,00 1.00 0,75 0.75 1.55 0,50 0.50 0.81 0.25 0,25 0,000
Slide 29: Key Financial Figures
Key Financial Figures Sept. 30, 2010 Dec. 31, 2009 Equity Ratio 38.7% 38.9% Net Debt (in millions of €) 226.3 224.7 Gearing 0.7 0.7 Net Debt to Underlying* EBITDA 2.3 2.6 Interest Coverage 13.8 8.6 • Even though we implemented the share buyback program for SSB S.A. in Q2, the equity ratio and net de
Slide 30: Outlook 2010
Outlook 2010 Sales Growth Underlying EBITA Margin (currency-adj.) Improvement of around Sartorius Group Slightly above 5% 2.5 percentage points Biotechnology Around 5% Around 16% Mechatronics Around 7% Around 6% • Management further forecasts a significantly positive operating cash flow. page 30
Slide 31: Thank you very much for your attention.
Platzhalter Bild Thank you very much for your attention.
Slide 32: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results and Outlook 2010 • Appendix
Slide 33: Strong Global Presence
Strong Global Presence Sales Production | Production and Sales page 33
Slide 34: 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 35: Financial Calendar
Financial Calendar • January 17, 2011 Presentation at the Cheuvreux German Corporate Conference in Frankfurt/M., Germany • February 2011* Publication of preliminary full-year figures for 2010 • March 2011 Annual press conference in Goettingen, Germany • April 20, 2011 Annual Shareholders' Meeting *
Slide 36: 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