Slide 1: Investor Presentation October 2020
Investor Presentation October 2020
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: Agenda
Agenda 1 Gerresheimer at a Glance 2 Strategic Direction 3 Q3 Earnings Review 4 Outlook and Executive Summary 5 Market Environment 3
Slide 4: A leading partner for the global pharma and healthcare industry
A leading partner for the global pharma and healthcare industry Gerresheimer at a Glance Pharmaceutical solutions made of glass and plastics Primary packaging products and medical devices for storage, dosage and safe administration of drugs as well as packaging for the cosmetics industry 13.10.2020
Slide 5: Solid Financial Profile
Solid Financial Profile Gerresheimer at a Glance Gerresheimer Group (incl. headquarters) Revenues 2019 Adj. EBITDA 2019 Leverage at 3.2x EUR 1.40bn EUR 297m as of May 31, 2020 Plastics & Devices Primary Packaging Glass Advanced Technologies (P&D) (PPG) (GAT) Revenues 2019 Adj. EBITDA 2019 Revenues 2
Slide 6: Global Footprint and Solid Customer Base
Global Footprint and Solid Customer Base Gerresheimer at a Glance Global footprint Clearly identified revenues streams Delivering to 6% REVENUE SPLIT BY SECTOR 37 plants in 91 13% Pharma & Healthcare: 81% Cosmetics: 13% 15 countries countries over 6 Others: 6% continents 81% Over Supplying all REVEN
Slide 7: 15.5bn Products Produced Per Year
15.5bn Products Produced Per Year – Nearly 500 per Second Gerresheimer at a Glance SYRINGES PLASTIC BOTTLES PHARMA GLASS COSMETICS (INCL. CENTOR) BOTTLES ~ 400m pieces ~ 5.5bn pcs ~ 2.5bn pcs ~ 1bn pcs INJECTION VIALS AMPOULES INHALERS CARTRIDGES ~ 3bn pcs ~ 2bn pcs ~ 100m pcs ~ 1bn pcs 13.10.2020 I
Slide 8: Agenda
Agenda 1 Gerresheimer at a Glance 2 Strategic Direction 3 Q3 Earnings Review 4 Outlook and Executive Summary 5 Market Environment 8
Slide 9: Social and Macroeconomic Trends Fostering Growth
Social and Macroeconomic Trends Fostering Growth Strategic Direction Rise of chronic diseases Increasing access to healthcare Growth in urban population & aging population in Emerging Countries and upper society Increasing trend to self and New drugs especially Increase importance of individual medi
Slide 10: Clear Definition of Target Markets in Pharma & Healthcare
Clear Definition of Target Markets in Pharma & Healthcare PHARMA Product & Delivery Primary Marketing & VALUE Research Process Production Systems & Logistics Services CHAIN Packaging Sales Development Assembly HARDWARE Gx accessible market Gx strategic relevant market Filling machines Tools, Assembl
Slide 11: Gerresheimer is Operating in Large and Attractive Markets
Gerresheimer is Operating in Large and Attractive Markets Strategic Direction Drug Cosmetics Pharma Pharma Syringes Delivery Glass Glass1 Plastic Devices Estimated Market Size 2017² ~ 1.8 ~ 2.2 ~ 5.8 ~ 0.9 ~ 4.0 (in € bn) Market CAGR '17-’22² LOW SINGLE DIGIT MID SINGLE DIGIT (in %) The strategic re
Slide 12: Leading Market Positions in Attractive Niche Markets
Leading Market Positions in Attractive Niche Markets Strategic Direction PRIMARY DIVISION PLASTICS & DEVICES PACKAGING GLASS Ampoules, Plastic Inhalation Diabetes Syringe MG Pharma PRODUCT Packaging1 (DPI)2 Diagnostics3 Pens Systems (Type I) Vials, Cartridges EUROPE #1 #1 #2 #2 #2 #2 #3 NORTH AMERIC
Slide 13: We provide Solutions across all Key Product Categories
We provide Solutions across all Key Product Categories Strategic Direction DIVISION PLASTICS & DEVICES PRIMARY PACKAGING GLASS GAT OTC Liquids and Plastic Inhalation Diabetes Syringe MG Pharma TG PRODUCT Packaging (DPI)2 Diagnostics3 Pens Systems (Type I) Syrups Injectables Sensile Medical (Type II
Slide 14: Sound Financial Policy
Sound Financial Policy Strategic Direction ORGANIC INVESTMENT RATING & LEVERAGE Capex spend at ~8-10% of sales for Consider net financial debt to growth and maintenance projects adjusted EBITDA ratio of 2.5 as Controlled capacity extension appropriate for Gerresheimer Clear payback and IRR criteria
Slide 15: Agenda
Agenda 1 Gerresheimer at a Glance 2 Strategic Direction 3 Q3 Earnings Review 4 Outlook and Executive Summary 5 Market Environment 15
Slide 16: On Track: We Deliver on our Promises
On Track: We Deliver on our Promises Q3 Earnings Review: Key Take-Aways Q3 2020 Third quarter as expected: accomplishing growth despite Covid-19 Backend-loaded fiscal year: very strong Q4 ahead Financial highlights in Q3: Revenues of EUR 349m Organically +2.1% in core business1 Adjusted EBITDA of EU
Slide 17: Gx Biological Solutions Pushed Forward
Gx® Biological Solutions Pushed Forward Advanced Solutions for Biotechs Highly dynamic Gx® Biological Solutions The right product solutions market environment serving customers’ needs: The industry is witnessing a Gx® Biological Solutions: Serving biotech customers paradigm shift from small with the
Slide 18: Further Capacity Increase for Vials and Syringes Fully Ongoing
Further Capacity Increase for Vials and Syringes Fully Ongoing Gx as Reliable Partner for Pharma and Healthcare Growing injectables market as Clearly standing by Capacity increase to serve global mega trend our responsibility global demand Vaccination as global Assumption for Covid-19 Investments br
Slide 19: Accelerating Change - Virtual Capital Markets Day
Accelerating Change - Transforming Gerresheimer in Full Swing Update to follow at Capital Markets Day Virtual Capital Markets Day Time Section (CET) December 8, 2020 – 2:00pm Welcome fully virtual and interactive Our Growth Strategy – 2:05pm Leading in Health and Well-Being Delivery Solutions Update
Slide 20: Q3 2020 – Solid Basis Anticipating Very Strong Q4
Q3 2020 – Solid Basis Anticipating Very Strong Q4 P&L Overview (EUR m) Q3 2020 Q3 2019 YoY Analysis Organic growth of +2.1% in core business including temporary Covid-19 Revenues 349.2 358.6 0.4%1) one-time hit in cosmetics of a mid-single digit Euro amount Profitability increase due to good core Ad
Slide 21: Robust Core Business: Organic Growth Despite Covid-19
Robust Core Business: Organic Growth Despite Covid-19 Q3 2020 Divisions EUR m Organic Organic growth 52.1 growth 193.7 193.8 +4.3% 45.7 +13.5% — Strong growth in PPP and syringes, short-term phasing effects in MDS P&D — Margin improvement to 26.9% on the back of organic adj. EBITDA growth of 13.5% Q
Slide 22: Outperformance in Free Cash Flow
Outperformance in Free Cash Flow Cash Flow in Q3 2020 (EUR m) Q3 2020 Q3 2019 Change Analysis Adjusted EBITDA 75.0 72.2 2.8 Driven by good core business Focus on operational Working Capital Change in net working capital 4.7 -12.4 17.1 performance Net capex -28.8 -43.6 14.8 Supported by sale of Kuess
Slide 23: Leverage Stable – Promissory Note Agreement Signed
Leverage Stable – Promissory Note Agreement Signed End of Q3 2020: Financial Status NET FINANCIAL DEBT AND ADJ. EBITDA LEVERAGE NET FINANCIAL DEBT ACCORDING TO CREDIT AGREEMENT IN FORCE1) 976.0 980.7 In EUR m May 2020 Aug 2020 Revolving credit facility 360.2 365.5 3.2 3.2 Promissory loans (2017) 250
Slide 24: Agenda
Agenda 1 Gerresheimer at a Glance 2 Strategic Direction 3 Q3 Earnings Review 4 Outlook and Executive Summary 5 Market Environment 24
Slide 25: Very Strong Quarter Ahead
Very Strong Quarter Ahead Outlook Q4 2020 Mid to high-single digit growth P&D Support of phasing effects from Q3 High-single digit to double digit growth First delivery of Covid-19 vials PPG Innovation materializing: first sales in Gx® Elite Glass First recovery in cosmetics business Exploration of
Slide 26: Guidance Confirmed
Guidance Confirmed At Group level (FXN) FY 2020 Mid-term Mid-single Mid-single Revenue Growth digit growth digit growth Adjusted EBITDA ~21%1 ~ 23% Capex ~ 12% 8 - 10% (% of revenues) 13.10.2020 Investor Presentation 26
Slide 27: Focus on Growth
Focus on Growth Q3 2020: Core business on track Very strong quarter ahead For our long-term profitable growth journey we are securing new orders, additional capacities and leveraging market trends 13.10.2020 Investor Presentation 27
Slide 28: Executive Summary
Executive Summary ▪ Strong customers focus from the non-cyclical pharma and healthcare market with long-term growth prospects supported by megatrends ▪ Market-leading positions in attractive niche markets ▪ Robust business supporting stable operating margins through the cycle ▪ Good track record of
Slide 29: Agenda
Agenda 1 Gerresheimer at a Glance 2 Strategic Direction 3 Q3 Earnings Review 4 Outlook and Executive Summary 5 Market Environment 29
Slide 30: Current customer overview
Current customer overview 1 L‘Oreal Beiersdorf Teva Mylan Astra Bayer ABOUT 7% generated with our Top 1 customer P&G Sanofi Coty 35% of revenues generated with our Top 10 Pharma & Generics Merck customers in 2018 Roche GsK 48% of revenues generated with J&J our Top 20 Pharma & Generics Avon customer
Slide 31: … as well as in Cosmetics
… as well as in Cosmetics COSMETIC Product & Primary Delivery Marketing & VALUE Research Process Production Packaging & Systems & Logistics Services CHAIN Sales Development Decoration Assembly HARDWARE Filling machines CONSUMABLES Suppliers Plastic Moulded Glass Packaging Components Gx strategic rel
Slide 32: Underlying market growth
Underlying market growth Expected development of Pharma market volumes1 CAGR ’20-‘24 (in %) Medicine Generic standard standard units units2 Global 1.5% 1.9% Developed markets -0.3% 0.1% Pharmerging markets 2.6% 3.1% ROW 0.6% 0.9% Global volume growth ‘19 1.4% 2.6% 1. IQVIA (former Quintiles IMS) Jan
Slide 33: Financial Calendar 2020
Financial Calendar 2020 FINANCIAL CALENDAR December 8, 2020 Capital Markets Day February 18, 2021 Annual Report 2020 April 8, 2021 Publication 1st Quarter 2021 June 9, 2021 Annual General Meeting 2021 July 13, 2021 Interim Report 2nd Quarter 2021 October 12, 2021 Publication 3rd Quarter 2021 13.10.2
Slide 34: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions ABBREVIATIONS AND DEFINITIONS Adj. EBITDA Net income before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjus
Slide 35: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.