Siegfried Holding Ag · SIX:SFZN
Siegfried — FY2023 Earnings Presentation
24 slides from Siegfried's earnings presentation, Feb 20, 2024
Slide 1: Siegfried continues to deliver profitable growth
Siegfried continues to deliver profitable growth Full-Year Results 2023 Zofingen, 20 February 2024
Slide 2: Safe harbor statement
Safe harbor statement This document is solely for use in connection with the presentation held by Siegfried Holding AG. It is furnished to you for your information and you may not reproduce it or redistribute to any other person. No representation or warranty, express or implied, is made to, and no
Slide 3: Siegfried continues to deliver profitable growth
Siegfried continues to deliver profitable growth Strong growth of underlying business – overcompensating for the phasing-out of vaccines business - Net sales CHF 1.272 billion (+6.3% increase versus prior year in local currencies, LC) - Core EBITDA of CHF 273.3 million ahead of prior year (CHF 272.5
Slide 4: Siegfried benefits from sustainable fundamental trends and our strong focus on execution
Siegfried benefits from sustainable fundamental trends and our strong focus on execution – beating temporary headwinds Pricing Energy Capital Portfolio & cost savings discipline diversifi- discipline cation Increasing complexity of new molecular Inflation Energy Financing Destocking entities crisis
Slide 5: Financial Update
Financial Update 5 | Siegfried FYR 2023
Slide 6: FY 2023: Profitable growth – delivered
FY 2023: Profitable growth – delivered Strong growth of underlying business – overcompensating for the phasing-out of vaccines business Net sales split FY 2023 Change FY 2023 vs FY 2022 CHF million FY 2023 FY 2022 Change Drug Substances 860.0 753.7 +14.1% (+16.8% in LC) Drug Products 411.5 475.8 -13
Slide 7: Reconciliation for FY 2023
Reconciliation for FY 2023 From Swiss GAAP FER to core results CHFm Adjustments to core EBITDA 300 Core numbers / core adjustments 19.8 273.3 - Transactional costs (CHF 1.4m) 253.4 250 - Restructuring projects costs (CHF 2.1m) 191.9 200 - Discount rate effect on foreign pension plan (CHF 11.9m) -81.
Slide 8: Continued profitable growth in a challenging macro environment
Continued profitable growth in a challenging macro environment Resilience supported by business model, portfolio diversification and operational management CHFm +14.6% Comments 1,300 1,271.5 FY 2020 FY 2021 FY 2022 FY 2023 CAGR - High growth rate for net sales – even higher in LC (17.0%) 1,200 - Sus
Slide 9: Strong underlying business growth
Strong underlying business growth Vaccines business not only compensated but overcompensated Coronavirus vaccines business Low single-digit % FY 2023 vs FY 2022 6.3% - Growth of net sales of 6.3% confirms the overcompensation of the phased-out vaccines business with BioNTech ≥ Market - Adjusting for
Slide 10: Resilience through diversification
Resilience through diversification Diversity of our customer and revenue bases promotes stability and future growth Customer diversification Life-cycle diversification Product diversification Top product [5%] Top customer [10-20%] Customer 2 [6%] Pre-clinical / phase 1 Phase 2 and 3 [5-10%] Products
Slide 11: FY 2023: Strong profitability protected
FY 2023: Strong profitability protected Despite phasing out of above-average profitable vaccines business CHF million FY 2023 FY 2022 Comments Net sales 1 271.5 1 229.5 Core cost of goods sold -951.1 -910.6 - Total absolute SG&A stable at CHF 133.5m Core gross profit 320.4 318.9 (2022:132.3m), decli
Slide 12: Significant improvement in operating cash flow
Significant improvement in operating cash flow CHF million FY 2023 FY 2022 Comments Operating cash flow before changes in NWC 255.0 276.1 Change in NWC -46.4 -133.8 - Substantial increase of operating cash flow and free Operating cash flow 208.6 142.3 cash flow Purchase of PPE and intangibles (net)
Slide 13: Sustainability is one of our five core values
Sustainability is one of our five core values Good progress with ambitions to be an ESG leader in the CDMO market Steps Energy Renewable Lost time Carbon footprint towards our target electricity accidents commitment3 ambition -10% 71% -11% -50% Target achieved: total energy 71% of our electricity co
Slide 14: Capital allocation framework for long-term value creation
Capital allocation framework for long-term value creation A strong balance sheet provides the financial flexibility required to execute our strategy Invest in organic growth – in line with EVOLVE strategy: Strong top line growth - Expansion investments in capacity and technologies - Investments in c
Slide 15: Outlook
Outlook 15 | Siegfried FYR 2023
Slide 16: Strategy EVOLVE: We strengthen our core and open doors beyond
Strategy EVOLVE: We strengthen our core and open doors beyond Further growth opportunities through organic investments and M&A Grow existing core Add adjacencies Enter and grow new areas - Small molecule DS and DP - Formulation and aseptic fill - DS Antibodies & finish of large molecules - Complex c
Slide 17: Delivering upon our strategy EVOLVE: Grow existing core
Delivering upon our strategy EVOLVE: Grow existing core Expanding our development and manufacturing capacities and capabilities Minden (DS, Germany) Evionnaz (DS, Switzerland) Barcelona (DP, Spain) New large-scale, world-class New Center of Excellence for New Center of Excellence for production plan
Slide 18: Siegfried's organic growth is well supported by a strong development pipeline
Siegfried’s organic growth is well supported by a strong development pipeline and healthy approval numbers of small molecules New drug approvals by US FDA Development candidates in pipeline1 59 15,494 14,920 53 55 50 46 17 48 45 13 17 7,308 7,906 41 10 14 12 12 37 11 27 15 6,266 6,364 2 22 42 40 7 3
Slide 19: Siegfried's technological breadth supports a rich funnel of new business opportunities
Siegfried’s technological breadth supports a rich funnel of attractive new business opportunities for organic growth Strong small molecules pipeline of innovative drug candidates (Rx and Gx) - More than 10’000 small molecules (“NCE”) in development (pre-clinical to pre-approval) - Increased share of
Slide 20: Delivering upon our strategy EVOLVE: Enter and grow new areas
Delivering upon our strategy EVOLVE: Enter and grow new areas Acquisition of DINAMIQS as nucleus for mid to long-term growth in the cell & gene therapy CDMO segment Bio-Technopark Zurich-Schlieren Investment platform to be built out in line with market and technology trends - Attractive AAV vector d
Slide 21: Siegfried's journey goes on: Continuously delivering profitable growth
Siegfried’s journey goes on: Continuously delivering profitable growth By investing in the global network and executing value-adding M&A Positive mid-term outlook confirmed: Continued profitable growth at or above market (excluding M&A), while stepwise expanding profitability – capital expenditures
Slide 22: Q&A
22 | Siegfried FYR 2023 Siegfried
Slide 23: Thank you for your attention
18 April 2024 Annual General Meeting 22 August 2024 H1 Results Thank you for 24 October 2024 your attention Capital Markets Day 23 | Siegfried FYR 2023
Slide 24: Learn more about Siegfried
Learn Download our Annual Reports Visit our investors portal Learn more about Siegfried’s offering more about Siegfried Read more Read more Read more 24 | Siegfried FYR 2023