Cheuvreux 11th German Corporate Conference 2012 Frankfurt Main; January 17, Page 1

Transcription

1 Cheuvreux 11th German Corporate Conference 2012 Frankfurt Main; January 17, 2012 Page 1

2 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 is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantially from the expected ones. It is not planned to update our forward-looking statements. Throughout this presentation, differences may be apparent as a result of rounding during addition. Page 2

3 Agenda Company Profile and Strategy Biotechnology Division: Markets and Trends Mechatronics Division: Markets and Trends Acquisition of Biohit s Liquid Handling Segment Financial Performance 9M 2011; Guidance 2011 Page 3

4 Sartorius at a Glance Mechatronics ~34 % 2011E Sales > 700mn 1) Biotechnology ~66 % A world-leading supplier of laboratory and process technologies with strong worldwide presence Key Sartorius customers: biotech, pharma, chemical, food industries and academia Employees: approx. 5,000 persons 1) Based on current FY 2011 guidance Page 4

5 Leading Worldwide Market Positions Filtration amongtop 3 Fluid Management #1 Fermentation #1 Lab Weighing #2 Key Competitors Merck Millipore Thermo Fisher NBS (Eppendorf) Mettler Toledo Pall ATMI Applikon Merck Millipore ABEC GE Thermo Fisher Page 5

6 Proven Track Record with Alliances and Acquisitions Alliances & acquisitions support the strategy of profitable growth Significant extension of technology portfolio and product offerings Substantial extension of worldwide footprint Vivascience 2000 TC Tech Acquisitions Alliances LevTech ATMI Life Sciences Aseptic Technologies B. Braun Biotech International Omnimark Wave Biotech Toha Plast Stedim Biosystems Bayer Technology Services Metroglas Südpack Medica Schmidt + Haentsch Raumedic Dylog SAFC Biosciences TEWS Elektronik Corning NIR Online Biohit LH 2011 Page 6

7 Agenda Company Profile and Strategy Biotechnology Division: Markets and Trends Mechatronics Division: Markets and Trends Acquisition of Biohit s Liquid Handling Segment Financial Performance 9M 2011; Guidance 2011 Page 7

8 Sartorius Stedim Biotech: A Total Solution Provider for Biopharma We support the biopharma industry in producing drugs safely, timely and economically We provide the widest product and service portfolio along the biopharma process chain We hold global market leading positions in fermentation, fluid management and filtration We lead the market in single-use technologies Single-use ~75 % 2011E Sales > 460mn 1) Equipment ~25 % 1) Based on current FY 2011 guidance Page 8

9 The Widest Product Portfolio Along Biopharma s Process Chain Media Preparation Fermentation Buffer Preparation Cell Harvesting Value Added Services Purification Page 9

10 Strong Long-Term Trends Drive Further Growth Global Trends Aging population in western countries Increasing access to health care in developing economies Growing number of chronic and civilization diseases Trends in Biomanufacturing Higher yields, higher efficiencies in cell culture Increasing cost pressure Personalized medicine Pharma Market CAGR ) 3% -6% Biopharma Market CAGR ) 6% -9% Single-use Technologies Double-digit growth Highest growth in innovative segments, e.g. bioreactors, fluid management Sector Trends Patent expiries Healthcare reforms Decreasing R&D efficiency Trends toward Biotech Continued penetration in approved indications Label expansion Strong pipelines (e.g. mabs 2 ) Marketed Phase III reg. Phase II Phase I 1) IMS Institute of Healthcare Informatics. The Global Use of Medicines: Outlook Through ) DataMonitor Monoclonal Antibodies 2010, HC Slidepack 10/10 Page 10

11 Strong Value Proposition To Drive Future Single-Use Penetration Market Penetration of Single-use Products 1) CAPEX reduction Lower cleaning costs validation Downtime reduction, i.e. higher equipment utilization Enhanced process performance Reduced risk of cross-contamination Fewer CO 2 emissions Higher flexibility Lower volumes per batch Improving single-use capabilities % % % Past Present Future Reduction of life-cycle production costs by 15 % to 40 % 2) 1) Own estimates 2) Pharmaceutical Technology Europe Vol. 22 No. 10, Oct. 2010; own estimates Page 11

12 High Entry Barriers Support Strong Market Positions Environment for biopharma suppliers Highly regulated market environment Extensive customer validation procedures Proprietary technologies and specialized application expertise are prerequisites for suppliers Global supply structure mandatory Skilled and experienced workforce necessary High investment requirements for new entrants Stable pricing Attractive margins Few new entrants into market Page 12

13 Agenda Company Profile and Strategy Biotechnology Division: Markets and Trends Mechatronics Division: Markets and Trends Acquisition of Biohit s Liquid Handling Segment Financial Performance 9M 2011; Guidance 2011 Page 13

14 Mechatronics Division: Strong Focus on Lab Business Provides weighing and analytical instruments for laboratories Industry ~40 % Produces weighing, monitoring and control equipment for industrial process applications 2011E Sales > 240 mn 1 Serves the pharma, biotech, food and chemical industries Lab ~60 % 1) based on current FY 2011 guidance Page 14

15 Leading Market Position of Lab Instruments Business Global No. 2 in Lab Weighing Complete product pyramid from premium to standard segment Top technology and high quality products Global sales and service organization with synergy potential to SSB Broad customer base with focus on pharma biopharma, food and academia Expansion of product portfolio by premium benchtop lab instruments on the agenda Page 15

16 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 Relatively low market share in most geographies Industrial Weighing reorganized as independent business unit since January 2011 Strategic options under consideration; including divestment Page 16

17 Agenda Company Profile and Strategy Biotechnology Division: Markets and Trends Mechatronics Division: Markets and Trends Acquisition of Biohit s Liquid Handling Segment Financial Performance 9M 2011; Guidance 2011 Page 17

18 Lab Business to be strengthened by Biohit Liquid Handling Acquisition Acquisition of all Liquid Handling assets of Biohit Oyj for a total consideration of 68m Sales of ~ 38m and EBITDA margin of ~13% in 2010 Among the top players in the market for mechanical and electronic pipettes Acquisition funded through existing credit facility Substantial sales synergies expected Acquisition projected to be accretive to underlying net profit 1)2) from 2012 onwards One-time transaction costs of ~ 2m anticipated Biohit s LH business substantially expands available Sartorius lab product range 1) Excluding extraordinary effects 2) Excluding non-cash amortization Page 18

19 Strategic Rationale Like balances, lab filters and water systems, pipettes are lab essentials Gain critical mass to intensify direct selling Provide opportunity to leverage joint service organization Enhance positioning with both customers and distributors Build on joint technical core competencies Strong growth potential with both businesses combined Page 19

20 Agenda Company Profile and Strategy Biotechnology Division: Markets and Trends Mechatronics Division: Markets and Trends Acquisition of Biohit s Liquid Handling Segment Financial Performance 9M 2011; Guidance 2011 Page 20

21 Sartorius Group 9M 2011 Key Figures In millions of (unless otherwise specified) 9M M 2011 Change in % actual rates const. rates Order Intake Sales Revenue Underlying 1) EBITA Underlying 1) EBITA-margin 12.2% 15.0% +280bps - Underlying 1)2) EPS in Operating Cash Flow ) Excluding extraordinary effects 2) Excluding non-cash amortization Page 21

22 Biotechnology Division Positive Momentum Continues Order Intake in millions of % +10.9% Sales Revenue in millions of Currency-adjusted: Order Intake % Sales % Order Intake Strong growth with single-use products, especially filters and bags Sales Revenue Double-digit growth with single-use products 9M M 2011 Page 22

23 Biotechnology Division Highest Revenue Gains in Asia Pacific North America Sales 1) in millions of Europe Sales 1) in millions of Asia Pacific Sales 1) in millions of Other Markets Sales 1) in millions of Exposure to indebted -Zone countries 2) 85.4 ~15 % % +8.2% Currency adjusted growth +37.8% +6.1% 9M 2011 Sales growth in North America accelerated as expected Excellent growth of European business Sales share in Asia Pacific region increased to ~20% driven by single-use and equipment business Modest exposure to indebted -Zone countries no impact from debt crises so far 1) According to customers location 2) Italy, Spain, Ireland, Portugal, Greece Page 23

24 Biotechnology Division Continuous Margin Expansion EBITDA Underlying 1), in millions of EBITA Underlying 1), in millions of Sales and Margin development % % M M M M M M Sales Revenue in millions of (lhs) Underlying 1) EBITDA-margin (rhs) Underlying 1) EBITA-margin (rhs) Margin expansion mainly driven by strong top-line growth and improved product mix 1) Excluding extraordinary effects Page 24

25 Mechatronics Division Business Performance Remains Strong Order Intake in millions of 300 Sales Revenue in millions of 300 Currency-adjusted: Order Intake % Sales % % +14.9% Order Intake Normalization of OI as expected Q3 compares with a very strong base Sales Revenue 0 9M M Strong growth in laboratory business as well as in industrial weighing business Sales growth positively impacted by comparably low revenue base of the previous year Page 25

26 Mechatronics Division Dynamic Growth Supported by Modest Comparables North America Sales 1) in millions of. Europe Sales 1) in millions of Asia Pacific Sales 1) in millions of Other Markets Sales 1) in millions of Exposure to indebted -Zone countries 2) <15 % % +15.7% Currency adjusted growth +22.6% +17.4% 9M 2011 Asia Pacific remains fastest-growing business region for the Mechatronics Division Growth in Europe driven by both Lab Instruments and Industrial Weighing business Also modest exposure to indebted -Zone countries 1) According to customers location 2) Greece, Italy, Ireland, Portugal, Spain Page 26

27 Mechatronics Division Substantial Increase in Profitability EBITDA Underlying 1), in millions of EBITA Underlying 1), in millions of Sales and Margin development % % M M ) 9M ) 9M ) M M Sales Revenue in millions of (lhs) Underlying 1) EBITDA-margin (rhs) Underlying 1) EBITA-margin (rhs) Significant increase in profitability due to dynamic growth and optimized cost structure Macro environment seems fragile Break even point considerably lower post 2009 restructuring 1) Excluding extraordinary effects Page 27

28 Sartorius Group Strong Increase in Underlying 1) Earnings per Share In millions of (unless otherwise specified) 9M M 2011 Change in % Underlying EBITDA 1) Underlying EBITA 1) Extraordinary items n.m. EBITA Financial Result Earnings before tax Net profit after minorities EPS ( ) Underlying net profit after minorities 1)2) Underlying EPS ( ) 1)2) Extraordinary effects mainly relate to US site relocation and European sales force optimization in the Mechatronics Division Underlying tax rate of 32% Operating cash flow impacted by NWC expansion Operating Cash flow Investing Cash flow Free Cash flow ) Excluding extraordinary effects 2) Excluding non-cash amortization Page 28

29 Sartorius Group: Further Improvement in All Key Financial Indicators Dec. 31, 2010 Sep. 30, 2011 Equity ratio in % Net debt in m Gearing Net debt to underlying 1) EBITDA Net Debt to EBITDA 1) Interest Coverage Q1-Q Q1-Q Q1-Q Q1-Q Net Debt in m (lhs) Net Debt to EBITDA (rhs) 1) Excluding extraordinary effects Page 29

30 FY 2011 Sales Guidance Upgraded Guidance Previous New Sartorius Group Biotechnology Mechatronics Sales growth 1) 8% - 10% 10% - 11% Underlying EBITA 1)2) 14.5% % confirmed Sales growth 1) 8% - 10% 10% - 11% Underlying EBITA 1)2) 17% - 18% confirmed Sales growth 1) 8% - 10% 10% - 11% Underlying EBITA 1)2) 10% - 11% confirmed Management continues to forecast a significantly positive operating cash flow Capex ratio expectation remains at around 7% due to infrastructure projects in SSB 1) In constant currencies 2) Excluding extraordinary effects Page 30

31 Thank you very much for your attention Page 31

32 Appendix Page 32

33 Strong Worldwide Presence Europe North America Asia Pacific Nieuwegein, Netherlands St. Petersburg, Russia Aachen, Germany Vilvoorde, Belgium Taastrup, Denmark Epsom, UK Stonehouse, UK Dublin, Ireland Hamburg, Germany Goettingen, Germany Poznan, Poland Paris, France Melsungen, Germany Vienna, Austria Tagelswangen, Switzerland Aubagne, France Budapest, Hungary Lourdes, France Milan, Italy Madrid, Spain Florence, Italy Denver, CO, USA Concord, CA, USA Mexico City, Mexico Mississaugna, Ontario, Canada Bohemia, NY, USA Yauco, Puerto Rico Beijing, China Seoul, South Korea Tokyo, Japan Hong Kong, China Bangkok, Thailand Hanoi, Vietnam Bangalore, India Makati City, Philippines Kuala Lumpur, Malaysia Singapore, Singapore 74.6 M Hamdia, Tunisia São Paulo, Brazil Buenos Aires, Argentina 22 sales & production sites 6 sales & production sites 11 sales & production sites Melbourne, Australia 2010 Regional Sales in % 2010 Regional Sales in % 2010 Regional Sales in % 52.6 CAGR 22.3 CAGR ) % % CAGR % ) ) Sartorius earns the highest revenue share in Europe The emerging markets generate the highest growth rates production sites and sales sales 1) consolidated and converted with actual exchange rates Page 33

34 Investment projects on track Göttingen, GER Yauco, PR Guxhagen, GER Capex Ratio* ~ e * in % of sales revenue Membrane capacity expansion at headquarters in Germany Extended facilities have been under construction since March 30, 2011 To be completed in the 1st quarter of 2012 Expansion and optimization of the filter manufacturing plant in Puerto Rico Implementation of bag manufacturing until April 2012 Closure of the Concord production site in California by the end of 2012 New site for equipment business in Germany Extension of office and manufacturing space to 8,600 m2 (92,570 sq. ft.) Relocation and expansion of equipment business from Melsungen, GER, to Guxhagen To be completed mid Investments of around 50 million planned for 2011 Expected increase in the capex ratio from about 4 % to approx. 7 % Underlying capex ratio approx. 4 %, thereof 1 percentage point capitalized R&D-costs Page 34

35 Biohit Liquid Handling Sales by Category and by Region Electronic pipettes Pipette consumables Europe America 21 % 29 % 19 % ~ 38m ~ 38m 52 % 16 % APAC 32 % 19 % 14 % Mechanical pipettes Service ROW Sales split based on 2010 data Significant growth potential in all product categories Global market of ~ 250m plus ~ 500m for tips; expected growth of approx. 5%+ Established sales organizations in Russia, Germany, France, UK, USA, Japan, China and India High overlap of customer base Page 35

36 Organization and Shareholding Structure 50 7 Ord. in % Ord. share: 9,36 mn outstanding: ~8,53 mn 9 Prf. in % 91 Prf. share: 9,36 mn outstanding: ~8,52 mn Adm. by executor Family owned Bio-Rad Laboratories Inc. Free Float Treasury shares 74% Sartorius AG 100 % Sartorius Stedim Biotech S.A. Sartorius Mechatronics 67 in % Sartorius AG (74 % outstanding) Free Float (26 % outstanding) Treasury shares Shares ~17,03 mn. 1), outstanding ~15,33 mn. 1) Voting rights ~28,86 mn. 1), outstanding ~27,16 mn. 1) 1) As of December 2011 Simplified, schematic diagram Page 36

37 Investment Highlights Clear focus on fast-growing business, especially the highly attractive biopharma market Leading market positions and strong brand Strong base in all regions with high growth potential Proven track record with alliances and acquisitions Attractive incremental margins and comfortable financial position Page 37

38 Financial Calendar February 2012 Publication of preliminary full-year figures for 2011 April 19, 2012 Annual Shareholders Meeting April 24, 2012 Publication of 3-months figures for 2012 Page 38

39 Sartorius Group Executive Committee Oscar-W. Reif Oscar-Werner Reif Reinhard Vogt* Jörg Pfirrmann* Joachim Kreuzburg* Chairman Dominique Baly Volker Niebel Research and Development Marketing, Sales, Services, Business Development Bioprocess Finance, Information Technologies Corporate Strategy, Human Resources, Legal, Compliance, Communications Marketing, Sales, Services, Business Development Laboratory Procurement, Production, Supply Chain Management * Member of the Executive Board of Sartorius AG Page 39

40 Contacts Petra Kirchhoff Vice President Corporate Communications & IR Phone: Andreas Theisen Director Investor Relations Phone: Sartorius Corporate Administration GmbH Weender Landstrasse Goettingen, Germany Page 40