Investors Presentation. April 2017

Transcription

1 Investors Presentation April 2017

2 Disclaimer This presentation contains statements concerning Sartorius Stedim Biotech Group s 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 the will actuall materialize. This is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantiall from the expected ones. It is not planned to update our forwardlooking statements. Throughout this presentation, differences ma be apparent as a result of rounding during addition.

3 Agenda 01 FY 2016 Results FY 2017 Guidance 02 Compan Overview Business Model 03 Growth Prospects 04 Appendix

4 Excellent Development in Line with Upgraded Expectations Sartorius Stedim Biotech Group in millions of unless otherwise specified All product segments report double-digit growth in a continued dnamic market environment Ongoing market shares gains, esp. in the Americas Recent acquisitions contribute approx. 2 pp to sales growth FY 2015 FY 2016 in % in % cc 1 Sales revenue , Order intake , Underling EBITDA Underling EBITDA 2 margin in % Underling EPS 3 per share in Capex ratio in % Underling EBITDA margin expansion of 1.3 pp driven b economies of scale 1 Constant currencies 2 Underling = excl. extraordinar items 3 Underling EPS = based on net profit after non-controlling interest, adjusted for extraordinar items and amortization, based on a normalized financial result and tax rate; FY 2015 adjusted for stock split, rounded values 4

5 Double-digit Growth in All Regions Americas in millions EMEA in millions Asia Pacific in millions Sales b Regions in % EMEA ~ 43% Americas ~ 37% 1.05bn FY 15 FY 16 FY 15 FY % +16.5% FY 15 Acc. to customers location; growth in constant currencies FY % Asia Pacific ~ 20% Excellent performance in the Americas driven b dnamic market growth and share gains Momentum in Asia Pacific supported b some larger equipment projects 5

6 Health Cash Flow Performance; Influenced b Acquisitions Sartorius Stedim Biotech Group in millions FY 2015 FY 2016 in % Underling EBITDA Extraordinar items Financial result Underling net profit Reported net profit Extraordinar items reflect various corporate projects and expenditures related to the recent acquisitions Net operating cash flow influenced b an increase in working capital and higher tax paments Net investing cash flow reflects step up of capex and paments for the acquisitions of BioOutsource and Cellca (both 2015) and ksep (2016) Net operating cash flow Net investing cash flow Underling net result = net profit adjusted for extraordinar items, amortization and based on a normalized financial result and tax rate 2 Net cash flow from investing activities and acquisitions disposals 6

7 Financial Position Remains Ver Strong Ke Financial Indicators Net Debt to Underling EBITDA Sartorius Stedim Biotech Dec. 31, 2015 Dec. 31, ,5 Equit ratio in % ,2 Net debt in millions of , ,6 Net debt underling EBITDA Q1-Q Q1-Q Q1- Q Q1-Q ,3 0 0 Net debt in m (lhs) Net debt to underling EBITDA (rhs) 7

8 Dnamic Dividend Increase Earnings per Share in Dividend per Share in Total profit distributed will increase b 26.0% from 30.7mn to 38.7mn Paout ratio 1 of 21.9% pursuant to SSB s dividend polic approx. at prior-ear levels (2015: 22.1%) Figures for adjusted for stock split; rounded values 1 Relative to underling net profit 8

9 Outlook for 2017 FY 2016 FY 2017 Guidance Sales revenue growth % ~ 8% - 12% Underling EBITDA margin 27.5% ~ +0.5pp 1 Capex ratio 7.6% ~ 10% - 13% 1 In constant currencies Guidance includes ~ 1 pp of growth expected to be contributed b the acquisition of Umetrics Positive effect compensated b somewhat softer customer demand at the start of 2017 and b temporar limited deliver capacities for cell culture media in North America, which is expected to primaril influence H

10 Agenda 01 FY 2016 Results FY 2017 Guidance 02 Compan Overview Business Model 03 Growth Prospects 04 Appendix

11 Sartorius Stedim Biotech at a Glance International leading Bioprocess Technologies Provider Sales Revenue EBITDA 1 Margin ~ 1.05bn 27.5% ~ 37% Americas ~ 43% EMEA ~ 20% Asia Pacific Emploees Market Cap. 2 > ~ 5.5bn Shareholder Structure Free Float ~ 26% Sartorius AG ~ 74% Well-balanced revenue base Global sales and service network Production sites in all regions Based on FY 2016 figures; 1 Excluding extraordinar items 2 As of Dec. 31,

12 Unique Position in an Attractive Market Solution Provider for Biomanufacturing Highl regulated environment validated processes Broadest portfolio in the industr; ~ 75% recurring revenues 12

13 The Widest Product Portfolio Across the Biopharma Process Chain Process Development Upstream Processing Downstream Processing Media Media Preparation Seed Seed Fermentation Production Fermentation Cell Removal Cell Removal Capture Polishing Virus Viral Clarification Clarification Clearance Clearance Vaccines, monoclonal antibodies,... Cell culture media Cell Antibodies Contaminants such as viruses Simplified diagram 13

14 Leading Market Positions in Ke Technolog Platforms Filtration TOP 3 Fluid Management #1 Fermentation #1 More than 85% of sales generated from a TOP 1-3 position Strong double-digit market shares in most technolog platforms 14

15 Four Strong Pillars Drive Above-Average Growth 1 Pharma market CAGR 4-7% 2 3 Biopharma market Single-use penetration CAGR 8-9% Double-digit growth ~ +12% Organic CAGR 1 4 Market share gains Esp. in North America 1 CAGR excl. fx effects and acquisitions 15

16 Agenda 01 FY 2016 Results FY 2017 Guidance 02 Compan Overview Business Model 03 Growth Prospects 04 Appendix

17 Strong Track Record of Profitable Growth Sales CAGR ~ +15.5% EBITDA 1 Margin +6.6 pp +10.3% +10.8% +15.9% +19.4% +20.4% ~ 1.05bn ~ 477m Sales revenue EBITDA 1 margin in % Sales growth and CAGR in constant currencies ; 1 Excluding extraordinar items 17

18 Well on Track to Meet 2020 Targets ~ bn 1 ~ 4 5 Organic Sales revenue ~ 1 5 Acquisitions ~ 29-30% 1 EBITDA 2 margin Strategic Initiatives Regional Gain share in North America Leverage market growth in Asia Portfolio Alliances and acquisitions Own product development Infrastructure Continued capacit expansion Executed Ongoing Ongoing 1 Based on 2015 fx rates 2 Excluding extraordinar items 18

19 Biopharma Market Growth Driven b Strong Long-term Trends Growing and aging world population World population to grow to ~ 9bn b 2050 Increasing access to healthcare Especiall in the emerging markets Strong R&D Pipelines Biologics account for > 40% of all drug candidates Biosimilars Market Emerging industr, capacit build-up esp. in Asia Strong Biopharma Market Growth High Level of BLA Approvals 2 Ø 8 p.a % % ~ + 9% CAGR 1 Ø 4 p.a Evaluate Pharma: World Preview 2016, Outlook to 2022; Sept 2016; Frost & Sullivan; CAGR 2016 to FDA.gov 19

20 Gain Market Share in North America; Leverage Strong Market Growth in Asia ~ + 20% CAGR 1 Americas Sales Share ~ + 17% CAGR 1 Asia Pacific Bohemia New Oxford Mexico Cit Yauco Americas ~ 37% ~ 1.05bn Asia Pacific ~ 20% Bangalore Beijing Hanoi Seoul Shanghai Toko Production Sales Sales Kuala Lumpur Production Sales Singapore Sales North America: the largest market for biopharma Asia: strongl growing pharma market 1 CAGR , in constant currencies 20

21 Portfolio Continuousl Enhanced Via Complementar Acquisitions Acquisition Criteria Portfolio: Complementar products or technologies Market Position: Either among the Top 3 or unique position Integration: Management capacit; cultural fit Price: Fair valuation; reach Sartorius profitabilit level in 2-3 ears AllPure Technologies TAP Biosstems Lonza Cell Culture Media 2013 ksep Sstems

22 Recent Acquisition of Leading Biopharma Software Developer Umetrics Highl specialized provider of data analtics software Powerful solutions for modeling and optimizing development and manufacturing processes of biopharmaceuticals Successful distribution and co-marketing cooperation with Umetrics since 2012 Annual sales of ~$15m; significant double-digit margins Acquired in earl April; purchase price of $72.5m 22

23 ksep Acquisition in 2016 Complemented Single-use Portfolio Unique single-use centrifugation sstems for cell harvest in bioproduction Annual sales of ~ 5m; purchase price of ~ $28m Integration completed; positive development in the first months low cell densities medium cell densities high cell densities Strong portfolio of unique solutions for cell harvest 23

24 Strong Organic Growth Requires Accelerated Capacit Expansion Capex Ratio in % ~ Expansion 2017e 1 Production facilit in Yauco Puerto Rico Significant expansion of production capacities initiated in 2016; earlier and to a greater extent than initiall planned due to continuing strong organic growth Capacities at Yauco plant for single-use bags and filters will be more than doubled Expansion of Goettingen site (filter & instruments production; additional R&D & application labs) Capex ratio expected to remain above long-term average until Based on FY 2017 guidance 24

25 Agenda 01 FY 2016 Results FY 2017 Guidance 02 Compan Overview Business Model 03 Growth Prospects 04 Appendix

26 Multiple Drivers Fuel Significant Market Growth Strong growth of the biopharma market Growing & aging population Increasing access to healthcare Strong R&D pipelines % % ~ + 9% CAGR 1 Emerging biosimilars market Conventional Unclassified Biotechnolog Technolog shift towards single use Cost savings of around 15 to 40% 2 Market Penetration of Single-use Products % Time to market Reduced risk of cross contamination % % Improved titers Past Present Future 1 Evaluate Pharma: World Preview 2016, Outlook to 2022; Sept. 2016; CAGR 2016 to 2020; Frost & Sullivan 2 Pharmaceutical Technolog Europe Vol. 22 No. 10, Oct Own estimates 26

27 Leading Positions in Ke Technolog Platforms Sartorius Merck Millipore Danaher Pall Thermo Fisher GE Top 3 Plaers Filtration 1. Merck Millipore 2. Danaher Pall 3. SSB Fluid Management 1. SSB 2. Thermo Fisher 3. Merck Millipore Fermentation 1. SSB 2. Thermo Fisher 3. GE Purification 1. GE 2. Merck Millipore 3. Danaher Pall Cell Culture Media 1. Thermo Fisher 2. Merck Millipore 3. GE Pie charts indicate completeness of product offering 27

28 100% Direct Business With Limited Dependence on Individual Accounts Sales to Top 50 customers in 2016, in millions ~25% ~35% ~45% ~50% ~50% Cumulative Share Top to to to to 50 Long term business relationships with leading global (bio-)pharma companies Limited dependence on individual accounts Approx. half of 2016 revenue was generated with Top 50 customers No individual customer accounts for more than 5% of sales revenue No single drug accounts for more than 3% of sales revenue 28

29 Strong Worldwide Presence Rotterdam Vilvoorde Herlev Roston Epsom Malmö Mexico Cit New Oxford Bohemia Yauco Glasgow Dublin Stonehouse Laupheim Tagelswangen Lourdes Madrid Aubagne Goettingen Guxhagen Budapest Vienna Florence M Hamdia Poznan Hanoi Beijing Seoul Shanghai Toko Bangalore Kuala Lumpur Singapore São Paulo Buenos Aires Sales Production Production and Sales Melbourne 29

30 Extract of the Product Portfolio Filtration Purification Fluid Management Fermentation & Cell Culture Media 30

31 Sartorius Stedim Biotech Group Executive Committee Joachim Kreuzburg, CEO since 2007 Volker Niebel since 2007 Oscar-Werner Reif since 2009 Reinhard Vogt since 2007 Finance, Legal & Compliance, Communications, Human Resources Production, Business Processes, Suppl Chain Management, IT Research & Development Marketing, Sales & Services 31

32 Financial Calendar and Contacts April 24, 2017 Publication of First-quarter 2017 Results Ma 3, 2017 Deutsche Bank HC Conference Boston Ma 30, 2017 Gilber Dupont HC Forum Paris Jul 25, 2017 Publication of First-half 2017 Results October 24, 2017 Publication of Nine-month 2017 Results Petra Kirchhoff Vice President Corporate Communications & IR Phone: Andreas Theisen Director Investor Relations Phone: Sartorius Corporate Administration GmbH Weender Landstrasse Goettingen, German 32