Investors Presentation. August 2018

Transcription

1 Investors Presentation August 2018

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 Compan Overview Business Model Mid-term Growth Prospects FY 2018 Guidance H Results Appendix

4 Sartorius Stedim Biotech at a glance International leading Bioprocess technologies provider Sales revenue EBITDA 1 margin ~ 1.08bn 27.3% ~34% Americas ~43% EMEA ~23% Asia Pacific Emploees Market cap. 2 >5,100 ~ 8.8bn 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 2017 figures; 1 Excluding extraordinar items 2 As of Jul 25,

5 Unique position in an attractive market Solution Provider for Biomanufacturing Highl regulated environment validated processes Broadest portfolio in the industr; ~75% recurring revenues 5

6 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 6

7 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 7

8 Market fundamentals remain ver attractive Favorable demographics 9bn people b 2050 of which >2bn 60rs or older Rise of biosimilars ~25% CAGR biosimilar sales ~8% CAGR of biopharma market Increasing healthcare spending +6.5% CAGR of worldwide prescription drug sales Favorable R&D pipeline; strong advances in gene and cell therap >50% Share of biologics in pharma R&D pipeline 8

9 Four strong pillars drive above-average growth Pharma market Biopharma market CAGR 4-7% CAGR 8-9% +10% Organic CAGR 1 Single-use penetration Double-digit growth Market share gains Esp. in North America CAGR excl. fx effects and acquisitions 9

10 Portfolio enhanced b seven acquisitions since 2011 Acquisition Criteria Portfolio: Complementar products or technologies Market Position: Either among the Top 3 or unique position Integration: Management capacit; cultural fit Price: Fair value; reach our profitabilit level in 2-3 ears AllPure Technologies TAP Biosstems 2013 Lonza Cell Culture Media ksep Sstems

11 Competence in data analtics recentl strengthened Leading software for bioprocess data analtics Powerful solutions for modeling and optimizing development and manufacturing processes of biopharmaceuticals Successful distribution and co-marketing cooperation with Umetrics since 2012 Acquired in earl April 2017; annual sales of ~$15mn; significant double-digit profitabilit 11

12 Agenda Compan Overview Business Model Mid-term Growth Prospects FY 2018 Guidance H Results Appendix

13 Sales revenue more than doubled in the last six ears Sales CAGR ~ +14% EBITDA 1 margin +6.4pp +20.4% +4.1% +19.4% +15.9% +10.8% +10.3% 1.08bn 27.5 ~ m Sales revenue EBITDA 1 margin in %

14 Our Sartorius 2025 targets and initiatives Strategic initiatives Regional Participate in strong Chinese market growth Continue to outgrow the important U.S. market Portfolio Adding high-impact innovation, e.g. digital tools Enhance process development capabilities Expand into adjacent applications Operations Accelerate workflows across the organization through digitalization Extend manufacturing base in Asia 2025 targets ~ 2.8bn 1 Sales revenue ~30% EBITDA margin 2025 ambition is based on 2017 currenc exchange rates; non-organic revenue growth is accounted for companies acquired from 2018 onwards; EBITDA excluding extraordinar items 14

15 Continuous market share gains in the Americas Sales growth Americas ~+15% CAGR Footprint New Oxford Bohemia Sales share America 2017: 34% 2011: 27% Mexico Cit Yauco In constant currencies Production Sales Sales Ke initiatives ( ): Own US sales organization established Investment into optimized go-to-market approach Portfolio enhanced through 6 acquisitions Process development lab opened in Boston 15

16 Business development in Asia in line with strong market growth Sales growth Asia Footprint Sales share Asia Pacific ~+17% CAGR Beijing Hanoi Seoul Shanghai Toko 2017: 23% 2011: 20% In constant currencies Bangalore Kuala Lumpur Production Sales Sales Singapore Ke initiatives: Investment into optimized go-to-market approach New sales and marketing headquarter in Shanghai Application and validation lab established Preparation of new process development lab in South Korea 16

17 Infrastructure prepared for further organic growth Yauco, Puerto Rico Doubling of fluid management and filter capacities Goettingen, German Extension of filter capacities Capex ratio in % ~ e 1 Capex composition Aubagne, France Capacit extension of bag production ~x% Expansion Capex New ERP and extension of global IT infrastructure ~3% ~2% ~3% Minor expansion Capex Capitalized R&D Maintenance Capex Capex ratio expected to decrease from its aboveaverage levels in as of

18 Agenda Compan Overview Business Model Mid-term Growth Prospects FY 2018 Guidance H Results Appendix

19 Higher revenue growth expected for FY 2018 FY 2018 Guidance 1 Previous New Sales revenue growth 7% - 10% ~ 11% - 14% Underling EBITDA margin ~ +0.5pp vs. FY17: 27.3% 28.0% CAPEX ratio ~ 15% ~ 15% 1 In constant currencies Growth guidance includes non-organic contribution b recent acquisition of ~ 0.5pp Due to the U.S. tax reform, SSB s tax rate is expected to decrease from 2018 onwards b 2pp to around 26% 19

20 Double-digit growth in sales and profit Sartorius Stedim Biotech Group in millions of unless otherwise specified H H in % in % cc 2 Sales revenue Order intake Underling EBITDA Underling EBITDA 3 margin in % pp Underling EPS 4 per share in Substantial revenue growth with single-use products; cell culture media business picking up; several larger equipment projects in Q2 order intake Underling EBITDA margin increases despite currenc headwinds 1 Restated after PPA finalization 2 Constant currencies 3 Underling = excluding extraordinar items 4 Underling EPS = based on net profit after non-controlling interest; adjusted for extraordinar items as well as amortization and based on a normalized financial result and tax rate 20

21 Growth in all regions, Americas with highest momentum Americas in millions EMEA in millions Asia Pacific in millions Sales b Regions in % EMEA ~ 43% Americas ~ 34% ~ 586m H117 H118 H1 17 H % +9.1% H % H118 Asia Pacific ~ 23% Acc. to customers location; growth in constant currencies Americas: High momentum against moderate comps EMEA: Robust growth in sales revenue and dnamic order intake Asia Pacific: Strong sales growth versus high comps 21

22 Significant increase in operating cash flow Sartorius Stedim Biotech Group in millions unless otherwise specified H H in % Underling EBITDA Extraordinar items Financial result Underling net profit 2, Reported net profit Net operating cash flow Net investing cash flow Net operating cash flow driven b higher earnings Net investing cash flow reflects execution of CAPEX program (IT investments; capacit additions in Yauco and Goettingen) Acquisition of software-related assets from Sartorius AG led to temporar peak in SSB s CAPEX; ratio is expected to decrease to projected levels in H2 CAPEX ratio (in %) pp 1 Restated after PPA finalization 2 Underling net profit = net profit adjusted for extraordinar items, amortization and based on a normalized financial result and tax rate 3 After non-controlling interest 4 Net cash flow from investing activities and acquisitions 22

23 Financial position remains strong Ke Financial Indicators Net Debt and Net Debt to Underling EBITDA Sartorius Stedim Biotech Dec. 31, 2017 Jun. 30, Equit ratio in % Net debt in millions of Net debt underling EBITDA Q1-Q Q1-Q Q1- Q Q1-Q Q Net debt in millions of (lhs) Net debt to underling EBITDA (rhs) 23

24 Agenda Compan Overview Business Model Mid-term Growth Prospects FY 2018 Guidance H Results Appendix

25 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 25

26 Technolog shift towards single use Ke benefits + Capex reduction over entire lifeccle + Lower water and energ consumption + Reduced risk of cross-contamination + Higher flexibilit Single-use market penetration % % % Past Present Future 1 Own estimates 26

27 100% direct business with limited dependence on individual accounts Sales to Top 50 customers in 2017, 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 2017 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 27

28 Strong worldwide presence Rotterdam Vilvoorde Roston Epsom Malmö Mexico Cit New Oxford Bohemia Yauco Glasgow Stonehouse Dublin Laupheim Tagelswangen Lourdes Madrid Aubagne Helsinki Goettingen Guxhagen Budapest Vienna Florence M Hamdia Poznan Hanoi Beijing Seoul Shanghai Toko Bangalore Kuala Lumpur Singapore São Paulo Buenos Aires Melbourne Sales Production Production and Sales 28

29 Extract of the product portfolio Filtration Purification Fluid Management Fermentation & Cell Culture Media 29

30 On track to meet 2020 targets Strategic Initiatives Regional Further grow sales force effectiveness Gain share in North America Leverage market growth in Asia 2020 Targets ~ bn 1 Sales revenue Portfolio Alliances and acquisitions Own product development ~ 4 5 Organic ~ 1 5 Acquisitions Infrastructure Continued capacit expansion Drive digitalization and roll-out of efficient IT sstems ~29-30% 1 EBITDA 2 margin 1 Based on 2015 fx rates 2 Excluding extraordinar items 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 August 28, 2018 Commerzbank Sector Conf. Week Frankfurt September 04, 2018 M.M. Warburg Roadshow Edinburgh September 05, 2018 Metzler Roadshow London September 06, 2018 Goldman Sachs European Medtech Conf. London September 12, 2018 Commerzbank Roadshow Chicago September 13, 2018 Morgan Stanle Global HC Conf. New York September 25, 2018 Berenberg German Corporate Conf. Munich Petra Kirchhoff Head of Corporate Communications & IR Phone: Ben Orzelek Head of Investor Relations Phone: Sartorius Corporate Administration GmbH Otto-Brenner-Straße Goettingen, German 32