Investor and Analyst Presentation Q1 2018

Transcription

1 Investor and Analyst Presentation Q1 2018

2 Disclaimer 1. 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 performance of the Company to differ materially from the estimations expressed or implied herein. 2. The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does the Company accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast development. 3. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its parent or subsidiary undertakings or any of such person s officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 2

3 Agenda 1. Introduction 2. FY 2017 & Q review 3. Strategic direction 4. FY 2018 outlook 5. Backup

4 A leading international manufacturer for the global pharma and healthcare industry Pharmaceutical packaging solutions made out 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 4

5 Strong business foundations, efficient and lean organisation with a strong track record Solid financial profile Leading market positions in attractive niche markets Well invested assets & factories, solid customer basis Homogenous business portfolio with clear strategic focus Revenues FY 2017 EUR 1,348.3m adj. EBITDA FY 2017 EUR 310.8m Strong Cash Flow generation and lower capital intensity Op. CF margin at 15.3% for FY 2017 Leverage at 2.3x as of Nov 30, 2017 #1 in Europe for plastic packaging and inhalation #2 in Europe for diabetes, pens and syringes #1 in the US for prescription and injectables Strong emerging market presence in South America, India and China for plastic packaging, pens, moulded glass, ampoules, vials and cartridges 36 plants in 14 countries Over 1500 customers Delivering to 97 countries over 5 continents Supplying all Top 10 Pharma customers Largest customer makes up for only 6% of total revenues Focus on Pharma and Cosmetics Greater revenue diversification post LSR disposal Stable and balanced customer basis Plastics & Devices Revenues 2017 EUR 757.2m adj. EBITDA 2017 EUR 215.2m Margin % Primary Packaging Glass Revenues 2017 EUR 592.0m adj. EBITDA 2017 EUR 116.0m Margin % 12% 5% 83% 15% 2% 32% 28% 23% REVENUE SPLIT BY SECTOR Pharma & Healthcare: 83% Cosmetics: 12% Others: 5% REVENUE SPLIT BY REGIONS Europe (ex. GER): 32% Germany: 23% Americas: 28% Emerging markets 1 : 15% Other regions: 2% 1. According to IQVIA definition of emerging markets for FY For further details see note 8 of consolidated financial statements within FY 2017 annual report 5

6 Leading market positions in attractive niche markets DIVISION PLASTICS & DEVICES PRIMARY PACKAGING GLASS PRODUCT Plastic Packaging 1 Inhalation (DPI) 2 Diabetes Diagnostics 3 Pens Syringe Systems MG Pharma (Type I) Ampoules, Vials, Cartridges EUROPE #1 #1 #2 #2 #2 #2 #3 NORTH AMERICA #1 #1 #2 #1 #1 EMERGING MARKETS #1 (South America and India) #1 (South America) #2 (India) #1 (China) 1. North America: plastic vials for oral prescription drugs 2. DPI = Dry Powder Inhaler (World market) 3. Lancets and lancing devices 6

7 We provide solutions across all key product categories DIVISION PLASTICS & DEVICES PRIMARY PACKAGING GLASS PRODUCT Plastic Packaging Inhalation (DPI) 2 Diabetes Diagnostics 3 Pens Syringe Systems MG Pharma (Type I) OTC Liquids and Syrups (Type II & III) TG Injectables Gerresheimer Schott Becton Dickinson 1 Nipro 1 Ompi Jabil Circuit (Nypro) 1 Consort Medical 1 West Pharma 1 Nemera Berry Plastics 1 Facet Ypsomed 1 Desjonquères Rocco Bormioli Duran Corning 1 1. Public company // 2. DPI = Dry Powder Inhaler (World market) // 3. Lancets and lancing devices Source: Company estimates 7

8 Scale underpins leading market position and operating leverage 15.5bn products produced every year nearly 500 per second SYRINGES PLASTIC BOTTLES (INCL. CENTOR) PHARMA GLASS BOTTLES COSMETICS ~ 400m pieces ~ 5.5bn pcs ~ 2.5bn pcs ~ 1bn pcs INJECTION VIALS AMPOULES INHALERS CARTRIDGES ~ 3bn pcs ~ 2bn pcs ~ 100m pcs ~ 1bn pcs 8

9 Agenda 1. Introduction 2. FY 2017 & Q review 3. Strategic direction 4. FY 2018 outlook 5. Backup

10 2017 an a-typical year Strict monitoring of all business and macro drivers Market slowdown experienced in Gerresheimer has continuously reacted to volatile drivers Some business uncertainties alleviated, others to remain Medicine standard units volume CAGRs global volume growth 2.1% 0.1% Generic 3.1% 1.0% standard units 2 Close customer relationship allows to adapt offerings and capacities aligned with demand volatility Improved global production and supply chain setup allows higher flexibility for capacity requirements Reported revenues down 1.8% YoY Down 2.0% organically Q up 4.7% reported and up 6.7% organically??? US tax reform US healthcare reform NAFTA (US Import taxes) Currency, in particular USD Margin and Balance Sheet metrics strengthened 1. Source: IQVIA (former Quintiles IMS) January Generic units are included in Medicine units 10

11 FY 2017 margins protected and balance sheet strengthened Proposal to increase dividend by +4.8% Adj. EBITDA margin Adj. EBITDA margin at 23.1% for FY 2017 Up 70bps versus FY16 of 22.4% At 22.8% excluding the effects from the fair value evaluation of the Triveni put option Operating Cash Flow margin Op. CF margin at 15.3% for FY 2017 Already above FY 2018 target of approx. 13% Average NWC % of sales at 16.5% Capex to sales excl. licenses at 8.0% (FXN) Earnings & Dividends Adj. EPS improved / proposed dividend increase Adjusted EPS after non-controlling interests at EUR 4.10 (FXN) slightly improved YoY Proposed dividend increase of 4.8% this year, resulting in dividend per share of EUR 1.10 Balance Sheet Continuing to improve credit metrics Net Debt EUR 712.7m (1) down EUR 75.5m YoY Leverage at 2.3x, below mid-term target of 2.5x Promissory loan issued at attractive conditions 1. As of November 30,

12 Q results in line with expectations; business and market trends unchanged; systematic execution on our growth levers Strict monitoring of all business and macro drivers Q Financials Revenues and profitability developments in line with expectations FXN Revenues flat YoY FXN Adj. EBITDA down EUR 4.1m YoY Translation currency headwinds in Revenues of EUR 13.6m and Adj. EBITDA of EUR 3.2m USD 52.9m one-time deferred tax benefit recorded in Q1 2018, as previously announced Balance sheet and Cash flow items reflect underlying operational performance Markets & Macro USD / EUR translation impact remains a headwind Increase in resin prices temporary affects margins in Plastic Packaging Current assessment on Pharma and Healthcare customers and market trends unchanged Continues to underpin our outlook for 2018 Operations Translating the strategic into every day : systematic review of opportunities and challenges for our growth levers Customers Regional expansion Products and innovation Value proposition Further investing in our structure for future growth 12

13 Agenda 1. Introduction 2. FY 2017 & Q review 3. Strategic direction 4. FY 2018 outlook 5. Backup

14 Social and macroeconomic trends supporting growth in the Healthcare Packaging Sector Rise of chronic diseases & aging population Faster growth of generic drugs Increasing access to healthcare in Emerging Countries Increasing day to day medication Increasing addressable market More people with access to healthcare Stricter regulatory requirements New drugs especially in Biosimilars and Biotech Increasing trend to self medication Request for high quality solutions Demand for innovative solutions Focus on quality and convenience 14

15 Gerresheimer is operating in large and attractive markets Cosmetics Glass Pharma Glass 1 Pharma Plastic Syringes Drug Delivery Devices Estimated Market Size 2017² (in bn) ~ 1.8 ~ 2.2 ~ 5.8 ~ 0.9 ~ 4.0 Market CAGR '17-22² ) (in %) LOW SINGLE DIGIT MID SINGLE DIGIT The strategic relevant core market for Gerresheimer is today ~ 15bn 1. Tubular Glass + Moulded Glass Pharma 2. Strategic relevant markets, Gerresheimer estimates 15

16 Regional dynamics and packaging requirements set market trends ESTIMATED IQVIA VOLUMES CAGR (IN %) GLOBAL PHARMA MARKET TRENDS IMPACT ON PACKAGING REQUIREMENTS 3.5% 3.0% 3.00% 3.10% 2.70% Global Pharmerging ROW 2.5% 2.0% 1.5% 1.0% 2.00% 1.70% 1.70% Biocompatibility End user safety 0.5% 0.0% Medicine standard unit Generic standard unit Overall market trends point towards 2 to 3% CAGR volume growth, underpinned by megatrends, with regional discrepancies Within categories, Pharmerging economies particularly well-placed to benefit from growth Total cost of ownership Device compatibility 1. IQVIA (former Quintiles IMS) January

17 Continued investments in growth are necessary when operating in long term cycles Our industry cycles are within 5 to 10 years We have grown on average by 4.0% per year excluding 2017 On average we re-invest about 4% of our FXN revenues in growth projects 9 years 7 years 5 years 4.0% 4.1% 4.0% revenues growth Average organic 17

18 Priority is on deploying growth levers, whilst continuing to drive quality improvement and adequate returns Expand into new markets Regional Expansion Products & Innovation Expand strategically to build new position and gain critical mass through products, customization and innovation Unlock new and expand within existing customer segments Customers Value Proposition Expand across value proposition to unlock further potential QUALITY AND COST LEADERSHIP 18

19 Expanding into new geographies Strong positions in Core markets, grow through: New customers New products MENA ASIA SOUTH AMERICA Core markets Pharmerging markets Explore Established base in Pharmerging markets, grow through: M&A Own investments Partnerships 19

20 Winning customers ~ 5000 products for the Healthcare, Cosmetic and Food & Beverage industry: one of the broadest portfolio offerings SERVING A WIDE CUSTOMER BASE Half of the revenues generated with the Top 20 customers in well balanced portfolio Offering state-of-the-art solutions in the whole range from prescription drugs to cosmetics and personal care We will continue to beef up our sales, marketing and technical service in order to define best solutions together with our customers CURRENT CUSTOMER OVERVIEW With well defined business models based on our customer feedback we will increase efficiency and speed along our part in the value chain Unlock new customers and biotech opportunities Leverage Gx solutions as business and product development engine 20

21 Commercial impact Leading in Innovation Gx Innosafe, Gx RTF Vials, Gx Elite Glass and more innovations for our customers Set standards in our industry together with strong partners Unique portfolio of syringes and high value primary packaging for biotech drugs Extend cosmetic packaging capabilities and technologies Adding new decoration technologies Duma Container Gx RTF Vials Gx InnoSafe NOW SHORT-TERM MID-TERM LONG-TERM New Inhaler Device USA Gx Elite Glass Corning Valor Glass Gx RTF ClearJect Metal-free Glass Syringe 21

22 Improving value proposition Leverage our very broad portfolio incl. high value plastics & glass technologies and offer packages and bundles Strengthen device contract manufacturing business Extend design, pharmaceutical assembly, services and technologies Show case own concepts, develop own device platforms incl. connected features 22

23 Disciplined approach to capital allocation ORGANIC INVESTMENT Capex spend at ~8% of sales for growth and maintenance projects Controlled capacity extension Clear payback criteria DIVIDEND Committed to redistributing profit back to shareholders Dividend policy implies payout ratio of 20-30% of adjusted Net Income after minorities Focus on Gx ROCE and Gx RONOA M&A Stringent and selective approach to acquisitions Strategic fit, management profile and financial track record as key initial considerations Clear financial guidelines RATING & LEVERAGE Consider net financial debt to adjusted EBITDA ratio of 2.5 as appropriate for Gerresheimer Temporary variation tolerated in case of relevant M&A Committed to investment grade rating in the long term 23

24 Agenda 1. Introduction 2. FY 2017 & Q review 3. Strategic direction 4. FY 2018 outlook 5. Backup 24

25 2018 Outlook 2018 GUIDANCE REPORTED FY 2017 EXPECTED FY 2018 RANGE Revenues EUR 1,348.3m EUR 1.348bn to approx. EUR 1.4bn (FXN 1 ) Adj. EBITDA EUR 307.2m 2 EUR 305m to EUR 315m (FXN 1 ) Capex (% FXN sales) 8% ~8% (FXN 1,3 ) WIDER FINANCIAL FRAMEWORK REPORTED FY 2017 POLICY Leverage 2.3x 2.5x Dividend payout as % of adj. NI excl. non-controlling interests 27.1% to be proposed in the upcoming AGM 20% to 30% USD translation impact 1 USD cent variation Revenues: approx. 1/3 of revenues USD-denominated in FY 2017 Equivalent to approx. EUR 4m revenues variation (on FY 2017 basis) Adj. EBITDA: approx. 40% of adjusted EBITDA USD-denominated in FY At const. average FX rates of EUR 1.00 = USD 1.12, based on FY 2017 reported numbers 2. Excluding the income from the fair value evaluation of the Triveni Polymers Private Ltd. put option in Q Excluding capital expenditure on intangible assets in relation to licensing agreements Equivalent to approx. EUR 1m Adj. EBITDA variation (on FY 2017 basis) 25

26 No deviations to internal budget at this stage, awaiting Q2 to refine H trading expectations Q came in as planned, and we have not observed any large deviations to our internal expectations as this stage Phasing of growth to be still skewed towards H Systematically reviewing growth levers opportunity both organically and inorganically Management and operations remaining very committed to drive the business forward 26

27 Backup FY 2017 & Q1 2018

28 Backup FY 2017

29 Simultaneous short-term trade disruptions from a number of customers have impacted our business environment in H CURRENT CUSTOMER OVERVIEW (1) P&G Coty Astra Roche J&J Teva Pfizer L Oreal Novo Nordisk ABOUT 6% generated with Our Top 1 customer 38% of revenues generated with our Top 10 Pharma & Generics customers in % of revenues generated with our Top 20 Pharma & Generics customers in 2016 Boehringer Ingelheim Beiersdorf Fresenius Mylan Novartis Bayer Sanofi Avon 1. Customers names have been inputted randomly and clock-wise presentation does not correspond to revenues ranking Merck GsK SELECTED AND ILLUSTRATIVE POSTQ2/Q3 EARNINGS COMMENTARY FROM CUSTOMERS & PEERS Inventory destocking has continued during Q2 [in the US] and we have strengthened our supply chain management PHARMA COMPANY GX AS SINGLE SUPPLIER Order pattern changes from some [Pharma] customers have impacted their operations [which] depressed their growth over the quarter our visibility around the corrective actions these customers are taking is limited US COMPETITOR In our US generic business we experienced [ ] decreased volumes mainly through customer consolidation, greater competition [ ] and some new product launches that were either delayed or subjecto to more competition GENERIC COMPANY FDA approves some injectable drugs to be used beyond the manufacturer s labeled expiration date FDA.GOV Hurricane Irma preparedness actions included temporary road and border closures in Florida for a number of day SOURCE. EMERGENGY RESPONSE PACK FROM GOV: RICK SCOTT S TEAM 29

30 Working on 3 main levers to protect and build margins MIX VOLUME GROWTH PRODUCTIVITY AND EFFICIENCY Mix management Higher value products Direct impact on operational leverage Increase contribution margin through higher volumes Increasing productivity Labour Machines Higher yields Driving manufacturing efficiencies PRICING Pricing as a function of volumes COST INFLATION Cost inflation mainly through personal costs Pass through clauses as mitigating actions 30

31 Net debt reduction; Adjusted EBITDA leverage below mid-term target NET DEBT AND FINANCIAL LEVERAGE NET DEBT SUMMARY Net debt IN EUR M FY 2017 FY 2016 Leverage (x) Drawn portion of RCF Promissory loan (2017) x FY x FY2017 FY2016 FY 2017 Increased cash & cash equivalents position drives net debt reduction of EUR 75.5m year-on-year Already below mid-term leverage target of 2.5x New promissory loans issued to redeem EUR 300m bond maturing on May 19, 2018 Total of EUR 250m (upsized versus initial consideration due to supportive environment) Improved conditions, attractive pricing Promissory loan (2015) Bond Local borrowings and leasing Cash and cash equivalents (287.0) (118.4) Total net financial debt Promissory loans 2015: fixed/variable interest rates, currently between 0.75% and 2.04%; (maturity in 2020, 2022 and 2025) Promissory loans 2017: New EUR 250m Schuldschein of which EUR 240m with fixed interest rates (5y; 7y; 10y) with fixed/variable interest rates ranging from 0.60% to 1.72% Bond: Fixed annual coupon of 5.0% (matures in May 2018) Revolving credit facility: total capacity EUR 450m; variable interest rate 1. Leverage: the relation of net financial debt to adjusted EBITDA of the last twelve month, according to the credit agreement currently in place 31

32 Technical guidance: EPS + 1 TOPIC Revaluation of deferred tax assets and liabilities STATUS QUO US tax reform, the Tax Cuts and Jobs Act passed on December 22, 2017 Triggered a.o. immediate revaluation of all deferred tax assets and liabilities on US Companies. ESTIMATED IMPLICATIONS ON MODELLING FOR FY 2018 and FY 2019 Positive one-off effect for the financial year 2018 of USD 52.9m recognized in the first quarter of 2018 Non-cash item 2 3 Reduced corporate tax rate Impact of new financing structure from H onwards when Bond is redeemed US tax reform, the Tax Cuts and Jobs Act passed on December 22, 2017 Includes US Federal Corporate Tax rate cut from 35% down to 21% as well as elimination of certain previously available deductions from taxable income. There are also additional restrictions to the taxdeductibility of certain expenses Applicable from Jan 1, 2018 onwards New promissory loans issued to redeem EUR 300m bond maturing on May 19, 2018 Lower federal tax rate expected from FY 2018 onwards Had the impact of the US tax reform already applied in the financial year 2017, there would have been a positive effect on current income taxes and our net income for 2017 in a low single digit million Euro amount ~ EUR 5.5m estimated savings in H on net finance expense compared to FY 2017 Total of ~ EUR11m estimated savings in FY 2019 net finance expense compared to FY 2017 Positive effect expected on adjusted EPS after noncontrolling interest 4 Negotiations have begun in the USA with regard to the North American Free Trade Agreement (NAFTA). This could possibly result in tariffs on certain imports and exports between the USA and other North American countries The outcome of changes to NAFTA could have a negative impact on our Mexican subsidiary s exports to the USA and hence on our net income In the financial year 2017, our Mexican subsidiary s exports to the USA were approximately EUR 27m. The effects of the NAFTA negotiations are not currently quantifiable because precise information is lacking. We will continue to track the potential impacts? Discussions ongoing 32

33 Merger and Acquisition - key vehicle for profitable growth Adding new markets: we only buy what we understand and know a) Regional expansion into emerging markets b) Technology/Product portfolio expansion c) Relevant consolidation opportunities Assessing M&A opportunities: we are looking at attractive assets a) Well positioned strategically & with solid financial track record b) Leading industry expertise c) Management & leadership quality, aligned in values and principles M&A guidelines: we are focusing on strict financial criteria a) Enterprise value & impact on Group b) Returns c) Compatibility with financing and leverage ambitions Long track record to create value via the integration of new businesses 33

34 Backup Q1 2018

35 Expected decline in tooling revenues and unfavourable comps in US PPG business weight on top line development in Q FXN 1 REVENUES IN Q1 18 VS Q1 17, IN EUR M GROUP Plastics & Devices +0.4% Primary Packaging Glass + 0.5% % P&D: Q performance versus outlook provided in February Significantly lower tooling revenues YoY AS EXPECTED Peachtree performing well, lower demand from a few device customers where we are single source suppliers AS EXPECTED Solid performance in Plastic Packaging AS EXPECTED Group: Q performance versus outlook provided in February Q expected to be FXN flat YoY AS EXPECTED PPG: Q performance versus outlook provided in February Lower demand from our US injectable customers AS EXPECTED Strong growth in China, satisfying growth in European Cosmetics glass business AS EXPECTED Performance achieved in Q EUR 0.8m YoY Performance achieved in Q Unchanged YoY 1. Average budgeted exchange rate assumption for FXN guidance 2018: Average currencies for FY 2017 (e.g. EUR 1.00 = USD 1.12) 35

36 Lower utilisation of installed capacity in the US PPG Business as main driver of the FXN decrease in adjusted EBITDA YoY FXN 1 ADJUSTED EBITDA IN Q1 18 VS Q1 17, IN EUR M GROUP Plastics & Devices + 0.2% % 54.9 Primary Packaging Glass -14.9% P&D: Q performance versus outlook provided in February Negative temporary impact due to higher resin prices AS EXPECTED Lower demand from a few device customers where we are single source suppliers impacts capacity utilisation, Peachtree margin in ramp up phase AS EXPECTED Solid contribution from Plastic Packaging in particular Centor AS EXPECTED Performance achieved in Q EUR 0.1m YoY Group: Q performance versus outlook provided in February Q FXN adj. EBITDA expected to be lower YOY in absolute terms AS EXPECTED PPG: Q performance versus outlook provided in February Lower utilisation rate in US PPG Business AS EXPECTED Furnace repair AS EXPECTED Performance achieved in Q EUR 3.6m YoY 1. Average budgeted exchange rate assumption for FXN guidance 2018: Average currencies for FY 2017 (e.g. EUR 1.00 = USD 1.12) 36

37 Expected decline in tooling revenues and unfavourable comps in US PPG business weight on top line development in Q REVENUES Q1 18 VS Q1 17 (IN EUR M) YoY reported: -4.1% 310 YoY FXN: + 0.4% Group Q Reported Revenues Currency Impact Group Q FXN Revenues P&D Q FXN contribution PPG Q FXN contribution Internal sales Q FXN contribution Group Q FXN Revenues Currency Impact Group Q Average EUR / USD exchange rate references for the quarter 37

38 FX-Impact of EUR 13.6m on Q Revenues and EUR 3.2m on Adjusted EBITDA Group Q review EUR M Q Q Change in % Revenues of which FX effect N.A. Adj. EBITDA of which FX effect N.A. - Adj. EBITDA margin % bps P&D Q review PPG Q review EUR M Q Q Change in % EUR M Q Q Change in % Revenues Adj. EBITDA Adj. EBITDA margin % bps Revenues Adj. EBITDA Adj. EBITDA margin % bps 38

39 Executing on the deployment of our growth levers Q Update Expand into new markets Triveni call option exercised as of April 9, 2018 Regional Expansion Products & Innovation Expand strategically to build new position and gain critical mass through products, customization and innovation Small batch production line for pre-fillable glass syringes expanded at our Wackersdorf TCC Unlock new and expand within existing customer segments Customers Value Proposition Expand across value proposition to unlock further potential RTF 5 Syringe line to start production in 2020, with a continued focus on biosimilars QUALITY AND COST LEADERSHIP 39

40 Development of net working capital Inventories thereof prepayments made FEB 28, 2018 EUR M NOV 30, 2017 EUR M FEB 28, 2017 EUR M Trade receivables Trade payables Payments received Net working capital Average NWC in % of LTM revenues 16.7% 16.5% 16.1% 40

41 Development of inventories FEB 28, 2018 EUR M NOV 30, 2017 EUR M FEB 28, 2017 EUR M Raw materials, consumables and supplies Work in progress Finished goods and merchandise Prepayments made Inventories

42 GXI Key Data in EUR per share Dividend Dividend yield 1.5% 1.8% 1.9% 1.7% 1.4% 1.7% 1.2% 1.5% 1.6% Payout ratio 22% 26% 25% 25% 1 23% 26% 25% 25% 27% Share price high Share price low Share price at FY end Book value per share ,14 P/E ratio Market cap in EUR m ,238 1,560 1,395 2,320 2,162 2,106 MDAX weighting year end 11.48% % 1.24% 1.40% 1.47% 1.33% 1.01% 1.42% 1.33% 1,00% Number of shares in million Retrospective restatement due to the early adoption of IAS 19 (amended in 2011) from December 1, Proposed appropriation of net earnings 3. Based on adj. EPS after non-controlling interests 4. SDAX weighting at year end 42

43 Overview of Abbreviations and Definitions Abbreviations and Definitions Adj. EBITDA Earnings 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 Adjusted net income divided by 31.4m shares Adjusted net income Consolidated net income before non-cash amortization of fair value adjustments, restructuring expenses, impairment losses, one-off income and expenses (including non-cash expenses) and the related tax effects. CAGR Capex EBIT EBITA EBITDA FXN Gx ROCE Gx RONOA Leverage Net debt Net finance expense Net working capial (NWC) Compound Annual Growth Rate Investments in tangible and intangible assets Earnings before interest and taxes Earnings before interests, taxes and amortization Earnings before interests, taxes and depreciation and amortization "Foreign currency neutral" - based on budgeted FX-rates Adjusted EBITA divided by capital employed (total assets minus investments, investments accounted for using the equity method and other loans, minus cash and cash equivalents, minus pensions (without pension provisions), deferred tax liabilities, and income tax liabilities, minus prepayments received, trade payables, and other non- interest bearing liabilities) The ratio of adjusted EBITA to average net operating assets, comprising the sum of property, plant and equipment and net working capital The relation of net financial debt to adjusted EBITDA of the preceding twelve months, according to the current credit facility agreement. Short and long term debt minus cash and cash equivalents Interest income and expenses and related to the net financial debt of the Gerresheimer Group. It also includes net interest expenses for pension provisions together with exchange rate effects from financing activities and from related derivative hedges. Inventories plus trade receivables minus trade payables plus/minus prepayments Op. CF margin Adjusted EBITDA plus/minus the change in net working capital, minus capex and in relation to revenues Operating cash Flow Adjusted EBITDA plus/minus change in net working capital, minus capex P/E Ratio RCF yoy Company's share price divided by the adj. EPS after non-controlling interests Revolving credit facility year-on-year 43

44 Financial calendar and contact details FINANCIAL CALENDAR February 22, 2018 Annual Report Financial Year 2017 April 12, 2018 Interim Report 1st Quarter 2018 April 25, 2018 Annual General Meeting 2018 July 12, 2018 Interim Report 2nd Quarter 2018 October 11, 2018 Interim Report 3rd Quarter 2018 CONTACT DETAILS Name Corporate Investor Relations Phone Fax IR website 44

45 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.