Investors Presentation. June 2018

Transcription

1 Investors Presentation June 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 01 Q Results FY 2018 Guidance Compan Overview Business Model Mid-term Growth Prospects Appendix

4 Good start into the ear with continued positive momentum Sartorius Stedim Biotech Group in millions of unless otherwise specified Solid increase in revenues and profit All product segments contribute to growth, cell culture media business stabilized Underling EBITDA margin affected b currenc effects Q Q in % in % cc 1 Sales revenue Order intake Underling EBITDA Underling EBITDA 2 margin in % pp Underling EPS 3 per share in Capex ratio in % pp 1 Constant currencies 2 Underling = excluding extraordinar items 3 Underling EPS = based on net profit after non-controlling interest, adjusted for extraordinar items, amortization and based on a normalized financial result and tax rate 4

5 Growth strong in Asia Pacific and solid in EMEA and the Americas Americas in millions EMEA in millions Asia Pacific in millions Sales b Regions in % EMEA ~ 44% Americas ~ 33% ~ 281m Q117 Q118 Q1 17 Q % +5.0% Q117 Q % Asia Pacific ~ 23% Acc. to customers location; growth in constant currencies Americas: Solid business development but FX headwinds EMEA: Robust growth in sales revenue and dnamic order intake Asia Pacific: Strong double-digit sales growth against high comps 5

6 Significant increase in operating cash flow Sartorius Stedim Biotech Group in millions Q Q in % Underling EBITDA Extraordinar items Financial result Underling net profit Reported net profit Increase in extraordinar items in line with expectations Net operating cash flow influenced b lower tax pament Net investing cash flow reflects execution of CAPEX program 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 6

7 Financial position remains strong Ke Financial Indicators Net Debt and Net Debt to Underling EBITDA Sartorius Stedim Biotech Dec. 31, 2017 Mar. 31, 2018 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) 7

8 Outlook for 2018 confirmed FY 2017 FY 2018 Guidance 1 Sales revenue growth 1 4.1% ~ 7% - 10% Underling EBITDA margin 27.3% ~ +0.5pp Capex ratio 12.6% ~ 15% 1 In constant currencies Growth guidance includes non-organic contribution b recent acquisition: ~ 0.5pp As a result from the US tax reform, SSB s tax rate is expected to decrease from 2018 onwards b 2pp to around 26% 8

9 Agenda 01 Q Results FY 2018 Guidance Compan Overview Business Model Mid-term Growth Prospects Appendix

10 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 ~ 7.4bn 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 Ma 7,

11 Unique position in an attractive market Solution Provider for Biomanufacturing Highl regulated environment validated processes Broadest portfolio in the industr; ~75% recurring revenues 11

12 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 12

13 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 13

14 Market fundamentals remain ver attractive Favorable demographics 9bn people b 2050 of which >2bn 60rs or older Rise of biosimilars >50% CAGR of 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 14

15 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 15

16 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

17 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 17

18 Agenda 01 Q Results FY 2018 Guidance Compan Overview Business Model Mid-term Growth Prospects Appendix

19 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 ~ m Sales revenue EBITDA 1 margin in % Sales growth and CAGR in constant currencies 1 Excluding extraordinar items 19

20 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 20

21 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 21

22 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 22

23 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 1 Based on FY 2018 guidance 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

24 Agenda 01 Q Results FY 2018 Guidance Compan Overview Business Model Mid-term Growth Prospects 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 30

32 Financial calendar and contacts June 08, 2018 SocGén Mid Caps Conference Nice Jul 24, 2018 Publication of First-half 2018 Results October 23, 2018 Publication of Nine-month 2018 Results November 14, 2018 SocGen Sustainabilit Conference Paris Petra Kirchhoff Vice President Corporate Communications & IR Phone: Ben Orzelek Director Investor Relations Phone: Sartorius Corporate Administration GmbH Otto-Brenner-Str Goettingen, German 31