Investors Presentation. May 2017

Transcription

1 Investors Presentation Ma 2017

2 Disclaimer This presentation contains statements concerning the future performance of the Sartorius Group. 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 forward-looking statements. Throughout this presentation, differences ma be apparent as a result of rounding during addition.

3 Agenda 01 Q Results FY 2017 Guidance 02 Compan Overview and Business Model 03 Mid-term Growth Prospects 04 Appendix

4 Successful start to the ear Sartorius Group in millions of unless otherwise specified Q Q in % in % cc 1 Sales revenue Order intake Underling EBITDA Underling EBITDA 2 margin in % Underling EPS 3,4 (ord.) in Underling EPS 3,4 (pref.) in Capex ratio in % 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 Q adjusted for stock split; rounded values 4

5 Growth led b Asia Pacific; moderate start in the Americas Americas in millions EMEA in millions Asia Pacific in millions Sales b Region in % EMEA ~ 44% Americas ~ 33% 58.6 ~ 343m Asia Pacific ~ 23% Q1 16 Q1 17 Q1 16 Q1 17 Q1 16 Q % +8.9 % % Acc. to customers location; growth in constant currencies Americas: BPS influenced b softer customer demand and temporaril limited deliver capacities for cell culture media; LPS growth largel driven b recent acquisitions EMEA: Performance fueled b sound organic growth, esp. of LPS, and acquisitions Asia Pacfic: Both divisions achieved strong double-digit growth vs. modest comps 5

6 BPS: Significant growth in view of normalized market conditions Order Intake in millions Sales Revenue in millions Underling EBITDA & Margin in millions +10.1% cc +9.4% cc +12.1% +11.5% +10.7% % 27.2% Q1 16 Q1 17 Q1 16 Q1 17 Q1 16 Q1 17 Substantiall above-average market growth rates over the last two ears returned to normal levels, as expected All product segments contributed to growth, except for cell culture media Underling EBITDA margin up b 0.3 pp due to economies of scale 6

7 LPS: Dnamic performance due to organic growth and acquisitions Order Intake in millions Sales Revenue in millions Underling EBITDA & Margin in millions +21.4% cc +21.0% cc +43.1% +23.1% +22.7% % 17.7% Q1 16 Q1 17 Q1 16 Q1 17 Q1 16 Q1 17 Strong organic growth of ~10% driven b all regions and all product categories Recent acquisitions (IntelliCt, ViroCt and Essen) contributed ~11 pp to sales growth Sharp increase in earnings driven b economies of scale related to strong organic growth and acquisitions 7

8 Cash flow influenced b Essen acquisition Sartorius Group in millions Q Q in % Underling EBITDA Extraordinar items Financial result Underling net profit 1, Reported net profit Net operating cash flow Net investing cash flow n.m. Financial result in Q benefited from valuation effects of derivatives fx loans Net operating cash flow influenced b an increase in working capital and higher tax paments Net investing cash flow primaril reflects the acquisition of Essen BioScience; capex increased, as planned 1 Underling net profit = net profit adjusted for extraordinar items, amortization and based on a normalized financial result and tax rate 2 After non-controlling interest 3 Net cash flow from investing activities and acquisitions 8

9 Financial position remains ver robust Ke Financial Indicators Net Debt to Underling EBITDA Sartorius Group Dec. 31, 2016 Mar. 31, Equit ratio in % Net debt in millions of Net debt underling EBITDA Q1-Q Q1-Q Q1-Q Q1- Q Q Net debt in m (lhs) Net debt to underling EBITDA (rhs) 9

10 Recentl upgraded outlook confirmed 1 In constant currencies Sales Revenue Growth 1 Q FY 2017 Guidance 1 Underling EBITDA Margin Sales Revenue Growth Sartorius Group 12.2% 24.7% ~ 12% - 16% Bioprocess Solutions 9.4% 27.2% ~ 9% - 13% Lab Products & Services 21.0% 17.7% ~ 20% - 24% 1 In constant currencies Underling EBITDA Margin > +0.5pp (FY 2016: 25.0%) ~ +0.5pp (FY 2016: 28.0%) nearl +2.0pp (FY 2016: 16.0%) Expected non-organic growth to be contributed b Essen (LPS) and Umetrics (BPS): LPS ~14 pp; BPS ~1 pp; Group ~4 pp Positive consolidation effect for BPS is expected to be compensated b the temporaril limited deliver capacities for cell culture media in North America Capex ratio ~ 12% - 15% 10

11 Agenda 01 Q Results FY 2017 Guidance 02 Compan Overview and Business Model 03 Mid-term Growth Prospects 04 Appendix

12 Sartorius at a glance International leading Bioprocess and Laborator Technologies Provider Sales Revenue EBITDA 1 Margin 1.3bn 25.0% ~34% Americas ~44% EMEA ~22% Asia Pacific Emploees Market Cap. 2 > bn 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 March 31, 2017; excluding SSB free float 12

13 Strategic focus on biopharma market ~ 75% of Group Sales Bioprocess Solutions Division Molecule Development Cell line and Process Development Qualit Qualit and & Testing Production Upstream & Downstream Lab Products & Services Division ~ 25% of Group Sales 13

14 Biopharma market growth driven b strong long-term trends Growing and aging 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 14

15 Bioprocess Solutions Unique position in an attractive market Solution Provider for Biomanufacturing Highl regulated environment validated processes Broadest portfolio in the industr; ii~ 75% recurring revenues Sales revenue 975mn EBITDA 1 margin 28.0% Figures based on FY 2106 results; 1 Excluding extraordinar items 15

16 Bioprocess Solutions 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 Contaminents such as viruses Simplified diagram 16

17 Bioprocess Solutions 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 17

18 Bioprocess Solutions 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 ~ +13.5% Organic CAGR 1 4 Market share gains Esp. in North America 1 CAGR 2011 to 2016, excluding fx effects and acquisitions 18

19 Bioprocess Solutions Recent acquisition strengthens competence in data analtics 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 Annual sales of ~$15mn; significant double-digit profitabilit Acquired in earl April; purchase price of $72.5mn 19

20 Lab Products & Services Strong laborator business platform created since 2012 Premium Lab Portfolio for R&D and QA Expert in sample prep.; unique bioanaltics offering Global sales & service infrastructure established Sales revenue 325mn EBITDA 1 margin 16.0% Figures based on FY 2106 results; 1 Excluding extraordinar items 20

21 Lab Products & Services Sound market position in ke categories for sample prep. Lab Balances #2 Pipettes #4 Lab Filtration #3 Microb. Analsis #2 Average global market share of > 10% Significant growth potential, especiall in U.S. and Asia (membrane based) 21

22 Sales Channels Lab Products & Services Enhance direct sales activities to drive market share gains Distributors optimize Field force expand ebusiness build Pharma Biotech Academia Others 22

23 Lab Products & Services Bioanaltics offering recentl expanded through acquisition of Essen Pioneer and innovation leader in cell analsis sstems for pharmaceutical research Headquartered in Ann Arbor, Michigan; ~ 150 emploees Annual sales of ~$60mn expected for 2017, profitabilit about at Group levels Transaction closed at the end of March; purchase price of $320mn Sstem solution consists of an instrument, software, reagents and consumables for image-based cell analsis Full automated time-lapse-image capture within the incubator and over a longer period Analzes, for example, cell health, morpholog and movement Delivers deep insights into biological processes; speeds up molecule development, e.g., in cancer research 23

24 Lab Products & Services Ideal fit between Essen and IntelliCt Both businesses address the same customers, i.e. biopharma and academia labs Complementar applications and unique technologies; no direct competition Combination of high throughput (IntelliCt) and real-time quantitative analsis (Essen) creates the broadest and most innovative cell analsis portfolio for biopharma applications 24

25 Lab Products & Services Scalable business with considerable growth and margin potential Well established sample prep. portfolio Premium instruments and consumables offering with strong global positions Significant market share opportunities in certain regions to be addressed primaril b direct sales force Unique bioanaltics portfolio established Innovative and unrivalled technologies added through recent acquisitions Combination with Sartorius global reach provides significant growth potential 25

26 Agenda 01 Q Results FY 2017 Guidance 02 Compan Overview and Business Model 03 Mid-term Growth Prospects 04 Appendix

27 Sales revenue doubled in the last 5 ears Sales CAGR ~ +14% EBITDA 1 Margin +5.3pp +13.6% 733m +8.8% +12.6% +16.0% % 1.3bn ~ 650m Sales revenue EBITDA 2 margin in % Intec Division; divested in Continued operations; sales growth and CAGR for continued operations, in constant currencies 2 Excluding extraordinar items 27

28 Well on track to reach 2020 targets Strategic Initiatives Regional Further grow qualit and presence of sales force Gain share in North America Leverage market growth in Asia 2020 Targets ~ 2 bn 1 Sales revenue Portfolio 11 acquisitions executed since 2011 Intec division divested ~ 3 4 Organic ~ 1 4 Acquisitions Infrastructure Continuous expansion of existing global production network Roll out of new ERP and additional IT sstems ~ 26-27% 1 EBITDA 2 margin 1 Based on 2015 fx rates 2 Excluding extraordinar items 28

29 Regional Portfolio Infrastructure Gain market share in North America; leverage strong market growth in Asia ~ +18% CAGR 1 Americas Sales share ~ +14% CAGR 1 Asia Pacific Mississauga Bohemia Ann Arbor Albuquerque New Oxford Mexico Cit Yauco Asia Pacific ~ 22% Americas ~ 34% ~ 1.3bn Bangalore Beijing Seoul Suzhou Toko Shanghai Hanoi Bangkok Hong Kong Kuala Lumpur Singapore Production Sales Sales Production Sales Sales North America: the largest market for biopharma and lab products Asia: the strongest growing pharma and lab market 1 CAGR 2011 to 2016, in constant currencies 29

30 Regional Portfolio Infrastructure Portfolio enhanced b eleven 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 valuation; reach Sartorius profitabilit level in 2-3 ears Biohit Liquid Handling 2011 TAP Biosstems Lonza Cell Culture Media AllPure Technologies Industrial Technologies Division ksep Sstems ViroCt IntelliCt Essen Bioscience

31 Regional Portfolio Infrastructure Investments at high levels due to strong organic growth Capex Ratio in % Expansion ~ e 2 Significant expansion of production capacities initiated in 2016; earlier and to a greater extent than initiall planned Capacities at Yauco plant for single-use bags and filters will be more than doubled Expansion of operations at headquarters in Goettingen, e.g. additional membrane capacities Further investments into digitalization (ERP, CRM, etc) Capex ratio expected to peak in 2017 and to remain above long-term average in Incl. discontinued operation 2 Based on FY 2017 guidance 31

32 Agenda 01 Q Results FY 2017 Guidance 02 Compan Overview and Business Model 03 Growth Prospects 04 Appendix

33 Ordinar shares Preference shares Sartorius legal & operational structure Sartorius Group Legal Setup Sartorius AG Stock market listed in German ~ 50% Administered b executor ~ 34% Bio-Rad Laboratories ~ 9% Treasur shares ~ 5% Famil owned ~ 2% Free float ~ 91% Free float ~ 9% Treasur shares ~ 74% ~ 100% Sartorius Stedim Biotech S.A. Stock market listed in France ~ 74% Sartorius AG ~ 26% Free float Other Sartorius Subsidiaries Sartorius Group Operational Setup Bioprocess Solutions Division Lab Products & Services Division 33

34 Ke account business with limited dependence on individual accounts Sales to Top 50 customers in 2016, in millions ~30% ~40% ~45% ~50% ~55% Cumulative share Top to to to to 50 Long term business relationships with leading global (bio-)pharma companies Limited dependence on individual accounts More than half of 2016 BPS sales were generated with the Top 50 customers No individual customer accounts for more than 5% of BPS sales revenue No single drug accounts for more than 3% of BPS sales revenue 34

35 Bioprocess Solutions 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. Sartorius Fluid Management 1. Sartorius 2. Thermo Fisher 3. Merck Millipore Fermentation 1. Sartorius 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 35

36 Bioprocess Solutions 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 36

37 European home market; Americas and Asia gaining significance ~ 34% Share of Sales Americas Albuquerque Mexico Cit Ann Arbor Epsom Bohemia New Oxford Yauco Dublin Rotterdam Vilvoorde Roston Glasgow Stonehouse Laupheim Tagelswangen Aubagne Lourdes Madrid Milan Kajaani Helsinki St. Petersburg Malmö Goettingen Guxhagen M Hamdia ~ 44% Share of Sales EMEA Budapest Florence Poznan Vienna Bangalore Moscow Beijing Hanoi Bangkok Kuala Lumpur Suzhou ~ 22% Share of Sales Asia Pacific Singapore Seoul Toko Shanghai Hong Kong Global Presence: > 30 sales and 20 manufacturing sites São Paulo Buenos Aires Sales Production Production and Sales Melbourne 37 Page 1

38 Extract of the Bioprocess Solutions product portfolio Filtration Purification Fluid Management Fermentation & Cell Culture Media 38

39 Extract of the Lab Products & Services product portfolio Lab Balances Lab Water Sstems Bioanaltics Filtration Lab Filtration Pipettes 39

40 Executive Board of Sartorius AG Joachim Kreuzburg, CEO since 2003 Corporate Strateg, Legal & Compliance, Operations, Communications, Human Resources Rainer Lehmann, CFO since March 2017 Finance, IT, Business Processes Reinhard Vogt since 2009 Marketing, Sales & Services 40

41 Financial calendar and contacts Ma 17, 2017 UBS Small- and Mid-Cap Conference London June 21, 2017 db Access Conference Berlin 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