Gilbert Dupont Healthcare Conference

Transcription

1 Gilbert Dupont Healthcare Conference Paris May 21, 2015

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 they will actually materialize. This is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantially from the expected ones. It is not planned to update our forwardlooking statements. Throughout this presentation, differences may be apparent as a result of rounding during addition.

3 Agenda Q Results Guidance 2015 Growth Prospects Company Overview Business Model Appendix

4 Continuing Strong Growth on All Lines Sartorius Stedim Biotech in million (unless otherwise specified) 3M M 2015 Change Change in cc 1) Sales Revenue in million Order intake % 17.1% Sales revenue % 21.5% Underlying EBITDA 2) % % cc Underlying EBITDA margin bps Underlying EPS 3) in % Q1 14 per qtr Q Order intake: fueled by strong demand for single use products and large equipment orders, delivery partly in 2016 Sales revenue: growth rate inflated by low comps; however, excellent performance ahead of expectations driven by all product lines Underlying EBITDA margin: up by 320 bps driven by economies of scale and fx-effects 1) cc= constant currencies 2) Underlying = excluding extraordinary items 3) Underlying EPS = based on net profit after noncontrolling interest, adjusted for extraordinary items, amortization and based on a normalized financial result and tax rate 4

5 Sales Growth Supported by All Regions Americas Sales 1) in million EMEA Sales 1) in million Asia Pacific Sales 1) in million Sales 1) by Regions in % EMEA ~ 48% mn Americas ~ 34% 3M14 3M15 3M14 3M15 3M14 3M % % % Definition of regions slightly changed; growth in constant currencies Asia Pacific ~ 18 % Dynamic business expansion in the Americas compared with a low base in Q Double-digit growth in EMEA due to strong demand for SU-products and equipment Continued sound development in Asia Pacific 1) According to customers location 5

6 P&L Impacted by Fx-Effects Sartorius Stedim Biotech Group in million 3M M 2015 Change Underlying EBITDA % Extraordinary items % Financial result n.m. Underlying net result 1) % Reported net result % Financial result burdened by derivatives fx-loans; mainly non-cash effective Net operating cash flow influenced by working capital build-up Net investing cash flow in line with expectations Net operating cash flow % Net investing cash flow 2) % 1) Underlying net result = net profit adjusted for extraordinary items, amortization and based on a normalized financial result and tax rate 2) Net cash flow from investing activities and acquisitions divestments 6

7 Financial Position Remained Strong Key Financial Indicators Net Debt to Underlying EBITDA Sartorius Stedim Biotech Group Dec March Equity ratio in % Net debt in million Net debt underlying EBITDA Q1-Q4 Q1-Q4 Q1-Q4 Q1-Q Q Net debt in mn (lhs) Net debt to underlying EBITDA (rhs) 7

8 Guidance 2015 Raised Previous 1) New 1) Sales revenue growth ~ 4% - 7% ~ 7% - 10% Underlying EBITDA margin ~ % ~ % Capex ratio ~ 6% - 8% 1) In constant currencies 8

9 Agenda Q Results Guidance 2015 Growth Prospects Company Overview Business Model Appendix

10 Strong Track Record of Profitable Growth Sales Revenue in million Earnings EBITDA 1) & margin CAGR ~ 12% CAGR ~ 17% ) Excluding extraordinary items 10

11 2020 Ambitious Long-Term Targets Supported by Growth Inititatives ~ 1.5 bn Sales Revenue ~ 28% ~2 3 Organic ~1 3 Acquisitions EBITDA margin 1) Strategic Initiatives Regional Growth Portfolio Extension Infrastructure Expansion 1) Excluding extraordinary items 11

12 Continuous Market Share Gains in the Americas Share of Sales 1) Sales Development Footprint Global biotech market ~ 50% CAGR 2) ~ 18% SSB ~ 32% New Oxford, USA Bohemia, USA Wilmington, USA Mexico City, Mexico Yauco, Puerto Rico Sales Production Biggest single market for biopharma Go-to-market initiative successfully executed; continuous market share gains Low double-digit organic growth rates targeted for the next years Figures in million; 1) FY 2014 Americas region 2) Constant currencies 12

13 Growth Initiative Asia: Leverage Strong Market Growth Share of Sales 1) Sales Development Footprint 100% 75% Other Japan CAGR 2) ~ 16% Beijing, China Shanghai, China Seoul, Korea Tokyo, Japan ~ 21% 50% 25% India South Korea 95.1 Bangalore, India Kuala Lumpur, Malaysia Singapore, Singapore China 0% Sales Production Dynamic market growth; Asia is the center for global biosimilars development New sales headquarters in Shanghai opened in 2013; new test & training lab in 2014 Continued double-digit organic growth projected for the next few years Melbourne, Australia Figures in million; 1) FY 2014 Asia Pacific region 2) Constant currencies 13

14 Emerging Biosimilars Market Offers Additional Growth Opportunities Strong biosimilars pipeline driven by patent expiries Biosimilars market forecast to expand fourfold, reaching $10bn by 2020 > 200 companies have > 700 biosimilars in global R&D pipelines Production capacities mainly built up in Asia First biosimilar approved in Europe in 2007; first approval by FDA in March 2015 Source: IMS MIDAS, 06/2013, IMS patent focus; Copaxone may see a conventional generic copy, not a biosimilar; Biosimilars Set to Revolutionize Global Drug Development Industry, Thomson Reuters, Sept

15 Portfolio Continuously Enhanced In-Line with Strategy ~ 588 mn ~ 477 mn Lonza Cell Culture Media TAP Biosystems AllPure Technologies BioOutsource 1) FY 2011 Sales Q Q Q FY 2014 Sales 1) Acquisition announced April 17,

16 Extension of SSB s Offering Through Acquisition of BioOutsource BioOutsource provides contract testing services to monitor the quality and safety of biologics Comprehensive suite of services, particularly for the biosimilars industry Headquartered in Glasgow; sales revenues of ~ 9 mn; ~ 85 employees Strong complementary fit with SSB s offering Validation Services Analytical Services Comparability testing Immunogenicity testing Lot release and stability testing Process Upscaling Biopharma customers Biosafety Services Cell bank characterization Bulk harvest characterization Lot release and stability testing Process Optimization Cell Culture Media 16

17 Acquisitions Remain Part of Our Strategy Acquisition Criteria Portfolio Complementary products or technologies Market Position Either among the Top 3 or unique position Integration Management capacity; cultural fit Price Fair valuation; reach Sartorius profitability level in 2-3 years Market environment: Increasingly consolidated due to numerous transactions Start-ups with innovative technologies 17

18 Continued Capacity Extension to Accommodate Growth Capex Ratio in % of sales revenue ~ e 1) Modernize and expand production capacity in UK for SSB s lab products Multi-year investment program to expand Goettingen site Further extension of membrane production capacity; additional R&D and application labs Capacity expansion at bag site in Tunisia Capex ratio projected at ~ 6% - 8% for 2015; expected to remain in this corridor for the next few years 1) Based on 2015 guidance 18

19 Agenda Q Results Guidance 2015 Growth Prospects Company Overview Business Model Appendix

20 Sartorius Stedim Biotech in Brief Sales revenue ~ 684 mn Sales Share 2) EBITDA 1) ~ 160 mn EBITDA 1) margin 23.5% Employees ~ 3,700 Americas ~ 32% EMEA ~ 47% Asia ~ 21% Market capitalization ~ 2.5 bn FY 2014 data 1) Underlying = excluding extraordinary items 2) Acc. to customers location; definition of regions slightly changed 20

21 Solution Provider for Biomanufacturing Supplier of key production technologies for the strongly growing biopharma industry Product quality & safety and supply security are decisive factors due to significant regulatory requirements (validated processes) Paradigm shift towards single-use solutions driven by multiple advantages SSB with broadest product portfolio in the industry, with a clear focus on single-use Single-use ~ 75 % Equipment ~ 25 % ~ 684 mn FY 2014 data 21

22 SSB Operates in a Healthy Market Environment CAGR 1) 6-8% Market Growth 16% % % Conventional Unclassified Biotechnology Overproportionate Growth of Biopharma Market Past Present Technology Trends From Multi-Use to Single-Use 1) Biotech market; Evaluate Pharma: World Preview ; June

23 The Widest Product Portfolio Across the Biopharma Process Chain Upstream Bioprocessing Downstream Bioprocessing Media Preparation Seed Fermentation Production Fermentation Cell Removal Clarification Capture Polishing Viral Clearance Formulation Final Fill Services Evaluation & Optimization Engineering & Design Implementation & Technical Services 23

24 Leading Positions in Key Technology Platforms Filtration Fluid Management Fermentation Purification Cell Culture Media SSB Merck Millipore Pall Thermo GE Top 3 Players 1. Pall 2. Merck Millipore 3. SSB 1. SSB 2. Thermo Fisher 3. Merck Millipore 1. SSB 2. Thermo Fisher 3. GE 1. GE 2. Merck Millipore 3. Pall 1. Thermo Fisher 2. Sigma 3. GE Pie charts indicate completeness of product offering Announced acquisitions of Sigma-Aldrich by Merck Millipore and Pall by Danaher not yet considered 24

25 100% Direct Business With Limited Dependence on Individual Accounts Sales to Top 50 customers in 2014, in million ~25% ~35% ~40% ~45% ~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 2014 revenue was generated with the Top 50 customers No individual customer accounts for more than 5% of sales revenue No single drug accounts for more than 2% of sales revenue 25

26 Agenda Q Results Guidance 2015 Growth Prospects Company Overview Business Model Appendix

27 Shareholding Structure ~ 26 % Sartorius 1) (~ 85 % of voting rights) Free float (~ 15 % of voting rights) ~ 74 % Total number of shares 2) Total number of voting rights 2) ~ 15.4 million ~ 27.0 million 1) Sartorius AG and VL Finance, which is 100% controlled by Sartorius AG 2) As of March

28 Strong Worldwide Presence Rotterdam Vilvoorde Epsom Royston Herlev Wilmington Bohemia New Oxford Glasgow Dublin Stonehouse Tagelswangen Lourdes Madrid Aubagne Goettingen Guxhagen Budapest Vienna Florence Mohamdia Poznan Beijing Seoul Tokyo Mexico City Yauco Hanoi Bangalore Kuala Lumpur Singapore São Paulo Buenos Aires Melbourne Sales Production Production and Sales 28

29 Further Driving Differentiation in Upstream Bioprocessing SU bioreactors up 2,000L SU media prep solutions up to > 2,000L Process engineering services Cell culture media SU & stainless steel options Scalable, automated SU multi-parallel bioreactors Sensors, chemometrics, data management SSB Announced acquisition of Sigma-Aldrich by Merck Millipore not yet considered 86 29

30 Main Credit Facility Refinanced in 2014 Attractive credit market conditions used 250 million syndicated loan terminated ahead of schedule New syndicated loan agreement entered into by Sartorius AG Since end of 2014 Sartorius Stedim Biotech uses a credit line of 300 million provided by Sartorius AG Annual cost savings of ~ 1 million 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, Human Ressources, Compliance, Legal Affairs, Corporate Communications Production, Supply Chain Mgmt., Business Process Mgmt., Information Technology Research & Development Marketing, Sales & Services 31

32 Financial Calendar July 21, 2015 Publication of half-year 2015 figures October 20, 2015 Publication of nine-month 2015 figures January 2016 Publication of preliminary full-year 2016 figures April 5, 2016 Annual General Shareholders Meeting, Aubagne 32

33 Contacts Petra Kirchhoff Vice President Corporate Communications & IR Phone: Andreas Theisen Director Investor Relations Phone: Sartorius Corporate Administration GmbH Weender Landstrasse Goettingen, Germany 33