company presentation · driven by strong fundamentals, biopharma is a growth market 9 +6.4 % cagr...

1

Company PresentationFebruary 2019

Agenda

Sartorius in Brief01

03 Lab Products & Services

Bioprocess Solutions02

04 Sartorius 2020 and 2025

Sartorius in 2018

3Figures as of Dec. 31, 2018 1 Underlying EBITDA (excluding extraordinary items)2 As of Dec. 31, 2018; including SSB free float

~€405 mnEarnings1

~€1.6 bnSales revenue

Bioprocess and Laboratory Technologies Provider

Internationally leading

EBITDA1 margin

Sales revenue by region

~€238 mnInvestments

~33%Americas

~42%EMEA

~25%Asia | Pacific

25.9%

Listed since 1990; Part of German MDAX & TecDax

Market capitalization2 ~€9.1 bn

Global player with around 60 sales and production sites

4

India, Thailand, Singapore, Vietnam,China, Malaysia, South Korea, Japan,Australia

Netherlands, Belgium, Ireland, Israel,UK, France, Spain, Sweden, Finland, Denmark, Germany, Poland, Austria, Hungary, Switzerland, Italy, Russia, Tunisia, South Africa

EMEA

Am

eric

as

Asia

| Pac

ific

USA, Canada, Puerto Rico, Mexico, Brazil, Argentina

Production and Production/SalesSales

More than 8,100 employees worldwide

Figures as of Dec. 31, 2018 5

~1,250Americas

~5,700EMEA

~1,150Asia|Pacific

1995

1996

~7,0003,000 4,000 5,0002,000

1997 1998 1999 2001 20062002 2003 2004 2005 2008 20132009 2010 2011 2014

2000 2007 2012 2016 2018

2015

~8,000

Our corporate values

6

Roots of both divisions reach far back

Weighing TechnologyCore of Lab Division

Filtration Mainstay of Bioprocess Division

University mechanician | Company founder Florenz Sartorius invents short-beam analytical balance

Wilhelm Sartorius founds joint venture with Nobel laureate and creator of membrane filtrationRichard Zsigmondy

1870 1927

7

Sartorius focuses on Biopharma applications

Molecule developmentCell line and process development

Productionupstream & downstream

Lab Products & Services Division

8

Bioprocess Solutions Division

Quality & testing

Driven by strong fundamentals, Biopharma is a growth market

9

+6.4%CAGR

of worldwideprescription drugsales 2018-2024

9bnpeople by 2050

of which >2bn60yrs or older

Rise of biosimilars

>30%CAGR of

biosimilar sales2018-2022

Favorable R&D pipeline; strongadvances in gene and cell therapy

~8%CAGR of biopharma market

2018-2025

>40%Share of biologicsin pharma R&D

pipeline

Favorable demographics Increasing healthcare spending

Agenda





2022242628303234363840

0

200

400

600

800

1000

1200

1400

2013 2014 2015 2016 2017 2018

Sales EBITDA-Margin1

Bioprocess Solutions division snapshot

Based on FY 2018 figures 1 Excluding extraordinary items 11

Division profile

Total solution provider for biomanufacturing

High share of recurring revenues

Global footprintDynamic track record

~€1,143 mn 28.6%1

Sales revenue EBITDA1 margin

Asia|Pacific ~ 23%

Americas ~ 36%

EMEA ~ 41%

Consumables ~ 75%

Equipment ~ 25%

Sales € in millions EBITDA1 margin in % (rhs)

What are biopharmaceuticals?

12

First-time or improved treatment of serious illnesses, such as cancer, multiple sclerosis, rheumatism Targets only diseased cells; fewer side effects New vaccines

R&D and production labor-intensive

High therapy costs: biologics ~ $50 vs. chemical medications ~ $2 per day

Living, geneticallymodified cells Production Injection | Infusion

Advantages Challenges

Focusing on Biopharma for more than 15 years




13


Quality & testing

Well positioned as a Total Solution Provider across the Biopharma process chain

14

Services

Process Development Production

Fermentation PurificationCell Harvesting Buffer | PreparationCell Culture Media

Cell line developmentservices Q3 2015

Testing in biosafety andbioanalytics Q2 2015

Small-scale single-use bioreactors Q4 2013

Cell culture mediaQ1 2013

Single-use technologyfor samplingQ2 2014

Portfolio continuously enhanced via strategic acquisitions

15

Process Development Production

Software for bioprocessdata analysisQ2 2017

Single-usecentrifugesQ3 2016

High initial cost

Considerable cleaning effort

Risk of cross-contamination

16

Pioneer in single-use manufacturing technologies

PresentPast

+ CAPEX reduction over entire lifecycle

+ Lower water and energy consumption

+ Higher flexibility

Around 75% of recurrent business with single-use products

~ €1,143mn

Single-use~ 75 %

Equipment~25 %

17Figures as of Dec. 31, 2018

18

Leading market positions worldwide

>85 % of sales revenue generated from TOP 1-3 positions

Filtration TOP 3 Fluid Management #1 Fermentation #1

Agenda





101112131415161718192021222324

050

100150200250300350400450500

2013 2014 2015 2016 2017 2018

Sales EBITDA-Margin1

Lab Products & Services division snapshot

Based on FY 2018 figures 1 Excluding extraordinary items 20

Premium provider of laboratory essentials and bioanalytics platforms

Sales split

Global footprintAccelerating profitable growth

~€423 mn 18.5% Sales revenue EBITDA1 margin

Asia|Pacific ~ 28%

Americas ~ 26%

~ €423m

Consumables & services ~ 35%

Lab instruments ~ 65%

Division profile

EMEA ~ 46%

Sales € in millions EBITDA1 margin in %

Increasing strategic focus on Biopharma R&D




21


Quality & testing

Our ambition: Reduce costly trial & error in drug discovery

22

A bright idea

Drug discovery

Testing & improving

Clinical trials

Product launch

47%

1 year

1½ years

490

113

640

4½ years

Schematic example of biologic drug discovery with data from Association of the British Pharmaceutical Industry

in € mn

Drug approval

Only 1 out of 10,000 molecules make it to the market

Help researchers to fail faster

Reduce time and cost in molecule development

60

5 ½ years

Two strong pillars

23

LPS legacy product portfolio New bioanalytics businessIncuCyteLab balances Pipettes Consumables Lab water systems

Premium portfolio of essential lab instruments and consumables

Acquisition of U.S. companies: IntelliCyt (mid 2016) and Essen BioScience (early 2017)

Combination of unique technologies in the area of high throughput (IntelliCyt) and real-time quantitative analysis (Essen)

Unrivalled solutions which provide significant benefits to biopharma R&D workflows

iQue Screener PLUS

24

These products and services are must-haves in any laboratory

Pipettes andaccessories

Services

Moistureanalyzers

Microbiologicaltest kits

Balances

Lab water systems

Lab instruments, consumables and services

Strong Bioanalytics portfolio for Biopharma R&D applications

25

Innovative and unique bioanalytical platforms, complement the well-established portfolio for the sample preparation in the lab

Excellent fit in LPS Bioanalytic offering; complement areas of application and techniques, no overlapping

Significant acceleration of product development

Real-time cell analysis Cell screening

26

Leading market positions worldwide

Average global market share with lab essentials >10%

Leading bioanalytics portfolio

Lab Balances #2 Pipettes #4 Lab Filtration #3 Microb. Analysis #2(membrane based)

Agenda





On track to deliver on our 2020 goals that were set in 2011

Figures as of December 31, 2018. Sales growth and CAGR for continued operations, in constant currencies 1 Excluding extraordinary items 2 Based on Guidance

28

19.7 20.1 20.5 21.0

23.625.0 25.1

25.9slightly above27,0

~26-27

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2011 2012 2013 2014 2015 2016 2017 2018 2019e 2020e

€733 mn

~ €650 mn

~€1.6 bn

~ €2.0 bn

Sales revenue EBITDA1 margin in % Intec Division; divested in 2|2015

+13.2%+9.3%

+18.2%+16.0%

+12.6%+8.8%

+13.6% ~28

2025e2

+~7-11%

~ €4.0 bn

22

Portfolio of both divisions substantially strengthened

1 Excluding Sartorius Industrial Technologies 29

Lab Products & Services

Bioprocess Solutions

Sales ~€733m

Lab Products & Services

Bioprocess Solutions

Sales ~€1.6bn

Industrial Technologies

2011 2018

Sales ~€650m1

Essen BioScience

kSep

Umetrics

Industrial Technologies

Cellca

BioOutsource

AllPure Technologies

IntelliCyt

ViroCyt

TAP Biosystems

Biohit Liquid Handling

Lonza Cell Culture Media

Infrastructure prepared for further growth

30

Capex ratio

New ERP and extension of globalIT infrastructure

Goettingen, Germany: Extension of headquarters

Aubagne, France: Capacity extension ofbag production

Yauco, Puerto Rico: Doubling of fluid management and filter capacities ~15%

Our Sartorius 2025 targets and initiatives

2025 ambition is based on 2017 currency exchange rates; non-organic revenue growth is accounted for companies acquired from 2018 onwards; EBITDA excluding extraordinary items 31

~28% EBITDA margin

~ 2|3Organic

~ 1|3 Acquisitions

Portfolio Adding high-impact innovation, e.g. digital tools Expand into adjacent applications

Regional Participate in strong Chinese market growth Continue to outgrow the important U.S. market

Operations Accelerate workflows across the organization Extend manufacturing base in Asia

Strategic initiatives 2025 targets

~€4bn1

Sales revenue

Our Sartorius 2025 ambition per division

32

SSB | BPS

~€2.8bnSales revenue

~30% EBITDA margin

~€1.2bnSales revenue

~25% EBITDA margin

~28% EBITDA margin

Sartorius GroupLPS

~€4bn1

Sales revenue

33

Thank you very muchfor your attention

34

Fluid ManagementFermentation & Cell Culture Media

Portfolio Bioprocess Solutions

35

Portfolio Bioprocess Solutions

Filtration Purification

36

Portfolio Lab Products & Services

Lab Balances Pipettes

37


Lab Water SystemsBioanalytical Technologies

38

Lab Filtration Microbiological Quality Control


Further Lab Instruments

Disclaimer

This presentation contains statements concerning Sartorius Groups’ 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 forward-looking statements.

Throughout this presentation, differences may be apparent as a result of rounding during addition.

39

company presentation · driven by strong fundamentals, biopharma is a growth market 9 +6.4 % cagr...

Documents