Sartorius Berenberg & Goldman Sachs 20120924.ppt ... Bank & Goldman Sachs ... Seite 2 This presentation contains statements concerning the Sartorius and Sartorius ... Stable pricing

Page 1

Dr. Joachim Kreuzburg, CEO

Berenberg Bank & Goldman Sachs Inaugural German Corporate Conference, Munich | September 24, 2012

PresentationSartorius

Seite 2

This presentation contains statements concerning the Sartorius and Sartorius Stedim Biotech 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.

Disclaimer

Agenda

1

2

Business Overview

Seite 3

4

Bioprocess Solutions

Lab Products & Services

5

Current Key Projects

H1 2012 Results | Guidance 2012

6 Appendix

3

Page 4

Sartorius at a Glance

2011 Figures; EBITDA and EBITA excluding extraordinary items 1) Based on 2011 pro forma figures; according to customers’ location

Sales Split by Divisions1) Sales Split by Regions1)

Bioprocess Solutions 53%

Lab Products & Services 34%

Industrial Weighing13%

Europe ~53% Asia ~23%

North America ~20 %

Other Markets ~4%

Sales

Employees

EBITDA1)

EBITA1)

€733.1m

4,887

€136.6m

€112.2m

4

Page 5

SingaporeKuala Lumpur

Bangalore

Hanoi

TokyoBeijing Seoul

Hong Kong

Makati CityBangkok

Chennai

ShanghaiSuzhou

Mississauga

Mexico City Yauco

Neptune

Denver Bohemia

Concord

São Paulo

Buenos AiresMelbourne

KajaaniHelsinki

St. PetersburgMoscow

GoettingenHamburg

AachenTaastrup

PoznanFrankfurt

Guxhagen

LourdesAubagne

M’HamdiaMilan

Florence

TagelswangenViennaBudapest

Madrid

Nieuwegein

Vilvoorde

Paris

Epsom

StonehouseDublin

Torquay

Sales Production | Production and Sales

Global Presence: 33 sales and 18 manufacturing sites

Highlights of Sartorius’ Core Divisions

Seite 3

More than 85% of sales generated from global TOP 1-3 position

Strong base in all growth regions; Asia accounts for 22% of sales

Scalable business model with attractive incremental margins

Proven track record with alliances and acquisitions

Clear focus on fast-growing businesses, especially the highly attractive biopharma market 1

2

3

4

5

6

Agenda

1

2

Business Overview

Seite 3

4



5



6 Appendix

3

Strong Long-Term Trends Drive Further Growth

Global Trends

Trends in Biomanufactoring

Higher yields, higher efficiencies in cell culture

Increasing cost pressure

Personalized medicine

Single-use Technologies

Double-digit growth

Highest growth in innovative segments, e.g. bioreactors, fluid management

Global Trends

Aging population in Western countries

Increasing access to therapeutics and vaccines in developing economies

Growing number of chronic and civilization diseases

Trends toward Biotech

Strong pipelines, e.g. mAbsand vaccines

Continued penetration in already approved indications

Label expansions

Increasing share of biologics approvals

Phase III | reg. Phase II Phase IMarketed

0

20

40

60

80

100

120

140

1

Biopharma Market Grows

Total Pharma Market

856

Total Pharma Market 1080

2010 2015

CAGR3-6%

CAGR6-9%

Biotech 195

Biotech 138

Page 8

Global mAb Pipeline1)

1) DataMonitor Monoclonal Antibodies 2010, HC00029-002 Slidepack 10/10

IMS Market Prognosis, April 2011. In US$ bn.

8

Page 9

Our Focus: Production Processes of Biologic Drugs

Pre-clinical Phase

Industrial Production

Clinical Phase I

ClinicalPhase II

ClinicalPhase III

Process development

Drug | Vaccine

Increasing volumes along the process chain

ApprovalValidated Process

Highly regulated markets (FDA, EMEA, GMP, etc.) Sartorius products are part of the approval documentation High entry barriers for new competitors Stable pricing and attractive margins

9

Page 10

The Widest Product Portfolio Along Biopharma’s Process Chain

MediaPreparation

Mixing Systems Sterile Filters Storage Bags Virus Inactivation

Technologies

Fermentation |Cell Culture

Seed Bioreactor Production Bioreactor Freeze-Thaw Techno-

logies

Cell Harvesting

Cell Removal & Clarification Filters

Crossflow Systems & Consumables

Configurable Solutions Sterile Filters

Value Added Services

PurificationBuffer Preparation

Single-Use-Mixing Technologies

Bags & Tanks Monitoring &

Control Technologies

Key Production Steps

Crossflow Systems & Consumables

Membrane Chromatography

Virus Inactivation Technologies

Sterile Filters

10

Page 11

Equipment~25%

Single-Use~75%

~ €410m

11

75% Recurring Business; Attractive Incremental Margins

Page 121) Own estimates 2) Pharmaceutical Technology Europe Vol. 22 No. 10, Oct. 2010; own estimates

Past Present Future

10 – 20%

30 – 40%

70 – 80% CAPEX reduction

Lower cleaning costs | validation

Downtime reduction, i.e. higher equipment utilization

Enhanced process performance

Reduced risk of cross-contamination

Fewer CO2 emissions

Higher flexibility

Market Penetration of Single-use Products1)

Compelling Value Proposition Drives Single-Use Penetration

Reduction of life-cycle production costs by 15 % to 40 %2)

12

Page 13

Leading Worldwide Market Positions

Filtration

amongTOP 3Fermentation

#1Fluid Management

#1

Competitive Landscape

Pall

Merck Millipore

Thermo Fisher

ATMI

Merck Millipore

NBS (Eppendorf)

Applikon

ABEC

GE

Thermo Fisher

13

Page 14

New Product Launches in Bioprocess Solutions

Orthogonal Platform for Polishing

Sartopore® Platinum - Capsules for sterile filtration

FlexMoSysTM – Easy to set up cleanroom systems1)

Biostat STR® - Single-use bioreactors up to 1,000 L

1) Cooperation with G-CON

14

Agenda

1

2

Business Overview

Seite 3

4



5



6 Appendix

3

Page 16

New Focus on Lab Instruments, Consumables and Services

Focus

Standard lab instruments used in daily routine in QA|QC and research labs

Need for consumables

Demand for services

Rationale

Excellent brand & reputation

Strong market position, esp. balancesand pipettes

Global sales & service infrastructure

Attractive margins (product gross margins 50%+)

1) Pro forma 2011 including Biohit LH

Lab Consumables & Services~ 33 %

~€260m1)

Substantial Organic Growth Opportunity

Lab Instruments~ 67 %

16

Page 17

Targeting a >$3 Billion Market

Academia ~20%

Food & Beverage, Chemicals, Other ~40%

Pharma | Biotech ~40%

Chemicals, Reagents & Kits 29%

Consumables 36% Instruments & Equipment 35%

~$39bn> $2.5bn

Key Market Characteristics

Fragmented market Solid market growth Attractive margins Distributors obtain significant market share Services represent key success factor

Key Market Drivers

Global & industry-specific growth Public and private R&D spending Expansion of emerging markets Improving product features

1) Frost & Sullivan, 2010 Annual Forecast and Analyses of the Global Market for Laboratory Products 2) Sartorius estimates

> $3bn

Targeted Instruments & Consumables Market 2)Global Laboratory Products Market1)

17

Page 18

Strong Position in Key Categories

Mettler Toledo Eppendorf

Mettler Toledo

Thermo Fisher

Gilson

Merck Millipore

Elga

Thermo Fisher

Among the

TOP 4Among the

TOP 4

Competitive Landscape

Merck Millipore

Pall

GE Whatman

Among the

TOP 3

Lab water systemsPipettesLab balances Consumables

#2

18

Page 19

Additional Differentiation Based on High-value Services and Consumables

Consumables& accessories

Labinstruments

Services

+

+

Qualification Maintenance Calibration

Maintenance Calibration Repairs

Installation Qualification Maintenance

Installation Qualification Maintenance

Pipettes

Filter unitsCartridgesPipette tips Pans | Filters

Balances Sterility testing systems

(w/pump)Lab water purification

systems

19

Page 20

New Product Launches in Lab Products & Services

Biohit Picus – Ergonomic electronic pipette

Three new arium® lab water systems and bagtanks

Secura® - Weighing in regulated environments

Vivaspin® 15 turbo–Solutions for sample concentration

20

Agenda

1

2

Business Overview

Seite 3

4



5



6 Appendix

3

Page 22

Industrial Weighing Division – Sales Process under Way

1) 2011 figures, excluding extraordinary items

￭ Sales revenue of ~ €100m; underlying EBITDA margin at ~ 12%1)

￭ High product quality and robust gross margins

￭ Relatively low market share in most geographies

￭ Industrial Weighing reorganized as independent business unit as of 2011

￭ Greater potential for development under new ownership

￭ No urgency for sale; decision depending on terms

Tank & Hopper solutions Industrial Scales Checkweigher

22

Page 23

Sartorius 2020: Striving for Continued Profitable Growth

500

10.1

20101)20091) 20111)2008

Sales revenue in €m Underlying EBITA margin

750

2012E1)2)

250

15.3

9.3

13.0

~15.3

20201)0

1) Excluding extraordinary items 2) Based on 2012 guidance (excluding currency effects)

~€2bnSales Revenue

Increasing Margins

Ambition 2020 Key Initiatives & Targets

Key Market DriversRegional

USA: Enhance local presence; gain market share

China und Indien: Participate in strong market growth

Portfolio

Selective expansion of portfolio with complementary products through alliances and acquisitions

Efficiency

New global ERP system based on new business processes

Consolidation & expansion of production sites

23

Go-to-Market: Initiatives Implemented in the U.S. and in Preparation in Asia

Resource ramp-upCustomer segmentation and coverage

Organizational changes

Focus on high-potential customers

Increase customer-facing time

Stronger technical and back office support

Enhanced sales support tools

Page 324

Page 25

Key Investment Projects

Capex ratio in % of sales revenue

0

2

6

4

8

4.0

7.1

3.7

~8.0

2012e201120102009

￭ Three main construction projects in Goettingen (GER), Guxhagen (GER) and Yauco (PR) to expand, optimize and modernize our global production infrastructure

￭ New, group-spanning SAP-system

￭ All projects within time and cost schedule

￭ Investments at a high level in 2012

25

Agenda

1

2

Business Overview

Seite 3

4



5



6 Appendix

3

Page 27

Strong Growth in Sales Revenue and Earnings

Sartorius Groupin millions of €(unless otherwise specified)

6M 2011 6M 2012 Change in % Comment

Order intake 376.6 434.2 15.3 +11.7% in cc3); around 6 pct. pointsdue to Biohit LH consolidation

Sales revenue 353.7 422.1 19.3 +15.6% in cc3); around 6 pct. pointsdue to Biohit LH consolidation

Underlying1) EBITA 51.1 63.6 24.6

Underlying1) EBITA margin 14.4% 15.1%

Underlying EPS1)2) 1.39 1.73 24.5

1) Excluding extraordinary items 2) Excluding non-cash amortization and valuation adjustments of hedging instruments 3) Constant currencies

27

Page 28

+30.2% +10.8% +14.9% +12.2%

Other Markets ~4%

Asia | Pacific ~23%

North America ~23%

Europe ~50 %

97.7

15.5

212.0

€422.1m

EuropeSales1) in millions of €

North AmericaSales1) in millions of €

Asia|PacificSales1) in millions of €

Other MarketsSales1) in millions of €

Sales by Regions1)

in %

All Regions Drive Growth

97.0

1) According to customers‘ location

￭ Double-digit sales growth in North America driven by all divisions￭ Strong expansion in Asia | Pacific led by Bioprocess Solutions division￭ Healthy performance in Europe￭ Modest PIIGS exposure (~15% of European sales revenue)

H1 2012, growth in constant currencies

28

Page 29

Bioprocess Solutions: Continued Dynamic Expansion

H1 2011 H1 2012

1) Excluding extraordinary items

Order Intakein millions of €

EBITDA & EBITAunderlying1), in millions of €

217.0243.4

+ 12.2 % (+ 8.5 % cc)

+ 23.1%

33.4

42.9

+ 28.7 %

41.6

51.2

195.8

237.4

+ 21.2% (+ 17.3% cc)

Order Intake￭ Strong growth driven by

single-use products, especially filters and bags

Sales Revenue ￭ Performance mainly fueled

by single-use products ￭ H1 2011 represents a

relatively low base

Underlying1) EBITA￭ 110 bps margin expansion

mainly driven by strong sales growth

EBITDA & EBITA Marginsunderlying1), in millions of €

Sales Revenuein millions of €

0

270

90

180

0

17.0 18.1

21.521.2

H1 2012H1 2011

Sales Revenue in €m (lhs)

Underlying1) EBITA Margin (rhs)Underlying1) EBITDA Margin (rhs)

14

28

21

7

29

Page 30

Lab Products & Services: Solid Organic Order Intake

H1 2011 H1 2012




108.3

139.7

+29.0 % (+24.7 % cc)

+ 13.9%

15.216.5

+ 8.8 %

18.420.9

110.6133.0

+20.2 % (+16.1 % cc)



Order Intake￭ Approx. 6% growth

excluding currencies and Biohit LH

Sales Revenue ￭ Approx. 2% decline

excluding currencies and acquisitions

￭ H1 2012 compares against strong previous year’s base

￭ Biohit LH performance in line with expectations

Underlying1) EBITA￭ Impacted by investments in

S&D0

150

50

100

5

10

15

20

13.712.4

15.816.6

H1 2012H1 2011

Sales revenue in €m (lhs)

Underlying1) EBITA margin (rhs)Underlying1) EBITDA margin (rhs)

30

Page 31

Industrial Weighing: Significant Growth Against a Moderate Base

H1 2011 H1 2012




51.4 51.1

- 0,5 % (- 2,6 % cc)

+ 45.3 %

2.5

4.2

+ 65.1%

3.5

5.2

47.351.8

+ 9.5 % ( +7,3 % cc)



Order Intake￭ At the previous year’s level

Sales Revenue ￭ High growth rates due to

moderate base in H1 2011

Underlying1) EBITA￭ Economics of scales drive

profitability60

40

0

4

8

12

5.4

8.1

10.0

7.5

H1 2012H1 20110

Sales revenue in €m (lhs)

Underlying1) EBITA margin (rhs)Underlying1) EBITDA margin (rhs)

20

31

Page 32

Strong Top Line Translates to Substantial Bottom-Line Growth

Sartorius Groupin millions of €(unless otherwise specified)

6M 2011 6M 2012 Change in %

Underlying1) EBITA 51.1 63.6 24.6

Extraordinary items -6.7 -7.1 -6.6

Financial result -5.3 -6.4 -21.0

Underlying1)2) net profit after minority interest 23.7 29.5 24.5

Underlying1)2) EPS (€) 1.39 1.73 24.5

Operating cash flow 14.3 3.2 -77.2

Investing cash flow -13.1 -34.4 -162.7

￭ Extraordinary items mainly related to the integration of Biohit LH, U.S. site relocation and other corp. projects

￭ Operating cash flow impacted by tax payments (partly relating to preceding years) and NWC expansion

￭ Investments mainly related to the expansion of production capacity

1) Excluding extraordinary items 2) Excluding non-cash amortization and valuation adjustments of hedging instruments32

Page 33

All Key Financial Indicators at Robust Levels

Sartorius Group Dec. 31,2011

June 30,2012

Equity ratio in % 38.0 37.0

Net debt in millions of € 264.8 330.6

Gearing ratio 0.7 0.9

Net debt to underlying1) EBITDA 1.9 2.2

Interest Coverage1) 13.9 14.8


Net Debt to EBITDA1)

Q1-Q4 Q1-Q40

100

200

300

0.0

1.0

2.0

3.0

201120102009

Net debt in €m (lhs)

Q1-Q4 Q1-Q4

Net debt to EBITDA (rhs)

2008

Key Financial Indicators

Q1-Q22012

33

Page 34

FY 2012 Guidance Upgraded

Guidance Previous New

Sales revenue growth1)

Underlying2)

EBITA growthSales revenue

growth1)Underlying2)

EBITA growth3)

Sartorius Group ~10% ~10% ~11% ~15%

Bioprocess Solutions ~6% - 8% ~6% - 8% ~10% ~15%

Lab Products & Services ~16% - 20% ~16% - 20% ~16% - 20% ~20% - 24%

Industrial Weighing Stable vs. 2011 Stable vs. 2011 Stable vs. 2011 Stable vs. 2011

￭ CAPEX ratio expected to be around 8%, which includes non-cash items of approx. 2 pct. points

1) In constant currencies 2) Excluding extraordinary items 3) Provided that currency exchange rates remain favourable as in H1 201234

Agenda

1

2

Business Overview

Seite 3

4



5



6 Appendix

3

Page 36

Organization and Shareholding Structure

Prf. share: 9,36 mn outstanding: ~8,52 mn

Ord. share: 9,36 mnoutstanding: ~8,53 mn

Bio-Rad Laboratories Inc.

Treasury shares

Family ownedAdm. by executor

Free Float50

7

49

30

91

9

Ord. in %

1) As of June 2012

Shares ~17,03 mn.1), outstanding ~15,34 mn.1)

Voting rights ~28,86 mn.1), outstanding ~26,96 mn.1)

Treasury shares

67

23

10in %

Prf. in %

Simplified, schematic diagram

Free Float (26% outstanding)Sartorius AG (74% outstanding)

100%74%Sartorius AG

Sartorius Stedim Biotech S.A. Sartorius Subsidiaries

36

Page 37

New Division Setup Implemented

Schematic diagram

Bioprocess Biolab Industrial Weighing

Lab Instruments

MechatronicsBiotechnology

Bioprocess Solutions Industrial Weighing

Previous Divisions

New DivisionsJan. 2012 Biohit LH


37

Page 38

Global Biologics Market1)

Page 38

Geographic Focus - Strong Growth Opportunities in the U.S. & Asia

China & India Biologics Market2)

1

0

China

India

2017e2013e2012e2011e2010e2009e200820072006200520042003

CAGR 2008-17: 23%

CAGR 2008-17: 17%5

€bn

4

3

2

Key Characteristics of Biomanufacturing Market

Sound market growth Strongly regulated environment Quality and reliability represent key success factors Stable supplier landscape

Key Biomanufacturing Market Drivers

Increasing production volumes Capacity built-up especially in Asia Increasing yields | lower batch sizes Technological shift towards single-use

1) Evaluate Pharma, IMS 2) BCG, Sartorius

0

40

80

120

160

200

2003 2004 2005 2006 2007 2008 2009 2010 2015

CAGR 2011-15: 6%-9%

€bn

ROW

USA

38

Page 39

Biohit Liquid Handling – Sales by Category and by Region

Page 39

America

Mechanical pipettes

Pipette consumables

APAC

Electronic pipettes

Service

Europe

ROW

￭ Significant growth potential in all product categories

￭ Global market of ~€250m plus ~€500m for tips; expected growth of approx. 5%+

￭ Established sales organizations in Russia, Germany, France, UK, USA, Japan, China and India

￭ High overlap of customer base

~€38m ~€38m

Sales split based on 2010 data

29 %

39

19 %

21 %

32 %14 %

19 %

52 % 16 %

Page 40

Fact Sheet “New Segment Reporting” with 2011 Figures Available

3-Month 2011 6-Month 2011 9-Month 2011 Full Year 2011

Bioprocess SolutionsOrder intake 110.3 217.0 313.9 432.0Sales revenue 94.2 195.8 302.8 410.2Underlying EBITDA1) 19.1 41.6 65.0 87.7Underlying EBITDA margin in %1) 20.3 21.2 21.5 21.4Underlying EBITA1) 15.4 33.4 53.0 71.6Underlying EBITA margin in %1) 16.4 17.0 17.5 17.5

Lab Products & ServicesOrder intake 57.6 108.3 160.1 216.0Sales revenue 55.4 110.6 165.2 222.0Underlying EBITDA1) 8.3 18.4 27.5 37.0Underlying EBITDA margin in %1) 14.9 16.6 16.6 16.7Underlying EBITA1) 6.8 15.2 22.8 30.7Underlying EBITA margin in %1) 12.3 13.7 13.8 13.8

Industrial WeighingOrder intake 25.6 51.4 75.6 101.4Sales revenue 22.6 47.3 73.4 100.9Underlying EBITDA1) 1.1 3.5 7.3 11.9Underlying EBITDA margin in %1) 4.7 7.5 9.9 11.8Underlying EBITA1) 0.6 2.5 5.8 9.9Underlying EBITA margin in %1) 2.5 5.4 7.9 9.8

1) Excluding extraordinary items40

Page 41

Proven Track Record with Alliances and Acquisitions

Alliances & acquisitions support the strategy of profitable growth

Significant extension of technology portfolio and product offerings

Substantial extension of worldwide footprint

TC TechAseptic Technologies

Metroglas

ATMI Life Sciences

LevTechToha Plast

Stedim Biosystems

SAFC BiosciencesRaumedic

Südpack Medica

2012Acquisitions | Alliances

Vivascience

2000B. Braun Biotech International

Omnimark

Wave Biotech

Bayer Technology Services

Dylog

NIR Online

TEWS Elektronik

Schmidt + Haentsch

Biohit LH

Corning

c-LEctra

PBI Dansensor

Refine Technology

G-Con

Bosch Packaging Techn.

41

Page 42

Financial Calendar

￭ September 24, 2012Berenberg Bank & Goldman Sachs Inaugural German Corporate Conference, Munich

￭ October 29, 2012 Publication of nine-month figures

￭ November 12-13, 2012German Equity Forum, Frankfurt|Main

￭ January 22, 2013Cheuvreux Corporate Conference, Frankfurt|Main

￭ January 2013 Publication of preliminary figures for fiscal 2012

￭ April 18, 2013 Annual Shareholders' Meeting, Goettingen

42

Page 43

Sartorius Group Executive Committee

Oscar-W. Reif

* Member of the Executive Board of Sartorius AG

Reinhard Vogt* Jörg Pfirrmann* Joachim Kreuzburg* Chairman

Corporate Strategy, Legal, Compliance, Communications

Dominique Baly Volker Niebel

Finance, Information Technologies, Human Resources

Marketing, Sales, Services, Business Development


Research andDevelopment

Marketing, Sales, Services, Business Development


Procurement, Production,Supply Chain Management

Oscar-Werner Reif

43

Page 44

Contacts

Petra Kirchhoff

Vice President Corporate Communications & IR

Phone: +49.551.308.1686E-mail: [email protected]

Andreas Theisen

DirectorInvestor Relations

Phone: +49.551.308.1668E-mail: [email protected]

Sartorius Corporate Administration GmbHWeender Landstrasse 94-10837075 Goettingen, Germanywww.sartorius.com

44

Documents

Sartorius Berenberg & Goldman Sachs 20120924.ppt ... Bank & Goldman Sachs ... Seite 2 This presentation contains statements concerning the Sartorius and Sartorius ... Stable pricing