Focus – Transform – Grow: Our Strategy for Sustainable, Profitable Growth (Dietmar Siemssen, CEO)

Focus - Transform - Grow: Our Strategy for Sustainable, Profitable Growth

Dietmar Siemssen, CEO

December 08, 2020

Transforming our Gerresheimer into a growth value as innovation leader and solution provider

12/08/2020	Capital Market Day

New Corporate Design
4
The Transformation Becomes Visual

12/08/2020

Capital Market Day

New Corporate Design
5
The Transformation Becomes Visual

12/08/2020

Capital Market Day

New Corporate Design
6
The Transformation Becomes Visual

Pathbreaking and driven

Colors full of contrast and brightness in a dynamic combination are showing our willingness to innovate and to perform.

12/08/2020

Capital Market Day

New Corporate Design
7
The Transformation Becomes Visual

Pathbreaking and driven

Colors full of contrast and brightness in a dynamic combination are showing our willingness to innovate and to perform.

12/08/2020

Capital Market Day

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate Growth
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

The World is Changing

We Anticipate Global Mega Trends and Catch the Waves

9

Emerging

Markets: Increasing health care access

Increasing importance of biotech

Vaccinations as growth market

Increase in chronic diseases and aging population

More self- medication and individual medicine

Generics as growth market

Urban population and growing upper classes

Focus on

Sustainability

Increasing health care costs and tighter regulation

12/08/2020

Capital Market Day

Mission: Leave Historical Stagnation Behind
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formula G as Vehicle into Sustainable, Profitable Growth

CAGR + 2%

20152019

The Transformation is Ongoing

Strong Vision: Developed for 2028
11
Ambitious Goals in Five Strategic Directions Defined

Vision 2028:

Leading in Health

and Well-Being

Delivery Solutions

2019

12/08/2020

Capital Market Day

Execution: The Change and Growth Engine is Running 12

The Whole Organization Contributes

2020

IT	Gl Glass	D Digitalization
F		I	Innovation
HR		Sus	Sustain-
			ability
		IR RelationInvestor
		M&A	Mergers &
		Acquisitions

Implement Numerous Strategic

projects and programs to

materialize on growth

opportunities

Vision 2028:

Leading in Health

and Well-Being

Delivery Solutions

12/08/2020

Capital Market Day

Set Ambitious Targets and Achieve Them
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Growth Acceleration in the Mid-Term

…to high

CAGR from mid

single…

CAGR + 2%

single

2022

20152019

The Transformation is Ongoing

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

Outperforming Markets and Accelerating Growth
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Definition of Growth Segments

Mid to High

MarketGrowth SegmentsSingle Digit

Next Level

− Innovative products, customers

Growth

− Advanced

solutions and high value products

− Focus on injectables and biotech solutions − Global expansion into growth regions

− Leading supplier in MedTech & Smart Devices − Partner of choice for our customers

Technologies

− M&A

Underlying market growth

Turning Global Trends into Business Opportunities
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Example Injectables
	Market for injectables with		Serve the increasing global demand
	attractive growth rates

The market for injectables is growing with attractive CAGRs 6-10%:

• Syringes
• Vials
• Pens and autoinjectors

Significant growth of biologics and biosimilars.

• Clear expectation: In 2028 more than 50% of injectables will be biologics

Boosted by increasing global demand for vaccination - beyond Covid-19

Expanding capacity		Innovate on high
in syringes, vials		value solutions:
and injectors		ELITE, RTF

Well positioned in attractive niche markets through our broad product portfolio and regional footprint

12/08/2020

Capital Market Day

Triple Sales with Biologics Customers
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Example Biologics
Gx® Biological Solutions - cross divisional team
Innovative product solutions for biotech drugs
Best possible packaging configuration
Interdisciplinary team of scientists, designers,
engineers and product managers
Full-service provider for small, mid
and large biotech companies
(regulatory, laboratory, …)

12/08/2020

Capital Market Day

Boosted Demand in Injectables	18

Global Capacity Expansion in Syringes, Vials, Pens & Autoinjectors

Injectables made by Gerresheimer - bold formula G targets

− Global footprint for syringes

• Leverage on vaccine momentum, further grow RTF & Elite vials
• Devices: serve key customer projects and expand own solutions and IP

12/08/2020

Capital Market Day

Serving our Global Customers

Global Expansion: Increase Footprint and Competence

North

America

− High value products	India
and product innovation	− Local competence
− Increasing service	centre
offering	− Capacity

− PET andcaps

South

America

− Plastic Packaging

− Cosmetic and

decoration

19

China

• Syringes, pipettes, high value vials
• Regulated OTC plastics market

South East Asia

• Expand footprint for

tubular glass

• New sales structure

12/08/2020

Capital Market Day

Growth With Key Accounts
	20
Global KAM: Over Proportional Growth With Key Customers
Increase revenue potential through		Customer centric offering -
our Global Key Account Management		cross-divisional over all business units

• Secure global quotes from customers
• Use cross-selling potentials through all business units
• Intensify relationships through early involvement in product development
• Provide solutions instead of single products
• Be the go-to partner for pharma and healthcare industry

Customer

12/08/2020

Capital Market Day

M&A with Further Potential for our Growth Story	21

Structured Strategic Evaluation Process for Inorganic Growth

• M&A as part of our growth story
• Established structured approach for acquisitions

Customers

• Consider strategic corporations and partnerships

Product

Innovations

Strategic Fit

Attractive Stand Alone Case

Synergy Potential

Value Accretion

Device Solutions

Profitable

Growth

Services

Geography

Digital Competency

12/08/2020

Capital Market Day

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

Leading in Innovation
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The Strategic Development Partner of our Customers

One third of sales through innovative solutions

Opening the minds: establishing a culture of innovation

Collaborating Innovation Network

• internal and external

Innovation process in close cooperation with our customers

12/08/2020

Capital Market Day

Connect Competence Centers to a Global Network
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Group-wide Technology Center

Further center

Innovation Center planned in Lohr Smart Devices /

Micro Pumps

Olten, Switzerland

New 2019/2020
	Glass Innovation &
Technical
	Technology Center
Competence Center /		Vineland, NJ
Medical Systems
Peachtree City, GA
		New 2019/2020

Syringes Center

of Excellence Technical Competence

Bünde, Germany Center/Medical Systems

Wackersdorf, Germany

Technical Competence

Center/Medical Systems

Dongguan, China

Further center planned in India

12/08/2020

Capital Market Day

Growth in Elite Glass is now Materializing
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Growth Through Innovative Products

Example: Gx® Elite Glass

• Reducing the customers' total cost of ownership
• High resistance for breakage and delamination
• No need to re-file
• Registered for patent

Expected sales CAGR 2020-25:

~30%

12/08/2020

Capital Market Day

Into the Customer's Value Chain
26
High Value Products with RTF

Example: Gx® RTF Vials

• Increasing demand for ready-to-fill products - moving up the value chain
• Offering of pre-washed and sterilized vials as enhancement of product portfolio
• Transferring established knowhow and capabilities from RTF syringes into vials & cartridges

Expected sales CAGR 2020-25:

>50%

12/08/2020

Capital Market Day

Enlarge Product Portfolio of High Value Solutions
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Growth Through Innovation and High Value Products
Innovative	Innovative drug delivery
solutions & process/
	service capabilities

Meaningful Sales

Contribution by

2025e

Gx Biologic	CAGR 2020-25e:
Solutions	>75%

CAGR 2020-25e:

>60%

Volume

Products

Standard

	Product	Solution
12/08/2020	Capital Market Day

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

Excellence in Everything we do

Key Priorities While Striving for Excellence

Products & Processes Excellent quality and state of the art production

Excellence

Investors Treat investors like partners

12/08/2020

Capital Market Day

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Customers

Priority on excellent customer touchpoints

Gerresheimer family on a mission

Sustainability Rethink the future

Quality - Driver of Growth & Profitability
30
Excellence in Production

Cross-divisional Excellence Council established

Clear targets and timeline

Driven by improvements in process capability, especially digitization

• Best-in-classinspection cameras
• Predictive Maintenance
• Closed-loopfully automatized production

formula G goal

CNQ score < 4%

Target CNQ (%)

6.7% 6.8%

6.0% 5.8%

Target CNQ <4%

3.9%

2018 2019 2020 2020 2021 2022 2023 2024 2025 2026 2027 2028 ytd

12/08/2020

Capital Market Day

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

Passion for Growth

Inspire the Whole Organization for Growth Mindset

GROWTH MINDSET

Challenges help me to grow

FIXED	Failure is an opportunity to grow

MINDSET	Feedback is constructive
	I like to try new things
	We live our values

32

Our Values

Teamwork

Responsibility

Integrety

Bold Innovation

Excellence

12/08/2020

Capital Market Day

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

Rethink the Future: Sustainability as Growth Lever
34
Holistic Approach with Bold Targets Setting new Standards
Already strong
3 Examples
				today:
50% CO2-savings		Gx eco-design
	principles:
by 2030e
	100% by
GxPure	GxCircular	2023

GxCare

	Health & Safety:	Ambitious Goals
	Lost time accident frequency ratio:	for the future
	-80% by 2028
12/08/2020	Capital Market Day

Agenda

1. Strategy formula G: Becoming Innovation Leader and Solution Provider
2. Strategic Levers to Accelerate
3. • Growth
   • Innovation
   • Excellence
   • Leadership
   • Sustainability
4. Growth Outlook

12/08/2020	Capital Market Day

Profitable Growth Accelerating	36

Revenue Guidance for Core Business in FY 2021 and Beyond

…to high

single

CAGR from

mid single…

CAGR + 2%

2022

20152019

The Transformation is Ongoing