This presentation contains statements concerning the future performance of the Sartorius and the Sartorius Stedim Biotech Groups. 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.
2
Q1 2020 Highlights
Significantdouble-digit growth in Group order intake, sales revenue and earnings
Coronavirus pandemic so far with overall neutral impact on Group level, different effects on the divisions
Bioprocess Solutions: Dynamictop-line growth; strong order intake additionally driven by large equipment orders and stocking initiatives by some customers
Lab Products & Services: Noticeably dampened demand due to economic standstill in China during first two months
Production sites and supply chains in both divisions are up and running
Extensive safety measures at all workplaces; customer interactions digitized and remote office work as far as possible
FY 2020 guidance updated
New branding launched in February: 'Simplifying progress' as the new corporate claim
3
Agenda
Sartorius Group
Q1 2020 Results | FY 2020 Guidance
Sartorius Stedim Biotech Group
Q1 2020 Results | FY 2020 Guidance
Questions & Answers
4
Dynamic top-line growth; further margin increase
Sartorius Group
Q1 2019
Q1 2020
in %
in % cc1
in millions of € unless otherwise specified
Sales revenue
435.7
509.9
+17.0
+16.5
Order intake
482.8
629.4
+30.4
+29.7
Underlying EBITDA2
114.0
137.9
+20.9
Underlying EBITDA2margin in %
26.2
27.0
+0.8pp
Underlying EPS3(ord.) in €
0.71
0.83
+17.6
Underlying EPS3(pref.)in €
0.72
0.84
+17.3
Acquisition of cell culture media specialist Biological Industries contributed a good 1pp to sales growth, as expected
Underlying EBITDA driven by economies of scale; slight negative impact by currencies
2019 OI, sales and margins of divisions restated due to changed allocation of two small product groups, no impact on Group
1 Constant currencies 2 Underlying = excluding extraordinary items 3 Underlying EPS = based on net profit after non-controlling interest; adjusted for extraordinary items as well as amortization and based on a normalized financial result and tax rate
5
Double-digit growth in all geographies
Americas
EMEA
Asia|Pacific
Sales by Region
€ in millions
€ in millions
€ in millions
in %
+17.1 %
+16.1 %
+16.3 %
EMEA
207.0
~ 41%
Americas
180.7
178.0
152.4
~ 35%
105.3
122.2
€509.9m
Q1 2019
Q1 2020
Q1 2019
Q1 2020
Q1 2019
Q1 2020
Asia|Pacific
Americas: Strong momentum in BPS; LPS stable
~ 24%
EMEA: BPS strong; LPS supported by demand for diagnostic test kits
Asia|Pacific: BPS with most dynamic growth; LPS demand declined significantly in Jan. and Feb. due to standstill in China
Acc. to customers' location; growth in constant currencies
6
BPS: Strong demand across all product categories and regions
Order Intake
in millions
+39.6% cc
+40.3%
506.2
360.7
Q1 20191
Q1 2020
Sales Revenue
in millions
+22.4% cc +23.0%
320.7
394.3
Q1 20191
Q1 2020
Underlying EBITDA & Margin
in millions
+31.9%
90.9
119.9
28.3%
30.4%
Q1 20191
Q1 2020
Order intake driven by larger equipment orders from China andpull-forward effects due to stocking initiatives of customers
Stocking initiatives had 2pp impact on sales growth;non-organic growth from Biological Industries consolidation close to 1pp
Underlying EBITDA margin rose due to economies of scale, despite minor negative currency effects
Net operating cash flow mostly driven by higher earnings and factoring of receivables in the amount of ~€75m
Extraordinary items influenced by rebranding and M&A expenses, among others
Some investments postponed due to the pandemic crisis
Review of dividend proposal for FY 2019 under consideration
1 Underlying net profit = net profit adjusted for extraordinary 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
9
Very sound balance sheet and financial base
Key Financial Indicators
Sartorius Group
Dec. 31,
Mar. 31,
2019
2020
Equity ratio in %
38.0
39.0
Net debt in millions of €
1,011.3
951.9
Net debt | underlying
2.0
1.8
EBITDA
All financial indicators improved compared to last reporting
Net Debt and Net Debt to Underlying EBITDA
1,500
3.0
1,200
2.4
900
1.8
600
1.2
300
0.6
0
0.0
Q1-Q4Q1-Q4Q1-Q4
Q1-Q4
Q1-Q4
Q1-Q4
Q1
2014
2015
2016
2017
2018
2019
2020
Net debt in millions of € (lhs)
Net debt to underlying EBITDA (rhs)
10
Outlook for 2020, higher uncertainty than usual
Given the pandemic situation, forecast is subject to higher uncertainty than usual concerning both the development of existing businesses and the integration of acquisitions
Guidance is based on the macroeconomic assumptions that China will continue ramping up its economy and Europe and the US will soon have reached the peak of the pandemic, and will ease economic restrictions
The outlook further reflects the assumption of intact supply chains and largely unaffected production capacities in both divisions
Finally, as we continue to expect the closing of the acquisition of parts of the life science portfolio from Danaher within the next weeks, we have included the scenario to consolidate the businesses from May 2020
11
Outlook for 2020
FY 2020 Guidance1
Previous
New
Sales Revenue
Underlying
Sales Revenue
Underlying
Growth
EBITDA Margin
Growth
EBITDA Margin
Sartorius Group
~ 10% - 13%
~ 27.5%
~ 15% - 19%
~ 27.5%
- thereof Biological Industries
1.5pp
slightly dilutive
1.5pp
slightly dilutive
- thereof Danaher portfolio
-
-
5pp
neutral
Bioprocess Solutions
~ 11% - 14%
~ 30.0%
~ 17% - 21%
~ 30.0%
- thereof Biological Industries
1pp
slightly dilutive
1pp
slightly dilutive
- thereof Danaher portfolio
-
-
3.5pp
-0.5pp
Lab Products & Services
~ 7% - 10%
~ 20.0%
~ 10% - 14%
~ 20.0%
- thereof Biological Industries
2.5pp
slightly dilutive
2.5pp
slightly dilutive
- thereof Danaher portfolio
-
-
10pp
1.5pp
CAPEX ratio ~10% (FY 2019: 12.3%); net debt to underlying EBITDA ~2.75 (FY 2019: 2.0)
Biological Industries included for 12 months; Life science portfolio from Danaher included for approx. 8 months
1 In constant currencies
12
Agenda
Sartorius Group
Q1 2020 Results | FY 2020 Guidance
Sartorius Stedim Biotech Group
Q1 2020 Results | FY 2020 Guidance
Questions & Answers
13
Sartorius Stedim Biotech Group
Dynamic top-line growth; further margin increase
Sartorius Stedim Biotech Group
Q1 2019
Q1 2020
in %
in % cc1
in millions of € unless otherwise specified
Sales revenue
342.9
422.1
+23.1
+22.3
Order intake
381.3
534.8
+40.3
+39.3
Underlying EBITDA2
98.1
126.7
+29.2
Underlying EBITDA2margin in %
28.6
30.0
+1.4pp
Underlying EPS3
0.68
0.87
+28.4
Strong demand across all product categories; equipment orders from China and stocking initiatives drove order intake
Consolidation of Biological Industries accounted for about 1.5pp ofnon-organic growth
Underlying EBITDA margin rose due to economies of scale; currencies slightly dilutive
1 Constant currencies 2 Underlying = excluding extraordinary items 3 Underlying EPS = based on net profit after non-controlling interest; adjusted for extraordinary items as well as amortization and based on a normalized financial result and tax rate
14
Sartorius Stedim Biotech Group
Growth in all regions, Asia|Pacific with the highest dynamics
Americas
in millions
+20.3%
124.8
152.7
Q1 2019
Q1 2020
EMEA
in millions
+19.0%
140.6
167.6
Q1 2019
Q1 2020
Asia|Pacific
Sales by Region
€ in millions
in %
+31.6%EMEA
~40%Americas
~36%
77.5
101.7
€422.1m
Q1 2019
Q1 2020
Asia|Pacific
~24%
Americas: Continued strong momentum
EMEA: Strong growth
Asia|Pacific: Most dynamic against weaker comps; order intake driven by larger equipment orders from China
Acc. to customers' location; growth in constant currencies
15
Sartorius Stedim Biotech Group
Operating cash flow increases
Sartorius Stedim Biotech Group
Q1 2019
Q1 2020
in %
in millions of € unless otherwise specified
Underlying EBITDA
98.1
126.7
+29.2
Extraordinary items
-2.6
-4.6
-77.4
Financial result
-3.7
-0.1
n.m.
Underlying net profit1,2
62.6
80.3
+28.4
Reported net profit2
56.1
75.1
+33.9
Operating cash flow
80.7
115.4
+43.0
Investing cash flow3
-32.3
-49.7
-53.9
CAPEX ratio (in %)
9.4
6.0
-3.4pp
Net operating cash flow mostly driven by higher earnings and factoring of receivables in the amount of ~€75m
Extraordinaries driven by rebranding and M&A expenses among others
Some investments postponed due to pandemic crisis
Review of dividend proposal for FY 2019 under consideration
1 Underlying net profit = net profit adjusted for extraordinary 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
16
Sartorius Stedim Biotech Group
Very solid balance sheet and financial position
Key Financial Indicators
Sartorius Stedim Biotech
Dec. 31,
Mar. 31,
2019
2020
Equity ratio in %
64.7
65.7
Net debt in millions of €
107.7
46.2
Net debt | underlying
0.3
0.1
EBITDA
All financial indicators improved compared to last reporting
Net Debt and Net Debt to Underlying EBITDA
200
1.6
150
1.2
100
0.8
50
0.4
0
0.0
Q1-Q4Q1-Q4Q1-Q4
Q1-Q4
Q1-Q4
Q1-Q4
Q1
2014
2015
2016
2017
2018
2019
2020
Net debt in millions of € (lhs)
Net debt to underlying EBITDA (rhs)
17
Sartorius Stedim Biotech Group
Outlook for 2020, higher uncertainty than usual
FY 2020 Guidance1
Previous
New
Sales revenue growth
~ 11% - 14%
~ 17% - 21%
Underlying EBITDA
~ 29.5
~ 30.0
margin
CAPEX ratio
~ 8%
~ 8%
1 In constant currencies
Forecast includes life science portfolio from Danaher for approx. 8 months
Sales guidance includes contribution from Biological Industries of ~2pp and of the Danaher portfolio of ~3pp
Margin includes slightly dilutive effect from consolidation of Biological Industries and an expected dilution of about-0.5pp from the consolidation of the Danaher portfolio
Net debt to underlying EBITDA is expected to be approx. 0.5 (before: 0.3; FY 2019: 0.3)
Sartorius AG published this content on 21 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2020 13:52:02 UTC
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