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MarketScreener Homepage  >  Equities  >  Xetra  >  Sartorius AG    SRT   DE0007165607

SARTORIUS AG

(SRT)
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Sartorius : Conference Call Q1|2020 Presentation

04/21/2020 | 09:53am EST

Simplifying Progress

Conference Call First-Quarter 2020 Results

Joachim Kreuzburg, Rainer Lehmann

Sartorius | Sartorius Stedim Biotech

April 21, 2020

Disclaimer

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

1 Q1 2019 figures reported: Order intake €366m, sales €326m, underlying EBITDA €94.2m

7

LPS: Strongly reduced demand in China

Order Intake

  • in millions

+0.5% cc

+0.9%

122.1

123.3

Q1 20191

Q1 2020

Sales Revenue

  • in millions

+0.1% cc +0.5%

115.0

115.6

Q1 20191

Q1 2020

Underlying EBITDA & Margin

  • in millions

-22.3%

23.2

18.0

20.1%

15.6%

Q1 20191

Q1 2020

  • Soft demand, especially for laboratory instruments in China; business picked up during March
  • About 2.5ppnon-organic revenue growth contributed by Biological Industries
  • Underl. EBITDA margin impacted by low capacity utilization due to economic standstill in China and FX (approx.-1.5pp)

1 Q1 2019 figures reported: Order intake €116.8m, sales €109.7m, underlying EBITDA €19.8m

8

Operating cash flow increases

Sartorius Group

Q1 2019

Q1 2020

in %

in millions of € unless otherwise specified

Underlying EBITDA

114.0

137.9

+20.9

Extraordinary items

-5.0

-13.0

-159.9

Financial result

-7.4

0.4

n.m.

Underlying net profit1,2

48.6

57.1

+17.5

Reported net profit2

37.8

46.2

+22.3

Operating cash flow

105.9

113.9

+7.5

Investing cash flow3

-55.0

-46.1

+16.3

CAPEX ratio (in %)

12.9

8.8

-4.1pp

  • 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)

18

Questions & Answers

19

Thank you very much for your attention

20

Disclaimer

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


© Publicnow 2020
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NameTitle
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