Conference Call
Preliminary Full-Year 2020 Results
Joachim Kreuzburg, Rainer Lehmann
Sartorius | Sartorius Stedim Biotech
January 27, 2021
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
Highlights
- Strong finish to the year in both Group divisions
- 2020 preliminary figures show double digit growth across the board
- Bioprocess Solutions Division: Continued high underlying demand; plays a key role as a provider for vaccine technologies
- Lab Products & Services Division: First half significantly impacted by the pandemic; progressive rebound since Q3
- Successful closing of strategically important acquisitions, one more recently announced
- Outlook for 2021: Significant sales revenue growth projected on all levels
- 2025 targets updated and raised
3
Agenda
Sartorius Group
FY 2020 results | FY 2021 guidance | 2025 ambition
Sartorius Stedim Biotech Group
FY 2020 results | FY 2021 guidance | 2025 ambition
Questions & Answers
4
Strong profitable growth
Sartorius Group | 2019 | 2020 | in % | in % cc1 |
in millions of € unless otherwise specified | ||||
Sales revenue | 1,827.0 | 2,335.7 | +27.8 | +30.2 |
Order intake | 1,939.5 | 2,836.3 | +46.2 | +49.0 |
Underlying EBITDA2 | 495.8 | 692.2 | +39.6 | |
Underlying EBITDA2 margin in % | 27.1 | 29.6 | +2.5pp | |
Underlying EPS3 (ord.) in € | 3.06 | 4.37 | +43.0 | |
Underlying EPS3 (pref.) in € | 3.07 | 4.38 | +42.9 | |
- Acquisitions contribute a good 7pp to sales growth; net effect from pandemic a good 8pp / close to 14pp for order intake
- Underlying EBITDA margin driven by economies of scale and underproportionate development of costs in some areas due to pandemic; acquisitions with slightly positive effect; slightly dilutive effect from currencies
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 sales growth in all geographies
Americas
€ in millions
+32.8% | |
812.2 | |
629.9 | |
2019 | 2020 |
EMEA
€ in millions
+28.4% | |
935.1 | |
733.4 | |
2019 | 2020 |
Asia|Pacific | Sales by Region |
€ in millions | in % |
+29.6% | EMEA | ||
~ 40% | Americas | ||
588.4 | ~ 35% | ||
463.7 | |||
€2,335.7m | |||
Asia|Pacific | |||
2019 | 2020 | ~ 25% |
- Americas: BPS benefits from demand in connection with the development of corona vaccines; LPS with larger acquisition impact
- EMEA: BPS with tailwinds from vaccine developers; solid performance of LPS considering economic challenges
- Asia|Pacific: BPS with the highest order momentum; LPS demand improved after lockdown lifted in China with catch-up effects
Acc. to customers' location; growth in constant currencies
6
BPS: Dynamic growth across all product categories and regions
Order Intake
€ in millions
+56.4% cc | |
+53.5% | |
2,238.1 | |
1,457.6 | |
2019 1 | 2020 |
Sales Revenue
€ in millions
+ 34.4% cc +32.0%
1,350.5 | 1,782.6 |
2019 1 | 2020 |
Underlying EBITDA & Margin
€ in millions
+46.5%
575.9 | |
393.1 | |
29.1% | 32.3% |
2019 1 | 2020 |
- Strong organic growth; pandemic-driven effects presumably around 12pp (majority of that from demand related to coronavirus vaccines and therapeutics but also related to inventory build-up), acquisitions accounted for close to 5pp of growth
- Pandemic-relatedeffects estimated at around 17pp of order intake growth
- Underlying EBITDA margin rose due to economies of scale and reduced costs in some areas due to pandemic; slight FX dilution
1 2019 figures reported: Order intake €1,479.3m, sales €1,372.1m, underlying EBITDA €406.8m
7
LPS: Rebound and catch-up effects after challenging first half
Order Intake
€ in millions
+26.4% cc | |
+24.1% | |
481.9 | 598.2 |
20191 | 2020 |
Sales Revenue | Underlying EBITDA & Margin | ||
€ in millions | € in millions | ||
+18.1% cc | +13.2% | ||
+16.1% | |||
476.5 | 553.0 | ||
102.7 | 116.3 | ||
21.6% | 21.0% | ||
20191 | 2020 | 20191 | 2020 |
- In particular, high demand for products used in the context of coronavirus testing
- Acquisitions contribute around 15pp to sales growth; net effect from pandemic approx. -1pp
- Underlying EBITDA margin influenced by lower capacity utilization due to pandemic; acquisitions accretive by a good 2pp
1 2019 figures reported: Order intake €460.3m, sales €454.9m, underlying EBITDA €89.0m
8
Operating cash flow increases significantly
Sartorius Group | 2019 | 2020 | in % |
in millions of € unless otherwise specified | |||
Underlying EBITDA | 495.8 | 692.2 | +39.6 |
Extraordinary items | -28.5 | -57.0 | n.m. |
Financial result | -32.5 | -9.4 | n.m. |
Underlying net profit1,2 | 209.4 | 299.3 | +42.9 |
Reported net profit2 | 156.7 | 226.3 | +44.4 |
Operating cash flow | 377.2 | 519.7 | +37.8 |
Investing cash flow3 | -268.7 | -1,278.7 | n.m. |
CAPEX ratio (in %) | 12.3 | 10.3 | -2.0pp |
- Net operating cash flow mostly driven by higher earnings and factoring program (~€89m)
- Extraordinary items influenced primarily by M&A
- Financial result includes the valuation effect related to the earn-out from the acquisition of BIA Separations
- Tax rate at 28.0%; excluding earn-out effect tax rate would be 30.2%
- Investing cash flow driven by acquisitions
2019 numbers partly adjusted due to final PPA of BI 1 Underlying net profit = net profit adjusted for extraordinary items, amortization and based on a normalized financial result and normalized tax rate 2 After non-controlling interest 3 Net cash flow from investing activities and acquisitions
9
Financial indicators remain on very solid level
Key Financial Indicators
Sartorius Group | Dec. 31, | Dec. 31, |
2019 | 2020 | |
Equity ratio in % | 38.1 | 29.9 |
Net debt in millions of € | 1,014.0 | 1,883.6 |
Net debt | underlying | 2.0 | 2.6 |
EBITDA1 | ||
- Equity ratio influenced by increase in balance sheet sum due to the recent acquisitions and higher cash position
1 Includes underlying pro forma EBITDA of acquisitions completed in 2020
Net Debt and Net Debt to Underlying EBITDA
2,000 | 4.0 |
1,500 | 3.0 |
1,000 | 2.0 |
500 | 1.0 |
0 | 0.0 |
Q1-Q4 | Q1-Q4Q1-Q4Q1-Q4Q1-Q4 | Q1-Q4Q1-Q4 | ||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Net debt in millions of € (lhs) | Net debt to underlying EBITDA (rhs) | |||||
10
Most recent acquisitions broadening the downstream portfolio
Acquisition of WaterSep BioSeparations
~$2.5m | + 15 | Dec. | |||
2020 | |||||
Sales revenue | Employees | Date of | |||
in 2020e | consolidation | ||||
- Innovative hollow fiber crossflow filtration units
- Consolidated in BPS division
- Purchase price $27mn plus earn-out
Agreement to acquire chromatography process equipment division from Novasep
~€37m | + 100 | H1 2021 | |||
Sales revenue | Employees | Closing | |||
in 2020e | expected | ||||
- Resin-basedbatch and intensified chromatography systems
- Consolidated in BPS division
- Purchase price not disclosed
11
Strong outlook for 2021, uncertainties remain high
2020 | 2021 Guidance 1 | |||
Sales Revenue | Underlying | Sales Revenue | Underlying | |
Growth | EBITDA Margin | Growth | EBITDA Margin | |
Sartorius Group | +30.2% | 29.6% | ~ 19% - 25% | ~ 30.5% |
- growth by acquisitions | Corona demand | good 7pp | good 8pp | ~5.5pp | up to 6pp | ||
Bioprocess Solutions | +34.4% | 32.3% | ~ 22% - 28% | ~ 33.0% |
- growth by acquisitions | Corona demand | close to 5pp | ~12pp | ~6pp | up to 8pp | ||
Lab Products & Services | +18.1% | 21.0% | ~ 10% - 16% | ~ 23.0% |
- growth by acquisitions | Corona demand | ~15pp | -1pp | ~5pp | no net impact | ||
- Growth rates expected to be significantly pronounced in H1 due to last years acquisition and strong order book
- In 2021, acquisitions projected with no significant profitability effect on the Group and BPS, plus ~0.5pp for LPS
- CAPEX ratio ~15% (FY 2020: 10.3%); accelerate and extend capacity expansion especially in BPS due to growth expectations
- Net debt to underlying EBITDA is projected at slightly below 2.5 (2020: 2.6)
1 In constant currencies
12
2025 ambition - increased baseline and organic growth
- Initial 2025 group sales revenue targets were based on an estimated 2020 group revenue of €2bn, based on the mid-term guidance of 2012
- Expectation was to double the revenue target to €4bn within 5 years
- Actual 2020 Group revenue was approx. €2.3bn; with the overachievement being mainly driven by BPS
- The new mid-term target of €5bn in revenue reflects both the elevated baseline and future growth prospects
- Continued strategy is to achieve the targets primarily through organic growth; acquisition to contribute underproportionally
- The increase in the profitability outlook is due to economies of scale and also reflects the assumption of acquisitions to be initially dilutive
13
Updated 2025 ambition
BPS | LPS | Sartorius Group | |||
Sales | ~€3.8bn | ~€1.2bn | €5bn | ||
revenue | previously ~€2.8bn | unchanged | previously ~€4bn | ||
EBITDA | ~34% | ~25% | ~32% | ||
margin | previously ~30% | unchanged | previously ~28% |
2025 targets are based on 2020 currency exchange rates; EBITDA excluding extraordinary items
14
Agenda
Sartorius Group
FY 2020 results | FY 2021 guidance | 2025 ambition
Sartorius Stedim Biotech Group
FY 2020 results | FY 2021 guidance | 2025 ambition
Questions & Answers
15
Sartorius Stedim Biotech Group
Exceptionally strong growth in 2020
Sartorius Stedim Biotech Group | 2019 | 2020 | in % | in % cc1 |
in millions of € unless otherwise specified | ||||
Sales revenue | 1,440.6 | 1,910.1 | +32.6 | +34.6 |
Order intake | 1,543.5 | 2,381.0 | +54.3 | +56.7 |
Underlying EBITDA2 | 421.5 | 604.7 | +43.5 | |
Underlying EBITDA2 margin in % | 29.3 | 31.7 | +2.4pp | |
Underlying EPS3 in € | 2.85 | 4.16 | +45.9 | |
- Strong organic development; pandemic-driven effects a good 12pp (majority of that from demand related to coronavirus vaccines and therapeutics), acquisitions accounted for close to 6pp of growth
- Pandemic-relatedeffects on order inatke growth close to 19pp
- Underl. EBITDA margin up with economies of scale, lower costs due to pandemic; slight FX dilution, M&A with neutral effect
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
16
Sartorius Stedim Biotech Group
Double-digit sales growth in all geographies
Americas
€ in millions
+34.0% | |
670.2 | |
511.6 | |
2019 | 2020 |
EMEA
€ in millions
+33.0% | |
761.0 | |
575.1 | |
2019 | 2020 |
Asia|Pacific | Sales by Region |
€ in millions | in % |
+38.3% | EMEA | ||
~40% | Americas | ||
~35% | |||
353.8 | 478.9 | €1,910.1m | |
Asia|Pacific | |||
2019 | 2020 | ~25% | |
- Especially EMEA and Americas benefited from additional demand in connection with the development and manufacture of coronavirus vaccines and Covid-19 therapeutics
- Asia|Pacific with the highest momentum, fueled by larger project business orders in H1
Acc. to customers' location; growth in constant currencies
17
Sartorius Stedim Biotech Group
Operating cash flow rises significantly
Sartorius Stedim Biotech Group | 2019 | 2020 | in % |
in millions of € unless otherwise specified | |||
Underlying EBITDA | 421.5 | 604.7 | +43.5 |
Extraordinary items | -16.8 | -32.0 | n.m. |
Financial result | -14.4 | 10.8 | n.m. |
Underlying net profit1,2 | 263.0 | 383.8 | +45.9 |
Reported net profit2 | 234.5 | 357.8 | +52.6 |
Operating cash flow | 310.1 | 416.9 | +34.4 |
Investing cash flow3 | -184.4 | -621.1 | n.m. |
CAPEX ratio (in %) | 9.4 | 8.3 | -1.1pp |
- Net operating cash flow mostly driven by higher earnings and factoring program (~€76m)
- Extraordinary items influenced primarily by M&A
- Financial result includes the valuation effect related to the earn-out from the acquisition of BIA Separations
- Tax rate at 25.3%; excluding earn-out effect tax rate would be 27.1%
- Investing cash flow driven by acquisitions
2019 numbers partly adjusted due to final PPA of BI 1 Underlying net profit = net profit adjusted for extraordinary items, amortization and based on a normalized financial result and normalized tax rate 2 After non-controlling interest 3 Net cash flow from investing activities and acquisitions
18
Sartorius Stedim Biotech Group
Financial indicators remain on very solid level
Key Financial Indicators
Sartorius Stedim Biotech | Dec. 31, | Dec. 31, |
2019 | 2020 | |
Equity ratio in % | 64.4 | 48.3 |
Net debt in millions of € | 110.4 | 527.0 |
Net debt | underlying | 0.3 | 0.8 |
EBITDA1 | ||
- Equity ratio influenced by increase in balance sheet sum due to the recent acquisitions and higher cash position
1 Includes underlying pro forma EBITDA of acquisitions completed in 2020
Net Debt and Net Debt to Underlying EBITDA
600 | 1.8 |
500 | 1.5 |
400 | 1.2 |
300 | 0.9 |
200 | 0.6 |
100 | 0.3 |
0 | 0.0 |
Q1-Q4Q1-Q4 | Q1-Q4Q1-Q4Q1-Q4Q1-Q4 | Q1-Q4 | ||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Net debt in millions of € (lhs) | Net debt to underlying EBITDA (rhs) | |||||
19
Sartorius Stedim Biotech Group
Strong outlook for 2021, uncertainties remain high
FY 2021 Guidance1 | Sales revenue growth | Underlying EBITDA margin | ||
2020 | 2021 | 2020 | 2021 | |
Sartorius Stedim Biotech | 34.6% | ~ 20-26% | 31.7% | ~ 32.0% |
- growth by acquisitions | Corona demand | close to 6pp | good 12pp | ~5.5pp | up to 7pp | ||
- Growth rates expected to be significantly pronounced in H1 due to last years acquisition and strong order book
- CAPEX ratio ~15% (FY 2020: 8.3%); increase due to acceleration and extension of capacity expansions across the entire production network, especially in Germany, Puerto Rico and China
- Net debt to underlying EBITDA is projected at around 0.75 (2020: 0.8)
1 In constant currencies
20
2025 ambition - increased baseline and organic growth
- Initial 2025 group sales revenue targets were based on an estimated 2020 group revenue of €1.5 to 1.6bn, based on the mid-term guidance of 2012
- Actual 2020 Group revenue was approx. €1.9bn
- New mid-term target reflects both the elevated baseline and future growth prospects
- Continued strategy is to achieve the targets primarily through organic growth; acquisition to contribute underproportionally
- The increase in the profitability outlook is due to economies of scale and also reflects the assumption of acquisitions to be initially dilutive
Sartorius Stedim Biotech | |
Sales | €4bn |
revenue | previously ~€2.8bn |
EBITDA | ~33% |
margin | previously ~30% |
2025 targets are based on 2020 currency exchange rates; EBITDA excluding extraordinary items
21
Questions & Answers
22
Attachments
- Original document
- Permalink
Disclaimer
Sartorius AG published this content on 27 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2021 14:07:01 UTC