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Joachim Kreuzburg, CEOJuly 25, 2012
Sartorius Group Conference Call
H1 2012
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Disclaimer
This presentation contains statements concerning the Sartorius and Sartorius Stedim Biotech Group’s 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.
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H1 2012 Highlights
Strong organic performance
Very successful ACHEMA-event
Key investment projects largely executed
Group guidance raised
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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
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+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
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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
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Lab Products & Services: Solid Organic Order Intake
H1 2011 H1 2012
1) Excluding extraordinary items
Order Intakein millions of €
EBITDA & EBITAunderlying1), in millions of €
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)
EBITDA & EBITA Marginsunderlying1), in millions of €
Sales Revenuein millions of €
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)
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Industrial Weighing: Significant Growth Against a Moderate Base
H1 2011 H1 2012
1) Excluding extraordinary items
Order Intakein millions of €
EBITDA & EBITAunderlying1), in millions of €
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)
EBITDA & EBITA Marginsunderlying1), in millions of €
Sales Revenuein millions of €
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
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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 instruments
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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
1) Excluding extraordinary items
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
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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 2012
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Joachim Kreuzburg, CEOJuly 25, 2012
Sartorius Stedim Biotech GroupConference Call
H1 2012
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Strong Increase in OI, Sales Revenue and Profit
Sartorius Stedim Biotechin millions of €(unless otherwise specified)
6M 2011 6M 2012Change
in %Change in %const. currencies
Order intake 251.6 279.3 11.0 7.5
Sales revenue 229.6 272.6 18.7 15.0
Underlying1) EBITA 38.6 48.8 26.3
Underlying1) EBITA margin 16.8% 17.9% +110bps
Underlying1)2) EPS in € 1.61 2.04 26.6
1) Excluding extraordinary items 2) Excluding non-cash amortization and valuation adjustments of hedging instruments
■ Order Intake: Strong growth with single-use products, especially filters and bags
■ Sales Revenue: H1 2011 represents a relatively low base; performance primarily fueled by single-use products
■ Underlying EBITA: Margin expansion mainly driven by strong sales growth
0
150
50
100
10
14
18
22
Marginsin %
16.817.9
20.4 20.9
18.8
15.0
17.9
14.2
H1 11H1 10 H1 12H1 09
Sales revenue in €m (lhs)
Underlying1) EBITA margin (rhs)Underlying1) EBITDA margin (rhs)
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+ 30.5 % + 7.7 % + 16.8 % + 13.3 %
Other Markets ~4%
Asia | Pacific ~19%
North America ~28%
Europe ~49%
76.3
9.6
133.4
€272.6m
EuropeSales1) in millions of €
North AmericaSales1) in millions of €
Asia|PacificSales1) in millions of €
Other MarketsSales1) in millions of €
Sales by Regions1)
in %
Highest Revenue Gains in North America
53.2
1) According to customers‘ location
H1 2012, growth in constant currencies
■ All regions contributed to strong sales growth■ North America reported the highest gains driven by single-use and equipment business■ Growth in Asia |Pacific continued to be dynamic■ Modest PIIGS-exposure (~15% of European sales revenue)
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Significant Increase in Underlying1) Earnings per Share
Sartorius Stedim Biotechin millions of €(unless otherwise specified)
6M 2011 6M 2012 Change in %
Underlying1) EBITA 38.6 48.8 26.3
Extraordinary items -2.9 -3.9 -33.8
Financial result -2.1 -2.7 -30.6
Underlying1)2) net profit after minority interest 24.7 31.2 26.6
Underlying1)2) EPS (€) 1.61 2.04 26.6
Operating cash flow 13.8 6.8 -51.0
Investing cash flow -8.9 -23.0 -159.2
1) Excluding extraordinary items 2) Excluding non-cash amortization and valuation adjustments of hedging instruments
■ Extraordinary items mainly related to U.S. site relocation and other corporate 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
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All Key Financial Indicators at Very Comfortable Levels
Net Debt to EBITDA1)
0
100
150
200
0.0
1.0
2.0
3.0
50
1) Excluding extraordinary items
Sartorius Stedim Biotech Dec. 31,2011
June 30,2012
Equity ratio in % 54.9 53.4
Net debt in millions of € 100.1 146.2
Gearing ratio 0.3 0.4
Net debt to underlying1) EBITDA 1.0 1.3
Interest coverage1) 22.5 24.8
Key Financial Indicators
Q1-Q4 Q1-Q4201120102009
Q1-Q4 Q1-Q42008
Net debt in €m (lhs) Net debt to EBITDA (rhs)
Q1-Q22012
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FY 2012 Guidance Raised
Guidance Previous New
Sales revenue growth1) ~6% - 8% ~10%
Underlying2) EBITA growth ~6% - 8% ~15%3)
■ CAPEX ratio expected to be around 10% including non-cash items of approx. 3 pct. points
1) In constant currencies 2) Excluding extraordinary items 3) Provided that currency exchange rates remain favourable as in H1 2012
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Thank you very much for your attention.