Sartorius AG Investor Relations
A Trusted Partner for the Biopharmaceutical Industry and Laboratories
Sartorius is a leading international partner for the biopharma sector. Our solutions are supporting our customers to develop and produce drugs safely, timely and economically. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies.
Seven reasons to invest
- Clear focus on the attractive biopharma sector
- Long-term growth drivers and significant market entrance barriers
- Market leading position in key technologies and recognized brand
- High share of recurring revenue as well as diversified earnings base
- Strong presence in growth regions
- Proven track record with alliances and acquisitions
- High continuity with respect to customer base, employees and management
Strategy and Targets for 2025
Sartorius’ goal is to continue its profitable growth and systematically expand its position as a leading international partner for biopharmaceutical research and the industry. We are pursuing various strategic initiatives to grow sustainably up to 2025 – and beyond.
- Achieve consolidated sales revenue of around 4 billion euros with about two-thirds of this growth to be generated organically and about one third by acquisitions
- Increase underlying EBITDA margin1) to around 28%
- Expand sales in the Bioprocess Solutions Division to about 2.8 billion euros; increase the division’s underlying EBITDA margin to around 30%
- Grow sales in the Lab Products & Services Division to about 1.2 billion euros; increase the division’s underlying EBITDA margin to around 25%
1) Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization; adjusted for extraordinary items) as the key profitability indicator.
We focus in both divisions on the attractive biopharmaceutical market characterized by long‑term and stable growth trends.
Key Growth Drivers
- Growing world population
- Increasing incomes and better access to healthcare services in emerging economies
- Aging population and rise in age-related diseases in industrialized countries
Medical progress is also fueling growth, resulting in the ongoing development and approval of new biopharmaceuticals and in the improvement or expansion of indications for already existing active pharmaceutical ingredients. Therefore, a growing number of biotech medications are being approved for treatment of rare diseases considered incurable until now, and innovative cell and gene therapies are projected to further drive growth in the biopharma sector.
Sartorius has leading market positions in core technologies and is continuously expanding its portfolio by new, complementary technologies that help our biopharma customers develop and manufacture medications faster and more easily. Our strength in selecting suitable partners or acquisition candidates is based upon our in-depth understanding of applications. We are thoroughly familiar with our customers’ requirements and their entire value-added chains, and particularly understand the interactivity of the systems they use. Our innovation strategy is based on three pillars:
- Integration of innovations through acquisitions
- Alliances with partners
- Own product development
North America and selected countries in Asia are at the focus of our growth strategy.
North America is the world’s largest market for both the development and the manufacture of biopharmaceuticals. Because North America is home to the main competitors for both company divisions, Sartorius has historically lower market shares in this region than in Europe and Asia. Accordingly, the company is striving to gain market share, primarily by strengthening its sales and service capacities.
Our second regional focus is on Asia, especially on China, South Korea and India. These markets have tremendous growth potential due to their increased healthcare spending by private households and governments. In these regions, Sartorius has invested in its sales infrastructure and is planning to expand its production capacities.
Moreover, Sartorius is investing in the digitalization of its processes. In addition, it has substantially expanded its production capacities, above all for filter and bag products.
Based on its first-quarter performance, Sartorius confirms its forecast for the full year of 2019. Consolidated sales revenue is thus projected to grow by about 7% to 11%. This forecast considers the changes to the sales alliance with the Lonza group in the area of cell culture media. Without these changes, sales growth would probably be some 2 percentage points higher. Regarding profitability, management forecasts that the company's EBITDA margin will increase to slightly more than 27.0% over the prior-year figure of 25.9%, with the operating gain projected to be about half a percentage point and the remaining increase expected to result from a change in accounting rules.1) The ratio of capital expenditures to sales revenue is projected to be around 12%, below the 2018 figure of 15.2%2).
For the Bioprocess Solutions Division, management expects dynamic growth to continue. It anticipates that sales will increase by about 8% to 12% over the previous year’s high revenue base (without considering the modification of our partnership with Lonza, approx. 3 percentage points higher). Management forecasts that the division’s underlying EBITDA margin will increase to slightly more than 29.5% relative to the prior-year figure of 28.6%. The operating gain is expected to account for around half a percentage point.1)
The Lab Products & Services Division is partly dependent on the development of economic cycles. Against the backdrop of a weakened economy in many regions, management forecasts that the division’s sales revenue will increase by about 5% to 9% and the underlying EBITDA margin to slightly more than 20.0% (previous year: 18.5%), with the operating gain accounting for about half a percentage point1).
All forecasts are based on constant currencies, as in the past years. A no-deal exit of the U.K. from the E.U. might impact our supply chains in both divisions to a certain degree in spite of the measures already taken to counteract this development. A reliable prognosis concerning possible effects cannot be made at the current time.
1) IFRS 16 required to be applied as of 2019 regulates accounting of lease contracts. Ultimately, this leads to a somewhat extended balance sheet and thus to a slightly lower equity ratio. Further, the changes result in disclosure of longer-term lease payments as depreciation and, accordingly, in a somewhat higher EBITDA. This does not entail any material changes concerning the Group’s relevant net profit or earnings per share.
2) As of 2019, CAPEX is based on cash flow instead of balance sheet computation; CAPEX ratio restated: 11.1% for Q1 2018, 14.9% for FY 2018
Sartorius is a globally operating company with two separately listed entities: Sartorius AG and Sartorius Stedim Biotech S.A.
Sartorius AG is the parent company of the Sartorius Group. It is headquartered in Göttingen, Germany, and listed on the Frankfurt Stock Exchange with preference and ordinary shares.
Sartorius AG holds approximately 74% of the share capital and around 85% of the voting rights of Sartorius Stedim Biotech S.A. Sartorius Stedim Biotech S.A is headquartered in Aubagne, France, and listed on the Euronext Paris. It is the parent company of the Group’s bioprocessing business.
In addition, Sartorius AG holds a 100% stake in Sartorius Lab Holding GmbH, which is the parent corporation of the subgroup comprising the Group’s lab Business.
First-Quarter Results January to March 2019
April 18, 2019
Annual Report 2018
February 19, 2019
Nine-Month Results January to September 2018
October 23, 2018
Half-Year Report January to June 2018
July 24, 2018
First-Quarter 2018 Results
April 24, 2018
Capital Markets Day 2018
February 21, 2018