Sartorius Stedim Biotech S.A. Investor Relations
A Trusted Partner for the Biopharmaceutical Industry and Laboratories
Sartorius Stedim Biotech 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 Stedim Biotech’s 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 2.8 billion euros
- Increase underlying EBITDA margin1) to around 30%
1) Sartorius Stedim Biotech 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 Stedim Biotech 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 Stedim Biotech 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 Stedim Biotech has invested in its sales infrastructure and is planning to expand its production capacities.
Moreover, we are investing in the digitalization of our processes. In addition, we have substantially expanded our production capacities, above all for filter and bag products.
Based on its performance in the first quarter 2019, Sartorius Stedim Biotech confirms its guidance for fiscal 2019. Consolidated sales revenue is projected to grow by about 7% to 11%. This forecast reflects the changes to the sales agreement with the Lonza group for cell culture media. Without these changes, sales growth would probably be approximately 3 percentage points higher.
Regarding profitability, management forecasts that the company's underlying EBITDA margin will increase by slightly more than one percentage point over the prior-year figure of 28.2%. Of this figure, approximately half a percentage point is expected to be an operational increase, whereas the remainder will result from changes to the IFRS accounting rules1). The ratio of capital expenditures to sales revenue is projected to be around 11%, down from the year-earlier figure of 14.6%2).
All figures in this outlook are given in constant currencies. In spite of countermeasures already taken, a disorderly exit of the United Kingdom from the EU may have a certain impact on our supply chain; yet a reliable forecast of possible effects cannot be given at the present time.
1) IFRS 16 is required to be applied as of 2019 and regulates accounting of lease contracts. This leads to a somewhat extended balance sheet and thus to a slightly lower equity ratio. Further, this results in reporting longer-term lease payments as depreciation and, accordingly, in a somewhat higher EBITDA, among other things. 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: 9.7% for Q1 2018; 14.6% for FY 2018.
Sartorius Stedim Biotech S.A. is the parent company of the Sartorius Stedim Biotech Group. It is headquartered in Aubagne, France, and listed on the Euronext Paris.
Approximately 74% of the share capital and around 85% of the voting rights of Sartorius Stedim Biotech S.A. are held by Sartorius AG. Sartorius AG is a leading international bioprocess and laboratory equipment and technology provider headquartered in Göttingen, Germany, and listed on the Frankfurt Stock Exchange. It operates two divisions: the bioprocess business as a subgroup under its parent corporation Sartorius Stedim Biotech S.A. and the laboratory business as a further subgroup.
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 2018 Results
July 24, 2018
First-Quarter 2018 Results
April 24, 2018
Capital Markets Day 2018
February 21, 2018