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Investor Presentation
April 2020
This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the
Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could
cause the actual results, financial position, development or performance of the Company to differ materially from the
estimations expressed or implied herein.
The Company does not guarantee that the assumptions underlying such forward-looking statements are free from
errors nor does the Company accept any responsibility for the future accuracy of the opinions expressed in this
presentation or the actual occurrence of the forecast development.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any
information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is
accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or
any of its parent or subsidiary undertakings or any of such person‘s officers, directors or employees accepts any
liability whatsoever arising directly or indirectly from the use of this document.
Disclaimer
Investor Presentation 209/04/2020
3
Gerresheimer at a glance
Operational Update Q1 2020
Financial Update
Guidance
Market Environment
3
2
1
Agenda
4
5
33%
22%
27%
16%1%
Strong business foundations, developing our business model
beyond our current setup to capture longer term potential
4
Plastics & Devices
REVENUE SPLIT BY SECTOR
Pharma & Healthcare: 81%
Cosmetics: 13%
Others: 6%
81%
13%6%
1. According to IQVIA definition of emerging markets for FY 2019. For further details see note 8 of consolidated financial statements within FY 2019
annual report
2. Underlying revenues and adjusted EBITDA differ due to effects from Sanofi cancellation. For more details prefer refer to our AR 2019.
Primary Packaging Glass
Revenues
2019
EUR 631.6m
Adj. EBITDA
2019
EUR 122.9m
Margin
2019
19.5%
Revenues
2019
EUR 758.3m
Adj. EBITDA
2019
EUR 196.4m
Margin
2019
25.9%
Solid financial profile Leading market positions in
attractive niche markets
Adj. EBITDA
EUR 297m
Strong Cash Flow generation
and lower capital intensity
Leverage at 2.4x as of Nov 30, 2019
#1 in Europe for plastic
packaging and
inhalation
#1 in the US for
prescription and
injectables
#2 in Europe for
diabetes, pens
and syringes
Strong emerging market
presence in South America,
India and China for plastic
packaging, pens, moulded
glass, ampoules, vials and
cartridges
REVENUE SPLIT BY REGIONS
Europe (ex. GER): 33%
Germany: 22%
Americas: 27%
Emerging markets1: 16%
Other regions: 1%
Well invested assets &
factories, solid customer
basis
37 plants in
15 countries
Delivering to
91 countries over 6
continents
Over
1,500customers
Supplying all
Top 10 Pharma customers
Advanced Technologies2)
Largest customer makes up for ~7% of total
revenues
Clearly identified
revenues streams
Technology & Platform operator
Revenues
2019
EUR 6.4m
Adj. EBITDA
2019
EUR -23.4m
Investor Presentation
Revenues
EUR 1.40bn
09/04/2020
5
Gerresheimer at a glance
Operational Update Q1 2020
Financial Update
Guidance
Market Environment
3
2
1
Agenda
4
5
2
1
Key Take-aways Q1 2020
6
Q1 performance according to plan
Reported Revenues of EUR 304 m
Adjusted EBITDA of EUR 51 m
Minor impact from Covid-19 on operations in Q1
The Pandemic takes attention and is well managed;
resilience of our business model becomes evident
On track to deliver our Guidance for 2020
Secured refinancing of EUR 190 m promissory loan with maturity in Nov 20
09/04/2020 Q1 2020 Earnings
Our role as key supplier for Pharma and
Healtcare makes us resilient
We are seen as essential manufacturer in
all relevant jurisdictions
Global footprint with 37 plants in 14
countries reduces the "cluster risk" of few
centralized global plants
Sufficient liquidity buffer: Currently around
EUR ~110 m headroom with high
discretionary spent potential to be managed
Our Business Model confirms its Robustness in Times of Crisis
709/04/2020 Q1 2020 Earnings
Global plant network
Revenue split by end market
Food, Beverage and Hygiene 6%
Cosmetics 13%
Pharma and Healthcare 81%
2019
The four most important Aspects during the Pandemic
809/04/2020 Q1 2020 Earnings
Business Continuity
Demand / Customers
Supply Chain
Balance Sheet Strength
1
2
3
4
Business Continuity: We are essential for critical Infrastructure
909/04/2020 Q1 2020 Earnings
Ensuring the health and safety of our employees is our priority
Global pandemic plan activated with dedicated crisis teams at the end of February
Hygiene rules, travel and visitor bans, containment of groups, home office where applicable
Our plants are regarded as essential manufacturers in all countries
We live up our responsibility for pharma and healthcare
Our plants are fully operational and running
We ensure our business continuity to provide essential products for pharma and healthcare
Guarantee Business Continuity for our Customers
1009/04/2020 Q1 2020 Earnings
Our customers are essential in critical
infrastructure in all countries, i.e.
Pharma and Health Care Industry
Additional demand in Pharma
packaging as an opportunity
High demand for packaging in Food,
Beverage and Hygiene
Demand Side
No shortage of raw materials, cullets,
granulate, glass tubes
Key suppliers of us also defined as
essential manufacturer
We work very closely with all our
supply chain partners
Supply Side
Sufficient sources of
liquidity available
Financial headroom
of EUR ~110 m
Cost and capex phasing
adjustments if necessary
Balance Sheet
Strength
1109/04/2020 Q1 2020 Earnings
Growth levers
Underlying
Market Growth
Growth
segments
New products
4 65
Enablers
Mindset for Growth
/ Excellence
Investment
program
Innovation
1 32
The Pandemic needs Management Attention; nevertheless the
Focus on the long-term profitable Growth Story is unchanged
12
Gerresheimer at a glance
Operational Update Q1 2020
Financial Update
Guidance
Market Environment
3
2
1
Agenda
4
5
3
1
Q1 2020 – robust as expected
13
(EUR m) Q1 2020 Q1 2019 YoY Analysis
Revenues 303.9 308.5 -1.8%2) Due to revenue model change at Sensile
Adj. EBITDA 51.1 53.61) -8.9%2) Due to revenue model change at Sensile
One-off effects -1.1 0.1
EBITDA 50.0 53.71)
Depreciation, amortization & impairment -38.2 -37.0
Net finance expense -4.9 -7.0 Favourable refinancing in EUR
Income taxes -2.7 -2.7
Net income 4.2 7.01)
Adjustment +9.4 +10.3
Adj. net income 13.6 17.31)
09/04/2020 Q1 2020 Earnings
1. Excl. EUR 92.3m other operating income in connection with the derecognition of contingent purchase price components connected to the acquisition of Sensile Medical.
2. Organically, adjusted for exchange rate effects and acquisitions and divestments as well as regarding Adj. EBITDA excluding the effects from the first time application of
IFRS 16.
34.231.4
Q1 2019 Q1 2020
Adj. EBITDA
25.2
29.5
Q1 2019 Q1 2020Adj. EBITDA
14
— Centor impacted by one-off destocking effects
— P&D w/o Centor one-off generated mid-single digit
growth with higher margin
— Centor back on track in Q2 2020: Solid growth and
higher Adj. EBITDA contribution
— Tubular glass in the US developed well
— Strong growth in Europe
— Efficiency gains support margin expansion
— Margin 20.1% (vs. 17.8% in Q1 2019)
— Change of Revenue model: From contract developer for
PharmaCo to a revenue sharing partner of PharmaCo
— Advanced Technologies as innovation driver and long
term investment case
— Negative Adj. EBITDA front-end loaded in FY 2020
— Development of micro pump for chronic heart failure
treatment with SQI according to plan
P&D
PPG
GAT
EUR m
Organic
growth
-1.3%
Organic
growth
+2.2%
Q1 2020 Divisions: Robust core business
09/04/2020 Q1 2020 Earnings
160.7 158.0
Q1 2019 Q1 2020
Revenues
141.9
146.5
Q1 2019 Q1 2020
Revenues
6.6
0.8
Q1 2019 Q1 2020
Revenues
1.0
-4.2
Q1 2019 Q1 2020
Adj. EBITDA
Organic
growth
-11.8%
Organic
growth
14.4%
15
(EUR m) Q1 2020 Q1 2019 Change Analysis
Adjusted EBITDA 51.1 53.61) -2.5
Change in net working capital -81.8 -49.4 -32.4Phasing effects in Q1 with compensating
quarters ahead
Capex -32.3 -16.7 -15.6 Capex program according to plan
Net interest paid -1.7 -2.7 +1.0
Net taxes paid -7.7 -8.2 +0.5
Pension benefits paid -2.7 -2.6 -0.1
Other -2.8 -3.11) +0.3
Free cash flow before M&A -77.9 -29.1 -48.8
Q1 2020: Cash flow performance not representative
09/04/2020 Q1 2020 Earnings
1. Excl. EUR 92.3m other operating income in connection with the derecognition of contingent purchase price components connected to the acquisition of Sensile Medical.
16
Net financial debt according to credit agreement in force
In EUR m Nov 2019 Feb 2020
Revolving credit facility 302.3 369.6
Promissory loans (2017) 250.0 250.0
Promissory loans (2015) 425.0 425.0
Local borrowings 40.9 42.7
Cash and cash equivalents (85.8) (72.4)
Net financial debt according to
credit agreement in force1) 932.4 1,014.9
NET FINANCIAL DEBT1) AND ADJ. EBITDA LEVERAGE
Net financial debt according to the credit agreement in force1)
Adj. EBITDA leverage (x)
EXPIRY DATE MAIN FACILITIES
550.0
189.5
305.5
109.0
25.5 45.5
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
RCF
Promissory loans
09/04/2020 Q1 2020 Earnings
932.4
1,014.9
3.1x2)
3.4x
Nov 30 2019 Feb 29 2020
1. Without lease liabilities and liabilities from installment purchases.
2. Excl. EUR 92.3m other operating income in connection with the derecognition of contingent purchase price components connected to the acquisition of Sensile Medical.
End of Q1 2020: Financial StatusPromissory loan of EUR 189.5m due Nov 2020
Status refinancing of promissory loan due Nov 2020Already secured by firm bank credit commitment
17
SECURE REFINANCING
▪ Safeguarding the redemption of promissory loans maturing in Nov 2020 in a volatile market environment
▪ Firm credit commitment by core banks to secure refinancing in the amount of EUR 190.5m
▪ Maturity: 24 month starting from April 2020
KEY REFINANCING POINTS
▪ Planned: Issuance of new promissory loans
▪ Purpose: Redemption of promissory loans in the amount of EUR 189.5m maturing Nov 2020
▪ Timing: Opportunistically
09/04/2020 Q1 2020 Earnings
18
Gerresheimer at a glance
Operational Update Q1 2020
Financial Update
Guidance
Market Environment
3
2
1
Agenda
4
5
4
1
19
Outlook Q2 2020
Running on schedule with growth above 5%
Plastic prescription container in high demand in the US
Pharma: Running on plan with strong growth
Cosmetics: Lower in perfume, robust in skincare
Covid-19 might lead to attractive business opportunities
SQ Innovation project on track
Clinical trials schedule on plan
09/04/2020 Q1 2020 Earnings
P&D
PPG
GAT
Guidance confirmed
20
At Group
level
(FXN)
1. Including a positive effect of EUR 9m to EUR 11m from the transition to IFRS 16.
Revenue growth
Adjusted EBITDA
Capex
(% of sales)
Mid-single digit
growth
~21%1
~ 12%
Mid-single digit
growth
~ 23%
8 - 10%
FY 2020 Mid-term
09/04/2020 Q1 2020 Earnings
Guarantee Business Continuity
21
Our Priorities
09/04/2020 Q1 2020 Earnings
Deliver according to plan
Be prepared for the day after tomorrow
22
Gerresheimer at a glance
Operational Update Q1 2020
Financial Update
Guidance
Market Environment
3
2
5
Agenda
4
1
Leading market positions in attractive niche markets
23
DIVISION PLASTICS & DEVICESPRIMARY
PACKAGING GLASS
PRODUCTPlastic
Packaging1Inhalation
(DPI)2Diabetes
Diagnostics3 PensSyringe
Systems
MG Pharma
(Type I)
Ampoules,Vials,
Cartridges
EUROPE #1 #1 #2 #2 #2 #2 #3
NORTH
AMERICA#1 #1 #2 #1 #1
EMERGING
MARKETS
#1(South America
and India)
#1(South
America)
#2(India)
#1(China)
1. North America: plastic vials for oral prescription drugs
2. DPI = Dry Powder Inhaler (World market)
3. Lancets and lancing devices
Investor Presentation09/04/2020
We provide solutions across all key product categories
24
DIVISION PLASTICS & DEVICES PRIMARY PACKAGING GLASS GAT
PRODUCTPlastic
PackagingInhalation
(DPI)2Diabetes
Diagnostics3 PensSyringe
Systems
MG Pharma
(Type I)
OTC Liquids and
Syrups (Type II &
III)
TGInjectables
Sensile Medical
Gerresheimer ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Schott ✓ ✓
Becton
Dickinson1 ✓ ✓
Nipro1✓ ✓
Ompi ✓ ✓
Jabil Circuit
(Nypro)1 ✓ ✓ ✓ ✓
Consort Medical1 ✓
West Pharma1✓ ✓
Nemera ✓ ✓
Berry Plastics1✓
Facet ✓
Ypsomed1✓ ✓
Desjonquères ✓ ✓
Rocco Bormioli ✓ ✓ ✓
Insulet ✓
1. Public company // 2. DPI = Dry Powder Inhaler (World market) // 3. Lancets and lancing devices
Source: Company estimates
Investor Presentation09/04/2020
Current customer overview 1
25
ABOUT 7% generated
with our Top 1 customer
48% of revenues generated with
our Top 20 Pharma & Generics
customers in 2018
35% of revenues generated with
our Top 10 Pharma & Generics
customers in 2018
Mylan
Boehringer Ingelheim
Bayer
Roche
Fresenius
Pfizer
Avon
L‘Oreal
Sanofi
Novartis
Teva
Merck
Beiersdorf
J&J
Novo
Nordisk
Astra
P&G
Coty
GsK
1. Customers names have been inputted randomly and clock-wise presentation does not correspond to revenues ranking
Investor Presentation09/04/2020
1. Tubular Glass + Moulded Glass Pharma
2. Strategic relevant markets, Gerresheimer estimates
Gerresheimer is operating in large and attractive markets
26Investor Presentation
The strategic relevant core market for Gerresheimer is today ~ € 15bn
CosmeticsGlass
PharmaGlass1
PharmaPlastic
Syringes
Drug DeliveryDevices
~ 1.8
LOW SINGLE DIGIT
~ 2.2 ~ 5.8 ~ 0.9
MID SINGLE DIGIT
~ 4.0Estimated Market
Size 2017² (in € bn)
Market CAGR '17-’22²
(in %)
09/04/2020
Clear definition of target markets in Pharma & Healthcare …
27Investor Presentation
Filling machines
Formulation
PHARMA
VALUE
CHAINResearch
Product &
Process
Development
ProductionPrimary
PackagingLogistics
Marketing &
SalesServices
Delivery
Systems &
Assembly
Blisters
Su
pp
lie
rs
MUST
HAVESSuperior product and
Technologies1 Cost leadership2 Min. #3 for market shares3
HA
RD
WA
RE
CO
NS
UM
AB
LE
SS
ER
VIC
ES
Tools, Assembly lines for devices
Primary packaging glass & plastic,syringes,closures
Inhalation,injection
Device design& dev.
Gx
stra
teg
ic re
leva
nt m
ark
et
(Pre-) assembly
Logistics
Infusion, trans-dermal, implants, eye treatment, ear-nose-throat
Product analytics(e.g. sterility)
Filling
Gx accessible market
09/04/2020
… as well as in Cosmetics
28Investor Presentation
Filling machines
Moulded Glass Packaging Samples & Decoration
Components
(Pumps & Caps)
Formulation Innovative bottle design & development
COSMETIC
VALUE
CHAINResearch
Product &
Process
Development
Production
Primary
Packaging &
Decoration
LogisticsMarketing &
SalesServices
Delivery
Systems &
Assembly
Gx
stra
teg
ic
rele
va
nt m
ark
et
Componentpre-assembly & sealing
Plastic
Bottles
Product analytics
Filling
Gx accessible marketSu
pp
lie
rs
MUST
HAVESSuperior product and
Technologies1 Cost leadership2 Min. #3 for market shares3
HA
RD
WA
RE
CO
NS
UM
AB
LE
SS
ER
VIC
ES
09/04/2020
Underyling market growth
29
1. IQVIA (former Quintiles IMS) January 2020.
2. Generic units are included in Medicine units.
Expected development of Pharma market volumes1
CAGR ’20-‘24 (in %)
Medicine
standard
units
Generic
standard
units2
Global 1.5% 1.9%
Developed markets -0.3% 0.1%
Pharmerging markets 2.6% 3.1%
ROW 0.6% 0.9%
Global volume growth ‘19 1.4% 2.6%
Investor Presentation09/04/2020
30
Financial Calendar 2020
FINANCIAL CALENDAR
June 24, 2020 Annual General Meeting 2020
July 14, 2020 Publication 2nd Quarter 2020
October 13, 2020 Publication 3rd Quarter 2020
End of 2020 Capital Markets Day
Overview of Abbreviations and Definitions
ABBREVIATIONS AND DEFINITIONS
Adj. EBITDA Net income before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses,
restructuring expenses and one-off income and expenses
Adjusted EPS Adjusted earnings per share after non-controlling interests, divided by 31.4m shares
Adjusted net income Net income before non-cash amortization of fair value adjustments, non-recurring effects of restructuring expenses, portfolio adjustments, the balance of
one-off income and expenses – including significant non-cash expenses – and the related tax effects
CAGR Compound Annual Growth Rate
Capex Investments in tangible and intangible assets
EBIT Earnings before interest and taxes
EBITA Earnings before interest, taxes and amortization
EBITDA Earnings before interest, taxes, depreciation and amortization
FXN "Foreign currency neutral" - based on budgeted FX-rates
Gx ROCE Adjusted EBITA divided by capital employed (total assets minus investments, investments accounted for using the equity method and other loans, minus
cash and cash equivalents, minus pensions (without pension provisions), deferred tax liabilities, and income tax liabilities, minus prepayments received,
trade payables, and other non- interest bearing liabilities)
Gx RONOA The ratio of adjusted EBITA to average net operating assets, comprising the sum of property, plant and equipment and net working capital
Adj. EBITDA Leverage The relation of net financial debt to adjusted EBITDA of the last twelve months, according to the credit facility agreement currently in place
Net financial debt Short and long term debt minus cash and cash equivalents
Net finance expense Interest income and expenses related to the net financial debt of the Gerresheimer Group. It also includes net interest expenses for pension provisions
together with exchange rate effects from financing activities and from related derivative hedges.
Net working capial
(NWC) Inventories plus trade receivables minus trade payables plus/minus prepayments
Op. CF margin Adjusted EBITDA plus/minus the change in net working capital, minus capex and in relation to revenues
Operating cash flow Adjusted EBITDA plus/minus change in net working capital, minus capex
P/E Ratio Company's share price divided by the adj. EPS
RCF Revolving credit facility
yoy year-on-year
Investor Presentation 3109/04/2020
Our Vision
Gerresheimer will become the leading global partner
for enabling solutions that improve health and well-being.
Our success is driven by the passion of our people.