October 23+24, Dr. Axel Herberg, CEO

Transcription

1 Gerresheimer: Excellent prospects as a unique supplier to the Pharma & Life Science Industry Gerresheimer Capital Markets Day October 23+24, 2008 Dr. Axel Herberg, CEO 0

2 Disclaimer 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 forwardlooking 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. 1

3 Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 2

4 Gerresheimer s strategy Organic growth Growth through acquisitions Targeted investments in growing segments Continuous productivity and quality improvement Further capitalize on leading market positions Extension of product offerings/technology Extension of geographic footprint Consolidation/scale Pharma & Life Science Global market leadership positions 3

5 Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 4

6 The pharma market continues to be attractive due to solid fundamental growth drivers - Pharmaceutical sales USD 725bn Key growth drivers ROW Growing and aging population BRIC Japan North America Expanded access to healthcare, especially in emerging countries Drug innovation New therapeutic areas Generics Europe Growth rate 6% Source: IMS, Health, MIDAS Q2/2008 5

7 Four selected trends in the Pharma Industry and the consequences for Gerresheimer 1 Different speeds of growth in various regions of the world 2 Different size and growth rates of disease patterns 3 Trend to genericization 4 Strong market growth in biotech products 6

8 1 Different speeds of growth in various regions of the world North America and Europe remain most important markets; strongest growth lies in emerging countries - EUR bn - - Pharmaceutical sales: Market sizes and growth rates Europe North America BRIC 4-5% Japan 12-13% 4-5% ROW % % Source: IMS, Health, Market Prognosis Sep 2007 Global market 2008: USD 725bn 6% growth 7

9 Despite strong growth in the BRIC region North America and Europe will remain the most important markets - USD bn - - Absolute market growth by region - North America 14 Europe 9 BRIC 6 Japan 1 Source: IMS, Health, Market Prognosis Sep

10 1 Different speeds of growth in various regions of the world North America and Europe are the most demanding markets for their suppliers Market trends New sophisticated therapies with specialized packaging needs Upgraded government standards regarding safety, unit dose, quality and anti-counterfeit packaging Consequences for Gerresheimer Highest standard of quality and service offered by Gerresheimer Joint development of new products with customer Relatively high investments to approach 0-defect quality levels Gerresheimer presence 93% of sales: Europe and North America will remain most important markets 31 plants with 8,500 employees 9

11 1 Different speeds of growth in various regions of the world Gerresheimer presence in largest and strongest growing BRIC-country China - Pharmaceutical market growth rates in BRIC-countries - 13% 9% 8% 6% Market size (EUR bn) Market trends Extensive programs to upgrade quality of locally produced drugs Expanding pharma manufacturing capabilities Consequences for Gerresheimer Medium quality level of products and technology sufficient Use of locally made equipment or upgraded older machines from Western plants Limited capex required in the next years Introduction of Western processes Gerresheimer presence 5% of sales 8 plants with 1,700 employees China India Brasil Russia 10

12 1 Different speeds of growth in various regions of the world Gerresheimer is present both in the big markets as well as in the fast-growing regions Region Plants Employees Europe 20 5,802 Americas 14 3,171 Asia 6 1,325 Total 40 10,298 As of August 31, 2008 Headquarters Tubular Glass Plastic Systems Moulded Glass Life Science Research 11

13 2 Different size and growth rates of disease patterns GX supplies packaging solutions for all kinds of drugs; however, the growing respiratory and diabetes markets are of particular interest $36 Oncologics 2007(e) MARKET SIZE, USD bn $30 $24 $18 $12 $6 CCBs ACE inhibitors Lipid regulators Anti-depressants Epos Bone regulators PPIs Antipsychotics Asthma/COPD ARBs Anti-epileptics Platelet Aggr Inhib Anti-diabetes HIV Antivirals $0-15% -5% 5% 15% 2008 growth Source: IMS Health: MIDAS; therapy Forecaster, IMS Consulting Sep

14 2 Different size and growth rates of disease patterns North & South America as well as Australia show a particularly high prevalence of clinical asthma % of population with asthma >10% % % % 0-2.5% No standardized data Source : LEK study

15 2 Different size and growth rates of disease patterns Asthma and COPD patient numbers are important demand drivers Treated Asthma and COPD patients in the US, Europe and Japan ( e) Million Total COPD (Europe, Japan) Prevalence of asthma is expected to continue to increase worldwide Increasing air pollution Hereditary nature of the disease More people are correctly diagnosed and have access to asthma medication 25 COPD (US) e Asthma (Europe, Japan) Asthma (US) Demand for inhalers is expected to grow considerably faster worldwide than prevalence rates Source: LEK study

16 2 Different size and growth rates of disease patterns Market growth for Inhalation driven by strong growth of Dry Powder Inhalers (DPI) Worldwide Inhaler market by type ( e) DPI's MDI's 1 Advantages of Dry Powder Inhalers: DPI's are easier to use (breath actuation) Precise dosage to the lung e 1 Metered Dose Inhalers; Source: LEK study

17 2 Different size and growth rates of disease patterns Strongest prevalence of diabetes in North America and Europe - Prevalence of diabetes worldwide in % of adult population in World North America Europe Middle East South America Asia Pacific China 1 Refers to population ages between years. Source: International Diabetes Federation, Diabetes Atlas, 2003, p. 9 16

18 2 Different size and growth rates of disease patterns Facts Diabetes Background diabetes disease Number of persons concerned will increase globally to 350m until % of people with diabetes have not been diagnosed or treated Main reasons for increase in diabetes prevalence are behavioural patterns such as limited physical activity and malnutrition Around 90% of diabetes is type 2 diabetes Major pharma companies involved in diabetes diagnosis and treatment Insulin producers: Novo Nordisk, Eli Lilly, Sanofi-Aventis Manufacturers of diagnosis equipment: Roche, Abbott, Bayer, Life Scan 17

19 2 Different size and growth rates of disease patterns Gerresheimer is the only Pharma & Life Science supplier to offer a broad range of diabetes products Anti-diabetes products of Gerresheimer Vials and cartridges Pens Lancets and lancing devices GXI Division Tubular Plastic Plastic Glass Systems Systems 18

20 3 Trend to genericization Generics outgrow original brands Sales - USD bn % 12% 10% 8% 6% 4% 2% % Top 8 market generic sales Original brand growth Source: IMS Health: MIDAS; therapy Forecaster, IMS Consulting Sep

21 3 Trend to genericization So far, generics have not gained much ground in injectable drugs, but this trend is changing - Global Generics Blockbuster Sales (USD) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Over 2011 Injectables Oral applications Volume growth driver for Tubular Glass Division Source: IMS Consulting 20

22 4 Strong growth in biotech products More and more Blockbuster drugs are based on biotech products - Number of Blockbuster Products Total 39 Total Biotech Other Source: IMS, Health, MIDAS, MAT Dec

23 4 Strong growth in biotech products Many biotech drugs are filled in prefillable syringes and vials An opportunity for Gerresheimer 22 Biotech Blockbusters Dosage form Vial Pref. Syringes Enbrel (Amgen/Wyeth)!! Aranesp (Amgen)!! Remicade (J&J/SP)! Mabthera/Rituxan (Roche)! Neulasta (Amgen)! Erypo/Procrit (J&J)!! Herceptin (Roche)! Epogen (Amgen)!! Avastin (Roche)! Humira (Abbott)!! Lantus (Sanofi-Avantis)! Avonex (Biogen Idec)!! Neorecormon (Roche)!! Gardasil (Merkc)! Rebif (Serono)! Neupogen ( Amgen)!! Novorapid (Novo Nordisk)! Erbitux (ImClone/Merck KGaA/BMS)! Lucentis (Roche)!! Synagis (Abbott)! Humalog (Lilly)! Betaferon (Bayer/Schering AG)!! 22

24 Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 23

25 Understanding the four aspects of the Pharma Industry Regulation/Quality Production Procurement R&D and Marketing Registration Quality Assurance Quality Control Production Purchasing Planning Logistics Product Management R&D Sales / Marketing Customer requirements Comply with regulations Increasing quality requirements Avoid risk Efficiency and stability of production Continuity Low costs Just in time New product development Opportunities Life cycle management New ideas 24

26 Product quality requirements are permanently raised Regulatory environment Registration Primary packaging is key element of drug registration Standards must be fulfilled to obtain registration Registration authorities FDA, EMEA, national authorities 50% of all UN-countries use FDA as a guideline Standards US and European Pharmacopeia Reference Standards GMP (Good Manufacturing Practices): Regular audits required: 1 per year for sterile, 1 every two years for unsterile products Processes must be validated Various ISO norms Quality requirements Constant increase of quality requirements driven by the customer and the authorities Trend towards 0-defect level Even higher requirements for biotech products 25

27 Gerresheimer selects the marketing approach based on the specific needs of the customer - Distribution of pharmaceutical sales % 45% 56% 63% 37% Top Top Top Top Pharma companies Key account approach # 21 ~14000 Approach by local sales force or distributor 26

28 Customers have different decision makers and levels depending on the topic Decision level Local Global Production Contracts Quality New products 27

29 Gerresheimer well positioned as a global partner to the Pharma & Life Science Industry Gerresheimer seen as a strategic global partner by the large pharma companies Involvement of higher level management at the customers due to size of Gerresheimer Easier access to opportunities for Gerresheimer on different product categories and locations Unique selling proposition of developing products that combine glass and plastic materials 28

30 Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 29

31 Management organization of Gerresheimer is characterized by full divisional P&L responsibilities and a small central staff Dr. Axel Herberg (CEO) Hans-Jürgen Wiecha (CFO) Uwe Röhrhoff Dr. Max Raster Controlling Legal HR Finance Investor Relations Gerresheimer Management System Key Account Management Marketing/ PR M&A IT Plastic Systems Moulded Glass Tubular Glass Plastic Packaging Moulded Glass Europe Tubular Glass America Gerresheimer Wilden Moulded Glass US Tubular Glass Europe & Asia Moulded Glass China Tubing Operations Life Science Research Kimble Chase JV 30

32 How do we manage our business? Divisional tasks Full P&L responsibility with strong customer and earnings focus Strategic expansion (embedded in Group strategy) Technical Competence Centers Corporate functions Financial objectives and control Continuous improvement through Gerresheimer Management System (GMS) Key Account Management System (KAM) 31

33 Different key success factors are important for the P&L management in our four divisions - Key earnings levers by division - Tubular Glass Plastic Systems Tubing Tubular Converting Plastic Packaging Medical Plastic Systems Moulded Glass Life Science Research Yield X X X X X Utilization X X X X Mix Management X Low Labor Cost X X 32

34 Integrated technology approach through Technical Competence Centers Tubular Glass: Vineland, US: Tubing Bünde, Germany: Syringes Wertheim, Germany: Ampoules Morganton, US: Vials Moulded Glass: Lohr, Germany: Pharmaceutical bottles type III Chicago, US: Pharmaceutical bottles type I Tettau, Germany: Cosmetics Plastic Systems Wackersdorf, Germany: Diagnostics and pharma plastic systems Vaerloese, Denmark: Tablets & powder containers Boleslawiec, Poland: Bottles for liquids Zaragoza, Spain: PET containers Life Science Research: Vineland, US: Reusable and disposable laboratory equipment 33

35 Gerresheimer Excellent prospects as a unique supplier to the Pharma & Life Science Industry Clearly defined strategy Stable, non-cyclical growth Multiple external expansion possibilities Global and well-protected setup Stable cash flows Solid financing 34