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Transcript of Sartorius Berenberg & Goldman Sachs 20120924.ppt ... Bank & Goldman Sachs ... Seite 2 This...
Page 1
Dr. Joachim Kreuzburg, CEO
Berenberg Bank & Goldman Sachs Inaugural German Corporate Conference, Munich | September 24, 2012
PresentationSartorius
Seite 2
This presentation contains statements concerning the Sartorius and Sartorius Stedim Biotech Groups’ 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.
Disclaimer
Agenda
1
2
Business Overview
Seite 3
4
Bioprocess Solutions
Lab Products & Services
5
Current Key Projects
H1 2012 Results | Guidance 2012
6 Appendix
3
Page 4
Sartorius at a Glance
2011 Figures; EBITDA and EBITA excluding extraordinary items 1) Based on 2011 pro forma figures; according to customers’ location
Sales Split by Divisions1) Sales Split by Regions1)
Bioprocess Solutions 53%
Lab Products & Services 34%
Industrial Weighing13%
Europe ~53% Asia ~23%
North America ~20 %
Other Markets ~4%
Sales
Employees
EBITDA1)
EBITA1)
€733.1m
4,887
€136.6m
€112.2m
4
Page 5
SingaporeKuala Lumpur
Bangalore
Hanoi
TokyoBeijing Seoul
Hong Kong
Makati CityBangkok
Chennai
ShanghaiSuzhou
Mississauga
Mexico City Yauco
Neptune
Denver Bohemia
Concord
São Paulo
Buenos AiresMelbourne
KajaaniHelsinki
St. PetersburgMoscow
GoettingenHamburg
AachenTaastrup
PoznanFrankfurt
Guxhagen
LourdesAubagne
M’HamdiaMilan
Florence
TagelswangenViennaBudapest
Madrid
Nieuwegein
Vilvoorde
Paris
Epsom
StonehouseDublin
Torquay
Sales Production | Production and Sales
Global Presence: 33 sales and 18 manufacturing sites
Highlights of Sartorius’ Core Divisions
Seite 3
More than 85% of sales generated from global TOP 1-3 position
Strong base in all growth regions; Asia accounts for 22% of sales
Scalable business model with attractive incremental margins
Proven track record with alliances and acquisitions
Clear focus on fast-growing businesses, especially the highly attractive biopharma market 1
2
3
4
5
6
Agenda
1
2
Business Overview
Seite 3
4
Bioprocess Solutions
Lab Products & Services
5
Current Key Projects
H1 2012 Results | Guidance 2012
6 Appendix
3
Strong Long-Term Trends Drive Further Growth
Global Trends
Trends in Biomanufactoring
Higher yields, higher efficiencies in cell culture
Increasing cost pressure
Personalized medicine
Single-use Technologies
Double-digit growth
Highest growth in innovative segments, e.g. bioreactors, fluid management
Global Trends
Aging population in Western countries
Increasing access to therapeutics and vaccines in developing economies
Growing number of chronic and civilization diseases
Trends toward Biotech
Strong pipelines, e.g. mAbsand vaccines
Continued penetration in already approved indications
Label expansions
Increasing share of biologics approvals
Phase III | reg. Phase II Phase IMarketed
0
20
40
60
80
100
120
140
1
Biopharma Market Grows
Total Pharma Market
856
Total Pharma Market 1080
2010 2015
CAGR3-6%
CAGR6-9%
Biotech 195
Biotech 138
Page 8
Global mAb Pipeline1)
1) DataMonitor Monoclonal Antibodies 2010, HC00029-002 Slidepack 10/10
IMS Market Prognosis, April 2011. In US$ bn.
8
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Our Focus: Production Processes of Biologic Drugs
Pre-clinical Phase
Industrial Production
Clinical Phase I
ClinicalPhase II
ClinicalPhase III
Process development
Drug | Vaccine
Increasing volumes along the process chain
ApprovalValidated Process
Highly regulated markets (FDA, EMEA, GMP, etc.) Sartorius products are part of the approval documentation High entry barriers for new competitors Stable pricing and attractive margins
9
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The Widest Product Portfolio Along Biopharma’s Process Chain
MediaPreparation
Mixing Systems Sterile Filters Storage Bags Virus Inactivation
Technologies
Fermentation |Cell Culture
Seed Bioreactor Production Bioreactor Freeze-Thaw Techno-
logies
Cell Harvesting
Cell Removal & Clarification Filters
Crossflow Systems & Consumables
Configurable Solutions Sterile Filters
Value Added Services
PurificationBuffer Preparation
Single-Use-Mixing Technologies
Bags & Tanks Monitoring &
Control Technologies
Key Production Steps
Crossflow Systems & Consumables
Membrane Chromatography
Virus Inactivation Technologies
Sterile Filters
10
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Equipment~25%
Single-Use~75%
~ €410m
11
75% Recurring Business; Attractive Incremental Margins
Page 121) Own estimates 2) Pharmaceutical Technology Europe Vol. 22 No. 10, Oct. 2010; own estimates
Past Present Future
10 – 20%
30 – 40%
70 – 80% CAPEX reduction
Lower cleaning costs | validation
Downtime reduction, i.e. higher equipment utilization
Enhanced process performance
Reduced risk of cross-contamination
Fewer CO2 emissions
Higher flexibility
Market Penetration of Single-use Products1)
Compelling Value Proposition Drives Single-Use Penetration
Reduction of life-cycle production costs by 15 % to 40 %2)
12
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Leading Worldwide Market Positions
Filtration
amongTOP 3Fermentation
#1Fluid Management
#1
Competitive Landscape
Pall
Merck Millipore
Thermo Fisher
ATMI
Merck Millipore
NBS (Eppendorf)
Applikon
ABEC
GE
Thermo Fisher
13
Page 14
New Product Launches in Bioprocess Solutions
Orthogonal Platform for Polishing
Sartopore® Platinum - Capsules for sterile filtration
FlexMoSysTM – Easy to set up cleanroom systems1)
Biostat STR® - Single-use bioreactors up to 1,000 L
1) Cooperation with G-CON
14
Agenda
1
2
Business Overview
Seite 3
4
Bioprocess Solutions
Lab Products & Services
5
Current Key Projects
H1 2012 Results | Guidance 2012
6 Appendix
3
Page 16
New Focus on Lab Instruments, Consumables and Services
Focus
Standard lab instruments used in daily routine in QA|QC and research labs
Need for consumables
Demand for services
Rationale
Excellent brand & reputation
Strong market position, esp. balancesand pipettes
Global sales & service infrastructure
Attractive margins (product gross margins 50%+)
1) Pro forma 2011 including Biohit LH
Lab Consumables & Services~ 33 %
~€260m1)
Substantial Organic Growth Opportunity
Lab Instruments~ 67 %
16
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Targeting a >$3 Billion Market
Academia ~20%
Food & Beverage, Chemicals, Other ~40%
Pharma | Biotech ~40%
Chemicals, Reagents & Kits 29%
Consumables 36% Instruments & Equipment 35%
~$39bn> $2.5bn
Key Market Characteristics
Fragmented market Solid market growth Attractive margins Distributors obtain significant market share Services represent key success factor
Key Market Drivers
Global & industry-specific growth Public and private R&D spending Expansion of emerging markets Improving product features
1) Frost & Sullivan, 2010 Annual Forecast and Analyses of the Global Market for Laboratory Products 2) Sartorius estimates
> $3bn
Targeted Instruments & Consumables Market 2)Global Laboratory Products Market1)
17
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Strong Position in Key Categories
Mettler Toledo Eppendorf
Mettler Toledo
Thermo Fisher
Gilson
Merck Millipore
Elga
Thermo Fisher
Among the
TOP 4Among the
TOP 4
Competitive Landscape
Merck Millipore
Pall
GE Whatman
Among the
TOP 3
Lab water systemsPipettesLab balances Consumables
#2
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Additional Differentiation Based on High-value Services and Consumables
Consumables& accessories
Labinstruments
Services
+
+
Qualification Maintenance Calibration
Maintenance Calibration Repairs
Installation Qualification Maintenance
Installation Qualification Maintenance
Pipettes
Filter unitsCartridgesPipette tips Pans | Filters
Balances Sterility testing systems
(w/pump)Lab water purification
systems
19
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New Product Launches in Lab Products & Services
Biohit Picus – Ergonomic electronic pipette
Three new arium® lab water systems and bagtanks
Secura® - Weighing in regulated environments
Vivaspin® 15 turbo–Solutions for sample concentration
20
Agenda
1
2
Business Overview
Seite 3
4
Bioprocess Solutions
Lab Products & Services
5
Current Key Projects
H1 2012 Results | Guidance 2012
6 Appendix
3
Page 22
Industrial Weighing Division – Sales Process under Way
1) 2011 figures, excluding extraordinary items
■ Sales revenue of ~ €100m; underlying EBITDA margin at ~ 12%1)
■ High product quality and robust gross margins
■ Relatively low market share in most geographies
■ Industrial Weighing reorganized as independent business unit as of 2011
■ Greater potential for development under new ownership
■ No urgency for sale; decision depending on terms
Tank & Hopper solutions Industrial Scales Checkweigher
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Sartorius 2020: Striving for Continued Profitable Growth
500
10.1
20101)20091) 20111)2008
Sales revenue in €m Underlying EBITA margin
750
2012E1)2)
250
15.3
9.3
13.0
~15.3
20201)0
1) Excluding extraordinary items 2) Based on 2012 guidance (excluding currency effects)
~€2bnSales Revenue
Increasing Margins
Ambition 2020 Key Initiatives & Targets
Key Market DriversRegional
USA: Enhance local presence; gain market share
China und Indien: Participate in strong market growth
Portfolio
Selective expansion of portfolio with complementary products through alliances and acquisitions
Efficiency
New global ERP system based on new business processes
Consolidation & expansion of production sites
23
Go-to-Market: Initiatives Implemented in the U.S. and in Preparation in Asia
Resource ramp-upCustomer segmentation and coverage
Organizational changes
Focus on high-potential customers
Increase customer-facing time
Stronger technical and back office support
Enhanced sales support tools
Page 324
Page 25
Key Investment Projects
Capex ratio in % of sales revenue
0
2
6
4
8
4.0
7.1
3.7
~8.0
2012e201120102009
■ Three main construction projects in Goettingen (GER), Guxhagen (GER) and Yauco (PR) to expand, optimize and modernize our global production infrastructure
■ New, group-spanning SAP-system
■ All projects within time and cost schedule
■ Investments at a high level in 2012
25
Agenda
1
2
Business Overview
Seite 3
4
Bioprocess Solutions
Lab Products & Services
5
Current Key Projects
H1 2012 Results | Guidance 2012
6 Appendix
3
Page 27
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
28
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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
29
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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)
30
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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
31
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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 instruments32
Page 33
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
33
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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 201234
Agenda
1
2
Business Overview
Seite 3
4
Bioprocess Solutions
Lab Products & Services
5
Current Key Projects
H1 2012 Results | Guidance 2012
6 Appendix
3
Page 36
Organization and Shareholding Structure
Prf. share: 9,36 mn outstanding: ~8,52 mn
Ord. share: 9,36 mnoutstanding: ~8,53 mn
Bio-Rad Laboratories Inc.
Treasury shares
Family ownedAdm. by executor
Free Float50
7
49
30
91
9
Ord. in %
1) As of June 2012
Shares ~17,03 mn.1), outstanding ~15,34 mn.1)
Voting rights ~28,86 mn.1), outstanding ~26,96 mn.1)
Treasury shares
67
23
10in %
Prf. in %
Simplified, schematic diagram
Free Float (26% outstanding)Sartorius AG (74% outstanding)
100%74%Sartorius AG
Sartorius Stedim Biotech S.A. Sartorius Subsidiaries
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New Division Setup Implemented
Schematic diagram
Bioprocess Biolab Industrial Weighing
Lab Instruments
MechatronicsBiotechnology
Bioprocess Solutions Industrial Weighing
Previous Divisions
New DivisionsJan. 2012 Biohit LH
Lab Products & Services
37
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Global Biologics Market1)
Page 38
Geographic Focus - Strong Growth Opportunities in the U.S. & Asia
China & India Biologics Market2)
1
0
China
India
2017e2013e2012e2011e2010e2009e200820072006200520042003
CAGR 2008-17: 23%
CAGR 2008-17: 17%5
€bn
4
3
2
Key Characteristics of Biomanufacturing Market
Sound market growth Strongly regulated environment Quality and reliability represent key success factors Stable supplier landscape
Key Biomanufacturing Market Drivers
Increasing production volumes Capacity built-up especially in Asia Increasing yields | lower batch sizes Technological shift towards single-use
1) Evaluate Pharma, IMS 2) BCG, Sartorius
0
40
80
120
160
200
2003 2004 2005 2006 2007 2008 2009 2010 2015
CAGR 2011-15: 6%-9%
€bn
ROW
USA
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Biohit Liquid Handling – Sales by Category and by Region
Page 39
America
Mechanical pipettes
Pipette consumables
APAC
Electronic pipettes
Service
Europe
ROW
■ Significant growth potential in all product categories
■ Global market of ~€250m plus ~€500m for tips; expected growth of approx. 5%+
■ Established sales organizations in Russia, Germany, France, UK, USA, Japan, China and India
■ High overlap of customer base
~€38m ~€38m
Sales split based on 2010 data
29 %
39
19 %
21 %
32 %14 %
19 %
52 % 16 %
Page 40
Fact Sheet “New Segment Reporting” with 2011 Figures Available
3-Month 2011 6-Month 2011 9-Month 2011 Full Year 2011
Bioprocess SolutionsOrder intake 110.3 217.0 313.9 432.0Sales revenue 94.2 195.8 302.8 410.2Underlying EBITDA1) 19.1 41.6 65.0 87.7Underlying EBITDA margin in %1) 20.3 21.2 21.5 21.4Underlying EBITA1) 15.4 33.4 53.0 71.6Underlying EBITA margin in %1) 16.4 17.0 17.5 17.5
Lab Products & ServicesOrder intake 57.6 108.3 160.1 216.0Sales revenue 55.4 110.6 165.2 222.0Underlying EBITDA1) 8.3 18.4 27.5 37.0Underlying EBITDA margin in %1) 14.9 16.6 16.6 16.7Underlying EBITA1) 6.8 15.2 22.8 30.7Underlying EBITA margin in %1) 12.3 13.7 13.8 13.8
Industrial WeighingOrder intake 25.6 51.4 75.6 101.4Sales revenue 22.6 47.3 73.4 100.9Underlying EBITDA1) 1.1 3.5 7.3 11.9Underlying EBITDA margin in %1) 4.7 7.5 9.9 11.8Underlying EBITA1) 0.6 2.5 5.8 9.9Underlying EBITA margin in %1) 2.5 5.4 7.9 9.8
1) Excluding extraordinary items40
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Proven Track Record with Alliances and Acquisitions
Alliances & acquisitions support the strategy of profitable growth
Significant extension of technology portfolio and product offerings
Substantial extension of worldwide footprint
TC TechAseptic Technologies
Metroglas
ATMI Life Sciences
LevTechToha Plast
Stedim Biosystems
SAFC BiosciencesRaumedic
Südpack Medica
2012Acquisitions | Alliances
Vivascience
2000B. Braun Biotech International
Omnimark
Wave Biotech
Bayer Technology Services
Dylog
NIR Online
TEWS Elektronik
Schmidt + Haentsch
Biohit LH
Corning
c-LEctra
PBI Dansensor
Refine Technology
G-Con
Bosch Packaging Techn.
41
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Financial Calendar
■ September 24, 2012Berenberg Bank & Goldman Sachs Inaugural German Corporate Conference, Munich
■ October 29, 2012 Publication of nine-month figures
■ November 12-13, 2012German Equity Forum, Frankfurt|Main
■ January 22, 2013Cheuvreux Corporate Conference, Frankfurt|Main
■ January 2013 Publication of preliminary figures for fiscal 2012
■ April 18, 2013 Annual Shareholders' Meeting, Goettingen
42
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Sartorius Group Executive Committee
Oscar-W. Reif
* Member of the Executive Board of Sartorius AG
Reinhard Vogt* Jörg Pfirrmann* Joachim Kreuzburg* Chairman
Corporate Strategy, Legal, Compliance, Communications
Dominique Baly Volker Niebel
Finance, Information Technologies, Human Resources
Marketing, Sales, Services, Business Development
Bioprocess Solutions
Research andDevelopment
Marketing, Sales, Services, Business Development
Lab Products & Services
Procurement, Production,Supply Chain Management
Oscar-Werner Reif
43
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Contacts
Petra Kirchhoff
Vice President Corporate Communications & IR
Phone: +49.551.308.1686E-mail: [email protected]
Andreas Theisen
DirectorInvestor Relations
Phone: +49.551.308.1668E-mail: [email protected]
Sartorius Corporate Administration GmbHWeender Landstrasse 94-10837075 Goettingen, Germanywww.sartorius.com
44