Gerresheimer AG

The conference is now being recorded. Ladies and gentlemen, welcome to the conference call regarding the publication of Gerritsheimer Q3 results 2023. At the moment, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Now I will hand you over to Mr. Bernhard Wolf, Corporate Senior Director Investor Relations. Please go ahead.

Hello everybody. A warm welcome to all of you from the whole Gerritsheimer This morning, we published our Q3 figures, and we are now happy to guide you through the data set, add some insights, and answer your questions. With me today are our CEO, Dietmar Simpson, as well as our CFO, Dr. Bernd Metzner. As usual, we are presenting a set of slides together with the management's notes, following by a Q&A session. Please note this call is being webcast live and will be filed on our website as always. Before we start, I have to remind you that the presentations and discussions are conducted subject to the disclaimer. We will not rate this disclaimer, but propose taking it as read into the records for the purpose of this conference call. And now it's my pleasure to turn the call over to Dietmar Simpsons. Dietmar, please go ahead.

Yeah, thank you so much. And welcome, everybody. Thank you for joining us this morning. Bernd Metzner, our CFO, and I will now run you through the highlights of our third quarter in 2023. As always, we will then be happy to take your questions. Our strong business development as a result is what you see on this slide. We have successfully transformed Gerasamer into a system solution provider, and the market now recognizes our strength. We offer one of the broadest, if not the broadest portfolio of containment solutions and drug delivery systems on the market. We develop digital solutions for therapy support and traceability. We scale industrial production for customized solutions globally while meeting the highest international pharmaceutical quality standards. We have the competencies and innovative solutions to tackle any challenge to support our customers to bring any drug to and into the patient. This includes highly demanding large molecule formulations as well. We provide the right solutions to our customers at any stage of the drug lifecycle in all major global markets. That makes us the strategic partner of choice for the global pharma and biotech industry. Organic revenue growth was 5.5% in Q3. The underlying growth course is unchanged, and we will deliver double-digit revenue growth for the full fiscal year as put forth in our guidance. The adjusted EBITDR showed an organic growth of 16.4%, resulting in a notable major margin expansion year on year. This is the Q3 snapshot. of healthy growth in line with our strategy. Our bottom line grows stronger than the top line. The transformation and repositioning of the company towards higher value products pays off, resulting consequently in better margins. The adjusted earnings per share, too, grew by 4.4%. We hereby confirm our guidance for the full fiscal year 2023 as well as our midterm guidance. Our profitable growth momentum will continue. All growth projects are on track and being implemented according to plan. Our order book, as mentioned several times, which is at record high, also impressively shows the transformation of our company. We currently have the highest order intake in our corporate history, even outperforming the very strong years 2021 and 2022. In our last call, we told you that we are working on new orders for GLP-1 obesity drug in the upcoming months and that the capital increase will finance necessary capacity expansions. We have now secured new additional orders at attractive terms and conditions. Our customers trust us to be the right partner going forward and to deliver the capacities they need, and we will. We worked hard during the last few years to build the foundation for our success today and in the future, optimizing and strengthening the existing business while expanding into new growth markets. We completed our broad product portfolio with new innovative solutions. Today, we are continuously innovating for a better life. We are now able to harness global megatrends in the pharma and biotech market. Our GLP-1 business is a very good example of this. Second, customer centricity. We definitely broke down the silos. We leverage synergies in our divisions and foster innovations to find the best tailored solutions for our customers. Third, operational excellence. Good was not enough. We examined each single process and optimized it. We industrialize. We scale production globally. Today, we are setting standards in the industry in terms of quality, as well as processes and cost efficiency. And finally, of course, leadership. We now have a team in place with an outstanding growth mindset, fully committed to grow the business and increasing our margin. This foundation opened highly attractive growth opportunities with existing and, this is even more important, with new customers. Just a few years back, these new customers may have turned to one of our competitors because they did not know that we could provide the right product or because they did not trust us that we could come up with an innovative solution. This perception has completely changed. We have proven our innovative strength and the ability to deliver the key pharma players in the market. They know they can entrust us with their new developments as well as with their new and existing drugs already in the market. They know that we will solve all the complex challenges of industrial production for the primary packaging solution or also drug delivery systems, shortening their time to market and reducing the total cost of ownership for their product. The transformation to a system and solution provider And the change of perception now results in the strongest order intake in our corporate history. And this will fuel our profitable growth in the years to come. We are addressing the needs of our customers with dedicated products for key therapeutic areas. Anything from chronic and autoimmune disease, cell and gene therapy, vaccines and infectious diseases, ophthalmology, oncology, respiratory, and cardiovascular diseases to diabetes or and metabolism disorder. In all these therapeutic areas, we have the capabilities and solutions to be the full service provider for pharma and biotech companies of any size and at any stage of the drug life cycle. As this slide visualizes, the GLP-1 business for treating obesity is certainly relevant and important, but it's just one therapeutic area for which we provide customized solutions. Our broad systems and solutions provide services as a much wider range for therapeutic areas. The number for the market potential for the treatment of chronic obesity with GLP-1 drugs vary, but all have one message in common. The market is big and is permanently growing. One of the largest or lightest market estimates was $80 billion. Considering that the primary packaging and drug delivery system market would represent 2 to 4% of the overall market, we would be looking at a potential market of roughly 1.6 to 3.2 billion euro or dollars. Maybe even more. And we are a key player in this market. We already have contracts for syringe systems, pens, autoinjectors, and containers for solids with the leading GLP-1 players in place. We have now signed new additional contracts for syringes, pens, and autoinjectors. Based on these and other long-term contracts, we are expanding our production facilities and our global footprint. For example, Peachtree in the U.S. for fens and order injectors, Keretorau in Mexico, Skopje, North Macedonia, in the Czech Republic, and in Germany for syringes, pens, and order injectors. We have one another order for GLP-1 solid containers just recently. Our broad systems and solution portfolio opens unique growth opportunities presented by global megatrends. Whatever solution is needed to contain or administer the drug. This slide gives you an impression how well positioned we are with our products, systems, and solutions in key therapeutic areas, including highly sophisticated solutions for biologics. For example, we offer shatterproof vials and syringes made of cycloolefin polymer, COP vials, and syringes. COP vials and syringes are the right solution for cell and gene therapy or, for example, mRNA vaccines which need cold storage. We offer ready-to-fill syringes with countless closure and needle options. Silicon-free syringes, for example, for ophthalmic and other therapies. Other special syringe solutions for large molecule applications. Elytic glass vials for an entire range of therapeutic areas, meeting the highest quality and safety requirements while reducing the total cost of ownership. Custom-made inhalers for respiratory therapies. Our sense air pump platform for antibody-based cancer therapy or any other large molecule application. Wearable and patch pumps for high-volume applications for these treatments of, for example, Parkinson's, cardiovascular disorders, or other rare diseases. Pens and autoinjectors for chronic diseases like diabetes. This includes our own solutions like the Inveneo auto-injector, which helps our customers to significantly shorten their time to market. We are one of the key players in the market with syringes, auto-injectors, cartridges, and pens. And we are a key player in the obesity care market. The contracts already won are clearly approved of this. We have high-value solutions in all product categories in place. We have retrofill options for syringes, cartridges, and vials. Whatever challenge our customer has, safe containment or sensitive drugs, precise, safe, and convenient way of administration, highly efficient and cost-effective production for the primary packaging solution or drug deliveries devices, we solve it, and we The rollout of our Formula G strategy transformed Garrison. As a system and solution provider and partner of choice for the global pharma and biotech industry, we support our customers to improve the quality of life and health of millions of patients worldwide. We have clearly expanded our portfolio with high quality and highly innovative products and solutions. We have fostered operational excellence. We have put our customers first. These measures were the prerequisite for strengthening of the market position, for being able to size market opportunities, and not to forget to accelerate our profitable growth. And this profitable growth is sustainable. Because it does not depend on one single application or trend, there is significantly more to come. Thank you very much. And with this, I will hand over to our CFO, Bernd Metzner, for a deep dive into our figure spin fuel 3.