Full Press Release Details
Lisa Miles x Investor Relations, Senior Vice President Welcome Capital
Markets Day - September 27, 2023
Safe Harbor Statement Forward-Looking Statements This presentation
contains certain forward-looking statements w ithin the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Stevanato Group S.p.A. ("we", "our", "us", "Stevanato
Group" or the "Company"). These forward-looking statements include, or may include, words such as increasing, sets," expanding, drive, build, driving, growth, strong, sustainable, expected, future, potential, can provide,
positioned, ongoing, poised, projected, well positioned," "should," "promising," "expect," "expand," "accelerate," favorable, increasingly, are seeing, creates, targeting,
reiterating, growing, and other similar terminology. Forw ard-looking statements contained in this presentation include, but are not limited to, statements about: our future financial performance, including our revenue, operating expenses and our
ability to maintain profitability and operational and commercial capabilities; our expectations regarding the development of our industry and the competitive environment in w hich we operate; the expansion of our plants and our expectations to
increase production capacity; the global supply chain and our committed orders; the continued global response to COVID-19 and our role in it; our geographical and industrial footprint; and our goals, strategies and investment plans. These statements
are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Stevanato Group's actual results, performance or achievements to be materially different from
its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, inflation, potential negative developments in the COVID-19 pandemic, the impact of the
conflict between Russia and Ukraine, supply chain challenges and other negative developments in Stevanato Group's business or unfavorable legislative or regulatory developments. The follow ing are some of the factors that could cause our
actual results to differ materially from those expressed in or underlying our forward-looking statements: (i) our product offerings are highly complex, and, if our products do not satisfy applicable quality criteria, specifications and performance
standards, we could experience lost sales, delayed or reduced market acceptance of our products, increased costs and damage to our reputation; (ii) we must develop new products and enhance existing products, adapt to significant technological and
innovative changes and respond to introductions of new products by competitors to remain competitive; (iii) our backlog might not accurately predict our future revenue, and we might not realize all or any part of the anticipated revenue reflected in
our backlog; (iv) if we fail to maintain and enhance our brand and reputation, our business, results of operations and prospects may be materially and adversely affected; (v) we are highly dependent on our management and employees. Competition for
our employees is intense, and we may not be able to attract and retain the highly skilled employees that we need to support our business and our intended future growth; (vi) our business, financial condition and results of operations depend upon
maintaining our relationships w ith suppliers and service providers; (vii) our business, financial condition and results of operations depend upon the availability and price of high-quality materials and energy supply and our ability to contain
production costs; (viii) the current conflict between Russia and Ukraine and the financial and economic sanctions imposed by the European Union, the U.S., the United Kingdom and other countries and organizations against officials, individuals,
regions, and industries in Russia and Belarus may negatively impact our ability to source gas at commercially reasonable terms or at all and could have a material adverse effect on our operations; (ix) significant interruptions in our operations
could harm our business, financial condition and results of operations; (x) as a consequence of the COVID-19 pandemic, sales of syringes and vials to and for vaccination programs globally increased resulting in a revenue growth acceleration. The
demand for such products may shrink, if the need for COVID-19 related solutions declines; (xi) our manufacturing facilities are subject to operating hazards which may lead to production curtailments or shutdowns and have an adverse effect on our
business, results of operations, financial condition or cash flows; (xii) we may face significant competition in implementing our strategies for revenue growth in light of actions taken by our competitors; (xiii) our global operations are subject to
international market risks that may have a material effect on our liquidity, financial condition, results of operations and cash flows; (xiv) we are required to comply w ith a w ide variety of laws and regulations and are subject to regulation by
various federal, state and foreign agencies; (xv) if relations between China and the United States deteriorate, our business in the United States and China could be materially and adversely affected; and (xvi) Cyber security risks and the failure to
maintain the confidentiality, integrity and availability of our computer hardware, software and internet applications and related tools and functions, could result in damage to our reputation, data integrity and/or subject us to costs, fines or
lawsuits under data privacy or other laws or contractual requirements. This list is not exhaustive. We caution you therefore against relying on these forward-looking statements and we qualify all of our forward-looking statements by these cautionary
statements. These forward-looking statements speak only as at their dates. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made
or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of these factors. Further, the Company cannot assess the impact of each such factor on our business or the extent to w
hich any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statements. For a description of certain additional factors that could cause the Company's future
results to differ from those expressed in any such forward-looking statements, refer to the risk factors discussed in our most recent Annual Report on Form 20-F, filed w ith the U.S. Securities and Exchange Commission. Non-GAAP Financial Information
This presentation contains non-GAAP measures. Please refer to the tables included in this presentation for a reconciliation of non-GAAP measures. Management monitors and evaluates our operating and financial performance using several non-GAAP
financial measures, including Constant Currency Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Net Profit, Adjusted Diluted EPS, Capital Employed, Net Cash, Free Cash
Flow and CAPEX. We believe that these non-GAAP financial measures provide useful and relevant information regarding our performance and improve our ability to assess our financial condition. While similar measures are widely used in the industry in
which we operate, the financial measures we use may not be comparable to other similarly titled measures used by other companies, nor are they intended to be substitutes for measures of financial performance or financial position as prepared in
accordance with IFRS. Capital Markets Day - September 27, 2023 3
Today's Agenda 11:00 - 11:05 Welcome Lisa Miles, SVP Investor
Relations 11:05 - 11:15 Paving the Way for the Future Franco Stevanato, Executive Chairman 11:15 - 11:35 Business and Corporate Overview Franco Moro, Chief Executive Officer Mauro Stocchi, Chief Business Officer 11:35 - 12:10
Industry and Market Outlook Riccardo Marcon, Sen. Director Strategic Marketing 12:10 - 12:25 Customer Case Study Sebastien Lebreton, Head of Key Accounts 12:25 - 12:45 Q&A 12:45 - 1:00 Break/Pick up Box Lunch Paolo Patri, Chief
Technology Officer 1:00 - 1:30 R&D and Innovation Odra Pinato, Head of EMEA TEC Analytics 1:30 - 1:40 Q&A 1:40 - 2:00 Financial Update Marco Dal Lago, Chief Financial Officer 2:00 - 2:10 Q&A Franco Moro, Chief
Executive Officer 2:10 - 2:25 Closing Remarks Franco Stevanato, Executive Chairman Drug Containment Solutions breakout session (offline) Drug Delivery Systems breakout session (offline) Fabio Bertacchini, Sen. Director of Product, Proposal
Steven Kaufman, VP Drug Delivery Systems and Technical Account Management 2:30 - 3:10 Riccardo Butta, President of Americas Mauro Stocchi, Chief Business Officer Riccardo Marcon, Sen. Director Strategic Marketing Odra Pinato, Head of EMEA TEC
Analytics Capital Markets Day - September 27, 2023
Franco Stevanato x Executive Chairman Paving the Way for the Future
Capital Markets Day - September 27, 2023
Track Record of Excellence Sets the Stage for Sustainable Growth
Strong business fundamentals with 70-year history Double-digit of delivering against objectives revenue growth Unique value proposition with differentiated Increasing mix of product set provides competitive advantage High Value Solutions
Secular tailwinds in high growth end markets (HVS) Demand-driven capacity expansion to support Expanding sustainable organic growth margins Ideally positioned to capitalize on opportunities, drive long-term organic growth and build
shareholder value Capital Markets Day - September 27, 2023 6
Established Leadership Position in Core Markets Leading Provider of
Mission-Critical Containment, Delivery and Diagnostic Solutions for the Pharmaceutical, Biotechnology and Life Sciences Industries Market Leader Biopharmaceutical & Diagnostics Engineering #1 #1 #2 #1 #2 Ready-to-Use Vials Pen Cartridges
Pre-Filled Syringes Glass Converting Visual Inspection Market Leader Global Partner of Choice 1 2 700+ Customers 41 of top 50 Pharma 15 of top 20 Biotech 1 2 Top 50 pharma by 2022 revenue - Pharmacircle; NASDAQ Biotechnology Index Capital
Markets Day - September 27, 2023 7
Seven Decades of Delivering Innovation and Value Glass forming Pharma
specialization Integrated systems and technologies across the value chain 1971 1993-2005 2007 2008 2008-2012 2016 2017-2019 2020 2021 2022 1949 SG EZ-fill SG Alba STVN IPO Stevanato patented launch founded - New plant: Brazil New plants:
New plants: New plants: Italy & Slovakia China & Mexico U.S. & Italy - Plant expansion: Italy - Plastic injection molding Glass Visual Analytical Services converting inspection (U.S. & EMEA TEC)* - Assembly & packaging 1
Providing Analytical Services since 2016 with SG Lab. Capital Markets Day - September 27, 2023 8
Global Footprint with Investments Underway to Fuel Growth Offering
Supply Security with a Single Quality Standard DENMARK - Brabrand U.S. - Silkeborg - Boston (MA) GERMANY - Ontario (CA) SLOVAKIA - Bad Oeynhausen - Fishers (IN) JAPAN - Bratislava - Newtown (PA) - Nagoya ITALY MEXICO CHINA - Piombino Dese (HQ) -
Monterrey - Zhangjiagang - Latina - Bologna Commercial DCS and DDS BRAZIL - Milan Engineering - Sete Lagoas Analytical Services Office Production plant 16 Sites 3 Sites R&D investments underway in 9 countries for a global reach with investments
underway Capital Markets Day - September 27, 2023 9
Strong Secular Tailwinds Driving Customer Demand Expanded Healthcare
Increasing Populations & Growth in Biologics & Access in Developing Aging Demographics Pharmaceutical Innovation Countries Outsourcing Non-Core Self-Administration Expansion of Vaccination Capabilities of Medicines Programs (BioPharma &
IVD) Capital Markets Day - September 27, 2023 10
with a Clear Ambition to Further Fuel Growth Global partner of
choice to biopharma customers, positioned to meet increasing demand for end-to-end solutions from drug development through life-cycle management Capital Markets Day - September 27, 2023 11
Franco Moro x Chief Executive Officer Business and Corporate Overview
Capital Markets Day - September 27, 2023
Business and Corporate Overview Agenda for the session Business
Overview Update to Strategic & Operational Priorities Injectables Market Trends Capital Markets Day - September 27, 2023
Mission Critical Role in the Pharmaceutical Value Chain Supporting
Customers From Drug Development through Life-Cycle Management DRUG SUBSTANCE DRUG PRODUCT API Finished Drug Manufacturing Product Formulation Device & Container Device & Container Drug concept, design & testing manufacturing Fill &
Automated Marketing & Packaging & Discovery Finish Visual Distribution Assembly Line Machinery and Equipment Inspection development and manufacturing Across the Full Drug Development Cycle: from Early Development through Delivery and
Life-Cycle Management Pre-Clinical Clinical: Phase I to Phase III Commercial Post-Marketing/Phase IV & Life-Cycle Management Capital Markets Day - September 27, 2023 14
Single Value Proposition Delivered Through Two Segments Stevanato
Group's Offering Biopharmaceutical & Diagnostic Solutions Pharmaceutical & IVD Engineering 2022 Revenue: 800 M (81%) 2022 Revenue: 184 M (19%) Drug Containment Solutions (DCS) Drug In-Vitro Delivery Ready-To-Use
EZ-fill & Bulk Diagnostics Systems Visual Glass Packaging & Assembly (IVD) Pre-filled (DDS) Inspection Converting Serialization Vials Cartridges Market Syringes Leader Analytical Services Capital Markets Day - September 27, 2023
Leveraging Engineering to Power SG Product & Services Portfolio
Benefits to Customer Benefits to Stevanato CUSTOMER Higher quality containment Glass Optimizes industrial setup: higher solutions yield and greater flexibility Converting Shorter lead-times BioPharma Easy single
supplier management & Diagnostic Combined expertise to drive Assembly, Solutions Optimizes processing parameters continued product innovation Packaging which streamlines scale-up, lowers Higher commercial visibility on
risk and supports future expansion and Visual client manufacturing lines and Inspection Supports custom & tailored investments solutions Upside for Product Offerings (DCS & DDS) Upside for Services Offerings Capital Markets Day
- September 27, 2023 16
Unique Integrated Offering Delivers High Value to Customers Key
Differentiator and Competitive Advantage Merck-Serono Customer Case Study 2 Products Developed custom testing protocols 1 2 Provided high-quality containment solution: SG NEXA 3 Developed state-of-the-art automated
assembly equipment to manufacture three 3 different pen injector configurations 3 1 ...and since, providing SG's integrated offering Services Processes More info: https://www.ondrugdelivery.com/meeting-quality-demands-
through-integrated-products-and-services/ Capital Markets Day - September 27, 2023 17
Near-Term Strategic and Operational Priorities to Capitalize on Strong
Secular Tailwinds Global HVS R&D Multi-Year Expansion Growth Innovation Pipeline Capital Markets Day - September 27, 2023 18
Global HVS R&D Multi-Year Expansion Growth Innovation Pipeline
Maximizing Industrial Footprint to Meet Global Demand for High-Value Solutions Validation Commercial activities production 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fishers, IN Piombino Dese Zhangjiagang Latina Validation activities: Q4
2023 Commercial production Commercial production launched exp. in H1 2024 RENDERING RENDERING Commercial production China expansion exp. in Q4 2023 project paused Capital Markets Day - September 27, 2023 19
Global HVS R&D Multi-Year Expansion Growth Innovation Pipeline
High-Value Solutions: High-Performance, Best-in-Class Technologies Key Value for Customers HVS Revenue Share % of Total Revenues (rounded) Reduced Superior 32% to Total Cost of Quality & 34% 30% Ownership (TCO) Performance 25% 22% 17% Faster
Reduced Speed to Market Supply Chain Risk 2019 2020 2021 2022 2023 Guidance Capital Markets Day - September 27, 2023 20
Global Drug Pipeline Dominated by Injectables Injectable Formats are
Generally the Most Prevalent Patient Delivery for Biologics Global pipeline of drugs in development 1 at record levels - 21,292 Biologics (requiring high- performing packaging and delivery solutions) 1 61% of those in the pipeline are 44% of drug
pipeline are injectables In 2022, 50% of FDA 2 approvals were injectables 1 2 Pharmaprojects 2023 | Pharma R&D Annual Review 2023 ; www.fda.gov Capital Markets Day - September 27, 2023 21
Operating in a Market With High Barriers to Entry Technological and
scientific know-how Risk-averse industry High barriers Increasingly strict regulatory & quality standards to entry High switching costs Capital intensive Capital Markets Day - September 27, 2023 22
Setting the Stage for Sustainable Long-Term Growth Mission