Full Press Release Details
Fourth Quarter and Year End 2021
Financial Results March 8, 2021 Exhibit 99.1
Safe-Harbor Statement Forward-Looking
Statements This presentation contains certain forward-looking statements which include, or may include, words such as "future "expect", "expected", "progress", "intended", "will", "planned", "on track", "targeted", "estimate", "estimating",
"anticipate", "anticipated", "may", "consider", "believe" and other similar terminology. Forward-looking statements contained in this prospectus include, but are not limited to, statements about: our future financial performance,
including our revenue, capital expenditures, adjusted diluted EPS, adjusted EBITDA and our ability to maintain profitability and operational and commercial capabilities; our expectations regarding the development of our industry and the competitive
environment in which we operate; customer demand; and our goals, strategies and investments. The following 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 with 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) significant interruptions in our operations could harm our
business, financial condition and results of operations; (ix) 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; and (x) our business may be harmed if our customers discontinue or spend less on research, development, production or other scientific endeavors; (xi) we may face significant competition in implementing our
strategies for revenue growth in light of actions taken by our competitors. This list is not exhaustive. 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 which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statements. This
press release also contains certain estimates regarding the Company's future prospects and performance, including, but not limited to, future revenues and earnings per share, capital deployment. All such statements and projections are based upon
current expectations of the Company and involve a number of business risks and uncertainties. The Company disclaimers any current intention to update such guidance, except as required by law. 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, see Item 3D entitled "Risk Factors" in the Company's Annual Report on Form 20-F for the fiscal year ended December 31,
2021, filed with 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 Q4 and year end 2021 Earnings Press Release 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, CAPEX, Adjusted Diluted EPS, Net Debt, and Free Cash Flow. 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. Fourth Quarter and Full Year 2021 Financial Results
Franco Stevanato Executive Board
Chairman Stevanato Group Fourth Quarter & Full Year 2021 Earnings Call Speakers Fourth Quarter and Full Year 2021 Financial Results Franco Moro CEO Marco Dal Lago CFO Lisa Miles SVP IR
Fiscal 2021 A Landmark Year for
Stevanato Group with Successful IPO Fourth Quarter and Full Year 2021 Financial Results in Millions FY 2021 FY 2020 FY 2019 Revenue 844 662 537 Gross profit 265 194 138 Gross profit margin 31.4% 29.3% 25.7% Operating profit 162 103 62
Operating profit margin 19.2% 15.6% 11.6% Net profit 134 79 39 Net profit margin 15.9% 11.9% 7.2% Adjusted EBITDA* 218 160 108 Adjusted EBITDA margin* 25.9% 24.2% 20.2% Delivered double-digit revenue growth, margin expansion and increased mix of
high value solutions Met or exceeded our key performance indicators in FY21 Exited 2021 with a solid backlog, new order in-take and a robust pipeline of new opportunities More than 400M in cash, flexible balance sheet and ample liquidity to
invest in future growth Investments in growth platforms and capacity expansion to drive sustainable, accretive growth Demonstrated three-year track record of advancing our strategic priorities to capitalize on customer demand THREE-YEAR TRACK RECORD
REINFORCES FUNDAMENTALS Amid favorable macro trends, our integrated capabilities resonate with customers as we aim to drive double-digit revenue growth, increase our mix of high value solutions, expand margins and deliver long-term shareholder
value. *Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Please refer to slides 19-26 for a reconciliation of non-GAAP measures
Full Year 2021 Financial and
Operational Results Highlights Strong sales, and continued progress on investments, innovation, and capacity expansion sets the foundation for durable organic growth New order intake and backlog are important indicators of our future growth
prospects and ongoing favorable customer demand trends as new treatments come to market to tackle chronic disease and advance patient care *Adjusted DEPS, Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Please refer to slides 19-26
for a reconciliation of non-GAAP measures 2021 KEY PERFORMANCE INDICATORS 843.9M 2021 Revenue 27.5% YoY Revenue Growth 218.3M 2021 Adj. EBITDA* 36.3% YoY Adj. EBITDA Growth 25.9% 2021 Adj. EBITDA Margin* 0.48 2021 Adjusted
Diluted EPS* ~ 278.3M Q4 New Order Intake ~ 880M Backlog 25% FY 2021 Revenue from HVS Fourth Quarter and Full Year 2021 Financial Results
High Value Solutions Growth (HVS)
Expect trend to continue as customers choose ready-to-use platforms because they reduce customers' total cost of ownership, get treatments to market faster and increase quality and flexibility Fourth Quarter and Full Year 2021 Financial
Results REVENUE SHARE FROM "HIGH-VALUE" SOLUTIONS (HVS) 2019 ~17% 2020 ~22% ~10% 2016 2021 ~25% Rising demand for syringes in 2021 vs 2020. Increase driven by our HVS, ready-to-use syringe platforms where orders doubled year-over-year.
This includes Nexa and Alba that are ideally suited for biologics and high-sensitive drugs like monoclonal Antibodies, mRNA vaccines, and recombinant proteins because of their advanced technology and superior performance. We see this
trend continuing into 2022 Highlights: Making progress on integrated capabilities in proprietary drug delivery device space with pen injectors, auto injectors and wearable pods Announced the expansion of agreement with Haselmeier in January 2022 for
proprietary Alina Pen Injectors granting exclusivity to support a broader range of therapeutic areas
BARDA will invest up to approximately
$95 million for Stevanato to increase planned manufacturing capacity in Indiana for both standard and EZ-fill vials Intended to help strengthen U.S. government's domestic capabilities for national defense readiness and preparedness
programs for current and future public health emergencies Will help build and rapidly scale capacity in Indiana to help fortify the U.S. government's domestic pharmaceutical supply chain BARDA Agreement Fourth Quarter and Full Year 2021
Financial Results First agreement with the U.S. government's Biomedical Advanced Research and Development Authority (BARDA), part of the U.S. Department of Health and Human Services in partnership with the U.S. Department of Defense
Facility in Indiana remains on track.
Construction to continue into 2023, followed by startup and validation - with revenue generation by late 2023-early 2024 Pace of demand increased since last year. In response, moving forward with incremental investments in Italy to further
shore up capacity until the U.S. and China facilities become operational We have the necessary flexibility through our modular approach to incrementally add/modify capacity to match customers evolving needs Capital investments designed to yield
sustainable, organic growth as new treatments come to market that require high-quality, high-performance containment solutions further up the value chain Our integrated capabilities, coupled with our high value solutions, are important elements to
create and drive shareholder value FY 2022 Industrial Plan Updates Industrial Plan Progress Fourth Quarter and Full Year 2021 Financial Results Piombino Dese, Italy Fishers, IN
Actively Managing Complexities Pandemic
presenting challenges to all businesses Worked hard to effectively manage in 2021 Keeping sharp focus on inventory management, manufacturing, and on-time delivery to customers Capturing cost increases and raising prices accordingly Omicron variant -
Experienced higher rate of absenteeism in January in some European facilities, but returned to normalized levels of staffing and productivity by mid to late February Closely managing inflationary costs and supply chain with high degree of
discipline. Expected to continue throughout 2022 Inflation & Supply Chain Update Fourth Quarter and Full Year 2021 Financial Results New graphics
Adding incremental capacity in Italy
in response to rising demand as customers move up the value chain Advancing our expansion plans in the U.S. and China, as we diversify our industrial footprint and enhance our proximity to customers Continuing our investments in R&D to
accelerate our market-leading position and increase the pipeline of our proprietary solutions Capacity Geographic Expansion R&D 2022 Strategic Operational Priorities Fourth Quarter and Full Year 2021 Financial Results Graphics to improve
Building a multi-year pipeline of opportunities heavily weighted in the biologics market where we expect to see a growing demand for our high-performance products Pipeline
Fiscal 2021: Double Digit Revenue
Growth Fourth Quarter and Full Year 2021 Financial Results Q4 2021 better than expected driven by Engineering Segment due to customers' ongoing capital deployment to satisfy demand FY 2021 revenue increase driven by growth in both segments
232.6 206.7 In Q4 2021, Covid represented ~14.3% of revenue Q4 2020 included a 15M benefit (BDS Segment) related to timing of revenue with no impact on FY 2020 revenue 843.9 662.0 In FY 2021, Covid represented
~14.7% of revenue In FY 2021, excluding Covid, revenue grew ~15.2%
High-Value Solutions Snapshot HVS Q4
YOY GROWTH (IN MILLIONS) +62.9% Fourth Quarter and Full Year 2021 Financial Results +42% Our long-term trajectory remains unchanged with a targeted mix of mid-thirty percent by 2026, contributing to the expansion of EBITDA margins over the
long-term HVS FY YOY GROWTH (IN MILLIONS) Represents ~28.5% of consolidated revenue Represents ~24.6% of consolidated revenue
Q4 2021 & FY 2021 Margin and EPS
Snapshot overall_0_132573506445777536 columns_7_132584762853721572 3_1_132573506445777536 6_1_132573506445777536 9_1_132573506445777536 12_1_132573506445777536 13_1_132573506445777536 14_1_132573506445777536 15_1_132573506445777536
18_1_132573506445777536 21_1_132573506445777536 Fourth Quarter and Full Year 2021 Financial Results ADJUSTED EBITDA* 25.3%* 25.9%* 10.3% Margin: ADJUSTED DILUTED EPS* 24.6% 14.7% GROSS PROFIT OPERATING PROFIT 28.3% 31.4% 18.7% 18.3% 18.2%
Three-months ended December 31, Twelve months ended December 31, 2021 2020 %change 2021 2020 % change Revenues 233.0 206.7 13% Revenues 843.9 662.0 27% Gross profit 73.0 58.6 25% Gross profit 265.4
194.2 37% Gross margin 31.4% 28.3% Gross margin 31.4% 29.3% Operating profit 43.5 37.9 15% Operating profit 162.20 103.10 57% Operating profit margin 18.7% 18.3% Operating profit margin 19.2% 15.6%
Net profit 44.6 34.0 31% Net profit 134.3 78.6 71% Adjusted net profit 33.0 34.1 -3% Adjusted net profit 120.5 81.0 49% Diluted EPS 0.17 0.14 21% Diluted EPS 0.53
0.33 61% Adjusted diluted EPS 0.12 0.14 -14% Adjusted diluted EPS 0.48 0.34 41% Adj. EBITDA 58.6 53.1 10% Adj. EBITDA 218.3 160.2 36% Adj. EBITDA margin 25.3% 25.9% Adj. EBITDA
margin 25.9% 24.2% *Adjusted DEPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. Please refer to slides 19-26 for a reconciliation of non-GAAP measures Margin: 36.7% 57.3% GROSS PROFIT OPERATING PROFIT 29.3% 31.4%
ADJUSTED EBITDA* 25.9%* 24.2%* 36.3% ADJUSTED DILUTED EPS* 54.8% 15.6% 19.2%
Q4 & FY 2021 Segment Financial
Summary Segment Overview BIOPHARMACEUTICAL AND DIAGNOSTIC SEGMENT (BDS) Revenue increases for the quarter and the year driven by growth in core products and HVS. HVS accounted for 35.7% and 29.8% of revenue in Q4 2021 and FY 2021, respectively. Mix
shift led to expanded margins For the year, gross profit margin increased to 33.1% (+350 bps) and operating profit margin was 21.4% (+330 bps) ENGINEERING SEGMENT For the quarter and full year, revenue grew in all business lines For the full year
2021, gross profit margin was 19.3% and operating profit margin was 10.5% +23% BDS & ENGINEERING SEGMENT PERFORMANCE REVENUE in millions Fourth Quarter and Full Year 2021 Financial Results +9% +27% +54%
Strong Financial Position Fourth
Quarter and Full Year 2021 Financial Results YEAR ENDED DECEMBER 31, 2021 189.8M Net Financial Position 122.1M Capital Expenditures 133.3M Cash from Operations 25.1M Free Cash Flow* 411M Total Cash and Cash
Equivalents * Free Cash Flow is a non-GAAP measure. Please refer to slides 19-26 for a reconciliation of non-GAAP measures
CAPEX Crosswalk in millions
Capital Expenditures 2022 Fourth Quarter and Full Year 2021 Financial Results FY 2022E 35%-40% of revenue CAPEX ESTIMATE UPDATE CapEx in 2021 was ~ 122.1 million. This was lower than our initial expectations mostly due to timing and the
shifting of spend into 2022 We estimate that approximately 90 million of CapEx spend that was previously expected to occur 2021, is now included in our fiscal 2022 cap ex budgets Additional incremental expenditures are also anticipated as
capacity is added in Italy to meet rising demand Together with shift, and incremental capex, we estimate that CapEx in 2022 as a percent of revenue will likely range between 35% and 40% CAPITAL ALLOCATION PRIORITIES Ongoing capacity expansion to
satisfy market demand R&D to maintain competitive advantages and drive innovation May consider opportunistic M&A to broaden our offerings, technical know-how and international footprint
Establishing 2022 Guidance Based on
mid-point of revenue range, approximately 75% of forecasted revenue is in the form of backlog Expect Covid contributions in the mid-teens as percent of revenue Currently expect that revenue will be stronger in the 2H of 2022 versus the 1H of 2022,
aligning to our industrial plans as we bring on more capacity during the course of 2022 Full Year 2022 Guidance 935M - 945M Revenue 0.49 - 0.51 Adj. Diluted EPS* 248M - 253M Adj. EBITDA* ~264. 7M Weighted
Average Shares Outstanding *Adjusted DEPS and Adjusted EBITDA are non-GAAP measures. Please refer to slides 19-26 under the in this presentation for a Reconciliation of Non-GAAP measures Fourth Quarter and Full Year 2021 Financial Results
In Summary Fourth Quarter and Full
Year 2021 Financial Results Among the leaders in premium drug packaging and engineering, serving as a vital link to the safety and effective administration of our customers injectable treatments, diagnostic tests, and therapies. We have a relentless
focus on driving constant innovation in R&D, delivering high-quality products, offering scientific and technical support, and meeting market demands. Serve some of the fastest growing market segments and we are integrated into the drug
production and delivery supply chain, with favorable multi-year secular tailwinds including: Pharmaceutical innovation, Aging populations with chronic conditions, Growth in biologics and biosimilars, Acceleration and expansion of vaccination
programs, Self-administration of medicines, and Increasing quality standards and regulation. Above all, we believe that our strong reputation, coupled with these favorable macro trends and our high-quality suite of products positions us well to