Siegfried (SFZN) CMD 2024 summary

Strategy update and future growth

• EVOLVE+ strategy focuses on scaling, expanding technology offerings—including cell & gene therapy—and operational excellence to drive growth and margin improvement.

• Targeting both organic growth and value-accretive M&A, with recent acquisitions in biotech, early-phase development, and cell & gene therapy to broaden capabilities.

• Emphasis on end-to-end service from early development to commercialization, especially for small and mid-cap pharma, to capture innovation-driven market share.

• Investments in advanced technologies like spray drying, micronization, aseptic fill-finish, and new facilities in Barcelona, Evionnaz, Minden, and Schlieren.

• DINAMIQS platform for cell & gene therapy is being built out, with a new GMP facility operational by late 2025.

Financial performance and guidance

• Net sales grew at an 11.1% CAGR from 2019 to 2023, reaching CHF 1,272m, with core EBITDA up 18.1% CAGR.

• Operating cash flow increased at a 33.5% CAGR, supported by disciplined CapEx and working capital management.

• 2024 outlook: low single-digit sales growth in local currencies and core EBITDA margin at or above 2023 levels; midterm outlook for continued profitable growth above market.

• CapEx expected to normalize to historical levels after strong investments in 2021–23, with all major projects completed or near completion.

• Leverage reduced to 1.3x by H1 2024, providing up to CHF 600m debt capacity for further acquisitions.

Market positioning and customer focus

• Leading global CDMO with 13 sites in 7 countries, serving over 500 customers and offering diversified technology platforms.

• Two-thirds of revenue comes from small- and mid-sized pharma, with a strategic push to increase early-stage project capture and end-to-end contracts.

• Expansion into high-growth segments like cell & gene therapy and advanced injectables, with a focus on early-stage services.

• Diversification across clients, products, and technologies enhances resilience and reduces risk.

• Customer segmentation and tailored go-to-market strategies are being implemented to optimize portfolio and resource allocation.