Media releaseJune 15, 2021
Sulzer Capital Markets Day 2021
medmix – a global leader in high precision delivery devices
medmix is a global market leader in high-precision delivery devices in healthcare, consumer and industrial markets. It is well positioned to capture profitable growth opportunities in attractive niches driven by mega trends. medmix occupies leading positions:
- Dental: #1 in 2K mixing devices with a share of above 50%
- Drug delivery: #1 in fertility pen injectors with a share of around 50%
- Surgery: Among top three specialized delivery device providers
- Industry: #1 in two-phase hand-held devices with a 25% share
- Beauty: #1 in mascara brushes with a 20% share
More than half of medmix’ revenue is based on IP-protected products. medmix expects sales of around CHF 450m in the current year and an adjusted EBITDA margin1 of around 25%. It expects to capitalize on its product innovation and global presence to grow faster than its end markets. medmix expects to increase its revenue mix towards healthcare, from 40% today to more than 50% mid-term, to reach its mid-term EBITDA margin target of 30%.
Sulzer – a focused leader in industrial flow control products and services for water, energy, chemical and industrial infrastructure
Sulzer, after the medmix spin-off, will be a pure play flow control company combining a highly resilient portfolio, with aftermarket representing more than 50% of revenue, and attractive exposure to macro trends (Water, Bio-based). Sulzer occupies leading positions:
- Pumps: #2 in wastewater and energy, a top 3 player in many industrial segments
- Services: #1 in pump services, leading independent service provider for other rotating equipment such as turbines, compressors, electrical motors.
- Chemtech: #1 in separation and purification for chemicals, #2 in refining and an emerging leader in biopolymers and recycling technologies.
Sulzer has a clear path to value creation with four strategic priorities: 1) grow water and industrial applications in Pumps, 2) strengthen our Services advantage through digitalization and additive manufacturing, 3) defend our chemical leadership while boosting our renewable technology solutions in Chemtech, and 4) furthering our ESG focus as an enabler for strong, sustainable financial performance.
As part of the Capital Markets Day, Sulzer will detail its sustainability framework and targets for 2030 and 2050. ESG is deeply rooted in Sulzer’s purpose and value creation approach. The company is pursuing a comprehensive plan that combines measurability and accountability across its value chain of operations, customers, suppliers and society at large:
- Reduce our carbon footprint 30% by 2030 and become carbon neutral by 2050
- Enable a low carbon society through our unique expertise in areas such as plastic substitution, recycling or wastewater treatment
- Engage, include and protect our employees, and our communities
Updated financial framework
Sulzer updates its financial guidance for 2021. In total, the company expects orders to increase by 4-6%2 (previously 3-6%), sales to be up 8-10%2 (previously 5-7%) and an operational profitability in the range of 10.0%-10.5% (previously close to 10%).
Backed by a strong start into the year and lower restructuring expenses, Sulzer expects its net profit for the first half year 2021 to be significantly above the previous year’s period.
Sulzer, without medmix, expects 2021 orders to be up 2-3%2 and sales up 6-8%2. On the same scope, they were down 1.1% and 3.5%, respectively and FX adjusted, in 2020. The operational profitability is expected to be around 9%, above pre-pandemic level. Mid-term, the refocused group expects to grow sales at an average annual rate of 4-5% and to achieve an operational profitability in the range of 10-11%.
1 Corresponds to operational profitability (opEBITA margin) of around 19% in 2021 and above 20% in 2022.
2 adjusted for FX and including acquisitions already closed.
Sulzer Capital Markets Day 2021
Sulzer will hold its virtual Capital Markets Day 2021 today at 09:00 CEST.
Please note that the event will be all virtual and streamed live on: www.sulzer.com/cmd
Participants need to register with name and e-mail address at the start of the event. We therefore suggest to check-in at least 5-10 minutes before the actual start of the event.
Question can only be taken from participants registered for the Q&A sessions. For the Q&A session, please register here. For the questions, you may dial in towards the end of the presentations.
This document contains forward-looking statements including, but not limited to, projections of financial developments, market activity, future performance of products and solutions or planned transactions containing risks and uncertainties. These forward-looking statements are subject to change based on known or unknown risks and various other factors that could cause actual results, performance or events to differ materially from the statements made herein.
This announcement constitutes neither an offer to sell nor a solicitation to buy securities. This announcement shall also not be considered as an issue prospectus or similar notice in accordance with article 35 et seqq. FinSA and/or article 69 FinSA or as a listing prospectus in accordance with the Listing Rules of SIX Exchange Regulation AG regarding the listing of equity securities on SIX Swiss Exchange Ltd.
Any offer and listing of securities shall be made exclusively by and based on a securities prospectus to be published. Any investment decision regarding publicly offered securities shall only be made based on the securities prospectus. Any offering of securities mentioned herein will not be registered under the United States Securities Act of 1933, as amended (the “Act”), and such securities may not be offered or sold in the United States of America absent registration or an applicable exemption from registration requirements under the Act.
This announcement has been prepared on the basis that any offer of securities in any Member State of the European Economic Area (“EEA”) will be made pursuant to an exemption under Regulation (EU) 2017/1129 (as amended, the “Prospectus Regulation”) from the requirement to publish a prospectus for offers of securities. Accordingly any person making or intending to make any offer in the EEA of the securities which are referred to in this announcement may only do so in circumstances in which no obligation arises for the issuer or any of the initial purchasers of such securities to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation, in each case, in relation to such offer.
This announcement and any other documents and/or materials relating hereto is not being made, and such documents and/or materials have not been approved by an authorized person, for the purposes of section 21 of the Financial Services and Markets Act 2000 (the “FSMA”). Accordingly, this announcement is not being made and related documents and/or materials have not been distributed, and must not be passed on, to persons in the United Kingdom (“UK”) other than (i) persons falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act (Financial Promotion) Order 2005 (as amended, the “Order”), (ii) high net worth entities falling within Articles 49(2)(a) to (d) of the Order, (iii) persons falling within Article 43(2) of the Order, including existing members and creditors of Sulzer, or (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) may otherwise lawfully be communicated or caused to be communicated (all such persons described in (i) to (iv) above together being referred to as “Relevant Persons”). In the UK, any investment or investment activity to which this announcement or any related documents and/or materials relate is available only to Relevant Persons and will be engaged in only with Relevant Persons. Any person in the UK who is not a Relevant Person should not act or rely on this announcement or any related documents and/or materials or any of its or their contents.
This announcement has been prepared on the basis that any offer of securities in the UK will be made pursuant to an exemption under the Prospectus Regulation as it forms part of domestic law pursuant to the European Union (Withdrawal) Act 2018 (as amended) from the requirement to publish a prospectus for offers of securities. Accordingly any person making or intending to make any offer in the UK of the securities which are referred to in this announcement may only do so in circumstances in which no obligation arises for the issuer or any of the initial purchasers of such securities to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation, in each case, in relation to such offer.