Sartorius Shares

Global Stock Markets Reach Record Heights

Almost without exception, the world’s stock markets chalked up substantial price increases during the reporting year against a backdrop of good global economic data and the continuation of expansive fiscal policy on the part of the the most important central banks. New highs on the U.S. stock market drove the leading German stock index DAX to reach a record high in early November at 13,505 points, and end the year at 12,917 points – a plus of 12.5%. The German technology index TecDAX, to which the Sartorius preference shares also belong, bounced back from its 2016 decline to chart a significant gain of 39.6% in 2017, and the industry-specific index NASDAQ Biotechnology registered a plus of 21.1% following significantly above-average development the years before.

Sartorius Share Price Continues Positive Development

The prices of both classes of Sartorius AG shares developed positively during the reporting year, even if the above-average value growth of the years before was not achieved completely. The price of the preference shares rose year on year by 12.8% to €79.5, and ordinary shares gained in value as well. Shares ended trading on December 29, 2017, at €75.4 and thus 3.6% higher than their closing price the year before.

At the end of the reporting year, the position of the Sartorius preference share in the TecDAX was about the same as the year before. In terms of market capitalization, the preference share was ranked 8th at the end of 2017 compared with 7th the previous year. With respect to trading volume – that is, the volume traded on the Frankfurt Stock Exchange over the preceding twelve months – the company’s share certificates took 14th place (previous year: 12th).

Facts about the Shares

ISIN DE0007165607 (ordinary shares)
DE0007165631 (preference shares)
Designated sponsor Oddo Seydler Bank AG | M.M. Warburg & Co. (AG & Co.) KGaA
Market segment Prime Standard
Indexes TecDAX | CDAX | Prime All Share Index | Technology All Share Index | NISAX20
Stock exchanges Xetra | Frankfurt | Hanover | Duesseldorf | Munich | Berlin | Hamburg | Bremen | Stuttgart
Number of shares 74,880,000 no-par individual share certificates with a calculated par value of €1 per share
Of which 37,440,000 ordinary shares
37,440,000 preference shares
Of which shares outstanding 34,212,224 ordinary shares
34,176,068 preference shares

Trading Volume and Share Price Development

2017 2016 Change in %
Preference share in € (Xetra year-end closing price) 79.54 70.50 12.8
Ordinary share in € (Xetra year-end closing price) 75.42 72.80 3.6
Market capitalization in millions of €1) 5,298.7 4,900.1 8.1
Average daily trading volume of preference shares 82,434 72,605 13.5
Average daily trading volume of ordinary shares 1,605 2,631 –39.0
Trading volume of preference shares in millions of € 1,655.0 1,172.3 41.2
Trading volume of ordinary shares in millions of € 30.0 44.4 –32.4
Total trading volume in millions of € 1,685.0 1,216.7 38.5
TecDAX (Jahresschlusskurse XETRA) 2,529.0 1,811.7 39.6
DAX (Jahresschlusskurse XETRA) 12,917.6 11,481.1 12.5

1) Without treasury shares

Sources: Bloomberg, Deutsche Börse AG

Sartorius Shares1) in €

January 1, 2013 to December 31, 2017

1) Sartorius share prices from January 1, 2013, to June 13, 2016, adjusted for stock split

Sartorius Shares in Comparison to the DAX, TecDAX and NASDAQ Biotechnology Index

January 1, 2017, to December 31, 2017

Market Capitalization and Trading Volume

The market capitalization of the Sartorius ordinary and preference shares rose by around 8.1% in the reporting year and stood at €5.3 billion as of December 31, 2017, up from €4.9 billion in 2016.

The average number of preference shares traded daily on the Frankfurt Stock Exchange (Xetra and trading floor) increased substantially during the year under review from 72,605 to 82,434 shares. Trading volume in euros rose even more strongly in the reporting year, reaching €1.7 billion, up from €1.2 billion a year earlier.

Due to the low free float of Sartorius’ ordinary shares, they are traded only to a limited extent. Thus, the average number of ordinary shares traded daily was 1,605 compared with 2,631 the previous year. The corresponding trading volume was around €30million (previous year: €44million).

The 2016 figures of the average number of Sartorius shares traded daily were adjusted in accordance with the stock split.

Investor Relations

Sartorius investor relations activities follow the objective of making the current and future development of the company transparent for its stakeholders. To achieve this objective, Sartorius maintains an ongoing, open dialog with shareholders, potential investors and financial analysts.

Besides providing quarterly, first-half and annual reports, we inform the capital market and the interested public at quarterly teleconferences and in regularly published press releases about the current development of our business and other material events at the company. Moreover, our management team was available to capital market participants at our sites in Göttingen, Germany, and in Aubagne, France, and took part regularly in conferences and roadshows conducted in international financial market centers, such as London, Paris, Frankfurt am Main and New York. During the reporting year, our communication focused on the extension of our portfolio through acquisitions, the implementation of our Group and division strategies and general industry developments. In November 2017, Sartorius received the Investors’ Darling prize, which is awarded yearly by Manager Magazin in conjunction with the HHL Leipzig Graduate School of Management.

All information and publications about our company and its shares are available on our website at www.sartorius.com.

Analysts

The assessments and recommendations of financial analysts serve as an important foundation for the decisions of private and institutional investors when acquiring shares. During the reporting year, we maintained an ongoing dialog with a total of eighteen institutions.

Research Coverage

Date Institute Price target in € Recommendation
Feb. 1, 2018 Metzler 110.00 Buy
Feb. 1, 2018 ODDO BHF 81.00 Sell
Jan. 31, 2018 Deutsche Bank 90.00 Hold
Jan. 31, 2018 Janney 100.00 Hold
Jan. 31, 2018 Kepler Cheuvreux 78.00 Hold
Jan. 31, 2018 Mainfirst 110.00 Buy
Jan. 31, 2018 M.M. Warburg 90.00 Buy
Jan. 31, 2018 Equita 79.00 Hold
Jan. 31, 2017 Berenberg 85.00 Buy
Oct. 26, 2017 Hauck & Aufhaeuser 60.00 Sell
Oct. 26, 2017 HSBC 78.00 Hold
Oct. 25, 2017 UBS 85.00 Hold
Oct. 25, 2017 Nord LB 70.00 Sell
Oct. 18, 2017 Commerzbank 76.00 Hold
Oct. 17, 2017 DZ Bank 59.00 Sell
Oct. 17, 2017 LBBW 88.00 Buy
Aug. 10, 2017 AlphaValue 77.70 Sell
Feb. 1, 2017 EQUI.TS 68.00 Hold

Dividends Raised

The Sartorius Group strives to enable its shareholders to participate adequately in the company’s success and has continuously raised dividends over the past years. Our dividend policy is basically oriented toward distributing an approximately stable share of relevant net profit (see definition on page 35) to our shareholders.

The Supervisory Board and the Executive Board will submit a proposal to the Annual Shareholders’ Meeting on April 5, 2018, to pay dividends of €0.51 per preference share and €0,50 per ordinary share for fiscal 2017.

This would substantially increase the total profit distributed by 11% from €31.1million the previous year to €34.5million. The corresponding dividend payout ratio would be 24.0% relative to 23.5% a year earlier. Based on the 2017 year-end prices of the Sartorius preference and ordinary shares, this would result in a dividend yield of 0.7% for ordinary shares (previous year: 0.6%) and 0.6% for preference shares (previous year: 0.7%). Treasury shares held by the company are not entitled to dividend payments.

Shareholder Structure

After implementation of the stock split, Sartorius AG’s issued capital comprises 37,440,000million ordinary shares and the same number of preference shares, each with a calculated par value of €1 per share. A good 50% of the ordinary shares are held by the Sartorius families and are under the management of an executor. Approximately 5% are held directly by members of the Sartorius families, and approximately 9% are owned as treasury shares by the corporation itself. According to the most recent information available, the U.S. company Bio-Rad Laboratories Inc. holds around 34% of the ordinary shares. To our knowledge, the remaining approximately 2% of the ordinary shares are in free float.

Around 91% of the company's preference shares are in free float; roughly 9% are held as treasury shares by the corporation.

Key Figures for Sartorius Shares1)

2017 2016 2015 2014 2013
Ordinary shares2) in € Reporting date 75.42 72.80  78.50 24.50 21.25
High 89.41 87.50  78.50 25.89 22.62
Low 73.66 54.50  24.63 21.50 16.31
  
Preference shares2) in € Reporting date 79.54 70.50  60.11 25.31 21.63
High 93.73 79.85  60.19 26.11 22.5375
Low 64.35 50.54  24.75 19.10 17.18
   
Market capitalization3) in millions of € 5,298.7 4,900.1  4,740.1 1,698.3 1,461.8
Dividend per ordinary share4) in € 0.50 0.45  0.38 0.27 0.25
Dividend per preference share4) in € 0.51 0.46  0.38 0.27 0.26
Total dividends4) 5) in millions of € 34.5 31.1  25.8 18.2 17.2
Payout ratio4) 6) in % 24.0 23.5  24.0 24.7 26.6
Dividend yield per ordinary share7) in % 0.7 0.6  0.5 1.1 1.1
Dividend yield per preference share7) in % 0.6 0.7  0.6 1.1 1.1

1) Share prices and dividends for 2013 to 2015 adjusted for stock split; rounded values

2) Xetra daily closing price

3) Without treasury shares

4) For 2017, amounts suggested by the Supervisory Board and the Executive Board of Sartorius AG

5) Calculated on the basis of the number of shares entitled to dividends

6) Based on the relevant net profit: net profit adjusted for extraordinary items and non-cash amortization, based on the normalized financial result, including the corresponding tax effects

7) In relation to the closing price in the year concerned