Annual Shareholder Meeting Joachim Kreuzburg | Chairman of the Board - PowerPoint PPT Presentation

Annual Shareholder Meeting Joachim Kreuzburg | Chairman of the Board and CEO | March 26, 2019

Disclaimer This presentation contains statements concerning Sartorius Stedim Biotech Group’s future performance. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we cannot guarantee that they will actually materialize. This is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantially from the expected ones. It is not planned to update our forward- looking statements. Throughout this presentation, differences may be apparent as a result of rounding during addition.

Agenda 01 01 FY FY 2018 8 Resu sults lts | 2019 9 Guidan ance ce 02 Dividend Proposal 03 Strategic positioning and execution on mid-term plan 04 Explanatory notes to the resolutions 3

Another year of dynamic growth Double-digit gains in sales revenue, order intake and earnings Performance slightly ahead of initial expectations; guidance increased substantially at mid-year Development fueled by strong demand across all product categories and geographies Positive outlook for 2019 and beyond 4

Strong organic development against moderate comps Order intake ke Sales revenue EBITDA TDA & margi gin 1) EPS EPS 2) € in millions € in millions € in millions in € 2.38 1,307.3 .3 1,212.2 .2 1,162.3 .3 1.96 1,081.0 .0 + 16.1 + .1% 342.4 .4 294.9 .9 +12.5 .5% + + 12.1 .1% + + 21.5 .5% 28.2 .2% 27.3 .3% 2017 2018 2017 2018 2017 2018 2017 2018 • Umetrics acquisition contributes around 0.5pp of non-organic sales growth • Underlying EBITDA margin rises significantly due to economies of scale Growth for OI and sales revenue in constant currencies 1) Underlying = excluding extraordinary items 2) Underlying EPS = based on net profit after non-controlling interest, 5 adjusted for extraordinary items, amortization and based on a normalized financial result and tax rate

Growth in all regions, the Americas with highest momentum Americas cas EMEA Asi sia|Pacific ific Sales s by Region ions in € millions in € millions in € millions in % 508.2 .2 422.6 .6 460.7 .7 EMEA 368.8 .8 ~42% 42% Americas ~35% 35% 281.3 .3 251.6 .6 € 1,212. 2.2m 2m + 16.9 + .9% + 10.7% + + + 14.7 .7% Asia | Pacific ~23 23% 2017 2018 2017 2018 2017 2018 • Americas: High momentum against moderate comps • EMEA: Solid growth in sales revenue and dynamic order intake • Asia|Pacific: Very positive development considering high comps 6 Acc. to customers‘ location; growth in constant currencies

Extensive investment program reached its peak CAPE PEX ratio io CAPE PEX compo positio tion 2019 19 in % 14.6 12.6 14 ~11 12 9.2 10 7.6 ~ X % Major projects 6.5 6.2 8 5.8 6 ~ 3 % Regular expansion 4 ~ 2 % Cap. R&D 2 0 ~ 3 % Maintenance 2012 2013 2014 2015 2016 2017 2018 2019 Yauco, Puerto o Rico Goe oettinge gen, German any Aubagn bagne, Fran ance New ERP and extension of Doubling of fluid management Extension of filter capacities Capacity extension global IT infrastructure and filter capacities of bag production 7

Financial position remains strong Key Financia cial l Indica icato tors Net Debt t to Underlyin ying g EBITDA TDA 2 Dec. 31, Dec. . 31, , Sarto toriu ius Stedim im Biotech ch 2017 2018 1.0 1.0 Equity ratio in % 62.6 66.5 .5 1 0.5 0.4 0.4 0.4 Net debt in € millions 127.1 125.7 .7 0.2 Net operating cash flow 0 174.7 227.3 .3 in € millions 2012 2013 2014 2015 2016 2017 2018 8

Considerable number of new jobs created again France Group 5,63 637 5,092 865 826 +~11% +~ +~5% 2017 2018 2017 2018 • More than 5,600 people; 545 new employees • Attractive jobs: open corporate culture, exciting industry, market-leading technologies, global presence, ambitious goals 9

Balance sheet of the parent company Balan ance ce shee heet str truc uctur ure in € millions and % as at December 31, 2018 Equity uity and As Assets Liabil ilit itie ies 66.8 .8 81.3 .3 32.9% .9% 150 40.0% .0% 100 50 121.9 .9 136.3 .3 67.1% .1% 60.0% .0% 203.2 3.2 203.2 3.2 Equity Non-current assets Total liabilities Current assets 10

Shares rise substantially despite volatile stock exchanges 200% SSB +44.9% NASDAQ Biotech -4.8% 180% SBF 120 -11.7% CAC Mid & Small -21.6% 160% 140% 120% 100% 80% 60% Jan. 18 Jan. 18 Mrz. 18 Apr. 18 Mai. 18 Mai. 18 Jun. 18 Jul. 18 Aug. 18 Sep. 18 Okt. 18 Nov. 18 Dez. 18 Jan. 19 Feb. 19  Strong start into 2019: Share price recorded significant gains in the first three months  Market capitalization as of March 12, 2019, at € 9.6 bn 11

Outlook for 2019 FY 2018 FY Y 2019 19 1) Sales revenue growth 13.7% 1) ~ 7% - 11% slightly more than Underlying EBITDA margin 28.2% + 1pp CAPEX ratio 14.6% ~ 11% 1) In constant currencies • Sales guidance includes dilution of 3pp sales growth due to the modification of the cell culture media agreement with Lonza • Operational margin increase of ~ 0.5pp; remainder due to mandatory IFRS 16 changes 12

Agenda 01 FY 2018 Results | 2019 Guidance 02 Dividend dend Pro roposal osal 03 Strategic positioning and execution on mid-term plan 04 Explanatory notes to the resolutions 13

Strong dividend increase yet again Divide dend d per sh share Earni nings ngs per sh share in € in € 2.38 0.57 1.96 96 1.92 0.46 1.51 51 0.42 0.33 0.95 0.82 0.22 0.20 1) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 10 th dividend increase in succession • • Total profit distributed would increase by 23.9% from € 42.4mn to 52.5mn Payout ratio 2) of 24.0% (2017: 23.5%) in line with SSB’s dividend policy • Figures for 2013-15 adjusted for stock split; rounded values 1) Subject to approval by the AGM 2) Relative to underlying net profit 14

Agenda 01 FY 2018 Results | 2019 Guidance 02 Dividend Proposal 03 03 St Strat ategic egic posi sitioning tioning and execut ecution ion on mid-term term plan an 04 Explanatory notes to the resolutions 15

Our mission We empower scientists and engineers to simplify and accelerate progress in life science and bioprocessing, enabling the development of new and better therapies and more affordable medicine. 16

Covering most steps of the biopharma process chain Upst strea eam Culture media Seed cultivation Scale-up Fermentation preparation Downst strea eam Final Cryopreservation Sterile Concentration Virus removal Polishing Viral Clarification & filling filtration filtration clearance Centrifugation • Production process design is fixed for the lifetime of most drugs • Unique and customized production process required for any drug • Decisions for process design, and thus supplier selection, are typically made during clinical trials 17

Strong market fundamentals Favorable able Stron rong R&D pipeli line; ne; Incre creasing ing Ris ise of of demo mograph aphic ics advan ance ces s in gene ne and healt lthc hcar are spendin ing biosi simila milars cell ll the herapy apy 9bn 9bn +6.4% 4% ~30% >40% % People by 2050; CAGR worldwide CAGR for biosimilar Share of biologics in >2bn n 60 yrs for prescription drug sales 2018 – 2022 pharma R&D sales 2018 – 2025 pipeline or older ~8% ~8 CAGR R biopharma arma marke rket 2018 – 2025 17

Leader in the growing single-use technology market Past Today High initial investment Lower investment throughout entire life cycle High cleaning effort and expense Lower consumption of water and energy Risk of contamination Higher flexibility 19

Enabling the digitization of bioprocessing • Digitization of processes are gaining importance in the biopharmaceutical industry • Applications in the entire process chain • Sartorius offers the leading software for modeling and optimizing biopharmaceutical development and production processes 20

Biosimilars: Strong growth, big opportunities Market et for for biosimila similars and other biolog logics ics Major blockbuster biologics are going off • € in billions patent +~ +~30 30% Time-to-market is key as only the first few • CAGR CAGR biosimilar providers are most likely to be ~ 18 profitable Various approvals in Asia and Europe; U.S. at • the beginning ~ 6 Account for a share of the biopharma • Biosimilars market that is currently still small, but fast- Other ~ 282 growing biologics ~ 211 2018 2022 21

Regional focus remains on the U.S. and China Regiona ional l marke ket growth th forecast cast • U.S. is the world's largest market 300 € in billions for biologics CAGR • Biopharma market in China at an 250 early stage, but strong growth +~16 16% % 52 52 potential 200 China na • Tripling of production capacities in China by 2020 56 56 +~7% +~ % 29 29 150 China Europe ope Europe 44 44 U.S. 100 +~ +~9% % 142 U.S. 100 50 0 2018 2022 22