Annual Shareholders Meeting on April il 8, 2014 14 Annu nnual al - PowerPoint PPT Presentation

Welcome | Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue | Benvenuti Annual Shareholders’ Meeting on April il 8, 2014 14 Annu nnual al Shareholders’ Meeting on April ril 4, , 2017 017 Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue | Benvenuti | Bienvenid Willkommen | Welcome | Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue Joachim Kreuzburg Chairman of the Board and CEO

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 2016 6 Result lts s Review 02 Dividend Proposal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors

Another year of healthy growth in revenues and profits 16 2016 Continued double-digit top line growth Economies of scale drive overproportionate expansion of profitability 20 Single-use portfolio complemented through the acquisition of kSep Systems Acceleration and step up of investments to support future growth 4

Excellent development in line with upgraded expectations Order Intak take Sales Reve venu nue and Growt wth by by Region ion Sales s Reve venu nue in € millions in € millions in € millions unless otherwise specified 1,080.8 1,051.6 EMEA 454.4 | +16.5% 946.4 884.3 Americas 387.8 | +21.0% € 1.05bn 5bn Asia | Pacific 209.5 | +29.0% FY 15 FY 16 FY 15 FY 16 +14. 4.2% 2% | + + 15.6%cc 1 +18. 8.9% 9% | + + 20.4%cc 1 Sales growth in constant currencies  All product segments achieved double-digit growth in a continued dynamic market environment  Further market shares gains, esp. in the Americas; momentum in Asia | Pacific supported by some larger equipment projects  Recent acquisitions contributed approx. 2 pp to sales growth 1 Constant currencies 2 Underlying = excl. extraordinary items 3 Underlying EPS = based on net profit after non-controlling interest, adjusted 5 for extraordinary items and amortization, based on a normalized financial result and tax rate; FY 2015 adjusted for stock split, rounded values

Overproportionate earnings growth yet again Earnings rnings per r Share re 1 Underlyi lying ng EBITDA TDA and Margin rgin in € 39,9 39,6 288,7 39,3 39 38,7 38,4 38,1 37,8 37,5 37,2 36,9 36,6 36,3 36 35,7 231,3 35,4 35,1 34,8 34,5 1.92 34,2 33,9 33,6 33,3 33 32,7 32,4 32,1 1.5 31,8 31,5 31,2 1.51 30,9 30,6 160,5 30,3 30 29,7 29,4 1.2 29,1 135,6 28,8 28,5 28,2 27,9 27,6 117,0 27,3 27 26,7 26,4 0.9 26,1 27,5 25,8 25,5 25,2 24,9 26,2 24,6 24,3 24 23,7 0.6 23,4 23,1 22,8 22,5 22,2 23,5 21,9 21,6 23,0 21,3 21 0.3 20,7 20,4 20,1 21,5 19,8 19,5 19,2 18,9 18,6 18,3 18 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 +24. 4.8% 8% +26. 6.8% 8% EBITDA in millions of € EBITDA Margin in %  Underlying EBITDA margin expansion of 1.3 pp driven by economies of scale 1 Underlying EPS = based on net profit after non-controlling interest, adjusted for extraordinary items and amortization, based on 6 a normalized financial result and tax rate; FY 2015 adjusted for stock split, rounded values

Healthy cash flow performance; influenced by acquisitions Change Sarto toriu ius Stedim im Biot otech ch Grou oup FY 2015 FY 2016 16 in % € in millions Net cash flow from operating activities 142.8 156.7 +9.7 Net cash flow from investing activities 1 -106.3 -102.7 +3.4 Net cash flow from financing activities -27.2 -50.1 -83.9 1 Net cash flow from investing activities and acquisitions | divestments  Net operating cash flow influenced by an increase in working capital and higher tax payments  Net investing cash flow reflects step up of capex and payments for the acquisitions of BioOutsource and Cellca (both 2015) and kSep (2016) 7

Financial position remains very strong Net t Debt t to und nderlyi rlying EBITDA TDA Balan ance ce She heet in € millions unless otherwise specified in € millions 1,5 130.0 150 23.8% 25.6% 113.7 1,2 32.9% 36.1% 1.5 12.3% 87.4 13.7% 86.4 100 0,9 1.0 1.0 1.2 67.6 0.9 0,6 63.9% 67.1% 60.7% 50 63.9% 0.6 0.5 0,3 0.4 0.3 0.2 0 FY 15 FY 16 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 Non-current assets Equity Net debt in millions of € Current assets Financial debt Net debt to underlying EBITDA Non-financial debt 8

Balance sheet of the parent company Sarto toriu ius Sted tedim im Biote otech ch S.A. December 31, 2016; € in millions (unless otherwise specified) Asse ssets s Equity ity and Liabilit bilities es 136.5 87.6% 103.6 66.4% Non-current assets Equity Current assets 19.4 12.4% Liabilities 19.4 33.6% Tota tal Tota tal 155.9 .9 100% 155.9 .9 100% 9

Stable share price development after a steep increase in 2015 SSB +1.8 .8% Market rket Capita itali lization zation NASDAQ Q Biote otech ch -21 21.7 .7% 130% CAC C Small ll +9.9 .9% € 5. 5.8 8 bn bn SBF1 F120 +4.7 .7% as of March 31, 2017 105% 90% 85% 70% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar 2016 2017  Share price more than doubled in 2015; increased by 1.8% in fiscal 2016  Implementation of stock split in May 2016 10

Agenda 01 2016 Results Review 02 02 Dividen idend d Propos posal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors

Strong dividend increase yet again Dividen idend d per Share e Earnings ngs per Share in € in € 1.92 0.42 1.51 0.33 0.95 0.22 0.82 0.20 0.18 0.70 2012 2013 2015 2016 2012 2013 2015 2016 1 2014 2014  8 th dividend increase in succession  Total profit distributed would increase by 26.0% from € 30.7mn to 38.7mn  Payout ratio 2 of 21.9% (2015: 22.1%) in line with SSB’s dividend policy 12 Figures for 2012-15 adjusted for stock split; rounded values 1 Subject to approval by the AGM 2 Relative to underlying net profit

Agenda 01 2016 Results Review 02 Dividend Proposal 03 03 Executi tion on on mid-term term plan 04 Outlook 2017 05 Adjustments to Board of Directors

SSB has a unique position in an attractive market, ... Broadest st portf tfolio io in the indust stry Pioneer & market leader in SU-technologies; 75% recurring revenue Leading ding posit sition ions s in key technolo ology gy platfor tforms ms > 85% of sales generated from a TOP 1-3 position Strong ng reputa tation ion in a market et with high entry barrier ers Regulated environment; validated processes Strong ng Biop ophar harma ma Market et Growth th Market et Penetratio tion n of of Single le-use se produ duct cts 2 70 – 80 % ~ + 9% 2016 2020 25% 25% 28% 28% CAGR 1 30 – 40 % 10 – 20 % Past Present Future 14 1 Evaluate Pharma: World Preview 2016, Outlook to 2022; Sept 2016; Frost & Sullivan; CAGR 2016 to 2020 2 Own estimates

... a strong track record of profitable growth... les CAGR ~ ~ +15.5% 5.5% EBITDA gin +6.6 .6 pp 2011 11-16 6 Sales TDA 1 Margin +20.4% 0.4% 00 33 +19.4 9.4% 32 € 1.05bn +15.9% 5.9% 31 00 30 +10.8 0.8% 29 +10.3% 0.3% 28 800 27 26 25 27.5 600 24 € 477m 23 26.2 22 400 21 23.5 20 23.0 21.5 20.9 19 200 18 17 16 0 15 201 011 201 012 201 013 201 014 201 015 2016 Sales revenue EBITDA 1 margin in % Sales growth and CAGR in constant currencies ; 1 Excluding extraordinary items 15

... and is well on track to meet 2020 targets Strategic Initiatives ~ ~ € 1.5 1.5-1.6 1.6 bn 2 Regional Sales es revenue enue  Gain share in North America  Leverage market growth in Asia ~ 4|5 ~ 1|5 Portfolio Organ rganic ic Acqui uisi sition tions  Alliances and acquisitions  Own product development ~ 29 29-30% 30% 2 Infrastructure EBITDA TDA 3 marg rgin in  Continued capacity expansion 16 1 CAGR 2011 to 2016 in constant currencies 2 Based on 2015 fx rates 3 Excl. extraordinary items

Regional | Portfolio | Infrastructure Continuous market share gains in the Americas Sales Growth wth America icas Footp tprint rint Sales Share America rica ~ 20% 20% 2016: 6: 37% 37% CAGR 1 2011-16 Bohemia 387,8 2011: 1: 27% New Oxford Mexico City Yauco 130,9 Production | Sales 2011 2016 Sales 2010 2012 2013 2015 2016  Own sales  Optimized  Cell Culture Media  New test- and  New process organization go-to-market and TAP Biosystems trainings labs at HQ development lab established approach acquired in Bohemia, NY in Boston 17 1 In constant currencies