Dr. Joachim Kreuzburg Agenda Ordinary Shareholders' Meeting 1 - PowerPoint PPT Presentation

Opening of the meeting Dr. Joachim Kreuzburg

Agenda Ordinary Shareholders' Meeting 1  Report of the Chairman of the Board and CEO  Resolutions Nos. 1 – 10 Extraordinary Shareholders' Meeting 2  Resolutions Nos. 11 – 21

Report of the Chairman of the Board and CEO Dr. Joachim Kreuzburg 3

Disclaimer This presentation contains statements concerning the future performance of the Sartorius Stedim Biotech Group. 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. 4

We have coped well with the first phase of the pandemic Our priorities 1. Safety first: Responsibility for over 6,300 employees 2. Ensure delivery capability for our customers 3. Secure financial stability and strength Challenges Risks of a second wave of infection, global recession,  adaption to longer term changes Remote integration of acquired businesses  5

Our products contribute to the development of effective vaccines 180+ companies developing COVID-19 vaccines Most work with Sartorius products 6

Thank you to our customers for their trust and to all employees and suppliers for keeping our business running! 7

2019 was another year of dynamic profitable growth Strong 2019 with significant double-digit growth rates – upgraded forecast exceeded  Two strategically important acquisitions  Position as a leading international technology partner of the biopharma industry expanded  8

Dynamic top-line growth; further margin increase EBITDA 1 margin EPS 2 Order intake Sales revenue € 1,543.5mn € 1,440.6mn 29.3% 2.85 +16.2% +17.0% +1.1pp +19.9% 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; adjusted for extraordinary items as well as amortization and based on a normalized financial result and tax rate 9

Growth in all regions, Asia|Pacific with the highest momentum Sales revenue Americas cas € 511.6mn | +17.1% EMEA Americas ~ 40% ~ 3 35% EMEA EMEA € 575.1mn | +13.0% Asia|Paci acifi fic € 353.8mn | +23.9% Asia | Pacific ~ 2 25% Acc. to customers‘ location; growth in constant currencies 10

Very solid balance sheet and financial position Key financial indicators CAPEX ratio 1 in % Dec. 31, Sartorius Dec. 31, 2018 Stedim Biotech 2019 14.6 12.6 66.5% 64.7% Equity ratio 9.4 9.2 ~8 7.6 6.5 6.2 5.8 € 125.7mn € 107.7mn Net debt Net debt | underlying 0.4 0.3 EBITDA 2 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 As of 2019 CAPEX is based on cash-flow computation; 2 Based on 2020 guidance 11

Balance sheet of the parent company Balance sheet structure in millions of € and % as of December 31, 2019 Equity and Assets liabilities 87.5 98.8 150 44.0% 39.0% 100 137.0 125.7 50 61.0% 56.0% Current assets Total liabilities 224.5 224.5 Non-current assets Equity 12

Almost 600 new jobs globally Number er of of employees es in the Group Employee ees by by region 71% 14% EMEA Asia | Pacific 6,203 6500 6300 5,637 6100 5900 5,092 5700 5500 4,725 5300 5100 4,202 4900 4700 4500 3,697 4300 4100 3900 3700 3500 3300 3100 15% 2900 2700 2500 2300 Americas 2100 1900 1700 1500 1300 1100 900 700 500 300 2014 2015 2016 2017 2018 2019 13

Healthy mixture of experience and fresh ideas Tenure re in curre rent nt role Age distributio ution in the Group 51% 20% 22% 22% 32% <5 years ≤29 years ≥50 years 5-15 years 6,203 6,203 17% 34% 24% >15 years 30-39 years 40-49 years 14

Two acquisitions significantly strengthen our position in key technologies Chromatography systems Chromatography resins Chromatography columns TFF systems Cell culture media Microcarriers 15

Q1 2020: Very strong start into the year; high demand across all product categories and geographies EBITDA 1 margin EPS 2 Order intake Sales revenue € 534.8mn € 422.1mn 30.0% 0.87 +39.3% +22.3% +1.4pp +19.9% 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; adjusted for extraordinary items as well as amortization and based on a normalized financial result and tax rate 16

Outlook for 2020 positive, but higher uncertainty than usual  Sales guidance includes non-organic contribution FY 2020 2019 of Biological Industries of ~2pp and of the Danaher Guidance 1 Life Science portfolio of ~3pp (for 8 months) Sales revenue  Slight margin dilution by Biological Industries and € 1,440.6mn ~ 17% - 21% and growth about -0.5pp from the consolidation of the Danaher portfolio Underlying  Net debt to underlying EBITDA ratio expected at 29.3% ~ 30.0% EBITDA margin approx. 0.5 (FY 2019: 0.3) CAPEX ratio 9.4% ~ 8.0% 1 In constant currencies 17

Shares have risen substantially 320% Performance 2019 SSB + 69.1% 270% NASDAQ Biotech +24.4% CAC Mid 60 + 19.2% Sartorius Stedim Biotech SBF 120 +25.2% 220% NASDAQ Biotech CAC Mid & Small 170% SBF 120 120% 70% Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 As of June 23, 2020; share prices of the respective main stock exchange; source: Nasdaq 18

Dividend proposal (1)  Initial dividend proposal has been adjusted in light of the ongoing pandemic crisis  Expectation of ongoing considerable uncertainties and risks  At the same time, the current situation may offer additional opportunities for strengthening the portfolio by innovative technologies  Take action to support people and institutions that have been particularly hit by the pandemic crisis or contributing to its management  No general change of dividend policy 19

Dividend proposal (2) Dividends per share 0.68 in € 0.57 0.46 0.42 0.34 0.33 0.22 1 2014 2015 2016 2017 2018 2019  Total profit distributed of € 31.3mn (2018: 52.5mn), payout ratio 2 of 11.9% (2018: 24.0%) Figures for 2014-15 adjusted for stock split; rounded values; 1 Subject to approval by the AGM; 2 Relative to underlying net profit 20

We are led by a clear mission At Sartorius Stedim Biotech, we empower engineers to simplify and accelerate progress in bioprocessing. In this way, we enable new and better pharmaceuticals to be manufactured and help keep medications affordable. 21

Covering most steps of the biopharma process chain Culture media Seed Fermentation | Scale-up preparation cultivation Cell cultivation UPSTREAM DOWNSTREAM Final Cryo- Sterile Concen- Virus Chroma- Viral Clarification & filling preservation filtration tration filtration tography clearance centrifugation 22

Continuous portfolio expansion through complementary acquisitions 2013 2014 2015 2016 2017 2018 2019 2020 TAP AllPure Bio Cellca kSep Umetrics Biological Life Science assets Biosystems Technologies Outsource Industries from Danaher 23

Strong positioning in a fast-growing market 9bn people by 2050; Favorable demographics >2bn 60 yrs or older ~8% CAGR ~30% CAGR for biosimilar Rise of for biopharma biosimilars sales 2019 – 2022 market 2019 – 2025 Strong R&D pipeline; >40% share of biologics in advances in gene and pharma R&D pipeline cell therapy 24

High innovation dynamics in Biopharma Development of new Increased efficiency New tools and Future drug drugs and vaccines possible in the methods required manufacturing is must be accelerated, production of 'classic' e.g. for novel cell and more automated, e.g. through more biopharmaceuticals gene therapies intensified and automation and biosimilars scalable 25

Rapidly growing importance of the Chinese market Huge market potential due to population size SSB with long-standing local presence;   and growing average demand further expansion planned Rapid change from traditional Chinese medicine  to innovation in biopharma Beijing Biologics market ~15% growth forecast Shanghai ~9% ~9% CAGR 2019 ~6% ~6% to 2023 Production and sales China U.S. Europe Sales 26

Sartorius Stedim Biotech 2025 targets and initiatives Strategic initiatives 2025 targets Regional  Participate in strong Chinese market growth ~ € 2.8bn  Continue to outperform in the important U.S. market Sales revenue Portfolio  Add high-impact innovation, e.g. digital tools  Enhance process development capabilities  Expand into adjacent applications ~ 30% Operations EBITDA margin  Accelerate workflows through digitalization  Extend manufacturing base in Asia 2025 targets are based on 2017 currency exchange rates; non-organic revenue growth accounts for companies acquired from 2018 and onwards; EBITDA excluding extraordinary items 27