Simplifying Progress Investors Presentation H1 2020 Results - PowerPoint PPT Presentation

Simplifying Progress Investors Presentation H1 2020 Results

Disclaimer This presentation contains statements concerning the future performance of the Sartorius 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. 2

Agenda Overview ew | Strateg tegy Bioprocess Solutions Division Lab Products & Services Division FY 2020 Guidance | H1 2020 Results 3

Partner of biopharmaceutical research and industry 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. 4 Overview | Strategy

Sartorius at a glance High h expos osure ure to attra racti tive e bioph pharma arma and life e science e industry stry ~ € 1.8bn .8bn Sales revenue Group sales revenue ~14% € 1,827m Sales CAGR 1 2014-2019 27.1% .1% EBITDA margin 2 € 412m 60+ 60 Sales with life science customers Locations worldwide, headquartered in Göttingen, Germany ~85% ~35% 5% 9,016 016 Employees 2000 2019 Based on FY 2019 figures 1 For continued operations, in constant currencies 2 Excluding extraordinary items 5 Overview | Strategy

Strategic focus of both divisions on the biopharma value chain Bioprocess Solutions Division Molecule ule Cell line e and Upstre tream m & develop lopment ment process ess develop opment ent downstrea stream m produc ducti tion on Quality | Testing | Validation Lab Products & Services Division 6 Overview | Strategy

Attractive market environment with strong growth opportunities 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 7 Overview | Strategy

Sales revenue has more than doubled over the last 5 years +14.8% ~ +13% 3% Sales CAGR +13.2% ~ € 1.8bn 39.5 EBITDA-margin 1 +7.4pp 1900 +9.3% 37.5 1700 +18.2% 35.5 +16.0% 33.5 1500 +12.6% 31.5 1300 +8.8% 29.5 +13.6% 1100 27.5 27.1 25.5 900 25.9 € 733m 25.1 25.0 23.5 700 23.6 ~ € 650m 21.5 500 21.0 20.5 19.5 19.7 20.1 300 17.5 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBITDA 1 margin in % Sales revenue Intec Division; divested in 2|2015 Sales growth and CAGR 2011-19 for continued operations, in constant currencies 1 Excluding extraordinary items 8 Overview | Strategy

Regional balance better reflecting end-markets ~ € 650 650m ~ € 1.8bn .8bn ~ € 24 240bn bn CAGR 22% ~+16% 25% 27% 25% Asia | Pacific ~+16% 35% 51% Americas 53% EMEA ~+11% 40% 22% Sales by region Sales by region Global biopharma market 2011 2019 2019 2011 2019 2019 CAGR for continued operations, in constant currencies 9 Overview | Strategy

Infrastructure prepared for further organic growth CAPEX compos osition on 2020 CA CAPE PEX X ratio in % 15.2 14.9 12.3 11.7 10.1 ~10.0 ~X% Major projects 9.1 8.8 7.7 ~3% Regular expansion Capitalized R&D ~2% 1 1 2 2012 2013 2014 2015 2016 2017 2018 2019 2020 Maintenance ~3% 1 Incl. discontinued operation 2 Based on 2020 guidance Expansion of fermenter Expansion of R&D facilities production capacities and headquarter 10 Overview | Strategy

M&A strategy – adding innovation, enhancing focus Essen Divestment Life Science assets Intec Division Intellicyt ViroCyt BioScience from Danaher 2013 2014 2015 2016 2017 2018 2019 2020 TAP AllPure Bio Cellca kSep Biological Umetrics Biosystems Technologies Outsource Industries Portfolio: Complementary products or technologies Market position: Either among the Top 3 or unique selling point Acquisiti sition on criter eria Integration: Management capacity; cultural fit Price: Fair valuation; reach Sartorius‘ profitability level in 2 -3 years 11 Overview | Strategy

Acquisition of Biological Industries in Q4 2019  Developer and manufacturer of cell culture media  Specializes in media for advanced therapies (cell and gene therapies)  ~130 employees; headquartered in Beit Haemek, near Haifa (Israel)  2019 revenue € 20m to € 25m with healthy growth profile; slightly dilutive EBITDA margin  Will be allocated to BPS and LPS Divisions; fully consolidated in Sartorius Stedim Biotech  Complementary to cell culture media business  Closing of transaction in Dec. 2019, total purchase price of approx. € 45m for just over 50% of the shares 12 Overview | Strategy

Acquisition of selected life science assets from Danaher  Acquisition includes bioanalytical tools for LPS; upstream and downstream technologies for BPS  2019 sales amounted to c. $170m; allocation of approx. $70m to LPS and approx. $100m to BPS; neutral impact on Group margin  ~300 employees with production sites in the U.S., EMEA and China  Purchase price of $825m of which approx. 2/3 to be allocated to LPS and approx. 1/3 to BPS; financing secured  Announced in Q4 2019, deal closed after all regulatory approvals were received; consolidation in May 2020 13 Overview | Strategy

Acquisitions significantly strengthen positioning of both divisions LPS: FortéBi téBio highl hly y synergeti rgetic with the bioana naly lyti tics BPS: Acquisi isiti tion ons s fit t perf rfec ectly tly into o the portf tfol olio io portf tfolio; olio; expands nds spectru trum m to includ ude e protei tein n analysis iQue Screene eener (Sartorius torius) Filtration Identification of antibodies based on cell-based characteristics Fluid Management Octet et (Forté téBio Bio) Testing of the binding quality of Fermentation antibodies to the target cell  Portfolio complemented by businesses from Purification Danaher and BI IncuCyte Cyte | | iQue Screene eener (Sar arto toriu ius) s)  Especially in Analysis of the cell behaviour Cell Culture chromatography and cell Media culture media Pie charts indicate completeness of product offering before the acquisitions 14 Overview | Strategy

Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regiona onal ~ € 4bn bn  Participate in strong Chinese market growth Sales revenue  Continue to outperform the important U.S. market Portf tfoli olio  Add high-impact innovation, e.g. digital tools ~ 2/3 ~ 1/3 Organic Acquisitions  Enhance process development capabilities  Expand into adjacent applications ~28% Opera rati tion ons  Accelerate workflows across the organization through digitalization EBITDA margin  Extend manufacturing base in Asia 2025 targets are based on 2017 currency exchange rates; non-organic revenue growth is accounted for companies acquired from 2018 and onwards; EBITDA excluding extraordinary items; around two-thirds of the growth in the period 2020-2025 expected to be achieved organically and around one-third by acquisitions 15 Overview | Strategy

Sartorius 2025 ambition per division SSB | BPS LPS Sartorius orius Group ~ € 2.8bn 2.8bn ~ € 1.2b 1.2bn ~ € 4bn 4bn Sales revenue Sales revenue Sales revenue ~30% 0% ~25% 5% ~28% 8% EBITDA margin EBITDA margin EBITDA margin 2025 targets are based on 2017 currency exchange rates; EBITDA excluding extraordinary items 16 Overview | Strategy

Agenda Overview | Strategy Bioproce ocess Soluti tions ns Division Lab Products & Services Division FY 2020 Guidance | H1 2020 Results 17

Snapshot of the Bioprocess Solutions Division Track record of dynamic growth Total solution provider for biomanufacturing Sales revenue, € in millions; EBITDA margin 1 in % +15.7% 1,350.5 1500 CAGR 35 1300 33 29.1 1100 31 900 615.6 29 700 27 23.0 500 25 300 23 2014 2015 2016 2017 2018 2019 Global footprint High share of recurring revenues Asia|Pacific Division sales by region Division sales by category Equipment ~24% ~25% Americas ~37% Single-use EMEA products ~39% ~75% Based on FY 2019 figures; sales CAGR in constant currencies; FY 2019 figures restated, CAGR unchanged 1 Excluding extraordinary items 18 Bioprocess Solutions

Covering most steps of the biopharma process chain  Production process design is inalterable for the lifetime of most drugs  Individually customized Culture media Seed Scale-up Fermentation production process preparation cultivation required for all drugs  Decisions for process UPSTR TREAM EAM design, and thus supplier DOWNSTR STREAM EAM selection, are typically made during clinical trials Final Cryo- Sterile Concen- Virus Chroma- Viral Clarification & filling preservation filtration tration filtration tography clearance centrifugation 19 Bioprocess Solutions