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 Ove Overvi view | S Str trat ategy gy 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 Hi High h exp exposure to to attr ttractive bi biopharma and d li life e science indus dustry ~€2.2b .2bn Sales revenue 2020e Group sales revenue ~15. 5.5% 5% ~ €2. ~ €2.2bn bn Sales CAGR 1 2015-2020e ~28. 8.5% 5% EBITDA margin 2 2020e €412m 2m 60 60+ Locations worldwide, Sales with life science headquartered in Göttingen, Germany ~85% 85% ~35% 35% customers ~ 1 10,000 0,000 Employees 2020e 2000 Based on FY 2020 guidance midpoints 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 Molec ecul ule e Cell line ne and and Upst stream am & & devel dev elopment process ss develop opment nt downstre tream p prod roducti 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 ~€2.2bn ~ +1 +14.5% 5% Sales CAGR +14.8% 39.5 EBITDA-margin 1 +8 2100 +8.8pp +13.2% 37.5 1900 +9.3% 35.5 +18.2% 1700 33.5 +16.0% 1500 31.5 +12.6% +8.8% 29.5 1300 +13.6% ~28.5 27.5 1100 27.1 25.5 25.9 €733m 900 ~€733m 25.1 25.0 23.5 23.6 700 ~€650m 21.5 21.0 500 19.5 20.5 19.7 20.1 300 17.5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e EBITDA 1 marginin % Sales revenue Intec Division; divested in 2|2015 Sales growth and CAGR 2011-20 for continued operations, in constant currencies; 2020 based on guidance midpoint 1 Excluding extraordinary items 8 Overview | Strategy

Regional balance better reflecting end-markets ~€650m €650m ~€1 €1.8b 8bn ~€24 €240b 0bn 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 CAPEX compositio sition 2020 2020 CAPEX ratio CAPEX atio 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 ~3% Maintenance 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 Acq cquis isit itio ion crite teri ria Integration: Management capacity; cultural fit Price: Fair valuation; reach Sartorius‘ profitability level in 2-3 years 11 Overview | Strategy

Recent acquisitions significantly strengthen positioning of both divisions Acq cquis isit itio ion of f Bio iologica ical Industrie ies Acq cquis isit itio ion of s f selected l life ife s scie ience ce a assets fr from Danaher ~$ ~$85 850m ~$170m 0m ~€45m 45m ~€20 ~€20-25 25m m Purchase price Sales revenue in 2019 For 50%+1 of shares Sales revenue in 2019 + 300 300 May May 202 2020 + 130 130 De Dec. 2019 2019 Employees Date of consolidation Employees Date of consolidation  Assets include bioanalytical tools for LPS; upstream and  Developer and manufacturer of cell culture media downstream technologies for BPS 12 Overview | Strategy

Sartorius 2025 ambition and initiatives Strategic initiatives 2025 targets Reg Regional ~€4bn 4bn  Participate in strong Chinese market growth Sales revenue  Continue to outperform the important U.S. market Portf tfolio  Add high-impact innovation, e.g. digital tools ~ 2/3 ~ 1/3 1/3 Organic Acquisitions  Enhance process development capabilities  Expand into adjacent applications ~28% 8% Opera ration 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 13 Overview | Strategy

Sartorius 2025 ambition per division SSB | BPS SSB | BP LPS LPS Sart Sa rtori rius Gro Group up ~€2 ~€2.8b 8bn ~€1.2bn .2bn ~€4 ~€4bn Sales revenue Sales revenue Sales revenue ~30% ~30% ~25% ~25% ~28% ~28% EBITDA margin EBITDA margin EBITDA margin 2025 targets are based on 2017 currency exchange rates; EBITDA excluding extraordinary items 14 Overview | Strategy

Our products are widely used in the development and production of biologics against COVID-19 Pandemic crisis with significantly different effects 180+ companies in the divisions developing corona  BPS benefits from demand related to the vaccines development and production of vaccines and therapeutics against COVID-19; consequences from delays in clinical trials not clear yet  LPS affected by softer macroeconomic environment; postive effects on products The majority work with that are used for testing Sartorius products 15 Overview | Strategy

Agenda Overview | Strategy Biopro roces cess Solu oluti tions ons Divis Division on Lab Products & Services Division FY 2020 Guidance | H1 2020 Results 16

Snapshot of the Bioprocess Solutions Division Total solution provider for biomanufacturing Track record of dynamic growth 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 17 Bioprocess Solutions

Generating revenue throughout the lifecycle of a biopharma drug Stag age Precl clini nica cal Clini nica cal Commercia ial (1 year) (4-7 years) (15+ years) Proof of concept - pilot Large Scal cale Process development  Wide product range of equipment and consumables for all stages (from pre-commercial to large-scale manufacturing); optimal scalability  Engineering support with excellent application knowhow and understanding of the entire bio-production process  Production process of each individual drug is subject to validation by health authorities (e.g. FDA, EMA) and part of the drug approval 18 Bioprocess Solutions

Covering most steps of the biopharmaceutical manufacturing process  Differentiated by the range and completeness of the portfolio  Excellent positioning in key Culture media Seed Scale-up Fermentation single-use technologies preparation cultivation  Internationally recognized supplier enabling innovation UPSTREAM AM in bioprocessing through own DOWNS NSTR TREAM AM R&D and partnerships Final Cryo- Sterile Concen- Virus clearance & Chroma- Clarification & filling preservation filtration tration filtration tography centrifugation 19 Bioprocess Solutions