Simplifying Progress Investors Presentation 9M 2020 Results - PowerPoint PPT Presentation

Simplifying Progress Investors Presentation 9M 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 | 9M 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 ~ € 2.3 2.3bn bn Sales revenue 2020e Group sales revenue ~16.0% .0% ~ ~ € 2.3bn Sales CAGR 1 2015-2020e ~29. 9.5% 5% EBITDA margin 2 2020e € 412m 60 60+ Locations worldwide, Sales with life science headquartered in Göttingen, Germany ~85% ~35% 5% customers ~ 10,0 ,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 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 ~ € 2.3bn ~ +14.5% Sales CAGR +14.8% 39.5 EBITDA-margin 1 +9.8pp 2100 +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% ~29.5 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 20.5 19.5 19.7 20.1 300 17.5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e EBITDA 1 margin in % 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 ~ € 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 BIA Umetrics Biosystems Technologies Outsource Industries Separations 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

Recent acquisitions significantly strengthen positioning of both divisions Acquisi isiti tion on of Biolog ogic ical l Industr tries es Acquisi isiti tion on of selec ected ted life science nce assets ts from om Danaher er ~$825m 5m ~$170m ~ € 45m 5m ~ € 20 20-25m 5m Purchase price Sales revenue in 2019 For 50%+1 of shares Sales revenue in 2019 + 300 May 2020 + 130 Dec. 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

BIA Separations to become part of Sartorius  Market-leading technology for purification in advanced therapy processes Strategic  Highly complementary to current purification offering and to advanced therapy rationale portfolio  Transaction volume of € 360mn; € 240mn in cash, € 120mn in SSB shares Acquisition terms  Performance-based earn-out payments over the next five years and financials  ~ € 25mn sales revenue in 2020, very strong double-digit growth rates; margin accretive  Expected to close in Q4/2020; subject to customary closing conditions Closing and  No material impact on P&L in 2020 consolidation  Fully consolidated in Bioprocess Solutions division 13 Overview | Strategy

Sartorius 2025 ambition 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 14 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 15 Overview | Strategy

Our products are widely used in the development and production of biologics against COVID-19 Pandemic c crisis with h significan cantly tly diffe feren rent t 180+ companies effects ects in the divi visi sions ns 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 16 Overview | Strategy

Agenda Overview | Strategy Bioproce ocess Soluti tions ns Division Lab Products & Services Division FY 2020 Guidance | 9M 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

Generating revenue throughout the lifecycle of a biopharma drug Preclinica linical Clinical inical Comm mmer ercia cial Stag age (1 year) (4-7 years) (15+ years) Proof of concept - pilot Large Scale ale 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 19 Bioprocess Solutions