Simplifying Progress SRI Presentation Sartorius Stedim Biotech, - PowerPoint PPT Presentation

Simplifying Progress SRI Presentation Sartorius Stedim Biotech, February 2020

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. 2

Agenda Company ny Overview and Strateg tegy Responsibility Overview ESG Performance 3

Overview and Strategy Sartorius in brief 35 35+ Locations worldwide, headquartered in Aubagne, France 6,20 203 Employees ~1.44 44bn bn Sales revenue 29.3% 3% EBITDA margin 1 ~35% 5% ~42% 2% ~23% 3% ~ € 15.0bn 5.0bn Sales revenue Sales revenue Sales revenue Sartorius AG market capitalization 2 Americas EMEA Asia | Pacific As of December 31, 2019;1 Underlying EBITDA; 2 As of January 28, 2020; free float 25.7% 4

Overview and Strategy Covering most steps of the biopharma process chain Production process • design is inalterable for the lifetime of most drugs Culture media Seed Scale-up Fermentation Individually • preparation cultivation customized UPSTR TREAM EAM production process required for all DOWNSTR STREAM EAM drugs Decisions for • process design, and thus supplier Final Cryo- Sterile Concen- Virus Polishing Viral Clarification & selection, are filling preservation filtration tration filtration clearance centrifugation typically made during clinical trials 5

Overview and Strategy Attractive market environment with strong growth opportunities 9bn people by 2050; Favorable demographics >2bn 60 yrs or older ~8 ~8% % ~30% 0% CAGR for biosimilar Rise of biosimilars sales 2018 – 2022 CAGR for biopharma market 2018 – 2025 Strong R&D pipeline; >4 >40% % share of biologics in advances in gene and the pharma R&D pipeline cell therapy 6

Sartor toriu ius s Stedim dim Biote tech Sales revenue more than doubled over the last 6 years +18.8% ~ +14% Sales CAGR +13.7% EBITDA-margin 1 +8.4pp +4.1% 1600 33,0 € 1.4bn +20.4% 32,0 1400 31,0 +19.4% 30,0 1200 +15.9% 29,0 29,3 +10.8% 28,0 1000 28.2 27,0 27.5 +10.3% 27.3 800 26,0 26.2 25,0 € 477m 600 24,0 23,0 23.5 400 23.0 22,0 21,0 21.5 200 20.9 20,0 0 19,0 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBITDA 1 margin in % Sales revenue Sales growth and CAGR in constant currencies 1 Excluding extraordinary items 7

Overview and Strategy U.S. remains the most important market; China with the highest growth rates Biologi gics cs market et growth th forecast cast CAGR 2018 to 2022, € in billions U.S. U.S. ~142 ~100 ~+9% U.S. Europe Europe ~56 ~44 ~+7% Europe China China ~ € 300bn ~ € 217bn ~52 ~29 ~+16% China ROW ROW ~44 ~50 • Biologics market in China is at an early stage, but has strong growth potential • Supportive regulatory environment and solid industry foundation; biopharma considered a priority sector • Growth of fermentation capacity in China of 80% (2018 to 2022) 8

Overview and Strategy Acquisitions strengthen and differentiate the Sartorius portfolio Essen Intellicyt ViroCyt BioScience Acquisitions to remain part of strategy 2013 13 2014 14 2015 15 2016 16 2017 17 2018 18 2019 19 2020 20 TAP AllPure Bio Cellca kSep Umetrics Biological Biosystems Technologies Outsource Industries 9

Overview and Strategy Recent investments: Infrastructure prepared for further growth Götting ttingen, en, Germa many ny Aubagne bagne, , France nce Expansion of lab instrument Capacity extension for manufacture and extension of single-use bag capacities for filter production; production new Application Center Beijing jing & Shang nghai, ai, China na Production of aseptic bags and Bost ston, on, USA SA new center for validation services New bioanalytical and biosafety testing facility Yauco co, , Puerto to Rico Capacities for bag and filter production doubled 10

Overview and Strategy Leading positions in key technology platforms Sartorius Merck | Danaher| Thermo GE Top 3 Players Millipore Pall 1) Fisher 1. Merck | Millipore Filtration 2. Danaher | Pall 3. Sartorius 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Fermentation 2. Thermo Fisher 3. GE 1. GE Purification 2. Merck | Millipore 3. Danaher | Pall 1. Thermo Fisher Cell Culture 2. Merck | Millipore Media 3. GE Pie charts indicate completeness of product offering 1) Danaher announced acquisition of GE Biopharma. Sartorius announced acquisition of select businesses of Danaher Life Science; transaction is subject to Danaher’s successful acquisition of the GE Biopharma business and to approvals from various regulatory authorities 11

Overview and Strategy Limited dependence on individual accounts Long-term business relationships with leading global Limited dependence on individual accounts (bio-) pharma companies Sales s to to Top 50 customer omers in 2019, € in millions 350 ~55% ~50% 300 ~45% ~40% 250 Cumulative ~25% 200 share 150 100 50 0 Top 10 11 to 20 21 to 30 31 to 40 41 to 50  More than half of 2018 BPS sales were generated with the Top 50 customers  No individual customer accounts for more than 5% of BPS sales revenue  No single drug accounts for more than 3% of BPS sales revenue 12

Overview and Strategy Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regiona onal ~ € 4bn 4bn  Participate in strong Chinese market growth  Continue to outperform the important U.S. market Sales revenue Portf tfoli olio  Add high-impact innovations, e.g. digital tools ~2/3 ~1/3 3  Enhance process development capabilities Organic Acquisitions  Expand into adjacent applications ~28% Opera rati tion ons  Accelerate workflows across the organization through digitalization EBITDA margin  Extend manufacturing base in Asia 13

Agenda Company Overview and Strategy Responsibility ty Overview ESG Performance 14

Responsibility Strong company values as the basis of all our activities Sustai ainabi abili lity ty Openness ess Enjoyment nt Growing profitably and acting Driving change and progress Working in an energetic and responsibly towards all stakeholders internally and externally rewarding environment 15

Responsibility Our corporate responsibility endorsements Sartorius is a signatory of the United Sartorius is a member of econsense, Nations Global Compact and is the Forum for Sustainable Development committed to sustainable global of German Business. business. 16

Responsibility Our corporate responsibility basics Environ ronment ment Social Governa rnanc nce • Environmental Policy • Policy on Labor Practices • Anti-Corruption Code Policy on Occupational Safety Sustainable Supply Chain • • Management Human Rights Strategy • ESG Risk Reporting • Code of Conduct • Corporate Responsibility Steering • Committee 17

Responsibility Transparency Non-financial group Overall rating: 57 of 100 Overall rating SSB: A Overall rating: C statement published in Environment: 70 Overall rating Group: AA Social governance: C+ our annual report and Labor: 60 Environmental rating: C- externally audited Ethics: 50 Staff and suppliers: C Sustainable procurement: 40 Society and product responsibility: C Products and services: D Corporate governance and business ethics: B- Eco-efficiency: A+ 18

Responsibility Our ESG core topic: Better health for more people We empower scientists and engineers to simplify and accelerate progress in life sciences Anticipate clients needs Time savings in drug • • discovery Accelerate innovation • Cost savings in drug • Collaborate • production Bring experts together • Reduced risk of cross- • contamination Higher flexibility • New and better ter ther erapi apies es and more re afford ordabl ble e medici dicine ne 19

Responsibility Sartorius’ contribution to SDGs Three-step materiality analysis to determine which SDGs are related to Sartorius business activities Identification of the SDGs that are significant for Sartorius 1. Examination of the relevance of each topic to our business, as well as the potential impacts on people and 2. the environment Determination of whether the impacts are positive or negative and to which degree 3. Eight ht SDGs were define ned d as materi rial al in relati tion n to the busine ness activiti ties es of Sartorius rius 20