Slide 1: Investor Conference Call Preliminary FY 2023 Results | Guidance 2024 | Midterm Outlook
Investor Conference Call Preliminary FY 2023 Results | Guidance 2024 | Midterm Outlook Joachim Kreuzburg, René Fáber Sartorius | Sartorius Stedim Biotech | January 26, 2024
Slide 2: 2023 a transition year across the entire Life Science industry
2023 a transition year across the entire Life Science industry ▪ Preliminary results for Group and divisions well in line with October guidance ▪ Demand continues to gradually pick up: Q4 book to bill ratio slightly above 1 for both divisions ▪ Polyplus acquisition and buildup of CGT technology plat
Slide 3: Agenda
Agenda Sartorius Group FY 2023 results | FY 2024 guidance | Midterm outlook Sartorius Stedim Biotech Group FY 2023 results | FY 2024 guidance | Midterm outlook Questions & Answers 3
Slide 4: Business picking up since end of Q3; trend expected to gradually intensify
Sartorius Group Business picking up since end of Q3; trend expected to gradually intensify FY 23 vs. FY 19 vs. FY 20 Sales revenue +87% +43% Order intake +59% +6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Sales ex Covid Covid-19-related sales Order intake G
Slide 5: FY top and bottom line reflect temporarily weak post pandemic demand
Sartorius Group FY top and bottom line reflect temporarily weak post pandemic demand Sartorius Group FY 2022 FY 2023 in % in % cc1 in millions of € unless otherwise specified Sales revenue 4,175 3,396 -18.7 -16.6 Order intake 4,007 3,067 -23.5 -21.5 Underlying EBITDA2 1,410 963 -31.7 Underlying EBIT
Slide 6: All regions affected by normalization; China particularly weak
Sartorius Group All regions affected by normalization; China particularly weak Americas EMEA Asia|Pacific Sales by region € in millions € in millions € in millions in % -14.9% -14.4% -22.1% EMEA Americas 1,544 ~39% ~38% 1,551 1,280 1,316 1,080 799 €3,396m Asia|Pacific FY 2022 FY 2023 FY 2022 FY 2023
Slide 7: Bioprocess Solutions: FY strongly impacted by headwinds, sequential OI recovery since end of Q3
Sartorius Group Bioprocess Solutions: FY strongly impacted by headwinds, sequential OI recovery since end of Q3 Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions -21.1% cc -17.6% cc -23.0% -19.5% -34.2% 3,123 3,326 2,678 2,404 1400 1,188 1200 80 1000 35.
Slide 8: Lab Products & Services: Low investments by many customers; margin remains on robust level
Sartorius Group Lab Products & Services: Low investments by many customers; margin remains on robust level; positive trend at year-end Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions -22.7% cc -12.7% cc -25.1% -15.4% -18.8% 885 848 222 663 718 180 26.2
Slide 9: Strong operating CF driven by working capital optimization; Polyplus acquisition reflected in investing CF
Sartorius Group Strong operating CF driven by working capital optimization; Polyplus acquisition reflected in investing CF Sartorius Group FY 2022 FY 2023 in % in millions of € unless otherwise specified ▪ Extraordinary items driven by acquisitions and integrations, structuring measures and corporat
Slide 10: Investing strategically into capacities and robust regional set-ups for long-term organic growth and resilience
Sartorius Group Investing strategically into capacities and robust regional set-ups for long-term organic growth and resilience Capex in millions of €; ratio in % 560 523 Global Resilience Redundant Capacity 407 16.5 11.8 12.5 ~13 Customer proximity Operational Excellence 2021 2022 2023 2024e ▪ Unde
Slide 11: Balance sheet reflects recent M&A and investment program
Sartorius Group Balance sheet reflects recent M&A and investment program Key financial indicators Sartorius Group Dec. 31, Dec. 31, in millions of € unless otherwise specified 2022 2023 Non-current assets 4,955 7,798 ▪ Non-current assets increased due to higher goodwill and other intangible assets r
Slide 12: Focus on strong cash generation; potential equity measures would accelerate deleveraging
Sartorius Group Focus on strong cash generation; potential equity measures would accelerate deleveraging Debt leverage 5.0 ▪ Clear commitment to maintain solid investment grade Upper end excl. any rating capital measures ▪ Focus on profitable growth and strong operating cash flow to quickly reduce l
Slide 13: Guidance 2024: Profitable growth with moderate first half of the year
Sartorius Group Guidance 2024: Profitable growth with moderate first half of the year Guidance 20241 Sales revenue growth Underlying EBITDA margin Sartorius Group Mid- to high single-digit percentage range slightly above 30% thereof from acquisitions ~1.5 pp Bioprocess Solutions Mid- to high single-
Slide 14: Fundamental biopharma growth drivers intact, additional dynamics from the new modalities market segment
Sartorius Group Fundamental biopharma growth drivers intact, additional dynamics from the new modalities market segment ~9,500 biologics in development; Pillars of growth CAGRs 2022–20271 increasingly innovative and diverse pipeline 1 Pharma market ~3-6% Lab equipment & ~5% consumables ~70% ~30% Oth
Slide 15: Midterm outlook to 2028: Expect to continue outgrowing the market
Sartorius Group Midterm outlook to 2028: Expect to continue outgrowing the market BPS LPS Sartorius Group Sales revenue CAGR Low to mid- Mid to high Low-teens % to 2028 teens % single-digit % Underlying EBITDA margin ~36% ~28% ~34% in 2028 ▪ ~1/5 of sales revenue growth to come from acquisitions in
Slide 16: Broad set of ambitious sustainability targets
Sartorius Group Broad set of ambitious sustainability targets 2030 mid-term targets 2045 long-term target ~10% Zero 100% Net-zero av. reduction of CO2eq emission intensity p.a. (Scopes 1-3) avoidable1 emissions in Scopes 1 and 2 electricity from renewable sources emissions Decarbonization of the ent
Slide 17: Agenda
Agenda Sartorius Group FY 2023 results | FY 2024 guidance | Midterm outlook Sartorius Stedim Biotech Group FY 2023 results | FY 2024 guidance | Midterm outlook Questions & Answers 17
Slide 18: Business picking up since end of Q3; trend expected to gradually intensify
Sartorius Stedim Biotech Group Business picking up since end of Q3; trend expected to gradually intensify FY 23 vs. FY 19 vs. FY 20 Sales revenue +93% +43% Order intake +60% +2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Sales ex Covid Covid-19-related sales
Slide 19: FY top and bottom line reflect temporarily weak post pandemic demand
Sartorius Stedim Biotech Group FY top and bottom line reflect temporarily weak post pandemic demand Sartorius Stedim Biotech Group FY 2022 FY 2023 in % in % cc1 in millions of € unless otherwise specified Sales revenue 3,493 2,775 -20.5 -18.7 Order intake 3,315 2,476 -25.3 -23.6 Underlying EBITDA2 1
Slide 20: All regions influenced by normalization; China particularly weak
Sartorius Stedim Biotech Group All regions influenced by normalization; China particularly weak Americas EMEA Asia|Pacific Sales by region € in millions € in millions € in millions in % -15.5% -16.7% -26.4% EMEA Americas ~ 39% ~ 38% 1,278 1,319 1,054 1,093 896 €2,775m 628 FY 2022 FY 2023 FY 2022 FY
Slide 21: Strong operating CF driven by working capital optimization; Polyplus acquisition reflected in investing CF
Sartorius Stedim Biotech Group Strong operating CF driven by working capital optimization; Polyplus acquisition reflected in investing CF Sartorius Stedim Biotech Group FY 2022 FY 2023 in % in millions of € unless otherwise specified ▪ Extraordinary items driven by acquisitions and integrations, str
Slide 22: Investing strategically into capacity and robust regional set-ups for long-term organic growth and resilience
Sartorius Stedim Biotech Group Investing strategically into capacity and robust regional set-ups for long-term organic growth and resilience Capex in millions of €; ratio in % Global Resilience Redundant Capacity 474 431 324 17.1 Customer proximity Operational Excellence 11.2 12.3 ~13 2021 2022 2023
Slide 23: Balance sheet reflects recent M&A and investment program
Sartorius Stedim Biotech Group Balance sheet reflects recent M&A and investment program Key financial indicators Sartorius Stedim Biotech Group Dec. 31, Dec. 31, in millions of € unless otherwise specified 2022 2023 Non-current assets 3,394 6,325 ▪ Non-current assets increased due to higher goodwill
Slide 24: Focus on strong cash generation; potential equity measures would accelerate deleveraging
Sartorius Stedim Biotech Group Focus on strong cash generation; potential equity measures would accelerate deleveraging Debt leverage 4.5 ▪ Focus on profitable growth and strong operating Upper end excl. any cash flow to quickly reduce leverage capital measures ▪ Equity and/or equity-like measures r
Slide 25: Guidance 2024: Profitable growth with moderate first half of the year
Sartorius Stedim Biotech Group Guidance 2024: Profitable growth with moderate first half of the year Guidance 20241 Sales revenue growth Underlying EBITDA margin Sartorius Stedim Biotech Group Mid- to high single-digit percentage range above 30% thereof from acquisitions ~2 pp ▪ Some continued desto
Slide 26: Fundamental biopharma growth drivers intact, additional dynamics from the new modalities segment
Sartorius Stedim Biotech Group Fundamental biopharma growth drivers intact, additional dynamics from the new modalities segment ~9,500 biologics in development; Pillars of growth CAGRs 2022–20271 increasingly innovative and diverse pipeline 1 Pharma market ~3-6% ~70% ~30% Biopharma market ~10% Other
Slide 27: Polyplus acquisition a milestone for creating a technology platform for applications in the CGT market
Sartorius Stedim Biotech Group Polyplus acquisition a milestone for creating a technology platform for applications in the CGT market Biological Albumedix Polyplus Up & downstream solutions CellGenix Xell Industries Cell culture Growth factors Media and Recombinant Transfection Cell line development
Slide 28: Midterm outlook to 2028: Expect to continue outgrowing the market
Sartorius Stedim Biotech Group Midterm outlook to 2028: Expect to continue outgrowing the market Sales Revenue CAGR Low to mid-teens range to 2028 thereof ~1/5 from acquisitions Underlying EBITDA above 35 % Margin in 2028 ▪ Margin target includes expenses for reduction of the company’s CO2 emission
Slide 29: Questions & Answers
Questions & Answers 29
Slide 30: Disclaimer
Disclaimer This presentation contains statements concerning the future performance of the Sartorius and the Sartorius Stedim Biotech Groups. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we cannot guarantee tha