Sartorius AG · XETR:SRT
Sartorius — ESG Presentation (April 2024)
49 slides from Sartorius's sustainability presentation, April 2024
Slide 1: SRI Investor Presentation
SRI Investor Presentation April 2024
Slide 2: Agenda
Agenda Overview | Mission Green sustainability Social responsibility Governance 2
Slide 3: Sartorius at a glance
Sartorius at a glance ~€3.4bn Two divisions with clear focus on attractive biopharma and life Sales revenue 2023 science industry ~15% Sales CAGR1 2013-2023 28.3% 21% EBITDA margin2 2022 79% Sales 2023 Lab Products & Services Bioprocess Solutions ~€3.4bn Division 60+ Division Locations worldwide, HQ
Slide 4: Supporting customers from drug discovery to commercial-scale production of biologics
Supporting customers from drug discovery to commercial-scale production of biologics Bioprocess Solutions Division Molecule Cell line and Upstream & development process development downstream production Quality | Testing | Validation Lab Products & Services Division 4
Slide 5: Long-term value creation by focusing on four material topics
Long-term value creation by focusing on four material topics 1 Economic 1 ▪ Advance innovation, contribute to medical progress performance ▪ Protect the environment by reducing emissions, waste and water use 2 ▪ Assuming responsibility for our products throughout their life cycles 4 Long-term 2 Gove
Slide 6: At the core of our business: Good health and well-being
At the core of our business: “Good health and well-being” Our mission 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. 6
Slide 7: Health is one of the most relevant global topics
Health is one of the most relevant global topics Growing and aging Development and manufacturing of drugs population are time-consuming and costly2 World population over 65 years1 Research > Commercial production ~ 1.6bn ~0.8bn 2022 2050 >€2bn 1 out of 10,000 > of 10 years 1 United Nations: World Po
Slide 8: The challenge: Many innovative biotech medications are very expensive
The challenge: Many innovative biotech medications are very expensive Rheumatism Blood cancer Hemophilia Monoclonal antibody therapy CAR-T cell therapy Gene therapy ~€12,000 ~€280,000 ~€3.5 mn Annual cost of treatment in Germany Cost per treatment in Europe Cost per treatment in the USA 8
Slide 9: Three drivers for innovation: The key to achieve ESG targets
Three drivers for innovation: The key to achieve ESG targets Product Acquisitions development of complementary and in areas of own core competencies differentiating technologies Downstream Cell and gene Bioanalytics processing therapies 3D cell printing Advanced materials Cooperations technology wit
Slide 10: Sartorius' technologies enable researchers to achieve results faster
Sartorius’ technologies enable researchers to achieve results faster, ... Example: digitalization and automation of laboratory processes ▪ More experiments with lower error rate ▪ Data and analysis for better decisions ▪ Shortening time-to-clinic Incucyte® SX5 iQue®3 Octet® Saves more than 5 weeks i
Slide 11: … to increase yield and efficiency in biopharma production …
… to increase yield and efficiency in biopharma production … Example: new, innovative bioprocess technologies Downstream processing time reduced by 60% Significantly higher yields of viral vectors required for gene therapies CIMmultus® 20x Higher productivity compared to classical column chromatogra
Slide 12: A strong lever of impact on green aspects: Our customers' operations
A strong lever of impact on green aspects: Our customers‘ operations Global GHG emissions in CO2 Of these related to the Attributable emissions of equivalents in 20211 healthcare sector2 Sartorius3 make up >50 billion tons ~4-5% ~0.025% 1 UN Environment Programme „Emissions Gap Report 2022“, prelimi
Slide 13: SU technologies help to reduce water and energy consumption at customers' sites
SU technologies help to reduce water and energy consumption at the customers’ sites Water consumption1 Energy consumption1 ~ -30% ~ -30% Celsius® FFT Freeze Maxicaps® Sartopore® Flexsafe® Linkit® AX & Thaw Solutions Sterile filter Platinum 1 Based on data from Flanagan et al (2011). LCA of a mAb pro
Slide 14: Process intensification leads to higher efficiency and less eco impact
Process intensification leads to higher efficiency and less eco impact Process Mass Intensification1 -50% Total raw materials, consumables and water (kg) Resolute® BioSMB Biostat® STR Bioreactors Ambr® 250HT Perfusion PMI = Product (kg) 1 Data from in-house case study: 300 kg/year and 1,500 kg/year
Slide 15: Data analytics solutions support customers in further CO2 reduction
Data analytics solutions support customers in further CO2 reduction Success Story Implementation of Umetrics® Suite data analytics tools at Michigan University helps increase process efficiency and reduces carbon footprint significantly Phase 1 | Phase 2 | prevented aims to prevent 780 10,000 tons C
Slide 16: Agenda
Agenda Overview | Mission Green sustainability Social responsibility Governance 16
Slide 17: Sartorius' environmental fields of action at its own operations
Sartorius' environmental fields of action at its own operations Climate Materials & Water & Supply Action Circularity Effluents Networks m 17
Slide 18: Only a small portion of emissions under own control
Only a small portion of emissions under own control Direct emissions Scope 1 from sources for which we are responsible, such as our manufacturing processes or company vehicles. ~10% Indirect emissions of total emissions Scope 2 from purchased electricity, steam, heating and cooling at our 60+ sites
Slide 19: Ambitious mid- and long-term climate targets
Ambitious mid- and long-term climate targets g CO2eq/€ 2030 mid-term targets 2045 long-term target 308 ~ -70% ~10% p.a. on average reduction of CO2eq emission intensity 272 Net-zero emissions Zero avoidable* emissions in Scopes 1 and 2 Decarbonization of the entire supply chain in collaboration 100%
Slide 20: Additional sustainability target: Climate neutral by 2045
Additional sustainability target: Climate neutral by 2045 Long-term target complements existing climate strategy ▪ Decarbonization in collaboration with suppliers and customers ▪ 100% electricity from renewable sources by 2030 ▪ Electricity from hydropower at German sites in Göttingen, Guxhagen and
Slide 21: CO2 reduction levers across the value chain
CO2 reduction levers across the value chain Upstream Production Downstream (Scope 3) Scope 1&2 (Scope 3) Other (capital goods, Purchased Upstream incl. Business Manufacturing Down-stream Product use & employee commuting, goods & services int. transportation travel & warehousing transportation end of
Slide 22: Expanding renewable energy capacity at Sartorius' sites worldwide
Expanding renewable energy capacity at Sartorius’ sites worldwide Royston, Stonehouse, UK Helsinki, Kajaani FI In % of group ~3 In % of group ~4 Renewable energy % 0 Renewable energy % ~52 North America Outlook >90% in 2027 Outlook 100% in 2030 In % of group ~4 Beijing, CN Renewable energy % ~2 In %
Slide 23: Flexsafe - first film designed for recycling
Flexsafe®- first film designed for recycling A milestone on the way to circularity ▪ From 20ml to 2,000l, Flexsafe® is the first film in the industry designed for recycling in a standard polyethylene waste stream ▪ Used in bioprocessing for non-hazardous applications, it can technically be recycled
Slide 24: Materials and circularity: Transitioning towards a circular economy
Materials and circularity: Transitioning towards a circular economy Our ambitions 2030 Circularity targets We aim to optimize the selection and use of materials to improve our products’ environmental footprint. ▪ Optimize use of resources >75% ▪ Avoid packaging waste Sales revenue with products desi
Slide 25: Circular economy: New, medium-term goals defined
Circular economy: New, medium-term goals defined >75% of sales revenue with products designed according to circularity principles1 Durability Lifespan Reusability Repairability Demontage Recyclability 2030 Ability to return to biological cycle Other cycle-oriented optimization of the use of the prod
Slide 26: Current projects regarding the single-use technology life cycle
Current projects regarding the single-use technology life cycle Feedstock | Beginning of life Production Product usage Product end of life Resins Product Fossil Naphtha Crackers Packaging Resins Alternative Feedstock 1 Scrap PMI 4 Recycling Options 5 Reduction 3 Recycling Less Material 2 Program 26
Slide 27: Initiatives to improve waste management in Aubagne
Initiatives to improve waste management in Aubagne Enhanced film Reduced film Improved waste collection and sorting Increased waste recycling recyclability1 consumption Total Waste (t/1000 Units) Waste Processing -17% 0.97 17% 15% 12% 10% Landfill 0.89 4% 6% 26% 19% 0.63 Energy 0.52 84% 84% Recovery
Slide 28: Water and wastewater: Improve water efficiency in own operations
Water and wastewater: Improve water efficiency in own operations The ambitions ▪ Reduce use of drinking water, increase use of rainwater ▪ Decrease wastewater, increase water recycling Göttingen, GER ▪ Optimization of production cycles with solvents ▪ Distillation plant for almost closed solvent cyc
Slide 29: Solvent and water reuse at the Yauco plant
Solvent and water reuse at the Yauco plant 4 distillation columns Processing capacity: 16,500 kg/day of spent solvent (oldware) 3.9 million kg 11.9 million litres 90% recovery of oldware processed for reuse of water processed for reuse of 2-pyrrolidone (2P) from oldware 98% recovery of Isopropanol (
Slide 30: Supply chain due diligence act: Risk assessment
Supply chain due diligence act: Risk assessment Hard facts risk assessment Soft facts risk assessment Actions with supplier If high risk If high risk 3rd party Code of Sustainability Commitment Member Improvement Country risks Certificates Sustainability assessment Conduct report/strategy to SDGs ac
Slide 31: Agenda
Agenda Overview | Mission Green sustainability Social responsibility Governance 31
Slide 32: Strong increase in personnel over 5 years: 62% more employees
Strong increase in personnel over 5 years: 62% more employees After strong team growth, current focus on efficiency Many opportunities to grow with the company ~1,400 new jobs per year Less than 2 years 15,942 55% in the company 13,832 14,614 10,637 69% 9,036 of management 2019 2020 2021 2022 2023 p
Slide 33: An increasingly diverse team that brings in a variety of perspectives
An increasingly diverse team that brings in a variety of perspectives International workforce Balanced age structure Share of women at a high level ≤29 years 16% Share of women in 113 Nationalities 39% the entire workforce 30-39 years 38% Share of women at 1st and 70% Non-German managers 40-49 years
Slide 34: High employee satisfaction reflected internally and externally
High employee satisfaction reflected internally and externally 87% 77% 82% say they contribute to are proud to work agree that Sartorius respects the company's mission for Sartorius and strengthens diversity 3.6 4.0 Intern. competitors ∅ 3.7 DAX40 ∅ 3.8 As of Q1 2024 34
Slide 35: Promoting science, education and innovation – also beyond our walls
Promoting science, education and innovation – also beyond our walls Cell Culture Facility at Penn State | Life Science Factory | LifeScienceXplained | Supporting groundbreaking Promoting startups and attract Creating a stage for science research with $1.5 million entrepreneurs in life sciences commu
Slide 36: Engaged in humanitarian aid and disaster relief globally
Engaged in humanitarian aid and disaster relief globally action medeor provides medical care to humanitarian organizations and health centers all over the world. Our latest commitments include ▪ Support for earthquake victims of in Türkiye and Syria ▪ Humanitarian aid for the people of Ukraine ▪ Hea
Slide 37: Agenda
Agenda Overview | Mission Green sustainability Social responsibility Governance 37
Slide 38: Sartorius actively manages its sustainability impacts, risks and opportunities
Sartorius actively manages its sustainability impacts, risks and opportunities at its own operations Existing and upcoming Annual management process EU regulation Corporate Sustainability 1 2 3 Due Diligence Directive (CSDDD) Identify Assess Define measures / relevant topics material IRO action plan
Slide 39: Multiple data points to be consistently tracked
Multiple data points to be consistently tracked consistently Reporting topics Challenges Climate Water ▪ > 80 disclosure requirements ▪ > 1.000 data points Pollution Biodiversity ▪ 17 GHG emission categories Own ▪ Data from multiple sources Resources workforce ▪ Concepts for data calculation and est
Slide 40: Alignment of 2023 turnover & expenditures with EU taxonomy
Alignment of 2023 turnover & expenditures with EU taxonomy Total sales revenues in %1 Total CapEx in % Total OpEx in % 5 2 22 39 40 61 58 73 Not Taxonomy-eligible Not Taxonomy-eligible Not Taxonomy-eligible Taxonomy-eligible but not aligned Taxonomy-eligible but not aligned Taxonomy-eligible but not
Slide 41: Sustainability ratings and partnerships
Sartorius Group Sustainability ratings and partnerships Listed in Memberships and cooperation in internationally renowned initiatives and platforms Sustainability ratings AA Silver Low risk C 41
Slide 42: Sartorius legal structure
Sartorius legal structure Sartorius Group legal setup Sartorius AG (~69.0m shares) Ordinary shares (~34.2m shares) Preference shares (~34.8m shares) Stock market listed in Germany1 ~55% Administered by executor ~72% Free float ~38% Bio-Rad Laboratories ~28% Bio-Rad Laboratories ~7% Free float ~71.5%
Slide 43: Executive Board of Sartorius AG
Sartorius Group Executive Board of Sartorius AG Joachim Kreuzburg, CEO René Fáber Alexandra Gatzemeyer Florian Funck, CFO Joined Sartorius in 1999 Joined Sartorius in 2002 Joined Sartorius in 2005 Joined Sartorius in 2024 Member of the Board since 2002 Member of the Board since 2019 Member of the Bo
Slide 44: Two-tier Board system of Sartorius AG – Supervisory Board and its committees
Two-tier Board system of Sartorius AG – Supervisory Board and its committees ▪ Twelve members, half of the members are shareholders` representatives and half are employees’ representatives Executive Task Committee Nomination Committee Dr. Lothar Kappich (Chairman) Dr. Daniela Favoccia Annette Becker
Slide 45: One-tier Board of Sartorius Stedim Biotech S.A. subgroup
One-tier Board of Sartorius Stedim Biotech S.A. subgroup Dr. Dr. René Romaine Pascale Susan Anne-Marie Lothar Henri Share of independent Joachim Fáber Fernandes Boissel Dexter Graffin Kappich Riey Kreuzburg Lead members CEO Employee Chairman represen- Independent . . . . tative Director Audit 75% .
Slide 46: ESG aspects included in Sartorius AG executive remuneration
ESG aspects included in Sartorius AG executive remuneration Remuneration Maximum bonus Maximum Structure of the remuneration components Further benefits components (in % of the target amount) remuneration Fixed Basic remuneration Fringe benefits 100% Compensation for Fixed remuneration + post-contra
Slide 47: Corporate responsibility & further financial information
Corporate responsibility & further financial information To Sartorius, sustainability means operating Please click below for further financial information: responsibly over the long term – with respect to business partners, employees and society as well as to natural resources. Learn more about our
Slide 48: Contacts and Financial calendar
Contacts and Financial calendar Petra Kirchhoff ▪ April 28, 2024 Head of Corporate Communications & IR Publication Q1 2024 Results +49.551.308.1686 petra.kirchhoff@sartorius.com ▪ May 16, 2024 Capital Markets Day | Goettingen Petra Müller Head of Investor Relations ▪ May 30, 2024 Kepler Cheuvreux ES
Slide 49: Disclaimer
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.