Sartorius AG · XETR:SRT

Sartorius — Sartorius Stedim Biotech — Investor Presentation (March 2019)

34 slides from Sartorius's investor presentation, March 2019

1. Slide 1: Investors Presentation

   Investors Presentation March 2019

2. Slide 2: Disclaimer

   Disclaimer This presentation contains statements concerning Sartorius Stedim Biotech Group’s future performance. 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 materia

3. Slide 3: Agenda

   Agenda Overview and Strategy Mid-term Growth Prospects FY 2019 Guidance | FY 2018 Results Appendix

4. Slide 4: Sartorius Stedim Biotech at a glance

   Sartorius Stedim Biotech at a glance Industry A leading partner of the ~ €1.2bn focus biopharma industry Sales revenue Clear Making process development and production ~15% Clear mission Sales CAGR1) 2013-2018 mission processes of innovative biologics more efficient Attractive Biopharma market fueled

5. Slide 5: Covering most steps of the biopharma process chain

   Covering most steps of the biopharma process chain Upstream Culture media Seed cultivation Scale-up Fermentation preparation Downstream Final Cryopreservation Sterile Concentration Virus removal Polishing Viral Clarification & filling filtration filtration clearance Centrifugation  Production proce

6. Slide 6: Strong market fundamentals

   Strong market fundamentals Favorable Increasing Rise of Strong R&D pipeline; demographics healthcare spending biosimilars advances in gene and cell therapy 9bn +6.4% ~30% >40% People by 2050; CAGR worldwide CAGR for biosimilar Share of biologics in >2bn 60 yrs for prescription drug sales 2018–2022 p

7. Slide 7: Sales revenue more than doubled over the last 6 years

   Sales revenue more than doubled over the last 6 years Sales CAGR ~ +14% EBITDA1) margin +6.3pp +13.7% +4.1% 200 +20.4% €1.21bn 33.0 +19.4% 32.0 +15.9% 31.0 +10.8% 000 30.0 +10.3% 29.0 800 28.0 28.2 27.0 600 27.5 27.3 26.0 €477m 26.2 25.0 24.0 400 23.0 23.0 23.5 22.0 200 21.9 21.5 21.0 20.0 0 19.0 20

8. Slide 8: M&A strategy – adding innovation, enhancing focus

   M&A strategy – adding innovation, enhancing focus 2011 2019 Lonza Cell TAP Biosystems AllPure BioOutsource Cellca kSep Umetrics Culture Media Technologies Portfolio: Complementary products or technologies Acquisition criteria Market Position: Either among the Top 3 or unique selling point Integratio

9. Slide 9: Leading positions in key technology platforms

   Leading positions in key technology platforms Sartorius Merck | Danaher | Thermo GE Top 3 Players Millipore Pall2) 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. G

10. Slide 10: Leader in the growing single-use technology market

    Leader in the growing single-use technology market Single use products offer advantages over conventional stainless-steel devices  Capex|Opex reduction over entire lifecycle -25-35%  Reduced risk of cross-contamination -30-50%  Higher flexibility; advantageous for biosimilars -55-65% -65-75% Sing

11. Slide 11: Limited dependence on individual accounts

    Limited dependence on individual accounts Sales to Top 50 customers in 2018, € in millions 300 ~50% ~55% 60 250 ~45% ~35% Cumulative share 200 40 150 ~25% 100 20 50 0 0 Top 10 11 to 20 21 to 30 31 to 40 41 to 50 Long-term business relationships with Limited dependence on individual accounts leading

12. Slide 12: Agenda

    Agenda Overview and Strategy Mid-term Growth Prospects FY 2019 Guidance | FY 2018 Results Appendix 12

13. Slide 13: Sartorius 2025 targets and initiatives

    Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regional  Participate in strong Chinese market growth  Continue to outperform the important U.S. market ~ €2.8 bn 1 Portfolio Sales revenue  Add high-impact innovation, e.g. digital tools  Enhance process development capab

14. Slide 14: U.S. remains most important market; China with highest growth rates

    U.S. remains most important market; China with highest growth rates Biologics market growth forecast CAGR 2018 to 2022, € in billions U.S. U.S. ~ 100 ~ 142 Europe ~ +9% U.S. Europe ~ 44 ~ 56 China ~ +7% Europe China ~ 29 ~ €217bn ~ €300bn ~ 52 ROW ~ +16% China ROW ~ 44 ~ 50  Biologic market in Chin

15. Slide 15: Continuous market share gains in the Americas

    Continuous market share gains in the Americas Sales growth Americas Footprint Sales share America ~ +16% CAGR1) 2011-18 2018: 35% Bohemia 422.6 New Oxford 2011: 27% Mexico City Yauco 130.9 Production | Sales 2011 2018 Sales 1) In constant currencies Key initiatives:  U.S. sales organization establi

16. Slide 16: Business development in Asia in line with strong market growth

    Business development in Asia in line with strong market growth Sales growth Asia Footprint Sales share Asia|Pacific ~ +17% CAGR1) 2011-18 2018: 23% Beijing Seoul 281.3 Tokyo Shanghai 2011: 20% Hanoi Bangalore 95.1 Kuala Lumpur Singapore Production | Sales 2011 2018 Sales 1) In constant currencies Ke

17. Slide 17: Biosimilars: Strong growth, big opportunities

    Biosimilars: Strong growth, big opportunities Biosimilars will outperform the biologics market € in billions ~ +30% CAGR ~ 18 ~6  Major blockbuster biologics are going off patent  Lower prices will lead to higher production volumes ~ 282  Time-to-market is key as only the first few biosimilar pro

18. Slide 18: The biopharma market is not yet mature, but is maturing

    The biopharma market is not yet mature, but is maturing ... not mature because Cumulative investment and absolute  Underpenetrated global market survival rate in drug development Cumulative investmt (€ in millions) 100 1,500  Strong flow of innovation Absolute survival rate %  Time-consuming prod

19. Slide 19: Digitalization is arriving in biopharma

    Digitalization is arriving in biopharma Collect data Sartorius offers the leading software Improve Monitor & process control for bioprocess data analytics  Enhanced process control and robustness Analyze  Improved product quality  Predictive process control  Powerful solutions for modeling and o

20. Slide 20: Four strong pillars drive above-average growth

    Four strong pillars drive above-average growth Pharma market CAGR 4-7% ~ +11% Organic CAGR1) Biopharma market CAGR ~8% Single-use penetration Double-digit growth 0 2) Market share gains Esp. in North America 2013 2014 2015 2016 2017 2018 2019 1) CAGR 2013 to 2019e, excluding FX effects and acquisiti

21. Slide 21: Agenda

    Agenda Overview and Strategy Mid-term Growth Prospects FY 2019 Guidance | FY 2018 Results Appendix 21

22. Slide 22: Very dynamic profitable growth against moderate comps

    Very dynamic profitable growth against moderate comps Sartorius Stedim Biotech Group in millions of € unless otherwise specified FY 2017 FY 2018 in % in % cc 1) Sales revenue 1,081.0 1,212.2 +12.1 +13.7 Order intake 1,162.3 1,307.3 +12.5 +14.2 Underlying EBITDA2) 294.9 342.4 +16.1 Underlying EBITDA2

23. Slide 23: Growth in all regions, the Americas with highest momentum

    Growth in all regions, the Americas with highest momentum Americas EMEA Asia|Pacific Sales by Regions in € millions in € millions in € millions in % 508.2 460.7 422.6 368.8 EMEA ~ 42% 281.3 251.6 Americas ~ 35% €1,212.2m FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 +16.9% +10.7% +14.7% Asia|Pacific ~ 23% Acc

24. Slide 24: Significant increase in operating cash flow

    Significant increase in operating cash flow Sartorius Stedim Biotech Group € in millions unless otherwise specified FY 2017 FY 2018 in %  Net operating cash flow driven by higher earnings Underlying EBITDA 294.9 342.4 +16.1  Positive effect on extraordinary Extraordinary items -22.6 +12.7 +156.4 i

25. Slide 25: Financial position remains strong

    Financial position remains strong Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA Sartorius Stedim Biotech Dec. 31, 2017 Dec. 31, 2018 180 1.8 Equity ratio in % 62.6 66.5 150 1.5 120 1.2 Net debt in millions of € 127.1 125.7 90 0.9 60 0.6 Net debt | underlying EBITDA 0.4 0.4 30 0

26. Slide 26: Infrastructure prepared for further organic growth

    Infrastructure prepared for further organic growth CAPEX ratio CAPEX composition 2019 in % 14.6 14 12.6 ~11 ~X% Major projects 12 9.2 10 7.6 8 5.8 6.5 6.2 6 3% Regular expansion 4 2 2% Cap. R&D 0 20121) 2013 2012 20131 2014 2015 2016 2017 2018 2019 2) 3% Maintenance 1) Incl. discontinued operation 2

27. Slide 27: Outlook for 2019

    Outlook for 2019 FY 2018 FY 20191) Sales revenue growth 13.7%1) ~ 7% - 11% slightly more than Underlying EBITDA margin 28.2% + 1pp CAPEX ratio 14.6% ~ 11% 1) In constant currencies  Sales guidance includes dilution of 3pp sales growth due to the modification of the cell culture media agreement with

28. Slide 28: Appendix

    “3 sartorius stedim biotech Appendix

29. Slide 29: Sartorius shares – an attractive investment

    Sartorius shares – an attractive investment Biopharma market fueled by Leading market positions in Global presence with strong long-term growth drivers key technologies and high base in growth regions brand awareness High entry barriers, low price- Diversified revenue base and Proven growth track re

30. Slide 30: Share price performance

    Share price performance 300% 250% 200% Sartorius (prefs.) Sartorius (ord.) 150% Sartorius Stedim Biotech NASDAQ Biotech 100% CAC Mid & Small 50% SBF 120 0% Jul-16 Jul-17 Jul-18 May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 Jan-16 Mar-16 Sep-16 Jan-17 Mar-17 Sep-17 Jan-18 Mar-18 Sep-18 Jan-19 Mar-19 Shar

31. Slide 31: Strong worldwide presence

    Strong worldwide presence Rotterdam Vilvoorde Epsom Royston Malmö Helsinki Glasgow Dublin Goettingen Stonehouse Poznan Laupheim Guxhagen Tagelswangen Budapest Lourdes Vienna Bohemia Florence New Oxford Madrid Beijing Aubagne Seoul Tokyo M’ Hamdia Shanghai Mexico City Yauco Hanoi Bangalore Kuala Lump

32. Slide 32: Extract of the product portfolio

    Extract of the product portfolio Filtration Purification Fluid Management Fermentation & Cell Culture Media 32

33. Slide 33: On track to meet 2020 targets

    On track to meet 2020 targets Strategic Strategic initiatives Initiatives 2020 targets 2020 Targets Regional  Further grow sales force effectiveness ~ €1.5-1.6 bn  Gain share in North America Sales revenue  Leverage market growth in Asia Portfolio  Alliances and acquisitions ~ 4|5 ~ 1|5 Organic

34. Slide 34: Financial calendar and contacts

    Financial calendar and contacts  March 04, 2019 Petra Kirchhoff Metzler Roadshow | London Head of  March 05, 2019 Corporate Communications & IR Credit Suisse Healthcare Conf. | London Phone: +49.551.308.1686  March 12, 2019 E-mail: SocGen European ESG/SRI Conf. | Paris petra.kirchhoff@sartorius.c

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