Sartorius AG · XETR:SRT

Sartorius — Investor Presentation (July 2022)

61 slides from Sartorius's investor presentation, July 2022

1. Slide 1: Simplifying Progress – Investors Presentation

   Simplifying Progress Investors Presentation July 2022

2. Slide 2: 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.

3. Slide 3: Agenda

   Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division H1 2022 Results | FY 2022 Guidance 3

4. Slide 4: Partner of biopharmaceutical research and industry

   Partner of biopharmaceutical research and industry Our mission We empower scientists and engineers to simplify and accelerate progress in Good health and well-being at life science and bioprocessing, enabling the focus of Sartorius‘ the development of new and better therapies business activities and

5. Slide 5: Sartorius at a glance

   Sartorius at a glance ~€3.45bn High exposure to attractive biopharma and life science industry Sales revenue 2021 Group sales revenue ~22% Sales CAGR1 2016-2021 ~ €3.45bn 34.1% EBITDA margin2 2021 €412m 60+ Locations worldwide, HQ in Göttingen, Germany Sales with life science ~35% customers ~85% ~15

6. Slide 6: Strategic focus of both divisions on the biopharma value chain

   Strategic focus of both divisions on the biopharma value chain Bioprocess Solutions Division Molecule Cell line and Upstream & development process development downstream production Quality | Testing | Validation Lab Products & Services Division 6

7. Slide 7: Attractive market environment offers strong growth opportunities

   Attractive market environment offers strong growth opportunities Growing and aging population Biologics are gaining importance2 9 billion people by 20501 World population over age 60 in 2050 Sales share of biologics in 2026 >2bn ~37% ~10% CAGR biopharma market 2021 – 2026 World population over 60 in

8. Slide 8: Sustainable profitable growth

   Sustainable profitable growth +49.3% 3900 Sales CAGR ~18% 39.5 EBITDA1 margin +14.4pp +30.2% ~€3.45bn 3700 3500 37.5 +14.8% 3300 35.5 3100 2900 +13.2% 33.5 2700 +9.3% 34.1 +18.2% 2500 31.5 +16.0% 2300 29.5 2100 1900 +12.6% 29.6 27.5 1700 +8.8% ~€1.30bn 27.1 25.5 +13.6% 1500 25.1 25.9 1300 25.0 23.5

9. Slide 9: The U.S. and Asia are a focus of the regional growth strategy

   The U.S. and Asia are a focus of the regional growth strategy Sales development by region Sales share 2021 | CAGR 2011-2021 Markets  U.S.: Highly innovative market, further potential for market share gains Asia | Pacific  Asia: Strong growth in China, Korea and other countries ~26% | ~22%  China

10. Slide 10: Capacity expansion to accompany strong organic growth

    Capacity expansion to accompany strong organic growth France Finland CAPEX Aubagne Kajaani, Helsinki China in millions of €; ratio in % 100 600 Lourdes Beijing USA 90 500 400 Marlborough 80 70 Ann Arbor South Korea 400 60 50 238 226 240 300 Songdo Germany 40 15.2 12.3 ~14 200 10.3 11.8 30 20 Götting

11. Slide 11: M&A strategy – adding innovation, enhancing focus

    M&A strategy – adding innovation, enhancing focus Essen Life Science assets Intellicyt ViroCyt BioScience from Danaher ALS 2016 2017 2019 2020 2021 2022 kSep Umetrics Biological BIA WaterSep CellGenix Xell Chromatography Industries Separations assets from Novasep Portfolio: Complementary products or

12. Slide 12: Recent acquisitions strengthen both divisions in key areas

    Recent acquisitions strengthen both divisions in key areas Bioanalytics Downstream processing Cell and gene therapies Solutions for automated analysis, selection Chromatography systems for smaller Cell culture media and components for the and isolation of cells with numerous biomolecules and innovat

13. Slide 13: Ambitious climate targets to reduce CO2 emission intensity until 2030

    Ambitious climate targets to reduce CO2 emission intensity until 2030 CO2 emission intensity  Ambitious targets also compared to other initiatives Emissions in proportion to sales (g CO2/€)  Gross reduction of emissions is first priority; additional compensation measures may be defined at a later

14. Slide 14: Sartorius 2025 ambition

    Sartorius 2025 ambition BPS LPS Sartorius Group Sales revenue ~€3.8bn ~€1.2bn ~€5bn EBITDA margin ~36% ~28% ~34% Margin targets for each division and the Group include expenses for reduction of CO2 emission intensity of around 1% of sales. 2025 targets are based on 2020 currency exchange rates; EBIT

15. Slide 15: Sales revenue targets need to be considered over a multi-year period

    Sales revenue targets need to be considered over a multi-year period Sales CAGRs ~18%  Projected CAGR 2019-25 well above previous periods and above initial expectations  Extraordinary growth from 2019 to 2021 even incl. Corona ~37% ~10% excluding Corona effects significantly exceeds excl. Corona ~

16. Slide 16: Agenda

    Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division H1 2022 Results | FY 2022 Guidance 16

17. Slide 17: Snapshot of the Bioprocess Solutions Division

    Snapshot of the Bioprocess Solutions Division Total solution provider for biomanufacturing Track record of dynamic growth Sales revenue, € in millions; EBITDA margin1 in % 3000 23.7% 2,727.0 40 CAGR 2000 975.0 35 36.2 1000 28.0 30 0 25 2016 2021 Global footprint High share of recurring revenues Divi

18. Slide 18: Generating revenue throughout the lifecycle of a biopharma drug

    Generating revenue throughout the lifecycle of a biopharma drug Preclinical Clinical Commercial Stage (1 year) (4-7 years) (15+ years) Scale Process development Proof of concept - pilot Large  Wide product range of equipment and consumables for all stages (from pre-commercial to large-scale manufac

19. Slide 19: Covering most steps of the biopharmaceutical manufacturing process

    Covering most steps of the biopharmaceutical manufacturing process  Differentiated by the range and completeness of the Culture media Seed Scale-up Production portfolio preparation cultivation  Excellent positioning in key single-use technologies UPSTREAM  Internationally recognized DOWNSTREAM su

20. Slide 20: Integrated services and technologies for all types of biopharmaceuticals

    Integrated services and technologies for all types of biopharmaceuticals  ~ 95% of BPS revenue generated with mAbs Regenerative bio/pharma customers medicine  Antibodies are most relevant; strong position in vaccines as well Vaccines  BPS provides solutions for the development and production of a

21. Slide 21: The market landscape is dynamic across therapy modalities

    The market landscape is dynamic across therapy modalities Protein-based therapies Viral-based therapies Advanced therapies 65% 20% 15%  mAbs  Viral vectors for gene therapy  Cell therapy (e.g., iPSC, MSC)  Bi-/Multi-specifics  Virus and viral vector vaccines  Gene-modified cell therapy  Bioco

22. Slide 22: Competitive portfolio across our relevant end-markets

    Competitive portfolio across our relevant end-markets Sartorius Merck | Danaher Thermo Top 3 Players Millipore Pall Cytiva1 Fisher 1./2./3. Merck | Millipore Filtration 1./2./3. Danaher | Pall 1./2./3. Sartorius 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Ferment

23. Slide 23: CellGenix – Extending our cell culture media offering

    CellGenix – Extending our cell culture media offering Freiburg, Germany Portfolio ~70 employees  Critical cell culture components for advanced therapies  Portfolio includes cytokines and growth factors, cell culture media, GMP manufacturing and R&D laboratories supplements and cells Acquired July

24. Slide 24: Xell – Another building block to establish a strong media business

    Xell – Another building block to establish a strong media business Bielefeld, Germany Portfolio ~35 employees  Media and feed supplements for cell cultures; focus on viral vectors that are used in gene therapeutics and vaccines Major state-of-the-art capacity  Analytical services for characterizin

25. Slide 25: Acquisition of Novasep's chromatography division strengthens the downstream offering

    Acquisition of Novasep’s chromatography division strengthens the downstream offering Pompey, France Portfolio ~100 employees  Chromatography systems primarily suited for smaller biomolecules, such as oligonucleotides, peptides, and insulin, as well as innovative 40m revenue in 2020, systems for con

26. Slide 26: 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 U.S. CAGR U.S. ~119 ~167 Europe ~9% U.S. Europe ~46 ~58 China ~6% Europe China ~38 ~€250bn ~€365bn ~67 ROW ~15% China ROW ~47 ~72 2020 2024 26

27. Slide 27: The Chinese market is in the next development phase

    The Chinese market is in the next development phase Dynamic increase in new Increasingly focusing on innovative medicines biopharma companies Innovation 2.0 300 China’s activity as a percentage of global activity Biologics innovators, indication expansion, technology modification 240 Now Innovation

28. Slide 28: Biosimilars: Strong growth, big opportunities

    Biosimilars: Strong growth, big opportunities  Major blockbuster biologics are going off-patent  Time-to-market is key as only the first providers are most likely profitable  Several approvals in Asia and Europe; U.S. at the beginning  For now, relatively small market but with strong growth  Si

29. Slide 29: Pioneer and leader in the growing single-use technology market

    Pioneer and leader in the growing single-use technology market Single-use market penetration expected to increase from ~35% to ~75% Single-use products offer advantages over conventional stainless-steel devices  Capex|Opex reduction over entire lifecycle  Reduced risk of cross-contamination  High

30. Slide 30: Single-use allows manufacturers to mitigate investment risks

    Single-use allows manufacturers to mitigate investment risks  Construction of stainless-steel based facilities takes longer and is more complex compared to single-use  Therefore, investment in stainless-steel facilities has to start in early clinical phase II  The construction of single-use facil

31. Slide 31: Analytical technologies to improve process economics and safety

    Analytical technologies to improve process economics and safety  Bioprocess sensors, analyzers and software  Collect, monitor and control quality-critical parameters  Analyze data to obtain a better process understanding  Use knowledge for process development, optimization and automation  Allow

32. Slide 32: High innovation dynamics in Biopharma

    High innovation dynamics in Biopharma Development of new Increased efficiency New tools and Future drug drugs and vaccines possible in the methods required manufacturing is must be accelerated, production of 'classic' e.g. for novel cell and more automated, e.g. through more biopharmaceuticals gene

33. Slide 33: Limited dependence on individual accounts

    Limited dependence on individual accounts Long-term business relationships with leading Limited dependence on individual accounts global (bio-) pharma companies Sales to Top 50 customers in 2021, € in millions 700 600 ~52% ~57% ~47% 500 ~38% 400 ~26% 300 Cumulative 200 share 100 0 Top 10 11 to 20 21

34. Slide 34: Four strong pillars drive above-average growth

    Four strong pillars drive above-average growth Pharma market CAGR 3-6% ~21% Organic CAGR 1 Biopharma CAGR ~10% market Single-use Double-digit penetration growth Market Esp. in North share gains America 2014 2015 2016 2017 2018 2019 2020 2021 1 CAGR 2014 to 2021, excluding FX effects and acquisitions

35. Slide 35: Agenda

    Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division H1 2022 Results | FY 2022 Guidance 35

36. Slide 36: Snapshot of the Lab Products & Services Division

    Snapshot of the Lab Products & Services Division Premium vendor for laboratories Division in transition to a new growth and profitability profile Sales revenue, € in millions; EBITDA margin1 in % Build-up of CAGR bioanalytics portfolio 17.6% 600 30 since800 2016 550 722.2 29 28 700 26.1 27 500 CAGR

37. Slide 37: Portfolio includes lab essentials and bioanalytical instruments

    Portfolio includes lab essentials and bioanalytical instruments; increased focus on life science end-market Life Science Research sales Applied Research sales ~55% ~45%  Lab balances, pipettes, lab water systems  Lab balances, pipettes, lab water systems and filtration for bio/pharma QC/QA and fil

38. Slide 38: Strong market position in essential laboratory product categories

    Strong market position in essential laboratory product categories  Average global market share of >10%  High gross margins offer potential for economies of scale  Growth potential especially in the U.S. and Asia  Market growth related to R&D spending in the individual end markets Lab balances Mi

39. Slide 39: Bioanalytical tools to address pain points of our customers

    Bioanalytical tools to address pain points of our customers Drug discovery Preclinical Clinical trials Drug approval Our approach testing  Facilitate digitalization 4-5 years 1 year 4-7 years 1-2 years and automatization  Decrease likelihood of failure  Reduce time and costs in molecule developme

40. Slide 40: Overview of bioanalytical portfolio

    Overview of bioanalytical portfolio Solutions for cell analysis Competitive environment  IncuCyte: Real-time imaging and analysis of living cells  Beckman Coulter  Becton Dickinson  Bio-Rad  Cytiva  iQue Screener: Rapid, high content analysis of cells, beads and secreted proteins  Merck  Per

41. Slide 41: Solutions complement each other, optimize successive workflows

    Solutions complement each other, optimize successive workflows and have synergies with BPS products Application example: Molecule development Application example: Cell line development iQueScreener Octet Screening of antibody libraries Identify high-producing clones for target-reactive candidates in

42. Slide 42: Acquisition of Automated Lab Solutions expands LPS' bioanalytics offering

    Acquisition of Automated Lab Solutions expands LPS’ bioanalytics offering Jena, Germany Strategic rationale ~30 employees  Complementary technology for automated analysis, selection and isolation of cells High single-digit revenue, double-digit EBITDA margin  Improves access to life science custom

43. Slide 43: Since 2019, we have increased our overall addressable market

    Since 2019, we have increased our overall addressable market The addition of the Octet and CellSelector platforms, and specialty 2022 media, GMP cytokines and OEM ~€7.6bn diagnostic membranes has We now better serve attractive and increased our market opportunity growing customer segments with our a

44. Slide 44: Agenda

    Agenda Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division H1 2022 Results | FY 2022 Guidance 44

45. Slide 45: Strong sales growth, high margin maintained

    Strong sales growth, high margin maintained Sartorius Group H1 2021 H1 2022 in % in % cc1 in millions of € unless otherwise specified Sales revenue 1,629.2 2,060.3 +26.5 +20.9 Order intake 2,178.8 2,168.8 -0.5 -4.8 Underlying EBITDA2 555.3 697.5 +25.6 Underlying EBITDA2 margin in % 34.1 33.9 -0.2pp

46. Slide 46: Double-digit growth in all regions led by the Americas

    Double-digit growth in all regions led by the Americas Americas EMEA Asia|Pacific Sales by Region € in millions € in millions € in millions in % +27.6% +15.5% +21.2% EMEA ~ 39% Americas ~ 35% 793.4 726.1 682.5 540.9 519.0 427.6 €2,060.3m Asia|Pacific H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 ~

47. Slide 47: Bioprocess Solutions: Healthy growth and order situation

    Bioprocess Solutions: Healthy growth and order situation; pandemic- related demand below previous year Order Intake Sales Revenue Underlying EBITDA & Margin € in millions € in millions € in millions -8.9% cc +23.6% cc +27.2% -4.8% +29.3% 1,803.4 1,715.9 1,637.1 1,266.5 585.6 460.2 36.3% 35.8% H1 202

48. Slide 48: Lab Products & Services: Dynamic development

    Lab Products & Services: Dynamic development, especially in the Bioanalytics business and the U.S. Order Intake Sales Revenue Underlying EBITDA & Margin € in millions € in millions € in millions +15.0% cc +11.2% cc +17.7% +20.6% +16.7% 452.9 423.2 375.5 362.7 111.9 95.1 26.2% 26.4% H1 2021 H1 2022 H

49. Slide 49: Strong cash flow influenced by buildup of inventories

    Strong cash flow influenced by buildup of inventories Sartorius Group H1 2021 H1 2022 in % in millions of € unless otherwise specified Underlying EBITDA 555.3 697.5 +25.6  Cash flow influenced by higher inventories to Extraordinary items -10.9 -12.2 -11.4 support supply security Financial result -3

50. Slide 50: Robust financial indicators

    Robust financial indicators Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA Dec. 31, June 30, Sartorius Group 2,000 4.0 2021 2022 1,500 3.0 Equity ratio in % 30.2 35.9 1,000 2.0 Net debt in millions of € 1,732.7 1,878.9 500 1.0 0 0.0 Net debt | underlying 1.5 1.4 Q1-Q4 Q1-Q4 Q1-Q

51. Slide 51: Guidance 2022 confirmed

    Guidance 2022 confirmed: Double-digit sales growth, sustained high profitability; uncertainties remain high Guidance 20221 Sales revenue growth Underlying EBITDA margin Sartorius Group ~15% - 19% ~34% thereof from acquisitions ~2pp Bioprocess Solutions ~17% - 21% ~36% thereof from acquisitions ~2pp

52. Slide 52: Appendix

    Appendix 52

53. Slide 53: 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 Half-Year Report H1 2022 natural resourc

54. Slide 54: Sartorius shares – an attractive investment

    Sartorius shares – an attractive investment 2 1 3 Biopharma market Favorable market positions Global presence fueled by long-term in key technologies and with strong base in growth drivers high brand awareness growth regions High entry barriers, low price- Diversified revenue base Proven growth trac

55. Slide 55: Sartorius legal & operational structure

    Sartorius legal & operational structure Sartorius Group legal setup Sartorius AG (~68.4m shares) Ordinary shares (~34.2m shares) Preference shares (~34.2m shares) Stock market listed in Germany1 ~55% Administered by executor ~72% Free float ~38% Bio-Rad Laboratories ~28% Bio-Rad Laboratories ~7% Fre

56. Slide 56: Share price performance

    Share price performance 1000% 800% 600% Sartorius (pref.) Sartorius (ord.) 400% Sartorius Stedim Biotech DAX 200% MSCI Europe 0% Jan-19 Sep-19 Jan-20 Sep-20 Jan-21 Sep-21 Jan-22 May-19 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Mar-19 Mar-20 Mar-21 Mar-22 Jul-19 Jul-20 Jul-21 Jul-22 ISIN DE0007165631

57. Slide 57: A sampling of the Bioprocess Solutions' product portfolio

    A sampling of the Bioprocess Solutions’ product portfolio Filtration Purification Fermentation Fluid management 57

58. Slide 58: A sampling of the Lab Products and Services' product portfolio

    A sampling of the Lab Products and Services’ product portfolio Lab balances | Lab water systems Bioanalytics Lab filtration | Microb. analysis Pipettes 58

59. Slide 59: Executive Board of Sartorius AG

    Executive Board of Sartorius AG Joachim Kreuzburg, CEO René Fáber Rainer Lehmann, CFO Gerry Mackay Joined Sartorius in 1999 Joined Sartorius in 2002 Joined Sartorius in 2005 Joined Sartorius in 2015 Member of the Board since 2003 Member of the Board since 2019 Member of the Board since 2017 Member o

60. Slide 60: Contacts and financial calendar

    Contacts and financial calendar Petra Kirchhoff  October 19, 2022 Head of Corporate Communications & IR Publication nine-months 2022 Results | Göttingen +49.551.308.1686 petra.kirchhoff@sartorius.com Petra Müller Head of Investor Relations +49.551.308.6035 petra.mueller2@sartorius.com Mirko Koch Ma

61. Slide 61: Scan or click here to visit our IR website

    Scan or click here to visit our IR website.

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