Sartorius AG · XETR:SRT

Sartorius — Sartorius Stedim Biotech — Q1 2020 Earnings Presentation

34 slides from Sartorius's earnings presentation, April 2020

1. Slide 1: Simplifying Progress – Investors Presentation Q1 2020 Results

   Simplifying Progress Sartorius Stedim Biotech Investors Presentation Q1 2020 Results

2. Slide 2: Disclaimer

   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 actual

3. Slide 3: Agenda

   Sartorius Stedim Biotech Agenda Overview | Strategy Mid-term Growth Prospects FY 2020 Guidance | Q1 2020 Results Appendix 3

4. Slide 4: A leading partner of the biopharma industry

   Sartorius Stedim Biotech A leading partner of the biopharma industry 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. 4 Overview | Strategy

5. Slide 5: Sartorius Stedim Biotech at a glance

   Sartorius Stedim Biotech Sartorius Stedim Biotech at a glance ~€1.4bn Four strong pillars drive above-average growth Sales revenue Pharma CAGR 4-7% ~15% market Sales CAGR1 2014-2019 Biopharma CAGR ~8% 29.3% market EBITDA margin2 Double-digit >20 Single-use growth countries, penetration headquartered

6. Slide 6: Covering most steps of the biopharma process chain

   Sartorius Stedim Biotech Covering most steps of the biopharma process chain  Production process design is inalterable for the lifetime of most drugs  Individually customized production process Culture media Seed Scale-up Fermentation required for all drugs preparation cultivation  Decisions for p

7. Slide 7: Strong market fundamentals

   Sartorius Stedim Biotech Strong market fundamentals Favorable 9bn people by 2050; demographics >2bn 60 yrs or older Rise of ~30% CAGR for biosimilar ~8% CAGR for biopharma biosimilars sales 2019–2022 market 2019–2025 Strong R&D pipeline; advances in gene and >40% share of biologics in cell therapy t

8. Slide 8: Sales revenue more than doubled over the last 6 years

   Sartorius Stedim Biotech Sales revenue more than doubled over the last 6 years Sales CAGR ~+14% +18.8% EBITDA-margin1 +8.4pp +13.7% €1.4bn 1600 33.0 +4.1% 32.0 1400 +20.4% 31.0 1200 +19.4% 30.0 +15.9% 29.0 29.3 28.0 +10.8% 1000 28.2 27.0 800 +10.3% 27.5 27.3 26.0 26.2 25.0 600 €477m 24.0 23.0 400 23

9. Slide 9: M&A strategy – adding innovation, enhancing focus

   Sartorius Stedim Biotech M&A strategy – adding innovation, enhancing focus 2013 2014 2015 2016 2017 2018 2019 2020 TAP AllPure Bio Cellca kSep Umetrics Biological Acquisition of Biosystems Technologies Outsource Industries selected assets from Danaher Portfolio: Complementary products or technologie

10. Slide 10: Acquisition of Biological Industries in Q4 2019

    Sartorius Stedim Biotech Acquisition of Biological Industries in Q4 2019  Developer and manufacturer of cell culture media  Specializes in media for advanced therapies (cell and gene therapies)  ~130 employees; headquartered in Beit Haemek, near Haifa (Israel)  2019 revenue €20m to €25m with hea

11. Slide 11: Acquisition of selected life science assets from Danaher

    Sartorius Stedim Biotech Acquisition of selected life science assets from Danaher  Portfolio of upstream and downstream technologies with a strong complementary fit, especially in chromatography/purification  Combined 2019 sales amounted to c. $100m with strong double-digit but slightly dilutive E

12. Slide 12: Leading positions in key technology platforms

    Sartorius Stedim Biotech Leading positions in key technology platforms Sartorius1 Merck | Danaher Thermo Top 3 Players Millipore Pall Cytiva2 Fisher 1. Merck | Millipore Filtration 2. Danaher | Pall 3. Sartorius 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Ferment

13. Slide 13: Leader in the growing single-use technology market

    Sartorius Stedim Biotech 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-contami

14. Slide 14: Limited dependence on individual accounts

    Sartorius Stedim Biotech Limited dependence on individual accounts Long-term business relationships with leading global Limited dependence on individual accounts (bio-) pharma companies Sales to Top 50 customers in 2019, € in millions 350 300 ~50% ~55% 250 ~45% ~35% 200 Cumulative 150 ~25% share 100

15. Slide 15: Agenda

    Sartorius Stedim Biotech Agenda Overview | Strategy Mid-term Growth Prospects FY 2020 Guidance | Q1 2020 Results Appendix 15

16. Slide 16: 2025 targets and initiatives

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

17. Slide 17: U.S. remains most important market; China with highest growth rates

    Sartorius Stedim Biotech U.S. remains most important market; China with highest growth rates Biologics market growth forecast CAGR 2019 to 2023, € in billions U.S. U.S. ~110 ~155 Europe ~+9% U.S. Europe ~48 ~61 China ~+6% Europe China ~35 ~€240bn ~€335bn ~62 ROW ~+15% China ROW ~47 ~57  Biologics m

18. Slide 18: Regional balance better reflecting end-markets

    Sartorius Stedim Biotech Regional balance better reflecting end-markets ~€477m CAGR ~€1.4bn ~€240bn 20% ~+16% 25% 27% 27% ~+18% Asia | Pacific 35% Americas 51% EMEA 53% ~+11% 40% 22% Sales 2011 by region Sales 2019 by region 2019 Global biopharma market 2011 2019 2019 CAGR for continued operations,

19. Slide 19: Biosimilars: Strong growth, big opportunities

    Sartorius Stedim Biotech 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 bu

20. Slide 20: The biopharma market is not yet mature, but is maturing

    Sartorius Stedim Biotech The biopharma market is not yet mature, but is maturing ... not mature because Cumulative investment and absolute survival rate in drug development  Underpenetrated global market >10+ years 100 1500  Strong flow of innovation Absolute survival  Time-consuming product 80 1

21. Slide 21: Digitalization is arriving in biopharma

    Sartorius Stedim Biotech Digitalization is arriving in biopharma Data Sartorius Stedim Biotech offers the leading software aggregation for bioprocess data analytics  Enhanced process control and robustness  Improved product quality  Predictive process control Process Monitoring optimization and c

22. Slide 22: Agenda

    Sartorius Stedim Biotech Agenda Overview | Strategy Mid-term Growth Prospects FY 2020 Guidance | Q1 2020 Results Appendix 22

23. Slide 23: Dynamic top-line growth; further margin increase

    Sartorius Stedim Biotech Dynamic top-line growth; further margin increase Sartorius Stedim Biotech Group Q1 2019 Q1 2020 in % in % cc1 in millions of € unless otherwise specified Sales revenue 342.9 422.1 +23.1 +22.3 Order intake 381.3 534.8 +40.3 +39.3 Underlying EBITDA2 98.1 126.7 +29.2 Underlying

24. Slide 24: Growth in all regions, Asia|Pacific with the highest dynamics

    Sartorius Stedim Biotech Growth in all regions, Asia|Pacific with the highest dynamics Americas EMEA Asia|Pacific Sales by Region € in millions € in millions € in millions in % +20.3% +19.0% +31.6% EMEA 167.6 ~ 40% Americas 140.6 ~ 36% 152.7 124.8 101.7 €422.1m 77.5 Asia|Pacific Q1 2019 Q1 2020 Q1 2

25. Slide 25: Operating cash flow increases

    Sartorius Stedim Biotech Operating cash flow increases Sartorius Stedim Biotech Group Q1 2019 Q1 2020 in % in millions of € unless otherwise specified Underlying EBITDA 98.1 126.7 +29.2  Net operating cash flow mostly driven by higher earnings and factoring of receivables in Extraordinary items -2.

26. Slide 26: Very solid balance sheet and financial position

    Sartorius Stedim Biotech Very solid balance sheet and financial position Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA 200 1.6 Dec. 31, Mar. 31, Sartorius Stedim Biotech 2019 2020 150 1.2 Equity ratio in % 64.7 65.7 100 0.8 Net debt in millions of € 107.7 46.2 50 0.4 Net debt |

27. Slide 27: Outlook for 2020, higher uncertainty than usual

    Sartorius Stedim Biotech Outlook for 2020, higher uncertainty than usual FY 2020 Guidance1 Previous New Sales revenue growth ~ 11% - 14% ~ 17% - 21% Underlying EBITDA ~ 29.5 ~ 30.0 margin CAPEX ratio ~ 8% ~ 8% 1 In constant currencies  Forecast includes life science portfolio from Danaher for appro

28. Slide 28: Agenda

    Sartorius Stedim Biotech Agenda Overview | Strategy Mid-term Growth Prospects FY 2020 Guidance | Q1 2020 Results Appendix 28

29. Slide 29: Sartorius Stedim Biotech shares – an attractive investment

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

30. Slide 30: Share price performance

    Sartorius Stedim Biotech Share price performance 450% 400% 350% 300% Sartorius (prefs.) 250% Sartorius (ord.) 200% Sartorius Stedim Biotech 150% NASDAQ Biotech 100% CAC Mid & Small 50% SBF 120 0% Mar-16 Mar-18 Mar-19 Mar-20 Jan-20 Mar-17 May-17 Jan-16 May-16 May-18 Jan-17 Jul-17 Jan-18 Jan-19 May-19

31. Slide 31: A sampling of the product portfolio

    Sartorius Stedim Biotech A sampling of the product portfolio Filtration Purification Fermentation Fluid management 31 Appendix

32. Slide 32: On track to meet 2020 targets

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

33. Slide 33: Financial calendar and contacts

    Sartorius Stedim Biotech Financial calendar and contacts  July 21, 2020 Petra Kirchhoff Publication Half-Year Report 2020 | Göttingen Head of Corporate Communications & IR  October 20, 2020 Phone: +49.551.308.1686 Publication Nine-Month Results 2020 | Göttingen E-mail: petra.kirchhoff@sartorius.co

34. Slide 34: Visit our IR website

    SARTORILS 4 Visit our IR website

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