Sartorius AG · XETR:SRT
Sartorius — ESG Presentation (May 2022)
44 slides from Sartorius's sustainability presentation, May 2022
Slide 1: Investors Presentation – ESG Focus | May 2022
Investors Presentation ESG Focus | May 2022
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.
Slide 3: Agenda
Agenda Overview | Strategy Climate Action Materials & Circularity Social Sustainability & Human Rights Governance 3
Slide 4: 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 ~18% Sales CAGR1 2011-2021 ~ €3.45bn 34.1% | +14.4pp EBITDA margin2 and chg. 2011-2021 €412m 60+ Locations, HQ in Göttingen, Germany Sales with life science ~35% cust
Slide 5: Sartorius' business activities contribute directly to more sustainability
Sartorius` business activities contribute directly to more sustainability 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. Good health and well-bei
Slide 6: Strategic focus of both divisions on life science and biopharma
Strategic focus of both divisions on life science and biopharma Lab Products & Services Division Bioprocess Solutions Division Cell line and process Upstream & Molecule development development downstream production Quality | Testing | Validation 6
Slide 7: Improving availability and affordability of biologics
Improving availability and affordability of biologics by offering solutions for efficient and accelerated discovery and manufacture Developing a new drug is time-consuming and costly; Sartorius’ solutions contribute to increasing quality, manufacturing is complex efficiency and productivity >€2bn av
Slide 8: Addressing customers' pain points and allowing them to bring drugs faster to market
Addressing customers’ pain points and allowing them to bring drugs faster to the market, at lower costs Customer needs Our solutions ▪ Increase efficiency and flexibility of production Process intensification ▪ Improve quality and affordability of innovative drugs Maximize overall productivity of th
Slide 9: ESG is integrated into the company DNA
ESG is integrated into the company DNA „To Sartorius, sustainability means operating responsibly over the long term – with respect to business partners, employees and society as well as to natural resources. Sustainability is one of our three corporate values.“ Joachim Kreuzburg, CEO Sustainability
Slide 10: Long-term value creation by focusing on four material topics
Long-term value creation by focusing on four topics that are material for our business activities Environmental 1 ▪ Advance innovation, contribute to medical progress performance ▪ Protect the environment by reducing emissions, waste and water use 2 ▪ Assuming responsibility for our products through
Slide 11: Innovation is key to achieving ESG targets; three pillars
Innovation is key to achieving ESG targets; innovation strategy is based on three pillars Constantly accelerating speed of innovation in Research activities in future key technologies and biotech and life sciences application areas Specialized product development 1 in areas of strong own core compet
Slide 12: Intensified ESG efforts on all levels; first climate targets set
Intensified ESG efforts on all levels; first climate targets set Implementation of environmental First non-financial Group statement; Climate Strategy, Plastics Initiative, Sartorius sets target to reduce management system; first environmental audited with limited assurance Sustainable supply chain
Slide 13: Sartorius sustainability focus areas
Sartorius sustainability focus areas Holistic steering and reporting Climate action Materials & circularity Water & effluents Social responsibility Governance CO2 footprint, compliance, Eco-design of products and Reach / ROCE, water Health & safety, labour cond., Governance, remuneration, regulation
Slide 14: Select sustainability ratings and index memberships
Select sustainability ratings and index memberships Sartorius is listed in the Sartorius receives good sustainability ratings, e.g. Silver B A Low risk 14
Slide 15: Agenda
Agenda Overview | Strategy Climate Action Materials & Circularity Social Sustainability Governance 15
Slide 16: ~4.5% of global emissions stem from health care, ~0.02% from Sartorius
~4.5% of global emissions stem from health care, thereof ~0.02% from Sartorius Global CO2 emissions (2019) Other 14% Transportation 16% Waste 3% Health Care & Life Sciences* 4.5% Thereof Sartorius: 450 kilotons (~0.02%) ~50,000 mio Buildings 18% tons CO2 Agriculture 20% Other Industries 24.5% * Heal
Slide 17: Only ~10% of emissions are produced by own operations
Only ~10% of Sartorius` emissions are produced by own operations; a total of ~50% can be influenced ~10% of emissions directly from Sartorius operations and energy from the grid ~90% of emissions from the value chain ~50% of overall emissions can be influenced by Sartorius to different degrees 17
Slide 18: Ambitious climate targets to reduce CO2 emission intensity until 2030
Ambitious climate targets to reduce CO2 emission intensity until 2030; implemented as new non-financial KPI CO2 emission intensity ▪ Ambitious targets also compared to other initiatives: EU`s “Fit Emissions in proportion to sales (g CO2/€) for 55” program: ~8.5% p.a.; Science Based Targets: ~7.0% p.
Slide 19: Overview of levers across the value chain
Overview of levers across the value chain Upstream Production Downstream (Scope 3) Scope 1&2 (Scope 3) Purchased Purchased Inbound Business Manufacturing, Internal & End of life Product use Other goods & goods & services trans- travel assembly & outbound (capital goods, employee services (other mate
Slide 20: Various initiatives for reduction of CO2 emission intensity started
Various initiatives for reduction of CO2 emission intensity started Purchased goods Business travel Production Transport & Logistic Product usage (~10%) Supplier selection Reduction of travel Energy efficiency Route planning Eco-design Choice of Material Sustainable travel Scrap reduction Fright mod
Slide 21: Agenda
Agenda Overview | Strategy Climate Action Materials & Circularity Social Sustainability & Human Rights Governance 21
Slide 22: Sterile single-use products account for the majority of revenues
Sterile single-use products account for the majority of revenues Single-use products Equipment ~70% ~30% ▪ Extensively used in the life sciene industry ▪ Equipment typically used for many years or Sales by category even decades ▪ Primary raw materials are polymers and plastics ▪ Extensive maintenanc
Slide 23: Single-use products offer key benefits including a better eco-footprint
Single-use products offer key benefits including a better eco-footprint Sustainability aspects of single-use bioprocessing Single use technologies improve ▪ Lower consumption of water and energy compared to stainless-steel alternatives accessibility and affordability of biologics ▪ Enable better eco
Slide 24: Production of biologics is complex and expensive; single-use technologies used
Production of biologics is complex and expensive; single-use technologies are used throughout the process to increase efficiency Continuous development and implementation of innovation to improve ecological and economic performance: Culture media Seed Scale-up Fermentation preparation cultivation ▪
Slide 25: Initiatives to improve material efficiency along the product life cycle
Initiatives to improve material efficiency along the product life cycle Polymers Plastics Products and Usage ▪ Eco-design of products & packaging Polyethylene Polymers & packaging Upstream & Polypropylene additives Bags, filters, downstream ▪ Reduce absolute amount of plastic Polyamide … transfer se
Slide 26: Complementary approaches decrease fossil resources depletion
Complementary approaches do decrease fossil resources depletion Use Upstream & Downstream Energy input Products and packaging Feedstock Plastic Bags, filters, transfer sets Oil is the most used Polymers & Additives Post-use management source of carbon today Polymers Polyethylene (Trade names) Existi
Slide 27: Examples – recycling in Aubagne and packaging design
Examples – recycling in Aubagne and packaging design Rethink packaging to recycle plastic and reduce weight and complexity ▪ Easy-to-separate cardboard Film mandrels, pallets, roll supports Packaging Film trimming boxes and foam materials ▪ Reduction of packaging weight ▪ Optimization of logistics d
Slide 28: Agenda
Agenda Overview | Strategy Climate Action Materials & Circularity Social Sustainability & Human Rights Governance 28
Slide 29: Creating new jobs and retaining employees is key of the social dimension
Creating new jobs and retaining employees is key of the social dimension Strong growth in workforce Mix of experience and fresh ideas Low fluctuation rate; promoting Number of employees Length of employment continuous development ~1,600 additional jobs ~15% created on avg. per year More than 15 year
Slide 30: Sartorius promotes diversity uniting people from 110 countries
Sartorius promotes diversity uniting people from 110 countries Top 10 nationalities – Share and number of staff 110 Nationalities in the group Germany 31% 4,286 U.S. 12% 1,635 France 10% 1,362 Nationalities at 64 Göttingen HQ China 6% 854 UK 6% 853 Puerto… 6% 803 3 Nationalities on the four- member
Slide 31: Supporting participation of women at all levels
Supporting participation of women at all levels 61% 39% 59% 41% 68% 32% 56% 44% All staff New hires All management Management below Women Men the Board level 19 14 Women 32 22 42 36 in % 50 50 45 41 66% 34% Men 81 86 in % 68 78 58 64 50 50 55 59 Promotions Germany U.S. France India China Employees M
Slide 32: Employee satisfaction measured biannually
Employee satisfaction measured biannualy ▪ Groupwide biannual employee survey, focusing on leadership, employee experience, and workplace & culture 83% enjoy working for Sartorius ▪ Overall participation rate of ~70% ▪ Results used to initiate improvements across all teams and levels ▪ Employee Net
Slide 33: High relevance of the supply chains' ESG performance
High relevance of the supply chains’ ESG performance Targets Management approach Performance in 2021 Ensure and support improvement of supplier Different lenses, multiple steps, ESG performance: reduce environmental involvement of external expertise footprint; uphold human rights Assessments from Ec
Slide 34: Agenda
Agenda Overview | Strategy Climate Action Materials & Circularity Social Sustainability & Human Rights Governance 34
Slide 35: Sartorius legal & operational structure
Sartorius legal & operational structure 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% Free float ~74% 100% Sartorius
Slide 36: Two-tier Board system – Executive Board
Two-tier Board system of Sartorius AG - Executive Board 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 B
Slide 37: Two-tier Board system – Supervisory Board and its committees
Two-tier Board system of Sartorius AG – Supervisory Board and its committees ▪ Consists of twelve members, half of the members are shareholders` representatives and half are employees’ representatives ▪ Of the shareholders` representatives only Lothar Kappich, who acts as chairman of the Board, is d
Slide 38: One-tier Board system of Sartorius Stedim Biotech S.A.
One-tier Board system of Sartorius Stedim Biotech S.A. - Board of Directors and its committees Joachim Christelle Pascale Susan René Anne-Marie Lothar Henri Share of independent Kreuzburg Baudère Boissel Dexter Fáber Graffin Kappich Riey . . . . members Audit Committee 75% Remuneration & . . . . 75%
Slide 39: Remuneration system of the Executive Board
Remuneration system of the Executive Board Remuneration Maximum bonus Structure of the remuneration components Maximum remuneration Further benefits components (in % of the target amount) Fixed remuneration Basic remuneration + Fringe benefits 100% Compensation for post- Fixed contractual Retirement
Slide 40: Responsible management and long-term value creation
Responsible management and long-term value creation Holistic steering and reporting ▪ Sustainability aspects are structurally anchored in the corporate organization ▪ A combination of policies, processes, KPIs and certifications ensure that they are implemented and that we continuously improve Envir
Slide 41: 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
Slide 42: Further ESG and financial information
Further ESG and financial information SRI Presentation GRI Report 2020 Please click below for further financial information: Earnings Release Q1 2022 Annual Report 2021 Earnings Release 9M 2021 Half-Year Report H1 2021 42 Appendix
Slide 43: Contacts and Financial calendar
Contacts and Financial calendar Petra Kirchhoff ▪ July 21, 2022 Head of Corporate Communications & IR Publication first-half 2022 Results | Göttingen +49.551.308.1686 petra.kirchhoff@sartorius.com ▪ October 19, 2022 Publication nine-months 2022 Results | Göttingen Petra Müller Head of Investor Relat
Slide 44: Scan or click here to visit our IR website
Scan or click here to visit our IR website.