Slide 1: Conference Call H1 2023 Results
Conference Call H1 2023 Results Joachim Kreuzburg, Rainer Lehmann, René Fáber Sartorius | Sartorius Stedim Biotech | July 21, 2023
Slide 2: H1 2023 overview
H1 2023 overview Temporary weak demand continued throughout Q2; customers signal re-ordering to start from late Q3 onwards Underlying EBITDA margin at robust level of ~30%; cost containment measures in place, managing delivery ability remains key Revised outlook 2023 confirmed Polyplus acqui
Slide 3: Agenda
Agenda Sartorius Group H1 2023 results | FY 2023 guidance Sartorius Stedim Biotech Group H1 2023 results | FY 2023 guidance Questions & Answers 3
Slide 4: Expected soft top line development; margin remains on robust level
Sartorius Group Expected soft top line development; margin remains on robust level Sartorius Group H1 2022 H1 2023 in % in % cc1 in millions of € unless otherwise specified Sales revenue 2,060 1,735 -15.8 -15.4 Order intake 2,169 1,450 -33.2 -32.7 Underlying EBITDA2 697 517 -25.9 Underlying EBITDA2
Slide 5: Navigating through volatility: Temporary decline in perspective
Sartorius Group Navigating through volatility: Temporary decline in perspective vs. H1 19 vs. H1 20 Sales revenue +94% +64% Order intake +49% +16% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Sales ex Covid Covid-19-related sales Order intake 5
Slide 6: All regions influenced by destocking and low investment activities
Sartorius Group All regions influenced by destocking and low investment activities Americas EMEA Asia|Pacific Sales by region € in millions € in millions € in millions in % -12.1% -15.7% -19.4% EMEA Americas 726 793 ~ 39% ~ 37% 646 669 541 421 €1,735m H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023
Slide 7: Temporary soft market environment for Bioprocess Solutions
Sartorius Group Temporary soft market environment for Bioprocess Solutions Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions -35.5% cc -17.4% cc -35.8% -17.8% -29.2% 1,716 1,637 1,346 1,102 700 586 90 600 80 500 414 70 400 60 300 35.8 50 200 30.8 40 100
Slide 8: Lab Products & Services with robust results in a challenging market
Sartorius Group Lab Products & Services with robust results in a challenging market Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions -22.4% cc -7.3% cc -23.2% -8.2% -8.7% 453 423 389 112 348 102 26.4% 26.3% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 202
Slide 9: Cash flow influenced by working capital development and CAPEX
Sartorius Group Cash flow influenced by working capital development and CAPEX Sartorius Group H1 2022 H1 2023 in % in millions of € unless otherwise specified Extraordinary items driven by acquisitions and Underlying EBITDA 697 517 -25.9 integrations, structuring measures and corporate projects Ex
Slide 10: Sound balance sheet and financial KPI
Sartorius Group Sound balance sheet and financial KPI Key financial indicators Net debt and net debt to underlying EBITDA Dec. 31, June 30, Sartorius Group 3,000 4.0 2022 2023 2,500 3.0 Equity ratio in % 38.1 38.4 2,000 1,500 2.0 1,000 Net debt in millions of € 2,375 2,611 1.0 500 0 0.0 Net debt | u
Slide 11: 2023 P&L outlook confirmed as revised in June
2023 P&L outlook confirmed as revised in June Guidance 20231 Sales revenue development (in %) Underlying EBITDA margin Sartorius Group Low to mid-teens decline ~30% excluding Covid-related business Mid- to high-single digit decline thereof from acquisitions ~2pp2 Bioprocess Solutions Low to mid-teen
Slide 12: Agenda
Agenda Sartorius Group H1 2023 results | FY 2023 guidance Sartorius Stedim Biotech Group H1 2023 results | FY 2023 guidance Questions & Answers 12
Slide 13: Polyplus acquisition closed
Sartorius Stedim Biotech Group Polyplus acquisition closed Portfolio Sales split Transfection reagents PEI Pro FectoVIR Plasmids HQ in Strasbourg, Transfection Plasmid design Plasmids France; sites in Plasmid production Other reagents Belgium, USA, China ~270 employees GMP manufacturing Other reagen
Slide 14: Unique combined portfolio for cell & gene therapies (CGT)
Sartorius Stedim Biotech Group Unique combined portfolio for cell & gene therapies (CGT) Up & downstream solutions Biological Albumedix Polyplus CellGenix Xell Industries Cell line development, Cell culture Growth factors Media and Recombinant Transfection plasmid design & media and cytokines supple
Slide 15: A high-growth, increasingly relevant market segment
Sartorius Stedim Biotech Group A high-growth, increasingly relevant market segment ~30% of biopharma pipeline is Number of commercial processes Strong growth projections focusing on CGTfor Polyplus` solutions 1 is expanding Sartorius` media andrapidly cell line CAGRs 2022–20263 transfection and plas
Slide 16: Financial transaction terms
Sartorius Stedim Biotech Group Financial transaction terms SSB | SAG slightly below | slightly above approx. Bridge €2.4bn financing 4 Net debt/underlying EBITDA Long-term deleveraging Purchase price Bridge loan facility at refinancing via bond <3.0 Sartorius AG level issuance intended on Sartorius
Slide 17: Expected soft top-line development; margin remains on robust level
Sartorius Stedim Biotech Group Expected soft top-line development; margin remains on robust level Sartorius Stedim Biotech Group H1 2022 H1 2023 in % in % cc1 in millions of € unless otherwise specified Sales revenue 1,724 1,402 -18.7 -18.5 Order intake 1,827 1,142 -37.5 -37.2 Underlying EBITDA2 607
Slide 18: Navigating through volatility: Temporary decline in perspective
Sartorius Stedim Biotech Group Navigating through volatility: Temporary decline in perspective vs. H1 19 vs. H1 20 Sales revenue +98% +61% Order intake +47% +9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Sales ex Covid Covid-19-related sales Order intake 18
Slide 19: All regions influenced by destocking and low investment activities
Sartorius Stedim Biotech Group All regions influenced by destocking and low investment activities Americas EMEA Asia|Pacific Sales by region € in millions € in millions € in millions in % -12.4% -19.5% -25.2% EMEA Americas 682 ~ 39% ~ 38% 593 526 551 449 325 €1,402m H1 2022 H1 2023 H1 2022 H1 2023 H
Slide 20: Cash flow influenced by working capital development and CAPEX
Sartorius Stedim Biotech Group Cash flow influenced by working capital development and CAPEX Sartorius Stedim Biotech Group H1 2022 H1 2023 in % in millions of € unless otherwise specified Underlying EBITDA 607 416 -31.5 Extraordinary items driven by acquisitions and Extraordinary items -5 -50 > -
Slide 21: Sound balance sheet and financial KPI
Sartorius Stedim Biotech Group Sound balance sheet and financial KPI Key financial indicators Net debt and net debt to underlying EBITDA 1,400 1.8 Dec. 31, June 30, Sartorius Stedim Biotech Group 1,200 2022 2023 1.5 1,000 1.2 Equity ratio in % 49.6 50.2 800 0.9 600 0.6 Net debt in millions of € 1,02
Slide 22: 2023 P&L outlook confirmed as revised in June
Sartorius Stedim Biotech Group 2023 P&L outlook confirmed as revised in June Guidance 20231 Sales revenue development (in%) Underlying EBITDA margin Sartorius Stedim Biotech Group Low to mid-teens decline ~30 excluding Covid-related business High single-digit to low-teens decline thereof from acquis
Slide 23: Questions & Answers
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Slide 24: Disclaimer
Disclaimer This presentation contains statements concerning the future performance of the Sartorius and the Sartorius Stedim Biotech Groups. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we cannot guarantee tha