Welcome | Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue | Benvenuti Annual Shareholders’ Meeting on April il 8, 2014 14 Combined Extraordinary & Ordinary Shareholders’ Meeting on April il 5, 2016 16 Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue | Benvenuti | Bienvenid Willkommen | Welcome | Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue Joachim Kreuzburg Chairman of the Board and CEO _ _ _
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 materialize. This is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantially from the expected ones. It is not planned to update our forward- looking statements. Throughout this presentation, differences may be apparent as a result of rounding during addition.
Agenda 01 01 2015 5 Result lts s Review w | Guidan dance ce 2016 02 02 Dividend idend Propo posal 03 03 Mid-te term rm Prospect spects 04 04 VL Finance nce Merge ger 05 05 Stock ock Split it
Outstanding Performance in 2015 15 2015 Strong double-digit top line growth Overproportionate growth in earnings yet again; supportive currency environment Continued market share gains, especially in North America 20 Process development portfolio significantly expanded through the aquisitions of BioOutsource and Cellca Infrastructure further expanded and enhanced 4
Strong Growth Significantly Ahead of Initial Expectations Order Intake ke Sales s Revenue € in millions € in millions 946.4 884.3 722.1 683.5 2014 2014 2015 2015 +31.1 .1% % | +21.1 .1% % cc 1 +29.4 .4% % | +19.4 .4% % cc Biopharma market grew stronger than expected; ongoing market share gains All product segments reported substantial growth, especially single-use solutions Recent acquisitions performed very well, contributing nearly 2 pp to sales growth 5 1 cc = in constant currencies
Excellent Development Supported by All Regions, Especially Americas EMEA Americas cas Asi sia | | Pacif cific ic Sales by by Region ions Sales in millions of € in % 397.2 EMEA ~ 45% 323.5 322.1 219.6 141.8 163.7 Americas ~ 37% € 884.3mn Asia | Pacific ~ 18% FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 + + 24.7 .7% + 21.2 + .2% + 7.3 + .3% Acc. to customers ‘ location; growth in constant currencies Dynamic market growth and share gains drive outstanding business expansion in the Americas Double-digit growth in the EMEA region due to strong demand for both single-use products and equipment; acquisitions of BioOutsource and Cellca also added to growth Development in Asia|Pacific in line with expectations and against high comps; strong order intake momentum 6
Overproportionate Earnings Growth Yet Again Underly lying ing EBITDA DA EBITDA TDA Margin in Earni nings ngs per Share 1 € in millions in % in € 9.06 231.3 26.2 27 160.5 5.68 23.5 23.0 24 21.5 20.9 21 18 15 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 FY 14 FY 15 +44.2 .2% +59 59.5 .5% Underlying EBITDA margin in % Underlying EBITDA margin increased by 2.7 pp mainly due to economies of scale Positive effect from currencies on margin in FY 2015 1 Underlying EPS = based on net profit after non-controlling interest, adjusted for extraordinary items, amortization and based on a normalized financial result and tax rate 7
Significant Increase in Operating Cash Flow FY FY Change Sartorius Stedim Biotech Group 2014 2015 in % € in millions Net cash flow from operating activities 111.3 142.8 28.3 Net cash flow from investing activities 1 -46.8 -106.3 -127.1 Net cash flow from financing activities -84.2 -27.2 67.7 1 Net cash flow from investing activities and acquisitions | divestments Net operating cash flow driven by strong earnings development Net investing cash flow reflects the acquisitions of BioOutsource and Cellca as well as Capex for capacity expansions 8
Continued Strong Financial Position Balan lance ce Sheet Net Debt t to Underlyin ying g EBITDA TDA € in millions 1,066.1 1,066.1 907.3 907.3 150 28.2% 130.3 32.9% 113.7 28.9% 30.0% 100.1 11.1% 100 87.4 86.4 11.7% 1.0 1.0 1.0 50 60.7% 59.4% 67.1% 70.0% 0.5 0.4 0 FY 15 FY 15 FY 14 FY 14 FY 11 FY 12 FY 13 FY 14 FY 15 Non-current assets Equity Net debt in millions of € Net debt to underlying EBITDA Current assets Financial debt Non-financial debt 9
Balance Sheet of the Parent Company December 31, 2015; € in millions (unless otherwise specified) As Assets Equity uity and Liabil iliti ities Non-current assets 136.3 89.8% Equity 80.7 53.1% Current assets 15.5 10.2% Liabilities 71.1 46.9% 151.8 .8 100% Total tal Total tal 151.8 .8 100% 10
Key Stock Market Benchmarks Substantially Outperformed 300% Market rket Capita itali lization zation SSB +119.1 .1% NASDAQ Biote tech ch +11.4 .4% € 5. 5.2 2 bn bn CAC C Small ll +18.2 .2% 250% SBF1 F120 0 +9.0 .0% as of April 1, 2015 200% 150% 100% 50% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar 2015 2016 11
2016 Guidance – Positive Momentum Expected to Continue FY 2015 2016 Guidance 19.4% ~ 12% - 16% Sales revenue growth 1 Underlying EBITDA margin 26.2% ~ +1 pp 1 Capex ratio 6.2% ~ 6% - 8% 1 In constant currencies Guidance includes ~ 1.5 pp of growth expected to be contributed by BioOutsource and Cellca About half of the margin increase is expected to come from economies of scale and the other half from cessation of dilutive effects relating to fx hedging 12
Agenda 01 01 2015 5 Result lts s Review w | Guidan dance ce 2016 02 02 Dividend idend Propo posal 03 03 Mid-te term rm Prospect spects 04 04 VL Finance nce Merge ger 05 05 Stock ock Split it
Significant Dividend Increase Earni nings ngs per Share Divide dend d per Share in € in € 9.06 2.00 5.68 4.90 4.21 1.30 1.20 3.49 1.10 1.00 FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 1 1 Subject to approval by the AGM Total profit distributed would increase from € 20.0 mn to € 30.7 mn Payout ratio at 22.1% (2014: 22.9%) 14
Agenda 01 01 2015 5 Result lts s Review w | Guidan dance ce 2016 02 02 Dividend idend Propo posal 03 03 Mid-te term rm Prospect spects 04 04 VL Finance nce Merge ger 05 05 Stock ock Split it
Global Biopharma Market in a Very Dynamic Phase FDA Original inal BLA Appr proval ovals 1 Pate tent t Expir irie ies 2 Ø 4 p.a. Ø 8 p.a. Biolo logic ic Drug ug EU EU USA Biolo logic ic Drug ug EU EU USA Humir ira 2018 2016 Humir ira 2018 2016 12 Remicade Remicade icade icade 2015 2015 2018 2018 11 Ritux Ritux tuxan tuxan an an 2013 2013 2016 2016 6 6 6 6 Enbrel 2015 2028 Enbrel 2015 2028 4 4 Lantu ntus 2014 2014 Lantu ntus 2014 2014 2 2 Avas astin in 2019 2017 Avas astin in 2019 2017 Herce rceptin in 2014 2019 Herce rceptin in 2014 2019 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ongoing market penetration by approved drugs High level of new drug approvals Strong R&D pipelines Biosimilars expected to support volume expansion 1 FDA.gov 2 IMS 16
Complementary Acquisitions to Enhance Portfolio Acqui uisiti sition on Criteria ria M&A Transa sacti ctions ons 2011-2015 2015 BioOutsource | 2015 Portf tfolio io Complementary products or technologies Cellca | 2015 Market et Posi sitio tion Either among the Top 3 or unique position AllPure Technologies | 2014 Integ egratio tion TAP Biosystems | 2013 Management capacity; cultural fit Lonza Cell Culture Media | 2013 Price Fair valuation; reach SSBs ‘ profitability level in 2-3 years 17
Continued Capacity Extension to Accommodate Growth Cape pex Ratio tio 12 9.2 10 8.1 ~ 6-8 8 6.5 6.2 5.8 6 Expansion 4 2 0 2011 2012 2013 2014 2016e 2015 Ongoing expansion of production capacities worldwide Multi-year program to expand Goettingen site (filter production; additional R&D and application labs) Additional capacities to be built for filters and bags at Yauco site New production facility in the UK will start up operations in Q2 2016 Capex ratio of ~ 6% - 8% for 2016; expected to remain in this corridor for the next few years 18
Strong Performance Slightly Ahead of Long-term Plan 2011-2015 Performance Review Strategic Initiatives ~ 14% Sales CAGR 1 Regiona ional l Gain share in North America ~ 10.5% .5% Organic ic sales CAGR 1, 1,2 Leverage market growth in Asia Executed uted gin + 5.3 3 pp ITDA 3 margi EBITDA Portf tfolio io 884.3 Alliances and acquisitions 683.5 Ongoi oing ng Own product development 30 588.4 544.0 477.3 25 26.2 23.5 23.0 Infrast struct ctur ure 20 21.5 20.9 Ongoi oing ng Capacity expansion 15 10 2011 2012 2013 2014 2015 EBITDA 3 margin Sales in millions of € 1 In constant currencies 2 Excluding portfolio changes 3 Excluding extraordinary items 19
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