Company Presentation February 2019 1 Agenda 01 Sart rtorius in - - PowerPoint PPT Presentation

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Company Presentation

February 2019

Agenda

Sart rtorius in in Brie rief

01 03 Lab

b Prod Products & Serv rvices Biopr ioprocess S Solu

• lutio

ions

02 04 Sart

rtorius 2020 2020 and d 2025 2025

Sartorius in 2018

3 Figures as of Dec. 31, 2018 1 Underlying EBITDA (excluding extraordinary items) 2 As of Dec. 31, 2018; including SSB free float

~€405 405 mn mn

Earnings1

~€1.6

.6bn bn

Sales revenue

Biopr

• proce
• cess a

and Labor borator

• ry

Tech chnol

• logie
• gies P

Provide ider

Internationally leading EBITDA1 margin

Sales revenue by region

~€238 238 mn mn

Investments

~33% 3%

Americas

~42% 2%

EMEA

~25% 5%

Asia| Pacific

25. 25.9%

Listed since 1990; Part of German MDAX & TecDax Market capitalization2

~€9. 9.1 1 bn bn

Global player with around 60 sales and production sites

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India, Thailand, Singapore, Vietnam, China, Malaysia, South Korea, Japan, Australia Netherlands, Belgium, Ireland, Israel, UK, France, Spain, Sweden, Finland, Denmark, Germany, Poland, Austria, Hungary, Switzerland, Italy, Russia, Tunisia, South Africa

EMEA Americas Asia | Pacific

USA, Canada, Puerto Rico, Mexico, Brazil, Argentina

Production and Production/Sales Sales

More than 8,100 employees worldwide

Figures as of Dec. 31, 2018 5

~1,250 50

Americas

~5,700 00

EMEA

~1,150 50

Asia|Pacific 1995

1996

~7,000 00 3,000 00 4,000 00 5,000 00 2,000 00

1997 1998 1999 2001 2006 2002 2003 2004 2005 2008 2013 2009 2010 2011 2014

2000 2007 2012 2016 2018

2015

~8,000

000

Our corporate values

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Roots of both divisions reach far back

Weighi ghing ng Techno hnolog

• gy

Core of Lab Division

Filtratio ation

Mainstay of Bioprocess Division

University mechanician | Company founder Florenz Sartorius invents short-beam analytical balance Wilhelm Sartorius founds joint venture with Nobel laureate and creator of membrane filtration Richard Zsigmondy

1870 1870 1927 1927

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Sartorius focuses on Biopharma applications

Molecule development Cell line and process development Production upstream & downstream Lab b Prod Products & Serv rvices Div ivision

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Biopr ioprocess Solu

• lutio

ions D Div ivis ision Quality & testing

Driven by strong fundamentals, Biopharma is a growth market

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+6.4 .4%

CAGR

• f worldwide

prescription drug sales 2018-2024

9bn bn

people by 2050

• f which >2bn

bn

60yrs or older

Rise of biosimilars

>30%

CAGR of

biosimilar sales 2018-2022

Favorable R&D pipeline; strong advances in gene and cell therapy

~8 ~8%

CAGR of biopharma market 2018-2025

>40 40%

Share of biologics in pharma R&D pipeline

Favorable demographics Increasing healthcare spending

Agenda

Sartoriu

• rius i

in Brie rief

01 03 Lab

b Prod Products & Serv rvices Biopr ioprocess S Solu

• lutio

ions

02 04 Sart

rtorius 2020 2020 and d 2025 2025

20 22 24 26 28 30 32 34 36 38 40 200 400 600 800 1000 1200 1400 2013 2014 2015 2016 2017 2018 Sales EBITDA-Margin1

Bioprocess Solutions division snapshot

Based on FY 2018 figures 1 Excluding extraordinary items 11

Division profile

Total solution provider for biomanufacturing

High share of recurring revenues Global footprint Dynamic track record

~€1, 1,14 143 3 mn 28. 28.6%1

Sales revenue EBITDA1 margin

Asia|Pacific ~ 23% Americas ~ 36% EMEA ~ 41% Consumables ~ 75% Equipment ~ 25%

Sales € in millions EBITDA1 margin in % (rhs)

What are biopharmaceuticals?

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• First-time or improved treatment of serious illnesses,

such as cancer, multiple sclerosis, rheumatism

• Targets only diseased cells; fewer side effects
• New vaccines
• R&D and production labor-intensive
• High therapy costs: biologics ~ $50 vs.

chemical medications ~ $2 per day Living, genetically modified cells Production Injection | Infusion

Advan vantag tages Chal allenges

Focusing on Biopharma for more than 15 years

Molecule development Cell line and process development Production upstream & downstream Lab b Prod Products & Serv rvices Div ivision

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Biopr ioprocess Solu

• lutio

ions D Div ivis ision Quality & testing

Well positioned as a Total Solution Provider across the Biopharma process chain

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Serv rvic ices Proce cess D ss Development nt Produ duction ion

Fermentation Purification Cell Harvesting Buffer | Preparation Cell Culture Media

Cell line development services Q3 2015 Testing in biosafety and bioanalytics Q2 2015 Small-scale single-use bioreactors Q4 2013 Cell culture media

Q1 2013

Single-use technology for sampling

Q2 2014

Portfolio continuously enhanced via strategic acquisitions

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Proce cess D ss Development nt Prod Production

• n

Software for bioprocess data analysis

Q2 2017

Single-use centrifuges

Q3 2016

High initial cost Considerable cleaning effort Risk of cross-contamination

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Pioneer in single-use manufacturing technologies

Pres esen ent Past st

+ CAPEX reduction over entire lifecycle + Lower water and energy consumption + Higher flexibility

Around 75% of recurrent business with single-use products

~ €1,143 143 mn mn

Single le-us use

~75%

Equipment nt

~25%

17 Figures as of Dec. 31, 2018

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Leading market positions worldwide

• >85 % of sales revenue generated from TOP 1-3 positions

Filtration TO TOP 3 Fluid Management #1

#1

Fermentation #1

#1

Agenda

Sartoriu

• rius i

in Brie rief

01 03 Lab

b Prod Products & Serv rvices Biopr ioprocess S Solu

• lutio

ions

02 04 Sart

rtorius 2020 2020 and d 2025 2025

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 50 100 150 200 250 300 350 400 450 500 2013 2014 2015 2016 2017 2018 Sales EBITDA-Margin1

Lab Products & Services division snapshot

Based on FY 2018 figures 1 Excluding extraordinary items 20

Premium provider of laboratory essentials and bioanalytics platforms

Sales split Global footprint Accelerating profitable growth

~€423 423 mn 18. 18.5%

Sales revenue EBITDA1 margin

Asia|Pacific ~ 28% Americas ~ 26%

~ ~ €423 423m

Consumables & services ~ 35% Lab instruments ~ 65%

Division profile

EMEA ~ 46%

Sales € in millions EBITDA1 margin in %

Increasing strategic focus on Biopharma R&D

Molecule development Cell line and process development Production upstream & downstream Lab b Prod Products & Serv rvices Div ivision

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Biopr ioprocess Solu

• lutio

ions D Div ivis ision Quality & testing

Our ambition: Reduce costly trial & error in drug discovery

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A A brig bright ide idea Drug discovery Testing & improving Clinical trials Prod Product launc unch

47%

1 ye

year

1½ years

rs 490 490 113 113 640 640

4½ years

rs

Schematic example of biologic drug discovery with data from Association of the British Pharmaceutical Industry

in € mn

Drug approval Onl Only 1 1 ou

• ut of
• f

10,000 000 mole

• lecule

les make it it to to th the m e mar arket et Help researchers to fail faster Reduce time and cost in molecule development

60 60

5 5 ½ years

rs

Two strong pillars

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LPS legacy product portfolio New bioanalytics business

IncuCyte Lab balances Pipettes Consumables Lab water systems

• Premium portfolio of essential lab instruments and consumables
• Acquisition of U.S. companies: IntelliCyt (mid 2016) and Essen BioScience (early 2017)
• Combination of unique technologies in the area of high throughput (IntelliCyt) and

real-time quantitative analysis (Essen)

• Unrivalled solutions which provide significant benefits to biopharma R&D workflows

iQue Screener PLUS

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These products and services are must-haves in any laboratory

Pipettes and accessories Services Moisture analyzers Microbiological test kits Balances Lab water systems

Lab instruments, consumables and services

Strong Bioanalytics portfolio for Biopharma R&D applications

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• Innovative and unique bioanalytical platforms, complement the well-established portfolio

for the sample preparation in the lab

• Excellent fit in LPS Bioanalytic offering; complement areas of application and techniques,

no overlapping

• Significant acceleration of product development

Real-time cell analysis Cell screening

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Leading market positions worldwide

• Average global market share with lab essentials >10%
• Leading bioanalytics portfolio

Lab Balances #2

#2

Pipettes #4

#4

Lab Filtration #3

#3

• Microb. Analysis #2

#2

(membrane based)

Agenda

Sartoriu

• rius in

in Brie rief

01 03 Lab

b Prod Products & Serv rvices Biopr ioprocess S Solu

• lutio

ions

02 04 Sartoriu

• rius 2020

2020 and d 2025 2025

On track to deliver on our 2020 goals that were set in 2011

Figures as of December 31, 2018. Sales growth and CAGR for continued operations, in constant currencies

1 Excluding extraordinary items 2 Based on Guidance

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19. 19.7 20. 20.1 20. 20.5 21. 21.0 23. 23.6

25. 25.0

25 25.1 .1 25. 25.9

sli ligh ghtly ly abov bove

27, 27,0 ~2 ~26-27 27

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 200 400 600 800 1000 1200 1400 1600 1800 2000 2200

2011 2012 2013 2014 2015 2016 2017 2018 2019e 2020e €733 mn

~ ~ €650 50 mn mn ~€1.6 6 bn bn ~€2.0 0 bn bn

Sales revenue EBITDA1 margin in % Intec Division; divested in 2|2015

+13.2% +9.3% +18.2% +16.0% +12.6% +8.8% +13.6%

~28 28

2025e2

+~7-11% ~ ~ €4.0 0 bn bn

2 2

Portfolio of both divisions substantially strengthened

1 Excluding Sartorius Industrial Technologies

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Lab ab Prod Products & & Ser ervices es Biopr ioprocess Solut utions ns

Sales ~€733m

Lab b Prod Products & & Ser ervices es Biopr ioprocess Solut utions ns

Sales ~€1.6bn

Indust strial l Technol

• logi

gies es

2011 2018

Sales ~€650m1

Essen BioScience kSep Umetrics Industrial Technologies Cellca BioOutsource AllPure Technologies IntelliCyt ViroCyt TAP Biosystems Biohit Liquid Handling Lonza Cell Culture Media

Infrastructure prepared for further growth

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Capex ratio New ERP and extension of global IT infrastructure Goettingen, Germany: Extension of headquarters Aubagne, France: Capacity extension of bag production Yauco, Puerto Rico: Doubling of fluid management and filter capacities

~15%

Our Sartorius 2025 targets and initiatives

2025 ambition is based on 2017 currency exchange rates; non-organic revenue growth is accounted for companies acquired from 2018

• nwards; EBITDA excluding extraordinary items

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~28% 28%

EBITDA DA margi gin

~2|3 |3 Org rganic ~1|3 3 Acquisit sitio ions

Port Portfoli lio

• Adding high-impact innovation, e.g. digital tools
• Expand into adjacent applications

Regio gional

• Participate in strong Chinese market growth
• Continue to outgrow the important U.S. market

Opera ration

• ns
• Accelerate workflows across the organization
• Extend manufacturing base in Asia

Strategic gic i initi tiati atives 2025 2025 targ rget ets

~€4bn bn

1

Sale ales revenue ue

Our Sartorius 2025 ambition per division

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SSB | B | BP BPS

~€2.8bn 8bn

Sale ales revenue ue

~30% 30%

EBITDA DA margi gin

~€1.2bn 2bn

Sale ales revenue ue

~25% 25%

EBITDA DA margi gin

~28% 28%

EBITDA DA margi gin

Sartori rius us G Group up LPS PS

~€4bn bn

1

Sale ales revenue ue

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Thank you very much for your attention

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Fluid Management Fermentation & Cell Culture Media

Portfolio Bioprocess Solutions

35

Portfolio Bioprocess Solutions

Filtration Purification

36

Portfolio Lab Products & Services

Lab Balances Pipettes

37

Portfolio Lab Products & Services

Lab Water Systems Bioanalytical Technologies

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Lab Filtration Microbiological Quality Control

Portfolio Lab Products & Services

Further Lab Instruments

Disclaimer

This presentation contains statements concerning Sartorius Groups’ 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.

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