Simplifying Progress Investors Presentation H1 2020 Results - - PowerPoint PPT Presentation

Simplifying Progress Investors Presentation

H1 2020 Results

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. 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.

Disclaimer

2

Agenda

3

Overview ew | Strateg tegy Bioprocess Solutions Division Lab Products & Services Division FY 2020 Guidance | H1 2020 Results

Partner of biopharmaceutical research and industry

4 Overview | Strategy

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.

Based on FY 2019 figures 1 For continued operations, in constant currencies 2 Excluding extraordinary items

5

~€1.8bn .8bn

Sales revenue

~14%

Sales CAGR1 2014-2019

27.1% .1%

EBITDA margin2

9,016 016

Employees

60 60+

Locations worldwide, headquartered in Göttingen, Germany High h expos

• sure

ure to attra racti tive e bioph pharma arma and life e science e industry stry

~35% 5%

€412m €1,827m

Sales with life science customers Group sales revenue

2019 2000

~85%

Overview | Strategy

Sartorius at a glance

6

Strategic focus of both divisions on the biopharma value chain

Overview | Strategy

Lab Products & Services Division

Quality | Testing | Validation

Upstre tream m & downstrea stream m produc ducti tion

• n

Molecule ule develop lopment ment Cell line e and process ess develop

• pment

ent Bioprocess Solutions Division

7

Attractive market environment with strong growth opportunities

Overview | Strategy

~8% CAGR

for biopharma market 2019–2025 Favorable demographics

9bn people by 2050;

>2bn 60 yrs or older Rise of biosimilars

~30% CAGR for biosimilar

sales 2019–2022 Strong R&D pipeline; advances in gene and cell therapy

>40% share of biologics in

pharma R&D pipeline

€733m 19.7 20.1 20.5 21.0 23.6 25.0 25.1 25.9 27.1

17.5 19.5 21.5 23.5 25.5 27.5 29.5 31.5 33.5 35.5 37.5 39.5 300 500 700 900 1100 1300 1500 1700 1900

2011 2012 2013 2014 2015 2016 2017 2018 2019

+12.6% +16.0% +18.2% +9.3% +8.8% ~€1.8bn ~€650m +13.6% +13.2%

8

Sales CAGR

~+13%

3%

+14.8% EBITDA-margin1 +7.4pp

Sales growth and CAGR 2011-19 for continued operations, in constant currencies 1 Excluding extraordinary items Sales revenue EBITDA1 margin in % Intec Division; divested in 2|2015 Overview | Strategy

Sales revenue has more than doubled over the last 5 years

9 CAGR for continued operations, in constant currencies

53% 25% 22%

2011

~€650 650m

40% 35% 25%

2019

~€1.8bn .8bn

22% 51% 27%

2019

~€24 240bn bn

CAGR ~+16% ~+16% ~+11%

Asia | Pacific Americas EMEA

Global biopharma market 2019 Sales by region 2011 Sales by region 2019

Overview | Strategy

Regional balance better reflecting end-markets

8.8 7.7 9.1 10.1 11.7 14.9 15.2 12.3 ~10.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 Expansion of R&D facilities and headquarter

Major projects Regular expansion Capitalized R&D Maintenance ~3% ~2% ~3% ~X%

1

1 Incl. discontinued operation 2 Based on 2020 guidance

1

CA CAPE PEX X ratio

in %

CAPEX compos

• sition
• n 2020

2

10

Expansion of fermenter production capacities

Overview | Strategy

Infrastructure prepared for further organic growth

11

Acquisiti sition

• n criter

eria Portfolio: Complementary products or technologies Market position: Either among the Top 3 or unique selling point Integration: Management capacity; cultural fit Price: Fair valuation; reach Sartorius‘ profitability level in 2-3 years

Overview | Strategy

M&A strategy – adding innovation, enhancing focus

TAP Biosystems Bio Outsource Cellca kSep Umetrics Intellicyt ViroCyt Essen BioScience AllPure Technologies 2013 2014 2015 2016 2017 2020 2018 2019 Biological Industries Divestment Intec Division Life Science assets from Danaher

• 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 healthy growth profile; slightly dilutive EBITDA margin
• Will be allocated to BPS and LPS Divisions; fully consolidated in Sartorius Stedim Biotech
• Complementary to cell culture media business
• Closing of transaction in Dec. 2019, total purchase price of approx. €45m for just over 50% of the shares

12 Overview | Strategy

Acquisition of Biological Industries in Q4 2019

• Acquisition includes bioanalytical tools for LPS; upstream and downstream technologies for BPS
• 2019 sales amounted to c. $170m; allocation of approx. $70m to LPS and approx. $100m to BPS; neutral impact on Group margin
• ~300 employees with production sites in the U.S., EMEA and China
• Purchase price of $825m of which approx. 2/3 to be allocated to LPS and approx. 1/3 to BPS; financing secured
• Announced in Q4 2019, deal closed after all regulatory approvals were received; consolidation in May 2020

13 Overview | Strategy

Acquisition of selected life science assets from Danaher

Pie charts indicate completeness of product offering before the acquisitions 14

Acquisitions significantly strengthen positioning of both divisions

LPS: FortéBi téBio highl hly y synergeti rgetic with the bioana naly lyti tics portf tfolio;

• lio; expands

nds spectru trum m to includ ude e protei tein n analysis

iQue Screene eener (Sartorius torius) Identification of antibodies based

• n cell-based characteristics

Octet et (Forté téBio Bio) Testing of the binding quality of antibodies to the target cell IncuCyte Cyte | | iQue Screene eener (Sar arto toriu ius) s) Analysis of the cell behaviour

• Portfolio complemented

by businesses from Danaher and BI

• Especially in

chromatography and cell culture media BPS: Acquisi isiti tion

• ns

s fit t perf rfec ectly tly into

• the portf

tfol

• lio

io

Filtration Fluid Management Fermentation Purification Cell Culture Media

Overview | Strategy

15

Sartorius 2025 targets and initiatives

2025 targets Strategic initiatives

Regiona

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

Portf tfoli

• lio
• Add high-impact innovation, e.g. digital tools
• Enhance process development capabilities
• Expand into adjacent applications

Opera rati tion

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

2025 targets are based on 2017 currency exchange rates; non-organic revenue growth is accounted for companies acquired from 2018 and onwards; EBITDA excluding extraordinary items; around two-thirds of the growth in the period 2020-2025 expected to be achieved organically and around one-third by acquisitions

~28%

EBITDA margin

~ 1/3

Acquisitions

~ 2/3

Organic

~€4bn bn

Sales revenue

Overview | Strategy

SSB | BPS Sartorius

• rius Group

LPS

~€2.8bn 2.8bn

Sales revenue

~30% 0%

EBITDA margin

~€1.2b 1.2bn

Sales revenue

~25% 5%

EBITDA margin

~28% 8%

EBITDA margin

~€4bn 4bn

Sales revenue

2025 targets are based on 2017 currency exchange rates; EBITDA excluding extraordinary items 16 Overview | Strategy

Sartorius 2025 ambition per division

Agenda

17

Overview | Strategy Bioproce

• cess Soluti

tions ns Division Lab Products & Services Division FY 2020 Guidance | H1 2020 Results

615.6 1,350.5 23.0 29.1

23 25 27 29 31 33 35 300 500 700 900 1100 1300 1500

2014 2015 2016 2017 2018 2019

18

Track record of dynamic growth High share of recurring revenues Global footprint

Based on FY 2019 figures; sales CAGR in constant currencies; FY 2019 figures restated, CAGR unchanged 1 Excluding extraordinary items

Asia|Pacific ~24% Americas ~37% EMEA ~39% Single-use products ~75% Equipment ~25%

Sales revenue, € in millions; EBITDA margin1 in % Division sales by category

+15.7% CAGR

Division sales by region

Total solution provider for biomanufacturing

Bioprocess Solutions

Snapshot of the Bioprocess Solutions Division

19

• Production process

design is inalterable for the lifetime of most drugs

• Individually customized

production process required for all drugs

• Decisions for process

design, and thus supplier selection, are typically made during clinical trials

Virus filtration Viral clearance Chroma- tography Final filling Cryo- preservation Concen- tration Sterile filtration Culture media preparation Fermentation Seed cultivation Scale-up Clarification & centrifugation

UPSTR TREAM EAM DOWNSTR STREAM EAM

Bioprocess Solutions

Covering most steps of the biopharma process chain

20 Bioprocess Solutions

Leading positions in key technology platforms

Pie charts indicate completeness of product offering Sartorius1 Merck | Millipore Pall Cytiva2 Thermo Fisher Top 3 Players Filtration

• 1. Merck | Millipore
• 2. Danaher | Pall
• 3. Sartorius

Fluid Management

• 1. Sartorius
• 2. Thermo Fisher
• 3. Merck | Millipore

Fermentation

• 1. Sartorius
• 2. Thermo Fisher
• 3. Danaher | Cytiva

Purification

• 1. Danaher | Cytiva
• 2. Merck | Millipore
• 3. Sartorius

Cell Culture Media

• 1. Thermo Fisher
• 2. Merck | Millipore
• 3. Danaher | Cytiva

1 Sartorius with strengthened portfolio after acquisition of selected life science assets from Danaher; 2 Formerly GE Biopharma

Danaher

21

Biologics gics ma market ket growth wth foreca cast st

CAGR 2019 to 2023, € in billions U.S. ~155 China ~62

~€335bn

Europe ~61 ROW ~57 U.S. ~110 China ~35

~€240bn

ROW ~47 Europe ~48

~+15% China ~+9% U.S. ~+6% Europe

• Biologics market in China is at an early stage, but has strong growth potential
• Supportive regulatory environment and solid industry foundation; biopharma considered a priority sector
• Growth of fermentation capacity in China of 80% (2018 to 2022)

Bioprocess Solutions

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

22

3 1 7 22 20 15

2012 2013 2014 2015 2016 2017 2018 2019

Growing ng numb mber er of biosim similar ar appro rova vals ls

E.U. and U.S.

Biosimi milars ars will outperfo erform rm the biologic

• gics

s marke rket

€ in billions

~231 ~311

2019 2023

~9 ~24

Biosimilars Other biologics

~+30%

CAGR

• 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 but with strong growth
• Single-use is the preferred platform for biosimilars

Bioprocess Solutions

Biosimilars: Strong growth, big opportunities

23

Singl gle-use use market ket penetr etrati tion

• n expected

ted to increa ease se from

• m ~35% to ~75%

Single-use products offer advantages over conventional stainless-steel devices

• Capex|Opex reduction over entire lifecycle
• Reduced risk of cross-contamination
• Higher flexibility; advantageous for biosimilars
• 25-35%
• 55-65%
• 65-75%

Construction cost Energy cost Water cost

• 30-50%

Time-to-market

Reference Single-use

Bioprocess Solutions

Leader in the growing single-use technology market

24

... not mature because

• Underpenetrated global market
• Strong flow of innovation
• Time-consuming product

development ... but maturing because

• Increasing importance of product

costs and time to market

• Robustness and ease of use of tools

are becoming more important

• Companies invest in market

consolidation

Data adopted from: Paul (2010) Nature Rev DD & Association of the British Pharmaceutical Industry (2017)

Cumulative investment and absolute survival rate in drug development

300 600 900 1200 1500 20 40 60 80 100 Target Target to lead lead Pr Precl eclin inical ical Ph Phase 1 ase 1 Ph Phase 2 ase 2 Ph Phase 3 ase 3 Regis Registr tration ation Cumulat lative ive invest estmen ment (€ in millions; lions; rhs rhs) >10+ years ars Absolu solute te surviva val l rate te (in %; lhs)

Bioprocess Solutions

The biopharma market is not yet mature, but is maturing

Sartorius offers the leading software for bioprocess data analytics

 Enhanced process control and robustness  Improved product quality  Predictive process control

• Powerful solutions for modeling and optimizing

development and manufacturing

• Help to gain insights from complex data sets
• Data analytics just at the beginning in

biomanufacturing and shows high potential

25

Monitoring and control Data aggregation Data evaluation Process

• ptimization

Bioprocess Solutions

Digitalization is arriving in biopharma

26

• More than half of 2019 BPS sales were generated with the Top 50 customers
• No individual customer accounts for more than 5% of BPS sales revenue
• No single drug accounts for more than 3% of BPS sales revenue

50 100 150 200 250 300 350

Sales s to to Top 50 customer

• mers

in 2019, € in millions Top 10 11 to 20 21 to 30 31 to 40 41 to 50

Cumulative share ~25% ~40% ~45% ~50% ~55%

Limited dependence on individual accounts Long-term business relationships with leading global (bio-) pharma companies

Bioprocess Solutions

Limited dependence on individual accounts

2

~+14% 4% Organic

nic CAGR1

27 1 CAGR 2013 to 2020e, excluding FX effects and acquisitions 2 Midpoint of 2020 guidance

2014 2015 2016 2017 2018 2019 2020

Pharma ma market ket Biopha harm rma market ket Singl gle-use use penetr etrati tion

• n

Market et share gains CAGR 4-7% CAGR ~8% Double-digit growth

• Esp. in North

America

Bioprocess Solutions

Four strong pillars drive above-average growth

Agenda

28

Overview | Strategy Bioprocess Solutions Division Lab Products cts & Service ces Division

• n

FY 2020 Guidance | H1 2020 Results

325.3 476.5 16.0 21.6

13 15 17 19 21 23 25 27 29

100 150 200 250 300 350 400 450 500 550 600 2016 2019

268.9 305.5 17.4 16.0

14 16 18 20 22 24 26 28 30 100 150 200 250 300 350 400 450 500 550 600 2012 2015

29

Global footprint

Division sales by region

Based on FY 2019 figures; sales growth and CAGR in constant currencies; FY 2019 figures restated, sales growth and CAGR unchanged 1 Excluding extraordinary items

Premium vendor for laboratories

Asia|Pacific ~29% Americas ~27% EMEA ~44% Build-up of bioanalytics portfolio since 2016 CAGR +3.8% CAGR +11.8%

Division in transition to a new growth and profitability profile

Sales revenue, € in millions; EBITDA margin1 in %

Lab Products & Services

Snapshot of the Lab Products & Services Division

30

1 ½ years €60m 60m 1 year €110m 5 ½ years €640m 4 ½ years €490m Drug discovery Testing & improving Clinical trials Drug approval

~€500 00m m

Average costs of drug discovery

>10 years rs

From drug discovery to approval

1 in 1 10,00 000

Chance for a candidate to make it to the market

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

Our approa

• ach
• Facilitate digitalization

and automatization

• Decrease likelihood
• f failure
• Reduce time and costs in

molecule development

Lab Products & Services

Our ambition: Reduce costly trial & error in drug discovery

Autom

• mated

ted imaging g for r live cell analysis

• Analysis of cell health, morphology and

movement by images and videos

• Deep insights into biological processes

High-thr throughput ughput screeni ening ng and selec ecti tion

• n
• Evaluation of cell health and functions
• Fast screening and characterization of

molecule candidates

Consider siderable able accele eleration ration of the developm elopment ent of f medica dicatio tions, ns, e.g., ., in cancer cer resear search ch

31 Lab Products & Services

Innovative bioanalytics for accelerated molecule development

1 Becton Dickinson, Merck Millipore, PerkinElmer, Thermo Fisher 2 Beckman Coulter, Becton Dickinson, Merck Millipore, Thermo Fisher 3 Agilent Technologies, Danaher, Merck Millipore, PerkinElmer

• IntelliCyt processes thousands of plates and

generates large amounts of data for rapid and clear target identification

• IncuCyte delivers video-based insights and

improved workflows for real-time quantitative analysis of living cells Plate readers3) Microscopy High content imaging1) Flow cytometry2) IntelliCyt IncuCyte

Works on cells in suspension Works on cells on 2D surface Independent of cell attachment

Richness of data Sample throughput per plate

32 Lab Products & Services

Bioanalytics portfolio with little competition and high value added

33 Lab Products & Services

FortéBio acquisition further strengthens positioning in bioanalytics

Innova vati tive e produc duct t portf tfoli

• lio
• with strong
• ng market

ket positi tion

• n
• Instruments, consumables and software for real-time, label-free

measurement of biomolecular interactions

• Octet as the key product uses unique, patented Bio-Layer-

Interferometry (BLI) technology

• Used to generate information on affinity, kinetics and

concentration of proteins for selection, development & scale-up

• f biologics
• Highly complementary to existing bioanalytics portfolio

Octet et Identify high-producing clones in expression library ambr br15 15 Culture identified clones on small-scale Octet et | iQueScr eScreene eener Analysis and characterization

• f cell line and antibodies

Appli licati tion

• n example

ple: : Cell line devel elopm

• pment

ent

34

~3.4 ~4.3 ~1.2 ~1.9

2019 2025

Addressab able le market t of LPS

€ in billions LPS ex bioanalytics Bioanalytics

+3.5% CAGR +8% CAGR

• Different growth rate of bioanalytics

due to high exposure to biopharmaceutical R&D

• By 2025, two-thirds of the addressable

market growth will come from bioanalytics

• Thus, growth and profitability profile
• f LPS is changing over time

Lab Products & Services

Bioanalytics increases addressable market and changes growth profile

35

• Leading positions in laboratory

products used for research and quality control

• Average global market share of >10%
• High gross margins offer potential for

economies of scale

• Growth potential especially in the U.S.

and Asia

Lab balances Lab filtration

#2 #2 #3 #3

Pipettes

#4 #4

• Microb. analysis

#2 #2

Lab Products & Services

Strong market position in key product categories

36

Well establi lishe hed d sample e prep. portfol

• lio
• Premium instruments and consumables offering with strong global positions
• Market share opportunities in certain regions to be addressed primarily by direct sales force

Unique e bioanal alyti tics cs portfoli

• lio
• establ

blishe hed

• Innovative technologies added through recent acquisitions
• Combination with Sartorius’ global reach provides

significant growth potential

Lab Products & Services

Scalable business with considerable growth and margin potential

Agenda

37

Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 20 2020 20 Guidan ance ce | H1 H1 20 2020 20 Resu sults lts

38 1 Constant currencies 2 Underlying = excluding extraordinary items 3 Underlying EPS = based on net profit after non-controlling interest; adjusted for extraordinary items as well as amortization and based on a normalized financial result and tax rate

Sartor

• rius

us Group p

in millions of € unless otherwise specified

H1 2019 H1 2020 in % in % cc1 Sales revenue 894.7 1,056.8 +18.1 +17.9 Order intake 974.3 1,244.8 4.8 +27.8 +27.5 Underlying EBITDA2 237.6 293.5 +23.5 Underlying EBITDA2 margin in % 26.6 27.8 +1.2pp Underlying EPS3 (ord.) in € 1.48 1.81 +22.5 Underlying EPS3 (pref.)in € 1.49 1.82 +22.3

• Acquisitions of Biological Industries and the Danaher portfolio contribute close to 4pp to sales growth, as expected
• Underlying EBITDA driven by economies of scale; slightly negative impact from currencies

Dynamic top-line growth; further margin increase

FY 2020 Guidance | H1 2020 Results

Americas cas

€ in millions

39

EMEA EMEA

€ in millions

Asia|Paci acifi fic

€ in millions

• Americas: Significant growth of BPS; LPS supported by acquisitions; impacted by lockdowns in Q2
• EMEA: BPS strong; LPS demand driven by diagnostic test kits and lab consumables; weaker demand in other product areas
• Asia|Pacific: BPS with the highest momentum; LPS demand stabilized after lockdown lifted in China
• Acc. to customers‘ location; growth in constant currencies

Sales by by Region

in %

224.5 264.2

H1 2019 H1 2020

308.2 373.1

H1 2019 H1 2020 Asia|Pacific

~ 2 25%

Americas

~ 3 35%

EMEA

~ 40% 362.0 419.5

H1 2019 H1 2020

+19.7 % +18.4% +16.0 % €1056.8m

Double-digit growth in all geographies

FY 2020 Guidance | H1 2020 Results

Order r Intake

€ in millions

40

Sales Revenue ue

€ in millions

Underlying ng EBITDA TDA & Margin n

€ in millions

191.5 .5 247.2

H1 2019 H1 2020

735.6 984.9

H1 2019 H1 2020

665.8 809.3

H1 2019 H1 2020

28.8% 30.5%

• Order intake positively impacted by demand for Covid-19 medicines; strong project business, especially in Asia|Pacific
• Non-organic growth from Biological Industries and Danaher portfolio a good 2pp, as expected
• Underlying EBITDA margin rises due to economies of scale, despite slight dilution of acquisitions and FX

+33.5% cc +33.9% +29.1% +21.3% cc +21.6%

BPS: Strong performance across all product categories and regions

1 1 1 1 H1 2019 figures reported: Order intake €746.4m, sales €676.6m, underlying EBITDA €198.3m FY 2020 Guidance | H1 2020 Results

Order r Intake

€ in millions

41

Sales Revenue ue

€ in millions

Underlying ng EBITDA TDA & Margin n

€ in millions

46.2 46.4

H1 2019 H1 2020

238.8 259.9

H1 2019 H1 2020

228.9 247.5

H1 2019 H1 2020

20.2% 18.7%

• Difficult economic environment due to pandemic, with dampening effect on demand
• Acquisitions contribute close to 9pp to sales growth as expected
• Underl. EBITDA margin impacted by lower capacity utilization at the beginning of the year and by approx. -0.5pp FX effect

+8.9% cc +8.9% +8.1% cc +8.1% +0.4%

LPS: Robust sales development

1 1 1 1 H1 2019 figures reported: Order intake €228.0m, sales €218.1m, underlying EBITDA €39.4m FY 2020 Guidance | H1 2020 Results

42 1 Underlying net profit = net profit adjusted for extraordinary items, amortization and based on a normalized financial result and tax rate 2 After non-controlling interest 3 Net cash flow from investing activities and acquisitions

Sartor

• rius

us Group p

in millions of € unless otherwise specified

H1 2019 H1 2020 in % Underlying EBITDA 237.6 293.5 +23.5 Extraordinary items

• 10.6
• 26.1

n.m. Financial result

• 9.9
• 20.3

n.m. Underlying net profit1,2 101.5 124.3 +22.4 Reported net profit2 82.3 81.1

• 1.5

Opera rati ting ng cash flow 165.1 215.4 +30.4 Investi sting ng cash flow3

• 116.0
• 849.5

n.m. CAPEX ratio (in %) 12.8 8.5

• 4.3pp
• Net operating cash flow mostly driven by

higher earnings and factoring program (~€89m)

• Extraordinary items influenced by M&A
• Investing cash flow impacted by closing of

acquisition of Danaher portfolio

• Tax rate at 30% (+3pp vs. PY) due to

accounting of tax risks; not cash-effective in H1

Operating cash flow increases significantly

FY 2020 Guidance | H1 2020 Results

43

Key Financi cial al Indica cators tors

Sartor

• rius

us Group

• Dec. 31,

2019 June e 30, 2020

Equity ratio in %

38.1 30.1

Net debt in millions of €

1,014.0 1,669.6

Net debt | underlying EBITDA

2.0 2.8 2.8

Q1-Q4 2014 Q1-Q4 2015 Q1-Q4 2016 Q1-Q4 2017 Q1-Q4 2018 Q1-Q4 2019 0.0 1.0 2.0 3.0 4.0 500 1,000 1,500 2,000

Net debt in millions of € (lhs) Net debt to underlying EBITDA (rhs)

Net Debt and Net Debt to Underlying ng EBITDA TDA

Financial indicators remain robust

Q1-Q2 2020

• Balance sheet influenced by the recent acquisitions

FY 2020 Guidance | H1 2020 Results

44

Outlook for 2020 increased for BPS and the Group; uncertainty remains

FY 2020 Guidance nce1 [change ge vs. previ vious

• us guidance

nce]

Sales revenue growth Underlying EBITDA margin

Sartor

• rius

us Group ~ 2 22% - 26% [ [+7pp] pp] ~ 2 28.5% [+1pp] pp]

• thereof Biological Industries

1.5pp slightly dilutive

• thereof Danaher portfolio

5pp neutral

Bioproc rocess ess Soluti tions

• ns

~ 2 26% - 30% [+9pp] ~ 3 31.0% [+1pp] pp]

• thereof Biological Industries

1pp slightly dilutive

• thereof Danaher portfolio

3.5pp

• 0.5pp

Lab Products ucts & Services es ~ 1 10% - 14% ~ 2 20.0%

• thereof Biological Industries

2.5pp slightly dilutive

• thereof Danaher portfolio

10pp 1.5pp

• CAPEX ratio ~10% (FY 2019: 12.3%); net

debt to underlying EBITDA slightly below 2.75 (previously around 2.75; FY 2019: 2.0)

• FY 2020 tax rate expected at 30% (+2.2 pp
• vs. PY) due to accounting of tax risks
• Guidance based on the assumption that

supply chains are stable and production lines remain in operation

• Mid-term guidance up to 2025 unchanged

1 In constant currencies FY 2020 Guidance | H1 2020 Results

Appendix

45

46

High entry barriers, low price- sensitivity and consolidated competitive landscape Biopharma market fueled by long-term growth drivers Leading market positions in key technologies and high brand awareness Global presence with strong base in growth regions Diversified revenue base and high share of recurring revenues provide low volatility Proven growth track record: Sales CAGR of ~14% over the last five years

1 2 3

Appendix

Sartorius shares – an attractive investment

Sartorius Stedim Biotech S.A.

Stock market listed in France

47 1 Information on shareholdings and shares in free float pursuant to the disclosure requirements of Sections 33 et seq. of the German Securities Trading Act (WpHG) and the shareholders’ own disclosures. These reporting obligations and own disclosures refer only to voting shares and not to non-voting preference shares.

100% ~74%

Other Sartorius Subsidiaries Lab Products & Services Division Bioprocess Solutions Division Sartorius Group Operational Setup Sartorius AG

Stock market listed in Germany1 >50% Administered by executor ~34% Bio-Rad Laboratories ~9% Treasury shares ~5% Family owned ~2% Free float

Ordinar inary shar ares

~74% Sartorius AG ~26% Free float

Sartorius Group Legal Setup

~91% Free float ~9% Treasury shares

Preference shares

Appendix

Sartorius legal & operational structure

48 1 Excluding treasury shares held by Sartorius AG 2 As of July 21, 2020

Share e key key facts

ISIN DE0007165631 (preference share) | DE0007165607 (ordinary share) Ticker cker SRT3 (preference share) | SRT (ordinary share) Number ber of

• f

68,388,292 - thereof preference shares: 34,176,068 shares es1

1

• rdinary shares: 34,212,224

Indices ices DAX 50 ESG | MDAX | TecDAX | MSCI Germany Index | CDAX | Prime All Share Index | Technology All Share Index | STOXX Europe 600 Marke ket t cap.2 €21.3bn

Appendix

Share price performance

0% 100% 200% 300% 400% 500% 600% Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sartorius (prefs.) Sartorius (ord.) Sartorius Stedim Biotech DAX MDAX NASDAQ Biotech

49

Fluid management Purification Filtration Fermentation

Appendix

A sampling of the Bioprocess Solutions’ product portfolio

50

Pipettes Bioanalytics Lab balances | Lab water systems Lab filtration | Microb. analysis

Appendix

A sampling of the Lab Products and Services’ product portfolio

51

Recap 2020 targets and initiatives

2020 targets Strategic initiatives

Appendix

~ 26-27% 27%

EBITDA margin

~ 1/4

Acquisitions

~ 3/4

Organic

~€2b 2bn

Sales revenue

Regiona

• nal
• Gain share in North America
• Leverage strong market growth in Asia

Portf tfoli

• lio
• Complementary extensions through

alliances and acquisitions

• Own product development

Opera rati tion

• ns
• Expansion of production capacity
• Significant investments into IT infrastructure

2020 targets are based on 2015 currency exchange rates; EBITDA excluding extraordinary items; around three-quarters of the growth expected to be achieved organically and around one-quater by acquisitions

52

Rainer r Lehma mann nn, , CFO

Joined Sartorius in 2005 Member of the Board since 2017 Finance, Information Technology, Business Processes

Joachi him m Kreuzb zburg, urg, CEO

Joined Sartorius in 1999 Member of the Board since 2003 Group Strategy, Corporate Research, Human Resources, Legal & Compliance, Communications

René Fáber

Joined Sartorius in 2002 Member of the Board since 2019 Bioprocess Solutions Division

Gerry ry Mackay

Joined Sartorius in 2015 Member of the Board since 2019 Lab Products & Services Division

Appendix

Executive Board of Sartorius AG

53

Petra ra Kirchhof hoff Head of Corporate Communications & IR Phone: +49.551.308.1686 E-mail: petra.kirchhoff@sartorius.com Sartorius Corporate Administration GmbH Otto-Brenner-Straße 20 37079 Göttingen, Germany

• October

ber 20, 2020 Publication Nine-Month Results 2020 | Göttingen Ben Orzel elek ek Head of Investor Relations Phone: +49.551.308.1668 E-mail: ben.orzelek@sartorius.com

Appendix

Financial calendar and contacts

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