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

▶
simplifying progress investors presentation
SMART_READER_LITE
LIVE PREVIEW

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

Oct 22, 2023 33 likes •614 views

Simplifying Progress Investors Presentation H1 2020 Results Disclaimer This presentation contains statements concerning the future performance of the Sartorius Group. These statements are based on assumptions and estimates. Although we are

slide-1
SLIDE 1

Simplifying Progress Investors Presentation

H1 2020 Results

slide-2
SLIDE 2

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

slide-3
SLIDE 3

Agenda

3

Ove Overvi view | S Str trat ategy gy Bioprocess Solutions Division Lab Products & Services Division FY 2020 Guidance | H1 2020 Results

slide-4
SLIDE 4

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.

slide-5
SLIDE 5

Based on FY 2020 guidance midpoints 1 For continued operations, in constant currencies 2 Excluding extraordinary items 5

~€2.2b .2bn

Sales revenue 2020e

~15. 5.5% 5%

Sales CAGR1 2015-2020e

~28. 8.5% 5%

EBITDA margin2 2020e

~ 1 10,000 0,000

Employees

60 60+

Locations worldwide, headquartered in Göttingen, Germany Hi High h exp exposure to to attr ttractive bi biopharma and d li life e science indus dustry

€412m 2m ~ ~ €2. €2.2bn bn

Sales with life science customers Group sales revenue

2020e 2000

~85% 85%

Overview | Strategy

Sartorius at a glance

~35% 35%

slide-6
SLIDE 6

6

Strategic focus of both divisions on the biopharma value chain

Overview | Strategy

Lab Products & Services Division

Quality | Testing | Validation

Upst stream am & & downstre tream p prod roducti tion

  • n

Molec ecul ule e dev devel elopment Cell line ne and and process ss develop

  • pment

nt Bioprocess Solutions Division

slide-7
SLIDE 7

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

slide-8
SLIDE 8

€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 2100

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e

+12.6% +16.0% +18.2% +9.3% +8.8% ~€2.2bn ~€650m +13.6% +13.2%

8

Sales CAGR

~+1

+14.5% 5%

+14.8% EBITDA-margin1 +8

+8.8pp

Sales growth and CAGR 2011-20 for continued operations, in constant currencies; 2020 based on guidance midpoint 1 Excluding extraordinary items Sales revenue EBITDA1 marginin % Intec Division; divested in 2|2015 Overview | Strategy

Sales revenue has more than doubled over the last 5 years

~€733m ~28.5

slide-9
SLIDE 9

9 CAGR for continued operations, in constant currencies

53% 25% 22%

2011

~€650m €650m

40% 35% 25%

2019

~€1 €1.8b 8bn

22% 51% 27%

2019

~€24 €240b 0bn

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

slide-10
SLIDE 10

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

CAPEX CAPEX ratio atio

in %

CAPEX CAPEX compositio sition 2020 2020

2

10

Expansion of fermenter production capacities

Overview | Strategy

Infrastructure prepared for further organic growth

slide-11
SLIDE 11

11

Acq cquis isit itio ion crite teri ria 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

slide-12
SLIDE 12

12

Recent acquisitions significantly strengthen positioning of both divisions

Overview | Strategy

May May 202 2020

Date of consolidation

~$170m 0m

Sales revenue in 2019

+ 300 300

Employees

~$ ~$85 850m

Purchase price Acq cquis isit itio ion of s f selected l life ife s scie ience ce a assets fr from Danaher

  • Assets include bioanalytical tools for LPS; upstream and

downstream technologies for BPS Acq cquis isit itio ion of f Bio iologica ical Industrie ies

De

  • Dec. 2019

2019

Date of consolidation

~€20 ~€20-25 25m m

Sales revenue in 2019

+ 130 130

Employees

~€45m 45m

For 50%+1 of shares

  • Developer and manufacturer of cell culture media
slide-13
SLIDE 13

13

Sartorius 2025 ambition and initiatives

2025 targets Strategic initiatives

Reg Regional

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

Portf tfolio

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

Opera ration

  • 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% 8%

EBITDA margin

~ 1/3 1/3

Acquisitions

~ 2/3

Organic

~€4bn 4bn

Sales revenue

Overview | Strategy

slide-14
SLIDE 14

SSB | BP SSB | BPS Sa Sart rtori rius Gro Group up LPS LPS

~€2 ~€2.8b 8bn

Sales revenue

~30% ~30%

EBITDA margin

~€1.2bn .2bn

Sales revenue

~25% ~25%

EBITDA margin

~28% ~28%

EBITDA margin

~€4 ~€4bn

Sales revenue

2025 targets are based on 2017 currency exchange rates; EBITDA excluding extraordinary items 14 Overview | Strategy

Sartorius 2025 ambition per division

slide-15
SLIDE 15

15

Our products are widely used in the development and production of biologics against COVID-19

180+ companies

developing corona vaccines The majority work with Sartorius products Pandemic crisis with significantly different effects in the divisions

  • BPS benefits from demand related to the

development and production of vaccines and therapeutics against COVID-19; consequences from delays in clinical trials not clear yet

  • LPS affected by softer macroeconomic

environment; postive effects on products that are used for testing

Overview | Strategy

slide-16
SLIDE 16

Agenda

16

Overview | Strategy Biopro roces cess Solu

  • luti

tions

  • ns Divis

Division

  • n

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

slide-17
SLIDE 17

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

17

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

slide-18
SLIDE 18

18

Generating revenue throughout the lifecycle of a biopharma drug

Clini nica cal (4-7 years) Precl clini nica cal (1 year) Stag age Scal cale Process development Proof of concept - pilot Large

  • Wide product range of equipment and consumables for all stages (from pre-commercial to large-scale manufacturing);
  • ptimal scalability
  • Engineering support with excellent application knowhow and understanding of the entire bio-production process
  • Production process of each individual drug is subject to validation by health authorities (e.g. FDA, EMA) and part of the drug

approval

Commercia ial (15+ years)

Bioprocess Solutions

slide-19
SLIDE 19

19

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

Bioprocess Solutions

Covering most steps of the biopharmaceutical manufacturing process

  • Differentiated by the range

and completeness of the portfolio

  • Excellent positioning in key

single-use technologies

  • Internationally recognized

supplier enabling innovation in bioprocessing through own R&D and partnerships UPSTREAM AM DOWNS NSTR TREAM AM

Final filling

slide-20
SLIDE 20

20 Bioprocess Solutions

Integrated services and technologies for all types of biopharmaceuticals

Vaccines Engineered tissue Bioconjugates mAbs Regenerative medicine

  • ~

~ 95% of BPS revenue generated with bio/pharma customers

  • Antibodies are most relevant; strong

position in vaccines as well

  • BPS provides solutions for the

development and production of all biotechnologically derived drugs and cell derivatives

  • These also include new modalities such as

cell and gene therapies and viral vectors

slide-21
SLIDE 21

21 Bioprocess Solutions

Competitive portfolio across our relevant end-markets

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

slide-22
SLIDE 22

22

Acquisition of selected Danaher life science assets strengthens chromatography portfolio

  • Assets include chromatography systems, columns and resins; indispensable for the purification of biologics
  • Well-established technologies and innovative solutions in the high-growth areas of single-use and intensified purification
  • Complement existing membrane-based solutions enabling Sartorius to support purification strategies at all scales

Systems Resins Columns

Bioprocess Solutions

slide-23
SLIDE 23

23

Recent acquisitions also strengthen offering in other key technologies

Cell culture media2

  • Extensive portfolio of cell culture media with focus on

advanced therapies (e.g. cell and gene therapies)

  • Gives Sartorius own production and development

capabilities

  • Access to customers in an increasingly important and

fast-growing market Microcarriers1 Tangential flow filtration systems1

  • To support growth of adherent

cell cultures

  • Closing last gaps in TFF portfolio
  • Highly competitive product portfolio

1 Part of the selected life since assets acquired from Danaher in Q1 2020; 2 Product portfolio of Biological Industries acquired in Q4 2019 Bioprocess Solutions

slide-24
SLIDE 24

24

Biologi iologics mar marke ket gr growt

  • wth for

forecas ast

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

Bioprocess Solutions

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

2019 2023 CAGR

slide-25
SLIDE 25

25

Rapidly growing importance of the Chinese market

  • Huge market potential due to population size

and growing average demand

  • Biopharma market development priority for China
  • Growth of fermentation capacity in China of 80%

(2018 to 2022)

  • Rapid change from traditional Chinese medicine to

innovation in biopharma

  • Sartorius with long-standing local presence;

further expansion planned

Production and sales Sales

Beijing Shanghai

Bioprocess Solutions

slide-26
SLIDE 26

26

3 1 7 22 20 15

2012 2013 2014 2015 2016 2017 2018 2019

Growi wing nu number of

  • f biosi
  • similar

ar app approval als

E.U. and U.S.

Biosi similar ars wi will ou

  • utperform the biol
  • logics mar

arket

€ 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

slide-27
SLIDE 27

27

Single-us use e marke ket t pen enet etrati tion e expec ected to increa ease e 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

Pioneer and leader in the growing single-use technology market

slide-28
SLIDE 28

28

  • Construction of stainless-steel based facilities takes longer and is more complex compared to single-use
  • Therefore, investment in stainless-steel facilities has to start in early clinical phase II
  • The construction of single-use facilities may start in clinical phase III, reducing investment risks of our clients

Bioprocess Solutions

Single-use allows manufacturers to mitigate investment risks

Clin inica ical Phase II Clin inica ical Phase I Cli Clinical Pha hase III III Probability that candidate advances to next stage Probability of approval ~ ~ 60% 60% ~ ~ 10 10% ~ ~ 30% 0% ~ ~ 15 15 % % ~ ~ 50% 50% ~ ~ 50% 50%

Data based on: Wong et al. (2018): Estimation of clinical trial success rates and related parameters

slide-29
SLIDE 29

29 Bioprocess Solutions

Analytical technologies to improve process economics and safety

  • Bioprocess

ss senso sors, , analyz yzers and software

  • Collect, monitor and control quality-critical parameters
  • Analyze data to obtain a better process understanding
  • Use knowledge for process development, optimization and

automation

  • Allows customers to increase time-to-market, to reduce

COGS, to improve process robustness and product quality

  • Data analytics just at the beginning in biomanufacturing with

high potential

slide-30
SLIDE 30

30

High innovation dynamics in Biopharma

Development of new drugs and vaccines must be accelerated, e.g. through more automation Increased efficiency possible in the production of 'classic' biopharmaceuticals and biosimilars New tools and methods required e.g. for novel cell and gene therapies Future drug manufacturing is more automated, intensified and scalable

Bioprocess Solutions

slide-31
SLIDE 31

31

  • 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

100 200 300 400

Sal Sales to

  • Top
  • p 50 custo

tomers rs

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

slide-32
SLIDE 32

2

~+1 +15. 5.5% 5% Org

Organic CAGR CAGR1

32 1 CAGR 2014 to 2020e, excluding FX effects and acquisitions 2 Midpoint of 2020 guidance

2014 2015 2016 2017 2018 2019 2020

Pharma rma market ket Biopharma market ket Single-us use pene netra rati tion

  • n

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

  • Esp. in North

America

Bioprocess Solutions

Four strong pillars drive above-average growth

slide-33
SLIDE 33

Agenda

33

Overview | Strategy Bioprocess Solutions Division Lab Lab Pr Produ

  • ducts

ts & & Servi vices Divi s Division

  • n

FY 2020 Guidance | H1 2020 Results

slide-34
SLIDE 34

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

34

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

slide-35
SLIDE 35

35

Portfolio includes lab essentials and bioanalytical instruments; increased focus on life science end-market

Applied Research sales

~50% 50%

Life Science Research sales

~50% 50%

  • Lab balances, pipettes, lab water

systems and filtration for bio/pharma QC/QA

  • ~30% share of bioanalytics; used for

analysis of cells or biomolecular interactions in drug and cell line development

  • Lab balances, pipettes, lab water

systems, lab filtration

  • Addresses QC/QA laboratories in

food & beverages, chemicals industry as well as academia

Lab Products & Services

slide-36
SLIDE 36

36

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

economies of scale

  • Growth potential especially in the U.S. and

Asia

  • Market growth related to R&D spending in

the individual end markets Lab balances Lab filtration

#2 #2 #3 #3

Pipettes

#4 #4

  • Microb. analysis

#2 #2

Lab Products & Services

Strong market position in essential laboratory product categories

slide-37
SLIDE 37

37 Based on data from the Tufts Center for the Study of Drug Development and the Association of the British Pharmaceutical Industry

Our a Our approach

  • Facilitate digitalization

and automatization

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

molecule development

Lab Products & Services

Bioanalytical tools to address customers pain points

>10 ye 10 year ars

From drug discovery to approval

>€2 €2bn bn

Average costs of developing a successful drug

~10 % ~10 %

Probability of clinical success (Phase I to approval)

slide-38
SLIDE 38

38

Overview of bioanalytical portfolio

So Solutions for

  • r cell anal

analysis

  • IncuCyte: Real-time imaging and analysis of living cells
  • iQue Screener: Rapid, high content analysis of cells, beads

and secreted proteins So Solutions for

  • r pr

protein anal analysis

  • Octet: Real-time, label-free measurement of biomolecular

interactions Comp mpet etiti tive e enviro ronmen ent

  • Becton Dickinson
  • Beckman Coulter
  • Bio-Rad
  • Cytiva
  • Merck
  • PerkinElmer
  • Thermo Fisher
  • ...

Lab Products & Services

slide-39
SLIDE 39

39 Lab Products & Services

Solutions complement each other, optimize successive workflows and have synergies with BPS products

Application exa example le: : Mol

  • lecule dev

devel elopment

Octet et Identify high-producing clones in expression library am ambr15 (BP 5 (BPS divis isio ion) Culture identified clones

  • n small-scale

Incu ncuCyt yte | | iQueS ueScree reener Selection of lead candidates and functional characterization

Application exa example le: Cell Cell line ne dev devel elopment

iQueScreen eener er Screening of antibody libraries for target-reactive candidates Octet et Measure how strong the identified antibodies bind to their target and rank Oct ctet | | iQueS ueScree reener Analysis and characterization

  • f cell line and antibodies
slide-40
SLIDE 40

40

~3.4 ~4.3 ~1.2 ~1.9

2019 2025

Addr Addressa ssable ble mar marke ket of t of LPS 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

slide-41
SLIDE 41

Agenda

41

Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 202 2020 G Guida danc nce | | H1 H1 202 2020 R Result lts

slide-42
SLIDE 42

42 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

Sart rtori rius G Grou

  • up

in millions of € unless otherwise specified

H1 2 1 2019 19 H1 20 2020 20 in % n % in % c n % cc1 Sales revenue 894.7 1, 1,05 056. 6.8 +18.1 +17.9 Order intake 974.3 1,244. 44.8 +27.8 +27.5 Underlying EBITDA2 237.6 29 293.5 +23.5 Underlying EBITDA2 margin in % 26.6 27 27.8 +1.2pp Underlying EPS3 (ord.) in € 1.48 1. 1.81 +22.5 Underlying EPS3 (pref.)in € 1.49 1. 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

slide-43
SLIDE 43

Americ icas as

€ in millions

43

EMEA EMEA

€ in millions

Asia| Asia|Pa Pacific

€ 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

Sale ales s by by Regi gion

  • n

in %

224 224.5 264.2 .2

H1 2019 H1 2020

308.2 .2 373. 3.1

H1 2019 H1 2020 Asia|Pacific

~ 2 ~ 25%

Americas

~ 3 ~ 35%

EMEA

~ 40 40% 362 62.0 419.5 .5

H1 2019 H1 2020

+19.7 % +18.4% +16.0 % €10 1056 56.8m 8m

Double-digit growth in all geographies

FY 2020 Guidance | H1 2020 Results

slide-44
SLIDE 44

Or Orde der Intake ntake

€ in millions

44

Sale ales R s Reve venue

€ in millions

Unde Underlying EB lying EBITDA A & Mar Margin gin

€ in millions

19 191. 1.5 247.2 47.2

H1 2019 H1 2020

735.6 .6 984.9

H1 2019 H1 2020

665.8 809.3 .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

slide-45
SLIDE 45

Or Orde der Intake ntake

€ in millions

45

Sale ales R s Reve venue

€ in millions

Unde Underlying EB lying EBITDA A & Mar Margin gin

€ in millions

46 46.2 .2 46 46.4 .4

H1 2019 H1 2020

238.8 .8 259.9 .9

H1 2019 H1 2020

228 228.9 247. 47.5

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

slide-46
SLIDE 46

46 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

Sart rtori rius G Grou

  • up

in millions of € unless otherwise specified

H1 2 1 2019 19 H1 20 2020 20 in % n % Underlying EBITDA 237.6 29 293.5 +23.5 Extraordinary items

  • 10.6
  • 26

26.1 n.m. Financial result

  • 9.9
  • 20

20.3 n.m. Underlying net profit1,2 101.5 124 24.3 +22.4 Reported net profit2 82.3 81. 1.1

  • 1.5

Opera rating ng cash flow

  • w

165.1 21 215.4 +30.4 Invest sting cash ash flow

  • w3
  • 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

slide-47
SLIDE 47

47

Ke Key y Financ inancial I l Indic ndicator

  • rs

Sart rtori rius G Grou

  • up
  • Dec. 31,

2019 June ne 30, 30, 202 2020

Equity ratio in %

38.1 30.1 30.1

Net debt in millions of €

1,014.0 1,669. 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)

Ne Net De Debt and bt and Ne Net De Debt to bt to Unde Underlying lying EB EBITDA

Financial indicators remain robust

Q1-Q2 2020

  • Balance sheet influenced by the recent acquisitions

FY 2020 Guidance | H1 2020 Results

slide-48
SLIDE 48

48

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

FY FY 2020 Gui Guida dance1 [chan ange vs.

  • vs. prev

evious us guidan ance]

Sales revenue growth Underlying EBITDA margin

Sart rtori rius G Grou

  • up

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

  • thereof Biological Industries

1.5pp slightly dilutive

  • thereof Danaher portfolio

5pp neutral

Bioprocess ss Soluti utions ~ 26 26% % - 30% 0% [+ [+9p 9pp] ~ 31. 1.0% 0% [+ [+1p 1pp]

  • thereof Biological Industries

1pp slightly dilutive

  • thereof Danaher portfolio

3.5pp

  • 0.5pp

Lab Produc ducts & Ser ervices es ~ 1 10% % - 14 14% ~ 20 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

slide-49
SLIDE 49

Appendix

49

slide-50
SLIDE 50

50

High entry barriers, low price- sensitivity and consolidated competitive landscape Biopharma market fueled by long-term growth drivers Favorable 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

slide-51
SLIDE 51

Sartorius Stedim Biotech S.A.

Stock market listed in France

51 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. 1

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

Ordina Ordinary shares ares

~74% Sartorius AG ~26% Free float

Sartorius Group Legal Setup

~91% Free float ~9% Treasury shares

Pref eferen erence e shar shares

Appendix

Sartorius legal & operational structure

slide-52
SLIDE 52

52 1 Excluding treasury shares held by Sartorius AG 2 As of September 10, 2020

Sh Shar are key key facts ts

ISIN DE0007165631 (preference share) | DE0007165607 (ordinary share) Ticker er SRT3 (preference share) | SRT (ordinary share) Num umber er of

  • f

68,388,292 - thereof preference shares: 34,176,068 shares shares1

  • rdinary shares: 34,212,224

Ind ndice ces DAX 50 ESG | MDAX | TecDAX | MSCI Germany Index | CDAX | Prime All Share Index | Technology All Share Index | STOXX Europe 600 Mar arket cap cap.2 €20.9bn

Appendix

Share price performance

50% 150% 250% 350% 450% 550% 650% 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 Sep-20 Sartorius (prefs.) Sartorius (ord.) Sartorius Stedim Biotech DAX MDAX NASDAQ Biotech

slide-53
SLIDE 53

53

Fluid management Purification Filtration Fermentation

Appendix

A sampling of the Bioprocess Solutions’ product portfolio

slide-54
SLIDE 54

54

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

Appendix

A sampling of the Lab Products and Services’ product portfolio

slide-55
SLIDE 55

55

Recap 2020 targets and initiatives

2020 targets Strategic initiatives

Appendix

~ 2 ~ 26-27% 27%

EBITDA margin

~ 1/4 1/4

Acquisitions

~ 3/ 3/4

Organic

~€2 ~€2bn

Sales revenue

Reg Regional

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

Portf tfolio

  • Complementary extensions through

alliances and acquisitions

  • Own product development

Opera ration

  • 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

slide-56
SLIDE 56

56

Ra Rainer er Lehm ehmann, CFO CFO

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

Joachi him m Kreuz uzbur burg, CEO

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

Ren René Fá Fáber ber

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

Gerr Gerry Mackay

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

Appendix

Executive Board of Sartorius AG

slide-57
SLIDE 57

57

Petr tra Kirchho hhoff 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 20, 20 2020 20 Publication Nine-Month Results 2020 | Göttingen Ben Orzele Orzelek Head of Investor Relations Phone: +49.551.308.1668 E-mail: ben.orzelek@sartorius.com

Appendix

Financial calendar and contacts

slide-58
SLIDE 58

Visit our IR website