Simplifying Progress Investors Presentation 9M 2020 Results - - PowerPoint PPT Presentation

▶
simplifying progress investors presentation
SMART_READER_LITE
LIVE PREVIEW

Simplifying Progress Investors Presentation 9M 2020 Results - - PowerPoint PPT Presentation

Apr 29, 2023 329 likes •956 views

Simplifying Progress Investors Presentation 9M 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

9M 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

Overview ew | Strateg tegy Bioprocess Solutions Division Lab Products & Services Division FY 2020 Guidance | 9M 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

~€2.3 2.3bn bn

Sales revenue 2020e

~16.0% .0%

Sales CAGR1 2015-2020e

~29. 9.5% 5%

EBITDA margin2 2020e

~ 10,0 ,000

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

€412m ~ ~ €2.3bn

Sales with life science customers Group sales revenue

2020e 2000

~85%

Overview | Strategy

Sartorius at a glance

~35% 5%

slide-6
SLIDE 6

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

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% ~€2.3bn ~€650m +13.6% +13.2%

8

Sales CAGR

~+14.5%

+14.8% EBITDA-margin1 +9.8pp

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

Sales revenue has more than doubled over the last 5 years

~€733m ~29.5

slide-9
SLIDE 9

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

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

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

slide-11
SLIDE 11

Life Science assets from Danaher

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 Divestment Intec Division Biological Industries BIA Separations 2019

slide-12
SLIDE 12

12

Recent acquisitions significantly strengthen positioning of both divisions

Overview | Strategy

May 2020

Date of consolidation

~$170m

Sales revenue in 2019

+ 300

Employees

~$825m 5m

Purchase price Acquisi isiti tion

  • n of selec

ected ted life science nce assets ts from

  • m Danaher

er

  • Assets include bioanalytical tools for LPS; upstream and

downstream technologies for BPS Acquisi isiti tion

  • n of Biolog
  • gic

ical l Industr tries es

  • Dec. 2019

Date of consolidation

~€20 20-25m 5m

Sales revenue in 2019

+ 130

Employees

~€45m 5m

For 50%+1 of shares

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

13

BIA Separations to become part of Sartorius

Acquisition terms and financials

  • Transaction volume of €360mn; €240mn in cash, €120mn in SSB shares
  • Performance-based earn-out payments over the next five years
  • ~€25mn sales revenue in 2020, very strong double-digit growth rates; margin accretive
  • Expected to close in Q4/2020; subject to customary closing conditions
  • No material impact on P&L in 2020
  • Fully consolidated in Bioprocess Solutions division

Closing and consolidation Strategic rationale

  • Market-leading technology for purification in advanced therapy processes
  • Highly complementary to current purification offering and to advanced therapy

portfolio

Overview | Strategy

slide-14
SLIDE 14

14

Sartorius 2025 ambition 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

slide-15
SLIDE 15

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 15 Overview | Strategy

Sartorius 2025 ambition per division

slide-16
SLIDE 16

16

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 c crisis with h significan cantly tly diffe feren rent t effects ects in the divi visi sions ns

  • 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-17
SLIDE 17

Agenda

17

Overview | Strategy Bioproce

  • cess Soluti

tions ns Division Lab Products & Services Division FY 2020 Guidance | 9M 2020 Results

slide-18
SLIDE 18

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

slide-19
SLIDE 19

19

Generating revenue throughout the lifecycle of a biopharma drug

Clinical inical (4-7 years) Preclinica linical (1 year) Stag age Scale ale 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

Comm mmer ercia cial (15+ years)

Bioprocess Solutions

slide-20
SLIDE 20

20

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 UPSTR TREAM EAM DOWNSTR STREAM EAM

Final filling

slide-21
SLIDE 21

21 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-22
SLIDE 22

22 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-23
SLIDE 23

23

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-24
SLIDE 24

24

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-25
SLIDE 25

25

BIA Separations - Bioprocessing innovator, addressing bottlenecks in advanced therapies

Ajdovščina, Slovenia ~120 employees Quadrupling production capacity till end 2021

Monolithic columns

Portf tfoli

  • lio
  • Pre-packed monolithic columns optimized for purification in

advanced therapy processes (e.g. viruses, plasmids, exosomes)

  • Provides significantly higher yield by avoiding shearing effects which
  • ccur in traditional purification processes, e.g. in chromatography

Positi tioni

  • ning

ng

  • Monoliths already used in production of first commercialized

advanced therapeutics

  • Strong presence in (pre-) clinical projects

Bioprocess Solutions

slide-26
SLIDE 26

26

Biologi gics cs market et growth th forecast cast

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-27
SLIDE 27

27

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-28
SLIDE 28

28

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

slide-29
SLIDE 29

29

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

Pioneer and leader in the growing single-use technology market

slide-30
SLIDE 30

30

  • 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

Clinical al Phase e II Clinical al Phase e I Clinical al Phase e III Probability that candidate advances to next stage Probability of approval ~ ~ 60% 60% ~ ~ 10% ~ ~ 30% 30% ~ ~ 15 % ~ ~ 50% 50% ~ ~ 50% 50%

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

slide-31
SLIDE 31

31 Bioprocess Solutions

Analytical technologies to improve process economics and safety

  • Bioprocess sensors, analyzers 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

  • Intention to upgrade Umetrics software suite with advanced

analytics technologies such as AI and machine learning

  • Data analytics just at the beginning in biomanufacturing with

high potential

slide-32
SLIDE 32

32

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-33
SLIDE 33

33

  • 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

Sales s 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

slide-34
SLIDE 34

2

~+16. 6.0% 0% Organic CAGR1

34 1 CAGR 2014 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

slide-35
SLIDE 35

Agenda

35

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

  • n

FY 2020 Guidance | 9M 2020 Results

slide-36
SLIDE 36

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

36

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-37
SLIDE 37

37

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

Applied Research sales

~50% 0%

Life Science Research sales

~50% 0%

  • 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 and filtration

  • Addresses QC/QA laboratories in

food & beverage and chemical industry among others

Lab Products & Services

slide-38
SLIDE 38

38

  • 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-39
SLIDE 39

39 Based on data from the Tufts Center for the Study of Drug Development and 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; increase time-to-market

Lab Products & Services

Bioanalytical tools to address customers pain points

>10 years

From drug discovery to approval

>€2b 2bn

Average costs of developing a successful drug

~10 %

Probability of clinical success (Phase I to approval)

1-2 years 1 year 4-7 years 4-5 years Drug discovery Preclinical testing Clinical trials Drug approval

slide-40
SLIDE 40

40

Overview of bioanalytical portfolio

Soluti utions

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

and secreted proteins Soluti utions

  • ns for protei

tein n analysis

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

interactions Competi petiti tive e environm ronment ent

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

Lab Products & Services

slide-41
SLIDE 41

41 Lab Products & Services

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

Appli licati tion

  • n example

ple: : Molecul ule devel elopment

  • pment

Octet et Identify high-producing clones in expression library ambr br15 15 (BPS division ision) Culture identified clones

  • n small-scale

IncuCyte Cyte | iQueScr eScreene eener Selection of lead candidates and functional characterization

Appli licati tion

  • n example

ple: : Cell line devel elopm

  • pment

ent

iQueScre eScreene ner Screening of antibody libraries for target-reactive candidates Octet et Measure how strong the identified antibodies bind to their target and rank Octet et | iQueScr eScreene eener Analysis and characterization

  • f cell line and antibodies
slide-42
SLIDE 42

42

~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

slide-43
SLIDE 43

Agenda

43

Overview | Strategy Bioprocess Solutions Division Lab Products & Services Division FY 20 2020 20 Guidan ance ce | 9M 9M 20 2020 20 Resu sults ts

slide-44
SLIDE 44

44 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

9M 2 2019 9M 2 2020 in % in % cc1 Sales revenue 1,355.8 1,680.0 +23.9 +25.2 Order intake 1,435.0 1,956.5 +36.3 +37.8 Underlying EBITDA2 361.1 488.7 +35.3 Underlying EBITDA2 margin in % 26.6 29.1 +2.5pp Underlying EPS3 (ord.) in € 2.23 3.08 +38.0 Underlying EPS3 (pref.)in € 2.24 3.09 +37.8

  • Acquisitions contribute close to +6pp to sales growth; net effect from pandemic approx. +6pp / approx. +10pp for order intake
  • Underlying EBITDA margin driven by economies of scale and lower costs in some areas due to pandemic; acquisitions with no

relevant effects; dilutive effect from currencies of about half a percentage point

Strong profitable growth

FY 2020 Guidance | 9M 2020 Results

slide-45
SLIDE 45

Americas cas

€ in millions

45

EMEA EMEA

€ in millions

Asia|Paci acifi fic

€ in millions

  • Americas: strong organic growth for BPS; LPS supported by acquisitions and with positive trend in Q3
  • EMEA: BPS with strong performance; solid performance of LPS considering economic challenges
  • Asia|Pacific: BPS with the highest order momentum; LPS demand further improved after lockdown lifted in China
  • Acc. to customers‘ location; growth in constant currencies

Sales by by Region

in %

348.1 421.5 .5

9M 2019 9M 2020

461.7 586.0

9M 2019 9M 2020 Asia|Pacific

~ 2 25%

Americas

~ 3 35%

EMEA

~ 40% 546.1 672.6

9M 2019 9M 2020

+28.7% +23.3% +23.6% €1,680.0m

Double-digit sales growth in all geographies

FY 2020 Guidance | 9M 2020 Results

slide-46
SLIDE 46

Order r Intake ke

€ in millions

46

Sales s Reve venue ue

€ in millions

Underlying ying EBITDA TDA & Margin n

€ in millions

290.5 410.5

9M 2019 9M 2020

1,084.0 .0 1,546.8 .8

9M 2019 9M 2020

1,009.0 1,288.1 .1

9M 2019 9M 2020

28.8% 31.9%

  • Strong organic growth; pandemic-driven effects presumably around 10pp (approx. half of that from demand related to

coronavirus vaccines and therapeutics and other half from inventory build-up), acquisitions accounted for approx. 4pp of growth

  • Pandemic-driven effects estimated at around 15pp of order intake growth
  • Underlying EBITDA margin rose due to economies of scale, despite slight FX dilution

+44.2% cc +42.7% +41.3% +29.0% cc +27.7%

BPS: High growth across all product segments and regions

1 1 1 1 9M 2019 figures reported: Order intake €1,100.0m, sales €1,025.0m, underlying EBITDA €300.6m FY 2020 Guidance | 9M 2020 Results

slide-47
SLIDE 47

Order r Intake

€ in millions

47

Sales Revenue ue

€ in millions

Underlying ng EBITDA TDA & Margin n

€ in millions

70.6 78.2

9M 2019 9M 2020

351.0 409.7

9M 2019 9M 2020

346.8 391.9

9M 2019 9M 2020

20.4% 20.0%

  • Recovery effects in Q3 and positive development of bioanalytics after a difficult first half due to pandemic
  • Acquisitions contribute around 12pp to sales growth; net effect from pandemic more than -3pp
  • Underlying EBITDA margin influenced by approx. half a percentage point dilutive FX effect

+18.1% cc +16.7% +14.2% cc +13.0% +10.8%

LPS: Robust sales development

1 1 1 1 9M 2019 figures reported: Order intake €335.0m, sales €330.8m, underlying EBITDA €60.5m FY 2020 Guidance | 9M 2020 Results

slide-48
SLIDE 48

48 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

9M 2 2019 9M 2 2020 in % Underlying EBITDA 361.1 488.7 +35.3 Extraordinary items

  • 18.5
  • 30.4

n.m. Financial result

  • 17.9
  • 28.3

n.m. Underlying net profit1,2 153.2 211.2 +37.9 Reported net profit2 121.3 149.1 +22.9 Operating cash flow 254.1 380.0 +49.6 Investing cash flow3

  • 175.6
  • 911.0

.0 n.m. CAPEX ratio (in %) 12.5 8.0

  • 4.5pp
  • Net operating cash flow mostly driven by higher

earnings and factoring program (~€97m)

  • Extraordinary items influenced by M&A
  • Investing cash flow includes acquisition of

Danaher portfolio in Q2

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

accounting of tax risks, not cash-effective in 9M

Operating cash flow increases significantly

FY 2020 Guidance | 9M 2020 Results

slide-49
SLIDE 49

49

Key Financi cial al Indica cators tors

Sartor

  • rius

us Group

  • Dec. 31,

2019

  • Sep. 30,

2020

Equity ratio in %

38.1 29.2 29.2

Net debt in millions of €

1,014.0 1,610.3

Net debt | underlying EBITDA

2.0 2.5 2.5

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 on very solid level

Q1-Q3 2020

  • Balance sheet and equity ratio influenced by the recent

acquisitions and higher cash position

FY 2020 Guidance | 9M 2020 Results

slide-50
SLIDE 50

50

Outlook for 2020 specified and slightly increased; uncertainty remains

FY 2020 Guidance nce1 Sales revenue growth Underlying EBITDA margin previous

  • us

change / / new previous

  • us

change / / new Sartor

  • rius

us Group ~ 2 22% - 26%

upper end or sligh ightly tly above ve

~ 2 22% - 26% ~ 2 28.5% + 1 pp → ~ 29.5%

  • thereof acquisitions

~6.5pp ~6.5pp slightly dilutive neutral

Bioproc rocess ess Soluti tions

  • ns

~ 2 26% - 30%

upper end or sligh ightly tly above ve

~ 2 26% - 30% ~ 3 31.0% + 1 pp → ~ 32.0%

  • thereof acquisitions

~4.5pp ~4.5pp slightly dilutive neutral

Lab Products ucts & Services es ~ ~ 10% - 14 14%

upper end or sligh ightly tly above ve

~ 1 10% - 14% ~ 2 20.0% + 1 pp → ~ 21.0%

  • thereof acquisitions

~12.5pp slightly above ~12.5pp slightly accretive slightly accretive

1 In constant currencies

  • CAPEX ratio ~10% (unchanged); net debt to underlying EBITDA remains projected slightly below ~2.75
  • Acquisition of Biological Industries included for 12 months; life science portfolio from Danaher included for approx. 8 months;

closing of the acquisition of BIA Separations expected before year end

  • Guidance based on the assumption that logistics chains continue to be stable and production lines remain in operation

FY 2020 Guidance | 9M 2020 Results

slide-51
SLIDE 51

Appendix

51

slide-52
SLIDE 52

To Sartorius, sustainability means operating responsibly

  • ver the long term – with respect to business partners,

employees and society as well as to natural resources. Learn more about our commitment: SRI Presentation Please click below for further financial information: Earnings Release 9M 2020 Half-Year Report H1 2020 Earnings Release Q1 2020 Annual Report 2019

52

Corporate responsibility & further financial information

Appendix

slide-53
SLIDE 53

53

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-54
SLIDE 54

Sartorius Stedim Biotech S.A.

Stock market listed in France

54 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

slide-55
SLIDE 55

55 1 Excluding treasury shares held by Sartorius AG 2 As of October 20, 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 €24.3bn

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 MSCI Europe

slide-56
SLIDE 56

56

Fluid management Purification Filtration Fermentation

Appendix

A sampling of the Bioprocess Solutions’ product portfolio

slide-57
SLIDE 57

57

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

Appendix

A sampling of the Lab Products and Services’ product portfolio

slide-58
SLIDE 58

58

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

slide-59
SLIDE 59

59

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

slide-60
SLIDE 60

60

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

  • January

ary 27, 2021 Publication Preliminary Full-Year 2020 Results | Göttingen

  • March 26, 2021

Annual Shareholders' Meeting | Göttingen

  • April

l 21, 2021 Publication First-Quarter Results 2021 | 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

slide-61
SLIDE 61

Visit our IR website or click here.