This is Sartorius€¦ · It is not planned to update our forward-looking statements. ... Pharma market Biopharma market Single-use penetration Market share gains CAGR 4-7%. CAGR

Simplifying Progress

Sartorius Stedim Biotech Investors PresentationFull-Year 2020 Results

This presentation contains statements concerning the future performance of the Sartorius Stedim Biotech 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 | Strategy

Mid-term Growth Prospects

FY 2020 Results | FY 2021 Guidance

Appendix

Sartorius Stedim Biotech

A leading partner of the biopharma 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.

The United Nations’ sustainability goal ‘Good Health and Well-Being’ is thus an integral part of our core business.


Sartorius Stedim Biotech at a glance

5 Overview | Strategy


1 In constant currencies 2 Excluding extraordinary items

~€1.9bn Sales revenue 2020

~16.5%Sales CAGR1 2015-2020

~31.7%EBITDA margin2 2020

> 7,500Employees

>20countries, headquartered in Aubagne, France

Pharmamarket

Biopharmamarket

Single-usepenetration

Market share gains

CAGR 4-7%

CAGR ~10%

Double-digit growth

Esp. in North America

Four strong pillars drive above-average growth

6

Virus clearance & filtration

Chroma-tography

Cryo-preservation

Concen-tration

Sterile filtration

Culture mediapreparation

FermentationSeedcultivation

Scale-up

Clarification & centrifugation

Covering most steps of the biopharmaceutical manufacturing process

UPSTREAM

DOWNSTREAM

Finalfilling

Differentiated by the rangeand completeness of the portfolio

Excellent positioning in key single-use technologies

Internationally recognized supplier enabling innovation in bioprocessing through own R&D and partnerships


Overview | Strategy

7

Generating revenue throughout the lifecycle of a biopharma drug

Stage

Scale

Wide product range of equipment and consumables for all stages (from pre-commercial to large-scale manufacturing); optimal 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

Process development Proof of concept - pilot Large

Preclinical (1 year)

Clinical(4-7 years)

Commercial(15+ years)


Overview | Strategy

8

Integrated services and technologies for all types of biopharmaceuticals

Vaccines

Engineered tissue

Bioconjugates

mAbs Regenerative medicine

~ 95% of revenue generated with bio/pharma customers

Antibodies are most relevant; strong position in vaccines as well

SSB 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


Overview | Strategy

~10% CAGR for biopharmamarket 2020–2025

9

Attractive market environment with strong growth opportunities

Favorabledemographics

9bn people by 2050; >2bn 60 yrs or older

Rise ofbiosimilars

~30% CAGR for biosimilar sales 2020–2025

Strong R&D pipeline; advances in gene and cell therapy

>40% share of biologics in pharma R&D pipeline


Overview | Strategy

10

Sales revenue more than doubled over the last 5 yearsSartorius Stedim Biotech

20.9 21.523.0 23.5

26.227.5 27.3 28.2 29.3

31.7

18.019.020.021.022.023.024.025.026.027.028.029.030.031.032.033.034.035.036.037.038.039.040.0

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

~€884m

Sales CAGR ~+15.5%EBITDA1 margin +10.8pp

+15.9%+19.4%

+20.4%+4.1%

+10.8%

~€1.9bn

+10.3%

+13.7%+18.8%

Sales revenue EBITDA1 margin in %

Sales growth and CAGR in constant currencies 1 Excluding extraordinary items

+34.6%

Overview | Strategy

~€477m

11

Acquisition criteria

Portfolio: Complementary products or technologiesMarket position: Either among the Top 3 or unique selling pointIntegration: Management capacity; cultural fitPrice: Fair valuation; reach Sartorius‘ profitability level in 2-3 years

Overview | Strategy

M&A strategy – adding innovation, enhancing focus

2015 2016 2017 20202018

CellcaBioOutsource

kSep Biological Industries

BIA Separations

2019

Umetrics

2021


WaterSepLife Science assets1

1 Acquired from Danaher

12

Recent acquisitions strengthen portfolio…

May 2020 Date of consolidation

~$100m Sales revenue in 2019

+ 100 Employees

~$275m Purchase price

Acquisition of selected life science assets from Danaher

Portfolio of upstream and downstream technologies

Overview | Strategy

Acquisition of BIA Separations

Technology for purification in advanced therapy processes

Nov. 2020 Date of consolidation

~€25m Sales revenue in 2020e

+ 120 Employees

€360mn Purchase price1

13

…especially in downstream

Dec. 2020

~$2.5m + 15

Acquisition of WaterSep BioSeparations

Innovative hollow fiber crossflow filtration units

Purchase price $27mn plus earn-out

Sales revenue in 2020e

Employees Date of consolidation

Agreement to acquire chromatography processequipment division from Novasep

Resin-based batch and intensified chromatography systems

Purchase price not disclosed

H1 2021~€37m + 100

Sales revenue in 2020e

Employees Closing expected

Overview | Strategy

14

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 SSB to support purification strategies at all scales

Systems ResinsColumns


Overview | Strategy

15

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 Stedim Biotech 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


Overview | Strategy

16

BIA Separations - Bioprocessing innovator, addressing bottlenecks in advanced therapies

Ajdovščina, Slovenia

~120 employees

Quadrupling production capacity till end 2021

Monolithic columns

Portfolio

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 occur in traditional purification processes, e.g. in chromatography

Positioning

Monoliths already used in production of first commercialized advanced therapeutics

Strong presence in (pre-) clinical projects

Overview | Strategy


17

WaterSep BioSeparations – Further broadening our filtration portfolio

Marlborough, USA

~15 employees

R&D and production of membranes and cartridges

Hollow fiber cartridges

Portfolio

Hollow-fiber membrane devices and pre-sterilized assemblies for crossflow filtration applications in upstream and downstream

Addresses customer needs for cost- and time-saving solutions

Stategic fit

Complements offering for cell and gene therapy applications, cell harvesting and various solutions for intensified bioprocessing

Overview | Strategy


18

Competitive portfolio across our relevant end-markets

Pie charts indicate completeness of product offering

SSB Merck | Millipore Pall Cytiva1

ThermoFisher

Top 3 Players

Filtration1. Merck | Millipore2. Danaher | Pall3. Sartorius Stedim Biotech

Fluid Management

1. Sartorius Stedim Biotech2. Thermo Fisher3. Merck | Millipore

Fermentation1. Sartorius Stedim Biotech2. Thermo Fisher3. Danaher | Cytiva

Purification1. Danaher | Cytiva2. Merck | Millipore3. Sartorius Stedim Biotech

Cell Culture Media

1. Thermo Fisher2. Merck | Millipore3. Danaher | Cytiva

1 Formerly GE Biopharma


Overview | Strategy

Danaher

19

-25-35%

-55-65%-65-75%

Construction cost Energy cost Water cost

-30-50%

Time-to-market

ReferenceSingle-use

Pioneer and leader in the growing single-use technology market

Single-use market penetration expected to increase from ~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

Overview | Strategy


20

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

Single-use allows manufacturers to mitigate investment risks

Clinical Phase IIClinical Phase I Clinical Phase III

Probability that candidate advances to next stage

Probability of approval

~ 60%

~ 10%

~ 30%

~ 15 %

~ 50%

~ 50%

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

Overview | Strategy


21

More than half of 2020 SSB sales were generated with the Top 50 customers

No individual customer accounts for more than 5% of BPS sales revenue

0100200300400500

Sales to Top 50 customersin 2020, € in millions

Top 10 11 to 20 21 to 30 31 to 40 41 to 50

Cumulative share

~28%~40% ~48% ~53% ~57%

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

Limited dependence on individual accounts

Overview | Strategy


22

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

180+ companies developing corona

vaccines

The majority work with SSB products

Pandemic effects in 2020

Pandemic-related net effect of a good ~12pp on sales revenue and close to ~19pp on orderintake growth; consisting of investments in vaccine and therapeutic research and manufacturing, also inventory build-up

Overview | Strategy


Agenda

23

Overview | Strategy



Appendix



2025 targets are based on 2020 currency exchange rates; EBITDA excluding extraordinary items

24

2025 ambition – increased baseline and organic growth

€4bnpreviously ~€2.8bn

~33%previously ~30%

Sales revenue

EBITDA margin

Initial 2025 group sales revenue targets were basedon an estimated 2020 group revenue of €1.5 to1.6bn, based on the mid-term guidance of 2012

Actual 2020 Group revenue was approx. €1.9bn

New mid-term target reflects both the elevatedbaseline and future growth prospects

Continued strategy is to achieve the targets primarily through organic growth; acquisition to contribute underproportionally

The increase in the profitability outlook is due to economies of scale and also reflects the assumption of acquisitions to be initially dilutive



25

Biologics market growth forecast

U.S.~167

China~67~€365bn

Europe~58

ROW~72

U.S.~119

China~38 ~€250bn

ROW~47

Europe~46

~+15% China

~+9% U.S.

~+6% Europe

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

2020 2024

CAGR



Huge market potential due to population size and growing average demand

Biopharma market development priority for China

Currently a CDMO/biosimilar-driven market; with an increasing number of originators across all biopharma modalities

Sartorius with long-standing local presence (production in Shanghai and Beijing); further expansion planned

26

Dynamic increase in new biopharma companies in China in the past years

2650

79

141

0

60

120

180

240

300

Before 1990 1990-2000 2000-2010 2010-2020

111

179

269228

0

60

120

180

240

300

Before 1990 1990-2000 2000-2010 2010-2020

3155 69

39

0

60

120

180

240

300

Before 1990 1990-2000 2000-2010 2010-2020

China U.S. Europe



27

Regional balance better reflecting end-markets


CAGR for continued operations, in constant currencies

53%

27%

20%

2011

~€477m

40%

35%

25%

2019

~€1.9bn

22%

50%

28%

2019

~€250bnCAGR

~+16%

~+18%

~+11%

Asia | Pacific

Americas

EMEA

Global biopharma market2019

Sales by region 2011

Sales by region 2020


28

0 03 1

7

22 2015 16

2012 2013 2014 2015 2016 2017 2018 2019 2020

Growing number of biosimilar approvalsE.U. and U.S.

Biosimilars will outperform the biologics market€ in billions

~235.5 ~323.5

2020 2024

~14.5~41.5

BiosimilarsOther 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

Biosimilars: Strong growth, big opportunities



29

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



30

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



Agenda

31

Overview | Strategy



Appendix


32

Sartorius Stedim Biotech Group in millions of € unless otherwise specified

2019 2020 in % in % cc1

Sales revenue 1,440.6 1,910.1 +32.6 +34.6

Order intake 1,543.5 2,381.0 +54.3 +56.7

Underlying EBITDA2 421.5 604.7 +43.5

Underlying EBITDA2 margin in % 29.3 31.7 +2.4pp

Underlying EPS3 in € 2.85 4.16 +45.9

Exceptionally strong growth in 2020

Strong organic development; pandemic-driven effects a good 12pp (majority of that from demand related to coronavirus vaccines and therapeutics), acquisitions accounted for close to 6pp of growth

Pandemic-related effects on order inatke growth close to 19pp Underl. EBITDA margin up with economies of scale, lower costs due to pandemic; slight FX dilution, M&A with neutral effect

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



353.8478.9

2019 2020

33

Double-digit sales growth in all geographiesSartorius Stedim Biotech

575.1

761.0

2019 2020

+33.0%

EMEA€ in millions

Americas€ in millions

+34.0% +38.3%

Asia|Pacific~ 25%

Americas~ 35%

EMEA ~ 40%

€1,910.1m

Sales by Regionin %

Asia|Pacific€ in millions

511.6

670.2

2019 2020

Acc. to customers‘ location; growth in constant currencies

Especially EMEA and Americas benefited from additional demand in connection with the development and manufacture of coronavirus vaccines and Covid-19 therapeutics

Asia|Pacific with the highest momentum, fueled by larger project business orders in H1


34

Sartorius Stedim Biotech Group in millions of € unless otherwise specified

2019 2020 in %

Underlying EBITDA 421.5 604.7 +43.5

Extraordinary items -16.8 -32.0 n.m.

Financial result -14.4 10.8 n.m.

Underlying net profit1,2 263.0 383.8 +45.9

Reported net profit2 234.5 357.8 +52.6

Operating cash flow 310.1 416.9 +34.4

Investing cash flow3 -184.4 -621.1 n.m.

CAPEX ratio (in %) 9.4 8.3 -1.1pp

Net operating cash flow mostly driven by higher earnings and factoring program (~€76m)

Extraordinary items influenced primarily by M&A

Financial result includes the valuation effect related to the earn-out from the acquisition of BIA Separations

Tax rate at 25.3%; excluding earn-out effect tax rate would be 27.1%

Investing cash flow driven by acquisitions

Operating cash flow rises significantly

2019 numbers partly adjusted due to final PPA of BI 1 Underlying net profit = net profit adjusted for extraordinary items, amortization and based on a normalized financial result and normalized tax rate2 After non-controlling interest 3 Net cash flow from investing activities and acquisitions



35

Financial indicators remain on very solid levelSartorius Stedim Biotech

Key Financial Indicators

Sartorius Stedim BiotechDec. 31,

2019Dec. 31,

2020

Equity ratio in % 64.4 48.3

Net debt in millions of € 110.4 527.0

Net debt | underlyingEBITDA1 0.3 0.8

Equity ratio influenced by increase in balance sheet sum due to the recent acquisitions and higher cash position

Net Debt and Net Debt to Underlying EBITDA

Q1-Q42014

Q1-Q42015

Q1-Q42016

Q1-Q42017

Q1-Q42018

Q1-Q42019

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

0.0

0.3

0.6

0.9

1.2

1.5

1.8

0

100

200

300

400

500

600

Q1-Q42020

1 Includes underlying pro forma EBITDA of acquisitions completed in 2020


36

Strong outlook for 2021, uncertainties remain highSartorius Stedim Biotech

1 In constant currencies

FY 2021 Guidance1 Sales revenue growth Underlying EBITDA margin

2020 2021 2020 2021

Sartorius Stedim Biotech 34.6% ~ 20-26% 31.7% ~ 32.0%- growth by acquisitions | Corona demand close to 6pp | good 12pp ~5.5pp | up to 7pp

Growth rates expected to be significantly pronounced in H1 due to last years acquisition and strong order book CAPEX ratio ~15% (FY 2020: 8.3%); increase due to acceleration and extension of capacity expansions across the entire

production network, especially in Germany, Puerto Rico and China Net debt to underlying EBITDA is projected at around 0.75 (2020: 0.8)


Agenda

37

Overview | Strategy



Appendix


To Sartorius Stedim Biotech, sustainability means operating responsibly over the long term – with respect to business partners, employees and society as well as to natural resources. Learn more about our commitment:

Please click below for further financial information:

Annual Report 2020

Earnings Release 9M 2020

Half-Year Report H1 2020

Earnings Release Q1 2020

38

Corporate responsibility & further financial information

Appendix

SRI Presentation


https://www.sartorius.com/download/573994/5/qm-ssb-9m-2020-e-data.pdf

https://www.sartorius.com/en/company/corporate-responsibility

https://www.sartorius.com/download/508998/6/ssb-h1-report-2020-e-data.pdf

https://www.sartorius.com/download/462954/6/qm-ssb-q1-2020-e-data.pdf

https://www.sartorius.com/resource/static/692420

39 Appendix

Sartorius Stedim Biotech shares – an attractive investment

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 ~17% over

the last five years

12 3


40 Appendix

Share price performance

ISIN FR0013154002

Ticker DIM

Number of share 92,180,190

Indices SBF 120 | CAC Next 20 | CAC Large 60 | CAC All-Tradable | CAC All Shares |CAC Healthcare | MSCI Europe | STOXX Europe 600

Market cap. €37.9bn (as of February 16, 2021)


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Sartorius (prefs.)

Sartorius (ord.)


MSCI Europe

SBF 120

41 Appendix

A sampling of the product portfolio

Fluid management

PurificationFiltration

Fermentation


42 Appendix

On track to meet 2020 targets

2020 targetsStrategic initiatives

Regional Further grow sales force effectiveness Gain share in North America Leverage market growth in Asia

Portfolio Alliances and acquisitions Own product development

Operations Continued capacity expansion Drive digitalization and roll-out of efficient IT systems

~ 29-30% EBITDA margin

~ 1/5 Acquisitions

~ 4/5Organic

~€1.5-1.6bnSales revenue

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


43

Petra Kirchhoff

Head of Corporate Communications & IR

Phone: +49.551.308.1686E-mail: [email protected]

Sartorius Corporate Administration GmbHOtto-Brenner-Straße 2037079 Göttingen, Germany

March 26, 2021 Annual Shareholders' Meeting | Göttingen

April 21, 2021 Publication First-Quarter Results 2021 | Göttingen

Ben Orzelek

Head of Investor Relations

Phone: +49.551.308.1668E-mail: [email protected]

Appendix

Financial calendar and contactsSartorius Stedim Biotech

Visit our IR website or click here.

https://www.sartorius.com/en/company/investor-relations

Documents

This is Sartorius€¦ · It is not planned to update our forward-looking statements. ... Pharma market Biopharma market Single-use penetration Market share gains CAGR 4-7%. CAGR