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PresentationSartorius Stedim Biotech
Midcap Event Paris | September 24-25, 2012
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This presentation contains statements concerning the Sartorius and Sartorius Stedim Biotech Groups’ future performance. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we cannot guarantee that they will actually materialize. This is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantially from the expected ones. It is not planned to update our forward-looking statements.
Throughout this presentation, differences may be apparent as a result of rounding during addition.
Disclaimer
Agenda
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H1 2012 Results | Guidance 2012
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4 Appendix
Business Profile & Strategy1
2 Key Projects
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Sartorius Stedim Biotech at a Glance
2011 Figures; EBITDA and EBITA excluding extraordinary items 1) Based on 2011 pro forma figures; according to customers’ location
Sales Split by Regions1)
Europe ~51% Asia ~20%
North America ~25 %
Other Markets ~4%
Sales
Employees
EBITDA1)
EBITA1)
€477.3m
2,858
€99.6m
€83.5m
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Strong Worldwide Presence
Sales Production | Production and Sales5
Highlights of Sartorius Stedim Biotech
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More than 90% of sales generated from global TOP 1-3 position
Strong base in all growth regions; Asia accounts for 20% of sales
Scalable business model with attractive incremental margins
Proven track record with alliances and acquisitions
Clear focus on fast-growing businesses, especially the highly attractive biopharma market 1
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3
4
5
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Strong Long-Term Trends Drive Further Growth
Global Trends
Trends in Biomanufactoring
Higher yields, higher efficiencies in cell culture
Increasing cost pressure
Personalized medicine
Single-use Technologies
Double-digit growth
Highest growth in innovative segments, e.g. bioreactors, fluid management
Global Trends
Aging population in Western countries
Increasing access to therapeutics and vaccines in developing economies
Growing number of chronic and civilization diseases
Trends toward Biotech
Strong pipelines, e.g. mAbsand vaccines
Continued penetration in already approved indications
Label expansions
Increasing share of biologics approvals
Phase III | reg. Phase II Phase IMarketed
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20
40
60
80
100
120
140
1
Biopharma Market Grows
Total Pharma Market
856
Total Pharma Market 1080
2010 2015
CAGR3-6%
CAGR6-9%
Biotech 195
Biotech 138
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Global mAb Pipeline1)
1) DataMonitor Monoclonal Antibodies 2010, HC00029-002 Slidepack 10/10
IMS Market Prognosis, April 2011. In US$ bn.
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Our Focus: Production Processes of Biologic Drugs
Pre-clinical Phase
Industrial Production
Clinical Phase I
ClinicalPhase II
ClinicalPhase III
Process development
Drug | Vaccine
Increasing volumes along the process chain
ApprovalValidated Process
Highly regulated markets (FDA, EMEA, GMP, etc.) Sartorius products are part of the approval documentation High entry barriers for new competitors Stable pricing and attractive margins
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The Widest Product Portfolio Along Biopharma’s Process Chain
MediaPreparation
Mixing Systems Sterile Filters Storage Bags Virus Inactivation
Technologies
Fermentation |Cell Culture
Seed Bioreactor Production Bioreactor Freeze-Thaw Techno-
logies
Cell Harvesting
Cell Removal & Clarification Filters
Crossflow Systems & Consumables
Configurable Solutions Sterile Filters
Value Added Services
PurificationBuffer Preparation
Single-Use-Mixing Technologies
Bags & Tanks Monitoring &
Control Technologies
Key Production Steps
Crossflow Systems & Consumables
Membrane Chromatography
Virus Inactivation Technologies
Sterile Filters
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Equipment
~25%
Single-Use
~75%
~ €410m
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75% Recurring Business; Attractive Incremental Margins
Page 111) Own estimates 2) Pharmaceutical Technology Europe Vol. 22 No. 10, Oct. 2010; own estimates
Past Present Future
10 – 20%
30 – 40%
70 – 80% CAPEX reduction
Lower cleaning costs | validation
Downtime reduction, i.e. higher equipment utilization
Enhanced process performance
Reduced risk of cross-contamination
Fewer CO2 emissions
Higher flexibility
Market Penetration of Single-use Products1)
Compelling Value Proposition Drives Single-Use Penetration
Reduction of life-cycle production costs by 15 % to 40 %2)
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Leading Worldwide Market Positions
Filtration
amongTOP 3Fermentation
#1Fluid Management
#1
Competitive Landscape
Pall
Merck Millipore
Thermo Fisher
ATMI
Merck Millipore
NBS (Eppendorf)
Applikon
ABEC
GE
Thermo Fisher
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New Product Launches in Bioprocess Solutions
Orthogonal Platform for Polishing
Sartopore® Platinum - Capsules for sterile filtration
FlexMoSysTM – Easy to set up cleanroom systems1)
Biostat STR® - Single-use bioreactors up to 1,000 L
1) Cooperation with G-CON
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Agenda
1
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4 Appendix
Business Profile & Strategy
H1 2012 Results | Guidance 20123
Key Projects2
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Geographic Focus - Strong Growth Opportunities in the U.S. & Asia
■ USA is the biggest single market for biopharma
■ SSB currently underrepresented
■ Goal: Gain market share
Growth initiative USA
■ Strong growth of Chinese and Indian pharmaceuticals markets
■ Indian biopharma industry well established; China supported by strong Government funding
■ Goal: Participate in strong market growth
■ Engage additional application specialists
■ Built application and training lab
■ Enhance product and sales force training
■ Expand sales and distribution capacity
■ Strengthen technical service
■ Bolster integrated product solutions offerings
■ Built application and validation lab
Measures Measures
Growth initiativesChina | India
Source: Sartorius; BCG15
Go-to-Market: Initiatives Implemented in the U.S. and in Preparation in Asia
Resource ramp-upCustomer segmentation and coverage
Organizational changes
Focus on high-potential customers
Increase customer-facing time
Stronger technical and back office support
Enhanced sales support tools
Page 316
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Key Investment Projects
2009 2010 2011 2012e0
2
6
4
8
3.9
8.1
3.9
~10.010
Capex ratio in % of sales revenue
2012 e20112009 2010
■ Three main construction projects in Goettingen (GER), Guxhagen (GER) and Yauco (PR) to expand, optimize and modernize our global production infrastructure
■ New, group-spanning SAP-system
■ All projects within time and cost schedule
■ Investments at a high level in 2012
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New, group-spanning SAP-system
Global harmonization of business processes
Go-live in October 2012 in Göttingen
International launch until end-2014
Important basis for further profitable growth
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Key Investment Projects
Guxhagen, GER
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SHaPE
New site for fermenters and bioreactors in Germany
Extension of manufac-turing and office space
Construction started April 2011; operations started in May 2012
Yauco, PRGöttingen, GER
Expansion of membrane capacity and R&D labs at headquarters in Germany
Construction started May 2011; inaugurated on April 13, 2012
Expansion and modernization of filter manufacturing plant
Relocation of bag production to Yauco
Closure of production site in California by the end of 2012
Construction started May 2011; inaugurated in June 2012
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Agenda
1
Seite 3
2 Key Projects
4 Appendix
Business Profile & Strategy
H1 2012 Results | Guidance 20123
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Strong Increase in OI, Sales Revenue and Profit
Sartorius Stedim Biotechin millions of €(unless otherwise specified)
6M 2011 6M 2012Change
in %Change in %const. currencies
Order intake 251.6 279.3 11.0 7.5
Sales revenue 229.6 272.6 18.7 15.0
Underlying1) EBITA 38.6 48.8 26.3
Underlying1) EBITA margin 16.8% 17.9% +110bps
Underlying1)2) EPS in € 1.61 2.04 26.6
1) Excluding extraordinary items 2) Excluding non-cash amortization and valuation adjustments of hedging instruments
■ Order Intake: Strong growth with single-use products, especially filters and bags
■ Sales Revenue: H1 2011 represents a relatively low base; performance primarily fueled by single-use products
■ Underlying EBITA: Margin expansion mainly driven by strong sales growth
0
150
50
100
10
14
18
22
Marginsin %
16.817.9
20.4 20.9
18.8
15.0
17.9
14.2
H1 11H1 10 H1 12H1 09
Sales revenue in €m (lhs)
Underlying1) EBITA margin (rhs)Underlying1) EBITDA margin (rhs)
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+ 30.5 % + 7.7 % + 16.8 % + 13.3 %
Other Markets ~4%
Asia | Pacific ~19%
North America ~28%
Europe ~49%
76.3
9.6
133.4
€272.6m
EuropeSales1) in millions of €
North AmericaSales1) in millions of €
Asia|PacificSales1) in millions of €
Other MarketsSales1) in millions of €
Sales by Regions1)
in %
Highest Revenue Gains in North America
53.2
1) According to customers‘ location
H1 2012, growth in constant currencies
■ All regions contributed to strong sales growth■ North America reported the highest gains driven by single-use and equipment business■ Growth in Asia | Pacific continued to be dynamic■ Modest PIIGS-exposure (~15% of European sales revenue)
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Significant Increase in Underlying1) Earnings per Share
Sartorius Stedim Biotechin millions of €(unless otherwise specified)
6M 2011 6M 2012 Change in %
Underlying1) EBITA 38.6 48.8 26.3
Extraordinary items -2.9 -3.9 -33.8
Financial result -2.1 -2.7 -30.6
Underlying1)2) net profit after minority interest 24.7 31.2 26.6
Underlying1)2) EPS (€) 1.61 2.04 26.6
Operating cash flow 13.8 6.8 -51.0
Investing cash flow -8.9 -23.0 -159.2
1) Excluding extraordinary items 2) Excluding non-cash amortization and valuation adjustments of hedging instruments
■ Extraordinary items mainly related to U.S. site relocation and other corporate projects
■ Operating cash flow impacted by tax payments (partly relating to preceding years) and NWC expansion
■ Investments mainly related to the expansion of production capacity
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All Key Financial Indicators at Very Comfortable Levels
Net Debt to EBITDA1)
0
100
150
200
0.0
1.0
2.0
3.0
50
1) Excluding extraordinary items
Sartorius Stedim Biotech Dec. 31,2011
June 30,2012
Equity ratio in % 54.9 53.4
Net debt in millions of € 100.1 146.2
Gearing ratio 0.3 0.4
Net debt to underlying1) EBITDA 1.0 1.3
Interest coverage1) 22.5 24.8
Key Financial Indicators
Q1-Q4 Q1-Q4201120102009
Q1-Q4 Q1-Q42008
Net debt in €m (lhs) Net debt to EBITDA (rhs)
Q1-Q22012
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FY 2012 Guidance Raised
Guidance Previous New
Sales revenue growth1) ~6% - 8% ~10%
Underlying2) EBITA growth ~6% - 8% ~15%3)
■ CAPEX ratio expected to be around 10% including non-cash items of approx. 3 pct. points
1) In constant currencies 2) Excluding extraordinary items 3) Provided that currency exchange rates remain favourable as in H1 201224
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Thank you very much for your attention.
Agenda
1
Seite 3
3
Key Projects
Business Profile & Strategy
4 Appendix
2
H1 2012 Results | Guidance 2012
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High Entry Barriers Support Strong Market Positions
Environment for Biopharma Suppliers
Few new entrants into market
Attractive margins
Stable pricing
■ Highly regulated market environment
■ Extensive customer validation procedures
■ Proprietary technologies and specialized application expertise are prerequisites for suppliers
■ Global supply structure mandatory
■ Skilled and experienced workforce necessary
■ High investment requirements for new entrants
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■ Approx. half of 2011 sales were generated with the Top 50 customers
■ No individual customer accounts for more than 5% of Group revenue
■ No single drug accounts for more than 2% of Group revenue
~50%~45%
~40%
~35%
~25%
0
20
40
60
80
100
120
Top 10 11 to 20 21 to 30 31 to 40 41 to 50
Broad, Blue-Chip Customer Base
Sales to Top 50 customers2011, € in mn
Long-term business relations with leading global (bio-)pharma companies
Limited dependence on individual accounts
Cumulative Share
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Global Biologics Market1)
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Geographic Focus - Strong Growth Opportunities in the U.S. & Asia
China & India Biologics Market2)
1
0
China
India
2017e2013e2012e2011e2010e2009e200820072006200520042003
CAGR 2008-17: 23%
CAGR 2008-17: 17%5
€bn
4
3
2
Key Characteristics of Biomanufacturing Market
Sound market growth Strongly regulated environment Quality and reliability represent key success factors Stable supplier landscape
Key Biomanufacturing Market Drivers
Increasing production volumes Capacity built-up especially in Asia Increasing yields | lower batch sizes Technological shift towards single-use
1) Evaluate Pharma, IMS 2) BCG, Sartorius
0
40
80
120
160
200
2003 2004 2005 2006 2007 2008 2009 2010 2015
CAGR 2011-15: 6%-9%
€bn
ROW
USA
29
Strong demand of local manufac-turers for experienced suppliers
Process transfers of global customers to Asia
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Asia: Strong growth track record; Compelling market opportunities ahead
Europe
Other ~4%
North America
2011€477.3m
0%
25%
50%
75%
100%
51%
20%
25%
Asia | Pacific
China
Japan
India
S. Korea
Other
SingaporeKuala Lumpur
Bangalore
Hanoi
TokyoSeoul
Melbourne
SalesProduction
Asia’s share of sales now at ~ 20%; CAGR at 17% over the past four years
Broad geographic coverage: 8 sales and manufacturing sites; ~ 460 employees
Enhanced access to healthcare
High public and private R&D investment (e.g. Vaccines as a priority)
Key drivers for the biopharmaceutical markets
Beijing
Strong support from China’s 5-Year-Plan (Biotech named as key industry)
China market growth forecasted at 19-22% (CAGR 2011-15)1
1) IMS 30
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Our Path To Become A Total Solution ProviderOur Path To Become A Total Solution Provider
Alliances & acquisitions accelerated successful implementation of Total Solution Provider strategy
Significant extension of technology portfolio and product offerings
Substantial extension of worldwide footprint
Wave Biotech
TC TechAseptic Technologies
Bayer Technology Services
Metroglas
Corning
ATMI Life SciencesLevTech Toha Plast
Stedim Biosystems
SAFC Biosciences
Raumedic
Südpack Medica
2012Acquisitions | Alliances
Vivascience
2000B. Braun Biotech International
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Facts about Sartorius Stedim Biotech Shares – Shareholding Structure
Total number of shares2) 17,034,306
Total number of voting rights2) 28,857,435
Total number of shares outstanding2) 15,335,596
Total number of voting rights outstanding2) 26,958,725
Free Float (26% of shares outstanding; 15% of voting rights)Sartorius1) (74% of shares outstanding; 85% of voting rights)
Treasury (own) shares
67%
23%
10%
1) Sartorius AG and VL Finance, which is 100% controlled by Sartorius AG 2) As of June 201232
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Financial Calendar
■ October 29, 2012 Publication of nine-month figures
■ January 2013 Publication of preliminary figures for fiscal 2012
■ April 18, 2013 Annual Shareholders' Meeting in Aubagne
■ Publication of first-quarter figures for 2013
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Contacts
Petra Kirchhoff
Vice President Corporate Communications & IR
Phone: +49.551.308.1686E-mail: [email protected]
Andreas Theisen
DirectorInvestor Relations
Phone: +49.551.308.1668E-mail: [email protected]
Sartorius Corporate Administration GmbHWeender Landstrasse 94-10837075 Goettingen, Germanywww.sartorius.com
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