Sartorius : Conference Call Q1|2024 Presentation

Investor Conference Call | Q1 2024 Results

Joachim Kreuzburg, Florian Funck, René Fáber Sartorius | Sartorius Stedim Biotech | April 18, 2024

Q1 2024 shows expected mixed picture

• Results largely within expectations: order intake significantly up, sales revenue still below strong prior year
• B-t-bratio slightly above 1; dynamics vary across regions and customers
• Order intake for consumables picking up noticeably in both divisions; ongoing muted investment activities in equipment and instruments
• Strong business dynamics with customers in Advanced Therapies
• Profitability on a robust level; positive effects from efficiency programs to increasingly contribute during the year
• Market fundamentals intact; China still weak; market volatility and geopolitical uncertainties remain high

2

Agenda

Sartorius Group

Q1 2024 results | FY 2024 guidance

Sartorius Stedim Biotech Group

Q1 2024 results | FY 2024 guidance

Questions & Answers

3

Sartorius Group

Expected soft top line development vs. strong PY; robust profitability

Sartorius Group	Q1 2023	Q1 2024	in %	in % cc1
in millions of € unless otherwise specified
Sales revenue	903	820	-9.3	-7.6
Order intake	765	826	8.0	9.8
Underlying EBITDA2	272	234	-13.8
Underlying EBITDA2 margin in %	30.1	28.6	-1.5pp
Underlying EPS3 (ord.) in €	1.69	1.01	-40.5
Underlying EPS3 (pref.) in €	1.70	1.02	-40.3

• Sales down on strong comps; acquisitions contribute ⁓2pp to sales growth
• OI: noticeable pick-up in recurring business indicate advanced inventory reductions of customers; weak equipment business mainly in China and partly in Europe
• Underlying EBITDA margin on robust level; efficiency programs contribute positively

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 normalized tax rate

4

Sartorius Group

Demand normalization in all regions except China

Americas

Sales | € in millions

-9.3%
322	288
Q1 2023 Q1 2024

EMEA

Sales | € in millions

-4.4%
359	341
Q1 2023 Q1 2024

Asia | Pacific

Sales | € in millions

-10.4%

222	190
Q1 2023 Q1 2024

Sales by region

in %

EMEAAmericas

~42%~35%

€820m

Asia | Pacific

~23%

• Americas: Strong OI development in both divisions (BPS: ⁓+30%; LPS ⁓+14%); lower revenue on strong comps
• EMEA: Positive OI development in BPS (⁓+8% ), flat in LPS; sales down on strong comps; Russia impact on top line ~-1pp
• Asia | Pacific: OI in BPS up (⁓+7%) , while down in LPS (⁓-29%) ; sales down in both divisions; China weighing on APAC sales growth

with ~-12pp; Korea and rest of region show positive sales development

Acc. to customers' location; growth in constant currencies

5

Sartorius Group

Bioprocess Solutions: Recurring business continues to recover while equipment remains soft

Order intake

€ in millions

15.0% cc

13.4%

576	653
Q1 2023 Q1 2024

Sales revenue

€ in millions

-5.3% cc

-6.9%

695	647
Q1 2023 Q1 2024

Underlying EBITDA & margin

€ in millions

-11.1%

217	193
31.2	29.8
Q1 2023	Q1 2024

• M&A contributes ~3pp to sales development
• OI growth in all regions, however China down; continuous recovery of recurring business also vs. relatively positive Q4 2023; muted investment activity dampens equipment business
• Ul. EBITDA margin on robust level; lower volumes partly compensated by positive product mix effects and cost base adjustments

6

Sartorius Group

Lab Products & Services: Below strong Q1 2023 but recovery ongoing except for China; investment activity widely soft

Order intake

€ in millions

-6.2% cc

-8.2%

189	173
Q1 2023 Q1 2024

Sales revenue

€ in millions

-15.3% cc

-17.1%

208

173

Q1 2023 Q1 2024

Underlying EBITDA & margin

€ in millions

-24.4%
55	41
26.3	24.0
Q1 2023 Q1 2024

• OI below Q1 2023 but above Q4 2023; strong recurring business; particularly dynamic development in Americas
• Sales revenue below strong Q1 2023 but above Q3 and Q4 2023
• Underlying EBITDA margin impacted by lower volumes and product mix

7

Sartorius Group

Operating cash flow influenced by phasing effects

Sartorius Group	Q1 2023	Q1 2024	in %
in millions of € unless otherwise specified
Underlying EBITDA	272	234	-13.8
Extraordinary items	-19	-16	+14.7
Financial result	-12	-49	>-100
Underlying net profit1,2	116	70	-39.9
Reported net profit2	93	37	-60.6
Operating cash flow	202	45	-77.6
Investing cash flow3	-137	-135	+1.5
Capex ratio (in %)	15.0	15.7	+0.7pp

• Extraordinary items driven by reorganization and integration measures and corporate projects
• Financial result influenced by higher interest expenses
• Operating cash flow below PY due to phasing effects of tax payments, lower factoring volume and lower earnings
• Capex ratio elevated on lower sales revenue

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

8

Sartorius Group

Balance sheet reflects recent capital measures; focus on strong cash generation to drive further deleveraging

Key financial indicators

Sartorius Group	Dec. 31,	Mar. 31,
in millions of € unless otherwise specified	2023	2024
Non-current assets	7,798	7,849
Equity ratio in %	28.3	35.4
Net debt	4,932	4,097
Net debt | underlying EBITDA1	5.0	4.4

Net debt and net debt to underlying EBITDA

6.0

5,000					5.0
4,000
				4.0
3,000					3.0
2,000					2.0
1,000					1.0
0					0.0
Q1-Q4	Q1-Q4	Q1-Q4	Q1-Q4	Q1	FYe
2020	2021	2022	2023		2024
Net debt in millions of € (lhs)	Net debt to underlying EBITDA (rhs)

1 Includes underlying pro forma EBITDA of acquisitions completed in the last 12 months

9

Sartorius Group

Guidance 2024 confirmed: Profitable growth with moderate H1 2024

Guidance 20241	Sales revenue growth	Underlying EBITDA margin
Sartorius Group	Mid- to high
	single-digit percentage range	slightly above 30%
thereof from acquisitions	~1.5 pp
Bioprocess Solutions	Mid- to high
	single-digit percentage range	above 31%
thereof from acquisitions	~ 2 pp
Lab Products & Services	Low single-digit	approx. on prior year level
percentage range	(2023: 25.1%)

• Growth momentum projected to pick up in the course of the year; H2 stronger than H1
• Polyplus business to positively influence BPS margin
• Capex ratio expected at ~13%
• Net debt to underlying EBITDA anticipated to be slightly above 3 at year-end (excl. possible equity measures and/or acquisitions)

1 In constant currency

10