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Simplifying Progress Investors Presentation 9M 2020 Results

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Page 1: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

Simplifying Progress

Investors Presentation9M 2020 Results

Page 2: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

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

Page 3: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

Agenda

3

Overview | Strategy

Bioprocess Solutions Division

Lab Products & Services Division

FY 2020 Guidance | 9M 2020 Results

Page 4: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

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.

Page 5: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

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

5

~€2.3bn Sales revenue 2020e

~16.0%Sales CAGR1 2015-2020e

~29.5%EBITDA margin2 2020e

~ 10,000Employees

60+Locations worldwide, headquartered in Göttingen, Germany

High exposure to attractive biopharma and life science industry

€412m

~ €2.3bn

Sales with life science customers

Group sales revenue

2020e2000

~85%

Overview | Strategy

Sartorius at a glance

~35%

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6

Strategic focus of both divisions on the biopharma value chain

Overview | Strategy

Lab Products & Services Division

Quality | Testing | Validation

Upstream & downstream production

Molecule development

Cell line and process development

Bioprocess Solutions Division

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7

Attractive market environment with strong growth opportunities

Overview | Strategy

~8% CAGR for biopharmamarket 2019–2025

Favorabledemographics

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

Rise ofbiosimilars

~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

Page 8: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

€733m

19.7 20.1 20.5 21.023.6

25.0 25.1 25.927.1

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%

EBITDA1 margin +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

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9

CAGR for continued operations, in constant currencies

53%

25%

22%

2011

~€650m

40%

35%

25%

2019

~€1.8bn

22%

51%

27%

2019

~€240bnCAGR

~+16%

~+16%

~+11%

Asia | Pacific

Americas

EMEA

Global biopharma market2019

Sales by region 2011

Sales by region 2019

Overview | Strategy

Regional balance better reflecting end-markets

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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 ratioin %

CAPEX composition 2020

2

10

Expansion of fermenter production capacities

Overview | Strategy

Infrastructure prepared for further organic growth

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Life Science assets from Danaher

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 2018

Intellicyt ViroCytEssen

BioScience

CellcaBioOutsource

kSep

2019

Umetrics

2021

DivestmentIntec Division

WaterSepBIA Separations

Biological Industries

2020

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12

Recent acquisitions significantly strengthen positioning of both divisions…

May 2020 Date of consolidation

~$170m Sales revenue in 2019

+ 300 Employees

~$825m Purchase price

Acquisition of selected life science assets from Danaher

▪ Assets include bioanalytical tools for LPS; upstream and downstream technologies for BPS

Acquisition of Biological Industries

Dec. 2019 Date of consolidation

~€20-25m Sales revenue in 2019

+ 130 Employees

~€45m For 50%+1 of shares

▪ Developer and manufacturer of cell culture media

▪ Consolidated in LPS and BPS divisions

Overview | Strategy

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13

…and make the portfolio more relevant for our customers

Overview | Strategy

Nov. 2020 Date of consolidation

~€25m Sales revenue in 2020e

+ 120 Employees

€360mn Purchase price1

Acquisition of BIA Separations

▪ Technology for purification in advanced therapy processes

▪ Consolidated in BPS division

Acquisition of WaterSep BioSeparations

Dec. 2020 Date of consolidation

~$2.5m Sales revenue in 2020e

+ 15 Employees

$27mn Purchase price2

▪ Innovative hollow fiber crossflow filtration units

▪ Consolidated in BPS division

1 Plus performance-based earn-out payments over the next five years 2 Plus performance-based earn-out component of up to $9mn

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14

Sartorius 2025 ambition and initiatives

2025 targetsStrategic initiatives

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

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

Operations▪ 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

~ 2/3Organic

~€4bn Sales revenue

Overview | Strategy

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SSB | BPS Sartorius GroupLPS

~€2.8bnSales revenue

~30% EBITDA margin

~€1.2bnSales revenue

~25% EBITDA margin

~28%EBITDA margin

~€4bnSales revenue

2025 targets are based on 2017 currency exchange rates; EBITDA excluding extraordinary items

15 Overview | Strategy

Sartorius 2025 ambition per division

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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 crisis with significantly different effects in the divisions

▪ BPS benefits from demand related to thedevelopment and production of vaccinesand therapeutics against COVID-19; consequences from delays in clinical trialsnot clear yet

▪ LPS affected by softer macroeconomicenvironment; postive effects on productsthat are used for testing

Overview | Strategy

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Agenda

17

Overview | Strategy

Bioprocess Solutions Division

Lab Products & Services Division

FY 2020 Guidance | 9M 2020 Results

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615.6

1,350.5

23.0

29.1

23252729313335

300500700900

110013001500

2014 2015 2016 2017 2018 2019

18

Track record of dynamic growth

High share of recurring revenuesGlobal 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

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19

Generating revenue throughout the lifecycle of a biopharma drug

Clinical(4-7 years)

Preclinical (1 year)

Stage

Scale Process development Proof of concept - pilot Large

▪ 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

Commercial(15+ years)

Bioprocess Solutions

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20

Virus clearance & filtration

Chroma-tography

Cryo-preservation

Concen-tration

Sterile filtration

Culture mediapreparation

FermentationSeedcultivation

Scale-up

Clarification & centrifugation

Bioprocess Solutions

Covering most steps of the biopharmaceutical manufacturing process

▪ 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

UPSTREAM

DOWNSTREAM

Finalfilling

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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

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22 Bioprocess Solutions

Competitive portfolio across our relevant end-markets

Pie charts indicate completeness of product offering

Sartorius1 Merck | Millipore Pall Cytiva2

ThermoFisher

Top 3 Players

Filtration1. Merck | Millipore2. Danaher | Pall3. Sartorius

Fluid Management

1. Sartorius2. Thermo Fisher3. Merck | Millipore

Fermentation1. Sartorius2. Thermo Fisher3. Danaher | Cytiva

Purification1. Danaher | Cytiva2. Merck | Millipore3. Sartorius

Cell Culture Media

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

1 Sartorius with strengthened portfolio after acquisition of selected life science assets from Danaher; 2 Formerly GE Biopharma

Danaher

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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 ResinsColumns

Bioprocess Solutions

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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

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25

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

Bioprocess Solutions

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26

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

Bioprocess Solutions

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27

Biologics market growth forecast

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

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28

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% (2018-22)

▪ Rapid change from traditional Chinese medicine toinnovation in biopharma

Sartorius with long-standing local presence; further expansion planned

Production and sales

Sales

Beijing

Shanghai

Bioprocess Solutions

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29

0 03 1

7

22 2015

2012 2013 2014 2015 2016 2017 2018 2019

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

Biosimilars will outperform the biologics market€ 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

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30

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

-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

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31

▪ 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 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

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32 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

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33

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

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34

▪ 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

0

100

200

300

400

Sales to Top 50 customersin 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 accountsLong-term business relationships with leading global (bio-) pharma companies

Bioprocess Solutions

Limited dependence on individual accounts

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2

~+16.0% Organic CAGR1

35

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

2014 2015 2016 2017 2018 2019 2020

Pharmamarket

Biopharmamarket

Single-usepenetration

Market share gains

CAGR 4-7%

CAGR ~8%

Double-digit growth

Esp. in North America

Bioprocess Solutions

Four strong pillars drive above-average growth

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Agenda

36

Overview | Strategy

Bioprocess Solutions Division

Lab Products & Services Division

FY 2020 Guidance | 9M 2020 Results

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325.3

476.5

16.0

21.6

13

15

17

19

21

23

25

27

29

100150

200250300350400450500550600

2016 2019

268.9305.5

17.416.0

14

16

18

20

22

24

26

28

30

100150

200250300350400450500550600

2012 2015

37

Global footprintDivision 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 since2016CAGR

+3.8%

CAGR +11.8%

Division in transition to a new growth and profitability profileSales revenue, € in millions; EBITDA margin1 in %

Lab Products & Services

Snapshot of the Lab Products & Services Division

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38

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

Applied Research sales

~50%Life Science Research sales

~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 and filtration

▪ Addresses QC/QA laboratories in food & beverage and chemical industry among others

Lab Products & Services

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39

▪ 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 #3

Pipettes

#4

Microb. analysis

#2

Lab Products & Services

Strong market position in essential laboratory product categories

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40

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

Our approach

▪ Facilitate digitalization and automatization

▪ Decrease likelihood of failure

▪ Reduce time and costs in molecule development; increase time-to-market

Lab Products & Services

Bioanalytical tools to address customers pain points

>10 yearsFrom drug discovery to

approval

>€2bn Average costs of developing

a successful drug

~10 %Probability of clinical success

(Phase I to approval)

1-2 years1 year 4-7 years4-5 years

Drug discovery Preclinical testing

Clinical trials Drug approval

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41

Overview of bioanalytical portfolio

Solutions for cell analysis

▪ IncuCyte: Real-time imaging and analysis of living cells

▪ iQue Screener: Rapid, high content analysis of cells, beads and secreted proteins

Solutions for protein analysis

▪ Octet: Real-time, label-free measurement of biomolecular interactions

Competitive environment

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

Lab Products & Services

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42 Lab Products & Services

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

Application example: Molecule development

OctetIdentify high-producing clones in expression library

ambr15 (BPS division)Culture identified cloneson small-scale

IncuCyte | iQueScreenerSelection of lead candidates and functional characterization

Application example: Cell line development

iQueScreenerScreening of antibody libraries for target-reactive candidates

OctetMeasure how strong the identified antibodies bind to their target and rank

Octet | iQueScreenerAnalysis and characterization of cell line and antibodies

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43

~3.4~4.3

~1.2

~1.9

2019 2025

Addressable market of LPS€ in billions

LPS ex bioanalytics

Bioanalytics+3.5%CAGR

+8%CAGR

▪ Different growth rate of bioanalyticsdue 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 of LPS is changing over time

Lab Products & Services

Bioanalytics increases addressable market and changes growth profile

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Agenda

44

Overview | Strategy

Bioprocess Solutions Division

Lab Products & Services Division

FY 2020 Guidance | 9M 2020 Results

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45

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

Sartorius Group in millions of € unless otherwise specified

9M 2019 9M 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 norelevant effects; dilutive effect from currencies of about half a percentage point

Strong profitable growth

FY 2020 Guidance | 9M 2020 Results

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Americas€ in millions

46

EMEA€ in millions

Asia|Pacific€ 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 Regionin %

348.1421.5

9M 2019 9M 2020

461.7586.0

9M 2019 9M 2020

Asia|Pacific~ 25%

Americas~ 35%

EMEA ~ 40%

546.1672.6

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

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Order Intake€ in millions

47

Sales Revenue€ in millions

Underlying EBITDA & Margin € in millions

290.5410.5

9M 2019 9M 2020

1.084.0

1.546.8

9M 2019 9M 2020

1.009.01.288.1

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

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Order Intake€ in millions

48

Sales Revenue€ in millions

Underlying EBITDA & Margin € in millions

70.6 78.2

9M 2019 9M 2020

351.0409.7

9M 2019 9M 2020

346.8391.9

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

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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 interest3 Net cash flow from investing activities and acquisitions

Sartorius Group in millions of € unless otherwise specified

9M 2019 9M 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 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

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Key Financial Indicators

Sartorius GroupDec. 31,

2019Sep. 30,

2020

Equity ratio in % 38.1 29.2

Net debt in millions of € 1,014.0 1,610.3

Net debt | underlyingEBITDA 2.0 2.5 Q1-Q4

2014Q1-Q42015

Q1-Q42016

Q1-Q42017

Q1-Q42018

Q1-Q42019

0.0

1.0

2.0

3.0

4.0

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 EBITDA

Financial indicators remain on very solid level

Q1-Q32020

▪ Balance sheet and equity ratio influenced by the recent acquisitions and higher cash position

FY 2020 Guidance | 9M 2020 Results

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Outlook for 2020 specified and slightly increased; uncertainty remains

FY 2020 Guidance1 Sales revenue growth Underlying EBITDA margin

previous change / new previous change / new

Sartorius Group ~ 22% - 26% upper end or slightly above

~ 22% - 26% ~ 28.5% + 1 pp → ~ 29.5%

- thereof acquisitions ~6.5pp ~6.5pp slightly dilutive neutral

Bioprocess Solutions ~ 26% - 30% upper end or slightly above

~ 26% - 30% ~ 31.0% + 1 pp → ~ 32.0%

- thereof acquisitions ~4.5pp ~4.5pp slightly dilutive neutral

Lab Products & Services ~ 10% - 14%upper end or slightly above

~ 10% - 14% ~ 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

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Appendix

52

Page 53: Titelfolie mit langer Überschrift, zwei- oder mehrzeilig, TT ......Attractive market environment with strong growth opportunities Overview | Strategy ~8% CAGR for biopharma market

To Sartorius, 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:

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

53

Corporate responsibility & further financial information

Appendix

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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

12 3

Appendix

Sartorius shares – an attractive investment

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Sartorius Stedim Biotech S.A. Stock market listed in France

55

1 The ownership relates to outstanding shares and thus excludes treasury shares. 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. The legal disclosure requirements refer only to voting shares and not to non-voting preference shares.

100%~74%

Other Sartorius subsidiaries

Lab Products & Services divisionBioprocess Solutions division

Sartorius Group operational setup

Sartorius AG (~68.4m shares)Stock market listed in Germany1

Ordinary shares (~34.2m shares)

~55% Administered by executor~38% Bio-Rad Laboratories

~7% Free float

91.2m shares~74% Sartorius AG~26% Free float

Sartorius Group legal setup

Preference shares (~34.2m shares)

~72% Free float~28% Bio-Rad Laboratories

Appendix

Sartorius legal & operational structure

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ISIN DE0007165631 (preference share)DE0007165607 (ordinary share)

Ticker SRT3 (preference share) | SRT (ordinary share)

Number of 68,415,862 - thereof pref. shares: 34,189,853shares (excluding ~3.3m treasury shares); ord. shares:

34,226,009 (excluding ~3.2m treasury shares)

Indices DAX 50 ESG | MDAX | TecDAX | MSCI EuropeCDAX | Prime All Share Index | Technology All Share Index | STOXX Europe 600

Market cap. €23.6bn (as of November 02, 2020)

Appendix

Share price performance

50%

150%

250%

350%

450%

550%

650%

Jan-

16

Mar

-16

May

-16

Jul-1

6

Sep-

16

Nov

-16

Jan-

17

Mar

-17

May

-17

Jul-1

7

Sep-

17

Nov

-17

Jan-

18

Mar

-18

May

-18

Jul-1

8

Sep-

18

Nov

-18

Jan-

19

Mar

-19

May

-19

Jul-1

9

Sep-

19

Nov

-19

Jan-

20

Mar

-20

May

-20

Jul-2

0

Sep-

20

Nov

-20

Sartorius (prefs.)

Sartorius (ord.)

Sartorius Stedim Biotech

DAX

MDAX

MSCI Europe

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Fluid management

PurificationFiltration

Fermentation

Appendix

A sampling of the Bioprocess Solutions’ product portfolio

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Pipettes

BioanalyticsLab balances | Lab water systems

Lab filtration | Microb. analysis

Appendix

A sampling of the Lab Products and Services’ product portfolio

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Recap 2020 targets and initiatives

2020 targetsStrategic initiatives

Appendix

~ 26-27% EBITDA margin

~ 1/4 Acquisitions

~ 3/4Organic

~€2bnSales revenue

Regional▪ Gain share in North America▪ Leverage strong market growth in Asia

Portfolio▪ Complementary extensions through

alliances and acquisitions▪ Own product development

Operations▪ 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

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Rainer Lehmann, CFO

Joined Sartorius in 2005Member of the Board since 2017

Finance, Information Technology, Business Processes

Joachim Kreuzburg, CEO

Joined Sartorius in 1999Member of the Board since 2003

Group Strategy, Corporate Research, Human Resources, Legal & Compliance, Communications

René Fáber

Joined Sartorius in 2002Member of the Board since 2019

Bioprocess Solutions Division

Gerry Mackay

Joined Sartorius in 2015Member of the Board since 2019

Lab Products & Services Division

Appendix

Executive Board of Sartorius AG

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Petra Kirchhoff

Head of Corporate Communications & IR

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

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

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

▪ 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 contacts

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Visit our IR website or click here.