First half of 2016: Sartorius Stedim Biotech continues strong performance

¹ _{According to customers' location}
² _{Underlying EBITDA = earnings before interest, taxes, depreciation and amortization, and adjusted for extraordinary items}
³ _{Underlying net profit = net profit after non-controlling interest; adjusted for extraordinary items, non-cash amortization and based on a normalized financial result and tax rate} 
⁴ _{Adjusted for stock split}

Double-digit top-line growth

Within a continued dynamic market environment, Sartorius Stedim Biotech (SSB), a leading supplier for the biopharma industry, reported a strong first half 2016, with sales revenues up 22.3%. Besides a very dynamic organic performance, the acquired businesses of BioOutsource and Cellca, consolidated since April respectively July 2015, contributed approx. 3 percentage points of non-organic growth. Expansion was driven by high demand across the entire portfolio. Regionally, the Americas led growth, posting a gain of 27.3%, while EMEA and Asia also grew by significant double digits. Order intake exceeded expectations in particular due to some larger equipment orders.

Profits on the rise

Driven by economies of scale, SSB's earnings increased overproportionately. Underlying EBITDA rose by 28.0% to 136.4 million euros; the corresponding margin reached 26.8%. Underlying earnings per share were 0.91 euro, up year over year from 0.68 euro.

Comfortable financial position

The financial position of SSB has remained strong and stable as reflected by an equity ratio of 59.2% and a ratio of net debt to underlying EBITDA of 0.4. Net debt at the end of the first six months was 108.6 million euros.

Outlook for 2016 raised

Based on the strong first-half business performance, some larger equipment orders and the positive overall business outlook, management has upgraded its forecast for the full year of 2016. Sales revenues are now expected to increase by about 17% to 20% in constant currencies (prev. guidance: about. 12% to 16%). The underlying EBITDA margin is projected to rise about 1.5 percentage points in constant currencies compared with the prior-year figure of 26.2% (prev. guidance: plus about 1 percentage point).

_{This press release contains statements about the future development of the Sartorius Stedim Biotech Group. We cannot guarantee that the content of these statements will actually apply because these statements are based upon assumptions and estimates that harbor certain risks and uncertainties.}