Gic fed res panel sept 25, 2015 sigmaaldrich krosley

Sigma-Aldrich – Adapting to a Changing Environment •Kevin Krosley • Sigma-Aldrich Chief of Staff

sigma-aldrich.com

© 2013 Sigma-Aldrich Co. All rights reserved.

Sigma-Aldrich At-a-Glance 2014 FACTS AND FIGURES

Mission Enabling Science to Improve the Quality of Life

19%

24% 43% $2.8 Billion

$2.8 Billion

Vision To be the trusted and preeminent global provider to the research laboratory and targeted applied and commercial markets

Constant and consistent purpose that has driven the Company for the past 80 years

38%

GLOBALLY BALANCED

51%

~296,000 Products

25%

DIVERSE END-MARKETS

QUALITY PRODUCTS

Total Americas

51% Research

250,000 Reagents and Chemicals

Europe, Middle East, Africa

24% Applied

46,000 Laboratory Equipment Items

Asia Pacific

25% SAFC Commercial

37 countries and sells into approximately 160 countries, serving more than 1.4 million customers worldwide

Sigma-Aldrich operates in

Delivering value through a diversified portfolio; No customer comprises more than 2% of sales, no product more than 1%

Š 2013 Sigma-Aldrich Co. LLC. All rights reserved.

2

Global Market Trends Pharmaceuticals: Decline in Small Molecules due to patent expiration and Rise of Biologic drugs Emerging regions funding growth in scientific research but showing signs of slowing to first-world rates Economic slow-down reducing academic research funding in all major geographies Increasing demand for new diagnostics and testing technologies Regulatory environment increasingly complex and restrictive Increasing pace of consolidation — Channel and content scale becoming increasingly important

Š 2013 Sigma-Aldrich Co. All rights reserved.

Global Market Trends Pharmaceuticals: Decline in Small Molecules due to patent expiration and Rise of Biologic drugs Emerging regions funding growth in scientific research but showing signs of slowing to first-world rates Economic slow-down reducing academic research funding in all major geographies Increasing demand for new diagnostics and testing technologies Regulatory environment increasingly complex and restrictive Increasing pace of consolidation — Channel and content scale becoming increasingly important

Š 2013 Sigma-Aldrich Co. All rights reserved.

Academic Funding and the Economic Downturn

Š 2013 Sigma-Aldrich Co. All rights reserved.

Global Market Trends Pharmaceuticals: Decline in Small Molecules due to patent expiration and Rise of Biologic drugs Emerging regions funding growth in scientific research but showing signs of slowing to first-world rates Economic slow-down reducing academic research funding in all major geographies Increasing demand for new diagnostics and testing technologies Regulatory environment increasingly complex and restrictive Increasing pace of consolidation — Channel and content scale becoming increasingly important

Š 2013 Sigma-Aldrich Co. All rights reserved.

Clinical Dx is a Large and Growing Market Due to a Number of Macroeconomic Factors $B

5.7% CAGR $60.0 $58.6

• The global population is growing and the 65+ segment is expanding

$50.0

$40.0

• Emerging economies are creating more wealth and demand for better healthcare

$44.4

• Private and public payers are trying to reduce costs by moving towards preventative medicine

$30.0

$20.0

$10.0

$0.0 2009

Source: Kalorama, Frost & Sullivan © 2013 Sigma-Aldrich Co. All rights reserved.

2014

• Advanced technologies are expanding the ability to detect disease and bringing more informative tests to market

7

8

How has Sigma-Aldrich Adapted the Value Proposition to Meet the Changing Market?

Academic Research, Pharma R&D & CRO Drug Discovery & Clinical Approval

Pharma, Biopharma & CMO

Drug Manufacture

Diagnostic Co.s & Healthcare Providers Patient Diagnosis & Treatment

Research Value Proposition

SAFC Value Proposition

Applied Value Proposition

Enabling Scientific Research to Discover and Develop new Drugs & Materials

To develop and manufacture high quality commercial products and service solutions with our “Top 100” Life Sciences and Electronics customers

Supply customized solutions and critical components and materials to diagnostic companies, testing laboratories and industrial companies

• Biological Safety Testing and Process Validation

• Collaborative Development of New Diagnostic Approaches

• Unique Manufacturing Capabilities – Large & Small Molecules

• Quality Assurance of Supply (Critical Raw Materials)

• Quality Assurance through Supply-Chain Risk Mitigation

• Separation Technology/Chromatography and Sample Prep

• Thought Leader in Translational Research & Experimental Reproducibility • Broad Product Offering • eCommerce • Distribution channel • High-quality Scientific Products & Tools • Brand Recognition © 2013 Sigma-Aldrich Co. All rights reserved.

• Reference Standards

Investor Dashboard

>9.7% CAGR

2,704

2,623

2,505

2,271

>5.9% CAGR 2,148

STRONG ROIC

ADJUSTED EPS

SALES GROWTH

$3.76 $3.85

$4.12

19.8%

2013

2009

22.4% 23.2% 20.1%

20.9%

$3.31 $2.85

2009

2013

2009

>17% CAGR

Generating Strong Returns to Shareholders

2013Technologies, Sigma-Aldrich Co.Qiagen, LLC. All rights reserved.

Peers:ŠLife Techne, Thermo-Fisher, Waters, Agilent, Becton Dickinson, Bio-Rad, PerkinElmer, Lonza

2013

Global Market Trends Pharmaceuticals: Decline in Small Molecules due to patent expiration and Rise of Biologic drugs Emerging regions funding growth in scientific research but showing signs of slowing to first-world rates Economic slow-down reducing academic research funding in all major geographies Increasing demand for new diagnostics and testing technologies Regulatory environment increasingly complex and restrictive Increasing pace of consolidation — Channel and content scale becoming increasingly important

Š 2013 Sigma-Aldrich Co. All rights reserved.

Another Source of Shareholder Value – A Consolidating Universe Fisher Scientific

SIAL

Apogent Serologicals

LIFE Invitrogen/ ABI

Merck KGaA

Millipore TMO Dionex

?

VWR Alfa Aesar

Pall

Varian Varian

?

Sciex

Dako

QGEN

Dako Agilent QGEN Agilent

Digene

Danaher Digene Beckman Coulter 11

© 2013 Sigma-Aldrich Co. All rights reserved.

Agreement to Merge with Merck KGaA Announced One Year Ago, Deal Close Pending EC Conditions

September 22, 2014

• • • •

Combination creates a leading global life-science company Values Sigma-Aldrich at $17B, a $5B premium over pre-announcement Expands both Channel and Content for both companies Winning strategy for Customers and Employees 12

© 2013 Sigma-Aldrich Co. All rights reserved.

Building Content and Channel Scale

Š 2013 Sigma-Aldrich Co. All rights reserved.

Building Content and Channel Scale

Š 2013 Sigma-Aldrich Co. All rights reserved.

Building Content and Channel Scale

Š 2013 Sigma-Aldrich Co. All rights reserved.