EX-99.2 3 dex992.htm CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN PRESS RELEASE Certain supplemental information not included in press release
®
Creating Differentiation
Through Innovation
Sigma-Aldrich Corporation
Q4 2009 Earnings Review &
2010 Outlook
Exhibit 99.2

2
®
Cautionary Statements
Our presentation today will include forward looking statements relating to the Company’s future performance, goals, strategic
actions and initiatives and similar intentions and beliefs, including expectations, goals, beliefs, intentions and the like regarding
future sales, earnings, free cash flow, share repurchases and other matters. These statements are based on assumptions
regarding Company operations, investments and acquisitions and conditions in the markets the Company serves.  We believe that
these expectations are reasonable and well-founded. The forward-looking statements in this release are subject to risks and
uncertainties including, among others, certain economic, political and technological factors. Actual results could differ materially
from those stated or implied during this review or contained in other Company communications due to, but not limited to, such
factors as (1) global economic conditions, (2) changes in pricing and the competitive environment and the global demand for our
products, (3) fluctuations in foreign currency exchange rates, (4) changes in research funding and the success of research and
development activities, (5) dependence on uninterrupted manufacturing operations, (6) changes in the regulatory environment in
which the Company operates, (7) changes in worldwide tax rates or tax benefits from domestic and international operations,
including
the
matter
described
in
Note
4
–
Uncertainty
in
Income
Taxes
–
to
the
Consolidated
Financial
Statements
in
the
Company’s
Form
10-Q
report
for
the
quarter
ended
September
30,
2009,
(8)
exposure
to
litigation,
including
product
liability
claims, (9) the ability to maintain adequate quality standards, (10) reliance on third party package delivery services, (11) failure to
achieve planned cost reductions in global supply chain rationalization, (12) an unanticipated increase in interest rates, (13) failure
of sales initiatives in our Research and SAFC businesses, (14)  other changes in the business environment in which the Company
operates, and (15) the outcome of the matters described in Note 13-Contingent Liabilities and Commitments-in the Company’s
Form 10-Q report for the quarter ended September 30, 2009.  A further discussion of risk factors can be found in Item 1A of the
Company’s Form 10-K report for the year ended December 31, 2008. The Company does not undertake any obligation to publicly
update the matters covered in this presentation.
With over 60% of sales denominated in currencies other than the U.S. dollar, management uses currency-adjusted growth, and
believes
it
is
useful
to
investors,
to
judge
the
Company’s
controllable,
local
currency
performance.
Organic
sales
growth
data
presented
in
this
review
is
proforma
data
and
excludes
currency.
While
able
to
report
historical
currency
impacts
after
the
fact,
we
are unable to estimate changes that may occur in 2010 to applicable rates of exchange and thus will be unable to reconcile the
projected non-GAAP currency adjusted internal growth rates to reported GAAP growth rates for 2010.  Any significant changes in
currency exchange rates would likely have a significant impact on our reported growth rates due to the volume of our sales
denominated in foreign currencies.
Management also reports both GAAP and adjusted sales and income (including EPS) comparisons to reflect what it believes are
ongoing and/or comparable operating results excluding currency impacts. Management excludes this item in judging its historical
performance and in assessing its expected future performance.  Management also uses free cash flow, a non-GAAP measure, to
judge its performance and ability to pursue opportunities that enhance shareholder value.  Management believes this non-GAAP
information
is
useful
to
investors
as
well.
Reconciliations
of
GAAP
to
non-GAAP
information
are
included
in
the
Company’s
February 10, 2009 earnings release posted on its website, www.sigma-aldrich.com

3
®
Fourth Quarter 2009 Financial Results
Diluted EPS
Net Income
Sales
$573
$  93
$0.75
Q4 2009
(in millions, except EPS)
12%
10%
10%
As Reported
Free Cash Flow
$122
54%
6%
18%
19%
Excluding
Currency Impact
54%
YEAR-OVER-YEAR
Q4
performance
reflects
improved
sales
growth
for
research
and   
SAFC businesses and record quarterly EPS for 2009

4
®
Full Year
2009 Financial Results
Free Cash Flow
2009 Performance drives EPS to new record
Diluted EPS
Net Income
Sales
$2,148
$   347
$  2.80
Full Year 2009
(in millions, except EPS)
2%
6%
As Reported
$   396
26%
2%
16%
21%
Excluding
Currency Impact
26%
YEAR-OVER-YEAR
2%

5
®
2009 Sales Growth
(Adjusted for Currency)
Demand for research products continued to show growth.
SAFC sales show progressive quarterly increases
Total
Company
SAFC
Research
RESEARCH
72%
28%
SAFC
Sales Mix (YTD)
Q4 2009/Q4 2008
3.1%
11.9%
5.6%
1.7%
0.6%
2.1%
Full Year 2009/ Full
Year 2008

6
®
Margin Analysis
Q4 2009 pre-tax margins improved despite currency
headwinds and restructuring charges
PERCENTAGE OF SALES
21.8%
(3.2%)
2.9%
0.7%
1.1%
0.1%
21.9%    
S,G&A Expenses
R & D Expense
Supply Chain Initiatives
Price/Volume/Mix
YTD
22.2%
(2.4%)
1.2%
1.3%
-
22.8%    
2008: Pre-tax Profit Margin
Impact of Currency
Q4
Interest Expense
0.3%
0.2%
0.7%
2009: Pre-tax Profit Margin
Restructuring Costs
(1.8%)
(0.4%)

7
®
Free Cash Flow
(in millions)
Net Cash from Operations
Less Capital Expenditures
Changes in Performance Working Capital*
*Accounts
Receivable
+
Inventory
–
Accounts
Payable
2009
$ 347
92 
57  
20
516
(120)
$ 396
Net Income
Free Cash Flow
Other
Depreciation & Amortization
2008
$ 342
99 
(54)    
17
404
(90)
$ 314 
YEAR ENDED DECEMBER 31
2009 free cash flow sets new annual record

8
®
2010 Guidance
Organic Revenue Growth
Reported EPS
Free Cash Flow
Mid single digits
$3.00 to $3.15
>$350M

9
®
Fourth Quarter –
Key Business
Highlights
•
Strong growth Research Biotech sales
driven by innovative new antibody
products, novel transgenic animals,
regenerative medicine,epigenetic
products and knock-out rats.
•
Knock-out rats recognized as a Top 5
Innovation in 2009 by The Scientist
Magazine
•
Increased e-commerce sales to 45% of
worldwide research-based sales from
42% in 2008.
•
Continued growth in CAPLA countries,
with a contribution of 21% of total sales.
•
SAFC booked orders for future delivery
remain strong
•
Achieved another $4 million in supply
chain process improvement benefits.

10
®
0.58
0.52
0.46
0.42
0.38
0
0.1
0.2
0.3
0.4
0.5
0.6
2005
2006
2007
2008
2009
Profitable Growth
•
Demonstrated historical
performance
•
Robust business model–
even in a downturn
Continued a 35 year track record
DILUTED EARNINGS PER SHARE ($)
2.80
2.65
2.34
2.05
1.88
0.5
1.5
2.5
3.5
2005
2006
2007
2008
2009
ANNUAL DIVIDEND PER SHARE ($)
2,148
2,201
2,039
1,798
1,667
0
500
1,000
1,500
2,000
2,500
2005
2006
2007
2008
2009
REPORTED SALES $ IN MILLIONS

11
®
OPERATING CASH FLOW ($M)
516
404
417
330
281
0
100
200
300
400
500
600
2005
2006
2007
2008
2009
CAPITAL EXPENDITURES ($M)
120
90
78
75
92
0
50
100
150
2005
2006
2007
2008
2009
Strong Cash Flow
Able to fund short and long term growth

12
®
2009 –
Key Business Highlights
Large
Product Offering
Products –
170,000
(# of products)
Pharmaceutical,
Diagnostics,
Biotechnology
Companies 
Chemical & Allied Industrial Companies
Customers
–
92,000
accounts
Universities, Government, Not-for-Profit Organizations
Hospitals & Commercial Laboratories
35%
27%
7%
31%
40,000
Chemicals
Equipment items
130,000
(48,000
manufactured)
Broad
Customer Base
•
Increased product offering
by 31%
•
Increased customer
accounts by 5%
•
Added initiatives to
accelerate growth in
analytical, biological and
chemistry sectors.
Strategically positioned for sustainable growth

13
®
What differentiates Sigma-Aldrich?
•
Diverse Manufacturing Capabilities
•
Complex Biologics
•
Small Molecules
Bench to Bulk
•
Full line capability from nanogram
to kilogram quantities
Information
•
Product Sources
•
Regulatory
•
Application
•
Storage
•
Safety
Chemistry
Biology
Analytical
•Broad
range
of
scientific
expertise
Unrivalled Scientific Knowledge

14
®
2010 Guidance
Organic Revenue Growth
Reported EPS
Free Cash Flow
Mid single digits
$3.00 to $3.15
>$350M

15
®
QUESTIONS?
Sigma-Aldrich Corporation
Q4 2009 Earnings Review