Sigma-Aldrich Corporation

Q1 2010 Earnings Review & 2010 Outlook

Enabling Science to

Improve the Quality of Life

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

10–Income

Taxes–

to

the

Consolidated

Financial

Statements

in

the

Company’s

Form

10-K

report

for

the

year

ended

December

31,

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)

ot

her

changes

in

the

business

environment

in

which

the

Company

operates,

and

(15)

the

outcome

of

the

matters

described

in

Note

11-

Contingent

Liabilities

and

Commitments-in

the

Company’s

Form

10-K

report

for

the

year

ended

December

31,

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,

2009.

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

impacts.

While

able

to

report

historical

currency

impacts

after

the

fact,

we

are

unable

to

estimate

changes

that

may

occur

later

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

uses

proforma

net

income

and

free

cash

flow,

non-GAAP

measures,

to

judge

its

performance

and

ability

to

pursue

opportunities

that

enhance

shareholder

value.

Due

to

the

uncertain

timing

of

the

future

restructuring charges,

we

are

unable

to

include

this

in

the

2010

diluted

EPS

forecast.

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 April 22, 2010 earnings release posted on its website, www.sigma-aldrich.com

3

First Quarter 2010

Financial Results

Diluted EPS

Net Income

Sales

$572

$100

$0.81

Q1 2010

(in millions, except EPS)

10%

19%

19%

As Reported

Free Cash Flow

$133

55%

4%

10%

10%

Excluding

Currency Impact

55%

YEAR-OVER-YEAR

Q1 performance reflects improved sales growth for research and

SAFC businesses and record quarterly EPS

4

Demand for research products continued to show growth.

SAFC sales show progressive quarterly increases

2010 Sales Growth

(Adjusted for Currency)

Sales Mix (YTD)

Total

Company

SAFC

Research

RESEARCH

73%

27%

SAFC

2.8%       

9.0%     

4.4%

Q1 2010/Q1 2009

5

Margin Analysis

PERCENTAGE OF SALES

S,G&A and R & D Expenses

Price

Volume/Mix/Productivity

2009: Operating Income Margin

Impact of Currency

2010: Operating Income Margin

Restructuring Costs

24.1%

0.6%

1.2%

0.2%

(0.7%)

25.7%    

Q1

(1.1%)

Operating margins improved by 160 basis points

6

Q1 Free cash flow sets new quarterly record

Free Cash Flow

(in millions)

Net Cash from Operations

Less Capital Expenditures

Changes in Performance Working Capital*

*Accounts Receivable + Inventory –

Accounts Payable

2010

$ 100

23 

(18)  

46

151

(18)

$ 133

Net Income

Free Cash Flow

Other

Depreciation & Amortization

2009

$ 84

23 

(38)    

45

114

(28)

$ 86 

3 MONTHS ENDED MARCH 31

7

2010 Guidance

Organic Revenue Growth

Diluted Adjusted EPS

Free Cash Flow

Mid single digits

$3.05 to $3.20

>$350M

8

Organic sales growth improved in 2010

First Quarter 2010 Highlights

•Financial Performance

•

Organic Sales Growth

+ 4%

•

Diluted EPS Growth (excluding currency)

+10%

•Customer Sectors

•

Chemical and related

+

•

Diagnostic

+

•

Academic

+

•

Pharmaceutical

-

•Product Highlights

•

New antibodies added

•

Zinc Finger Nuclease adoption growing

•

Expanded Analytical product offering

•

Now

offer

Pfizer

and

Boehringer

Ingelheim

products                                                         

for research applications

•

Strong SAFC Sales

9

Plan to Achieve Objective

Impact of Top Line Growth Initiatives

4% Incremental contribution to top line growth

0.5%

Expand Web and B2B capabilities

Realign sales effort

Optimize

Go-to-Market

1.0%

Apply our technologies to customers’

unique and evolving

supply chains

SAFC/Unique

Mfg. Capabilities

1.0%

Increase presence and assets in faster growth economies

Emerging Market

Expansion

Leverage chemistry knowledge to offer

products for materials research and

manufacturing

Chemistry

Increase focus on biology

Expand traditional product portfolio and build

new targeted platform technologies

Biology

1.5%

Expand into attractive areas of detection

and analysis

Analytical

Innovation

ABC

M

Focus

(U.S. and Europe)

Incremental Impact

Initiatives

10

Q1 2010 Performance

•Innovation

Reported

Organic

•

Analytical, Biology, Materials Science Sales Growth

10-17%

4-10%

•Geographic Expansion

•

Growth in Asia Pacific/Latin America

23%

11%

•

Growth in focus markets –

India, China, Brazil

31%

21%

•SAFC Sales

•

Q1 Performance

14%

9%

•eCommerce

Sales                                   %

of

Research

Sales

•

Research Sales via eCommerce

channels

47%

Initiatives collectively on track with expectations

11

2010 Guidance

Organic Revenue Growth

Diluted Adjusted EPS

Free Cash Flow

Mid single digits

$3.05 to $3.20

>$350M

12

QUESTIONS?

Sigma-Aldrich Corporation

Q1 2010 Earnings Review