 ® 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 |