 Sigma-Aldrich Corporation 2010 Shareholders Meeting Enabling Science to Improve Quality of Life May 4, 2010 Exhibit 99.1 |
 2 2 Cautionary Statement 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 matters described in Note 4 – Income Taxes – to the Consolidated Financial Statements in the Company’s Form 10-Q for the quarter ended March 31, 2010 and 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 planned 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 outstanding matters described in Note 15 – Contingent Liabilities and Commitments – to the Consolidated Financial Statements on the Company’s Form 10-Q for the quarter ended March 31, 2010 and 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 the Company’s 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 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. 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, 2010 and April 22, 2010 earnings releases posted on its website, www.sigma-aldrich.com |
 3 3 Agenda 2009 Business and Financial Highlights Our Company Plans for Growth First Quarter Results and Full Year 2010 Outlook |
 4 4 Our Objectives Mission – Enabling science to improve the quality of life Vision – To be the trusted global partner of choice for our customers Objective – To deliver sustainable above-market growth and create value for our Employees, Customers and Shareholders by building on our core capabilities and leveraging our financial strength |
 5 5 Who is Sigma-Aldrich? Delivering Value Through a Balanced Portfolio Diversified approach to yield consistent returns |
 6 6 70% Research Consumables 30% Fine Chemicals & Services Who is Sigma-Aldrich? •Research Business • Customers – Academia – Pharma & Biotech – Industrial – Hospitals – Testing Labs • Products (170,000; 48,000 Manufactured) – Reagents – Chemicals – Biochemicals – Standards – Lab Supplies – Kits •Manufacturing (SAFC) • Customers – Pharma – Biotech – Hitech • Capabilities – Chemical Synthesis (API’s, Intermediates) – Isolation, Extraction, Purification – Fermentation – Assay Development – Media Formulation – Services A leading Life Science company enabling researchers and manufacturers to improve the quality of life |
 7 7 2009 Financial Highlights Record Year for Earnings and Free Cash Flow Strong performance in a challenging economy |
 8 8 Historical Performance – Profitable Sales Growth 35 years of continuous EPS growth • Demonstrated historic performance • Robust business model |
 9 9 Historical Performance – Shareholder Returns •Returns Consistently deliver superior returns • Sustained high returns • Shareholder returns outperformed peers and broad market indices Peers: Affymetrix, Cambrex, Dionex, Illumina, Life Technologies, Millipore, Qiagen, Techne, Thermo-Fisher, Waters $146.02 $105.96 $131.68 $186.91 $176.98 $188.05 $100.00 0 50 100 150 200 2004 2005 2006 2007 2008 2009 31-Mar SIAL PEERS Nasdaq 100 S&P 500 DJIA |
 10 10 2009 Highlights Key Business Highlights • Research Biotech growth drivers – Innovative new antibody products – Regenerative medicine • Fine Chemicals (SAFC) benefits from sale of H1N1 vaccine components • Continued growth in CAPLA markets (21% of total sales) • Increased e-commerce sales to 45% of world-wide research-based products (42% in 2008) Supporting the advancement of science, education, innovation, thought leadership and environmental sustainability |
 11 11 2009 Highlights Awards and Recognitions •Research Biotech • Top 5 Innovations of 2009 for knockout rat – The Scientist magazine • 2009 North America Healthcare Innovation Award – Frost & Sullivan • 2009 CIO 100 award for innovative web research tool, Your Favorite Gene powered by Ingenuity – CIO magazine •SAFC • European Outsourcing Award for Best Supply Chain Management – Merck • 2009 Abbott Supplier Excellence Award •Sigma- Aldrich • Best Places to Work in Industry – The Scientist magazine • Most Useful and Easiest to Use Online Catalog – BioInformatics |
 12 12 2009 Highlights Commitment to Corporate Citizenship •Team Sigma-Aldrich Celebrates 5th Anniversary • 1,300 employees participated in 23 events • Introduced two new sites to the program – Castle Hill, Australia – Oakville, Canada • Employees gave back over 4,200 hours of service • Events: – Habitat for Humanity ® (Lenexa, Kansas) – Community outreach program (Arklow, Ireland) • Sigma-Aldrich / the Sigma-Aldrich Foundation donated $1 million in products and cash |
 13 First Quarter 2010 Financial Results vs. Prior Year 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 Diluted EPS, excluding restructuring costs were $0.84, 24% higher than the same period last year |
 14 14 2010 Outlook Free Cash Flow Reported EPS Organic Revenue Growth $3.05 to $3.20 > $350 million Mid single digits |
 15 15 Objectives: 2010-2014 Strategic actions build sustainable value Top line organic growth (normal economic conditions) 7-8% Expand cumulative operating margins by 2014 200-300 bpts Cumulative free cash flow (five years) > $2 Billion • Deliver above-market top-line growth and profits Five-Year Financial Targets Incremental Impact |
 16 Initiatives 16 Plan to Achieve Objective Top Line Growth Initiatives 4% incremental contribution to top line growth Innovation ABC M Focus Analytical Expand into attractive areas of detection and analysis Biology Increase focus on biology Expand traditional product portfolio and build new targeted platform technologies Chemistry Leverage chemistry knowledge to offer products for materials research and manufacturing Geographic Expansion Increase presence and assets in faster growth economies Optimize Go-to-Market Expand Web and B2B capabilities Realign sales effort SAFC/Unique Mfg. Capabilities Apply our technologies to customers’ unique and evolving supply chains |
 17 17 Impact of Top-Line Growth Initiatives to achieve above market growth rates |
 18 18 Plan to Achieve Objective Expand Operating Margins Portfolio optimization Capacity utilization Focus on differentiation Sourcing knowledge Competitive pricing strategies Operational excellence Optimize supply chain Leverage process improvement Leverage core competencies through targeted initiatives to create value |
 19 19 Profitability Drivers Impact of Initiatives Net 200-300 basis point improvement in operating margin over five years |
 20 20 Future Uses of Cash 2010 and Beyond • Fund organic growth through technology, partnerships, licensing and go-to-market investments • Fund inorganic growth • Cash dividends • Share repurchases • Debt reduction Expect free cash flow to be in excess of $2 billion over next five years |
 21 21 Infrastructure remains a key differentiator as we drive demand Investments for Growth • Shanghai, China • New 35,000 sq. ft. distribution and warehousing center |
 22 22 Infrastructure remains a key differentiator as we drive demand Investments for Growth • Shanghai, China • New 35,000 sq. ft. distribution and warehousing center • Jerusalem, Israel • Large-scale fermentation plant to produce biologics |
 23 23 Infrastructure remains a key differentiator as we drive demand Investments for Growth • Shanghai, China • New 35,000 sq. ft. distribution and warehousing center • Jerusalem, Israel • Large-scale fermentation plant to produce biologics • Carlsbad, California • Capacity expansion to produce viral vaccine components |
 24 24 Infrastructure remains a key differentiator as we drive demand Investments for Growth • Shanghai, China • New 35,000 sq. ft. distribution and warehousing center • Jerusalem, Israel • Large-scale fermentation plant to produce biologics • Carlsbad, California • Capacity expansion to produce viral vaccine components • Verona, Wisconsin • New state-of-the-art plant to make high-potency active ingredients |
 25 25 Sigma-Aldrich Uniquely Positioned for Value Creation Compelling investment opportunity Unrivaled scientific knowledge and unsurpassed service Diversified portfolio: products, customers Expanding global footprint History of profitable growth Strong financial position and cash flow Plans to enhance growth rates and improve profitability |
 Sigma-Aldrich Corporation 2010 Shareholders Meeting Enabling Science to Improve the Quality of Life Questions? |