EX-99.2 3 dex992.htm CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN THE PRESS RELEASE Certain supplemental information not included in the press release
®
Sigma-Aldrich Corporation
Q4 2008 Earnings Webcast
We
are
Committed
to
Accelerating
our
Customers’
Success
through
Leadership
in
Life
Science,
High
Technology
and
Service
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,
cash
flow,
share
repurchases
and
return
on
equity.
These
statements
involve
assumptions
regarding
Company
operations,
investments
and
acquisitions
and
conditions
in
the
markets
the
Company
serves.
While
we
believe
that
these
expectations
are
based
on
reasonable
assumptions,
such
statements
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)
declining
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
to
the
Consolidated
Financial
Statements
–
Uncertainty
in
Income
Taxes
-
in
the
Company’s
Form
10-Q
report
for
the
quarter
ended
September
30,
2008,
(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)
the
impact
of
acquisitions
and
success
in
integrating
and
obtaining
projected
results
from
the
acquisitions,
(12)
other
changes
in
the
business
environment
in
which
the
Company
operates,
and
(13)
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,
2008.
A
further
discussion
of
risk
factors
can
be
found
in
Item
IA
of
the
Company’s
Form
10-K
report
for
the
year
ended
December
31,
2007.
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.
While
able
to
report
historical
currency
impacts
after
the
fact,
we
are
unable
to
estimate
changes
that
may
occur
in
2009
to
applicable
rates
of
exchange
and
thus
are
unable
to
reconcile
the
projected
non-GAAP
currency
adjusted
internal
growth
rates
for
2009.
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
both
GAAP
and
adjusted
sales
and
income
comparisons
to
reflect
what
it
believes
is
ongoing
and/or
comparable
operating
results
excluding
currency
impacts
and
the
sales
benefit
from
acquisitions.
Management
excludes
these
other
items
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.
Management
believes
this
non-GAAP
information
is
useful
to
investors
as
well. 

®
Sigma-Aldrich
Corporation
Q4
2008
Earnings
Webcast
We
are
Committed
to
Accelerating
our
Customers’
Success
through
Leadership
in
Life
Science,
High
Technology
and
Service

4
®
2008 Results
•
Sales: $2.2 Billion
-
8% reported growth; 5% organic growth
•
EPS-Diluted: $2.65
-
13% growth
RECORD
YEAR
FOR
SALES
&
EARNINGS

5
®
2004
2005
2006
2007
2008
Top
line
growth
over
the
last
5
years
exceeded
our
10%
CAGR
target
1.409
1.667
1.798
2.039
2.201
1.5
2.0
2.5

6
®
…allowing
us
to
provide
solid
returns
to
our
shareholders.
1.67
1.88
2.05
2.34
2.65
1.00
2.00
3.00
0.34
0.38
0.42
0.46
0.52
0.20
0.30
0.40
2004
2005
2006
2007
2008
0.50

7
®
2008 Accomplishments
•
Aligned
Structure
with
Customers
-
More
customer-centric
-
Increased
recognition
as
a
major
player
in
Life
Science
and High Technology markets
•
Expanded
in
Faster-Growing
Markets
-
CAPLA
growth
–
Reported:
12%;
Organic:
9%
-
CAPLA
sales
now
at
22%
of
total
sales
•
Built
on
Internet
&
E-commerce
Capabilities
-
Increased
E-commerce
sales
to
42%
of
research
sales
-
Record visits to Web Site
•
Leveraged Process Improvement
-
Exceeded
$15
million
goal
in
annual
savings
•
Accelerated
Technology
Additions
-
70
new
license
agreements

8
®
Looking Ahead -
2009
•
Continue
focus
on
Life
Science
&
High
Technology
markets
•
Invest
and
grow
in
emerging
markets
•
Extend
e-commerce
capability
•
Develop/acquire
new
technologies
•
Streamline
global
supply
chain
INITIATIVES
EXPECTED
TO
MITIGATE
UNCERTAIN
MARKET
CONDITIONS

9
®
Fourth Quarter Income Statement
(in millions, except per share amounts)
2008
THREE MONTHS ENDED DECEMBER 31
Provision
for
Income
Taxes
$ 510   
(245) 
265 
(134) 
(16)
115
(4)
111
Net
Sales
Income
Before
Income
Taxes
Interest,
Net
R&D
Operating
Income
S,
G&A
Gross
Profit
Cost
of
Products
Sold
Net-Income
Per
Share-Diluted
Net
Income
(27)
$ 84  
$ 0.68    
BETTER (WORSE) THAN 2007
$ (22) 
22
-
(3)
-
(3)
1
(2)
1
$ (1)
$ 0.04   

10
®
2008 Sales Growth Rates
(Adjusted for Currency/Acquisitions)
Research
Total Company
SAFC
Q4
3.8%
(0.2%)
2.6%
2008
6.2%
2.5%
5.0%

11
®
Margin Analysis
(Percentage of Sales)
52.0%
3.2%
22.5%
21.8%
49.8%
3.0%
22.2%
21.3%
2008
2007
2008
2007
2008
2007
2008
2007
2008
2007
26.3%
24.7%
Gross
Profit
S,G&A
Expenses
R&D
Expenses
Operating
Income
Pre-Tax
Income
51.3%
2.9%
22.9%
22.2%
50.8%
2.9%
22.5%
21.5%
2008
2007
2008
2007
2008
2007
2008
2007
2008
2007
25.5%
25.4%
THREE
MONTHS
ENDED
DECEMBER
31
YEAR
ENDED
DECEMBER
31

12
®
Free Cash Flow
(in millions)
2008
$ 342
99
(55)
18
404
(90)
$ 314
Net
Income
Free
Cash
Flow
Net
Cash
from
Operations
Less
Capital
Expenditures
Other
Changes
in
Performance
Working
Capital*
Depreciation
&
Amortization
2007
$ 311
98
(9)
17
417
(78)
$ 339 
*Accounts
Receivable
+
Inventory
–
Accounts
Payable

13
®
Key Financial Metrics for 2009
•
Sales Growth
DRIVERS
•
Life Science & High Technology Markets
•
Emerging Markets
•
E-Commerce Sales
•
New Technologies
•
Operating Income
•
Strategic Pricing
•
Global Supply Chain Initiative
•
Procurement Initiatives
•
Product Line Analysis
•
Free Cash Flow
•
Working Capital Management
•
Capital Investments
•
Tax Efficiency

14
®
2009 Guidance
•
Organic Revenue Growth
•
Reported EPS
•
Free Cash Flow
Low single digits
At or above 2008
> $300M

15
®
Sigma-Aldrich Corporation
Q4 2008 Earnings Webcast
QUESTIONS?