CORPORATE PRESENTATION 2020

TABLE OF CONTENTS

JGL Overview

Market Performance

Financial Performance

JGL GROUP

Revenue: 98mEUR

Employees: 834

Revenue: 22mEUR

Employees: 140

Revenue: 2mEUR

Employees: 28

Data as of 31/12/2019

JGL GROUP, LEGAL SUBJECTS

JGL Pharma

www.jgl.hr

VISIONJGL aims to become a global

pharmaceutical company

specialised in the development

and production of value-added

sterile products in ophthalmology

and ENT and

the leader in using the benefits of

seawater for health purposes.

STRATEGIC FOCUS1. Internationalisation of business

2. Closeness with customers and partners

3. Operational efficiency

4. Technological focus

1002total number

of employees

834employees atJGL Pharma

67%of employees have university

degrees

average age of employees

of employees are women

42

76%

EMPLOYEES

Data as of 31/12/2019

EMPLOYEES BY COUNTRY AND ROLE

Rijeka405 IN TOTALPRODUCTION 149QUALITY 87R&D 32OTHER 137

Zagreb56 IN TOTALMARKETING AND SALES 43REGISTRATIONS 13

SloveniaMARKETING AND SALES 6

Serbia19 IN TOTALMARKETING AND SALES 13TECHNICAL OPERATIONS 6

MacedoniaMARKETING AND SALES 5

RussiaMARKETING AND SALES 205

BelarusMARKETING AND SALES 17

KazakhstanMARKETING AND SALES 39

UkraineMARKETING AND SALES 50

Bosnia MARKETING AND SALES 26

direct presence in nine markets multinationality – 373 out of 834 JGL Pharma employees work outside Croatia

diverse and expert work force

AQUA MARIS

brand launched in 1999 in Croatia

a line consisting of 100% natural products on the basis of Adriatic seawater for the prevention and treatment of upper respiratory tract ailments

products suitable for babies from the first day of life, infants and pregnant women – purity and mild action are key

preservative- and additive-free products manufactured according to pharmaceutical sterility standards and European quality practice

no reported side effects, high quality and an exceptional safety profile

MANUFACTURE

Key technologies:

STERILE SOLUTIONS – eye drops, sprays, nasal drops

BAG-ON-VALVE – nasal and throat sprays

sprays with 360°applications and a continuous stream

microbiological purity with a preservative-free formulation

complete emptying of the bottle and usage of the product

longer shelf life

provides controlled spraying regardless of the application angle

BoV TECHNOLOGY – STERILE AND PRESERVATIVE FREE

Other technologies:

solid oral forms – capsules and tabletssemi-solid forms – ointments, creams and gelssolutions – syrups, herbal drops, dermatological solutions and teas

Production at the JGL Pharma Valley site:

the concept of continuous productionan automated, robotised storage facility with over 5000 pallet placesflexible packaging lines adapted to market requirements

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

RESEARCH AND DEVELOPMENT, QUALITY

An integral part of JGL’s business policy is the reliance on self-developed products.

The quality of all products and services is a key priority.

JGL is certified according to the following standards:

EU GMP

Russian GMP

ISO 9001:2015 Quality Management

DS/EN ISO 13485:2016 Quality Management – MD

ISO 22000:2005 Food Safety Management

DIN/EN ISO 50001:2011 Energy Management Systems

CE certificate (Dir. 93/42/CEE) – Manufacture of MD

The R&D department primarily focuses on the following:

creating a product development strategy

developing value-added products for the consumer

developing formulations with optimal packagingdeveloping and optimising the technological processdeveloping and validating analytical methods monitoring the stability of finished products in global marketsimproving products in the portfolio

INSPECTIONS/AUDITS IN 2019

SIQ, notified body for medical devices, Slovenia Bureau Veritas

Certification, Croatia, ISO 22000:2005

HALMED, Croatian Agency for Medicinal Products and Medical Devices

Research Medical Center of Certification, Ukraine

ISS, notified body for medical devices, Italy

Eurofins, notified body for medical devices, Italy

Bureau Veritas Certification, Croatia, ISO 9001:2015

Bureau Veritas Certification, Italy, DS/EN

Ministry of Health, Croatia

Bureau Veritas Certification, Croatia, DS/EN ISO 50001:2011

GOST R, Russia

HALMED, Croatian Agency for Medicinal Products and Medical Devices

Ministry of Industry and Trade, Russia

SIQ, notified body for medical devices, Slovenia

CORPORATE SOCIAL RESPONSIBILITY

advanced technological and eco-friendly solutions – a photovoltaic power station for own use, LED lighting, free cooling system, power plant, solar system power, bicycles and hybrid vehicles

loyalty programs and customer outreach through discounts and various benefits offered by the JGL Plus app and the “Mamina škrinjica” (Mom’s chest box) club for parents and pregnant women

sponsorships, donations and partnerships aimed at developing the social environment (the European Pharmaceutical Students’ Association (EPSA) Congress, Diving Medicine Summer School, the Fiumanka sailing regatta, PartneRI, the Croatian Union of Societies “Naša djeca” (Our Children), etc.)

volunteering activities of our employees for the betterment of the community and promotion of health, sports and care for the environment (beach and sea clean-ups, blood drives, the “Allergic to allergies” initiative, the “Boranka” project, the “Roditelji nazadatku” (Parents on a Mission) initiative, “Pablo budi fit and that’s it” (With Pablo, be fit and that’s it), etc.)

TABLE OF CONTENTS

JGL Overview

Market Performance

Financial Performance

SALES IN 2019 (1)

43%

17%

12%

7%

6%

5%

3%

4%

Ukraine

Kazakhstan

Russia

B2B

Belarus

Croatia

2%

Bosnia

Slovenia

1%

Serbia Other

36%

7%

6%6%3%

3%

12%

22%

Aknekutan

Aqua Maris

MeralysAknet

ProlifeFolacin

Vizol S

Other

Dramina

B2B

2%2%

SALES BY MARKET SALES BY BRAND

Russia has traditionally been JGL’s biggest market

Ukraine, B2B and Belarus markets recorded the strongest growth

Aqua Maris provides a strong foundation, while the share of Meralys, Aknekutan, Folacin, B2B is growing…

SALES IN 2019 (2)

in terms of percentages, Belarus has

shown the biggest growth, followed by B2B, Ukraine and Bosnia and Herzegovina

Russia has recorded the strongest growth

in absolute terms

Croatia maintains stable growth ata rate of 4%

MARKETS

Vizol S is experiencing a 37% increase,

which is the result of the stability in the SEE

region and its Ukraine and Kazakhstan launch

Aqua Maris is bringing in EUR 4,6 m (+15%) more in revenue than in 2019

BRANDS

Net sales (mEUR) FY 2018 FY 2019 abs. %

Russia 36,0 41,4 5,3 15%

Croatia 15,7 16,3 0,6 4%

B2B 7,9 11,6 3,7 46%

Ukraine 5,0 6,2 1,2 24%

Bosnia and Herzegovina 5,3 6,5 1,2 23%

Kazakhstan 4,0 4,4 0,5 11%

Belarus 1,8 2,9 1,1 62%

Slovenia 1,7 1,8 0,1 9%

Serbia 1,2 1,3 0,1 7%

Other 3,4 3,7 0,3 9%

TOTAL 82,0 96,2 14,1 17%

Net sales (mEUR) FY 2018 FY 2019 abs. %

AQUA MARIS 29,6 34,2 4,6 15%

MERALYS 5,5 7,1 1,6 29%

DRAMINA 4,9 5,7 0,8 16%

AKNEKUTAN 5,0 5,6 0,6 11%

AKNET 2,9 3,3 0,4 13%

PROLIFE 2,3 2,5 0,3 11%

FOLACIN 2,1 2,4 0,3 12%

VIZOL S 1,6 2,2 0,6 37%

B2B 7,9 11,6 3,7 46%

Other 20,1 21,6 1,4 7%

TOTAL 82,0 96,2 14,1 17%

KEY BRANDS

VIZOL S (drops for dry eye, preservative free)

grew by 32% in 2019 in comparison to the previous year

stable growth in sales in Croatia (+28%) and Belarus (49%)

VISET (drops for red eyes), the first preservative-free, tetryzoline-based product

registered in the EU

MERALYS (decongestant, preservative free)

in 2019, Meralys experienced growth at the rate of 34% in Croatia, 95% in Kazakhstan, 44% in

Belarus, and 26% in Ukraine

NASORYL M, the only combination of xylometazoline and ipratropium on the Croatian market

AKNEKUTAN (acne)

an increasingly significant share in JGL’s sales of 6% in 2019

records growth on the markets of Russia (+6% in comparison with the same period of

the previous year), Ukraine (+29% in comparison with the same period of the previous

year) and Belarus (+100% in comparison with the same period of the previous year)

DRAMINA (prevents nausea, vomiting and vertigo associated with motion sickness)

total product sales revenue increased by 14% in comparison with 2018

the Russian market holds the highest share in sales (74%), followed by Croatia at 6%

JGL’s leading export brand makes up 38% of

JGL sales, with a 15% increase in sales in 2019

the strongest growth rate is visible on the

Belarus market at 31%

the highest rate of sales for Aqua Maris has

been recorded on the Russian market – a total of

EUR 24,5m in 2019

AQUA MARIS

-15

-10

-5

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

35.032.527.5 37.5-10.0 -7.5 -2.5-5.0 0.0 12.510.05.0 7.5 15.0 25.0 30.02.5

Meralys

Aqua Maris7.6

9.1Vizol/Optinol

Oftalma Rx8.6

Dramina2.4

AQM Ectoin1.1

6.7

CROATIA – JGL PORTFOLIO

in mHRK Market share

JGL’s growth rate

Source: IMS

RUSSIA – JGL PORTFOLIO

-15

-10

-5

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

12,5 15,07,5 17,5 22,5 27,5 62,5-10,0 5,00,0-5,0 25,020,0-7,5 -2,5 2,5 10,0

Aqua Maris

Meralys369

Vizol/Optinol66

Acnecutan + Rozamet474

Zerkalin

Dramina441

AQM Ectoin273

2.380

Market share

103

in mRUB

JGL’s growth rate

Source: DSM

UKRAINE – JGL PORTFOLIO

-15

-10

-5

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

12446-8-10 -6 5042 114-4 -2 0 34 6236304 6 8 26 28 104 106 108 110 112 116 118 120 122322 38 40 44 48 52 56 58 60 96 98 100 10254

Zerkalin0.3

Dramina0.3

AQM Ectoin0.0

Aqua Maris3.9

Meralys0.7

Vizol/Optinol0.4

Ophta RX

Acnecutan + Rozamet1.3

in mEUR Market share

JGL’s growth rate

Source: Proxima

-15

-10

-5

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

105

4020 95-10 140 145 310 320 325135-5 0 5 10 3515 4530 31525

0.3AQM Ectoin0.1

Dramina

Aqua Maris2.7

Meralys0.2

Vizol/Optinol0.1

Ophta RX0.2

Acnecutan + Rozamet0.3

Zerkalin0.2

KAZAKHSTAN – JGL PORTFOLIO

in mEUR Market share

JGL’s growth rate

Source: IMS

B2B – COOPERATION WITH INTERNATIONAL PARTNERS

thanks to the distribution of JGL brands and cooperation through licensing, JGL productsare widely present in Europe and the ASEAN and MENA regions

JGL also cooperates with large pharmaceutical manufacturers through contract manufacturing

TABLE OF CONTENTS

JGL Overview

Market Performance

Financial Performance

RECORD-BREAKING PERFORMANCE OF THE PHARMACEUTICAL BUSINESS IN 2019

2017200920072005 20112006 2008 2010 2012

60

2013 2014

0

2015 2016

20

2018 2019-30

70

-20

10

-10

30

40

50

80

90

10098

17

10

results exceeded in terms of both revenue and profitability

Annual performance

in mEUR

Operating revenue EBITDA EBT

NET DEBT/EBITDA

continued increase in revenue and profitability entering the region of financial security (debt factor of 2.8x)

52

80 8598

FY16 FY17 FY18 FY19

+25

+23,9%

EBITDA Operating revenue

8.9% 15.1%

EBITDA margin %

Operating profit (EBITDA) Indebtedness (net debt/EBITDA)

118

69

51 47

7 13 17

FY 2017

-8

FY 2016 FY 2019FY 2018

15.0 9.7

net debt/EBITDA

4.0 2.817.1%-15.2%

in mEUR

Net debt EBITDA

JGL PHARMA RESULTS IN 2019

continuedimprovement in business operations and performance

revenue growth at twice the rate of operating costs

FY

JGL Pharma

2016 norm. 2017 norm. 2018 20192019 vs

2016

mEUR mEUR mEUR mEUR CAGR

Operating revenue 51,7 80,3 85,5 98,3 24%

OPEX 64,6 77,9 77,2 87,2 11%

Amortization and value adj. 5,0 4,7 4,6 5,7 5%

EBITDA -7,9 7,1 12,9 16,8 229%

EBIT -12,9 2,4 8,3 11,1 195%

Financial income 8,9 2,8 0,5 3,3 28%

Financial expense 16,7 8,6 6,6 4,1 37%

EBT -20,6 -3,4 2,2 10,4 180%

EBITDA% -15,2% 8,9% 15,1% 17,1%

EBT% -39,8% -4,2% 2,6% 10,5%

JGL PHARMA – DEBT POSITION; NORMALISED

reduced debt in 2016 and 2017 by using divestment funds

reduced debt in 2018 by prepayment of an EBRD loanrepayment of the CBRD principal began in 2019strong cash flow growth through improved management of accounts receivable and inventories

120,4

2016

73,2

118,1

2,3

10,4

69,2

4,0

2017

51,4

3,6

2018

47,4

2019

55,057,8

Net debt Cash on hand Gross debt

in mEUR

THANK YOU