Fagron investor presentation

Hans Stols, CEO

Karin de Jong, CFO

Rita Hoke, President Fagron NA

New York, 20 & 21 September 2016

Fagron at a glance

1

FArmaceutische GRONdstoffen was founded in

Rotterdam in 1990

• 2015 Turnover € 473.0 million

• 2015 REBITDA1 € 106.5 million

Active in 32 countries on 5 continents

>2,000 FTE, incl. >200 pharmacists

Leading pharmaceutical compounding company,

bringing customized pharmaceutical care to

hospitals, pharmacies, clinics and patients

Listed on Euronext Brussels and Amsterdam since

5 October 2007Europe52.9%

North America 29.2%

South America17.3%

RoW0.6% FSPS

39.7%

Trademarks 10.6%

Essentials47.6%

HL Techn.2.0%

Turnover 2015

1. REBITDA is EBITDA before non-recurring items and after corporate costs.

High added value products,

concepts and solutions

Fagron strategy

2

Global presence

Innovation and own brands

Operational excellence

Buy and build

Strengthening customer

relationships through

education

Fagron strategy for bringing customized care to our customers

Fagron business model

3

Fagron

Specialty

Pharma Services

Fagron Trademarks

Fagron Essentials

Fagron Specialty Pharma Services

4

Nuclear

Sterile

Non-SterileTablets, capsules, liquids,

crèmes/ointments

Radioactive capsules,

radioactive injections,

radioactive seeds

IV-bags, ampoules, vials,

TPN, cytostatics, syringes,

cassettes, easy pumps

Our unique position worldwide

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Global market leader

Optimizing and innovating pharmaceutical

compounding

Dedicated team of 900 pharmaceutically

educated employees, incl. 200 pharmacists

and 20 researchers

Extensive R&D pipeline

Unique business model

Strong brand names and Trademarks

Global footprint

Our unique position worldwide

6

Group strengths

In-depth pharmaceutical compounding

knowledge

Use best practices

Speed of execution

Extensive global network

Local market expertise

Acquiring and integrating expertise

Our unique position worldwide

7

Operational strengths

Global scalability

Compliant with highest quality standards

Product portfolio optimization

Centralized purchasing

Production efficiency

Consolidation of activities

Fagron Specialty Pharma Services

Fagron Specialty Pharma Services facilities worldwide

Belgium

Bornem (sterile and non-sterile)

France

Paris (non-sterile)

South Africa

Johannesburg (non-sterile)

Cape Town (sterile and non-sterile)

George (sterile and non-sterile)

Greece

Trikala (non-sterile)

Colombia

Bogotá (non-sterile)

Cali (non-sterile)

Medellin (non-sterile)

Netherlands

Oud Beijerland (sterile and non-sterile)

Helmond (sterile and non-sterile)

Hoogeveen (sterile and non-sterile)

Oldenzaal (sterile and non-sterile)

Goes (sterile and non-sterile)

North America

Wichita, Kansas (FDA section 503B)

Wichita, Kansas (FDA section 503B)

Tampa, Florida (FDA section 503A)

Las Vegas, Nevada (FDA section 503B)

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Fagron Specialty Pharma Services

10

Fagron Specialty Pharma Services

11

Elastomeric pump Morphine cassettes

Fagron aseptic pack Prefilled syringes

Fagron Specialty Pharma Services

12

Intravitreal eye injections Antibiotic prophylaxis

IV-bag Cytostatics

Fagron Trademarks

Fagron Trademarks

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Growth driven by local innovations and the global

launch of Fagron Advanced Derma, SyrSpend®

SF and Pentravan®

Global presence boosts cross selling and

innovation

Increasing interest for Fagron Trademarks by

pharmaceutical industry

Global Fagron R&D network

R&D pipeline includes concepts on dermatology,

psoriasis, alopecia, transdermal applications

Fagron Essentials

Fagron Essentials

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2,500 pharmaceutical raw materials, in

addition to equipment and compounding

supplies

Fagron has sourcing offices in the

Americas, Europe and Asia

Global reach helps to efficiently audit,

qualify and source raw materials. This

results in full traceability and a high quality

standard

Indication areas are determined based on

the top 1,000 pharmaceutical raw

materials

Trademarks are being developed to

support Fagron’s prescriber concept

Operational review first semester of 2016

Headlines

18

Turnover decreased by 3.1% (+2.2% at constant exchange rates) to

€ 210.2 million

REBITDA decreased by 21.4% to € 45.6 million or 21.7% of turnover

Successful completion of capital increase with proceeds of

approximately € 219 million

Net financial debt decreased to € 301.0 million after both tranches of

the capital increase

Net financial debt / REBITDA-ratio of 3.4 after both tranches of the

capital increase

2016 Outlook: Turnover of at least € 415 million and REBITDA of

between € 85 million and € 95 million

Financing – Long Term Waivers

19

Long Term Waivers received on 5 May 2016

Financial covenants were adjusted to give Fagron extra latitude which will

decrease with every six-month test period

In each test period after 30 June 2018, the levels of the financial covenants

will return to the levels stipulated in the RCF and Note Purchase Agreement

Net financial debt / REBITDA-ratio of 3.4 after both tranches of the capital

increase

Test period Financial covenants

Net financial debt / REBITDA REBITDA / net interest charges

31 December 2016 Max. 5.02x Min. 1.81x

30 June 2017 Max. 4.60x Min. 1.98x

31 December 2017 Max. 4.09x Min. 2.32x

30 June 2018 Max. 3.60x Min. 2.80x

After 30 June 2018 Max. 3.25x Min. 4.00x

Consolidated turnover

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(x € 1,000) S1 2016 S1 2015 Total growth Total growth

CER

Organic

growth

Organic

growth CER

Fagron 205,678 211,497 -2.8% +2.6% -6.8% -1.6%

HL Technology 4,559 5,500 -17.1% -14.0% -17.1% -14.0%

Total 210,237 216,997 -3.1% +2.2% -7.1% -1.9%

CER = constant exchange rates

Positive turnover developments in local currency in Europe, Brazil, RoW and

for the sterile FSPS-activities in the United States

As expected, changes in the reimbursement system for non-sterile

compounding in United States continued to have a negative impact on

turnover and profitability of Fagron Essentials and Fagron Trademarks

Turnover developmentExcluding HL Technology (in € 1,000)

21

211.497205.678

1.37811.501

3609.22716.868

11.417

Turnover S12015

Europe* South America North America Rest of World Currency effect Acquisitions Turnover S12016

* The sell off of a small compounding pharmacy in Marseille (France) had a negative impact of € 1 million on turnover of the Fagron activities in Europe in

the second quarter of 2016.

Fagron Specialty Pharma Services

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Organic turnover growth of 4.0% (+4.8% at CER)

United States

• Strong turnover growth in the sterile FSPS activities in the US

• Turnover development in Q2-16 was weaker than expected

• New sales team in US is expected to be deployed in Q4-16

• Completion of validation and reception of required licenses for 503B-facility

in Wichita expected in Q1-17

Europe

• Sell off of a small compounding facility in Marseille

• New antibiotic facility in NL opens in Q4-16

(x € 1,000) S1 2016 S1 2015 Evolution

Turnover 74,192 65,397 13.4%

REBITDA 15,752 17,960 -12.3%

REBITDA-margin 21.2% 27.5%

Fagron Trademarks

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(x € 1,000) S1 2016 S1 2015 Evolution

Turnover 25,073 25,551 -1.9%

REBITDA 7,982 9,109 -12.4%

REBITDA-margin 31.8% 35.6%

Turnover growth at constant exchange rates of 9.7%

Europe: Healthy turnover growth

Brazil: Continued strong turnover growth (in local currency)

United States: Changed reimbursement system had a negative effect on the

sale of Fagron Trademarks at Freedom Pharmaceuticals

Fagron Essentials

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(x € 1,000) S1 2016 S1 2015 Evolution

Turnover 106,413 120,549 -11.7%

REBITDA 20,972 29,791 -29.6%

REBITDA-margin 19.7% 24.7%

Turnover growth of -11.7% (-5.2% CER). Organic turnover growth of -14.1%

(-7.7% CER)

Europe: Turnover growth

Brazil: Continued strong turnover growth (in local currency)

United States: Changed reimbursement system continued to have a

negative impact on the sale of pharmaceutical raw materials, especially at

Freedom Pharmaceuticals

Financial review first semester of 2016

Financial review

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Turnover

(in € million)

210.2

-3.1%

Gross margin

(in € million)

133.5

-2.4%

Operating costs

(in € million)

-87.9

+11.5%

Turnover decrease of -3.1% or +2.2% at CER

Organic turnover decrease of -7.1% or -1.9% at CER

Gross margin as percentage of turnover increased by 50

base points to 63.5%

Increase was primarily due to:

• Acquisition of AnazaoHealth (April 2015)

• Acquisition of ABC Chemicals (July 2015)

• Start-up costs related to the new facility in Wichita (US)

Financial review

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REBITDA1

(in € million)

45.6

-21.4%

Non-recurring

(in € million)

-1.7

-33.5%

DA

(in € million)

-10.0

+27.0%

REBITDA-margin decreased to 21.7% of turnover

The result of a steeper increase in costs than in turnover

Consists of restructuring costs (-€ 0.8m), provision for a tax

assessment in Brazil (-€ 0.8m), one-off correction of stock

Switzerland (-€ 0.7m), provision for onerous contract in the

US (-€ 0.4m), release of a provision and an earn-out

payment received in relation to the sale of dental companies

(+€ 1.2m), correction to warrant plans (+€ 1.1m) and other

non-recurring items (-€ 1.3m)

The increase was mainly due to the accelerated depreciation

of assets at Freedom Pharmaceuticals and Fagron Academy

in the US (€ 1.5 million)

1. REBITDA is EBITDA before non-recurring result.

Financial review

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EBIT

(in € million)

33.9

-28.7%

Fin. result2

(in € million)

-11.7

-21.0%

Net profit

(in € million)

16.6

-26.9%

EBIT-margin decreased to 16.1% of turnover

Financial costs increased by € 7.2 million

Financial income increased by € 10.3 million

Financial costs will be substantially lower in the 2nd

semester of 2016 (compared to the 1st semester of 2016)

Net profit decreased by 26.9% to € 16.6 million

2. Financial result excluding the hedge result.

Consolidated – Net financial debt

29

523.846

300.960

1.453 6.1437.070 10.362

11.723 6.14410.016 24.169

219.308

31 December2015

Subsequentpayments

acquisitions

Refinancingcosts

Investments Paymentsrelated toBellevue

Paid interest FX Provision relatedto refinancing

Operationalcashflow

Capital increase Net debt aftercapital increase

Net debt decreased to € 301 million after both

tranches of the capital increase

Net financial debt/REBITDA-ratio amounted to 3.4

Outlook1 2016

Turnover of at least € 415 million and

REBITDA of between

€ 85 million and € 95 million

30

1 Based on estimated exchange rates (euro/US dollar 1.10 and euro/Brazilian real 3.83)

Disclaimer

Important information about forward-looking statements

Certain statements in this presentation may be considered “forward-looking”. Such

forward-looking statements are based on current expectations, and, accordingly, entail

and are influenced by various risks and uncertainties. The Company therefore cannot

provide any assurance that such forward-looking statements will materialize and does

not assume an obligation to update or revise any forward-looking statement, whether as

a result of new information, future events or any other reason.

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