Richter Group13M9

Richter Group

Interim Report, 13M9 31 October 2013

Summary – 2013M913M9

Summary 2013M9

Consolidated sales: + 5.2% (EUR), + 7.1% (HUF)+ good growth in China in EU15 countries and in other CIS region+ good growth in China, in EU15 countries and in other CIS region− price erosion

Profit for the period*: +5.7% (EUR), +7.5% (HUF)+ increasing gross profit− higher level of S&M expensesg p

*Net income attributable to owners of the parent

22

Consolidated financial highlights13M9

Consolidated financial highlights

HUF Change EUR Changeg g

Total revenues 260.5 bn 7.1% 878.5 m 5.2%

Profit from operations 42.2 bn 6.2% 142.2 m 4.3%

Profit for the period* 39 9 bn 7 5% 134 5 m 5 7%Profit for the period 39.9 bn 7.5% 134.5 m 5.7%

EPS (diluted) 214 7.5% 0.72 5.7%

*Net income attributable to owners of the parent

3

Geographical composition of Group sales13M9

Geographical composition of Group sales

10%

7%

10%

7%

Hungary

Russia Poland

Hungary

Russia Poland7%

12%

30%

2012M9 2013M9

7%28%

12%RomaniaRomania

8 %

6%

10%

7% 6% 7%

4%8% 10%1%

EU10Ukraine EU10

Oth CIS

Ukraine

4% 5% 4% 5%3%1%

EU15USA

Other CIS

RoWChina EU15

USA

Other CIS

RoWChina

Total: HUF 243.2 bnEUR 834.7 m

Total: HUF 260.5 bnEUR 878.5 m

7.1% in HUF5.2% in EUR+

44

P&L13M9

P&L

HUFmM9 2013

Change %

EURmM9 2013

Change %

as % of total revenues

Total revenues 260,473 7.1 878.5 5.2

Gross profit 165,148 9.9 557.0 8.0 63.4

S&M expenses (79,723) 15.1 (268.9) 13.0 30.6

A&G expenses (13,872) -9.5 (46.8) -11.0 5.3

R&D expenses (30,292) 9.0 (102.1) 7.0 11.6

Other income and other expenses 901 -51.5 3.0 -53.1 0.3

Profit from operations 42,162 6.2 142.2 4.3 16.2

Net financial income 240 -55.3 0.8 -55.6 0.1

Profit for the period* 39,865 7.5 134.5 5.7 15.3

*Profit attributable to owners of the parent

5

Increasing gross profit and gross margin13M9

Increasing gross profit and gross margin

+ Higher than average increase of turnover in China, in EU15 countries and in other CIS HUFm 63.4%61 8%

40%

50%

60%

200 000

250 000countries and in other CIS region

+ Increasing share of

HUFm 61.8%

10%

20%

30%

40%

50 000

100 000

150 000own-developed products

- Decline in the high margin0%

10%

0

2006 2007 2008 2009 2010 2011 2012 12M9 13M9

Gross profit Gross margin

- Decline in the high margin US business

- Increasing proportion of h l l d t il t Gross profit Gross marginwholesale and retail segment

6

Flat operating margin13M9

Flat operating margin

Sales and marketing expenses

25 0%70000

Sales and marketing expenses− expanding sales network in

Western EuropeEsmya® launches

HUFm

15,0%

20,0%

25,0%

40000

50000

60000

70000− Esmya® launches− S&M activities in China

R h d d l t

16.2%16.3%

5,0%

10,0%

10000

20000

30000

0000Research and development expenses− Forest, PregLem, biosimilar

h 0,0%0

2006 2007 2008 2009 2010 2011 2012 12M9 13M9

Profit from operation Operating margin

research

Amortisation− Esmya® + Grünenthal OCs

7

Pharmaceutical sales*13M9

Pharmaceutical sales

Key drivers of growth:

China, EU15 countries and Ukraine

Female healthcare

Successful product launches

*89% of turnover originates from outside of Hungary

8

g g y

8

Hungary13M9

Hungary

40

Turnover *Stabilising pharmaceutical market HUFbn

30

40

Sales increase: 3.4% in HUF

10

20

Successful product launches

02007 2008 2009 2010 2011 2012 12M9 13M9

*Turnover of the pharmaceutical segment

9

EU – composition of sales*13M9

EU composition of sales

Traditional EU member states 39%

− strengthening our position in key Western-European markets

− own gynaecological sales and marketing network

61%

Poland, Romania, EU10**

− well established in the region for decades

− own specialized sales network*Turnover of the pharmaceutical segment p** Including Croatia

10

EU1513M9

EU15

120

Turnover*6.3% (EUR) sales increase

EURm

60

80

100

120

Recently established S&M network

20

40

60

Female healthcare products: Richter OC portfolio, acquired

02007 2008 2009 2010 2011 2012 12M9 13M9

p , qOCs, Esmya®

*Turnover of the pharmaceutical segment

11

Poland, Romania, EU1013M9

Poland, Romania, EU10

Increasing generic competition

Turnover*

Increasing generic competition

Price erosionEURm

150

200

Poland: – 4.2% decrease in PLN

0

50

100− expiry of Avonex licensing

agreement− adjusted sales with Avonex: 0

2007 2008 2009 2010 2011 2012 12M9 13M9

Poland Romania EU10**

j+7.7% in PLN

Romania:Romania:– increasing sales levels

(+3.9% in RON; +4.5% in EUR) *Turnover of the pharmaceutical segment**Annual data is not adjusted with Croatia

– significant delays in payment12

CIS13M9

CIS

Turnover*

Slight sales increase (+1.2% in EUR) EURm

300

400

500

( )

Ukraine: healthy sales growth

0

100

200

Russia: expiry of Supraxlicencing agreement in 2012 0

2007 2008 2009 2010 2011 2012 12M9 13M9

Russia Ukraine Other CIS

licencing agreement in 2012

*Turnover of the pharmaceutical segment

13

Russia13M9

Russia

Sales increase (+4.8% in RUB;

Turnover*

Sales increase ( 4.8% in RUB; +0.2% in EUR)

E i f S li iEURm

300

400Expiry of Suprax licensing agreement(revenue loss: RUB 0.5 bn/

100

200EUR 11.6 m)

Adjusted sales with Suprax0

2007 2008 2009 2010 2011 2012 12M9 13M9

Adjusted sales with Suprax(+10.0% in RUB; +5.1% in EUR)

Efficient marketing activity

Increase of manufacturing and

*Turnover of the pharmaceutical segment

Increase of manufacturing and warehousing capacities

14

Ukraine, Other republics13M9

Ukraine, Other republics

Turnover*Ukraine− 9.2% increase (USD) USDm

100

150

200− efficient marketing activity

Other republics

0

50

100p− 4.1% increase (USD)

2007 2008  2009 2010 2011 2012 12M9 13M9

Ukraine Other CIS

*Turnover of the pharmaceutical segment

15

USA13M9

USA

Turnover*

Slow down of sales decline(-11.3% in USD) USDm

160

200

Turnover*( )

Significant proportion of l 93%

40

80

120gynaecology – 93%

Plan B increase0

40

2007 2008  2009 2010 2011 2012 12M9 13M9

Plan B increase

Finasteride shipments

*Turnover of the pharmaceutical segment

16

China13M9

China

Dynamically expanding pharmaceutical market

From 2013 JV operates with Richter majority stake

Sales network: 210 medical representatives

Sales in 2013 M9: EUR 32 4 mSales in 2013 M9: EUR 32.4 m

Preshipments (in 2013H1): EUR 9.5 mp ( )

17

Pharmaceutical sales by therapeutic areas13M9

Pharmaceutical sales by therapeutic areas

Other Central nervous system

13%

6%

17%

Muscle relaxants

Other Central nervous system

26%4%6%

Gastrointestinal Cardiovascular2013 M9

34%

Gynaecology

Total: EUR 764.9 m

18

Female healthcare sales by region13M9

Female healthcare sales by region

4005%CEE

Hungary

CISEURm

200

300

4005%14%

30%

CIS

Ex-Grünenthal

0

10028%

8%11%

4%

EU15

Ex Grünenthalportfolio

China

Gynaecologicalsales Non‐gynaecologicalsales

USARoW

Gynaecological sales Non gynaecological sales

Total: HUF 75.9 bnEUR 256.1 m

1919

Female Healthcare: Esmya® - gradual launches13M9

Female Healthcare: Esmya gradual launches

Reimbursement granted Reimbursement not grantedReimbursement grantedCountry Launch ReimbursedGermany 12Q1 12Q1

Reimbursement not grantedCountry LaunchPoland 12Q2

United Kingdom 12Q2 12Q2

Austria 12Q2 12Q4

Denmark 12Q4 12Q4

Baltic States 12Q3

Bulgaria 12Q3

Romania 12Q3

Sweden 13Q1 13Q1

Netherlands 12Q3 13Q2

France 13Q3 13Q3

Norway 12Q4

Portugal 12Q3France 13Q3 13Q3

Spain 13Q4 13Q3

Belgium 13Q3 13Q3Russia 13Q2

Hungary 12Q2 13Q1

Czech Republic 12Q2 13Q3

Slovakia 12Q3 13Q1

Canada 13Q3

Slovenia 12Q4 13Q2

Sales network13M9

Sales network

staff

1200

1400

1600

1800

600

800

1000

1200

0

200

400

600

02005 2006 2007 2008 2009 2010 2011 2012 12M9 13M9

CIS CEE Hungary EU15 China

21

Wholesale and retail13M9

Wholesale and retail

W&R sales contributions is 15% of total sales

72% of the W&R turnover originates in Romania

2222

Share split13M9

Share split

Permanently low trade volumes on BSE

15 November 2012 Richter is excluded from MSCI index↓

15 November 2012 – Richter is excluded from MSCI index

↓

Stock split approved by AGM on 25 April 2013Split effective on 16 July 2013 (D day)Split effective on 16 July 2013 (D day)Share capital:− before split: 18,637,486 x HUF1,000 = HUF 18,6 bnp 18,637,486 x HUF1,000 HUF 18,6 bn− after split: 186,374,860 x HUF100 = HUF 18,6 bn

23

Ownership structure13M9

Ownership structure

30 September 2013

Domestic investors

65 39%9 37%International

investors

65.39%9.37%

Hungarian State Holding Company

25.24%

2424

13M9

Thank you for your attention!y y

25

Appendix13M9

Appendix

Exchange rates

26

Evolution of currency exchange rates13M9

Evolution of currency exchange rates

320

340

HUF

280

300

240

260

EUR/HUF

USD/HUF

180

200

220

27

Exchange rates13M9

Exchange rates

At i d dAt period end30.09.2013 30.06.2013 31.03.2013 31.12.2012 30.09.2012

EUR/HUF 298.48 295.16 304.30 291.29 283.71

USD/HUF 221.06 226.18 237.36 220.93 219.17

RUB/HUF 6.80 6.91 7.65 7.26 7.09

Average

RUB/HUF 6.80

2013 M9 2013 H1 2013 Q1 2012 M12 2012 M9

EUR/HUF 296.5 295.9 296.1 289.1 291.3

USD/HUF 225.1 225.1 224.0 225.0 227.3

RUB/HUF 7.1 7.3 7.4 7.2 7.3

28