Investor presentation

June 2015

Founded in 1990 by CEO Ger

van Jeveren

Fagron at a glance

1

Global market leader active in

32 countries on 6 continents,

2,200 FTE, >300 pharmacists

Share price increased from

€ 10.25 in 2007 to € 41.50 in

2015

Listed on Euronext Brussels/

Amsterdam

Market cap. of € 1.3 billion

2014: € 447 million of turnover,

with REBITDA margin of 26.5%

Proven buy and build strategy,

generating margin expansive

growth

Global market leader in pharmaceutical compounding

Global presence

2

Tampa

Trikala

Tulsa

Uitgeest

Waregem

Wichita

IJsselstein

Zeist

Kraków

Las Vegas

Marseille

Maryland Heights

Medellin

Miami

Minneapolis

Modlniczka

Newcastle

Oldenzaal

Olomouc

Anápolis

Arlington Heights

Aurora

Barcelona

Bogotá

Bologna

Bornem

Boom

Broken Arrow

Cali

Campinas

Cape Town

Capelle a/d IJssel

Charleroi

Copenhagen

George

Goes

Hamburg

Helmond

Hoogeveen

Johannesburg

Jundiai

Oud Beijerland

Paris

Piracicaba

Rotterdam

Saint-Denis

São Paulo

Shanghai

Somerset West

St. Louis

Sydney

Tamarac

What is pharmaceutical compounding?

3

Patient

Tailor-made

medication

Compounded in community and hospital pharmacies or by Fagron

Compounding Services, always based on a pharmaceutical formulation

Formulations developed by Fagron

and/or compounding pharmacists

based on APIs which are out of patent Alternative dosage

forms

Alternative dosage

strengths

Combination

therapy

Key drivers of pharmaceutical compounding

Unique selling points

Prescriber/Pharmacist

“Yes, compounding

pharmacists enhance

medication compliance

and save lives… every

single day!”

4

Drug shortages

Discontinued drugs

High-quality and cost effective alternative

Less side effects

More individualised approach

Tailor-made

Enhance patient compliance

New and unavailable therapeutic needs

Increased awareness through internet

Business model

FCS

Fagron Trademarks

Fagron Compounding Essentials

Raw materials

Excipients

Equipment

Supplies

Nuclear, Sterile, Aseptic and

Non-Sterile compounding

Fagron Advanced Derma

SyrSpend® SF

Fagron Aseptic Pack

7

Fagron compouding

advisors

(EU: 300, NA: 100, SA: 100)

Discuss patient case

with prescribers

Tailor-made medication

prepared in a

compounding pharmacy or

by Fagron Compounding

Services

Formulary based on

Fagron APIs and Fagron

Trademarks

Encapsulating the compounding market

Win-win-win strategy

Prescriber

Pharmacist

Patient

9

Patient

organisations

Government

Insurance companies

Our unique position in global compounding

10

Global market leadership

Optimising and innovating compounding

Extensive R&D pipeline

Unique business model

Strong brand names

Global footprint

Global buy-and-build strategy

Our unique position in global compounding

11

Group strengths

In-depth compounding knowledge

Use best practices

Speed of execution

Extensive global network

Local market expertise

Acquiring and integrating expertise

Solid financial position

Our unique position in global compounding

12

Operational strengths

Global scale benefits

Compliant with highest quality standards

Product portfolio optimisation

Centralised purchasing

Production efficiency

Consolidation of activities

Proven buy-and-build strategy, generating sustainable value

13

Tamda (Czech Republic)

Unikem (Denmark)

Gallipot (USA)

DEG (Brazil)

Florien (Brazil)

Three compounding pharmacies (Colombia)

Orbus Pharma (Colombia)

Galfarm (Poland)

Apodan Nordic Pharma Packaging (Denmark)

B&B Pharmaceuticals (USA)

Freedom Pharmaceuticals (USA)

Alternate Technologies (Brazil)

2012 20132008 2009 2010 2011 2014 2015

JCB Laboratories (USA)

Pharmacy Services (USA)

Kertus (Greece)

Fagron Australia

Dynaceuticals and Rausa-Kem (SA)

Pharma Nostra (Brazil)

Pharma-Cosmetic (Poland)

Pharma Assist (NL)

AnazaoHealth

(USA)

Accelerate buy-and-build strategy with focus on FCS and Trademarks

FCS

Fagron Trademarks

Fagron Compounding Essentials

14

In % of total turnover

Q1 2015 Target 2016

37% 50%

10% 25%

53% 25%

Fagron Compounding Services

Business model: FCS

16

Tablets, capsules, liquids,

crèmes/ointments

IV-Bags, ampoules, vials

TPN, cytostatics, syringes,

cassettes, easypumps

Radioactive capsules,

radioactive injections,

radioactive seeds

Aseptic

Sterile

Non-sterile

Nuclear

Fagron Compounding Services facilities worldwide

Belgium

Bornem (non-sterile and aseptic)

France

Paris (non-sterile)

Marseille (non-sterile)

South Africa

Johannesburg (non-sterile)

Cape Town (non-sterile and sterile)

George (non-sterile and sterile)

Greece

Trikala (non-sterile)

Colombia

Bogotá (non-sterile)

Bogotá (non-sterile)

Cali (non-sterile)

Medellin (non-sterile)

Netherlands

Oud Beijerland (non-sterile and aseptic)

Helmond (non-sterile and sterile)

Hoogeveen (non-sterile and aseptic)

Oldenzaal (non-sterile and aseptic)

Goes (non-sterile, sterile and aseptic)

North America

Wichita, Kansas (sterile and aseptic)

St. Louis, Missouri (non-sterile)

Arlington Heights, Illinois (non-sterile)

Tamarac, Florida (non-sterile)

Tampa, Florida (non-sterile)

Las Vegas, Nevada (sterile and aseptic)

17

Fagron Compounding Services

18

Warehouse incoming goods Clean utilities Transfer into clean room

Clean utilities in clean room Batch record administrationTransfer to aseptic area

Fagron Compounding Services

19

Prepare for compounding Compounding Visual analyses

Packaging Microbiology analyses Complete batch record

Fagron Compounding Services

20

Growth driven by increasing demand

for sterile compounding

Compliant with the highest, most

stringent quality standards

New antibiotic facility in NL will open

in June 2015

New sterile facility in USA will open in

November 2015

More hospitals are ready to outsource

compounding

Actively looking into potential

acquisition targets

Estimated market share <5% in the

US and Europe

21

In 2014, Fagron prepared over

2 million prescriptions

Fagron Compounding Services

Acquisition of AnazaoHealth

Leading nuclear, pain and

intrathecal compounding facility

in the United States

2015E Sales of US$ 30 million

with an EBITDA margin equal to

Fagron

Acquisition multiple 6x EBITDA

Headquartered in Florida and a

FDA 503B facility in Nevada

22

Nuclear compounding

Nuclear compounding is a specialty area of pharmacy

practice dedicated to radioactive materials for use in

nuclear medicine procedures, which includes cancer

treatments and diagnostics

Radiopharmaceuticals are radioactive. Radiation protection

during compounding and administration forms an integral

part of the job

Anazao’s radiopharmaceuticals are tailor-made

compounded as capsules, seeds or injections

Radiopharmaceuticals administered as injections are

compounded under aseptic conditions

23

Investment rationale

Specialty pharmacy compounding presents huge growth

opportunities

Growth drivers for Fagron:

• Ongoing trend to outsource compounding

• Increasing demand for compounded medication

• Decreasing number of competitors due to new regulatory

requirements

Acquisition candidates in South America, North America and

Europe

24

Fagron Trademarks

Fagron Trademarks

26

Growth driven by the global launch of

Fagron Advanced Derma and

SyrSpend® SF

Global Fagron R&D network of >300

pharmacists and 45 researchers

Global presence boosts cross selling

and innovation

Increasing interest for Fagron

Trademarks by pharmaceutical industry

Strong and extensive R&D pipeline

R&D pipeline includes concepts on

psoriasis, alopecia, transdermal pain

and obesity

Prescribers worldwide: compounding prescriptions based on Fagron vehicles

27

Global R&D

Total spending R&D: 8-10% of turnover28

Development

Realisation

Launch of

solution

Patient, pharmacist

& prescriber

Global R&D pipeline

29

Launch Global Concepts

FAD phase 2

Pain, phase 1

SDD

FAD phase 3

Obesity

Alopecia

May Jun JulJan Feb Mar Apr Aug

2015

Sep Oct Nov Dec Feb

2016

Aug

Psoriasis

Fagron Compounding Essentials

Fagron Compounding Essentials

31

Central purchasing and audit office

in Shanghai, China

Complete offering of 5,000 raw

materials of pharmaceutical quality

Full overview of supply chain

resulting in 100% traceability

Unique selling points are product

availability and quality

Potential add-on acquisitions in

existing markets identified

Financial highlights

+39%

+165%

Financial highlights 2014

33

Turnover(in € million)

447

OWC(in % of turnover)

9.1

Capex(in % of turnover)

2.8%

Gross margin(in € million)

288

REBITDA(in € million)

118

Free cash flow(in € million)

57

Dividend p/s(in €)

1.00

EBIT(in € million)

94

+30.4%

+48.1%

+49.8%

+42.2%

Organic turnover growth of

11.5%

Gross margin increases to 64.5%

of turnover

REBITDA growth driven by focus

on FCS and Fagron Trademarks

and continuous focus on OPEX

Net financial debt/REBITDA ratio

of 3.18, compliant with covenant

under the credit facility

Free cash flow increases 165%

due to increasing EBITDA, good

working capital management and

decreasing taxes paid

Outlook 2015: Turnover of at

least € 500 million with a

REBITDA margin of 26%

Organic and total turnover growthFagron

9,4%

5,9%7,2% 6,5%

10,9%

13,7%11,5%

24,2%

10,5%

18,3%

35,8%

21,8%

20,3%

33,0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2008 2009 2010 2011 2012 2013 2014

Total growth at constant rates

Organic growth at constant rates

34

Q1 2015: Turnover per segment

In € 1,000 % of

total

Q1 2015 Q1 2014 Total

growth

Total

growth

CER

Organic

growth

Organic

growth

CER

FCS 37% 42,815 19,778 116.5% 101.8% 41.7% 32.1%

Trademarks 10% 11,594 10,658 8.8% 4.6% 8.8% 4.6%

Compounding Essentials 53% 60,543 57,838 4.7% -0.4% 5.3% 0.2%

Total Turnover 100% 114,952 88,274 30.2% 23.1% 16.8% 10.5%

35CER = Constant exchange rates

Excellent start of the year

Total growth of 30.2% and organic growth of 16.8%

Very strong growth at FCS, the segment with the highest margin

Continued focus in 2015 on robust organic growth, an active buy-and-build

strategy and the construction of GMP-compliant compounding facilities

Outlook for 2015 reconfirmed

2014: Turnover per segment

In € 1,000 % of

total

2014 2013 Total

growth

Total

growth

CER

Organic

growth

Organic

growth

CER

FCS 34% 147,780 58,210 153.9% 153.2% 20.1% 19.8%

Trademarks 10% 45,652 33,630 35.7% 39.8% 24.6% 28.4%

Compounding Essentials 56% 245,047 243,145 0.8% 3.3% 2.1% 4.7%

Total Turnover 100% 438,479 334,985 30.9% 33.0% 9.7% 11.5%

36

Without the disposal of € 10.9 million of Industry

Sales, organic growth of Fagron Compounding

Essentials would have been 9.7%

CER = Constant exchange rates

Outlook

37

Outlook 2015

38

Fagron expects to realise a turnover from

continuing operations of at least € 500 million1

with a REBITDA-margin2 from continuing

operations of 26%

1 Based on constant exchange rates (euro/US dollar of 1.250 and euro/Brazilian real of 3.100).2 EBITDA before non-recurrent result.

Fagron the global number 1 in pharmaceutical compounding

Shareholder structure

40

Number of shares % of effective voting

rights

Carmignac Gestion 2,463,267 7.84%

TIAA-CREF Asset Management LLC 1,635,681 5.20%

BNP Paribas Investment Partners SA 1,609,182 5.12%

Fidelity Management and Research 1,573,158 5.00%