RECIPHARM INVESTOR PRESENTATION SEPTEMBER 2016 · 2019-08-12 · This presentation has been...

33
RECIPHARM INVESTOR PRESENTATION SEPTEMBER 2016

Transcript of RECIPHARM INVESTOR PRESENTATION SEPTEMBER 2016 · 2019-08-12 · This presentation has been...

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RECIPHARM INVESTOR PRESENTATION SEPTEMBER 2016

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Important Information

2

This presentation has been prepared by, and the information contained herein (unless other-wise indicated) has been provided by, Recipharm AB (publ) (“Recipharm”) The presentation and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, by any medium or for any purpose.

This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to guarantee, underwrite or otherwise acquire any shares in Recipharm or any other securities nor shall the presentation or any part of it nor the fact of its distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto.

This presentation contains ‘forward-looking’ statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability or cost of financing, anticipated cost savings or synergies, the completion of strategic transactions and restructuring programmes, anticipated tax rates, expected cash payments, and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause Recipharm’s future earnings and development to differ materially from those expressed or implied by these forward-looking statements, including factors that are outside Recipharm’s control. Any forward-looking statements made by or on behalf of Recipharm speak only as of the date they are made. Recipharm does not undertake to update forward-looking statements to reflect any changes in Recipharm’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

The information included in this presentation may be subject to updating, completion, revision and amendment and such information may change materially. No person, including Recipharm and its advisors, is under any obligation to update or keep current the information contained in this presentation and any opinions expressed in relation thereto are subject to change without notice. Neither Recipharm nor any of their respective owners, affiliates, advisors or representatives (jointly the “Disclosers”) make any guarantee, representation or warranty, express or implied, as to the accuracy, completeness or fairness of the information and opinions contained in this presentation, and no reliance should be placed on such information. None of the Disclosers accept any responsibility or liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

By attending this presentation or by accepting any copy of this document, you agree to be bound by the foregoing limitations.

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Company Snapshot

• A leading European CDMO serving pharma globally

‒ Strategic relationship with customers across the life cycle, from discovery to commercial manufacturing

‒ 400+ customers, 500+ products, 100+ markets

‒ Comprehensive network, 20+ facilities in Europe, North America and Asia

‒ 3500+ employees

• Attractive, unique value proposition

‒ Pharmaceutical expertise

‒ Manage complexity

‒ Full service offering

‒ Risk control

‒ Good value for money

• 20+ years of profitable growth

‒ SEK 4.7 bn pro forma1 net sales

o 27% CAGR2 since 2013

‒ SEK 730 m (~$90 m) pro forma1 EBITDA3

o 37% CAGR2 since 2013

‒ Exposure to high growth emerging markets

‒ Founded in 1995 by Lars Backsell (Chairman) and Thomas Eldered (CEO)

3

1/ Reported 2015 including pro forma 2015 for acquisitions completed in 2016 2/ As reported 3/ EBIT + depreciations + amortizations

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Strategic Manufacturing Footprint

4

Becoming a Global CDMO

Manufacturing facilities

HQ

Development laboratories

Europe

• Wide service offering through manufacturing operations

• Leveraging strong and loyal customer base

• Operational excellence through efficiency, quality and delivery performance

US

• Establish Recipharm brand in the US

• Further presence with a manufacturing site

India

• Supplying products to domestic, European/US and other emerging markets

• Also strengthening Recipharm’s positioning to multinational Pharmaceutical Companies

Bangalore, India expected in Q4, 2016

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20+ Years of Profitable Growth

5

Divestment of biologics business, closure of Basel and the sterile department in Ashton as well as transfer out of major OTC generic

1995-2007 Growth phase CDMO and product rights

2011-2013 Consolidation

phase

2013- Ideally positioned for further growth

Due to a combination of successful organic and acquisitive activities, Recipharm has historically displayed strong, double-digit growth

2007-2010 Growth phase CDMO

Divestment of own products division Recip

2,208

220 281 273 265 313 312 346 462 512 603 835 919 924

1,423

1,892 2,227 2,141 2,073 2,125

2,569

3,389

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

SEKm

H1

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Strategic Framework

6

To be acknowledged as the best-in-class provider of contract

development and manufacturing solutions to the pharmaceutical industry by our customers, employees and other stakeholders

To offer expertise and facilities in the development, production and supply of pharmaceuticals to demanding customers for global use.

OUR OVERALL OBJECTIVES OUR FINANCIAL TARGETS

STRATEGIC PATHWAYS

OUR VALUE PROPOSITION • Pharmaceutical expertise • Manage complexity • Full service offering • Risk control • Good value for money

MANUFACTURING SERVICES • Sterile Liquids • Solids & Others

DEVELOPMENT & TECHNOLOGY

OUR CORE VALUES • Tenacity • Professionalism • Reliability • Entrepreneurship

Vis

ion a

nd m

issio

n

Str

ate

gic

ta

rgets

Str

ate

gic

focus

are

as

Foundation

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Strategy Providing Recipharm with Multiple Drivers of Potential Growth

7

Growth Drivers Cost of Growth

Impact on Future Margins

Impact on Growth

Growth in existing base and investments in growth areas

Increasing market share Medium Medium

Low/ Medium

Growth from strategically important D&T division High Low/

Medium Low/

Medium

New product contracts stemming from:

1) Established Products

2) Products new to the market

Low High Low/

Medium

Selective acquisition of other CDMOs Medium/

High High High

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Note1. Note2.

Estimated value of Alcon outsourcing agreement for 2016; Pro forma 2015 sales for Mitim Srl, Nitin Lifesciences Ltd and Kemwell’s operations in Sweden and the US According to compilation and analysis carried out by an international strategy consulting firm, on Recipharm's behalf, based on market reports from Frost & Sullivan, BCC and Business Insight (2013) Contract Dose Manufacturing Industry by the Numbers: Composition, Size, Market Share, Profitability and Outlook – 2015 Edition (PharmSource, September 2015) – based on 219 companies

Note3.

SEKm

6,000

5,000

4,000

3,000

2,000

1,000

0

2007 2013 1

2014 2015 2015 Illustrative combined

Recipharm has a strong track record of successful acquisitions…

Acquisitions Acquisitions

Pessac Facility

Acquisitions

• Estimated >1,000 CMOs and CDMOs globally

— 300+ in Europe and US2

• Mostly small players specialized towards a certain service and with limited geographic reach

…in the fragmented CDMO market

3% 3%

8%

14%

21%

51%

>$500m

$250-499m

$100-249m

$50-99m

$25-49m

<$25m

Distribution of CDMOs per revenue level3

Recipharm Well Positioned to Drive Sector Consolidation

8

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2015 Reported

Mitim1 Nitin2 Cirrus & Kemwell3

Dagny4 2020 Target

2014 Reported

3.4bn

2.6bn

+13% +12%

+14% +8%

8.0bn

Note 1. Mitim Srl, pro forma 2015, IFRS adjusted Note 2. Nitin Lifesciences Ltd, pro forma January-December 2015, IFRS adjusted Note 3. Cirrus Pharmaceuticals Inc and Kemwell AB, pro forma January-December 2015, IFRS adjusted Note 4. Dagny Pharma Pvt Ltd, Completion contingent upon Indian FIPB approval, closing expected Q4 2016, preliminary estimated January-December 2015, local GAAP

On track. 42% increase in sales

Financial targets

At least SEK 8bn in sales by 2020

EBITDA margin of at least 16%

Net debt to equity ratio of less than 0.8

Status

19.4% Q2

17.0% YTD

14.8% LTM

0.4 end of Q2

Past Transactions Strongly Aligned with Recipharm’s Financial Targets

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New Customers

• Gaining a greater coverage of the top 20 Big Pharma

• Gaining new small/mid-size customers in the US

New Markets

• US

‒ Expand our Development and

Manufacturing service offering

• Europe

‒ Track acquisition and carve-out

opportunities

• Emerging Markets

‒ Local Manufacturing is now often

required to reach some major

markets such as Brazil, Turkey,

Russia, Algeria…

10

New Technologies Historically, Recipharm has been acquiring new capabilities (technologies, capabilities, know-how) though acquisitions

• New Technologies:

‒ Pre-filled syringes

‒ High potent API

‒ Soft gel capsules, gums, …

• New capabilities:

‒ Multi-purpose API facility (vertical integration)

Future Transactions Aligned with Relevant Consolidation Themes

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Company Highlights

11

CDMO Industry Growth Drivers Remain Highly Favourable

Leading CDMO with Resilient Business Model and Built-In Synergies

Long-standing Customer Relationships

Successful Acquisition and Integration Track Record

Demonstrable Results From Streamlining Operations

Highly Experienced and Proven Management Team

1.

2.

3.

4.

5.

6.

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CDMO Industry Growth Drivers Remain Highly Favourable

• Innovation and new drug development

• Ageing populations

• Higher incidence of lifestyle and chronic ailments

• Emerging market demand increase

• Increasing health awareness

Pharma industry growth

• Pharma company manufacturing footprint rationalisation

• Increasing prevalence of outsourcing particularly by Big Pharma

• Asset-backed manufacturing agreements

• Greater focus on core business

Increasing outsourcing trend – mature product

• Greater dependence on CDMOs as they lack development and manufacturing resources

• Innovative virtual models with limited infrastructure

Increasing outsourcing trend - Small & Mid-sized specialty pharma

Market Growth in the CDMO Industry

1

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Leading CDMO with Resilient Business Model

13

Note1. Interim report 1H 2016

Full service offering across the life cycle, from discovery to commercial manufacturing, provided through following business segments:

• Manufacturing

− Sterile Liquids manufactures sterile technologies including liquid vials, lyophilisates and blow fill seal products

− Solids & Others is focused on manufacturing tablets, capsules and semi-solids. Also includes other dosage forms such as patches, aerosols and others

• Development & Technology offers pharmaceutical development services based on a range of technologies as well as a large number of proprietary products and an attractive IP portfolio

− API development capabilities

− GMP pilot facilities

− Drug delivery methods

− Regulatory support

• Synergies between manufacturing and development

− D&T initiatives drives growth in the manufacturing segments

− Simplifies process for “tech transfer”

− Manufacturing can generate new development activities

Contribution to Sales1

Contribution to EBITDA1

D&T 17%

Sterile Liquids 40%

Solids & Others 43%

D&T 18%

Sterile Liquids 45%

Solids & Others 37%

Broad Coverage and Built-in Synergies

2

Manufacturing

Manufacturing

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Business Segments

Key Services and Capabilities

Financials (LTM 1H 2016)

As % of Group (1H 2016)

Solids and Other Sterile Liquids

• Broad capabilities across solids, semi-solids, liquids, inhalation and other dosage forms

• Significant experience in handling highly potent formulations (hormones) and controlled substances

• Excellent capabilities for modified and controlled release dosage forms

• Revenue: SEK 1,928m

• EBITDA margin: 10.1%

• Broad capacities in ampules, vials, sterile powders, lyophilisates and ophthalmics

• Large existing lyophilisation capacity with ongoing further expansion at Wasserburg and Masate facilities

• Broadening biologics/injectable-related service capabilities

• Increased scale through the 2016 acquisitions

• Revenue: SEK 1,349m

• EBITDA margin: 21.0%

37%

45%

EBITDA

14

43% 40%

Revenue Revenue EBITDA

Leading CDMO with Resilient Business Model 2

Manufacturing Division Delivering Sustainable Profitability

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15

Products: Sterile Liquids, Solids and Others

Solids Semi-solids Liquids Injectables APIs Ophthalmics

Organic Growth Drivers Key Competencies Leveraging Strategic Opportunities

- India

1. Focused sales organisation and processes

2. Serialisation – a business opportunity

3. Invest for growth

‒ Lyophilization capacity

‒ Blow Fill Seal (BFS) capacity

• Strong domestic market growth

Strong volume demand

• Indian Market Access to

European/US customers

• Access to low-cost development

capabilities

• Cost effective export from India to

Asia/CIS/Africa

• Combined capabilities Europe/India

leverage new opportunities and

improved ways of working

Wide service offering

Leveraging existing customer base

Operational efficiency, quality focus and delivery performance

Broad global reach – Europe, US and Asia

2 Leading CDMO with Resilient Business Model Manufacturing Driving Organic Growth and Efficiencies

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D&T Strategy

Europe Bring more products, new to the market and with higher

margins to Recipharm manufacturing

Develop new Gx products, controlled by Recipharm, for

out-licensing

Make strategic investments

Expand on Erdosteine and ThyroSafe®

Role of D&T Division Global Reach of D&T

North America

Asia

Development Services

• Generate business for manufacturing

• High technical expertise supports problem solving capabilities and creates a deeper partnership

Technology Services

• Developing new products and IP

• Access to IP of drug delivery technologies

• Sweden – Solna, Uppsala • France – Pessac (Bordeaux) • Israel – Ness Ziona • Italy – Paderno Dugnano

(Milan)

• USA – Research Triangle Park, NC

• India – Bangalore (from Q4-16)

2 Leading CDMO with Resilient Business Model D&T Division Driving Margin Expansion and Growth

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Big Pharma

39%

Small- and Mid-

Sized Specialty

Pharma 35%

Generic

15%

Emerging

Pharma

1% Other

10%

17

1/ Based on 2015 Annual report 2/ Based on 2015 figures 3/ Now acquired by Mylan, which was a material customer of Recipharm even prior to the acquisition

Customer 1

14% Customer 2

11%

Customer 3

6% Other

69%

Long-standing Customer Relationships 400+ Customers

Wide and Diversified Customer Base1

(since 2009) (since 2002)

(since 1993) (since 1990)

Three Largest Customers 31% of Sales 2015

No Single Product More Than 3%2

15% of 2015 Sales Backed with Recipharm IP2

High Barriers to Switch/Exit

Centralized Key Account Management

(since 1998)

(since 2007)

Long-Standing Customer Relationships 3

3

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Successful Acquisition and Integration Track Record

18

4

Recipharm Screening Model – A Recipe for Synergies

TECHNOLOGIES

Freeze dried ampoules

Injectable hormones

Effervescent tablets

Opthalmics

Niche API’s

Pre-clinical chemistry

Coated pellets

Blow-fill-seal

Niche dosage forms

MARKETS

Europe

India

Israel

North America

RELATIONSHIPS

~ 160 new customers gained since IPO

RELATIONSHIP

MARKET

TECHNOLOGY

Corvette Group Lusomedicamenta

OnTarget Chemistry

Nitin Lifesciences

Kemwell SE

Mitim Cirrus (Kemwell USA)

RELATIONSHIP

MARKET TECHNOLOGY

Corvette GroupLusomedicamenta

OnTarget Chemistry

Nitin Lifesciences

Kemwell SE

MitimCirrus (Kemwell USA)

Integration Process Status

Achieved in 2016: Acquisition & Integration of Brescia Acquisition of Uppsala Acquisition of Research Triangle Park site Acquisition of 2 Indian CDMOs (Kemwell expected to close in 4th Quarter)

On-going activities

• Grow volumes with existing customers

• Capture synergies is Uppsala

• Set up Recipharm brand in the US

• Integration

Further initiatives

• Bring new customers

• Extend relationships with Pfizer

• Extend our presence in the US

• Explore further growth in the Indian market

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Lean manufacturing:

• Swedish Operations (Savings: 60 MSEK/year)

• Ex-Kemwell Uppsala site synergies (Savings: 25 MSEK/year)

• Lean Initiative at each of our manufacturing sites

Streamlining Operations

Procurement:

• Reduce complexity in our current procurement chain

• E-Procurement (reverse auctions)

• Leverage our presence in India

Supply Chain:

• One-Stop-Shop Solutions

• Involve India as service provider

• Purchasing

Adjust Capacity to the Demand:

• Increase capacity

• Optimize product mix

(Lyophilisation, BFS)

Administration:

• Finance

• Payroll

• IS/IT

Some shared services already implemented

Demonstrable Results from Streamlining Efforts

19

5

Lean Manufacturing

• Swedish Operations

(Savings: 60 MSEK/year)

• Ex-Kemwell Uppsala site

synergies (Savings: 25

MSEK/year)

• Lean Initiative at each of

our manufacturing sites

Procurement

• Reduce complexity in our

current procurement chain

• E-Procurement (reverse

auctions)

• Leverage our presence in

India

Adjust Capacity to the Demand

• Increase capacity

• Optimize product mix

(Lyophilisation, BFS)

Administration

• Finance

• Payroll

• IS/IT

Some shared services already

implemented

Supply Chain

• One-Stop-Shop Solutions

• Involve India as service

provider

• Purchasing

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Highly Experienced and Proven Management Team

20

CEO Thomas Eldered

Executive Vice President, Financial, Control & Investor Relations

Björn Westberg

President, Manufacturing Services Europe Kjell Johansson

Executive Vice President, Global Technologies Carl-Johan Spak

Executive Vice President, Corporate Development Mark Quick

Vice President, Business Management Kenth Berg

Vice President, Operations Development Magnus Renck

Vice President, Human Resources Jonas Lejontand

Executive Vice President Strategy & Global Integration Jean-Franςois Hilaire

Vice President Manufacturing Services & Head of CSR Erik Haeffler

Vice President, Quality Management Thomas Beck

6

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Financial Overview

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Sales Development

22

2014 Corvette Lusomedicamenta

2015 OT Chemistry

2016 Mitim Nitin Kemwell (US+SE)

2014 - disc. Distribution SE + Pessac operations + Thyrosafe 2015 - disc. FR pack. Contract

- less sales product in FR + UK IP sales

2016 + Alcon contract

Acquisitions “Existing” Business

16%

14%

12%

10%

8%

6%

4%

2%

0%

Organic growth

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2013 2014 2015 2016-Q2 (LTM)

Organic sales Acquired sales

Note: All financial figures in SEKm

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23

Layout TBU for Q2 To Company – may you please share with advisors the

PPT file of this slide

Sales Development – By Segment

Sterile Liquids Solids & Others Development & Technology

FY

• Sales from new products increased together with contributions from acquisitions

H1

• Positive contributions from Nitin and Mitim acquisitions and new contract in Kaysersberg

• EBITDA negatively impacted by discontinued packaging-only contract from a Big Pharma customer

713

957

22.1% 23.1%

FY2014 FY2015

FY

492

883 26.2%

21.6%

H12015 H12016

H1

1,578

1,833

12.6%

6.4%

FY2014 FY2015

FY FY H1

FY

• Increased sales from acquisitions offset the negative impact of discontinued distribution business in Sweden

H1

• Positive contribution from acquisitions, price increases and more production of Thyrosafe (internal sales to D&T)

FY

• Increased sales mainly due to acquisitions and good performance for some of the own products

H1

• Positive revenue contributions from acquisitions (OT Chemistry and Cirrus) and higher sales of Thyrosafe

• Lower EBITDA margin due to negative EBITDA from acquisitions and lower sales of few high-margin products

929 1,024

8.4%

15.1%

H12015 H12016

H1

Note: All financial figures in SEKm

409 404

31.3%

18.3%

H12015 H12016

399

767

25.2% 28.9%

FY2014 FY2015

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EBITDA Development

2013 2014 2015 2016

EBITDA Margin

• 13.3% (LTM Q113) → 14.8% (LTM Q216)

Target > 16.0%

• Q216 best ever at 19.4% (17.9% in Q215)

EBITDA (LTM)

• 275 (LTM Q113) → 572 (LTM Q216)

• Accretive acquisitions

• Large portfolio contracts

• D&T development

8%

10%

12%

14%

16%

18%

20%

22%

200

250

300

350

400

450

500

550

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

LTM EBITDA LTM EBITDA Margin Quarterly EBITDA Margin

Note: All financial figures in SEKm

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Leverage Development

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80Net Debt to Equity

2013 2014 2015 2016

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5Net Debt to EBITDA (LTM)

2013 2014 2015 2016

2014 IPO - Equity Q4 – Corvette (IT) Q4 – Lusomedicamenta (PT) 2016 Q1 – Mitim (IT) Q2 – Nitin 74% (IN) Q2 – Rights issue

Net Debt to EBITDA

• Focus 2.0-3.0 (adjusted for acquisitions)

• Currently (Q2) 3.2 Adjusted ~2.6 1/

• Assuming Kemwell India in Q4-16 ~ 3.2 2/ 1/ adjusted for full year effect for completed acquisitions

Debt Structure June 30 – 2016

• Term loan, used SEK1,473m (of 1,500)

• Revolving credit fac. Used SEK937m (of 1,500)

• Other interest bearing debt SEK223m Total SEK 2,633m interest bearing debt

25 2/ adding full effect on Kemwell India, including acquisition price effect and full year EBITDA effect

Note: All financial figures in SEKm

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0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1900

2200

2500

2800

3100

3400

3700

4000

Financial Development vs Targets

26

2013 2014 2015 2016

Net Sales (LTM) 3,856

2,066

+87%

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80Net debt to Equity

2013 2014 2015 2016

Net Sales

• 2,066 (LTM Q113) → 3,856 (LTM Q216)

• CAGR 21.6%

• Target > SEK 8bn 2020 Net sales (LTM)

EBITDA (LTM) margin

EBITDA

• 13.3% (LTM Q113) → 14.8% (LTM Q216)

• Target > 16.0%

Net Debt to Equity

• Q2-16 0.4 (0.4)

• Target < 0.8

Note: All financial figures in SEKm

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> SEK 8bn 2020

= double sales 4+ years

ORGANIC GROWTH

Key areas 17 18 19+ Lyo expansion + + + BFS expansion + + Emerging markets + + + Existing pipeline + + +

+ New contracts (large & small)

Already > 5bn

(incl. FY effect acquisitions) Acquisitions

27

On Track To Achieve Targeted Growth

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28

Appendix

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Shareholding and Dividend Policy

29

Shareholder Capital Votes

(30 June 2016) (%) (%)

Flerie Participation 19.4 40.3

Lannebo fonder 12.3 3.9

Cajelo invest 12.1 38.0

First SE-pension fund 6.1 1.9

Kemfin holdings 6.0 1.9

Fourth SE-pension fund 5.5 1.7

4 733 shareholders;

15% of capital outside SE

Dividend policy 30-50% of profit after tax

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• Higher multiples in growing markets

• Multiple decrease at time of closing as well

• EPS accretive acquisitions

Acquiring Competitors

1/ Financial data taken from related press releases and rights issue prospectus 2/ Adjusted SEK 25 identified synergies and 14 as non-recurring costs 2015

30

Acquisition 1/ Sales EV EBITDA EV/EBITDA Comment

Corvette (IT) 499 998 130 7.7

Lusomedicamenta (PT) 456 1,039 114 9.1

OT Chemistry (SE) 29 15 not disclosed

Mitim (IT) 453 640 80 8.0

Kemwell (US+SE) 463 706 81 (43) 8.7 (16.5)2/

Nitin (IN) 391 1,114 94 11.9 High market growth in

India Kemwell (IN) 284 982 47 20.9

Kemwell (all) 746 1,688 128 (90) 13.2 (18.8)

Note: All financial figures in SEKm

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31

1

91

39 45

0

20

40

60

80

100

2013 2014 2015 2016YTD

MSEK

• Thyroid blocking in radiation emergency

• Unique international product extremely well suited for a specialist in manufacturing

• FDA approved with 10 years shelf life

• Volatile sales, mainly based on tender orders

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Erdosteine

• Unique mucolytic product originating from Edmond Pharma

(Corvette acquisition)

• International sales

‒ Europe, Korea, China, Indonesia, Turkey …….

• Sales growth

• API and finished dose forms

• Capsules, dry suspension, dispersible tablets and sachets

• Orphan Drug Designation in the US (partner Alitair)

• Modern Clinical Documentation

32

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Focused Sales Efforts are Delivering Results

33

Customer Focused Sales Process

Responsibilities Clearly Defined on a Central and Local Level

Website Fairs/exhibitions Business network From D&T

Lead generation

Simplified Sales Process Illustration

Evaluation Negotiation

New

Current

BM

KAM/CM

CM

BM

KAM/CM

CM/GM

Finalisation

Revenue generation

Customers Find opportunities

* Highly dependent on development work, investments and regulatory tasks

Winning Complex Contracts

Company: Redhill Biopharma Ltd Tillotts Pharma AG

Products:

Technologies:

Investments:

Key success Factors:

• Entocort, Asacol • RHB-105 (antibiotic)

• Spray coating, Capsules, Tablets, Liquids, Packaging

• Spraycoating, Mini-tablets, Capsules, packaging

• 3.5 m€ • 1.5 m€

• Customized approach (BM, KAM) • Full service offering, managing complexity • Pharmaceutical expertise