SECOND QUARTER REPORT PRESENTATIONThomas Eldered, CEO

Tobias Hägglöv, CFO

3

ALL-TIME-HIGH SALES CONTINUED SEQUENTIAL PERFORMANCE IMPROVEMENTSTEADY PROGRESS TOWARDS OUR TARGETS

• Net sales of SEK 1,867 m, +10%

• EBITDA SEK 354 m, +15%

• EBITDA margin 19.0% (18.1)

• Profit after tax SEK 94 m, +38%*

• Cash flow after working capital changes SEK 259 m (119)

• Return on equity 4.1% (2.2*)

• EPS SEK 1.38 (1.13), +22%*

19.0%EBITDA margin

354MSEK EBITDA

10%Sales increase

1.7

1.9

Q2 Q3 Q4 Q1 19 Q2

Net salesSEK bn

307

354

Q2 Q3 Q4 Q1 19 Q2

EBITDASEK m

+10%+15%

* APM. 2018 adjusted for non-recurring items, including divestment of Thyrosafe

4

BUSINESS MOMENTUM INCREASINGBENEFITTING FROM GLOBAL REACH AND ATTRACTIVE VALUE PROPOSITION

• Good and increasing demand for inhalation and lyophilization technologies

• Good performance in newly acquired operations in Holmes Chapel

• Ramp-up of recently expanded capacities continues

• Serialisation nearly fully implemented

• Underperformance in non-lyophilized injectables and oral solids

• Global development services continues to improve and contribute

• End of operations in two facilities (UK+SE) progressing as planned

• Record value of offers to current and new customers

• Several promising new products in tech transfer

STERILE LIQUIDS

DEVELOPMENT & TECHNOLOGY

SOLIDS & OTHERS

SALES +32%EBITDA MARGIN 19.4%

SALES -4%EBITDA MARGIN 17.9%

SALES +3%EBITDA MARGIN 33.4%

5

STEADY PROGRESS IN ALL SEGMENTSPERFORMANCE ON A 12 MONTHS BASIS

Development & Technology

Steriles & Inhalation Solids & Others

Sales SEK 963mGrowth +2%

EBITDA SEK 254mMargin 26.3% (24.0%)

Sales SEK 2,698m Growth +12%

EBITDA SEK 403mMargin 14.9% (14.8%)

Sales SEK 3,001mGrowth +34%

EBITDA SEK 568mMargin 18.9% (18.7%)

LTM

Q2 2

019

6

ITALY -2%

Brescia

Lainate

Masate

Paderno Dugnano

PORTUGAL +11%

Odivelas

Queluz

SPAIN +30%

Leganés

Parets

STABLE TOTAL REVENUES ON HIGH LEVELSALES GROWTH H1 2019 EXCLUDING ACQUISITIONS

USA +100%

Research Triangle Park

SWEDEN -13%

Stockholm

Höganäs

Karlskoga

Solna

Strängnäs

Uppsala

EUROPE

UK -43%

Ashton

GERMANY +9%

Wasserburg

FRANCE 0%

Fontaine

Kaysersberg

Monts

Pessac

ISRAEL +80%

Ness Ziona

INDIA +10%

BengaluruKarnal & Paonta Sahib

Manufacturing services Development services

[Holmes Chapel ]

FINANCIALSTobias Hägglöv, CFO

8

P&L DEVELOPMENT

*) Defined as Operating Cash Flow, including working capital changes and maintenance investments

SEKm Q2 2019 Q2 2018 2018 FY

Net sales 1,867 1,701 6,374

Organic -4% 17% 12%

Acquired 11% - 4%

Currency 2% 4% 4%

EBITDA 354 307 987

EBITDA margin 19.0% 18.1% 15.5%

Free Cash flow*) 171 39 63

Earnings per share (adjusted) 1.38 1.13 2.73

IFRS 16 effect EBITDA 23

IFRS 16 effect EBITDA margin 1.2%-pts

9

EBITDA BRIDGE Q2 Y-O-Y

SEKm

307 354307

0

50

100

150

200

250

300

350

400

EBITDA Q2 2018 Steriles &Inhalation

Solids & Others Development &Technology

Discontinuedoperations

Other EBITDA Q2 2019

354

+36

307

-13 +18+/-0 +6

10

MANUFACTURING SERVICES – STERILES & INHALATION

EBITDA BRIDGE, APRIL – JUNE

SALES BRIDGE, APRIL – JUNE

SEKm EBITDA

2018 129

Currency 4

Acquisitions 35

Accounting standards (IFRS 16) 4

Organic -7

Total 36

2019 165

SEKm Sales %

2018 642

Currency 20 3

Acquisitions 186 29

Organic -1 0

Total 205 32

2019 848400

500

600

700

800

Q2 2018 Currency Acquisitions Organicgrowth

Q2 2019

0

40

80

120

160

200

Q2 2018 Currency Acquisitions IFRS - 16 Organic Q2 2019

11

MANUFACTURING SERVICES – SOLIDS & OTHERS

SALES BRIDGE, APRIL – JUNE

EBITDA BRIDGE, APRIL – JUNE

SEKm Sales %

2018 742

Currency 15 2

Acquisitions - -

Organic -47 -6

Total -32 -4

2019 710

SEKm EBITDA

2018 140

Currency 3

Acquisitions -

Accounting standards (IFRS 16) 6

Organic -23

Total -13

2019 127

400

500

600

700

800

Q2 2018 Currency Organic growth Q2 2019

0

40

80

120

160

Q2 2018 Currency IFRS - 16 Organic Q2 2019

12

DEVELOPMENT & TECHNOLOGY

SALES BRIDGE, APRIL – JUNE

EBITDA BRIDGE, APRIL – JUNE

SEKm Sales %

2018 261

Currency 7 2

Acquisitions - -

Organic 1 0

Total 7 3

2019 269

SEKm EBITDA

2018 72

Currency 2

Acquisitions -

Accounting standards (IFRS 16) 4

Organic 12

Total 18

2019 90

0

100

200

300

Q2 2018 Currency Organic growth Q2 2019

0

20

40

60

80

100

Q2 2018 Currency IFRS - 16 Organic Q2 2019

13

Q2 CASH FLOW

SEKm Q2 2019 Q2 2018 2019 YTD

Operating Cash Flow 245 265 463

Total NWC changes 14 -146 13

Maintenance capex & other -88 -80 -138

Free cash flow 171 39 339

Expansion capex -22 -48 -36

Business combinations -64 - -64

Divestments - 59 -

Cash flow after investing activities 84 50 239

Net Debt/EBITDA 3.7 3.8 3.7

IFRS 16 effect on Net Debt/EBITDA 0.1

CONCLUDING REMARKSThomas ElderedCEO

15

WELL ON TRACK TO REACH OUR TARGETS

4,0

4,5

5,0

5,5

6,0

6,5

7,0

7,5

8,0

8,5

2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020

Financial targets

At least SEK 8bn sales by 2020

EBITDA margin at least 16%

Net debt to equity ratio less than 0.8

Status

✓ 17.8%1 Q2

✓ 16.3%1 H1 2019

▪ 15.8%1,2 LTM Q2

✓ 0.7 Q1

▪ +10% Q2

▪ +18% LTM Q2

Dividend 30-50% of net profit

✓ SEK 1.25 2018

Note 1. Excluding IFRS 16 effectNote 2. Continuing operations

6.4bn

8.0bn

LTM Sales/Quarter

16

SUMMARY – STEADY PROGRESS TOWARDS OUR TARGETSBENEFITTING FROM GLOBAL REACH AND COMPETITIVE VALUE PROPOSITION

• Well invested in attractive, high demand areas

• Growing demand from current and new customers

• Sales growth 10%, EBITDA growth 15%

• Organic growth set to improve

• Strong cash flow and reduced capex

• Improved ROCE, ROE and EPS

• Promising project pipeline

19.0%EBITDA margin

354MSEK EBITDA

10%Sales increase

Q&A

18

CONTACT INFORMATION

Thomas Eldered

CEO & Managing Director

+46 (0)8 602 52 00

Tobias Hägglöv

CFO & EVP

+46 (0)8 602 52 00, ir@recipharm.com