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19 NOVEMBER 2014

AGENDA

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Recipharm overview

Acquisition strategy and acquisitions

Financials

Concluding remarks

Q&A

RECIPHARM ‒ A LEADING CDMO

• Founded 1995 by Lars Backsell & Thomas Eldered

• Annual sales of SEK 3.2 bn*

• Approximately 2,100 FTEs*

• More than 200 customers*

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* Proforma 2013 incl Corvette and Lusomedicamenta

SOME OF OUR MOST IMPORTANT CUSTOMERS

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RECIPHARM - A LEADING CDMO

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VISIONTo be acknowledged as the best in class provider ofcontract development and manufacturing solutions tothe pharmaceutical industry as judged by our customers,employees and other stakeholders.

MISSIONRecipharm offers its expertise and facilities in thedevelopment, production and supply of pharmaceuticalsto demanding customers for global use.

BUSINESS MODEL

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DISCOVERY DEVELOPMENT MANUFACTURING DISTRIBUTION

● API and formulation development

● Chemical analysis and Stability studies

● Manufacturing of clinical trial material

● Purchasing of active substances

● API Manufacturing

● Manufacturing of pharmaceuticals

● Packaging

● Warehousing

● Transportation

● Supply chain management

THE VALUE WE BRING TO CUSTOMERS

Full service offeringCustomised development

Risk reductionCost savings

SOLID BUSINESS – STEADY REVENUES

Stable underlying marketLong term relationshipsPrices set per product

Services per hour/ fixed (Dev)

STRATEGIC FINANCIAL OBJECTIVES

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Financial targets

Double sales

within 5 years

Sales growth

15%

Return on operating

capital

30-50%of net profit

Dividend policy

STRONG GROWTH IN THE CDMO MARKET

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Underlyingpharmaceuticalmarket

1.In-housemanufacturing –Outsourcing

2.Small- andmedium-size andSpecialty Pharma

3.

Global CDMO market growth 2011–2015 (CAGR)12%

A HIGHLY FRAGMENTED COMPETITIVE MARKET

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Creates consolidation opportunities

Market Players> 1000 globally> 300 in Europe and US alone

Top ten companies combined market share ≈25%

North America-Catalent-Patheon-Baxter-DPT

-Recipharm-Famar-Fareva-Aesica-NextPharma-Vetter

Europe

India-Kemwell-Wockhardt-Piramal

-Delpharm-Unither-Aenova-Corden-Ethypharm

Source: Data collection and sampling performed by international strategy consultants firm1) Percentages on map refer to the estimated total number of players with headquarters in the

respective region2) Based on management estimates

LOYAL AND STRONG CUSTOMER BASE

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Why do customers choose Recipharm?

19 years experience Highly reliable

Solid reputation for highquality service

Full service provider withbroad range of capabilities andcustomized solutions

Value added developmentservices offering

Financial stability andtransparency

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ManufacturingSecondary manufacturing

(mainly)

14 Mfg sites

88%

Development & Technology

Pharmaceutical developmentIntellectual property

12%

THE RECIPHARM MODEL

- Strategically aligned- Decentralised and scalable- Key business functions centralised

* LTM Sept 2014

MANUFACTURING IS OUR BACKBONE

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We offer a wide range of dosage forms and product categories

Solids

Beta-lactams Liquids Semi-solids Hormones

Steriles Granulates& powders

Lyophilisates Inhalors

Queluz2

● Solids● Liquids

Solna● Development Services

Stockholm● Solids

Strängnäs● Beta-lactams

(solid forms and dry syrups)

Wasserburg● Lyophilisates● Steriles

SITES ACROSS EUROPE

131313

Strängnäs

Karlskoga

Ashton

Fontaine

Monts

Parets

Wasserburg

Höganäs

Solna

Stockholm

Jordbro

Milan

Ashton● Solids● Semi-solids● Inhalors

Fontaine● Solids

Höganäs● Solids (granulates

& powders)

Jordbro● Recipharm’s

Headquarters

Karlskoga● Semi-solids

Lainate1

• Lyophilisates• Sterile beta-

lactams

Masate1

● Steriles● Lyophilisates

Monts● Steriles

Odivelas2

● Effervescenttablets

● Ophthalmicproducts (liquids and semisolids)

● DevelopmentServices

Parets● Solids● Semi-solids● Liquids

PadernoDugnano1

● API development● Finished dose form

development● Own product rights

Masate/Lainate/Paderno Dugnano1) 1 October, 2014, 2) 1 November 2014

Lisbon

Odivelas/Queluz

D&T - AN IMPORTANT GROWTH DRIVER

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Development- 40 employees- 6 PhDs- Pharmaceutical dev. services

Technology- Product rights- Development projects - Other IP and partnerships

14%* 86%*

Partnerships, examples:

- Market extensions- Line extensions- New product entries

- Acquisitions- Develop existing offering- New partnerships

Growth opportunities

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Capacity expansionin Manufacturing

High growth instrategic importantD&T

Portfolio outsourcing with manufacturing asset acquisitions

Acquisition of CDMOs

Growth initiatives Cost of growthImpact on future margins

Impact on future growth

Low/Medium Low/Medium Low/Medium

Low/Medium High Low/Medium

Low Low High

High Low/Medium High

Growth in existingmanufacturingfootprint

Low Medium Low

GROUP GROWTH INITIATIVES

AQUISITION STRATEGY – CLEAR PRIORITIES

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MARKET

RELATIONSHIP

TECHNOLOGY

AshtonHöganäs

Milan

Wasserburg

Technology focus- Cytotoxics- Pre-filled syringes

Market focus- North America- India- Europe

Lisbon

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CORVETTE

ACQUISITION OF CORVETTE PHARMA GROUPWell established CDMO in Italy (265 employees)• API development and manufacturing• Sterile injectables, incl lyophilisation• Bulk lyophilized sterile beta-lactamsSignificant IP • Erdosteine• Other existing dossiers under developmentAccretive acquisition• Enterprise value € 120m (EV/EBITDA of 8)• 2013 sales € 57.7m and EBITDA of € 15mTransaction • 50% cash and 50% Convertible bond• Valued at SEK 1 000m time of closing• Completed 1st of October

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ACCESS TO NEW MARKETS & CUSTOMERS

More than 100 customers to 70 markets• Including big pharma, small mid-size speciality and global generics companies

Significant presence in Italy• 45% of Corvette’s sales are in Italy.• 20% of sales are to Emerging Markets.• Recipharm is now in the five largest EU markets

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STRENGTHEN OUR OFFERING

Increased freeze drying capabilities• Leading CDMO position in Europe• New freeze drying formulation - ampoules

Expanded capacities in steriles• Vials and ampoules• High containment products

40% of sales are backed by own IP• Erdosteine – a drug with potential• Promising pipeline of new products

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ATTRACTIVE FINANCIAL IMPACT

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Good margins

Corvette’s profitable business having 26% EBITDA margin will increase average combined margin.

Strong development

Corvette has many years of positive development

in both sales and EBITDA and will

contribute to combined organic growth.

Accretive acquisition

The acquisition is expected to be accretive

to earnings and EPS already from Q4 2014.

Commercial synergies and economies of

scale

Additional, non-quantified benefits from cross-selling synergies

to customers and operational optimization.

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LUSOMEDICAMENTA

ACQUISITION OF LUSOMEDICAMENTAWell established CDMO in Portugal (340 employees)• Solid and semi solid dose forms• Liquids and sterile opthalmic products• Dedicated effervescent facilitySignificant IP • Product marketing authorisations• Agreements with BI, GR and OM PharmaAccretive acquisition• Enterprise value € 112m (EV/EBITDA of 8.8)• LTM sales € 50.7m and EBITDA of € 12.7mTransaction • 60% cash and 40% new issue of shares• Valued at EUR 112.3m• Completed 1st of November

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ACCESS TO NEW CUSTOMERS, MARKETS AND TECHNOLOGIES

• Good cross selling opportunities‒ Many customers and export to around 45 countries‒ Little overlap of customers presenting good cross selling opportunities.

• Access to new markets‒ Lusomedicamenta has strong sales in Portugal and also in export

markets including Africa where Recipharm is not present.

• New technologies and niches‒ Adds several new interesting new technologies and niches to

Recipharm’s offering including effervescent solid dose forms and sterile ophtalmic preparations.

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OWN PRODUCTS BUSINESS IN EUROPE

• Distribution agreements secured‒ A number of distribution agreements in the Portuguese market have

been secured with companies such as Boehringer Ingelheim, GedeonRichter and OM Pharma (Vifor).

• Supports Recipharm’s ambition to have more sales based on an IP offering.‒ 30% of sales relate to IP rights mainly in the Portuguese market.

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ATTRACTIVE FINANCIAL IMPACT

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Increased margins

Lusomedicamenta will increase Recipharm sales by 20 %* and EBITDA by 32%*

Strong sales and profitability

development

Lusomedicamenta has a history of strong sales and EBITDA

development

Accretive acquisition

The acquisition is expected to be accretive to profitability and EPS already from Q1 2015.

Attractive cost environment

Additional non quantified benefits are

expected to be realized, including optimization and

specialization in our network for oral solids

*YTD figures September 2014

PROFORMA FINANCIAL SUMMARY

271) Based on average EUR/SEK rate of 9.00 2) Based on an average EUR/SEK rate of 8.65 and 2013 FY numbers

LTM Pf (SEK m) Recipharm Lusomed.1 Corvette2 Total Change

Net turnover 2 269 456 499 3 224 42,1%

EBITDA 332 114 130 576 73,5%

EBITDA margin % 14.6 25.0 26.1 17.9

FURTHER ACCELERATING GROWTH

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0,0500,0

1 000,01 500,02 000,02 500,03 000,03 500,0

2009 2010 2011 2012 2013 2014 LTM PF

Sales (SEKm)

0100200300400500600700

2009 2010 2011 2012 2013 2014 LTM PF

EBITDA (SEKm)

Corvette (2013 PF)

Lusomedicamenta

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FINANCIALS

Q3 IN BRIEF

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Sales SEK 508 (505)• Continued high sales level• D&T sales continued to increase• MFG sales and profit affected by one-time effects

EBIT SEK 25 (44)• EBIT affected by one-time and phasing effects

• Acquisition of Corvette group completed 1 October• New SEK 1.5 billion credit facility

Operating cash flow SEK 75 (23)• Strong operating cash flow due to reduction in working capital

SALES DEVELOPMENT PER QUARTER

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Net sales (MSEK)

0

100

200

300

400

500

600

Growth (%)

-10%

-5%

0%

5%

10%

15%

20%

EBIT DEVELOPMENT PER QUARTER

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Operating profit (SEK million) and operating margin per quarter

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

0

10

20

30

40

50

60

70

80

90

Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314

EBIT Margin

2014 YTD

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Sales SEK 1 696 (1 552)• Best nine months ever• D&T show very strong growth• MFG have steady sales growth, partly due to new contracts

EBIT SEK 177 (134)• Strong EBIT development due to increased sales and product mix

• Acquisition of Corvette group completed 1 October• New SEK 1.5 billion credit facility

Operating cash flow SEK 168 (83)• Strong operating cash flow due to increased profit and reduction in WC

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CONCLUDING REMARKS

GROWTH STRATEGY ON TRACK

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Growth in existing manufacturing footprint and capacity

High growth instrategic importantD&T

Portfolio outsourcing with manufacturing asset acquisitions

Acquisition of CDMOs

Growth initiatives Track record Q3 2014

Strengthened sales organisation in 2013 3% growth 2013 at constant FX

+5 since 2007

Capacity expansion in manufacturing

Strong demand for lyophylisation100% utilization

Decision to invest EUR 32m

12% of MFG sales 2013 origins from D&T projects.

Development of IP portfolio

+3 since 2007

Both segmentsincreased sales

+80% vs LYTD

Projectsunder review

Lusomedicamenta,Corvette & projectsunder review

WasserburgexpansionSEK 55 M in capex

SeptemberAuthority to

issue 3.7 million shares

New SEK 1 500 million credit

facility

RECIPHARM – AN ATTRACTIVE INVESTMENT

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Sales growth

Double sales within five years

Dividend policy

30-50% of net profit

Return on operating capital

>15%

Attractive market with strong underlying fundamentals and long-term growth prospects

Leading Pan European CDMO with broad manufacturing capabilities and a clear road-map to double sales within five years (new contracts and acquisitions)

Strategic high-growth D&T division

High visibility on locked-in revenues and a strong customer base

Stable non-cyclical, highly cash generative business with impressive financial performance

Highly experienced and proven management with a successful track record

A HIGHLY ATTRACTIVE INVESTMENT PROPOSITION

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Existing stable business

Growth opportunities

CONTACT INFORMATION

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Thomas Eldered

CEO & Managing Director

08-602 52 00

Björn Westberg

CFO & EVP Finance, Control & Investor Relations

08-602 46 20

ir@recipharm.com