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Investor Presentation Galenica Group September 2017

Investor Presentation Website - Galenica · Investor Presentation Galenica Group September2017 − © Galenica Agenda Sept 2017 2 Page History 3 Galenica at a glance 6 Business Sectors

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Page 1: Investor Presentation Website - Galenica · Investor Presentation Galenica Group September2017 − © Galenica Agenda Sept 2017 2 Page History 3 Galenica at a glance 6 Business Sectors

Investor PresentationGalenica Group

September 2017

Page 2: Investor Presentation Website - Galenica · Investor Presentation Galenica Group September2017 − © Galenica Agenda Sept 2017 2 Page History 3 Galenica at a glance 6 Business Sectors

− © Galenica

Agenda

2Sept 2017

Page

History 3

Galenica at a glance 6

Business Sectors 11

Financial track record 16

Business Update H1 2017 18

Outlook 28

1

2

3

4

5

6

Page 3: Investor Presentation Website - Galenica · Investor Presentation Galenica Group September2017 − © Galenica Agenda Sept 2017 2 Page History 3 Galenica at a glance 6 Business Sectors

− © Galenica

Building the leading Swiss healthcare platform over 90 years

Listing on Swiss Stock Exchange

1994 1996 2000 2002 / 2004 2008 2009 2013 2014 20171999 2007

Expansion of distribution activities

Partnership with Alliance

UniChem

Organic and acquisition-led expansion of pharmacies

network

Acquisition of Anti-Brumm®

and Perskindol®

Acquisition of MediService

Acquisition of Sun Store

pharmacies

Acquisition of medifilm

Creation of business unit

Galenica Santé

1927

Foundation of Galenica as a

wholesaler

Opening of highly automated

distribution centre in Niederbipp

1995

Strategy to engage in the entire Swiss healthcare value chain

2015

Integration of Products &

Brands

2005

Creation of Amavita uniform

brand in Switzerland

Acquisition of Pharmapool

Corporate Services Retail Products & Brands Key events

Acquisition of Merfen® and Vita-Merfen®

IPO of Galenica

Santé

Name change to Galenica

3Sept 2017

1

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− © Galenica

History of resilient growth and margin improvement

2006–16 CAGRsRetail market sales2 2.4%Galenica Santé net sales1 5.3%Galenica Santé EBIT1,3 25.2%

Source: Company information, Galenica Annual Reports, IMS Health Notes: The financial information presented with respect to the financial years ended 31 December 2006 through 2013 has been derived from the audited consolidated financial statements of Galenica AG (now renamed Vifor Pharma

AG) and represent its Logistics, Retail and Other (Healthcare Information) businesses, excluding the Pharma business. The Company, a former wholly-owned subsidiary of Galenica AG (now renamed Vifor Pharma AG), prepared combined financial statements for the financial years ended 31 December 2014, 2015 and 2016. Accordingly, the financial information derived from the combined financial statements of the Company and from the consolidated financials of Galenica AG (now Vifor Pharma AG) for its Logistics, Retail and Other (Healthcare Information) businesses, excluding the Pharma business, for prior periods may not be fully comparable.

1 Not including Vifor Consumer Health2 Retail market sales include direct and indirect pharmaceutical sales through pharmacies, self-dispensing doctors and drugstores3 2014-16 EBIT includes corporate costs, excludes IAS 19 expense4 2013 financials as per 2014 financial statements due to changed segment structure (Galenica Santé is reported as a separate segment since 2014). Financials not adjusted to include Products & Brands5 Calculated as (EBITDA-capex)/EBITDA. 2014-16 EBITDA excludes IAS 19 adjustment; capex includes investments in tangible and intangible assets

1'793

2'1292'270

2'467 2'526 2'603 2'661 2'766 2'826 2,915

0%

1%

2%

3%

4%

5%

2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A

Net sales (CHFm) EBIT margin (%)³

Logistics, HealthCare Information & Retail1 Galenica Santé

2006-16 sales CAGR1 5.3%

2006-16 EBIT CAGR1,3 25.2%

2006-16 EBIT margin

improvement1,3+367bps

2016 cash conversion5 80%

FTEs as of

31 December 2016c.4,600

3,009

4

44Sept 2017

1

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− © Galenica

7 April 2017: Outstanding IPO of Galenica Santé

Largest IPO in Europe in H1 2017 and first sizeable 100% subsidiary IPO since years

Multiple oversubscription with pricing at the top end of the price range atCHF 39.00

Broadly diversified allocation

Today already over13’000 shareholders

Strong and stable trading after IPO

5

HF13%

LO57%

PB30%

48.75mShares1)

CH50%

UK23%

US12%

Other15%

48.75mShares1)

Sept 2017

1

1) Allocation of the shares at the IPO on 7 April 2017

Page 6: Investor Presentation Website - Galenica · Investor Presentation Galenica Group September2017 − © Galenica Agenda Sept 2017 2 Page History 3 Galenica at a glance 6 Business Sectors

− © Galenica

Galenica is the leading healthcare provider in Switzerland

6

2016 net sales CHF3,009m2016 EBIT1 CHF134m

Services

Leading provider of specialised pre-wholesale and wholesale distribution services

Specialised databases and solutions for clinical decision support

CHF2,329m CHF40m

2016 net sales 2016 EBIT

Market position2 #1

(pre eliminations of intercompany positions)

Leading domestic network of own, joint venture and independent partner pharmacies

Provision of health and beauty products, patient advice and new services

Broad range of own, exclusive and partner products for consumer health, beauty and well-being

Strong sales and marketing force in Switzerland

RetailConsumer Health market position2Market position2

Products & BrandsHealth & Beauty

2016 net sales 2016 EBIT

#3#1

CHF1,437m CHF93m(pre eliminations of intercompany positions)

1 Includes corporate costs, excludes IAS 19 expense2 Services based on sales reported at ex-manufacturer price level as of MAT June 2016. Source: IMS Market Prognosis 2016-2020; Retail based on number of pharmacies. Source: Interpharma, Pharma-Markt Schweiz 2017 and

company websites; Products & Brands based on IMS Health MAT June 2017 sales value for OTC, Patient Care, Personal Care and Nutritionals products

Sept 2017

2

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− © Galenica

Operating in a stable and attractive Swiss healthcare market with favourable long-term fundamentals

Source: QuintilesIMS, Pharmamarkt Schweiz, YTD 2016

1 Medicines Swissmedic list A, B, C, D sold from suppliers and wholesalers to hospitals, physicians, pharmacies and drugstores2 Total market without hospitals3 IMS Market prognoses 2016-2020, published September 2016

65%22%

9%4%

51%25%

23%1%

Pharmacies Self-dispensing doctors Hospitals Drugstores

Pharmaceutical market in Switzerland (2016)1

By value−CHF5.6bn By volume−188 million packs

Pharmacists play a crucial role in the provision of medicines Indispensable role in one of the world's highest quality health

care systems, providing drugs, advice and services Continued efforts by government and health insurers to

make pharmacists the first point of contact Growing importance to meet consumer trends towards more

personalized healthcare and self-medication

7Sept 2017

2

3.4 3.6 3.8 3.9 3.8 3.9 3.9 3.9 3.9 4.1 4.3 4.4 4.5 4.5 4.6

0

1

2

3

4

5

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

E

2018

E

2019

E

2020

E

Resilient, stable Swiss healthcare retail sector2

Underlying healthcare sector growth drivers, including demographics, lifestyle and innovation

One of the highest life expectancy rates in the world Non-discretionary nature of products and services

CHFbn (based on ex-manufacturer price)

Mandatory price cuts

2006-16 CAGR 2.4%

Proposed mandatory price cuts

2016-20 CAGR 1.7%33

Financial crisis Unpegging of Swiss Franc by SNB

Page 8: Investor Presentation Website - Galenica · Investor Presentation Galenica Group September2017 − © Galenica Agenda Sept 2017 2 Page History 3 Galenica at a glance 6 Business Sectors

− © Galenica

Experienced management team with proven track record

Jean-Claude ClémençonCEO

Felix BurkhardChief Financial Officer

CFO since 2017 26 years industry experience of which 22 years at Galenica Joined Galenica in 1995 Previously, Head of Strategic Projects of Galenica Group and Head of Business Sector Retail

Daniele MadonnaHead of Business Sector Retail as of Q4 2017

Pharmacist 15 years industry experience of which 13 years at Galenica Previously Store Manager, Regional Sales Manager and CEO of the joint venture Coop Vitality

35 years industry experience of which 2 years at Galenica Joined Galenica 2015 Previously, responsible for international expansion at Walgreens Boots Alliance and Global Brand Director at Unilever

8

CEO since IPO Head of Business Sector Retail since 2015, 28 years industry experience of which 22 years at Galenica Group Joined Galenica Group in 1995 Previously, Head of Logistics and HCI at Galenica Group, Head of Manufacturing at Rheintub, Rheinsulz and CEO of Raintec

Sept 2017

Christoph AmstutzHead of Business Sector Services

29 years industry experience of which 10 years at Galenica Joined Globopharm in 2007 (led integration process into Galenica) Previously, Head of G-Pharma & Alloga and Business Unit Head at Bristol-Myers Squibb

Torvald de Coverly VealeHead of Business Sector Products & Brands

2

Head of Business Sector Retail until Q4 2017

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− © Galenica

Our ambition and self-perception

Galenica:The first choice for health,

beauty and wellbeing.

9Sept 2017

2

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− © Galenica

Leverage scale advantages to develop new, value-added services

Healthbank / e-healthGDP-qualified fleetmedifilm

2017

2015

P&G brands

2016

Develop and launch own and partner brands and products for pharmacies

Click & Collect Loyalty cards

Leverage leading positions to promote higher margin and exclusive products

Drive efficiency through one single process for all three pharmacy formats

Further expand and optimise retail network

Continue to drive synergies across the entire organisation

Products & Brands

Support

Leve

rage

ServicesR

etai

l

Our Strategy - the power of 3 drives sustained value creation

10

/

Sept 2017

2

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− © Galenica

33219% 91

58

1619%

No. 2 No. 3

Own Independent

The largest pharmacy retailer in SwitzerlandCompetitive positioning—#1 market position4

Largest pharmacy network, including online presence Offers broad product range, including well-known own brands, as well as

health services and tests Built organically and through targeted acquisitions since 2000 Including attractive, high customer traffic locations across Switzerland

Average sales per pharmacy of CHF4.3m > 1.4x Swiss market average6

By number of pharmacies5

Network of chains (# of pharmacies as of 30 June 2017) Webshop

Total # of pharmacies as of 2016 1,7921631

Largest branded pharmacy network by number of pharmacies in Switzerland

The first Swiss pharmacy chain298

Joint venture (49:51) with Coop, the 2nd largest retail group in Switzerland 70

Service provider for independent pharmacies under Feelgood's brand1613

1 Specialty pharmacy focused on home healthcare

for patients with chronic illnesses

Net sales performance (CHFm)

1'251 1'308

2014 2015 2016

~5.4x more pharmacies than next competitor

Health & Beauty7

Sales 1,335EBIT margin 6.0%

1,3936.4%

Highlights

1,349

CAGR 3.8%

1,4376.5%

1 Amavita figures include 10 majority and minority holdings in other pharmacies2 Based on 1976 Federal Court law permitting non-pharmacists to own a pharmacy for the first time 3 Includes 8 Amavita partners4 Based on number of pharmacies. Source: Interpharma, Pharma-Markt Schweiz 2017 and company websites

5 Own includes 70 pharmacies through joint venture with Coop; independent includes 8 Amavita partners6 Retail pharmacy sales for GaleniCare on a like-for-like basis, including Amavita and Sun Store pharmacies only. Swiss

market average based on Pharmasuisse, Roka 20157 H&B post-inter-segmental eliminations

Retail

11Sept 2017

3

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− © Galenica

Ongoing pharmacy network consolidation and optimisation

1 Includes the impact of acquisitions with concurrent mergers, new openings and closings

2012 2013 2014 2015 2016 H1 2017

10 20 5 2 13 4

11 12 6 0 11 3

300 312 318 318 329 332

Retail

Pharmacies acquired

Net pharmacies added1

Marketing

PurchasingIT and

Processes

12

Proven track record of delivering synergies through streamlining of business processes and creating value through acquisitions and network optimisation

Demonstrated M&A track record with an average of 10 pharmacies aquired and 8 net pharmacies added per year over the last 5 years

Sept 2017

3

Total own Pharmacies

Widely spread pharmacy network covers everyRegion in Switzerland

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− © Galenica

Diversified product portfolio for health, beauty and wellbeing

GaleniCare’sretail product offering in % of sales1

1 Sales YTD June 2017, includes Amavita and SunStore pharmacies, without Mediservice,Winconcept and Coop Vitality

OTC medicinesNutrition, Personaland Patient Care

Beauty

13Sept 2017

3 Retail

37%

10%4%17%

20%

12%

51%

Prescription medicinesof which originalsof which genericsof which service fees

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− © Galenica

Leading role in Consumer Health with broad and innovative product portfolio

Portfolio

OTC retail own brands

(Exclusive) partner healthand beauty brands

804 844 89

2014 2015 2016Growth on a comparable basis

1 Includes OTC, Patient Care, Personal Care and Nutritionals products2 Based on IMS Health MAT June 2017 gross sales value; IMS not including rebates, refunds or any sales deductions3 2014-16 net sales on a comparable basis including 12 month Vifor Consumer Health sales and G-Pharma adjustment 4 Adjusted for disposal of Equazen® in November 2015

Products & Brands

Net sales performance (CHFm)3Highlights

CAGR 5.8% Ability to leverage retail platform to distribute own brands

Preferred OTC partner for Swiss pharmacists

Large OTC sales force-distribution partner of choice

Expanding portfolio of own and exclusive products

Competitive position: #3 Consumer Health1 market position

Mar

ket s

hare

2(%

)

ORAL PAIN REMEDIES

No. 129% market share2

COUGH & COLD REMEDIES

No. 212% market share2

TOPICAL PAIN REMEDIES

No. 314% market share2

5.9 5.4 5.1

3.4

1.7

No.1 No.2 No.4 No.5

OTC consumer health brands

14

New

Sept 2017

3

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No. 2 No. 3

Leader in pre-wholesale and wholesale distribution, supported by an innovative healthcare information business

Competitive positioning - #1 market position1

Pre-wholesale market share %

Services

1 Based on market share. Source: QuintilesIMS Dec 20162 Prescription products3 Good Distribution Practice

Wholesale market share % (pharmacy)

Net sales performance (CHFm)

CAGR 3.6%

Pre-wholesale outsourced storage and distribution Logistics services to pharmaceutical and various healthcare clients

Wholesale distribution with three modern sites; main site at Niederbipp operates at c.70% automation

Supplies to pharmacies, self-dispensing doctors' practices, drugstores, nursing homes and hospitals

Highlights

Product master data and scientific databases IT platforms relating to electronic medication process Software solutions and services for pharmacies

>8,500 customers 100,000 products (c.9,000 Rx2) >1,100 suppliers

Access to nearly all dispensers Present in all three language regions GDP3-compliant services

Systemically relevant information and databases Solutions for safe and cost-effective provision and application

of medicines

2'171 2,245

1.7 1.6 1.7

2014 2015 2016EBIT margin (%)

No. 2 No. 3

2.5x larger than next competitor

2.0x larger than next competitor

Temperature zones: (i) -80⁰C, (ii) 2-8⁰C, (iii) 15-25⁰C

75 customers 10,000 products

One-stop shop Prepared medication in blisters

2,329

15

Services

Sept 2017

3

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− © Galenica

1'793 2'129 2'270 2'467 2'526 2'603 2'661 2'766 2'826 2'915 3'009

2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A

Source: Company information, Galenica Annual Reports, IMS HealthNotes: The financial information presented with respect to the financial years ended 31 December 2006 through 2013 has been derived from the audited consolidated financial statements of Galenica AG and represent its Logistics, Retail

and Other (Healthcare Information) businesses, excluding the Pharma business (please refer to the footnote on page 4)1 Not including Vifor Consumer Health2 Retail market includes direct and indirect pharmaceutical sales through retail pharmacies, self-dispensing doctors and mail-order services3 2014-16 EBIT includes corporate costs, excludes IAS 19 expense4 2013 financials as per 2014 financial statements due to changed segment structure (Galenica Santé is reported as a separate segment since 2014). Financials not adjusted to include Products & Brands 5 Calculated as (EBITDA-capex)/EBITDA. 2014-16 EBITDA excludes IAS 19 adjustment; capex includes investments in tangible and intangible assets6 Cash conversion impacted by high Capex due to construction of Niederbipp logistic centre

Net

sal

es (C

HFm

)R

epor

ted

EBIT

(CH

Fm)3

History of margin improvement

2006-16 CAGRsRetail market sales2 2.4%Galenica Santé net sales 5.3%Galenica Santé EBIT3 25.2%

Attractive cash flow generation

Logistics, HealthCare Information & Retail1 Galenica Santé

Well-invested infrastructure

Above market growth

14

39 39 5673 73

93 99117 126 134

0%

1%

2%

3%

4%

5%

2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A

63% 70% 70% 78% 78% 74% 74% 80%

% Cash conversion5

25%6(40%)612%6

EBIT margin (%)3

4

4

Long-term track record of sustainable growth and attractive cash generation …

16Sept 2017

4

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− © Galenica

Source: Company information, Galenica Annual ReportsNote: The financial information presented with respect to the financial years ended 31 December 2006 through 2013 has been derived from the audited consolidated financial statements of Galenica AG and represent its Logistics,

Retail and Other (Healthcare Information) businesses, excluding the Pharma business (please refer to the footnote on page 4)

Net

sal

es (C

HFm

)EB

IT (C

HFm

)

Retail Health & Beauty

Health & Beauty

13

6380 89

93

0%

3%

6%

9%

2006A 2013A 2014A 2015A 2016A

19.5%

24.9%

…EBIT margin (%) CAGRs

3.8%

8.3%

Services

Logistics and HCI Services

5

35 36 36 40

0%

3%

6%

9%

2006A 2013A 2014A 2015A 2016A

3.4%

31.6%

3.6%

5.4%

6.5%

1.7%

… demonstrating strong performance in both segments

17

Health & Beauty Health & Beauty

1'703 2'158 2'171 2,245 2,329

2006A … 2013A 2014A 2015A 2016A

358

1'246 1'335 1'393 1,437

2006A … 2013A 2014A 2015A 2016A

Sept 2017

4

……

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− © Galenica

First half year 2017 - We are on track Pleasing development and very solid results

18

1. Very solid results Net sales increased (+6.8%) EBIT increased (+14.1%)1)

2. ROS increased (up to 4.8%)1)

3. Strong net profit growth

All activities of the Group made further progress

Sept 2017

5

1) Including CHF 7.0 million positive one-off EBIT effects

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− © Galenica

RetailFurther reinforcement

of the pharmacy network

Own pharmacies: 332Total network: ~ 500

EXPANSION of activities

19

Products & BrandsAcquisition of Merfen®

and Vita-Merfen®

New beauty brands:Lierac, Phyto

New partner brands:Adler’s Schüssler salts

ServicesAcquisition of

Pharmapool,Wholesaler for selfdispensing Doctors

Sept 2017

5

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− © Galenica

INNOVATION: new products and services

20

Click&Collect:the pharmacy goes online

MedCenter: on-line supported drug purchase, pilot project

Aprioris: The walk-in-clinic, pilot project

Sept 2017

5

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EFFICIENCY: new products and services

21

1. ERP project Modulo(Pre-Wholesale & Wholesale)

2. TriaPharm® at Coop Vitality(including direct invoicing)

3. Process alignment in Retail

Synergies

Healthcare Information

Sept 2017

5

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-0.3%

3.6%

2.9%

-1.8%

0.0%

-1.0%

-5.0%

1.8%

5.4%

7.6%

3.9%

-6.9%

-0.8%

-0.4%

-3.8%

-1.2%

Swiss Pharmaceutical market − continuous value growth (YTD June 2017)

22

Value (at ex-factory prices)

Volume (sold packages)

Source: QuintilesIMS, Pharmamarkt Schweiz, YTD June 20171 Medicines Swissmedic list A, B, C, D sold from suppliers and wholesalers to hospitals, physicians, pharmacies and drugstores2 Total market without hospitals3 Medicines Swissmedic list A, B4 Medicines Swissmedic list C, D5 QuintilesIMS, PharmaTrend, YTD June 2017; personal care, patient care and nutrition products sold in pharmacies and drugstores to street prices

Hospitals: 670.8 23.6%

Physicians: 718.8 25.2%

Pharmacies: 1’425.5 50.1%

Drugstores: 30.6 1.1%

OTC4: 365.3 16.8%

RX3: 1’809.6 83.2%

Total: 2’845.7 100% Retail2: 2’174.9 100%

Market1 Value CHFm Share Change Market1 Value CHFm Share Change

Market development highlights: Growth of high-priced special medications Growth in hospitals and specialist doctor

channels Declining volumes Declining beauty and personal care market

(~ -2.1%5)

Sept 2017

5

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− © Galenica

134.2

67.2 76.6

2016 HY2016 HY2017

3'009

1'487 1'587

2016 HY2016 HY2017

Galenica Group − Pleasing development

23

Net sales (in million CHF) EBIT adjusted1 (in million CHF)

EBIT Margin (ROS)1 excluding the effects of IAS19

+6.8%+14.1%

4.5% 4.5% 4.8%49.4%

50.1%

Highlights: Strong growth thanks to:

- Acquisition of Pharmapool (about +5% impact on Group sales growth)- Growth of high-priced special medications mainly through MediService- Launch of new products and partner brands

CHF 7.0 million positive one-off EBIT effects 3.6% EBIT growth without one-off effects

Sept 2017

5

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1'437

709 730

2016 HY2016 HY2017

Health & Beauty segment − Increasing EBIT margin

24

93.5

46.5 49.5

2016 HY2016 HY2017

+2.9%

EBIT Margin (ROS)

6.5% 6.6% 6.8%

+6.5%

8948 51

1,349

662 679

Retail

P&B

49.1%

53.6%49.8%

+2.5%

+6.8%

Highlights: 1.3% Retail growth thanks to the expansion of the pharmacy network Growing more than 10%, the mail order sales contribute more than 10% to the total Retail

sales, mainly with high-priced special medications Like-for-like sales growth of generics in our pharmacies by about 5% Successful launch of Lierac, Phyto and Adler’s Schüssler salts EBIT margin increase (+20 basis points) thanks to strong growth of Products & Brands

Net sales (in million CHF) EBIT (in million CHF)

Sept 2017

5

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− © Galenica

39.9

20.228.7

2016 HY2016 HY2017

2'329

1'148 1'234

2016 HY2016 HY2017

Services segment − expanded offering with Pharmapool

25

+7.4%

EBIT Margin (ROS)

1.7% 1.8%2.3%

+41.9%

49.3%50.7%

Highlights:Successful integration of Pharmapool from day one

(about +6.5% impact on sales growth of the Services segment) CHF 7.0 million positive one-off EBIT effectsEBIT margin without one-off effects stable at 1.8%

(additional costs for ERP project compensated by further efficiency improvements)

Net sales (in million CHF) EBIT (in million CHF)

Sept 2017

5

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Galenica Group −Favourable financial and tax costs support strong net profit

26

20.0% 22.0%18.0%

2016 HY2016 HY2017

Highlights: Long-term financing at attractive conditionsTax rate profit from positive one-off effects of 0.9%CHF 6.3 million positive one-off effects included in the net profit

Tax rate

1HY 2017

EBIT adjusted1 76.6Financial result adjusted1 (0.8)

Income tax adjusted1 (13.7)

Net profit adjusted1 62.1

1 excluding the effects of IAS19

Net profit (in million CHF)

Sept 2017

5

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− © Galenica

745 790

350 309

1.1.17 HY2017

31.415.3 14.1

3.6

1.719.4

35.0

17.0

33.5

2016 HY2016 HY2017

Galenica Group − Strong balance sheet

27

% of Total liabilities and shareholders' equity

65%81%80%

1 shareholders’ equity and net debt of pro-forma balance sheet as of 1 January 20172 calculated as net debt / EBITDA adjusted, excluding the effects of IAS 193 calculated as (EBITDA-capex)/EBITDA, EBITDA excluding the effects of IAS 19, capex includes investments in tangible and intangible assets

Investments in tangible assetsInvestments in intangible assets

% of sales 2.1%1.1%1.2%

45% 43%

17%21%

2.0xDebt coverage2

Equity Net debt

1.7x

1

Investments in million CHF Net debt / Equity in million CHF

Highlights: Without the acquisition of Merfen® and Vita Merfen®,

capex at 1.2% of net sales and cash conversion at 81% Strong free cash flow of CHF 48 million including business combinations Net debt reduced to CHF 309 million 1.06 million treasury shares (2.1% of total shares) for CHF 41.2 million; cash impact in HY2 2017

Cash conversion3

Business combinations

30.3 11.4 31.2

Sept 2017

5

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Guidance 2017

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Sales growth in line with the first half of 2017Sales

Sept 2017

6

Intention to pay out a dividend of 80 million in 2018, out of the Capital Contribution Reserve1)

(exempt from withholding tax and for Swiss resident individuals exempt from income tax).Dividends

1 amounts to CHF 560 million as of 1 January 2017

Growth of EBIT adjusted (excluding the effects of IAS 19) between +7% and + 12%, including positive one-off effects of CHF 7.0 millionEBIT

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Galenica GroupContact information

Investor Relations Media

Felix Burkhard Christina HertigCFO Galenica Head Corporate Communication Tel.: +41 58 852 85 29 Tel.: +41 58 852 85 17Mail: [email protected] Mail: [email protected]

29Sept 2017

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Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. Neither the Company nor its advisers or representatives nor any of its of their parent or subsidiary undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

30

Disclaimer

Sept 2017