Q1 2012

Interim Report, 2012 Q1 10 May 2012

Richter Group

Q1 2012

Pharmaceuticals

Pharmafarm: wholesale (Romania)

Gedeon Richter Farmacia: retail (Romania,

120 pharmacies)

Russia: Gedeon Richter RUSGreenfield investment (1996)

Romania: Gedeon Richter RomaniaAcquisition (1998)

Poland: GR PolskaAcquisition (2002-2008)

India: Richter ThemisJoint venture (2004)

Germany: Richter-Helm BiologicJoint venture (2007)

Parent company: Gedeon RichterFounded: 1901

Wholesale and retail

Other

A number of companies rendering services

+ further minority interests in wholesale and

pharmacies

Switzerland: PregLemAquisition (2010)

Leading pharmaceutical group in the region

Q1 2012

3

Key financial data

HUF Growth EUR Growth

Sales 82.0 bn 15.8 % 276.9 m 6.4 %

Operating profit 15.4 bn 50.1 % 51.8 m 37.8 %

Net profit* 16.8 bn 49.9 % 56.6 m 38.0 %

EPS (HUF, EUR) 905 50.8 % 3.06 39.1 %

* Profit attributable to owners of the parent

Q1 2012

4

Key market developments

CIS

− Russia

predictable economic environment

significant increase in sales

preshipments

− Ukraine

political, economic stabilization

sales increase

− Other republics

decreasing sales

good performance of wholesale & retail

Q1 2012

5

Key market developments

Central and Eastern Europe

− austerity measures in healthcare

− sales growth in key markets

Western Europe

− Esmya® market launch – Germany, United Kingdom

− expanding female healthcare sales network

− austerity measures in healthcare

− increasing competition in the generic business

Hungary

− unfavourable regulatory measures

− sales decrease

Q1 2012

6

Key market developments

USA

− further decline in drospirenone related revenues

Cariprazine

− successful phase III trials: schizofrenia, bipolar mania

− registration in 2012 Q4

Q1 2012

11%

8%

12%

6%

6%

32%

10%

7%

3%

7

Geographical composition of Group sales

Total:

HUF 70.8 bn

EUR 260.2 m

Total:

HUF 82.0 bn

EUR 276.9 m+ 6.4 % (€)

2011

Q1

EU15

Hungary

Poland

Romania

EU9

Other

countries

Other CIS

Ukraine

USA

Russia

2012

Q1

Hungary

Russia

Poland

Romania

EU9

EU15Other

countries

USA

Other CIS

Ukraine

5%

13%

7%

13%

7%

10%5%

5%

7%

4%

29%

Q1 2012

8

Composition of pharmaceutical sales

by therapeutic areas

Muscle

relaxants

Gastrointestinal

Other

Gynaecology

Central nervous

system

Cardiovascular

Total: EUR 241.1 m

2012

Q1

14%

25%

28%

4%

7%

22%

Q1 2012

9

CIS

Substantial increase in

sales (15.7% EUR)

Strong sales increase in

Russia and in Ukraine

(preshipments)

Stabil economic

environment

* Turnover of the pharmaceutical segment

Turnover*

EURm

Q1 2012

10

Russia

Substantial increase in

sales (17.9% EUR)

Significant preshipments

Efficient promotional and

marketing activities

Increase of manufacturing

and warehousing

capacities

Turnover*

EURm

* Turnover of the pharmaceutical segment

Q1 2012

11

Ukraine, Kazakhstan, other republics

Ukraine

− outstanding sales increase (47.4% USD)

− large preshipments

− stabil political and economic climate

Kazakhstan

− significant sales decline

− regulatory changes

Other republics

− 1.4% decrease (USD)

Turnover*USDm

* Turnover of the pharmaceutical segment

Q1 2012

12

EU – composition of sales*

Traditional EU member states

− strengthening our position on

key Western-European

markets

− own female healthcare sales

and marketing network

Poland, Romania, EU 9

− well established in the region

for decades

− own specialized sales network

35%

65%

* Turnover of the pharmaceutical segment

Q1 2012

13

Western – Europe

Recently established sales and marketing network

Female healthcare products

Richter OC portfolio + oral contraceptives acquired from

Grünenthal

Esmya®

− marketing authorization

− market launch (Germany, UK)

Q1 2012

14

Poland, Romania, EU9

Turnover growth

Unfavourable regulatory

environment

Poland:

– sales growth of 17.9 % in PLN

– low stock levels at year-end

Romania:

– turnover growth of 4.5 % in

RON

– efficient marketing activities

vs. significant payment delays

Turnover*EURm

* Turnover of the pharmaceutical segment

Q1 2012

15

USA

Declining sales levels

(-34.8% USD)

Significant proportion of

female healthcare – 92 %

Decreaseing drospirenone

related profit sharing

USDm

Turnover*

* Turnover of the pharmaceutical segment

Q1 2012

16

Hungary

7.2 % sales decline (HUF)

Unfavourable macroeconomic

and industry related

environment

Disadvantageous

amendments implemented to

price regulation and

reimbursement system,

further price decreases

Successful new product

launches

HUFbnTurnover*

* Turnover of the pharmaceutical segment

Q1 2012

17

Female healthcare – therapeutic focus

Full range of female healthcare products

Generic and original clinical product development

Product group with higher than the average gross margin

Expansion of our Western-European presence

− expanding sales and marketing network

− market launch of Esmya® (Germany, UK)

− Grünenthal OC portfolio

− generic product launches, continuous renewal of the product portfolio

Q1 2012

Sales and marketing in Western Europe

Existing distribution network

Future sales opportunities

Q1 2012

0

5

10

15

20

25

30

35

Female healthcare sales (HUFbn)

Other sales (pharma) (HUFbn)

19

Female healthcare sales by region

6%

27%11%

7%

31%

Total:

HUF 20.2 bn

EUR 68.3 m

2011

M12

Hungary

CEE

EU15

Other countries

CIS

USA

18%

Grünenthalportfolio

HUFbn

Q1 2012

20

Sales network

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010 2011 2011 Q1 2012 Q1

CIS CEE Hungary EU15

staff

Q1 2012

21

Key financial data

Change

* Profit attributable to owners of the Parent

Q1 2012HUFm

Q1 2011HUFm HUFm %

Total revenues 82,006 70,839 11,167 15.8

Gross profit 50,502 43,089 7,413 17.2

Profit from operations 15,355 10,228 5,127 50.1

Net financial income 2,156 1,759 397 22.6

Profit for the year* 16,752 11,175 5,577 49.9

Total assets and total equity and

liabilities

702,044 579,280 122,764 21.2

Capital and reserves 498,421 442,492 55,929 12.6

Capital expenditures 2,699 2,937 -238 -8.1

Cash and cash equivalents 136,266 66,470 69,796 105.0

Q1 2012

22

Operating expenses and margins

Sales and marketing expenses

− 27.2% of consolidated turnover

− 19.1% increase (HUF)

Administration and general expenses

− increased by 23.6%

Research and development expenses

− 11.8% of consolidated turnover

− increased by 16.7 %

Other income and other expenses

− two significant one-off incomes

Gross margin

60.8%

61.6%

Operating margin

14.4%

18.7%

Q1 2012

Q1 2012 Q1 2011

Unrealised financial items 5,189 2,397

Reassessment of currency related trade receivables and trade payables 2,330 (1,506)

Reassessment of currency loans (72) (110)

Reassessment of credit 3,114 1,796

Reassessment of other currency related items 994 2,207

Unwinding of discounted value related to liability in respect of PregLem (1,094) -

Reversal of assessment of forward exchange contracts as of 1 Jan 249 (64)

Result of unrealised forward exchange and swap contracts (332) 74

Realised financial items (3,033) (638)

Result of realised forward exchange contracts (11) 107

Exchange losses realised on trade receivables and trade payables (1,205) (925)

Exchange losses on conversion (1,900) (153)

Dividends 2 1

Net interest income 517 308

Other (436) 24

Net financial income 2,156 1,759

23

Financial income

HUFm

Q1 2012

24

Evolution of currency exchange rates

150

170

190

210

230

250

270

290

310

330

31

.03

.20

11

30

.04

.20

11

31

.05

.20

11

30

.06

.20

11

31

.07

.20

11

31

.08

.20

11

30

.09

.20

11

31

.10

.20

11

30

.11

.20

11

31

.12

.20

11

31

.01

.20

12

29

.02

.20

12

HUF/USD

HUF/EUR

Q1 2012

25

Ownership structure

31 March 2012

Hungarian State

Holding Company

Domestic

investors

International

investors

64.0%

25.2%

10.8%

Q1 2012

Thank you for your attention!

Q1 2012

Appendix

Q1 2012

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2011 2012

Q1

EUR/HUF

period end 265.8 265.6 292.1 311.1 311.1 295.6

average 272.3 264.7 272.8 303.2 280.0 296.2

USD/HUF

period end 187.0 183.4 215.7 240.7 240.7 221.6

average 198.9 182.3 192.9 224.7 201.0 225.4

28

Exchange rates