Fagron N : ABN-ODDO Benelux Equities Conference – Amsterdam

ABN ODDO Benelux

Equities Conference 2024

Amsterdam - 22 May 2024

Karin de Jong

CFO

Disclaimer

The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Fagron.

Certain statements in this presentation may be deemed to be forward-looking. Such forward-looking statements are based on current expectations and are influenced by various risks and uncertainties. Consequently, Fagron cannot provide any guarantee that such forward-looking statements will, in fact, materialize and cannot accept any obligation to update or revise any forward-looking statement as a result of new information, future events or for any other reason.

This document, including all information contained therein, is not intended as, and may not be construed as, an offer or solicitation by Fagron for the purchase or disposal of, trading or any transaction in any Fagron securities. Investors must not rely on this information for investment decisions and are solely responsible for forming their own investment decisions. The information provided in this document is intended for information purposes only and do not constitute a prospectus or any other type of offering document pursuant to any applicable legislation.

2

Agenda

Introduction to	Q1 2024 results
Fagron

4 13

3

Shaping the future of personalised medicine

Active in 35+ countries

3,500+ people globally

80+ facilities

3 Segments

3 Regions

	37,4%	40,5%
43,0% FY 2023 41,0%	FY 2023
16,0%	22,2%

MSCI ESG Rating

AAA

Essentials

Brands

Compounding Services

EMEA

LatAm

NA

FY 2023: €763m	Revenue	FY 2023: 19.5%	REBITDA	FY 2023: 1.4x	Net Debt
Margin	ratio

4

Uniquely integrated across entire compounding value chain

Patient journey	Customer journey
Drivers
Convenience
Administration form
Dosage strengths
Pharmacogenomics	Personalizing
Combination	medicine
therapy Innovation	Brands &
therapy
	Essentials

Industry

Pharmacy

1 2 3 4

Patient	Prescriber	Personalizing	Pharmacist	Wholesaler	Patient
		medicine

c. 1 - 1.5%	(Sterile)
of the global pharma industry	Compounding
Services	Personalizing
		medicine
		Hospital & Clinic

5

Robust top-line growth and profitability with high cash conversion

Organic Revenue Growth (at CER)

REBITDA and REBITDA Margin

25,0%

30%

20%

10%

10,5%

190,00
170,00	21,9%	22,3%
150,00		20,6%
130,00		19,1%	19,5%

24,0%

23,0%

22,0%

21,0%

20,0%

7,4%

0%

-10%

2019	2020	2021	2022	2023
	EMEA		LatAm		North America			Group

Revenue diversification

120,0%	534.7	556	573.8	683.9	763
100,0%
80,0%	27,6%	28,7%	31,0%	35,8%	40,5%
60,0%	23,8%	23,2%	24,6%
						23,7%	22,2%
40,0%
20,0%	48,6%	48,1%	44,5%	40,4%	37,3%
0,0%
	2019	2020	2021	2022	2023
			EMEA		LatAm		North America

110,00
		123,9			130,7	149,0
90,00	117,0		118,3
70,00
50,00
	2019	2020		2021	2022	2023
				REBITDA			Margin

Net Debt / REBITDA & Cash conversion

2,5	66,0%	75,0%	66,3%	69,6%	68,1%
2
1,5	2,33x
	2,06x	2,11x
		1,90x
						1,40x
1
0,5
	2019	2020	2021	2022	2023
			Net Debt/REBITDA		Cash Conversion

19,0%

18,0%

17,0%

16,0%

15,0%

90,0%

70,0%

50,0%

30,0%

10,0%

-10,0%

-30,0%

-50,0%

-70,0%

CER: Constant Exchange Rate

6

Unrivalled global presence with increasing diversification

EMEA - FY 2023

21.5%

REBITDA margin

+2.2%

Organic revenue growth at CER

31.2%

3744.35%

52.2% 16.7%

• Market leader in mature home markets
• Strong challenger positions in most other markets

Latin America - FY 2023

16.5%

REBITDA margin

+2.3%

Organic revenue growth at CER

2.1%

31.2%

22.2%

66.6%

• Market leader in B&E
• Active in Colombia in Compounding Services

North America - FY 2023

19.4%

REBITDA margin

+25.5%

Organic revenue growth at CER

21.4%

40.5%

7.0%

71.6%

• #2 in Compounding Services
• #3 in B&E

CER: Constant Exchange Rate	Compounding services	Brands	Essentials	7

Key strategic priorities to drive sustainable growth

Global leadership in		Become leading, global,
1 Brands & Essentials		platform for Sterile	2
across our markets		Outsourcing Services
	Enablers

3 Optimize non-sterile compounding &

registration business

Quality focus

Global Operational

Excellence

Fagron Academy

Disciplined M&A

Build the organization 4 of the future with a

clear sustainable focus

8

Revenue growth to benefit from LFL in high-single digits

EMEA

• Market share optimization initiatives in mature home markets
• Continued growth in other countries (CS and B&E)

Low-single digits

Latin America

Primarily driven by B&E

High-single digits

North America

Stronger overall positioning in B&E and CS

Mid-teens

+8%

organic revenue

CAGR

CAGR at CER (2022 - 2026)

Compounding Services to grow faster than B&E

Targeting higher growth in Brands than in Essentials

CER: Constant Exchange Rate

9

Cash generation & earnings conversion to remain sustainably high

REBITDA margin

Consistent

Average REBITDA margin 2022-2026

Continued benefits from	CAPEX to remain
asset light model	well under control

10 - 11%		3% - 3.5%
Operating Working Capital		CAPEX
as % of revenue		as % of revenue
≥ 70%
	+ CAPEX disposal optionality
Operating cash conversion
(% of REBITDA - 2022-2026)
≥ 50%
FCF conversion
(% of REBITDA - 2022-2026)

10