Galenica : Sales and Guidance Update

Galenica Group

Sales and Guidance Update

January 2020

Galenica - die erste Wahl für Gesundheit, Schönheit und Wohlbefinden

Swiss pharmaceutical market by channel YTD December 2019

Value (ex-factory): CHF 6,136.5 million (CHF +165.2 million / +2.8%)

Volume (packs): CHF 187.1 million (+0.5 million packs / +0.3%)

Hospitals 1,561.8 million +6.1%

Drugstores

60.7 million

Hospitals 16.8 million -1.2%

Drugstores

25.4%6.3 million

9.0%

3.4%

+1.7%

Physicians 1,551.9 million +5.5%

Pharmacies 2,962.2 million -0.2%

+0.4 %

1.0%	48.3%
Physicians
25.3%		42.5 million
	+1.9%

Pharmacies 121.4 million -0.1%

22.7%

64.9%

Source: APO/SD/DRO/SPI Index

Medicines Swissmedic A, B, C, D, sold from suppliers and wholesalers to hospitals, physicians, pharmacies and drugstores

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Consumer healthcare market in the specialist trade YTD Sep 2019

3.3%

12.3%

1'851

Mio.

22.8%(+0.8%)

Sep YTD

OTC +1.7%

Personal care -0.2%

Patient

61.6%care -1.6%

Nutrition +0.4%

non-medication products -0.7%

Source: PharmaTrend for pharmacies and drugstores in Switzerland, sales to streetprices

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Galenica Group

Sales growth above market

Net sales(in million CHF)

+4.3%

+6.0%

+11.3%

+2.9%

2019 2018

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Galenica Group

Pleasing sales growth despite price cuts

Net sales(in million CHF)

+4.3%

+2.2% +6.4%

49%

51%

48%

52%

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Retail

Strong impact of expansion on sales growth

Net sales(in million CHF)

+6.0%

+4.3% +7.5%

49%

51%

48%

52%

Elements of growth:

+5.6%

Expansion1

:

+2.6%

+5.1%

+6.1%

Organic2:

+0.4%

+0.5%

-0.7%

+1.4%

thereof impact of price cuts3

:

-1.6%

-1.9%

-1.8%

-1.8%

• Strong expansion of pharmacy network: 19 added, 8 restructured, net +11 thereof +5 Amavita/Sun Store and +6 Coop Vitality
• Continuous growth of generics (+5.5%like-for-like)

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1. Calculated for points of sale without a full year period comparison for 2018 and 2019
2. Consolidated net sales minus expansion effect

3

Mandatory price reductions of reimbursed medications of the specialities list (SL), calculated based on volumes 2018

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Products & Brand

Pleasing sales growth above market

Net sales(in million CHF)

+11.3%

+11.0%		International sales

+11.1% +11.5%

				Sales in the Swiss Market
+11.4%

53%	47%	53%	47%

• Sales growth of 11.4% in the Swiss Market thanks to the new distribution of P&G brands Vicks®and Metamucil®and the launch of Dermafora®, other sales stable

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Services

Strong sales growth in H2 2019

Net sales(in million CHF)

+2.9%

+1.3% +4.5%

50%

50%

49%

51%

impact of price cuts1:

-2.4%

-2.6%

-2.0%

-2.3%

• Growth of 3.4% in the pharmacy wholesale market (portion 64%)
• Growth of 2.2% in the physician wholesale market (portion 25%)

1 Mandatory price reductions of reimbursed medications of the specialities list (SL), calculated based on volumes 2018

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Outlook for 2019

• EBIT adjusted (excluding the effects of IAS 19 and IFRS 16) +7% to +9%, plus 2 to 3 million CHF due to IFRS 16
• 2019 dividend at least atprior-year level,
  50% out of the capital contribution reserve

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Disclaimer

Disclaimer Galenica

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.

Disclaimer IQVIA

© 2020, IQVIA Solutions GmbH

All rights reserved. The information may not be duplicated, stored, processed further, nor be made accessible in whole or in part to any third party without prior express and valid written permission of IQVIA Solutions GmbH . Terms used in connection with data/figures such as "patient", "doctor", "medical practice", "prescriber", or "pharmacy" do not designate any personal data but exclusively anonymous information (according to applicable, valid data protection laws).

IQVIA utilizes highly sophisticated technologies and methods in order to ensure that all its Information Services meet the applicable data protection requirements, regardless of the way data are combined.

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