Shedir Pharma S p A : PRESENTATION_VIRTUAL AIM CONFERENCE_NEXT GEMs

STRICTLY PRIVATE AND CONFIDENTIAL

1 Company and Market Overview

Shedir Pharma Group - at the glance

A leading Italian player active in the healthcare sector with a strong specialization in nutraceuticals

Foundation Backed on the experience both in Nutraceutical and Pharmaceutical sectors Shedir Pharma was establishedFaithful to health

It's our goal to provide a positive impact on the life of every personthanks to the creation of innovative products with high therapeutic effect

through a distribution model which can rely on a wide and specialised network of agents approaching doctors and pharmacists (a model peculiar of the pharma sector)

Appealing growth, high margins, top quality products, impressive distribution network

Notes: (1) Updated to September 2020

Notes: (2) Autorizzazione all'Immissione in Commercio, updated to September 2020

Shedir Group is focused on the development, formulation, distribution and sale of dietary supplements and drugs

•  The Group has organized its activities within 2 Business Units supported by captive companies operating in certain R&D and marketing activities

Business Unit 1 - Shedir division

Business Unit 2 - Dymalife division

•  Shedir division is involved in the development, formulation, distribution and sale of supplements, dermocosmetics and medical devices

•  Within the division, Shedir Pharma Srl is engaged in the products distribution, through 4 product lines, with exclusive sales agents involved in the release to healthcare professionals (doctors and pharmacists )

•  In April 2019, the Group launched new line Shedir Pet, to expand its products offer and to penetrate a growing market

Product Lines

5

~600

Exclusive sales agents

® 90+

Brands

300+

References

•  Dymalife division is involved in the development, formulation, distribution and sale of drugs and, marginally, dietary supplments.

•  In 2017, the Group entered in the pharmaceutical sector through the acquisition of pharmaceutical assets and the costitution of Dymalife Pharmaceutical Srl.

•  Dymalife Pharmaceutical sells group A, group C and OTC medicines, through two specific product lines: Dyma and Horizon. In order to offer a complete therapeutic treatment, the Company enriched these lines with supplements and medical devices.

Product Lines

2

~100

Exclusive sales agents

®

30+

Brands

100+

References

An integrated offer of nutraceuticals and drugs

* Ebitda net of extraordinary and non-recurring costs

Key milestones

Wholesale distribution

Nutraceutical Consolidation

Diversification

• • Shedir establishment and start-up

• • Warehouse, logistic and administration insourcing in Sorrento peninsula (2008)

• • Sales force recruitment

• • Launch of the first line of products Shedir (2008)

• • Launch of the second line of products Deimos (2011)

  • • Neilos (R&D) establishment (2015)

• • New headquarter 500 sqm •

  in Piano di Sorrento (2011)

• • New warehousing and logistic facilities 3.500 sqm located in Mercato San Severino (2012)

• • Launch of the third and fourth line of products Phobos and Menkar (2014)

• • Warehouse extension of around 5.000 sqm (2014)Filing for first patent (2015)

• • Product brands transferred to Neilos (2015)

• • Adhara Marketing and Comunication acquisition (2015)

• • Shedir Farmaceutica España SL establishment (2015)

• • Start of internationalization process (2016)

• • First clinical study published on an international paper (2016)

• • Launch of the fifth line, Green Planet, dedicated to pharmacies through direct marketing strategy (2017)

• • Dymalife (Pharma) establishment with the first line Dyma (2017)

• • Launch of the second line of Dymalife, Horizon (2018)

• • Launch of the sixth line of Shedir Pharma, Shedir Pet (2019) dedicated to veterinarians

• • IPO (July, 2019) on AIM

COVID situation doesn't stop internal and external development of the Gruop:

• • Dymalife buys EMINOCS (diclofenac of potassium specialty);

• • Group continues its R&D activities through Neilos reaching over 30 patents (and over 60 pending)

A young, dynamic and fast-growing company

The Group oversees the entire value chain, from R&D to products' distribution

Concept DevelopmentRegulatory ComplianceFormulation

Production

Warehousing and Logistics

Marketing

Sales & Distribution

In-House

Outsourced

In-House

•  Experienced R&D team with 8 people

•  Feedback from doctors and pharmacists

•  Collaboration with oustanding pharmaceutical players

•  Collaboration with universities and academies

•  Opinion leader surveys and papers

•  Direct access to high-quality raw materials: procurement of the core raw material from selected suppliers is carried out directly by the Group

•  ~40 third-party specialized factories in Italy with whom Shedir has built longstanding relationship

•  Quality control on the whole production chain and compliant with pharma standards

•  Promotional activities addressed to doctors and pharmacists

•  Advertisement and Communication

•  Conventions oriented to divulgation and introduction of new products

•  Sales to:

   wholesalers operating on a domestic scale

   pharmacies and parapharmacies thanks to a widespread network of exclusive sales agents

•  Delivering high quality products

•  Flexible production system in terms of limited investments required and high adaptability to client needs

•  First mover in market niches

Focus on the value-added activities along the value chain

Source (1) ABACAM

Notes (2) Net CAPEX excluding extraordinary capital expenditure

Strong and diversified product portfolio

Shedir Pharma Group's activities are grouped into 2 Business Units (Shedir division and Dymalife division)

Business Units

2019 Key FiguresProduct Lines and #References

Short Description

Main References

• • Product Lines that meet the needs of physicians and consumers in 15 + therapeutic areas.

• • Each PL is marketed by a dedicated network of agents

• • PL strengthening the presence of the Group's products in the pharmacy

• • Wide and diversified line of prescription drugs, dietary supplements and medical devices in their different pharmaceutical forms

•  The diversified portfolio allows a stable turnover, enabling the Group to address eventual market/ regulatory changes in the pharmaceutical and nutraceutical sector

•  Broad and diversified product portfolio, covering multiple therapeutic areas with market leading references

•  Focus on brand awareness

•  Integrated therapeutic offer dedicated to specialists (supplements, medical devices, dermocosmetics and drugs)

•  Pharmacies as the main distribution channel: (i) Pharmacies are the leading distribution channel in the market; (ii) Products sold in pharmacy generally show the highest average sales price.

Source: company data

Notes: (1) Including foreign sales (equal to c. € 1.1m) and other revenues (c. € 0.5m).

87.49%

Notes: (1) the remaining 2.0% stake is owned directly by Mr. Umberto Di Maio (2) Neilos was established in 2015 following the spin-off of certain intangible assets (brands) of S.G. International S.r.l.

Italian Nutraceutical Market has a value of about 3,5 €/Billions with an increase of about 1% in the last 12 months1.

Sell-out Market Value and Yearly Deviation2

Best 10 Market Segments covered by nutraceutical products1

€/Bln

200

+5%

6% +3,6%

€/mln

Probiotic

Mineral supplement

Cholesterol regulators

Urinary system

Calmers and sleeping pills

Polyvitamins

Digestion and stomach

Laxatives

Tonic

2017

2018

2019

1H 2019

1H 2020

Anti-Cough

-100

300

400

500

Sell-out by distribution channels1 4% 5%

PharmacyLarge Scale Retailers

€

Corner

• (1) IQVIA Solution Italy. MAT (Moving Annual Total, last 12 months) as June 2020;

• (2) 1H 2020 deviation is compared to 1H 2019 YTD value;

• (3) Itaian Market Share related to first 10 Segments.

Average sales price by channels1 15,9

Market

PharmacyLarge ScaleCorner

Retailers

€/mln

Best 10 Market Segment covered by Shedir Group - 1H 2020

Cholesterol regulators

Anti-Cough

Urinary system Immunostimulants Mineral supplement

Antivaricosis Other products

Antioxidants

Probiotic

Tonic

5%

91%

((1) Market Share calculated according to the Quantity Sales in the Market Segments covered by the Shedir Group.(Source: IQVIA Solution Italy)

(2) In the 1H 2020 Shedir Group Unit Sales (in the first 10 Market Segments) reported the same decrease of the related Italian Market Segment

2.1

Top 10 Brands

Total Top 10 Brands Total Sales 2019

2019 Top 10 Brands Sales and % of Total Sales (€/m)

1.1 2.2%

4.7 9.3%

4.0 7.8%

2.6 5.2%

2.1 4.1%

2.0 3.9%

2.0 3.9%

1.9 3.8%

1.7 3.3%

1.1 2.2%

€22.0m 45.8% €50.7m 100.0%

Product diversification allows the Group to preserve its market share and to reduce its revenues dependence on few brands

2 Financial overview

TOTAL SALES (€m)

EBITDA ADJ (€m)

Shedir Division (B.U.1)

FY 2017 FY 2018 FY 2019

1H 2018 1H 2019 1H 2020

NET DEBT / EQUITY (€m)

26,5

FY 2018

Net Debt

FY 2019

Equity

1H 2020

(1) For FY 2019 Adjstments refer mainly to Tax provisions and AIM listing costs; For the 1H 2020 they refer to Extraodinary incomes/costs..

Cost structure breakdown FY 2019 (€m)

• (1) Cash Conversion calculated as Net Free Cash Flow divided by the EBITDA

• (2) Cash Conversion ADJ calculated as Net Free Cash Flow divided by the EBITDA Adjsted from extraordinary Items

Net Debt Evolution (€m)

Net Debt / Adj. Ebitda

16,1

FY 2018

FY 2019

1H 2020

Net Debt Breakdown

FY 2018

FY 2019

1H 2020

Cash and cash equivalentsCurrent financial liabilitiesNon-current financial liabilitiesFinancial assets

(1) Net Financial Position as at 30/6/20 divided by EBITDA LTM (EBITDA Adj.2019 - EBITDA Adj. 2019 H1+ EBITDA Adj. 2020 H1)

3 COVID - 19 ISSUES

Compliance with Ministerial Health Protocols

CODIV19-ISSUES

•  Constant and conspicuous information addressed to all employees regarding the updates of health protocols;

•  Bi-weekly sanitation of the premises, environments, workstations and common areas by a specialized company;

•  Assignment of personal protective equipment to all employees and the spacing of the workstations, making use of the various and large premises available to the Company;

•  Smart working and use of video conference for Company's meetings.

Impact on Shedir Group Activities

•  Reduction on Marketing activities due to lockdown of medical offices;

•  Re-schedule and/or reduction of Promotion events according to Government regulations;

•  No issues or delay about supply and sales delivery activities.

Business Actions taken by the Management during 1H 2020 period

•  use of bank financing measures guaranteed by the Guarantee Fund for SMEs and grants for the purchase of anti-COVID equipment;

•  activation of social unemployment benefits provided for the "Covid-19 Emergency";

•  Working Capital actions mainly on Stock and fixed Costs renegotiation;

  CODIV19-ISSUES

•  Re-organization of main Group Offices;

•  Continuous monitoring of Market in order to identify best opportunities.

Post Covid Planned Actions

•  Sales Network re-organization in order to have a more flexibles and efficiency agency structure;

•  Rationalise of references portfolio;

•  Implementation of ERP and management internal control;

•  Completation of internal and external development activities started in previous periods.

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