19 years after one group, two different … years after... ...one group, two different strategies...

THE GALENICA GROUP – EXCELLENCE IN THE HEALTHCARE MARKET

19 YEARS AFTER... ...ONE GROUP, TWO DIFFERENT STRATEGIES

March 2015

GALENICA GROUP OVERVIEW

2 © Galenica Group

Move to Galenica Santé by mid-2015

#1 Worldwide #3 Switzerland #1 Switzerland #1 Switzerland #1 Switzerland

GALENICA FINANCIAL PROFILE

3 © Galenica Group

21 26 30 34 42 49 54 59 67 64 80

104

135

189 210

232 256

277 296

312

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Minorities

SWISS GAP until 2003 IFRS

NET PROFIT BEFORE MINORITIES (*)

(CHFm)

Cumulative Growth: +1,372% CAGR: +15%

(*) like-for-like (excludes non-cash one off effects of CHF39m in 2013)

EPS DEVELOPMENT

9.9 12.3

15.9

20.7

29.1 32.3

35.5 34.6

39.4 39.8 43.9

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(CHF)

Cumulative Growth: +345% CAGR: +16%

SHARE PRICE PERFORMANCE 1995-2014 STOCK MARKET VALUE FROM CHF 250M TO >5BN

4 © Galenica Group

Scaling to 100 from 1995 Share Price (CHF)

0

100

200

300

400

500

600

700

800

900

1'000

0

500

1'000

1'500

2'000

2'500

SMI Berkshire Hathaway CHF Swiss Life Sciences Index Galenica

Cumulative Growth: ~2,100%; Average growth rate p.a.: 19.5% Total shareholder return p.a.: 22% (incl. dividends)

ORGANISATION OF GROUP MANAGEMENT LEADERSHIP TEAM

5 © Galenica Group

CEO VIFOR Pharma Søren Tulstrup

CEO GALENICA Santé Jörg Kneubühler

Deputy CEO VIFOR Pharma Gianni Zampieri

Logistics / HealthCare Information Jean-Claude Clémençon

Retail Felix Burkhard

GALENICA Executive Chairman Etienne Jornod

GALENICA GROUP CORPORATE TIMELINE

1994 2015 1996 2000 2001 2004 2009 2008 2013

VIFO

R P

harm

a G

ALE

NIC

A Sa

nté

Cor

pora

te GALENICA is floated on the

Swiss Stock Exchange New strategy based on a vision of turning the company into a player engaged in the entire drug value chain in Switzerland

Expansion of distribution activities Acquisition of Galexis and Amidro

1997: Acquisition of Laboratoire Golaz (OTC)

1997 1999

Partnership with Alliance Boots Partnership is based on a contract that runs to this day

Beginning of international expansion in the area of iron replacement Products redesigned / positioned as Venofer and Maltofer

FDA approval of Injectafer FDA approval for Velphoro

2007 2014

2001: Venofer is approved by the FDA 2004: Creation of VIFOR Pharma

2008: Acquisition of Aspreva Phamaceuticals 2009: Acquisition of OM pharma 2010: Creation of VIFOR-FMC Renal Pharma

1999: Acquisition of Medichemie (phythotherapy and gastroenterology)

Acquisition of MediService International expansion with Venofer and Maltofer Launch of Ferinject

Creation of Galenicare

Acquisition of Sun Store pharmacy chain

2005

The pharmacies of Galenicare appear under a new brand: Amavita

Acquisition of Medifilm Acquisition of a 49% stake in Bahnhof Apotheke Zurich

Velphoro receives EU marketing authorisation

GALENICA lays foundation for two listed independent companies with new management structure

2010

6 © Galenica Group

VIFOR PHARMA OVERVIEW

Strategic projects 1. Vifor Fresenius Medical Care Renal Pharma: Global Leader 2. Ferinject® : Approved in 63 countries, launched in 54 countries

3. Injectafer®: approved (FDA July 2013) and launched in USA 4. Velphoro® : Launched in USA in March 2014 / Approved in EU, Switzerland,

Australia & Singapore. Velphoro® is now approved in 36 countries. 5. Tecfidera ®: toll manufacturing contract with Biogen (since 2013)

6. Strengthen network of subsidiaries: overall completed

7 © Galenica Group

8

VIFOR PHARMA SUMMARY SUMMARY OF MARKETED PRODUCTS

OTC(1)

VIFOR PHARMA

Iron Franchise

Infectious Disease /

OTX(1)

Perskindol Anti-Brumm

OTC portfolio to be separated from VIFOR Pharma and merged with GALENICA Santé by mid-2015

Algifor Triofan Equazen Eye Q

(1) Select key products only.

Iron replacement products for the treatment of ID and an iron-based phosphate binder

Diversified portfolio of prescribed non-prescription medicines

Portfolio of OTC products (analgesics, cough & cold)

188

15

51

127

Product 2014 Net Sales

(CHFm) Indication Partners (Region)

Ferinject / Injectafer

Velphoro

Venofer

Maltofer

OTX

ID (general) Anaemia in CKD (dialysis) Anaemia in CKD (non-dialysis) Cardiology Gastroenterology Chemotherapy-induced anaemia

FMC (dialysis) Hikma (MENA) Luitpold (N.A.) Zeria (Japan)

FMC (dialysis) Kissei (Japan)

Hyperphosphataemia

FMC (dialysis) JW Group (S.Korea) Luitpold (N.A.) UCB (China)

ID (general) Anaemia in CKD (dialysis) Anaemia in CKD (non-dialysis)

China Medical System (China)

Abdi Ibrahim (Turkey)

Iron-deficiency anaemia Mineral deficiency

Sandoz (China, Russia, CIS) Takeda (Italy, Brasil)

Infectious diseases / OTX franchise (e.g. respiratory/urinary infections)

Growth products

Consumer Health

89 OTC products (e.g. cough &

cold, analgesics, pain killer…)

2/3 in Switzerland

113

8 © Galenica Group

IRON FUNCTION BODY DISTRIBUTION AND BALANCE

9 © Galenica Group

Eisenmangelanämie

Normal Iron deficiency Iron deficiency anemia

Iron store (Ferritin) Iron transporter (Transferrin) Red Blood cells (Hb value)

< 30 µg/ml

< 20%

♀ ≥ 12 g/dl ♂ ≥ 13 g/dl

< 15 µg/ml

< 20%

< 12 and 13 g/dl

_ In the event of inflammation, iron stores are blocked and cannot be transported anymore (functional iron deficiency)

20%-40%

Normal

> 30 µg/ml

Iron body store in adult ~2-4g Role of iron in the body:

1. Transportation of oxygen => Metabolic energy

2. Catalyst for the production of red blood cells (lifespan of 120 days => iron recycling is vital)

VIFOR PHARMA GLOBAL MARKET LEADER IN ORAL AND I.V. IRON

OUTSIDE DIALYSIS

Ferinject®: >2.2 m patients per year

Venofer®: >16m patients per year

34% VIFOR

Pharma

Global Iron CHF 2,365m

64% VIFOR

Pharma

11% VIFOR

Pharma

Intravenous Iron Oral Iron

IRON FRANCHISE PRODUCTS GLOBAL IRON MARKET (2014)

CHF 1,043m CHF 1,322m

Dialysis & Hospital Chronic Use

Paediatric / Pregnancy

10 © Galenica Group

MARKETED PRODUCTS FERINJECT VS OTHER IV IRON DRUGS

NBbrs Admin

Admin time in min (standard for 1,000mg)

Savings of €90-110 per 1,000mg per patient €430

Ferrlecit®

16x

320

€413

Cosmofer®

1x

352

€410

Venofer®

5x

161

€320

Ferinject®

1x

15

Admin costs(1) p/1,000 mg

Costs of IV iron p/1,000mg

Higher-generation IV products provide real cost savings with a significant reduction in admin time

Source: Szucs et al 2009, University of Zurich, ASH HE. (1) Costs converted into € based on CHF/EUR FX rate of 1.3.

Therapeutics Areas

Required Average Iron

Need (mg)

Infusions prior to

Ferinject®

Infusions with

Ferinject®

ND-CKD 1,200 – 1,800 6 – 28 2

Cardiology 1,500 6 – 18 2

Oncology 750 – 1,200 4 – 19 1 – 2

Gastro 1,450 8 – 23 2

PBM* / Surgery > 1,000 5 – 16 1 – 2

Ob/Gyn 960 – 1,500 5 – 24 1 – 2

* Patient Blood Management


FERINJECT® / INJECTAFER® EFFICIENT, CONVENIENT AND COST EFFECTIVE

Patients treated: >2.2 million First, high-dose, non-dextran i.v. iron − Ferinject® : Single dose up to 1,000mg − Injectafer ®: Single dose up to 750mg − Short application time:

• 200mg in fast push injection • 1,000mg / 750mg (USA) in 15-minute infusion/injection

Total repletion in few visits Lower medical care costs − Worldwide clinical trials have established a large base of clinical evidence − Approved in 64 countries, launched in 56 countries − FDA approval for the treatment of iron deficiency anemia (25 July 2013)


Net sales 2014: CHF 188M (+19%)

IMS sales 2014: CHF 265M (+42%)

INJECTAFER® US LAUNCH UPDATE − Injectafer building momentum in US market

• Temporary Reimbursement Q code effective July 2014, loaded in CMS listing in October 2014; Permanent J code effective January 2015

• Strong commercial insurance coverage - 98% of covered lives • Luitpold initial focus in Hematology Infusion Clinic setting • Full program of promotional, reimbursement and medical education support • Customer and patient feedback has been very positive

− Strong relationship and collaboration in place: • Luitpold Pharmaceuticals benefiting from VIFOR Pharma launch experience

in EU countries • Close coordination across functions • Joint funding of few key initiatives

− Launch in Gastro planned April 2015 (Sales rep. launch event held)


VENOFER® VENOFER® AND IRON SUCROSE SIMILARS (ISS) − Positioning of Venofer® as drug of choice in HD with a

distinct safety and efficacy profile compared to ISS preparations − In addition to clinical data on differences in efficacy,

new clinical observation reports increased adverse event rate of ISS − Major authorities recognize the complexity of the product and discuss the limitation of the

approval of ISS preparations through the generic pathway


ROTTEMBOURG STUDY DEMONSTRATES SUPERIORITY OF VENOFER®

− Patients with anemia and iron deficiency treated successfully with erythropoiesis-stimulating agents (ESA) and Venofer® switched to FerMylan®

− Outcome to regain control of hemoglobin: + 35% i.v. iron, + 12% ESA, + 12% costs − A recent study conducted in Spain confirmed the Rottembourg study: «The treatment with

generic i.v. iron needs a higher dose of iron and ESA to keep hemoglobin stable». LEE STUDY SHOWS A SIGNIFICANT INCREASE OF ADVERSE EVENTS WITH ISS − Retrospective analysis of gynecological patients treated in a single South Korean site over

a period of four years with i.v. iron − Increased adverse events rates observed in patients treated with ISS vs Venofer®

− As a result of safety concerns, the use of ISS was abandoned

Net sales 2014: CHF 113M (-12%)

I.V. IRON MARKET LARGE POTENTIAL GROWTH OUTSIDE DIALYSIS


Worldwide market Swiss market

44%

31%

10%

2% 2% 2%

4% 5%

Gynaecology

Internal Medicine

Nephrology

Cardiology

Oncology/Hematology

Geriatry

Gastroenterology

Other TAs

70% 30%

Nephrology segment

70% of the worldwide i.v. market is in Nephrology (CKD 3-5) vs 10% in Switzerland 2014 Swiss Sales in i.v. iron amounted to CHF 49 million Still large potential in Switzerland in women’s health (fatigue) & elderly people New therapeutic areas (TAs) are still unexplored: RLS, elderly people

VIFOR PHARMA SWITZERLAND VENOFER® AND FERINJECT SALES HISTORY


0

10

20

30

40

50

60

01 06 11 04 09 02 07 12 05 10 03 08 01 06 11 04 09 02 07 12 05 10 03 08 01 06 11 04 09 02 07 12 05 10 03 08 01 06 11 04 09 02 07 12

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Milli

on CH

F Ferinject

Venofer

Source: MIK / Hyperion

MAT 12/2014 49 Mio. CHF

Patients Therapeutic Area Patients eligible for i.v. iron treatment

Wom

en

elde

rly p

eopl

e

(chr

onic

) dis

ease

I.V. IRON MARKET LARGE POTENTIAL IN NEW THERAPEUTIC AREAS

0 20'000 40'000 60'000 80'000 100'000

Neurology (Restless Legs Syndrome)

Inflammatory Bowel Disease

Dialysis

Chemotherapy Induced Anaemia

Other chronic disease

Chronic Kidney Disease (non-dialysis)

Chronic Heart Failure

Patient Blood Management

Heavy Menstrual Bleeding / Fatigue

Obstetrics (Pregnancy / Post-partum)

Patients treated with i.v. iron

Patients not treated with i.v. iron


EUROPEAN I.V. IRON MARKET

18 © Galenica Group Source IMS

Venofer

Ferinject

ISS Pharmacosmos

EUROPEAN I.V. IRON MARKET (SALES) EUROPEAN I.V. IRON MARKET SHARE (VALUE)

The European market represents 1/3 of the worldwide i.v. iron market Vifor Pharma has kept 3/4 market share in a market that doubled since 2008 Market growth driven by Ferinject® (mostly outside dialysis)

(CHFm)

39 63

88 134

170 189 98 89

81

67

58 56

17 27

24

27

27 29

18

18 16

15

15 13

9

9 8

12

17 19

183

207 220

258

289 308

-

50

100

150

200

250

300

2009 2010 2011 2012 2013 2014

Ferinject Venofer ISS Gluconate Pharmacosmos Other

21%

30%

40%

52%

59% 61%

54%

43%

37% 26%

20% 18%

9% 13%

11% 10% 9% 9%

4% 6%

2009 2010 2011 2012 2013 2014

NORTH AMERICAN I.V. IRON MARKET

19 © Galenica Group Source IMS

Venofer

Feraheme

Gluconate

The North American market represents >50% of the worldwide i.v. iron market Venofer® leads the USA iron market with ~60% market share The USA market is mostly a «Nephrology» market, leaving significant opportunities for Injectafer® in

other therapeutic areas (TAs)

USA I.V. IRON MARKET (SALES) USA I.V. IRON MARKET SHARE (VALUE)

Injectafer

(CHFm)

50

391 442 418

329 296 313

115 72

65

63 55

52

60 54

57 74

92

31 37

36

39 44

39

565 611

573

488 471

546

-

100

200

300

400

500

600

700

2009 2010 2011 2012 2013 2014Injectafer Venofer Gluconate Feraheme Other

9%

69% 72% 73%

67% 63%

57%

20%

12% 11% 13%

12% 9% 10% 9%

12%

16% 17%

2009 2010 2011 2012 2013 2014

WORLD I.V. IRON MARKET

20 © Galenica Group Source: IMS

Venofer

Ferinject

ISS

Feraheme

Vifor Pharma owns 2/3 of the worldwide i.v. iron market with 64% market share (66% USA, 76% Europe)

Venofer® remains the «gold» standard product in dialysis patients Ferinject® offers significant opportunities outside dialysis (higher dosing / faster infusion time)

WORLD I.V. IRON MARKET (SALES) WORLD I.V. IRON MARKET SHARE (VALUE)

(CHFm)

Gluconate 43 63 88 136 179

256

527 567 537 438 399

416

47 68 74

90 101

118 135

91 83 79 71

66 61 54 57 74

93

54 65 69 79 90

93

834 915 905 879 914

1'043

-

200

400

600

800

1'000

2009 2010 2011 2012 2013 2014

Ferinject Venofer ISS Gluconate Feraheme Other

5% 7% 10%

15% 20%

25%

63% 62% 59%

50%

44% 40%

11%

16%

10%

6% 9%

2009 2010 2011 2012 2013 2014

FERINJECT® GROWTH REQUIRES TOP DOWN EDUCATION OF TARGET GROUPS

Patients

Physicians

Medical staff

Advisory Boards

Education on Iron Therapy

International Congresses

Iron Working Groups

Sales Representatives

Publications

PR-Campaign

Post-marketing Surveillance Study

Infusion Training

Patient-brochure

KOLs


MAY

FERINJECT® MEETINGS / CONGRESSES PRESENCE IN 2015

MAR APR JAN JULY AUG OCT NOV

ERA-EDTA London Booth & Symposium

ECCO Barcelona Booth

FEB JUNE

EHA Vienna Booth & Symposium

SEPT

HFA Sevilla Booth

Gastroenterology Cardiology Oncology Nephrology


EORTC Madrid Country Dinner

ESC London Booth & Symposium

Hematology

European Academy Paris

ASN San Diego Booth & Symposium

Galenica event Iron Academy

Swiss Academy Zurich/Lausanne

Swiss Academy Lugano

23

PIPELINE & R&D CAPABILITIES MAIN CLINICAL STUDIES FOR KEY BRANDS

CONFIRM-HF: Delivered excellent results in Congestive Heart Failure (CHF) – Primary endpoint: Change in 6-min-walk-test (6MWT) distance from baseline to Week 24 – Improvement in disease severity (NYHA classification) – Sustainable improvement in: Exercise capacity, symptoms, quality of life – Reduction of 61% of re-hospitalization due to worsening heart failure (leading to cost-savings)

EFFECT-HF: Objective endpoint measurement in 2015 – Open-label RCT comparing Ferinject with usual care in c.168 subjects with CHF NYHA Class 2-3 and

iron deficiency over a period of 24 weeks – Primary endpoint: Change in exercise capacity (peak VO2) from baseline to Week 24.

FER-ASAP: Expansion into Women’s Health therapeutic areas – Open-label RCT comparing Ferinject with oral iron in 252 pregnant women between second and third

trimester with iron deficiency anaemia

Paediatric trial to fulfill our regulatory commitment

Two non-interventional studies to assess adherence

Expansion into China and LATAM


24

Randomized Studies N=38

Observational "Real World

Studies" N=17

Cardio

Surgery

WH

Onco

Nephro

Gastro

ID

Neuro

Pediatric

Rheuma

Diabetes

VIFOR PHARMA SUPPORTS PHASE 4 STUDIES WITH FERINJECT®

Current Focus Areas (91%)

New Areas (9%)

Scientific interest continues to be strong


STRATEGIC PARTNERSHIPS STRUCTURE, SCOPE & OBJECTIVES

Minority profits (45% of JV net profit)

VIFOR

VIFOR-FMC Renal Pharma

Venofer and Ferinject in CKD Velphoro(1)

Payment for minority stake 45% stake 55% stake

100% consolidated

Distribution partners incl. FMC

(1) Velphoro IP rights owned by VIFOR-FMC Renal Pharma.

JV STRUCTURE KEY OBJECTIVES

Allows VIFOR Pharma focus “scope for growth” strategy on Ferinject® outside the field of nephrology

Access to FMC’s large pool of patients (over 280k dialysis patients worldwide)

Maximizes sales forces synergies between VIFOR Pharma and Fresenius

Optimizes commercial success of Velphoro® through access to patients and a single field force that has a

complete nephrology portfolio

Potential to build a world-leading nephrology specialty care pharma company

Most importantly, patients benefit most from faster access to high-quality care

SCOPE OF OPERATIONS

JV holds the global nephrology commercialisation rights to Ferinject, Venofer and Velphoro (1)

Development and commercialisation of Ferinject in indications outside of dialysis and pre-dialysis remains the responsibility of VIFOR


VIFOR PHARMA INTERNATIONAL ORGANISATION WELL ESTABLISHED GLOBAL INFRASTRUCTURE


Manufacturing – 6 sites Switzerland – 4 sites Portugal – 1 site United Kingdom – 1 site

Vifor Pharma / OM Pharma - 14 Affiliates Austria Belgium France Germany

Netherlands

Romania

Spain Sweden Switzerland United Kingdom

Peru Portugal

Singapore

Italy

Vifor Pharma - 6 Offices Argentina

Canada Russia

United States

Australia

United Arab Emirates Countries managed by Vifor Pharma Affiliates

Countries managed with Partners

27

MARKETING & COMMERCIAL ORGANISATION VIFOR PHARMA GLOBAL NETWORK

Note: CEE: Central & Eastern Europe, CIS: Russian Commonwealth.

Other Partnerships: Roche: Collaboration to explore the clinical use of CellCept outside of transplantation Helsinn Healthcare: Entered into an exclusive license and distribution agreement for Helsinn’s nepupitant-palonosetron fixed dose combination since 2013

Mexico, Brazil, Argentina, South Africa

Nephrology Global Russia, CIS

Russia, CEE, CIS, China, Poland

MENA

Russia

China


28

VELPHORO® A CLEAR VALUE PROPOSITION

− Velphoro® is a calcium-free iron-based phosphate binder offering safety, efficacy, simplicity and high acceptance

− Velphoro® clinical data fully support an attractive target profile: effective with low pill burden (3.3 pills per day after 52 weeks)

− Velphoro® is approved in 36 markets, launched in 5 markets (US, Germany, UK, Portugal, Denmark) and 14 more approvals expected in 2015

− Velphoro® in US: Prescriptions and sales reflect expectations, Negotiations with healthplans on track, Patient Access programs in place

Net sales 2014: CHF 15M

Patients who require fewer pills show improved compliance

Improved compliance Improved outcomes Fewer pills

Formulation allows for phosphorus control with fewer pills

Better compliance offers improved outcomes


29

VELPHORO® IS DIFFERENTIATED… … SAFETY, EFFICACY, HIGH ACCEPTANCE

! SAFETY – Non-calcium iron based – No risk of iron accumulation – No interaction with oral vitamin D EFFICACY & SIMPLICITY – 1 tablet per meal HIGH ACCEPTANCE – Good chewability & pleasant taste – Quickly disintegrated

vs. Fosrenol vs. Renvela vs. Auryxia

! ! 29 © Galenica Group

INFECTIOUS DISEASES/OTX LEADING PRODUCTS IN EMERGING MARKETS


− Respiratory immuno enhancer − #1 Broncho-Vaxom® marketed in 65 countries

− Micro-vascular complications − Doxium® presence in 47 countries worldwide

− Antihemorragic − Worldwide presence in 42 countries

− Urinary immuno enhancer − Marketed in 56 countries worldwide

Net sales 2014: CHF 126.7M

VIFOR PHARMA OTC No. 3 IN SWITZERLAND

− 4 leading products (listed in Top 10 Swiss OTC products): Perskindol® +12.6%, Triofan® +8.7%

− Continuous optimisation and expansion of portfolio:

− Cooperation with Retail: Medical Training: 3x higher sales in the pharmacies that took part! Growth in sales outperformed the market

Perskindol® Algifor® Triofan® Anti-Brumm®


Sales 2014 CHF 59.6M

(in Switzerland)

GALENICA SANTÉ OVERVIEW

Strategic projects 1. Integrate Consumer Health by mid-2015

2. Retail: improvement on processes, back office, efficiency and performance

3. Logistics: strengthen and broaden our offering to customers


33

GALENICA SANTE SUMMARY POSITIONING IN CORE MARKETS

SANTÉ #1 POSITIONING IN CORE MARKETS

Ret

ail M

arke

t W

hole

sale

Mar

ket

Market Share: ~55% 30% 10%

GALENICA

Market Leader +6000 customers

Acquired by Phoenix in 2007

Covers German-speaking areas of

Switzerland

# of pharmacies, as of 2014, total = 1,757

312

179

1518274985

4916.0x # of pharmacies

(1)

(1) 312 own pharmacies (Amavita and Sun Store) and 179 independent partners (under Winconcept partnerships).

Pill

Pha

rmac

ies

& D

rugs

tore

s

Pha

rmac

ies

Pop

ulai

res

Gen

éve

Topw

ell

Dr.

Bäh

ler

Dro

pa

BE

NU

(P

hoen

ix)

GA

LEN

ICA

GALENICA SANTÉ

HCI & Others

Retail

Wholesale & Pre-

Wholesale

Network of own and partners’ pharmacy chain

Network on pharmaceutical products and laboratory equipment wholesale suppliers and pre-wholesalers across Switzerland

Handling of the purchase, sale, warehousing and distribution of products for third parties

Technology solutions, databases and management solutions development for the networked healthcare market


34

GALENICA SANTÉ SWISS RETAIL & WHOLESALE OPPORTUNITIES

MARKET Expand and

strengthen the position

EFFICIENCY To be improved

SYNERGIES More targeted use of complementary

strengths

New services and products offerings

Increasing market share of GALENICA Santé products

Exploit potential synergies along the value chain

Reduce inventories Process simplification Increase purchasing

power of GALENICA Santé

Focus on capacity increases and efficiency gains

Optimise support process

Promote leadership and entrepreneurial spirit

OBJECTIVES


35

GALENICA SANTÉ RETAIL – NO. 1 IN SWITZERLAND

PHARMACIES AND REVENUE PER PHARMACIES

> 100,000 customers daily Network: No. 1 with 491 pharmacies in the best locations MediService: No. 1 as Specialty Pharmacy GALENICA Santé synergies (project LoRe, Coaxial,

Medifilm, etc.) Objective of 500 pharmacies

312

Ow

n ph

arm

acie

s

179

Phar

mac

ies

part

ners

146 104 61 1

OVERVIEW OF RETAIL DIVISION

161 6 12

Total number of pharmacies in Switzerland: 1,757


(CHFm)

54%

32%

63%

46%

68%

37%

0

1

2

3

4

5

0%

20%

40%

60%

80%

100%

Amavita Sun Store Swiss Market

Rx part Non Rx part Average Revenue / Pharmacy

Amavita / Sun Store Average Revenue Pharmacy (2014): CHF4.1m per pharmacy

36

GALENICA SANTÉ WHOLESALE & PRE-WHOLESALE BUSINESS

LOGISTIC NETWORK OVERVIEW OF DIVISIONS

Lausanne - 8‘200 m2 storage space - 900 containers/hr. - 30‘000 lines/day - 40 delivery vehicles - 190 employees

Niederbipp - 21‘000 m2 storage space - 2‘800 containers/hr. - 100‘000 lines/day - 70 delivery vehicles - 500 employees

Who

lesa

le

Pre-

Who

lesa

le

1,000 Pharmacies

4,000 Doctor Practices

450 Drugstores

580 Hospitals/ Aged Care

Over 1,100 suppliers 80,000 products, 42,000 always in stock including

Pharmaceutical, non-pharmaceutical, practice laboratory equipment, and medical equipment

Over 6,000 customers

Serv

ice

Largest Swiss pre-wholesaler, offers specialised logistics services with distribution centre in Burgdorf

14,000 products in stock 80 partners

Handles and coordinates the purchase, sale, warehousing and distribution of products for third parties

Neuenberg

Lausanne-Ecubiens

Genf Sitten

Barbengo-Lugano

Chur Luzern Bern

Niederbipp

Basel

Zurich

Burgdorf

Wholesale

Pre-wholesale


37

GALENICA SANTÉ OVERVIEW HEALTHCARE INFORMATION

Provides technology solutions for the GALENICA Santé market

Maintains databases and develops management solutions tailored specifically to the needs of the networked healthcare market

Activities consist of content management (Documed and e-mediat) and IT systems (TriaMed and TriaPharm)

Overall strategy is to further develop service offering to support the “eHealth Switzerland strategy”, which was defined by the Swiss federal and cantonal governments and aims to introduce electronic patient filing across the whole country by 2015

SERVICES AND PRODUCT PORTFOLIO OVERVIEW OF HEALTHCARE INFORMATION DIVISION

Digital editions of Swiss drug compendium (online and smartphone app)

Master database for all stakeholders in Swiss health market

Our software solutions TriaMed® and TriaPharm®

− about 1,300 doctors offices

− about 260 pharmacies Sun Store and Amavita


FINANCIALS


GALENICA GROUP KEY FINANCIALS


in million CHF 2013 2013 (L4L) 2014 ∆ % L4L

Net Sales – Vifor Pharma 662.7 662.7 706.2 +6.6%

Net Sales – Galenica Santé 2,765.9 2,765.9 2,781.9 +0.6%

Net Sales – Galenica Group 3,359.4 3,359.4 3,416.2 +1.7%

Other operating income 304.7 304.7 254.7 -16.4%

Operating revenue 3,664.1 3,664.1 3,671.0 +0.2%

COGS -2,179.4 -2,179.4 -2,185.4 -0.3%

OPEX -1,018.6 -1,041.7 -1,038.7 +0.3%

EBITDA 466.2 443.1 446.7 +0.8%

EBIT 390.6 367.5 370.2 +0.7%

ROS (%) 11.6% 10.9% 10.8%

Net Profit (before minorities) 334.8 296.2 312.0 +5.3%

Net Profit (after minorities) 296.2 257.6 284.5 +10.4%

EPS (in CHF) 45.7 39.8 43.9 +10.3%

1)

1) 2013 incl. IAS 19 cost reduction of CHF 23.1mio

GALENICA GROUP Net profit after minorities: +10.4% on a comparable basis

+0.8%

+3.9% 428.0 443.1 446.8

23.1466.2

446.8

2012 2013 2014

EBITDA

IAS19

in million CHF

+3.5%

+8.9%

+0.8%

-4.2%

352.0 367.5 370.2

23.1390.6

370.2

2012 2013 2014

EBIT in million CHF

+4.4%

+11.0%

IAS19

+0.7%

-5.2%

276.5 296.2 312.0

38.6334.8

312.0

2012 2013 2014

Net Profit before minorities

+7.2%

+21.1%

IAS19 & CRA

in million CHF

+5.3%

-6.8%


255.1 257.6 284.5

38.6296.2

284.5

2012 2013 2014

Net Profit after minorities

IAS19 & CRA

in million CHF

+1.0%

+16.1%

+10.4%

-4.0%


VIFOR PHARMA Net sales: +6.6%, R&D: 98.1 million

633 663 706

271 253 206

2012 2013 2014

291.7 304.7 301.0

257.1 269.3 265.0

0

300

600

2012 2013 2014

in million CHF

ROS1) 28.4% 29.6%

+4.8% -1.6%

29.2%

+4.5% -1.2%

1) EBIT in % net sales & other operating income

+4.6% +6.6%

Other Revenue

Net sales

Total other revenue

(-18) (-47)

in million CHF

EBITDA EBIT

GALENICA SANTE Solid ROS performance

136.0 139.2 143.3

94.9 99.3 102.9

0

150

300

2012 2013 2014

Galenica Santé in million CHF

ROS 3.5% 3.6% 3.7%

+2.4%

+4.6%

+2.9%

+3.6%

81.0 85.1 88.5

60.3 63.0 65.0

0

75

150

2012 2013 2014

Retail

ROS

in million CHF

+4.5%

+5.0% +4.0%

+3.2%

5.1% 5.1% 5.2%

46.3 46.6 46.8

30.7 31.1 31.4

0

50

100

2012 2013 2014

Logistics

ROS

in million CHF

1.5% 1.5% 1.5%

+0.5%

+1.3%

+0.5%

+1.0%


10.78.2 8.4

4.3 4.0 5.00

10

20

2012 2013 2014

HealthCare Information

ROS

in million CHF

9.1% 10.2%

-23.0%

+23.9%

+3.0%

13.0%

-5.7%

EBITDA EBIT

GALENICA GROUP FREE CASH FLOW & INVESTMENTS


In million CHF Actual 2012

Actual 2013

Actual 2014

Cash flow from operating activities 291.7 329.0 355.8

+ Proceeds from property, plant and equipment, investment properties, intangible assets, , financial assets and securities 26.0 12.7 12.9

- Investments in property, plant and equipment, investment properties and intangible assets -51.8 -71.6 -69.9

- Investments in financial assets, associates & subsidiaries -19.9 -49.4 -100.6

Free Cash Flow 246.1 220.7 198.2

46.057.3 60.0

7.5

14.4 10.153.5

71.7 70.0

0

50

100

2012 2013 2014

in million CHF Investment

Investment tangible assets Investment intangible assets

GALENICA GROUP BALANCE SHEET – KEY FIGURES


in million CHF / % Actual 2012

Actual 2013

Actual 2014

Interest coverage 10.8 14.9 17.1

Debt coverage 1.3 0.9 0.8

Gearing 42.0% 28.1% 19.5%

Operating net working capital 500 521 536

% of Total liabilities and shareholders' equity

1) trade accounts receivable + inventories ./. trade accounts payable

1)

1'3321'555 1'750

559 437 341

0

1'500

3'000

2012 2013 2014

in million CHF

Net debt

Equity

42%

18% 14% 11%

51% 55%

CONTACT INFORMATION

Jörg Kneubühler CFO Galenica Group & CEO Galenica Santé Tel.: +41 58 852 81 11 Mail: [email protected]

Søren Tulstrup CEO Vifor Pharma Tel.: +41 58 851 80 87 Mail: [email protected]

Investor Relations: Media: Julien Vignot Christina Hertig Head Investor Relations Head Corporate Communication Tel.: +41 58 852 85 29 Tel.: +41 58 852 85 17 Mail: [email protected] Mail: [email protected]


mailto:[email protected]




DISCLAIMER


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.

19 years after one group, two different … years after... ...one group, two different strategies...

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