Introduction to DOC GenericiJefferies Conference

November 14-15, 2018

DOC sell company branded generics in the retail segment of the Italian pharma market

INTRODUCTION TO DOC GENERICI

• The generics market in Italy

• DOC Generici: Leading Independent player

1,1%

2,5%3,4%

4,1%

5,9%6,9%

8,0%

9,6%10,3%

12,1%

13,6%

16,0%

17,7%18,9%

19,8%20,6%

21,5%22,3%

0,7% 1,4% 1,8% 2,1%3,1% 3,5%

4,7%5,6% 5,4%

6,0%6,8%

8,1%9,3%

10,3%

11,1%11,5%

12,4% 13,7%

23,2%

25,3%

26,3%27,4%

28,4% 29,4%30,1%

0%

5%

10%

15%

20%

25%

30%

35%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD Sep18

Generics: Market Share units %

Generics: Market Share Ex-Factory sales %

Generics: Market Share Off Patent MKT %

Note: Retail market. Source: IQVIA Sell-in

GENERICS: 22,3% PENETRATION OF ITALIAN RETAIL PHARMA MARKET IN 2018

Average penetration in Europe: 55%

Size of the market anddouble digit growth hasattracted the top genericsplayers worldwide;

Teva, Mylan, Doc, Stada andSandoz represent 87% of themarket in Italy and themarket has been historicallyhighly concentrated withthese top five playerscontrolling over 86% in thelast five years

More than 10 playersaccount for the remaining13% of the market and ofthese no company has morethan 4.5% market share, aresult of limitedopportunities for smallerplayers to grow organically

25,5%

22,7%

22,1%21,8%

21,1%

20,5% 20,6%

21,5% 21,5%

17,5%

19,4% 19,3% 19,3%

20,1% 19,9%20,1% 20,0%

19,2%

14,4% 15,1%15,3% 15,3% 15,3% 15,2% 15,1% 15,1%

15,9%

14,5% 14,5% 14,5% 14,7% 14,8% 14,8% 14,6% 14,8%15,7%

14,4%14,2%

14,4%15,0%

15,0%14,5% 14,3% 14,2% 14,2%

12%

14%

16%

18%

20%

22%

24%

26%

2010 2011 2012 2013 2014 2015 2016 2017 YTDSep2018

Teva Mylan DOC Generici EG (Stada) Sandoz

Market shares of top 5 players in the Italian generics retail marketCommentary

HIGHLY CONCENTRADED MARKET: TOP 5 PLAYERS WITH87 % OF MARKET SHARE

Regulatory Area Overview

No discounts to pharmacies on reimbursed products

In 2009 deregulated discounts to pharmacies were banned and replaced by a fixed 8%discount

Key success factors: market presence, brand awareness, customer service, timely launch ofproducts and efficient sales force

Prices One-to-one negotiations with AIFA (generic price based on the value of the originator)

Price list by product updated monthly: the lowest price then becomes the referencereimbursed price for all the equivalent products

Pharmaceutical Governance

National separated sales budget for public pharmaceutical retail and hospital tenderexpenditure

Each company is assigned a budget based on same growth rate and actual NHS sales ofprevious year

Payback to the NHS is required if national budget exceeded, based on excess of eachcompany’s budget

Outlook Review of the Pharmaceutical Governance with the aim of reducing litigations and ofguaranteeing sustainability

Development of pharmacy chains (10% share within 2021?)

Introduction of reference price by therapeutic class

Review of the reimbursement list

1

2

3

4

REGULATORY ENVIRONMENT

Stakeholder Overview

Pharmacist Obligation to inform patient about generic products, deliverproducts with price aligned to reference price (unlessdoctor/patient oppose it )

8% additional margin vs originators

Medical doctors Obligation for doctors to indicate the INN of the molecule insteadof the brand on the prescriptions for both new chronictreatments and acute diseases

Consumer Patient pays the difference between price of originator and itsinterchangeable generic(s)

1

2

3

BEHAVIOUR OF KEY STAKEHOLDERS

INTRODUCTION TO DOC GENERICI

• The generics market in Italy

• DOC Generici: Leading independent player

A branded strategy withprofessional endorsement bydoctors.

A network of European R&Dand manufacturing suppliers(asset light business model).

A high proportion of variableand discretionary costs (morethan 60%, excluding COGS)

DOC: KEY FEATURES OF THE BUSINESS MODEL

DOC: THE LEADING INDEPENDENT GENERIC COMPANY IN ITALY

The only large independentplayer in Italian market

First sales in 2001 from thebirth of the generic market

Acquired by CVC in 2016

Sales Sept 2018 LTM: 202.3 Mio/€ (+13%vs. Sept 2017 LTM)

EBITDA Sept 2018 LTM: 77.5 Mio/€ (+22%vs. Sept 2017 LTM)

EBITDA MARGIN Sept 2018 LTM: 38.3%EBIT MARGIN Sept 2018 LTM: 37.0%

Market Share Sept 2018 YTD: 15.9% (2017:15.1%)

PRE TAX CASH CONVERSION 2012 – 2018:90% on average

ORGANIZATION:• 113 employees• 94 exclusive agents

0,3 4,3

23,129,3 30,5

39,0 39,152,5

59,271,3

98,9

115,5

131,8

156,6162,5167,7171,1

184,0

202,3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sept18

LTM

2022-2024

Net Sales Evolution (2000 –2018), EURm

A STRONG TRACK RECORD OF REVENUE GROWTH

PATENT CLIFF

Prescription by INN

PATENT CLIFF PATENT CLIFF NEW PATENT CLIFF

Ban of commercial discounts

2010-18(Sept LTM)RevenuegrowthCAGR:9,4%

25,3%

33,6%

37,3%35,7%

33,0%

35,9% 35,9% 36,3% 36,4% 36,5%38,3%

21,4%

29,6%

34,8%33,2%

30,7%

34,1% 34,2% 34,6% 35,0% 34,9%

37,0%

EBITDA Margin EBIT Margin

59,6

71,3

98,9

115,6

131,8

156,6162,5

167,7 171,1

184,0

1523,9

36,8 41,1 43,6

56,3 58,4 60,9 62,467,1

77,5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 SeptLTM

Revenue EBITDA

Market Shares (Value)

2013: 15,3%

2014: 15,3%

2015: 15,2%

2016: 15,1%

2017: 15,1%

2018*: 15,9%

EBITDA (Euro/mio) and EBITDA Margin

CONSISTENT HISTORICAL GROWTH

* : 2018 September YTD

202,3

Branded products in Opthalmology (pharmaceuticals,supplements and medical devices)

Dual brand (company branded and branded generics)in the cardio-metabolic area

Interchangeble company branded generics

DOC GENERICI: PLAN

CORE BUSINESS

DIVERSIFICATION

Leading independent player in the Italian company-branded generics market

One of the most recognised generic brands in Italy

Flexible cost structure and asset light business model

Strong financial performance and cash generation

A market leading position

CONCLUSIONS