Fagron Sa · EURONEXT:FAGR
Fagron Sa — Investor Day (April 2025)
86 slides from Fagron Sa's investor day presentation, Apr 10, 2025
Slide 1: Capital Markets Day
Capital Markets Day 10 April 2025 1
Slide 2: Disclaimer
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
Slide 3: Agenda
Agenda Introduction 05 Market Overview 15 Compounding for Growth Plan 2025 – 30 23 Enablers 1 & 2: Operations and Quality 28 Enabler 3: Specialized R&D 38 Enabler 4: M&A 45 Enabler 5: People 51 Breakout Tour EMEA & APAC 60 Latin America 67 North America 73 Wrap up 82 Q&A 3
Slide 4: Today's Speakers
Today’s Speakers Jay McEniry Rafael Padilla Karin de Jong Vera Bakker Sr. VP, Regulatory CEO CFO COO Affairs Céline Caveye Kostas Kouloridas Andrew Pulido Global HR Director Area Leader, EMEA Area Leader, North America 4
Slide 5: Introduction
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Slide 6: Understanding our role across the value chain
Understanding our role across the value chain Doctors Patients Examples of medical & therapeutical applications c. 1.5% total scripts globally Customers Hospitals & clinics Pharmacists Dermatology Wholesale Industry Pediatrics Gynecology Fagron Primary and acute care activities Compounding Brands &
Slide 7: Fagron today: Global leader in personalizing medicine
Fagron today: Global leader in personalizing medicine MSCI ESG rating 4,200+ 87% AAA People globally Employee engagement Present across Vertically entire value chain integrated Scalable Agile Synergistic Global infrastructure supporting Fast adaptation to industry Unified ecosystem across all end-to
Slide 8: A vertically integrated global leader uniquely positioned across three product categories
A vertically integrated global leader uniquely positioned across three product categories Diversified peer group • Global distributor of high-quality pharmaceutical raw materials • Adds value through quality control, cGMP repackaging, and regulatory Ceban Essentials alignment Medisca • Serves thousa
Slide 9: From resilience to leadership: Our journey of strategic growth and evolution
From resilience to leadership: Our journey of strategic growth and evolution REBITDA* development since 2016 in €m Strategic Broadening acquisitions our reach: A for global year of expansion Reinforcing expansion and foundations excellence amidst global challenges Resilience and adaptation amid glob
Slide 10: Operational and strategic delivery in a dynamic environment
Operational and strategic delivery in a dynamic environment CMO St. Paul’s Letco divestment Hiperscan Curaphar Pharma-pack Warning Letter Boston facility Dilucap global (US) (US) (DE) (NL) (BE) (US) (US) launch 2022 Distribution Wildlife Announced 2023 Regulatory Dexamphetamine Parma Produkt Registr
Slide 11: Navigating complexity to deliver positive results
Navigating complexity to deliver positive results Regulation Minimized impact from changes in reimbursement system in Poland through higher volumes and diversified regional footprint EMEA REBITDA margin: FY 2023: 21.5% FY 2024: 21.5% Quality • St Paul’s Warning Letter: Competition Facility closed an
Slide 12: Since our first CMD in 2022…
Since our first CMD in 2022… More progress to come We have Accelerate topline business momentum Delivered revenue growth ahead of guidance Achieve market leadership in key markets, such as US and Germany Strengthened market positioning globally Enter new markets – EMEA white spots and APAC Strong mo
Slide 13: FY 2022 – 24 progress in numbers
FY 2022 – 24 progress in numbers Organic revenue growth CAGR REBITDA margin FY 2024: €872.0m FY 2024: 20.0% (€174.0m) 240.0 220.0 200.0 Average 2022 – 24 REBITDA growth of 13.7% 180.0 Guidance Achieved Regional 160.0 140.0 8.0% 9.1% diversification 120.0 FY 2022 – 26 FY 2022 – 24 and market dynamics
Slide 14: Progress against our Compounding for Growth Plan 2022 – 26
Progress against our Compounding for Growth Plan 2022 – 26 2022 – 26 Target 2022 – 24 Results Organic revenue growth at CER +8.0% CAGR +9.1% EMEA Low-single digit +2.8% Latin America High-single digit +3.6% North America Mid-teens +19.7% 20.0% REBITDA margin 21.6% by 2026 (2024 margin) Operating cas
Slide 15: Market Overview
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Slide 16: Competitive positioning and growth opportunities
Competitive positioning and growth opportunities Current market size: €13.2 billion North America €5.7 billion Latin America €2.0 billion EMEA €3.5 billion APAC €2.0 billion Market position #1 #2 – 4 #5 – 10 in 10 markets in 3 markets in rest markets Market size: According to independent market data
Slide 17: Market size in €m (log scale)
EMEA and Latin America present diversification potential while North America remains the largest market 5120.0 2560.0 NA Market size in €m (log scale) 1280.0 BR 640.0 NL 320.0 160.0 MX 80.0 BE IT DE GB Iberia ZA FR 40.0 PL IL HU CZ Balkans Nordics CH 20.0 AT CO 10.0 10.0% 20.0% 30.0% 40.0% 50.0% 60.
Slide 18: Long-term secular drivers underpin market resilience and growth
Long-term secular drivers underpin market resilience and growth Trends tackled by personalized medicine will drive market growth to ~€18 billion by 2030* Ageing Personalization Prevention Increased Accessibility Population & Regulation Lifestyle *According to independent market data – Vision Researc
Slide 19: Zooming in on Ageing, Personalization and Prevention & Lifestyle
Zooming in on Ageing, Personalization and Prevention & Lifestyle Drivers Ageing population proportion* Ageing population Personalization Prevention & Lifestyle 21.6% 19.1% 17.9% Chronic conditions Dosage forms and Growing health 14.3% strengths awareness 9.6% 7.2% 7.5% 5.7% Pain Genomics Rise of the
Slide 20: Accessibility and Increased regulation
Accessibility and Increased regulation Drivers NL: Medicine shortages 2019 – 24* Increased regulation Accessibility 2,292 Increased cost implication Drug shortages accelerating 1,492 1,480 1,514 1,563 outsourcing trend 1,007 2019 2020 2021 2022 2023 2024 Higher capital investment and compliance chal
Slide 21: Projected growth in the global compounding market by regions
Projected growth in the global compounding market by regions Expected growth of global compounding market* of ~5.1% CAGR over 2024 – 30 €18 billion Market size in 2030 and CAGR 2024 – 30 North America Latin America EMEA APAC €9.0 billion €2.5 billion €4.0 billion €2.5 billion 7.5% 4.0% 2.0% 4.0% *Th
Slide 22: Strategic priorities reflect our ambition to expand global leadership
Strategic priorities reflect our ambition to expand global leadership Together we create the future of personalizing medicine Leading platform for Optimize non-sterile Global leadership Material increase in Sterile Outsourcing compounding & in Essentials Brands revenue share Services registration bu
Slide 23: Compounding for Growth Plan 2025 – 30
Compounding for Growth Plan 2025 – 30 23
Slide 24: Geared towards accelerated growth with improved profitability and high cash conversion
Geared towards accelerated growth with improved profitability and high cash conversion FY 2025 – 30 Key financial targets High single- digit to low c. 21.0% ≥70% 3.5% double-digit ≥50% Organic revenue CAGR at REBITDA margin by 2027. Operating cash conversion* Capex as a percentage of CER Progressive
Slide 25: Revenue growth accelerated by all regions
Revenue growth accelerated by all regions EMEA Latin America North America M&A Stronger overall positioning Low-to-mid teens High single-digit Primarily driven by B&E to low double- digit High-single digit Continued diversification Organic revenue CAGR at CER Mid-single digit (2025 – 30) Compounding
Slide 26: REBITDA margin development pillars
REBITDA margin development pillars c.21.0% Operational excellence 20.0% Specialized R&D Shifting revenue and Competition Operational product mix and macro leverage developments FY 2024 REBITDA margin FY 2027 REBITDA margin 26
Slide 27: Capital allocation policy placed to maximize shareholder value
Capital allocation policy placed to maximize shareholder value 1 2 3 Organic investment M&A Dividend Prioritize high growth & margin accretive Disciplined approach to acquisitions Committed to optimizing shareholder projects returns Focus on small-to-mid-size deals Focus on brownfield investments an
Slide 28: Enablers 1 & 2: Operations & Quality
Enablers 1 & 2: Operations & Quality 28
Slide 29: Quality drives safety and efficacy in line with GMP
Quality drives safety and efficacy in line with GMP Safeguards patient safety Essential for long-term success Key competitive differentiator Ensures compliance with evolving regulatory requirements 29
Slide 30: Strengthening quality and compliance to meet evolving global standards
Strengthening quality and compliance to meet evolving global standards Globally Established an Global Full in-house On-site producer Specification Use of external organizational quality audit quality testing audits by internal harmonization global quality structure guidelines auditors auditors for o
Slide 31: Built for excellence: How we ensure Quality from raw materials to compounding
Built for excellence: How we ensure Quality from raw materials to compounding Raw materials On-site audits and global QIS oversight Full in-house quality control testing cGMP repackaging in state-of-the-art cleanrooms with highest quality standards Compounding Fagron raw materials Manufacturing in c
Slide 32: Status update on the Warning Letter at Wichita
Status update on the Warning Letter at Wichita What is a 503B outsourcing facility and what does a Warning Letter imply? Wichita WL timeline Outsourcing facilities are exempted from new drug approval requirements June 2024 if the conditions of section 503B are met FDA conducted a routine inspection
Slide 33: A globally integrated operation delivering quality, scale, and reliability
A globally integrated operation delivering quality, scale, and reliability Up to 3,500+ 9 1,500+ 25,500+ 118m 10 24 75+ Raw materials Quality specs Vendors SKUs Units sold Regional No. of Regulatory per raw material production Warehouses* bodies sites *No. of Warehouses - EMEA = 17, LatAm = 2, NA =
Slide 34: Focusing on key areas to optimize quality, cost, and innovation
Focusing on key areas to optimize quality, cost, and innovation Product Maintain Highest Competitive Best-in-class Availability Quality Cost Facilities On time & in full Right quality for Purchasing & Enabling growth and each market and channel production great quality Our levers End-to-end Portfoli
Slide 35: Operational excellence progress: 2022 – 24
Operational excellence progress: 2022 – 24 Product availability: Right-first-time improvement: Procurement savings: Professionalization of capex from -3% to +3% projects and value engineering: +5pp +10pp €3.5m savings from 84% to 89% from 79% to 89% Transfer of >2500 SKUs to Centralization of distri
Slide 36: Understanding our organic growth investment profile
Understanding our organic growth investment profile Las Vegas, Nevada Brazil Poland One-offs - Completed Capacity expansion Distribution center automation Capacity expansion and R&D center automation Tampa, Florida Anapolis facility and various Lab equipment Wichita, Kansas Anazao Tampa expansion au
Slide 37: Clear mid-term targets to strengthen growth and profitability
Clear mid-term targets to strengthen growth and profitability FY 2025 – 30 Targets >95% 3% >95% >500m Product availability Procurement Right-first-time Added capacity* savings YoY Upside Downside Quality differentiator Geopolitical developments Better M&A synergies Worker shortages Faster AI adoptio
Slide 38: Enabler 3: Specialized R&D
Enabler 3: Specialized R&D 38
Slide 39: Turning science into solutions with Fagron's leadership in compounding
Turning science into solutions with Fagron’s leadership in compounding Two key drivers for prescribers Fagron uniquely positioned to provide tools and evidence to convince prescribers that compounded products are safe, effective, and of high quality. Quality Science Brands has shown strong revenue g
Slide 40: Fagron Brands go beyond products to drive innovation and quality
Fagron Brands go beyond products to drive innovation and quality What is a Brand? A Fagron Innovative With evidence proving intellectual property solutions safety, quality and efficacy Excipients Ingredients Testing Lab Formulations already Pharmacologically active Offers insights into Compounding e
Slide 41: Fagron reassures on quality and provides evidence on efficacy
Fagron reassures on quality and provides evidence on efficacy High quality preparation Scientific validation Bring industry standards to compounding manufacturing process 1000+ studies supporting clinical use and applications through FagronLab Stability studies & rigorous testing protocols Video pla
Slide 42: Brazil's success story shows how innovation and scale drive growth
Brazil’s success story shows how innovation and scale drive growth Customer focus at its center and collaboration with industry participants… 50+ 8 150+ 1 Brands launched Industry fairs in People in State-of-the-art 2022 – 25 2024 Academy & Sales innovation center Brands sales as % of B&E in Latin A
Slide 43: Building the right structure to support our ambitions
Building the right structure to support our ambitions Global R&D team Our Brands Excipients 12 Formulation FTEs support team Pentravan Film concept SyrSpend FAD (Cleoderm) FagronLab 10 development team FTEs 8 Genomics Ingredients FTEs development team Pipeline: Development on Tricho Concept metaboli
Slide 44: Looking ahead with confidence: Global Brands Strategy
Looking ahead with confidence: Global Brands Strategy Global Brands Strategy One global team Attractive market with Regional acceleration Engage with key opinion cross-selling potential makers & prescribers Key drivers Science-based innovation Stricter regulations Infrastructure Brands revenue to be
Slide 45: Enabler 4: M&A
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Slide 46: Disciplined M&A strategy focused on growth and value creation
Disciplined M&A strategy focused on growth and value creation M&A strategic rationale Financial criterion What we prioritize Market Small- to mid-size targets consolidation Culture & Values Mid- to high-single-digit range of EV/EBITDA multiple Product capabilities Margin accretive at Quality & opera
Slide 47: Strong M&A momentum over the current period
Strong M&A momentum over the current period 2022 2023 2024 2025 B&E Letco CS Wildlife Pharmaceuticals B&E Parma Produkt B&E* Injeplast CS LSP CS CareFirst Disposal of CMO CS Registrations in Benelux B&E EuroOTC B&E Guinama B&E Hiperscan CS Ritedose’s book of business CS CS Curaphar B&E* Purifarma Ph
Slide 48: Acquisitions align to strengthen our market position
Acquisitions align to strengthen our market position Market consolidation Product capabilities Geographical expansion Boston Letco Compounding Purifarma Guinama Injeplast Curaphar Parma Produkt facility Ritedose’s book of Wildlife Integrated Integration process LSP EuroOTC CareFirst Pharma-pack busi
Slide 49: Structured integration process unlocks synergies and maximizes profitability
Structured integration process unlocks synergies and maximizes profitability Classification 0 – 3 months 3 – 6 months 6 – 24 months Critical integration items Culture & organizational change Ensure business continuity: • Finance Optimization: ERP & core business systems • Communications Essential in
Slide 50: M&A a key lever for market leadership and profitability
M&A a key lever for market leadership and profitability (Deep dive into 2022 – 24 transactions) €89m 6x – 9x M&A spend Range of multiple paid >15% 18 – 24 months Average Return on Average integration period Investment 50
Slide 51: Enabler 5: People
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Slide 52: Fagron committed to our people and their engagement
Fagron committed to our people and their engagement Our People Workforce composition Gender Age 4.4% 0.2% ~4200 56.5% 43.3% 25.0% 29.5% People* 41.1% Male Female Other 15-29 30-44 45-59 60+ Regionally Tenure Of which 650+ Of which 270+ people leaders senior leaders 1682 7.9% 1500 7.9% 25.5% 1095 17.
Slide 53: Employee engagement at the center of our people strategy
Employee engagement at the center of our people strategy 92% I believe strongly in goals and 86% I would recommend this 87% Employee Engagement Score objectives of Fagron company as a good place to work 93% Employee participation rate Overall rating 3% above the industry standard Wichita: Best Emplo
Slide 54: Our ESG and people strategy are well connected
Our ESG and people strategy are well connected Employee Diversity & Learning & Wellbeing Compensation Leadership Working Ethics engagement Inclusion Development & Benefits conditions Embedded in ESG All management 95% employees to Zero fatalities Adequate wage for Full implementation Working time Ze
Slide 55: Leadership framework – Overview
Leadership framework – Overview Fagron Future Executive team Leaders Accelerator 4200 Global Employees Rafael Padilla Karin de Jong Vera Bakker development plans CEO CFO COO Comprehensive 650+ 23-years 17-years 3-years People Leaders Kostas Kouloridas Geraldino Neder Andrew Pulido Johan Verlinden 27
Slide 56: Remuneration policy placed to align with stakeholders' interests
Remuneration policy placed to align with stakeholders' interests Remuneration principles LTI criteria Category Relative TSR to relevant midcap indices Alignment with business strategy Organic sales growth CAGR % Financial 80% REBITDA margin Operating Cash flow conversion Alignment with HR strategy E
Slide 57: What's next
What’s next Together we enable our people to become the best version of themselves Leadership development Employee engagement Refined remuneration policy Identification, nurturing, and Fostering a motivated, productive Closer alignment between training of future leaders with clear and committed work
Slide 58: Breakout Tour
personalizi medicine
Slide 59: Regions
Regions 59
Slide 60: EMEA & APAC – Continued diversification
EMEA & APAC – Continued diversification 60
Slide 61: EMEA: Strong regional diversity with improved operational excellence
EMEA: Strong regional diversity with improved operational excellence Brands, 15.4% FY 2022 – 24: Organic growth at CER Compounding Services, 34.6% 1,381 30 € 315.4m Employees Selling countries 4.0% Essentials, 2.2% 2.2% 50.0% 36.2% of FY 2024 Group revenue 2022 2023 2024 #1 8 FY 2022 – 24: Key theme
Slide 62: EMEA: Competitive positioning and market size
EMEA: Competitive positioning and market size Market size Peers: B&E €3.5 billion • Duchefa • Ofichem • Amara • Magis • PharmaChemicals Peers: Compounding Services Fagron brands in EMEA • Inresa • Ace • Le Cooper • Ceban • Caelo • A15 • Galeno • Scheldezoom Farmacie • ACEF Farmalabor • Galvex • Acof
Slide 63: Key trends shaping the industry
Key trends shaping the industry Ready-to-administer medicines Asynchronous care models Proactive health & wellness Hospitals and pharmacies are driving Telemedicine adoption is expanding, Healthcare is shifting upstream, with demand for high-quality ingredients, with patients seeking flexible, remot
Slide 64: Disciplined M&A approach and optimized integration to drive value creation
Disciplined M&A approach and optimized integration to drive value creation EMEA acquisitions: Region specific focus: Focus on countries where we can manufacture personalized medications (both sterile and non- Market consolidation sterile) ourselves Strengthen supply chain security by acquiring Guina
Slide 65: Focus for the mid-term
Focus for the mid-term Achieve market Strengthen Brands Expand Compounding Disciplined M&A leadership across all contribution and impact Services, focusing on strategy markets sterile activities and integrating future trends 2025 – 30 Organic growth at CER CAGR 2025 – 30 REBITDA margin Mid-single di
Slide 66: Becoming a true global player: Entry into APAC
Becoming a true global player: Entry into APAC Asia-Pacific overview Markets prioritized based on economic potential, commercial and legal infrastructure Attractive economic development and “ease of doing business” Demographics Enlarges the benefits of scalability, agility and synergies 4.0% Expandi
Slide 67: Latin America – Boosting innovation and operational power
Latin America – Boosting innovation and operational power 67
Slide 68: Latin America: Strong recovery despite continued competitive environment
Latin America: Strong recovery despite continued competitive environment Brands, 34.5% FY 2022 – 24: Organic growth at CER Compounding Services, 2.4% 10% 9.7% 941 150 € 173.6m Employees Pharmacists 5% Essentials, 2.3% 63.1% 19.9% of FY 2024 Group revenue 0% -1.1% 2022 2023 2024 #1 2 FY 2022 – 24: Ke
Slide 69: Latin America: Competitive positioning and market size
Latin America: Competitive positioning and market size Market size Mexico €2.0 billion • Market position: #2 in B&E • Big industrial market potential for Essentials and Brands Fagron brands in Latin America Main Peers Colombia • Galena • Market position: #1 in CS • Active Caldic • Rapidly growing ma
Slide 70: Key trends shaping the industry
Key trends shaping the industry Innovation Competitive landscape Quality The state-of-the-art innovation center Largest market by volume with highly ANVISA – the regulator in Brazil is has made Brazil the most innovative attractive long-term secular trends for known to have the highest standards reg
Slide 71: Opportunistic M&A and maximizing success by optimized integration
Opportunistic M&A and maximizing success by optimized integration Latin America’s acquisitions Strategic rationale: Injeplast Strategic rationale: Purifarma Market consolidation Global plastic Utilizing advanced Consolidation of packaging producer technology market Signed and awaiting Purifarma comp
Slide 72: Focus for the mid-term
Focus for the mid-term Innovation capabilities Consolidate and Further enhance Integrate acquisitions to drive global Brands increase market share operational capabilities seamlessly strategy 2025 – 30 Organic growth at CER CAGR 2025 – 30 REBITDA margin High-single-digit Remain below group average 7
Slide 73: North America – Continued growth opportunity
North America – Continued growth opportunity 73
Slide 74: North America: Strong growth acceleration supported by strong underlying demand
North America: Strong growth acceleration supported by strong underlying demand Brands, 6.1% FY 2022 – 24: Organic growth at CER Compounding Services, 74.3% Essentials, 19.5% 30.00% 1,441 63 25.5% 25.00% 23.1% € 383.0m Employees Pharmacists 20.00% 15.00% 10.5% 10.00% 5.00% 43.9% of FY 2024 Group rev
Slide 75: North America: Competitive positioning and market size
@Hp to review North America: Competitive positioning and market size Market size Boston, Massachusetts CS - US FSS €5.7 billion Las Vegas, Nevada CS - Anazao New Jersey Wichita, Kansas CS - CareFirst Fagron brands in North America CS - US FSS Main peers: B&E • Medisca • PCCA Decatur, Alabama • Willo
Slide 76: Key trends shaping the industry
Key trends shaping the industry Quality & regulation Telehealth medicine Prevention and lifestyle Rising regulations favor industry leaders AI-driven telehealth is scaling Health and wellness are moving with strong quality credibility personalized care through digital upstream, driving growth in wei
Slide 77: US tariffs implication remains uncertain
US tariffs implication remains uncertain Tariff development Our mitigating levers: Broad tariff introduced by US government on select imported goods Contractual & transactional pass-through: Contracts include price-adjustment clauses Tariffs vary by origin and industry – aimed at protecting US manuf
Slide 78: Key initiatives for mid-term success
Key initiatives for mid-term success 1 2 3 4 5 Quality CS Projects Efficiency B&E Proactively manage Automation and Deliver all major capital Standardize SKUs to Optimize Optimizeour ourmarket market regulatory changes continuous investment plans on- drive scale and position: position: optimizations
Slide 79: Scaling Fagron Brands in North America
Scaling Fagron Brands in North America Strategic priorities Localize high- Expand focus in Equip prescribers with Activate cross-selling performing global dermatology, hormone science-backed through Compounding Brands for US therapy, and wellness training and tools Services and prescribers Essential
Slide 80: Capitalizing on M&A opportunities in the region
Capitalizing on M&A opportunities in the region North America’s acquisitions: Region specific focus: Opportunistic M&A – building capacity has high reward in this region Market consolidation Boston facility from Fresenius Kabi Letco, Ritedose’s book of business, Strategic M&A to become market leader
Slide 81: Focus for the mid-term
Focus for the mid-term Market leader in Maintain highest quality Further enhance Organic growth and Compounding Services & navigate regulatory operational capabilities opportunistic M&A and B&E environment 2025 – 30 Organic growth at CER CAGR 2025 – 30 REBITDA margin Broadly in-line with Low-to-mid
Slide 82: Wrap up
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Slide 83: FY 2025 guidance and Compounding for Growth Plan 2025 – 30
FY 2025 guidance and Compounding for Growth Plan 2025 – 30 FY 2025 Guidance Compounding for Growth Plan 2025 – 30 Mid- to high-single High single-digit to low REBITDA margin of Growth engine digit organic growth at double-digit organic revenue c. 21.0% by 2027 CER at constant FX CAGR Progressive ste
Slide 84: Compounding for growth
Attractive proposition as we enter the next phase of growth Compounding for growth 1 2 3 4 5 6 Solid Highest quality Strong Optimized Right people, Only true execution will drive long- operational and capital values and global player capabilities term success commercial utilization passion strategie
Slide 85: personalizin
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Slide 86: Thank you
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