Galenica Ag · SIX:GALE
Galenica — Investor Presentation (August 2024)
92 slides from Galenica's investor presentation, August 2024
Slide 1: Investor Presentation Galenica Group August 2024
Investor Presentation Galenica Group August 2024
Slide 2: Table of contents
Table of contents About Galenica page 03 Market environment page 35 Business performance page 46 Governance page 64 Sustainability page 75 Outlook page 84 August 2024 2 Investor Presentation Galenica Group
Slide 3: About Galenica
About Galenica
Slide 4: Galenica in figures
Galenica in figures Net sales1 EBIT adjusted1,2 Galenica Group Galenica Group Leading healthcare provider in Switzerland 374 22% own pharmacies 35% CHF CHF Employees 3,746.0 191.3 (Headcount) million million > 7,900 65% 78% Dividend yield1 3.0% Products & Care Logistics & IT Products & Care Logistic
Slide 5: Building the leading Swiss healthcare platform
Building the leading Swiss healthcare platform IPO Joint Venture Creation of Amavita uniform Opening of highly brand in Switzerland automated distribution centre in Niederbipp Acquisition Acquisition Umsatz +10.2% 2000 2002 2005 2007 2008 2009 2013 EBIT 2017 +26.4% Organic and acquisition-led expans
Slide 6: Building the leading Swiss healthcare platform
Building the leading Swiss healthcare platform Acquisition Strategic partnership Acquisition Acquisition Acquisition Acquisition Acquisition Participation 2018 2019 2020 2021 2022 2023 2024 Relaunch Joint Venture Joint Venture Acquisition Acquisition Participation Strategic partnership Strategic par
Slide 7: Switzerland's leading fully integrated healthcare provider
Switzerland‘s leading fully integrated healthcare provider Largest network of Wide range of pharmacies in services for patients Switzerland with over and professional 500 pharmacies, service providers online and offline Well-known brands Leading provider of and products and logistics and IT in the e
Slide 8: The Galenica story
The Galenica story Vision Health and well-being are at the heart of what we do. They are the reason we give our best every day. We build trust. We show respect. Values Together we are stronger. We act as entrepreneurs. We participate with passion. Customer We support people at every stage of life on
Slide 9: Business model
Business model August 2024 9 Investor Presentation Galenica Group
Slide 10: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Omi-Channel programme ESG impact Best customer experience anytime and Patient health, data protection Changing customer anywhere − Customer satisfaction: more efficient needs − Build the required digital infrastructure to and convenient health care improves mo
Slide 11: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Care programme ESG impact First point of contact for healthcare advice Patient health, patient safety Changing customer − First point of contact for healthcare advice in − Better healthcare services: improved needs our pharmacies, digitally and at home availab
Slide 12: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Professionals programme ESG impact First-choice partner for healthcare professionals Patient health, patient safety, Changing customer − We offer specialist retailers and our pharmacies an reliable procurement and supply needs attractive product range and comp
Slide 13: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Efficiency programme ESG impact Simple and efficient for customers, partners IT security and cybercrime and employees − IT security is key for sustainable Digitalisation − We streamline our offerings and organise our business operations company in a way that i
Slide 14: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Transformation programme ESG impact Making employees fit for the future Retention of qualified employees, − By supporting the continuous development employee motivation and of our employees we ensure that they can development Lack of qualified staff perform to
Slide 15: Our business units: Strong on the market
Our business units: Strong on the market
Slide 16: Our business areas
Our business areas Products & Care1 Logistics & IT1 Net sales EBIT2 Net sales EBIT2 1,636m CHF 152m CHF 3,077m CHF 42m CHF Retail B2C Professionals B2B Local Pharmacies Pharmacies at Products & Services for Wholesale Logistics & IT Home Brands Professionals Services Net sales Net sales Net sales Net
Slide 17: Local pharmacies: Three largest pharmacy chains in Switzerland
Local pharmacies: Three largest pharmacy chains in Switzerland Key takeaways Largest branded pharmacy network by number of − Largest pharmacy network offers broad product range, pharmacies in Switzerland1 including well-known own brands, as well as health services and tests 202 − Built organically a
Slide 18: Local pharmacies: Broad range of product and service offerings
Local pharmacies: Broad range of product and service offerings Amavita and Sun Store product offering Service offerings in local pharmacies (selection) in % of sales1 Primary Care Health Checks Prescription medicines of which originals 9% of which generics 19% 38% of which service fees COVID-19 Test
Slide 19: Local pharmacies: Always available where our customers are
Local pharmacies: Always available where our customers are Widely spread pharmacy network covers every Demonstrated M&A track record with an average of 8 Region in Switzerland pharmacies acquired and 4 net pharmacies added per year over the last 5 years 2020 2021 2022 2023 H1 24 Pharmacies acquired
Slide 20: Pharmacies at home: Mail order pharmacies and home care services
Pharmacies at home: Mail order pharmacies and home care services Key takeaways Total Retail Net Sales2 − Business area covers both home care (Bichsel) and Mail-order pharmacies 6% (webshops / Cannaplant) with a share of 6% of Total Retail sales (B2C) CHF − Both Homecare and Mail-order 1,386 pharmaci
Slide 21: Pharmacies at home: Bichsel home care services
Pharmacies at home: Bichsel home care services for over 10,000 active patients across Switzerland Key takeaways − Improve quality of life, e.g. enhanced mobility, continuation in familiar setting − Efficient provision of services compared with in-patient alternatives − Patients from toddlers to the
Slide 22: Pharmacies at home Mediservice: Joint Venture with Redcare Pharmacy N.V.
Pharmacies at home Mediservice: Joint Venture with Redcare Pharmacy N.V. Market Share Mail-order pharmacies1 Market leading online and mail-order1 70% pharmacy in Switzerland The business activities of Mediservice and shop-apotheke.ch are combined in the joint venture: 60% − Mediservice customers co
Slide 23: Products & Brands: Strong brands for the Swiss Consumer Healthcare Market
Products & Brands: Strong brands for the Swiss Consumer Healthcare Market Key takeaways Selected own brands − Leading position1 in the Swiss consumer healthcare market (CHC) − Preferred Consumer Health partner for Swiss Pharmacies & Drugstores − Broad Sales & Training force − Expanding portfolio of
Slide 24: Products & Brands: Strong brands for the Swiss Consumer Healthcare Market
Products & Brands: Strong brands for the Swiss Consumer Healthcare Market Verfora market share Market share of main OTC product in Swiss CHC market1 categories of Verfora1 in 2023 OTC products 13.5% market share Vitamins, minerals & CHF 241.7 million nutritional supplements Pain relief Personal care
Slide 25: Products & Brands: Proven M&A track record
Products & Brands: Proven M&A track record as key driver for market share growth Verfora growth strategy − Big OTC brands − Emerging platforms complementary medicine, beauty & Rx − New distribution agreements − Acquisitions of brands / companies − International expansion via distributors August 2024
Slide 26: Products & Brands: Proven M&A track record
Products & Brands: Proven M&A track record as key driver for market share growth Acquisition Distribution Hedoga Boiron® OTC Group Beauty 10.0% Distribution Complementary Medicine Allergosan® Distribution Acquisition Vicks and Dr. Wild Distribution Metamucil ThermaCare® Acquisition Padma® 8.0% Acqui
Slide 27: Services for Professionals: High quality services
Services for Professionals: We support healthcare professionals with high quality services • Lifestage Solutions develops and operates a fully integrated digital trading platform for home care organisations and nursing homes • Strong customer focus: the platform simplifies daily workflows for its cu
Slide 28: Services for Professionals: One digital platform for home care services
Services for Professionals: One digital platform for home care services Artificial nutrition and parenteral therapies Overview of services Care materials (MiGeL) and billing Galenica’s Home doctors comprehensive range of services relieves the burden on specialists and optimises work processes Region
Slide 29: Wholesale: Leader in wholesale distribution
Wholesale: Leader in wholesale distribution Key takeaways Wholesale market share1 Wholesale market share1 % physician channel % pharmacy channel − Wide product range with around 100,000 products in pharma, non-pharma, practice & laboratory equipment and medical devices, whereof around 50% in stock 2
Slide 30: Wholesale: Leader in wholesale distribution
Wholesale: Leader in wholesale distribution Wholesale distribution with four distribution centers Customers by channel Pharmacies ~ 1,300 Drugstore ~ 300 Medical practices > 5,600 Hospitals/Nursing homes > 570 August 2024 30 Investor Presentation Galenica Group
Slide 31: Logistics & IT Services: Leader in pre-wholesale distribution
Logistics & IT Services: Leader in pre-wholesale distribution Key takeaways Pre-wholesale market share1) Warehouse capacity − Third-party logistics provider No. 3 9% 35,200 m2 for the pharmaceutical industry (pre-wholesaling) including No. 2 38% additional services (labeling, repacking, clinical tri
Slide 32: Logistics & IT Services: Strong IT competencies
Logistics & IT Services: Strong IT competencies to drive digital transformation Key takeaways Internal IT Services Market offering − IT platforms related to electronic medication process (Documedis) − Systemically relevant digital Projects & Consulting Index information and databases (Compendium and
Slide 33: Logistics & IT Services: Patient safety, convenience and efficiency
Logistics & IT Services: Our approach towards more patient safety, convenience and efficiency Clinical Decision Support (CDS) (medication and vaccination) Medication Master Data Diagnosis Anamnesis Prescription Patients on-/offline E-Prescription Therapy e-Mediplan August 2024 33 Investor Presentati
Slide 34: Strategic partnerships
Strategic partnerships Galenica as preferred partner in Swiss Healthcare strategic partnerships Product Health Digital eHealth Pharmacies Logistics distribution Insurances Platforms Solutions - Basic insurance models - Verfora is preferred distribution partner for products in - JV with Planzer - JV
Slide 35: Market environment
Market environment
Slide 36: Swiss healthcare market: resilient and stable growth
Swiss healthcare market Proven track record of resilient and stable growth Development of Swiss healthcare retail sector1 in billion CHF (based on ex-manufacturer price) 2024-27 CAGR 4%2 7 2013-23 CAGR 3.8% 6 6.3 6.5 5.8 6.0 5 5.6 5.3 4.9 4 4.4 4.4 4.5 4.6 4.1 4.2 3 3.9 3.9 2 1 0 2013 2014 2015 2016
Slide 37: Swiss pharmaceutical market H1 2024
Swiss pharmaceutical market H1 2024 Total market growth CHF 3,734.8 million (+1.7%) Hospitals 98.8 million packs (-1.3%) CHF 913.6 million (+0.7%) 7.9 million packs (-2.5%) 24.5% Drugstores 42.8% Local Pharmacies CHF 30.5 million (-3.1%) 0.8% CHF 1,599.2 million (+1.5%) 2.9 million packs (-6.4%) 64.
Slide 38: Swiss pharmaceutical market: low sales in June 2024
Swiss pharmaceutical market Exceptionally low market sales in June 2024 in million CHF 690 670 650 630 610 590 570 550 530 510 490 470 450 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez 2022 2023 2024 Source: APO/SD/DRO/SPI Index, Swissmedic A, B, D Medicines Swissmedic lists A, B, D, sold from sup
Slide 39: Galenica as key driver of generic substitution
Swiss pharmaceutical market Galenica as key driver of generic substitution in Switzerland Drugs reimbursable by health insurance in Swiss pharmacy channel H1 2024 (by packs, total 42.8 million) Substitution rate Pharmacies Galenica Group3 Patent protected products 2.6 million, -2.4% 80.8% 6% Origina
Slide 40: Strong momentum for generic substitution in H1 2024
Swiss pharmacy channel market Strong momentum for generic substitution in H1 2024 Swiss Pharmacy Channel Swiss Pharmacy Channel (Split by value) (Split by volume) 19.6% 19.0% 19.5% 20.2% 46.7% 46.4% 45.9% 45.6% 41.9% 43.8% 45.6% 47.0% 6.1% 6.2% 6.0% 6.1% 18.7% 18.2% 15.3% 19.5% 20.9% 18.9% 16.2% 12.
Slide 41: Consumer healthcare market H1 2024
Consumer healthcare market H1 2024 Total market 3.0% CHF 1,370 million -0.2% 11.8% OTC +1.0% Personal care -4.0% 19.8% Patient care Non-medication +0.8% segment 65.4% -2.2% Nutrition -1.6% Source: IQVIA PharmaTrend for pharmacies and drugstores in Switzerland, streetprices © IQVIA – Consumer Health
Slide 42: Swiss healthcare market: regulatory environment
Swiss healthcare market: regulatory environment Topic/Initiative Current status Reduction in drug prices − Standard process, FOPH verifies drug prices in a three-year cycle − New concept of distribution margin decided by Federal Council on 8 Dec 2023 Distribution margin − Implementation of a new mod
Slide 43: Constant pressure on drug prices
Swiss healthcare market: regulatory environment Constant pressure on drug prices Annual savings per channel due to price cuts of SL products at public and ex-factory price in million CHF Pharmacies Physicians Hospitals 140 120 ? 19.3 ? 100 23.9 11.7 17.1 34.3 22.7 80 33.2 11.4 31.5 23.6 27.8 25.9 21
Slide 44: Composition of drug prices
Swiss healthcare market: regulatory environment Composition of drug prices Fixed margin elements help to offset price reductions ~8%1 Per prescription / line Reimbursed Composition of the price of a ~29% ~ 24% Retail and prescription/ reimbursable drug: ~ 5% Wholesale c.3/4 of the retail margin se
Slide 45: New concept of distribution margin
Swiss healthcare market: regulatory environment New concept of distribution margin (valid since 1 July 2024) FOPH defines price and margin – Margin covers wholesale and retail 70 Current model (until 30 Jun 2024) New model (since 1 Jul 2024) Current model New model 60 Ex factory + price- + surcharge
Slide 46: Business performance
Business performance Our success story
Slide 47: Performance overview: resilient growth and margin improvement
Performance overview Galenica Group History of resilient growth and margin improvement 2014 – 2022 including Mediservice since 2023 w/o Mediservice (incl. discontinued operations) (continuing operations) CAGRs CAGRs Retail market sales1 4.2% Retail market sales1 5.7% Galenica net sales 3.2% Galenica
Slide 48: Strong performance development in both segments
Performance overview Galenica Group Strong performance development in both segments Products & Care Logistics & IT 5.4% 4.0% 2,030 2,933 3,077 1,908 2,831 2,625 Net sales (CHFm) 1,621 1,683 1,6364 2,329 2,362 2,372 2,441 1,479 1,525 2,171 2,245 1,335 1,393 1,437 2014 2015 2016 2017 2018 2019 2020 20
Slide 49: Solid sales growth in challenging market
Galenica Group Solid sales growth in challenging market Net sales (in million CHF) +2.6% +3.0% 1,851 1,900 1,518 1,563 +3.1% 804 829 H1 2023 H1 2024 Galenica Group Products & Care Logistics & IT August 2024 Investor Presentation Galenica Group 49
Slide 50: Solid sales growth in both segments
Galenica Group Solid sales growth in both segments Net sales (in million CHF) H1 2023 H1 2024 change Local Pharmacies 640 658 +2.7% Pharmacies at Home 39 38 -2.9% Retail (B2C) 679 695 +2.4% Products & Brands 90 97 +7.8% Services for Professionals 39 41 +7.3% Professionals (B2B) 129 138 +7.6% Product
Slide 51: Retail B2C: Sales growth above market development
Retail B2C Sales growth above market development Net sales (in million CHF) 1,386 Portfolio of local pharmacies expanded by 8 locations: 79 expansion impact1 of +1.2% +2.4% Pharmacies at Home 679 695 Local Pharmacies 1,307 39 38 -2.9% Strong growth of generics, substitution rate further increased fr
Slide 52: Products & Brands: Further market share gains
Products & Brands Further market share gains Net sales (in million CHF) 177 36 +7.8% International: − Organic growth of +25.7%1 International 97 90 Swiss market 19 24 +28.0% Swiss market: 141 − Organic growth of +1.5%1 − Growth of market sales CH2 +4.5% 71 73 +2.5% − Market share2 of Product & Brand
Slide 53: Services for professionals: Strong sales growth
Services for professionals Strong sales growth in elderly care segment Net sales (in million CHF) 79 +7.3% Strong growth with services for homecare organisations and nursing homes 39 41 2023 H1 2023 H1 2024 August 2024 Investor Presentation Galenica Group 53
Slide 54: Wholesale: Sales growth above market
Wholesale Sales growth above market Net sales (in million CHF) 2,953 823 +2.7% Physicians Market share gains both in 1,496 physicians and pharmacies Pharmacies 1,457 segments Others 409 435 +6.4% 1,949 Impact of price cuts1 -1.9% 956 972 +1.7% 180 92 89 -3.1% 2023 H1 2023 H1 2024 1) Mandatory price
Slide 55: Logistics & IT Services: Pleasing sales growth
Logistics & IT Services Pleasing sales growth Net sales (in million CHF) 144 Third party sales Intercompany sales +10.3% Further growth with IT services and pre-wholesale 73 70 78 distribution 36 37 +2.1% 71 34 40 +19.1% 2023 H1 2023 H1 2024 August 2024 Investor Presentation Galenica Group 55
Slide 56: Strategic IT projects burden EBIT development
Strategic IT projects burden EBIT development EBIT adjusted1) (in million CHF) ROS (in %) 100.0 99.1 -0.9% 90.2 -9.8 28.8 25.4 -11.6% 19.0 1.6% 1.3% 1.9% Logistics & IT Products & Care 73.1 73.1 75.9 +3.9% 9.1% 9.1% 9.2% 2 H1 2023 one-off H1 2023 H1 2024 items w/o. one- off 1 Excluding effects of IA
Slide 57: Adjusted consolidated statement of income
Adjusted consolidated statement of income1 in million CHF H1 2023 H1 2024 in % Improved gross margin thanks to strong growth of Products&Brands and higher Net sales 1’851 1’900 +2.6% proportion of low-priced medicaments Other income 8 6 -21.5% Cost of goods -1’339 -1’369 +2.2% Increase of personnel
Slide 58: Strong balance sheet
Strong balance sheet in million CHF 1,482 1,428 1,349 Equity adjusted1 503 534 Net debt adjusted1 362 2023 H1 2023 H1 2024 Debt coverage 1.5x 2.1x 2.1x adjusted2 1 Detail of the adjustments in the Half year report 2024, see chapter “Alternative performance measures” 2 See chapter “Alternative perfor
Slide 59: Condensed balance sheet
Condensed balance sheet in million CHF Dec 2023 Jun 2024 Change Cash and cash equivalents 116 70 -47 − Increase of trade and other receivables due to seasonality effect Trade and other receivables 518 582 +64 Inventories 357 354 -3 − Stable stock levels compared to Other assets 661 634 -27 December
Slide 60: Investments in our future
Investments in our future in million CHF 78.8 32.7 Investments in intangible assets 38.4 34.6 Investments in tangible assets 15.9 19.6 46.1 18.6 18.8 2023 H1 2023 H1 2024 in % of net sales 2.1% 1.9% 2.0% August 2024 60 Investor Presentation Galenica Group
Slide 61: Cash Flow Statement
Cash Flow Statement Investments and seasonal effects burden cash flow in million CHF H1 2023 H1 2024 Change Cash flow from operating activities before working Increase of net working 1 87.5 97.8 +10.3 capital changes adjusted capital mainly related to Working capital changes -109.4 -80.2 seasonal ef
Slide 62: Share information: Historical dividend per share and pay-out ratio
Share information Historical dividend per share and pay-out ratio1 69.9% Dividend guidance: 68.2% 66.2% 2) − 50% of dividend payout from 64.7% 59.7% reserves from capital contributions (exempt from WHT) 2.20 2.20 2.10 1.80 1.80 − Dividend outlook 2024: at least same level as 2023 2019 2020 2021 2022
Slide 63: Share information: Key figures
Share information Key figures in CHF Dec 2023 June 2024 Share price at reporting date 72.75 73.55 Market capitalisation at reporting date in million CHF 3,625.3 3,663.5 Earnings per share 01/01 – 30/06 from continuing operations1 1.49 1.58 Earnings per share adjusted 01/01 – 30/06 from continuing op
Slide 64: Governance
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Slide 65: Shareholder structure
Shareholder structure Proportion of shareholders by country Major shareholders (30 Jun 2024) (30 Jun 2024) − Shareholders over 3%: in % 0.4% Shareholders Number of shares Shares in % UBS Fund Management (Switzerland) AG, 5,487,581 10.98 Switzerland Switzerland Alecta Pensionsförsäkring, Sweden 2,000
Slide 66: Overview of our governance structure and instruments
Overview of our governance structure and instruments Annual General Meeting External advisory and inspection bodies / auditors Board of Directors Audit and Remuneration Governance, Nomination and Risk Committee (ARC) Committee (RC) Sustainability Committee (GNSC) Corporate Executive Committee / Exte
Slide 67: Board of Directors
Board of Directors Dr. Markus − Elected since 2019 Prof. Dr. − Elected since 2023 R. Neuhaus − Master of law and doctorate in law from the med. − Professor, University of Lausanne, head of Chairman University of Zurich Solange the department of medical oncology at − Member of the BoD of Barry Calleb
Slide 68: Board of Directors: Committees and competencies
Board of Directors Committees and competencies ARC (Audit and Risk Committee) Members: Jörg Zulauf Budget / medium-term planning (Chairman), Bertrand Jungo, Andreas Walde, Judith Meier Risk management Compliance / internal audits Acquisitions / investments RC (Remuneration Committee) Members: Bertra
Slide 69: Board of Directors: Competencies and diversity
Board of Directors Competencies and diversity Competencies Neuhaus Bruderer Jungo Meier Peters Walde Zulauf Markus Pascale Bertrand Judith Solange Andreas Jörg Industry x x x x x Experience Digitalisation (x) (x) (x) x Regulations/ x x x x x Politics Leadership/ x x x x Big Corp. Finance/ An (x) in
Slide 70: Board of Directors: Competencies and diversity
Board of Directors Competencies and diversity Age of BoD members (June 2024) Gender of BoD members (June 2024) 45 – 50 14% 50 – 55 29% 55 – 60 male 14% 43% 60 – 65 57% female 14% 65 – 70 29% August 2024 70 Investor Presentation Galenica Group
Slide 71: Our management structure
Our management structure August 2024 71 Investor Presentation Galenica Group
Slide 72: Executive Committee
Executive Committee Marc Werner − CEO since 2020 Thomas − Chief Products & Marketing Officer CEO − 27 years industry experience Szuran since 2021 − Joined Galenica in 2020 Products & − 27 years industry experience of which − Previously, Head Marketing & Sales Marketing 5 years at Galenica division a
Slide 73: Remuneration
Remuneration Responsibility for the remuneration process Remuneration Level of authority CEO Board of Directors Annual General Meeting Committee consultative vote on the Remuneration policy proposes approves Remuneration report Performance objectives for short-term proposes approves bonus and long-t
Slide 74: Remuneration
Remuneration Remuneration components STI LTI − The remuneration components of the Corporate Executive Committee (EC) 25% ESG 50% consists of a fixed compensation, benefits and a variable compensation. average − The variable remuneration consists of a short-term incentive (STI) and a long- GEP term i
Slide 75: Sustainability
* alenica ‘Sustainability:
Slide 76: Sustainability at Galenica: Overview
Sustainability at Galenica Overview Sustainability Guidelines Enterprise value Employees Resource efficiency Long-term increase in the Commitment of employees to The respectful and efficient value of the company through act responsibly and to ensure a use of resources and reduction sustainable pract
Slide 77: Sustainability at Galenica: Matrix of the main topics
Sustainability at Galenica Matrix of the main topics August 2024 77 Investor Presentation Galenica Group
Slide 78: Sustainability at Galenica: Our sustainability goals
Sustainability at Galenica Our sustainability goals Corporate governance Patients Ethical and legal business activities Increase patient safety and health Protect patient data and IT systems Ensure the availability of medicinal products Employees Environment Promote employee motivation and developme
Slide 79: Sustainability at Galenica: Our sustainability goals
Sustainability at Galenica Our sustainability goals Target Measurement Goal Status year parameter 2021 2022 2023 We train all employees in compliance at Not all employees are Not all employees are Not all employees are Every year Participation rate least once a year. trained trained trained Twice a
Slide 80: Sustainability at Galenica: Our sustainability goals
Sustainability at Galenica Our sustainability goals Goal Status Target year Measurement parameter 2021 2022 2023 We will increase the use of Clinical Decision Number of CDS.CE checks Support Checks (CDS.CE) to 500 million by 2030 N/A 110 million 278 million (Clinical Decision Support) 2025 and 1 bil
Slide 81: Sustainability at Galenica: Our sustainability goals
Sustainability at Galenica Our sustainability goals Target Goal Status year Measurement parameter 2021 2022 2023 We will increase the motivation rate of our employee survey to 75 out of 100 Motivation rate 71 / 100 74 / 100 76 / 100 2024 points and the participation rate to 75% Participation rate 58
Slide 82: Sustainability at Galenica: Our sustainability goals
Sustainability at Galenica Our sustainability goals Goal Status Target year Measurement parameter 2021 2022 2023 From 2025, we will be sourcing 100% of our electricity from % electricity from renewable → 2025 74% 74% 75% renewable sources at all our sources per location locations. We will reduce the
Slide 83: ESG Ratings
ESG Ratings Rating-Agentur Actual Rating Percentile Comment ESG Risk Top 1% (Global Universe) − Ranking number 3 among 643 Healthcare companies (Rating of 8.7) NEGL LOW MED HIGH SEVERE − Very good scores in Business ethics, Data privacy and security, and Carbon emissions in own (Jul 2023) 0% 100% op
Slide 84: Outlook
Outlook
Slide 85: Outlook: Products & care
Outlook Products & care The rNPS (Net Intensify Promoter Score) is Roles of pharmacy collaboration The importance of to be introduced Continuous assistants will between Bichsel, the pharmacy as across the board in optimisation and incluce additional Mediservice, the first point of pharmacies from ex
Slide 86: Outlook: Logistics & IT
Outlook Logistics & IT Implementation of Galexis: measures to achieve the The “Documedis ” Following the successful sustainability goals is a software solution from − Roll-out of the new pilot projects, the “e- top priority HCI Solutions is to be ERP system to be prescription” is to be implemented a
Slide 87: Financial guidance 2024
Financial guidance 2024 − Galenica Group net sales +3% to +5% − EBIT adjusted1 +8% to +11% − Dividend for 2024 at least at prior-year level 1 Excluding effects of IAS 19 and IFRS 16, see chapter “Alternative performance measures” of the Annual Report 2023 August 2024 87 Investor Presentation Galenic
Slide 88: Market development expectations
Market development expectations1 • Based on the demographic trends and innovation with many new, high-priced medications, Galenica expects continued strong growth of +/- 5% in the Swiss pharmaceutical market2 in the next years. • The strongest growth is expected in the hospital channel. For pharmaci
Slide 89: Mid-term Guidance
Mid-term Guidance • Galenica expects net sales to grow by 3% to 5% in the next years. • Until 2026, Galenica expects a stable development of its return on sales (ROS)1 due to • an intense final phase of the ERP project in the Logistics & IT segment with a planned finalisation in 2026, • continuous i
Slide 90: Reasons to invest in Galenica
Reasons to invest in Galenica Unique combination of defensive resilience and significant growth Defensive resilience History of growth Strategic focus • Stable and attractive Swiss • Significant operational • Proven strategy to leverage healthcare market with advantages from integrated, market leade
Slide 91: Galenica Group – Contact information
Galenica Group – Contact information Investor Relations Felix Burkhard Tel: +41 58 852 85 31 CFO investors@galenica.com Julian Fiessinger Tel: +41 58 852 85 37 Head of Investor Relations investors@galenica.com and Corporate Finance August 2024 91 Investor Presentation Galenica Group
Slide 92: Disclaimer
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 n