Sandoz Group Ltd · SIX:SDZ
Sandoz — FY2024 Earnings Presentation
41 slides from Sandoz's earnings presentation, Mar 5, 2025
Slide 1: FY 2024 results
March 5, 2025 FY 2024 results
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are su
Slide 3: Agenda
Agenda 1. Highlights 2. Business update 3. Financial performance 4. Full-year 2025 guidance & mid-term outlook 5. Wrap-up 3
Slide 4: 1. Highlights
1. Highlights
Slide 5: On track to deliver on our commitments
1 On track to deliver on our commitments Driving Expanding Advancing Creating top line margin on pipeline value • >USD 10 billion in • Delivering on • Three regulatory • Core ROIC up net sales for the strong expansion in approvals and three 2.5%pts to 12.3% first time 2024 launches • Dividend increa
Slide 6: Shift towards value-accretive products continuing with 30% biosimilar-sales growth
1 Shift towards value-accretive products continuing with 30%1 biosimilar-sales growth in 2024 Net sales in USD billion % cc1 Business mix Regional mix FY 2024 FY 2023 FY 2024 International 2.6bn 25% 77% 9.6bn 23% 28% 10.4bn 72% 10.4bn 52% +9% +9% 23% North Europe Biosimilars America 5.4bn Generics 2
Slide 7: Our Purpose in action 2024
1 Our Purpose in action 2024 Driving Access and Impact Empowering our People • More than 900 million patient treatments • 40% of Board of Directors, 50% of Executive Committee, provided in 100+ countries and 45% of management are women • USD 19 billion in savings delivered to • Achieved 100% of coll
Slide 8: Listening to market feedback; additional disclosures
1 Listening to market feedback; additional disclosures Regional sales split Global biosimilar pipeline Change % 5 near-term launches USD millions FY 2024 FY 2023 USD cc Europe 5,363 5,023 7 6 and Phase III assets Generics 3,769 3,644 3 3 Biosimilars 1,594 1,379 16 15 5 assets in North America 2,437
Slide 9: 2. Business update
2. Business update
Slide 10: Strong biosimilars growth of 30%; launching successful products and advancing pipeline
2 Strong biosimilars growth of 30%1; launching successful products and advancing on our pipeline • Omnitrope® (somatropin): strong customer demand in a constrained market-supply environment • Hyrimoz® (adalimumab): leading biosimilar in the US, uptake of branded Hyrimoz® and unbranded adalimumab-ada
Slide 11: Continued demand for Omnitrope
2 Continued demand for Omnitrope® Designed to help patients with growth-hormone-related disorders • Overtook originator as market leader with 37% global market share1 • Strong double-digit growth, 18 years after launch • Constrained supply environment • Sandoz remains able to increase supply to sati
Slide 12: Hyrimoz/adalimumab-adaz with most preferred coverage of all adalimumab biosimilars
2 Hyrimoz®/adalimumab-adaz with most preferred coverage of all adalimumab biosimilars Sandoz US adalimumab market share evolution1 • Broadest payer coverage of the biosimilars, with coverage by all three major PBMs • Continued uptake of Sandoz 81% 79% Hyrimoz® and unbranded 84% 98% 96% adalimumab-ad
Slide 13: Increasing market share of Tyruko in Europe
2 Increasing market share of Tyruko® in Europe First and only biosimilar for multiple sclerosis Market share1 Best coverage Strengthens well-established among adalimumab biosimilar portfolio biosimilars in the US2 20% Trusted partner in 16% multiple sclerosis 12% Seamless patient experience through
Slide 14: Achieving key milestones on Pyzchiva
2 Achieving key milestones on Pyzchiva® Strengthen well-established immunology portfolio Market share development in Europe1 Leveraging expertise • First ustekinumab biosimilar with all key reference strengths • Leveraging existing commercial 2% 8% 13% 21% 25% infrastructure • Launched in 20 markets
Slide 15: Industry-leading biosimilar pipeline
2 Industry-leading biosimilar pipeline Generics Biosimilars ~450 28 products1 products1 USD 199bn USD 195bn originator sales targeted2 originator sales targeted2 68% 61% pipeline coverage2 pipeline coverage2 1. Product defined as molecule and dosage 2. Sandoz coverage of overall LoE calculated as or
Slide 16: Further milestones reached in network simplification
2 Further milestones reached in network simplification Internal manufacturing sites External finished drugs suppliers Network design 18 Past 15 Current ~400 Past ~250 Future 2023 2024 2023 2028 EUR 200m investment in Internalization of selected Building biosimilars Focused vertical antibiotics manuf
Slide 17: 3. Financial performance
3. Financial performance
Slide 18: Net sales driven by strong volume growth and favorable pricing dynamics
3 Net sales driven by strong volume growth and favorable pricing dynamics Q4 FY In USD billion % cc1 +9% +9% -1%pt -2%pts 10.4 +1%pt -2%pts 2.7 +10%pts +8%pts 2.5 9.6 2023 Volume Price FX 2024 2023 Volume Price FX 2024 increase erosion 18 1. In constant currencies
Slide 19: Net sales by business
3 Net sales by business Biosimilars growth of 30%1 in 2024 Q4 In USD billion % cc1 +9% Biosimilars 2.5 2.7 Strong double-digit growth from uptake of Hyrimoz® in the 0.6 0.8 +25% US, acquisition of Cimerli®, continued strong demand for Omnitrope® and launch of Tyruko® and Pyzchiva® in 1.9 1.9 +4% Eur
Slide 20: Net sales by region
3 Net sales by region All three regions contributing to strong sales performance Q4 In USD billion International % cc1 +9% Contribution from acquisition of Mycamine®, favorable pricing 2.5 2.7 dynamics and launches, partly offset by divestment of 0.7 +6% Chinese business 0.7 0.6 0.7 +14% 1.4 +8% Nor
Slide 21: 24% core EBITDA growth driven by mix and operating leverage
3 24%1 core EBITDA growth driven by mix and operating leverage Core gross profit margin driven by favorable product mix and 2024 Change Change in USD million operational improvements, offset by Core results % USD1 % cc1,2 carried over inflation on cost of Net sales 10,357 7 9 goods sold impacting H1
Slide 22: Positive mix from strong biosimilars growth
3 Positive mix from strong biosimilars growth FY 2023 core EBITDA margin Core EBITDA margin adjusted by 1.1 percentage points % of net sales for spin-off related items 3.1%pts 3.8%pts 20.1% Positive mix effect from strong -0.5%pt biosimilar growth 18.1% 17.0% -2.6%pts 2.8%pts -0.5%pt Increase in cos
Slide 23: Improved profitability and working capital driving strong growth in free cash flow
3 Improved profitability and working capital driving strong growth in free cash flow Working capital enhancements Management free cash flow through improvements in FY 2024, in USD million receivables and a lower rate of increase in inventory 2,080 (2023: USD -587 million) (277) 250 (471) CAPEX inclu
Slide 24: Maintaining robust balance sheet and returns to support future growth
3 Maintaining robust balance sheet and returns to support future growth December December Long-term credit ratings of Baa2 in USD million Change 2024 2023 by Moody’s and BBB by S&P, Total financial debt 4,535 4,259 276 both with stable outlooks Net debt to core EBITDA ratio Liquidity 1,206 1,144 62
Slide 25: 4. Full-year 2025 guidance & mid-term outlook
4. Full-year 2025 guidance & mid-term outlook
Slide 26: Full-year 2025 guidance
4 Full-year 2025 guidance Net sales growth Mid-single digit % in constant currencies Core EBITDA Around 21% % margin on net sales Key assumption Price erosion of low to mid-single digit Four %pts negative impact on full-year net sales FX sensitivity1 No material impact on core EBITDA margin 26 Note:
Slide 27: Mid-term outlook
4 Mid-term outlook Net-sales growth1 Core EBITDA margin % in constant currencies % of net sales ~100bps 24 to 26% ~300bps Mid-single ~100bps Organizational 20.1% 9% digit1 Operational efficiency Volume, mix improvements and price FY 2024 Mid-term 2024 2028E (2028E) Dividend policy % of core net inco
Slide 28: Investments required to transition from former parent peaked in 2024
4 Investments required to transition from former parent peaked in 2024, substantial decreases thereafter One-off costs1 OPEX, 2023 – 2026, in USD billion One-time separation investments in IT, manufacturing and development capabilities 0.7 ~0.5 Transformation to simplify our organizational structure
Slide 29: Creating value with additional investments in growth opportunities and efficiencies
4 Creating value with additional investments in growth opportunities and efficiencies CAPEX Cumulative 2025 – 2028, in USD billion Manufacturing Extension of internal biosimilars 2.2 manufacturing capacity and internalization of fill & finish capacity 0.6 1.2 Intangible 0.4 Intangible investments ma
Slide 30: Free cash-flow generation supporting growth-related investments
4 Free cash-flow generation supporting growth-related investments Free cash flow 2022 – 2028 (illustrative), in USD billion Decreasing one-off separation and transformation costs and lapping of payments related to legacy litigations ~2.0 to 2.5x driving anticipated FCF expansion in 2025 and 2026 1.1
Slide 31: Outlook
4 Outlook Commercial milestones Corporate calendar • Wyost® /Jubbonti® launch in the US in • Annual General Meeting on April 15, 2025 Q2 20251 and in Europe in Q4 2025 • Three-month sales on April 30, 2025 • Tyruko® launch in the US in 2025, pending • Half-year results on August 7, 2025 FDA approval
Slide 32: 5. Wrap-up
5. Wrap-up
Slide 33: Strongly positioned to drive long-term shareholder value
5 Strongly positioned to drive long-term shareholder value European champion Compelling market and well positioned dynamics in other regions Multiple levers to Significant deliver margin biosimilar Pioneering expansion launches driving access for growth and patients Comprehensive favorable mix and e
Slide 34: Q&A
Q&A
Slide 35: Appendix
Appendix
Slide 36: Global biosimilar pipeline (1/3)
Global biosimilar pipeline (1/3) Key near-term launches and Phase III assets Originator net sales targeted Potential launch Own/targeted brand (USD bn)1 Wholly owned Current status Dates1,2 Enzeevu®/Afqlir® Approved in US US: TBD3 9 Yes aflibercept Approved in Europe Europe: Q4 2025 Wyost®/Jubbonti®
Slide 37: Global biosimilar pipeline (2/3)
Global biosimilar pipeline (2/3) Assets in regulatory review Originator net sales targeted Targeted brand (USD bn)1 Wholly owned Current status Herceptin® Filed in US 2 No trastuzumab Approved in Europe Avastin® Approved in US 2 No bevacizumab Approved in Europe Lantus® Filed in US 4 No glargine Fil
Slide 38: Global biosimilar pipeline (3/3)
Global biosimilar pipeline (3/3) Assets in technical development Originator net sales targeted Targeted brand (USD bn)1 Wholly owned Darzalex® – daratumumab 17 Yes Enhertu® – trastuzumab deruxtecan 15 Yes Tecentriq® – atezolizumab 5 Yes 10 additional assets in early Skyrizi® – risankizumab 20 Yes de
Slide 39: Well-balanced and actively managed maturity profile
Well-balanced and actively managed maturity profile Credit S&P: BBB Maturity profile1 ratings Moody’s: Baa2 in USD millions Net debt to core 1200 EBITDA ratio below Leverage 2.0x in the mid- 800 term Duration of Duration around 5 years 400 0 22% 2026 2027 2028 2029 2030 2031 2033 Debt mix floating O
Slide 40: Glossary
Glossary Abbreviation Definition D&R Development and regulatory expense FCF Free cash flow FDA Food and Drug Administration GxP Good practice quality guidelines and regulations IV Intravenous JCV John Cunningham virus LoE Loss of exclusivity PBMs Pharmacy benefit managers SBTi Science Based Targets
Slide 41: Thank you
Thank you SANDOZ