Sandoz Group Ltd · SIX:SDZ
Sandoz — H1 2025 Earnings Presentation
35 slides from Sandoz's earnings presentation, August 2025
Slide 1: Investor Presentation Post H1 2025
Investor Presentation Post H1 2025
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: Opportunities ahead: significant potential in biosimilars and generics over next decade
Opportunities ahead: significant potential in biosimilars and generics over next decade Leading biosimilars pipeline Strong generics pipeline >USD 300 bn >USD 340 bn LoEs over next decade1 LoEs over next decade3 27 USD representing >400 USD representing assets2 ~200 bn 64% assets2 ~220 bn 65% in dev
Slide 4: Strong progress in first half of year
Strong progress in first half of year Development Financials Launches Guidance and supply Accelerated sales growth in Executed launches Additional manufacturing Full-year guidance second quarter according to plan: capabilities in Slovenia; - confirmed Core EBITDA margin • Wyost® and Jubbonti® propos
Slide 5: Launch milestones achieved in first half, with additional launches anticipated in H2
Launch milestones achieved in first half, with additional launches anticipated in H2 Pyzchiva Pyzchiva Afqlir® autoinjector (aflibercept) Launched in US, First commercially available Europe launch including in private label autoinjector in Europe for anticipated in Q4 ustekinumab biosimilars H1 2025
Slide 6: Pyzchiva: strong growth in Europe, launched in US
Pyzchiva: strong growth in Europe, launched in US Pyzchiva European market share1 Biosimilars penetration growing in Sandoz market Biosimilars Europe. Presence established in share (%) penetration (%) 24 markets. Launched first biosimilar 50 50 ustekinumab autoinjector in Europe 41% 39% 40 38% 40 Py
Slide 7: Hyrimoz: continued momentum in Europe and International; broadest payer coverage in US
Hyrimoz® (adalimumab): continued momentum in Europe and International; broadest payer coverage in US Hyrimoz global market share1 Biosimilars penetration consistently Sandoz market Biosimilars increasing share (%) penetration (%) 30 62 Good European performance 25 60 accompanied by growth in Exclude
Slide 8: Tyruko: encouraging progress in Europe; ambition to launch in US before year end
Tyruko: encouraging progress in Europe; ambition to launch in US before year end1 Tyruko European market share2 First and only biosimilar Sandoz market approved for relapsing remitting share (%) 20% 20% multiple sclerosis 20 17% Additional launches planned 15 across Europe this year 10 8% Strong com
Slide 9: Omnitrope: market-leading biosimilar helping patients with growth-hormone-related disorders
Omnitrope® (somatropin): market-leading biosimilar helping patients with growth-hormone-related disorders Omnitrope global market share1 Market leader, with 35% global share1 Sandoz market share (%) 40 International region driving 35% 36% 35% 35% 35% H1 growth 31% 31% 32% 30 28% 24% Reliable Sandoz
Slide 10: Licence agreement signed with Henlius to strengthen position in oncology
Licence agreement signed with Henlius to strengthen position in oncology Sandoz to commercialize Yervoy®1 biosimilar Ipilimumab strengthens immuno-oncology pipeline Boosts access and healthcare savings worldwide Covering 42 European US Australia countries and regions and Canada and Japan Henlius: de
Slide 11: Industry-leading biosimilars pipeline; significant opportunities to improve access for patients
Industry-leading biosimilars pipeline; significant opportunities to improve access for patients High-value biosimilars-market opportunity > USD 300 bn total LoEs over next decade 1 Extensive biosimilars pipeline 27 total assets2 in ~USD of originator Covering of total development targeting 200 bn ne
Slide 12: Industry-leading biosimilars pipeline
Industry-leading biosimilars pipeline H1 2025 H2 2025 2026+ Already launched Upcoming launches Near-term launches & assets in clinical development EnzeevuTM Opdivo®2 Pyzchiva Wyost and Jubbonti (aflibercept) in US (nivolumab IV) Yervoy® in US in EU (ipilimumab) Keytruda®2 Ocrevus®2 (pembrolizumab IV
Slide 13: End-to-end European hub to seize unprecedented biosimilars opportunities
End-to-end European hub to seize unprecedented biosimilars opportunities Ljubljana Lendava Brnik - announced in July State-of-art technical High-tech drug substance State-of-art aseptic development center production center production center Using latest scientific and Planning to be Europe’s most ef
Slide 14: Sandoz signs non-binding term sheet: potential acquisition of Just - Evotec Biologics EU SAS
Sandoz signs non-binding term sheet: potential acquisition of Just - Evotec Biologics EU SAS Sandoz and Evotec: evolution of strategic collaboration Access to strategic Reinforcement of in-house Acquisition of Just - Evotec proprietary platforms biosimilar `capabilities Biologics EU SAS For integrat
Slide 15: Generics continue to be a cornerstone for Sandoz, with more than 180 launches in H1
Generics continue to be a cornerstone for Sandoz, with more than 180 launches in H1 ~90 medicines >180 launches H1 Volume growth partly reflected launched across markets1 prior-year launches, First-to-market launch such as paclitaxel in US 1 Ferric carboxymaltose in Europe USD 548 million originator
Slide 16: H1 net-sales performance driven by double-digit biosimilars growth
H1 net-sales performance driven by double-digit biosimilars growth H1 net-sales business mix H1 net-sales regional mix In USD billions North America Biosimilars 1.1 bn 1.5 bn 21% Europe 29% 2.8 bn 5.2 bn 5.2 bn +4% at CC 54% +4% at CC 71% 25% International Generics 1.3 bn 3.7 bn CC: constant currenc
Slide 17: Double-digit growth for biosimilars driven by launches
Double-digit growth for biosimilars driven by launches In USD billions +4% CGR H1 dynamics at CC 5.0 5.2 6% Net sales by Biosimilars business 1.3 1.5 17% Strong Europe biosimilars growth H1 2025 vs PY from Pyzchiva and Tyruko 3.7 3.7 2% launches. International: continued strong performance from H1 2
Slide 18: All three regions growing at comparable growth rates
All three regions growing at comparable growth rates In USD billions +4% CGR at CC H1 dynamics 5.2 6% 5.0 Net sales by 1.1 +4% Europe region 1.1 1.3 +8% Generics grew due to launches H1 2025 1.3 from 2024, with biosimilars vs PY 2.6 2.8 +6% benefiting from launches, including Pyzchiva and Tyruko H1
Slide 19: Strong H1-volume growth, with price erosion in line with full-year expectations
Strong H1-volume growth, with price erosion in line with full-year expectations Net-sales growth in USD billions Strong biosimilars volume +4% at CC uptake across all regions 5.0 5.2 0.3 -0.1 Price erosion of 3% pts, in line +7% -3% stable with expectations FX stable compared to prior H1 2024 Volume
Slide 20: Strong profitability driven by success in biosimilars and operating leverage
Strong profitability driven by success in biosimilars and operating leverage Summary core P&L Core gross profit improvement from in USD millions favourable product mix from double- Change Change digit biosimilars growth. Operational H1 2025 in % at CC % improvements were offset by price erosion and
Slide 21: Core EBITDA margin improvement reflected improving mix and cost leverage & discipline
Core EBITDA margin improvement reflected improving mix and cost leverage & discipline Core EBITDA margin % of net sales Favourable product mix from +2.5% pts double-digit biosimilars -0.2% 0.1% 20.0% growth, partly offset by impact -1.4% 2.1% 17.5% 1.9% of price erosion Benefit from SG&A and D&R exp
Slide 22: Mix and operating leverage to drive second-half sequential margin expansion
Mix and operating leverage to drive second-half sequential margin expansion Core EBITDA Summary Core P&Lmargin % of net sales Continued improvements in mix from double-digit biosimilars growth and launches 20.0% Operating leverage driven by inflation less than net-sales growth FY 2025 core EBITDA ma
Slide 23: Management free cash flow more than doubled in H1
Management free cash flow more than doubled in H1 H1 2025 management free cash flow Working-capital improvements partly in USD millions driven by factoring of our receivables 1,046 9 (91) Capex includes ongoing investment in (183) Slovenia, investments in separation- related investments in facilitie
Slide 24: Net debt, excluding foreign exchange, broadly unchanged
Net debt, excluding foreign exchange, broadly unchanged Net debt in USD billions Gross debt (excl. FX): marginal increase, reflecting bond Jun Dec Change Change issuances, partly offset by 2025 2024 excl. FX repayment of term loans Gross debt 5.3 4.5 0.8 0.2 FX impact on gross debt due to weaker USD
Slide 25: Strengthened balance sheet and liquidity to support future growth
Strengthened balance sheet and liquidity to support future growth Non-current financial debt by maturity1 in USD millions New USD 2.0 billion multi-currency revolving credit facility replacing initial and unutilized USD 1.25 1,000 billion facility Dual-tranche CHF 400 million and 500 single-tranche
Slide 26: Investments required to transition from former parent peaked in 2024; substantial decreases thereafter
Investments required to transition from former parent peaked in 2024; substantial decreases thereafter Opex one-off costs1 in USD billions One-time separation investments in IT, 0.7 manufacturing and development capabilities ~0.5 Transformation to simplify our 0.3 organizational structure and create
Slide 27: Creating value with additional investments in growth opportunities and efficiencies
Creating value with additional investments in growth opportunities and efficiencies Cumulative capex 2025 - 2028 in USD billions Manufacturing: Extension of internal biosimilars 2.2 manufacturing capacity and internalization of fill & finish 0.6 capacity 1.2 Intangible: Intangible 0.4 investments ma
Slide 28: Mid-term outlook
Mid-term outlook Net-sales growth Core EBITDA margin at constant currencies % of net sales 24 to 26% Mid-single 20.1% 9% digit1 FY 2024 Mid-term FY 2024 Mid-term (2028E) (2028E) Dividend policy % of core net income Increasing from 24% in 2025 to 30% - 40% in the mid term 1. Per annum 28 Investor pre
Slide 29: Full-year 2025 guidance confirmed
Full-year 2025 guidance confirmed Net-sales growth Mid-single digit % at constant currencies Core EBITDA margin Around 21% % of net sales Price erosion of low to mid-single digit Key assumptions New EU tariff of 15% applicable Foreign-exchange impacts: based on spot rates1 Net sales +2% pts Core
Slide 30: Appendix
Appendix SANDOZ
Slide 31: Global biosimilars pipeline (1/3)
Global biosimilars pipeline (1/3) Key near-term launches and assets in clinical development Originator net Own / targeted In-house / Potential launch sales targeted Current status brand partnered dates1,2 (USD bn)1 EnzeevuTM and Afqlir® Regulatory approval in Europe Europe: Q4 2025 9 In-house aflibe
Slide 32: Global biosimilar pipeline (2/3)
Global biosimilar pipeline (2/3) Assets in regulatory review Own / targeted Originator net sales In-house / Current status brand targeted (USD bn)1 partnered Herwenda® Regulatory approval in Europe 2 Partnered trastuzumab Regulatory submission in US Avzivi® Regulatory approval in Europe 2 Partnered
Slide 33: Global biosimilars pipeline (3/3)
Global biosimilars pipeline (3/3) Assets in technical development Targeted Originator net sales In-house / brand targeted (USD bn)1 partnered Darzalex® daratumumab SC 17 Partnered 9 additional assets in early development Enhertu® targeting 15 Partnered trastuzumab deruxtecan USD 56 bn of Tecentriq®
Slide 34: Investor Relations contacts
Investor Relations contacts Craig Marks Tamara Hackl Rupreet Sandhu Katie Fischer Head of IR Senior Director, IR Senior Director, IR Co-Ordinator, IR +44 7818 942 383 +41 7979 052 17 +41 7941 054 72 +41 7950 051 53 34 Investor presentation investor.relations@sandoz.com
Slide 35: Thank you
Thank you SANDOZ