Slide 1: Nine-month sales 2023
October 24, 2023 Nine-month sales 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward‐looking statements that reflect the current views of management, and which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Sandoz Group to differ materially from th
Slide 3: Agenda
Agenda Agenda 1. Highlights 2. Business review 3. Financials 4. Guidance 3
Slide 4: Highlights
Highlights SANDOZ
Slide 5: 9M 2023 Highlights
9M 2023 Highlights Sandoz enters exclusive deal with Nine-month Hyrimoz® launched July 1, 2023 Samsung Bioepis to expand biosimilar net sales in the US offering for immunology patients up 6%1 in constant currencies Sandoz completes acquisition of leading Confirming Tyruko® antifungal agent full-year
Slide 6: Entering a new era with a successful SIX listing
Entering a new era with a successful SIX listing October 4, 2023 Listing on the SIX Swiss Exchange September 15, 2023 Shareholders approve proposed 100% spin-off of Sandoz August 18, 2023 Sandoz publishes Listing Prospectus June 8, 2023 Sandoz presents compelling investment proposition as standalone
Slide 7: Business Review
Business Review 7
Slide 8: Hyrimoz launch marks Sandoz entrance into the US immunology space
Hyrimoz® launch marks Sandoz entrance into the US immunology space Best coverage among adalimumab biosimilars1 Key competitive advantages • #1 ex-US with >100 million 37% patient days of experience • Device recommended among patients and nurses 12% • Contracted with top three PBMs3 and partnership w
Slide 9: Acquisition of leading antifungal agent Mycamine completed
Acquisition of leading antifungal agent Mycamine® completed Anti-infective market Gross sales1, in USD Sandoz is a leader in the large and 9% 2% growing anti-infectives market Mycamine® is the leading global echinocandin, one of three major 19% antifungal classes 19bn +7% Acquisition reinforces glob
Slide 10: New technical development centre in Slovenia to complete our current investment in internal biosimilar capabilities
New technical development centre in Slovenia to complete our current investment in internal biosimilar capabilities Announced in H1 2023 Announced in Announced in July Q3 2023 New biosimilar production Expansion of biosimilar New biosimilar technical plant in Slovenia development center in Germany d
Slide 11: Partner of choice status reaffirmed with recent agreement with Samsung Bioepis
New proposition Partner of choice status reaffirmed with recent agreement with Samsung Bioepis Numerous opportunities for future collaborations Pipeline expansion through partnership to develop and manufacture multiple Approximately 120 biologics are Biosimilars expected to lose exclusivity by 20301
Slide 12: Financials
Financials 12
Slide 13: Nine-month 2023 net sales mix by business and region
Nine-month 2023 net sales mix by business and region (in USD) Biosimilars International 1.6bn 22% 1.8bn 26% 7.1bn 7.1bn 53% +6%1 +6%1 Generics 21% 5.5bn 78% North America Europe 1.5bn 3.8bn Note: Net sales in this document refer systematically to net sales to third parties excluding sales to Novarti
Slide 14: Net sales driven by strong volume growth and price erosion lower than prior year
Net sales driven by strong volume growth and price erosion lower than prior year Net sales In USD bn FX impact of approx. 1% on net +6%1 sales in the first nine months -0.2 9 percentage points volume growth -0.1 7.1 0.7 driven by Biosimilars across all regions and Generics in Europe 6.8 Pricing effe
Slide 15: Top line growth momentum continuing in 2023
Top line growth momentum continuing in 2023 Net sales by business 9M 2023, in USD bn Generics +6%1 Strong cough & cold season 6.8 7.1 Contribution from recent launches 1.4 1.6 +11% Price erosion below prior year Biosimilars 5.3 5.5 +5% Omnitrope® and Hyrimoz® key contributors to growth 9M 2022 9M 20
Slide 16: Strong performance in Europe and International
Strong performance in Europe and International Europe Strong volume growth across Generics Net sales by region and Biosimilars, mainly Omnitrope® 9M 2023, in USD bn and Hyrimoz® +6%1 Significant contribution from strong 7.1 cough & cold season 6.8 Demand for recent launches 1.8 +7% 1.8 1.5 North Ame
Slide 17: Investment grade credit rating confirmed by key rating agencies
Investment grade credit rating confirmed by key rating agencies Strong balance sheet offers future optionality Financing at spin-off through bank loans Baa2 BBB Majority of bank loans expected to be refinanced on the capital stable stable markets Net debt to core EBITDA ratio in the range of 1.7-2.0
Slide 18: Guidance & Outlook
Guidance & Outlook 18
Slide 19: Full-year 2023 guidance confirmed
Full-year 2023 guidance confirmed As of October, 2023 As of June, 2023 Sales growth % in constant currencies Mid-single digit Mid-single digit Core EBITDA ~18-19% ~18-19% % margin on net sales Dividend policy 20-30% 20-30% Full year dividend based on Full year dividend based on % of core net income
Slide 20: Outlook
Outlook Market access Regulatory milestones Corporate events • Hyrimoz® HCF expected • Denosumab expected • Full-year 2023 launch in EU FDA approval results published on March 13, 2024 • Tyruko® expected launch in EU and US • Annual General Meeting on April 30, 2024 20
Slide 21: Q&A
Q&A SANDOZ
Slide 22: Appendix
Appendix
Slide 23: Non-IFRS financial definitions included in this presentation
Non-IFRS financial definitions included in this presentation Core results and other income statement items into USD (excluding the IAS 29 “Financial Reporting in Hyperinflationary Economies” adjustments to the local currency income statements of subsidiaries operating in hyperinflationary economies)