STADA Arzneimittel — Investor Presentation (November 2024)
103 slides from STADA Arzneimittel's investor presentation, November 2024
Slide 1: Caring for People's Health – Company Presentation
Caring for People’s Health Company Presentation November 2024
Slide 2: Important Notice
Privileged and Confidential Important Notice THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH
Slide 3: Important Notice
Privileged and Confidential Important Notice Certain statements in this Presentation are forward-looking statements, including the presentation of data for the financial year 2024 and mid-term financial targets. Forward looking statements are statements that are not historical facts and may be ident
Slide 4: Important Notice
Privileged and Confidential Important Notice To the extent available, the industry, market and competitive position data contained in this Presentation has come from official, publicly available or third-party sources. Third party industry publications, studies and surveys generally state that the d
Slide 5: Introduction
Introduction Privileged and Confidential 5
Slide 6: A leading supplier of healthcare products across Self-Care, Primary Care and Specialty Care
Privileged and Confidential A leading supplier of healthcare products across Self-Care (Consumer Healthcare), Primary Care (Generics) and Specialty Care (Specialty), fully integrated across global product development, procurement and manufacturing, and commercialization 6
Slide 7: STADA – A leading supplier of Healthcare products
STADA – Introduction Who We Are Privileged and Confidential STADA – A leading supplier of Healthcare1 products Key financials 2023 Revenues by segment2 Revenues by product2,3,4 Revenues by country2,3,5 Specialty Consumer Bortezomib Versatis® Ocrevus® Kinpeygo® €3.7bn Hukyndra® (“Sx”) Healthcare Grip
Slide 8: Since 2017, significant transformation of a ~130 year heritage company
STADA – Introduction Where we come from Privileged and Confidential Since 2017, significant transformation of a ~130 year heritage company into a leading supplier of Healthcare1 products Revenues (€bn) Adj. EBITDA (€bn) CAGR CAGR +14% 3.7 0.8 +20% 3.3 0.7 2.9 0.5 2017 2021 2022 2023 2017 2021 2022 2
Slide 9: STADA follows a clear cultural and strategic framework
STADA – Introduction How we operate Privileged and Confidential STADA follows a clear cultural and strategic framework Purpose “Caring for people’s health as a trusted partner” “To be the partner of choice in Consumer Health, Generics and Vision Specialty continuously outgrowing the industry in term
Slide 10: STADA – A distinctive investment case in Healthcare
Privileged and Confidential Focused on large, mostly non-cyclical markets growing 1 mid single to low double digit Track-record of outperforming relevant markets1 with 2 leading positioning and attractive risk profile Symbiotic segments with a differentiated strategy for 3 Consumer Healthcare, Gener
Slide 11: Focused on large, growing and mostly non-cyclical European Healthcare markets
STADA – Introduction Markets Privileged and Confidential 1 Focused on large, growing and mostly non-cyclical European Healthcare markets Consumer Healthcare Market Generics Market Specialty Market European Consumer Healthcare market1, EUR bn gross European Generics2 market3, EUR bn gross sales Europ
Slide 12: Consistently outperformed relevant European markets driven by strong organic growth
STADA – Introduction Markets Privileged and Confidential 2 Consistently outperformed relevant European markets driven by strong organic growth Consumer Healthcare (40%1) Generics (40%1) Specialty (20%1) Fastest-growing major A leading Generics player Innovative Specialty Generics Consumer Healthcare
Slide 13: Three distinct strategies to differentiate STADA in each segment
STADA – Introduction Segments Privileged and Confidential 3 Three distinct strategies to differentiate STADA in each segment Consumer Healthcare Generics Specialty • Driving portfolio of Local Hero brands1 • Deliberate geographic footprint (e.g. • Build and grow portfolio with complex, across OTC ca
Slide 14: STADA realizes symbiotic effects across the segments and value chain
STADA – Introduction Segments Privileged and Confidential 3 STADA realizes symbiotic effects across the segments and along the entire value chain Synergy area Consumer Healthcare Generics Specialty Commerciali- 1 zation/GTM Broad and symbiotic coverage (e.g. shared field force) API1 and packaging ma
Slide 15: All three segments have a highly complementary financial profile
STADA – Introduction Segments Privileged and Confidential 3 All three segments have a highly complementary financial profile Consumer Healthcare Generics Specialty Continued financial Peak Revenues Peak Revenues 1 Product lifecycle investments in long in first year in 5 to 10 years term brand buildi
Slide 16: STADA's 5 strategic pillars for continued outperformance
STADA – Introduction Strategic Pillars Privileged and Confidential 4 STADA’s 5 strategic pillars for continued outperformance Strong Portfolio Low-cost Efficient and Growth marketing and acceleration via operating model reliable supply culture sales capabilities launches, BD&L chain and M&A Flexible
Slide 17: Strong product development capabilities with a deep project pipeline
STADA – Introduction Strategic Pillars Privileged and Confidential 4 STADA has strong product development capabilities with a deep project pipeline of >150 internal developments Product development geographical footprint and setup Core capabilities Site Country Product Development Capabilities Hudde
Slide 18: Strong BD&L and M&A capabilities integral to strategy
STADA – Introduction BD&L and M&A Privileged and Confidential 4 STADA has strong BD&L1 and M&A capabilities which are integral to its strategy Broad network of high-quality co-development and in-licensing partners STADA has an extensive M&A track record ~90 ~4% >100 >20 >€1bn ~2% avg. BD&L deals p.a
Slide 19: Operating model of entrepreneurial country teams with selected global functions
STADA – Introduction Lean HQ & low-cost footprint Privileged and Confidential 4 Operating model of entrepreneurial country teams combined with selected global functions and TechOps at scale based on STADA’s culture STADA organization set-up Key aspects Commercial TechOps Global portfolio Business fu
Slide 20: Growth culture drives performance at STADA
STADA – Introduction Growth Culture Privileged and Confidential 4 Growth culture drives performance at STADA 89% 84% confidence that STADA I am proud to work continues to achieve its for STADA1 84% business objectives1 Industry avg.: Industry avg.: €XXXm 76%2 84%2 €XXXm STADA cares for its EBITDA 81
Slide 21: Culture drives performance at STADA
STADA – Introduction Growth Culture Privileged and Confidential 4 Culture drives performance at STADA 4 STADA - Acting in line with values 3"I amSTADA proud -toCaring work for forSTADA" employees 1 2 "I 2 amSTADA proud -toThe work for STADA" place to be NTM net sales growth (%) "I 1 amProud proud em
Slide 22: STADA is on track to achieve ambitious ESG targets
STADA – Introduction ESG Privileged and Confidential 4 STADA is on track to achieve ambitious ESG targets 2023: 49%1 2023: 0.281 +50% <0.30 renewable electricity by 2030 Lost Time Incident Rate (LTIR) by 2025 2023: ~ -25%1 2023: 67% 42% >90% reduction of GHG emissions by 2030 priority suppliers with
Slide 23: STADA is ranked in the 3rd percentile within Pharmaceuticals
STADA – Introduction ESG Privileged and Confidential 4 STADA is ranked in the 3rd percentile within Pharmaceuticals ESG rating highlights 18.1 Sustainalytics ESG risk rating score (Low risk)1 Strong ESG risk management (61.2) #3rd percentile within Pharmaceuticals (11th out of 424 companies)2 Source
Slide 24: Board of Directors based on Dutch Corporate Structure
STADA – Introduction Governance Privileged and Confidential 4 Board of Directors based on Dutch Corporate Structure with an Independent Chairman Chair We envision a well-rounded Board of Directors that mirrors STADA’s commitment to excellence and innovation, aligning with best corporate governance p
Slide 25: Strong Revenues and Adj. EBITDA growth with margin expansion
STADA – Introduction Financials Privileged and Confidential 5 STADA delivers strong Revenues and Adj. EBITDA growth with Adj. EBITDA margin expansion Revenues (€m) Adj. EBITDA (€m) CAGR CAGR +14.4% +20.3% Segment Adj. EBITDA margin Group 19.0% 20.1% 21.0% 3,735 CHC 19.9% 25.3% 25.2% 3,298 Generics 2
Slide 26: Key Takeaways
STADA – Introduction Summary Privileged and Confidential Key Takeaways STADA with its strong growth culture has a proven track record of outperforming the industry organically across all three segments Symbiotic business across Consumer Healthcare, Generics and Specialty with leading market position
Slide 27: Consumer Healthcare (CHC): Local Hero brands for strong performance
Consumer Healthcare (CHC): Local Hero brands for strong performance Privileged and Confidential 27
Slide 28: Consumer Healthcare Overview
Consumer Healthcare Overview Privileged and Confidential STADA – The fastest-growing Consumer Healthcare Business in Europe1, driven by specific Go-To-Market approach 23% 16% #4 Other Revenues CAGR Organic Revenues in CHC Europe2 55% CAGR 2021-2023 5% 2021-2023 5% €1.5bn Spain 3% Revenues 2023 Italy
Slide 29: Large, growing and resilient European Consumer Healthcare market
Consumer Healthcare Market Privileged and Confidential Addressing the large, growing and resilient European Consumer Healthcare market European Consumer Healthcare market1 (€bn) Accelerating growth drivers CAGR +2.3% +4.0% +2.2% +3.0% +5.2% Increasing proportion of older people and population growth
Slide 30: STADA is leading in market share gains in European market
Consumer Healthcare Market Privileged and Confidential STADA is leading in terms of market share gains in European market 2019: 2023: STADA #10 in the market with 1.9% market share1 STADA #4 in the market with 2.8% market share1 European market share by gross sales (2019) European market share by gr
Slide 31: STADA is outgrowing the top global CHC companies
Consumer Healthcare Market Privileged and Confidential STADA is outgrowing the top 10 global CHC companies 2023: 2023: Top 10 global CHC players - Market share by value1 Top 10 global CHC players – Gross sales growth by value vs PY1 Haleon 5.9% 8.6% Kenue 4.1% 5.5% Sanofi 3.9% 4.9% Bayer 3.7% 3.7% P
Slide 32: Delivering strong double digit growth across Europe
Consumer Healthcare Regions Privileged and Confidential Delivering strong double digit growth across Europe STADA Consumer Healthcare Revenues (€bn) 2.5 Organic CAGR CAGR 21-231 +16% Others 26% Serbia 18% 2 CAGR Poland 13% +23% 1.5 France 1.5 37% 1.3 Belgium 10% 1.0 Kazakhstan 48% 1 Spain 16% Italy
Slide 33: STADA's local operational focus is a competitive advantage
Consumer Healthcare Strategy & Value pillars Privileged and Confidential STADA’s local operational focus is a competitive advantage STADA's strategy Typical industry strategy Local vs. HQ Local entrepreneurship vs Central headquarters driven with lean headquarters Brand type Local Hero brands vs Glo
Slide 34: Brand portfolio covers all main consumer health categories
Consumer Healthcare Portfolio Privileged and Confidential STADA’s brand portfolio covers all main consumer health categories Cough & Cold Derma Pain & Relief Gastro VMS¹ Other CHC • Nasal decongestant • Anti-dandruff • Antivaricose • Laxatives • Mineral supplements • Sleeping remedies • Cough relief
Slide 35: Portfolio of Local Hero brands provides a flexible growth platform
Consumer Healthcare Local Hero brands Privileged and Confidential STADA’s portfolio of Local Hero brands1 provides a flexible growth platform Number of Local Hero1 brands2 STADA’s Local Hero brands3 Europe and Eurasia By country 235 21 Other4 61 17 228 17 6 16 7 7 16 226 7 89 15 9 9 10 158 By catego
Slide 36: Local Hero brands drive growth across our top markets
Consumer Healthcare Local Hero brands Privileged and Confidential STADA's Local Hero brands drive growth across our top markets Local Hero brand examples in top 6 CHC markets1 GERMANY UK FRANCE ITALY SPAIN POLAND 103% 5% 46% 13% 15% 48% Revenues CAGR 2021-20232 Revenues CAGR 2021-20232 Revenues CAGR
Slide 37: Proven Local Hero playbook accelerates growth
Consumer Healthcare Local Hero brands Privileged and Confidential STADA’s proven Local Hero playbook accelerates growth through localized strategies STADA's brand acceleration levers Select brand examples Brand (re)activation awake dormant equity to appeal to consumers and pharmacies Within a brand
Slide 38: Opportunity to wake up a further >130 Sleeping Beauty brands
Consumer Healthcare Sleeping Beauty brands Privileged and Confidential Prime opportunity to wake-up a further >130 Sleeping Beauty brands Selected Sleeping Beauty brands1,2 STADA’s Sleeping Beauty playbook Sleeping Beauties Cough Pain & Gastro to be accelerated via proven playbook & Cold Relief 1 Id
Slide 39: Track record of converting Sleeping Beauty brands into Local Heroes
Consumer Healthcare Sleeping Beauty brands Privileged and Confidential STADA has a successful track record of converting Sleeping Beauty brands into Local Hero brands Lisomucil – Cough & Cold Elotrans – Rehydration and diarrhea Targeted TV campaigns and successful brand extensions to build a Success
Slide 40: Product development a differentiator and key driver of growth in CHC
Consumer Healthcare Product launches Privileged and Confidential Product development is a differentiator for STADA and a key driver of growth in Consumer Healthcare Revenues growth from launches Launches by category 2023 Cough Pain Derma Gastro VMS Hygiene Other & Cold & Relief Easter Europe Baltics
Slide 41: Accelerating growth via e-Commerce
Consumer Healthcare e-Commerce Privileged and Confidential Accelerating growth via e-Commerce in profitable high growth markets E-Com Revenues1 STADA's e-Com acceleration playbook ~+30% 1 Focus e-Com efforts on countries with substantial e-Com size already and future growth potential ~9% of total CH
Slide 42: Digital capabilities drive high customer engagement
Consumer Healthcare Digital capabilities Privileged and Confidential STADA's digital capabilities drive a high level of engagement with customers Digital medium Metric1 Description Example >300m impressions p.a. Company & brand webpages tailored Local Hero 474 to engage with consumers and enable Web
Slide 43: STADA is the #1 deal maker in Consumer Healthcare
Consumer Healthcare M&A Privileged and Confidential STADA is the #1 deal maker in Consumer Healthcare1 and partner of choice for those looking to divest brands > 200 brands acquired across all segments between 2018 and 2023 Critical M&A CHC Success Factors • Experienced integrator of brands into bro
Slide 44: Key Takeaways
Consumer Healthcare Summary Privileged and Confidential Key Takeaways STADA is the fastest-growing company among the top 10 global CHC players1, ranked #4 in the attractive €35bn European Consumer Healthcare market (in 2023) Proven playbook with >230 Local Hero brands and the opportunity to wake up
Slide 45: Generics: Strong generics player focused on highly attractive markets
Generics: Strong generics player focused on highly attractive markets Privileged and Confidential 45
Slide 46: Generics Overview
Generics Overview Privileged and Confidential STADA – A leading Generics player in Europe and a growing business in Eurasia and Emerging Markets France 7% 7% #4 ~85% Spain organic player Europe, historic2 + targeted3 7% €XXXm Revenues CAGR leading position Loss of Exclusivity Serbia 8% (2021-2023) i
Slide 47: Large, growing, fragmented European Generics market
Generics Market Privileged and Confidential STADA addresses the large, growing, complex, fragmented and highly attractive European Generics market …requiring deep local skill and …and fragmented with competitive Large and growing market… localized GTM1 approach… landscape Gross sales by geography, €
Slide 48: European market more attractive than the US market
Generics Market Privileged and Confidential The European market is a fundamentally more attractive market than the US market Characteristics of the EU & US Market Characteristics of the EU Generics market Characteristics of the US Generics market Market access & EMA >30 FDA regulatory Central regula
Slide 49: Market growth expected to accelerate on large profit pool of LoEs
Generics Market Privileged and Confidential Market growth is expected to accelerate based on a large profit pool of LoEs European Generics market 2019-2028E, gross sales (€bn) 5-6% 7 >33 +4.5% 2 0 3 26 1 0 22 Further potential upside through increased Gx penetration and potential easing of price pre
Slide 50: Well positioned to take advantage from increasing Generics penetration
Generics Market Privileged and Confidential STADA is well positioned to take advantage from increasing Generics penetration Generics penetration by country Untapped off-patent market Bn std. units of Generics vs. total volume (incl. non-Generics) • Generics accounting for ~66%1 of 2023 vs. +3.2% +0.
Slide 51: Market opportunity set to expand on blockbuster LoEs
Generics Market Privileged and Confidential STADA’s market opportunity is set to expand on the back of blockbuster LoEs Value of non-Specialty LoEs1 in Europe (originator gross sales, €bn) Highlights Forecasted 5.8 5.6 • Full visibility on LoE pipeline based on 5.2 5.3 €4.8bn originator drugs' paten
Slide 52: #4 Generics player in Europe with focus on retail
Generics STADA Positioning Privileged and Confidential STADA is the #4 Generics player in Europe with a deliberate focus on retail Generics in attractive geographies Generics Revenues (€bn) Strong focus on Europe Vs. 6% Gx market gross sales CAGR • STADA is the #4 Generics player in Europe +7%(2) wi
Slide 53: Distinct strategic differentiators vs. competitor archetypes
Generics STADA Positioning Privileged and Confidential STADA has distinct strategic differentiators vs. all competitor archetypes Strategic differentiators of STADA vs. competitor clusters Tailored business model Global Regional Local Indian • Strong commercial platform based on players champions ch
Slide 54: Highly tailored GTM models and excellent local execution
Generics STADA Positioning Privileged and Confidential STADA performs strongly across markets due to highly tailored GTM models and excellent local commercial execution Retail segment only Every market has local channel differences… …requiring a differentiated approach to GTM strategy Nordics German
Slide 55: Broad INN portfolio covers all therapeutic areas
Generics STADA Positioning Privileged and Confidential STADA’s broad and comprehensive INN portfolio covers all therapeutic areas1, with over 16k SKUs Nervous Alimentary Tract & Anti- Urology & Musculo-Skeletal Respiratory Cardiovascular System & Pain Metabolism Infectives Sex Hormones System System
Slide 56: Strong track record of first-to-market launches
Generics Launch Performance Privileged and Confidential STADA has a strong track record of first-to-market launches with potential for further growth with broad coverage of future LoEs STADA’s robust launch performance Strong coverage and launch capabilities Market value coverage for top 20 LoE laun
Slide 57: Key Takeaways
Generics Summary Privileged and Confidential Key Takeaways STADA plays in the highly attractive European market: Large (€26bn generics gross sales in 2023), accelerating in growth (5-6% CAGR ‘23-’28E), with complex GTM framework and thus very profitable Leading positions in attractive and profitable
Slide 58: Specialty: Partner of Choice for Complex and High-Value Therapies
Specialty: Partner of Choice for Complex and High-Value Therapies Privileged and Confidential 58
Slide 59: Specialty Overview
Specialty Overview Privileged and Confidential STADA Specialty – Successfully developing and commercialising high-value treatments and delivering double-digit growth Innovative 16% 6/6 >300 customer-facing Revenues CAGR first-attempt FTEs in 30 (2021-2023) EMA approvals markets2 Biosimilars €XXXm €0
Slide 60: Specialty portfolio well balanced with high growth and stability
Specialty Overview Privileged and Confidential STADA Specialty portfolio is well balanced with high-growth and high stability STADA Specialty Revenues (including product category split for 2023) (€m) Description of product categories Innovative Higher 16%(2) 749 Drugs w/ market exclusivity addressin
Slide 61: Broad expertise across therapeutic areas
Specialty Overview Privileged and Confidential STADA Specialty has broad expertise across therapeutic areas and proven ability to build new capabilities Product category Innovative Biosimilars Specialty Gx (incl. branded Gx) • Neurology: Advanced Parkinson’s Disease, Multiple • Rheumatology: Rheumat
Slide 62: Dedicated M&S platform ready to launch complex products
Specialty M&S Platform Privileged and Confidential Dedicated M&S platform that is tailored to product/market needs and is ready to launch additional complex products Go-to-market channels for STADA’s Specialty portfolio1 STADA Specialty M&S Footprint4 Nordics WE2 EE3 Country >290 Sales Reps & Key Ac
Slide 63: Lecigon and Kinpeygo demonstrate ability to launch complex therapies
Specialty Innovative Specialty Privileged and Confidential Lecigon and Kinpeygo demonstrate STADA’s ability to launch complex innovative therapies and establish new standards of care Lecigon® Kinpeygo® Launch partner & competitive edge Advanced Parkinson’s disease Immunoglobulin A nephropathy (IgAN)
Slide 64: Evaluating a large funnel of innovative therapy opportunities
Specialty Innovative Specialty Privileged and Confidential STADA is evaluating a large funnel of opportunities for additional launch of innovative therapies STADA’s Innovative opportunity screening criteria Low develop- Attractive niche market Fit to portfolio ment risk Filter Close to launch Niche
Slide 65: Movymia and Oyavas have taken significant market share
Specialty Biosimilars Privileged and Confidential Movymia® (Teriparatide) and Oyavas® (Bevacizumab) have taken significant market share showcasing the strength and breadth of STADA biosimilars Total European gross sales (€m) CAGR Total European gross sales (€bn) CAGR ’21-’23 ’21-’23 252 211 193 203
Slide 66: Steady stream of high-value biologic LoEs on the horizon
Specialty Biosimilars Privileged and Confidential Steady stream of high-value biologic LoEs is on the horizon and STADA is well positioned as partner of choice for biosimilars Biosimilar LoE Pipeline Comments LoE value incl. STADA's coverage (€bn)1 17.0 • STADA proactively monitors upcoming Biologic
Slide 67: Covers majority of expanding specialty generics LoEs
Specialty Specialty Generics Privileged and Confidential STADA covers the majority of expanding specialty generics LoEs with strong partners Specialty Generics LoE Pipeline(1) Comments LoE value incl. STADA's coverage (€bn) • Strong track record of first-to-market launches based on 8.6 development,
Slide 68: Key Takeaways
Specialty Summary Privileged and Confidential Key Takeaways Specialty is the fastest-growing and strongly profitable segment within STADA and includes the product categories Innovative, Biosimilars and Specialty Generics STADA's Specialty platform at-scale is ready to take advantage of favorable sec
Slide 69: Technical Operations: Excellence in Manufacturing, Quality and Procurement
Technical Operations: Excellence in Manufacturing, Quality and Procurement Privileged and Confidential 69
Slide 70: TechOps provides reliable, competitive and compliant supply
TechOps Overview Privileged and Confidential STADA’s TechOps organization provides reliable, competitive and compliant supply with a network of internal sites and external partners >1.1bn >24,000 >6,800 17 “Best-Cost” packs SKUs FTEs¹ sites in 11 countries Focus €XXXm Reliable €XXXm and Flexible Sup
Slide 71: ROI driven make-or-buy process ensures competitive COGS
TechOps Competitive COGS Privileged and Confidential STADA’s ROI driven make-or-buy decision process ensures competitive COGS Share of COGS1 Key pillars for competitive COGS • External Supply Organization (ESO) deployed globally FDF 2: • "External as internal" mindset External Sourcing Out-standing
Slide 72: Global manufacturing network focuses on best-cost countries
TechOps Competitive COGS Privileged and Confidential STADA’s global manufacturing network focuses on “best-cost countries” STADA internal manufacturing sites % share of Site Country CHC Gx Sx plants '23 1 Bad Vilbel High-cost countries 35% 2 Uetersen Germany 3 Pfaffenhofen3 Best-cost 14 Miyun countr
Slide 73: Invested in TechOps platform for future growth
TechOps Scalable Platform Privileged and Confidential STADA invested in its TechOps platform to build processes, capacity and people for future growth Capacity development of key technologies, with focus on best-cost countries from 2019 onwards continuously accelerated, i.e., Romania investment >€70
Slide 74: Strong partnerships and external-as-internal approach
TechOps Competitive COGS Privileged and Confidential STADA’s strong partnerships and “external as internal” approach ensures competitive, compliant and reliable supply External Supply Organization managing manufacturing Direct procurement lever (goods for internal manufacturing) outside of STADA wit
Slide 75: Six quality hubs drive no failure culture
TechOps Fit-for-purpose quality Privileged and Confidential STADA’s six quality hubs drive “no failure culture” and supply resilience Quality footprint ready to support future growth … … and track record of no failure culture Bad Vilbel Vrsac Inspection Mumbai Shanghai Quality hub / Quality hub Audi
Slide 76: Key Takeaways
TechOps Summary Privileged and Confidential Key Takeaways Attractive COGS as clear competitive advantage driven by low-cost internal production and well managed external network/central purchasing Flexible and reliable Supply Chain with “fit for purpose” robust quality systems for all the segments S
Slide 77: Financials
Financials Privileged and Confidential 77
Slide 78: Basis of Financial Information
Financials Intro Privileged and Confidential Basis of Financial Information • Financial year ending 31-December General • Reporting currency is Euro • Consolidated financial statements prepared in line with IFRS1 Periods covered and • Audited consolidated financial statements for 2021, 2022 and 2023
Slide 79: A highly diversified portfolio providing a broad growth-base
Financials Overview Privileged and Confidential A highly diversified portfolio providing a broad growth-base Revenues by country – 20231,2 Revenues by segment – 2023 Revenues by product – 20231,3 New since 2019 Specialty Versatis® Bortezomib Consumer Ocrevus® Healthcare Rest of World4 Specialty Cons
Slide 80: Broad geographic footprint with most countries growing strongly
Financials Revenues geography Privileged and Confidential Broad geographic footprint with vast majority of countries growing strongly Revenues by country (€m) – 20231,2 Comments % of Group Revenues CAGR 2021 – 2023 0 50 100 150 200 250 300 350 400 700 • Long list of countries with scale Germany 18%
Slide 81: Diversified portfolio with no product larger than 4% of Revenues
Financials Revenues by product Privileged and Confidential Diversified portfolio with no product larger than 4% of Group Revenues Revenues by product – 20231,2 Comments % of Group Revenues • CHC with over 1,000 products Grippostad® 1.6% (in the sense of brand or API- Consumer Nizoral® 1.5% name), th
Slide 82: Strong Revenues growth with 12% organic CAGR 2021-2023
Financials Revenues Privileged and Confidential Strong Revenues growth with 12% organic CAGR 2021-2023 Revenues (€m) Comments • Double-digit growth +12% in the past two years • 12% organic growth CAGR from 2021 to 2023 +14% 3,735 • Successful integration of 3,298 acquisitions contributing ~2% 2,852
Slide 83: Strong growth driven by volume and launches in all segments
Financials Segment overview Privileged and Confidential Strong growth driven by volume and product launches in all three segments, Consumer Healthcare driving price increases and inorganic growth1 Consumer Healthcare Generics Specialty CAGR +23% +7% +16% 1,281 1,489 1,307 1,414 1,497 Revenues (€m) 9
Slide 84: Adj. Gross Margin expanding despite high inflation
Financials Adj. Gross Profit Privileged and Confidential Adj. Gross Margin expanding despite high inflation in 2022 and 2023 Adj. Gross Profit1 (€m) Comments Despite inflation-peak during 2022- +15% 2023, Adj. Gross Margin expanding based on: 1,844 1,646 • Pricing on CHC brands 1,401 • Cost savings
Slide 85: Fully-invested SG&A with Opex growing slower than Revenues
Financials Opex Privileged and Confidential Fully-invested SG&A infrastructure with Operating Expenses growing slower than Revenues Operating Expenses (€m) Comments • Largest component of Operating Expenses are Selling Expenses, +12% mainly: 1,173 • Field Force cost with >2,000 1,069 97 sales reps a
Slide 86: Adj. EBITDA margin expansion of ~200bps to 21.0%
Financials Adj. EBITDA development Privileged and Confidential Adj. EBITDA margin expansion of ~200bps over the past two years to 21.0% Adj. EBITDA1 (€m) Comments • Significant Adj. EBITDA growth +20% with 20% CAGR compared to 14% Revenues CAGR 2021-2023 784 664 • Adj. EBITDA margin expansion of ~20
Slide 87: All three segments with attractive margins and double-digit EBITDA growth
Financials Segment overview Privileged and Confidential All three segments with attractive margins and double-digit Adj. EBITDA growth Consumer Healthcare Generics Specialty CAGR +38% +10% +11% Adj. EBITDA margin1 2023 25.2% 24.6% 31.0% 375 369 324 303 338 196 232 188 178 Adj. EBITDA (€m) 2021 2022
Slide 88: Current trading: 1H'24 growth and margin expansion
Financials 1H’24 Privileged and Confidential Current trading: continued high organic Revenues growth and ~100bps Adj. EBITDA margin expansion in 1H'24 Revenues (€m) Adj. EBITDA (€m) Comments +9% Margin 21.9% 22.8% • Continued above market Revenues growth in 1H’24 driven by Biosimilars growth in +9%
Slide 89: Strong cash generation in 1H'24
Financials Core Free Cash Flow Privileged and Confidential Strong cash generation in 1H’24 Consolidated Cash Flow Statements and Core Free Cash Flow1 (€m) Comments 2021 2022 2023 1H’23 1H’24 Adj. EBITDA 541 664 784 406 462 Special item adjustments 35 12 (60) (1) (19) • Strong Gross Cash Flow from In
Slide 90: 2024E outlook and mid-term guidance
Financials Guidance Privileged and Confidential STADA’s 2024E outlook and mid-term guidance Guidance: € or growth rate percentage ranges 2023 Results KPIs: 2024 Estimate Mid-term Guidance Revenues €3,735m Adj. cc Revenues1 ~€4.0bn to ~€4.06bn Mid to high single digit Growth expected to be front-end
Slide 91: Capital allocation framework
Financials Capital allocation Privileged and Confidential Capital allocation framework Organic growth investment Leverage2 Target: • Opex to support growth – under-proportionate to Pro forma 2025E Mid-term Revenue growth (operating leverage) 2024E3 • Net Working Capital – inventory-levels expected B
Slide 92: Modelling guidance – from Adj. CC EBITDA to Net Income
Financials Modelling support Privileged and Confidential Modelling guidance – from Adj. CC EBITDA to Net Income Item Explanation / components 2023 Actual 2024 Mid-term Data in €m 1H’24 + = income, (expense) Mid-term-guidance: Growing faster than Revenue (which is guided to grow in mid- to high-sinlg
Slide 93: Modelling guidance – from Adj. CC EBITDA to Core Free Cash Flow
Financials Modelling support Privileged and Confidential Modelling guidance – from Adj. CC EBITDA to Core Free Cash Flow Cash Flow Statement components Data in €m 2023 1H’24 2024 Preliminary 2024 View Mid-term assumptions Mid-term Adj. EBITDA 784 462 As per 2024 Estimate for Adj. CC EBITDA As per mi
Slide 94: Key Takeaways
Financials Summary Privileged and Confidential Key Takeaways High resilience from diversification across countries, segments and products High growth in both Revenues and Adj. EBITDA High cash generation to de-lever and return cash to shareholders 94
Slide 95: Appendix
STADA Appendix
Slide 96: EBITDA adjustments for underlying EBITDA performance
Appendix EBITDA reconciliation Privileged and Confidential EBITDA adjustments are applied to get a better view of the true, underlying EBITDA performance Comments (in €m) 2021 2022 2023 1 EBITDA adjustments for Purchase Price allocation effects mainly related to EBITDA 577 677 724 valuation-effects
Slide 97: Gross Profit to Adj. Gross Profit reconciliation
Appendix Gross Profit reconciliation Privileged and Confidential Gross Profit to Adj. Gross Profit reconciliation Comments (in €m) 2021 2022 2023 1 Relates to the elimination of subsequent measurement effects, depreciation/amortization expenses, impairment losses and reversals of Gross Profit 1,177
Slide 98: Historical P&L
Appendix Historical P&L Privileged and Confidential Historical P&L Consolidated income statement (€m) Comments 2021 2022 2023 1H’23 1H’24 • Over-proportionate operating Revenues 2,852 3,298 3,735 1,857 2,024 Cost of sales 1,675 1,879 2,119 1,031 1,145 profit growth based on operating Gross profit 1,
Slide 99: Historical Balance Sheet
Appendix Historical Balance Sheet Privileged and Confidential Historical Balance Sheet Consolidated balance sheet - Assets (€m) Comments Assets 2021 2022 2023 1H’24 • Inventory increase in 2023 due Non-current assets 5,594 5,277 4,513 4,489 to deliberate investment to Intangible assets 4,904 4,542 3
Slide 100: Historical Balance Sheet (cont'd)
Appendix Historical Balance Sheet Privileged and Confidential Historical Balance Sheet (cont’d) Consolidated balance sheet - Equity & Liabilities (€m) Comments Equity & Liabilities 2021 2022 2023 1H’24 • Financial Liabilities reduced due Equity (184) (300) (1,112) (1,114) to the deconsolidation of t
Slide 101: Historical Cash Flow Statement
Appendix Cash Flow Statement Privileged and Confidential Historical Cash Flow Statement Consolidated Cash Flow statement (€m) Comments 2021 2022 2023 1H’23 1H’24 • Cash generation from strong Result from continuing operations (244) (169) (124) 77 (1) EBITDA increase (adjusted for Depreciation, amort
Slide 102: Historical Cash Flow Statement (cont'd)
Appendix Cash Flow Statement Privileged and Confidential Historical Cash Flow Statement (cont’d) Consolidated Cash Flow statement (€m) Comments 2021 2022 2023 1H’23 1H’24 Payments for investments in: intangible assets (233) (163) (163) (46) (56) • Investment in intangible assets property, plant and
Slide 103: Russian Affiliate Nizhpharm fully separated from STADA
Appendix Nizhpharm Privileged and Confidential Russian Affiliate Nizhpharm has been fully separated from STADA in September 2023 Key points for background Corporate Structure • Prior Russian subsidiary, Nizhpharm, was fully separated from STADA Group in September 2023 Nidda Midco Sàrl LUX • STADA no
STADA Arzneimittel — Investor Presentation (November 2024) on 6ix