Euroapi Sa · EURONEXT:EAPI
Euroapi Sa — Investor Day (April 2022)
102 slides from Euroapi Sa's investor day presentation, Apr 1, 2022
Slide 1: EUROAPI Capital Markets Day
EUROAPI Capital Markets Day April 1st, 2022
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR FORWARDING, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. BY ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE, OR BY READING THE PRESENTATION SLIDES, YOU ACKNOWLEDGE AND AGRE
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR FORWARDING, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. BY ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE, OR BY READING THE PRESENTATION SLIDES, YOU ACKNOWLEDGE
Slide 4: EUROAPI Capital Markets Day: Agenda
EUROAPI Capital Markets Day: Agenda Sanofi introduction Jean-Baptiste de Chatillon Sanofi CFO Q&A Introduction to EUROAPI, strategy and growth Karl Rotthier EUROAPI CEO Organization, culture and ESG Bruno Laforge EUROAPI Chief HR & Corporate Affairs Market overview and EUROAPI’s positioning Vincent
Slide 5: Jean-Baptiste de Chatillon
Jean-Baptiste de Chatillon Chief Financial Officer
Slide 6: Play to Win: Our six-year plan – ahead of schedule
Play to Win: Our six-year plan – ahead of schedule Today 2020-2022 2023-2025+ • Refocus with decisive actions • Transformative launches • Growth through winning assets • Agile and efficient resource deployment • Margin expansion • Leading R&D productivity 6 Investor Relations
Slide 7: Transforming Sanofi to be focused and agile
Transforming Sanofi to be focused and agile Two year process to carve-out EUROAPI February 24th, 2020 January 18th, 2021 July 2021 Sanofi announced plans to Viviane Monges joins EUROAPI CEO appointed: create EUROAPI and EUROAPI as Chair of the Karl Rotthier initiated carve-out Supervisory Board Marc
Slide 8: Set up EUROAPI with optimal conditions for success
Set up EUROAPI with optimal conditions for success Within Sanofi EUROAPI standalone • Six manufacturing sites mostly captive • Top notch CDMO infrastructure to Sanofi • Customer centric commercial strategy • Reactive commercial strategy • Dedicated management team & support functions • Limited dedic
Slide 9: EUROAPI shares listing through an exceptional dividend
EUROAPI shares listing through an exceptional dividend Advantage of a spin off Right time for EUROAPI listing Reduces execution risk given geopolitics Independence is key for EUROAPI driven market instability • attract new clients • foster culture change A firm execution date (May 6th), if approved
Slide 10: EUROAPI shares distribution: Retained parity
EUROAPI shares distribution Retained parity EUROAPI shares will be distributed1 to all Sanofi’s current shareholders as an exceptional dividend on top of 2021 cash dividend (€3.33/share) • 1 EUROAPI share for 23 Sanofi shares • ~58% of EUROAPI shares distributed 1. Subject to Extraordinary AGM appro
Slide 11: EUROAPI ownership structure
EUROAPI ownership structure ~58% of EUROAPI shares distributed to Sanofi shareholders EPIC Bpifrance Sanofi Sanofi shareholders2 12%1 ~30% ~58% EUROAPI ~50% of EUROAPI shareholders committed to a lock up period Sanofi: 2-year lock up period EPIC Bpifrance: 2-year lock up period L’Oréal: 1-year
Slide 12: EUROAPI: a strong strategic supplier to Sanofi
EUROAPI: a strong strategic supplier to Sanofi Long-term shareholder supporting EUROAPI’s growth potential No double/differentiated voting rights One minority shareholder Board position Long-term MSA1 with 5 year initial term Important customer (present and future) for EUROAPI 1. Manufactu
Slide 13: EUROAPI joining the European listed CDMO peer group
EUROAPI joining the European listed CDMO peer group 3% 34% Revenue Mix 40% 51% 2021 60% 15% 100 100 97% % % Market Cap 48.3 3.2 To be determined 7.6 2.5 (€bn) Revenue 2022e 6.0 1.2 ~1.0 0.6 0.3 (€bn) EBITDA Margin 32% 21% ≥14%1 32% 30% 2022e Small Molecules Biologics Drug Product Peptides & Oligos O
Slide 14: EUROAPI deconsolidation impact for Sanofi implying loss of control
EUROAPI deconsolidation impact for Sanofi implying loss of control 2022 BOI Industrial network Headcount margin1 6 plants ~ 3350 Slightly accretive 1. Business Operating Income margin is a non-GAAP indicator, for a definition see Form 20-F 2021 Item 5 A.1.5. 2 (p55) and Section 3.1.3.2 page 130 of S
Slide 15: An additional dividend in kind through EUROAPI shares distribution
An additional dividend in kind through EUROAPI shares distribution EUROAPI ~58% of Ordinary dividend growth Additional dividend in kind EUROAPI value Total 2021 Ordinary dividend ~€4.2bn 2001 2021 Subject to AGM’s approval on May 3rd, 2022. 15 Investor Relations
Slide 16: Q&A session
Q&A session Jean-Baptiste de Chatillon CFO 16 Investor Relations
Slide 17: EUROAPI: A Global Leader in CDMO & API Solutions
EUROAPI: A Global Leader in CDMO & API Solutions
Slide 18: Introduction to EUROAPI, Strategy and Growth
Introduction to EUROAPI, Strategy and Growth P. 18
Slide 19: Introducing today's presenters
Introducing today’s presenters 29+ 8+ 13+ 30+ 20+ 25+ 31+ 32+ Chief Human Chief Chief Executive Chief Financial Resources & Chief Operating Chief CDMO Chief Scientific Chief Strategy Commercial Officer Officer Corporate Officer Officer Officer Officer Officer Affairs Antoine Laurent Vincent Karl Rot
Slide 20: EUROAPI: a global leader in CDMO and API solutions
EUROAPI: a global leader in CDMO and API solutions Global business with premier European ~€1bn revenues by 2022 manufacturing & development footprint Global #1 in small molecule; ~25%1 CDMO today Haverhill Frankfurt ~200 APIs2 in portfolio; 55% complex & differentiated 30+ CDMO projects targeted on
Slide 21: 150 year heritage and expertise now focused on standalone success
150 year heritage and expertise now focused on standalone success Today Best-in-class Formation of Executing our Inside Sanofi CDMO & API EUROAPI growth strategy ambition Pre-2020 2020-2021 Short-term Medium-term • Predominantly sole • Carve-out from Sanofi • Growth consistent with • Partner of
Slide 22: A dynamic and nimble culture for long-term sustainable value creation
A dynamic and nimble culture has been implemented for long-term sustainable value creation Agile and Customer-centric CDMO flexible organization approach mindset Entrepreneurial Cooperative spirit with ESG focus environment Source Company information P. 22
Slide 23: #1 globally in small molecule API with differentiated technology
#1 globally in small molecule API with differentiated technology & innovative capabilities providing base for rapidly expanding CDMO offering 2021A Sales: €902m2 API Solutions CDMO Supply of differentiated and complex APIs with the Customised API development and flexible manufacturing Overview bro
Slide 24: Strategy focused on clear business and operational levers
Strategy focused on clear business and operational levers Accelerate our CDMO Expand our differentiated Realise standalone Develop our product portfolio activities presence efficiencies • Dedicated team in place • Specialised technology • Innovative API Pipeline • Optimal efficiencies platforms thro
Slide 25: EUROAPI: a unique and attractive investment opportunity
EUROAPI: a unique and attractive investment opportunity 1 CDMO and API champion with global presence, ancient heritage and extensive expertise Attractive €70bn+ market with +6-7% p.a. growth prospects1, backed by positive secular trends and significant regulatory and 2 technical requirements State-o
Slide 26: A global API and CDMO champion
A global API and CDMO champion #1 small molecule API Top 5 ambition in CDMO by 2025 % share1 of total merchant API market (including CDMO) in 2019 % share1 of CDMO market in 2019 2.6% L 4.7% 1.2% eur 1.1% 0.9% c.€1bn Sales by end of 2022 n 1.0% (API Solutions and CDMO) 0.9% teva 0.8% 0.8% teva 0.7%
Slide 27: Attractive €70bn+ market with +6-7% p.a. growth prospects
Attractive €70bn+ market with +6-7% p.a. growth prospects Significant further growth potential in small molecule and large Large merchant API market molecules API market size (2019) Merchant API market revenues, €bn CAGR CAGR Chart Title 16A-19A 19A-24E Small +6% molecules 2019A-2021E CAGR +2% ~€59b
Slide 28: EUROAPI is leading in high growth niches and differentiated segments of API
EUROAPI is leading in high growth niches and differentiated segments of API Large molecules Complex chemistry Fermentation HP-APIs Peptides Oligos Steroids Alkaloids Sartans Anti-infectives B12 & deriv1 Prostaglandins Emerging presence EUROAPI #3 #1 #3 #1 #3 #1 positioning3 Top 52 by Top 32 by 2025
Slide 29: Diversified innovation-led European footprint
Diversified innovation-led European footprint ~330 scientists Critical element of EU API manufacturing network spread across Haverhill 10 105 Frankfurt our 6 sites today Spray drying Peptides & Oligos Process analytical technology Small molecule APIs 45% PhDs or Process engineering engineers Flo
Slide 30: Strong momentum in ongoing portfolio shift towards CDMO
Strong momentum in ongoing portfolio shift towards CDMO Expanding development Clear focus driving the CDMO franchise pipeline Blue chip client base building • 30+ CDMO projects targeted on a rolling ~35% basis Sample CDMO partnerships • Strategic Sanofi CDMO by 2025E partnership Solid CDMO base In
Slide 31: Focused commercial strategy to drive API Solutions
Focused commercial strategy to drive API Solutions Capacity building Cross-selling Pricing enhancements Current API Solutions:1 54% Under from clients that buy 4+ APIs contract of Sales1 c. 30% Under Vitamin B12 Prostaglandins Hormones BUT c.70% order 80-90% >10 tonnes purchase <3 APIs 25-50% 4x out
Slide 32: Strategically important Sanofi relationship alongside independent strategy
While the strategically important Sanofi relationship brings stability and revenue visibility to EUROAPI, we are rolling out our strategy as a fully independent company Four key principles drive our ongoing relationship with Sanofi Arm's length EUROAPI as Sanofi Mutually beneficial aligned on distri
Slide 33: Clear objective to financial performance
Clear objective to financial performance In line with Growth: Above market Below market market 902 Sales (€m) CDMO contribution to total sales to increase from ~25% in 2021A to ~35% in 2025E 1 2021A 2 CDMO Other clients Sanofi 2025E API Solutions >20% Core EBITDA 12.3% Margin 2021A 2 Topline growth
Slide 34: Introducing the EUROAPI Management Team
Introducing the EUROAPI Management Team Employee culture of excellence c.3,350 Global headcount 10 Countries of employee presence c.15 Years of seniority on average Highly experienced executive team Karl Rotthier Antoine Delcour Vincent Touraille Eric Berger 29 8 32 30 Chief Executive Officer Chief
Slide 35: Introducing the EUROAPI Board of Directors
Introducing the EUROAPI Board of Directors Governance standards in line with best industry practices Board of Directors Viviane Monges Chair • Board to consist of 13 members (7 independent) Karl Rotthier Adeline Le Franc EUROAPI Sanofi • Highly qualified Chair (independent): Viviane Monges Jean-Chri
Slide 36: Organization, Culture and ESG
Organization, Culture and ESG P. 36
Slide 37: Our culture will enable career growth opportunities and talent management
Our culture will enable career growth opportunities and talent management Creation of a new innovative Shift to EUROAPI corporate values and A talent management roadmap to align culture API company related behaviors with business strategy To be more agile, flexible, not a heavy process-driven • Tale
Slide 38: Short term and long term incentives aligned with strategy and growth
Short term and long term incentives aligned with the strategy and growth Short term incentives Long term incentives (LTI) at the time of listing • Make sure our employees are fully involved and committed to the future of our company • A robust bonus scheme to support the strategy and takes into cons
Slide 39: Market-leading ESG strategy focusing on four core priorities
EUROAPI has a market-leading ESG strategy focusing on four core priorities contributing to the United Nations Sustainable Development Goals A robust strategy designed inclusive of all stakeholders Medical needs Producing high-quality active ingredients that address a broad range of medical needs Sup
Slide 40: Ambitious Environmental targets
Ambitious Environmental targets, in line with EUROAPI’s position as a market- leader Current status Current targets Environment at core of EUROAPI DNA at site level, all sites being or in the path to be certified ISO50001 2023 • ~ 100% sites certified ISO50001 Frankfurt Since 2012 Ujpest Since 2
Slide 41: Social and Governance matters are a core priority within ESG framework
Social and Governance matters are a core priority within EUROAPI’s ESG framework Current status Current targets Health & Safety at core of EUROAPI DNA at site level, all sites being or in the path to be certified ISO14001 • ~100% sites certified ISO14001 By • Variable pay linked to sustainability /
Slide 42: Market Overview and EUROAPI's Positioning
Market Overview and EUROAPI’s Positioning P. 42
Slide 43: Attractive €70bn+ market with +6-7% p.a. growth prospects
Attractive €70bn+ market with +6-7% p.a. growth prospects Large merchant API market Significant further growth potential in small molecule and CDMO API market size (2019) Chart Title Merchant API market revenues, €bn Small 2019A-2021E CAGR +6% 99 CAGR CAGR +2% due to COVID molecules 16-19A 19-24E ~€
Slide 44: Small molecules continue to drive innovation, increasingly sourced from Biotechs
Small molecules continue to drive innovation, increasingly sourced from Biotechs EUROAPI capable of producing >80% of new drugs More than 65% of approved drugs are small molecules over the past decade EUROAPI capable of producing >80% of new drugs approved, but ADC and mABS Number of drug approvals1
Slide 45: EUROAPI positioned for long-term client relationships in complex API markets
EUROAPI positioned for long-term client relationships in complex API markets Capital and knowledge investments... …supported by favorable market trends Highly specialized Long-term and sticky technological expertise customer relationships Increasing demand for premium and technical know-how APIs Inc
Slide 46: Market landscape and value chain overview
Market landscape and value chain overview Pharma value chain and key API players1 EUROAPI focus Drug substance / Marketing Product API process Drug substance / Drug product (FDF) Packaging and Discovery and finished development development and API manufacturing manufacturing logistics product sales
Slide 47: EUROAPI is the global #1 small molecule API supplier
EUROAPI is the global #1 small molecule API supplier in a highly fragmented market Leading global API player in a highly fragmented market Top Tier API manufacturers, % share of merchant API market (2019) 2.6% Biologics 1.2% 0.9% 0.9% 0.8% 0.7% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 0.5% 0.4% Small <0.3% mol
Slide 48: EUROAPI has ambitions to be a top-5 CDMO player by 2025
EUROAPI has ambitions to be a top-5 CDMO player by 2025 Top 15 small molecule API suppliers' CDMO API market share and revenue split Excluding players not present in small molecules Top 5 ambition by 2025 CDMO small molecules & Pep/Oligo sales (€m) ~4.7% #7 Catalog sales (€m) CDMO biologics only sal
Slide 49: Break
CUfOAPI Break
Slide 50: Technology, R&D and Manufacturing Capabilities
Technology, R&D and Manufacturing Capabilities P. 50
Slide 51: EUROAPI capabilities cover c.80% of FDA approved molecules
EUROAPI capabilities cover c.80% of FDA approved molecules Small molecules and innovative products continue to dominate the list of EUROAPI presence across API categories approved drugs FDA approved drugs between 2016 and 2021 Peptides Ch a r t T it le Small molecules 12 177 O ligos 6 Enzymes & Prot
Slide 52: Multiple levers available to drive innovation
Multiple levers available to drive innovation Molecule / Highly potent API Technology Complex chemistry Fermentation Peptides and oligos mRNA Prostaglandins Linkers / Payload • Advances in science and • New approaches to lower • Limited innovation • Capacity and • State-of-the-art technology • Deliv
Slide 53: Innovation is a core value for EUROAPI
Innovation is a core value for EUROAPI Well-connected and focused R&D organization Haverhill 10 105 Frankfurt Large & experienced ~330 scientists spread across our 6 sites today Peptides & Oligos R&D team Spray drying Scheduled to almost double capacity by 2025 Process analytical technology Smal
Slide 54: EUROAPI possesses critical and integrated scale in a fragmented market
EUROAPI possesses critical and integrated scale in a fragmented market EUROAPI is the largest Small Molecules API manufacturer globally... … with bigger sites Relative sales vs. EUROAPI of key small molecule players1 EUROAPI sites are 2.5 times2 bigger than 100% Western peers' 76% 75% Frankfurt site
Slide 55: In-house capabilities in key technologies along with R&D centers at each site
In-house capabilities in key technologies along with R&D centers at each site already in place to deliver full company strategy Chemistry Fermentation Frankfurt Ujpest Vertolaye Haverhill Elbeuf Brindisi • Solid phase chemistry • Highly potent product • Complex organic • High volume • Large scale •
Slide 56: Manufacturing network is well-invested with capacity development projects
Manufacturing network is well-invested, comprising a comprehensive suite of technologies with further capacity development projects underway to support medium-term growth plan EUROAPI's capacity utilization is at sustainable Additional development projects for key API families are already underway l
Slide 57: All manufacturing sites are FDA & EMA inspected with strong results
All manufacturing sites are FDA & EMA inspected with strong results including no critical finding following regulatory audits Last FDA inspection Last EMA1,2 inspection Client audits % success in audits Date # of critical findings Date # of critical findings Success rate (2018-2021)3 consistent No w
Slide 58: CDMO
CUfOAPI CDMO
Slide 59: Already one of the broadest portfolios in CDMO globally
Already one of the broadest portfolios in CDMO globally Peptides / Oligos Large Only Peptides molecules Biologics Complex chemistry Fermentation Hormones Highly potent Prostaglandins APIs 1 Other Particle engineering & flow chemistry Only flow chemistry Only flow chemistry Only flow chemistry Source
Slide 60: Our CDMO strategy as a standalone entity
Our CDMO strategy as a standalone entity is to make our best-in-class capabilities available to the entire pharma/biotech ecosystem for the first time One of the best CDMO f • Ambition to be a top-5 CDMO player by 2025 • Gradual portfolio shift towards CDMO to drive growth momentum • Best-in-class i
Slide 61: Deep breadth of technologies across the full R&D spectrum powering CDMO offering
Deep breadth of technologies across the full R&D spectrum powering CDMO offering Biochemistry molecules Large molecules Complex chemistry Highly potent (HP-APIs) Solid state derived from fermentation Complex chemical synthesis Anti-infectives and Prostaglandins, cytotoxic Peptides & oligonucleotides
Slide 62: Focused efforts have triggered a meaningful rise in activity
Focused efforts have triggered a meaningful rise in activity… Sharply increasing number of commercial Significant ramp up in RFP response rate in Substantially more RfPs received in 2021 meetings 2021 vs. prior years 2021 Number of commercial meetings Meetings covering Number of RFPs received Number
Slide 63: Strong momentum evidenced by accelerating volume of RFPs
…with strong momentum evidenced by accelerating volume of RFPs from Big Pharma and leading Biotechs worldwide January to June 2021 July to December 2021 Full Year Total RFPs received Total RFPs received • 45% Complex Chemistry 45 75 120 • • 20% Oligos & Peptides 25% Fermentation • 10% Other1 RFPs fr
Slide 64: Focused CDMO efforts already yielding meaningful successes
Focused CDMO efforts already yielding meaningful successes Portfolio and momentum building New CDMO projects won across all technologies CDMO contracts Peptides & oligos 3 3 2 22 (mostly in commercial phase) Legacy projects Fermentation 1 1 retained from before carve out Highly potent APIs 1 1 New C
Slide 65: Our accelerating CDMO momentum: selected case studies
Our accelerating CDMO momentum: selected case studies Case Study 1: Long-term life-cycle encompassing relationship Case Study 2: Rapidly expanding oligos clientele 1 2 US biopharma reliant fully Initially envisaged only >30% >60% Origination on CDMOs process transfer 2010 Oligos Are GalNAC are conju
Slide 66: Our accelerating CDMO momentum: selected case studies (cont'd)
Our accelerating CDMO momentum: selected case studies (cont’d) Case Study 5: Agreement with Sanofi for mRNA Case Study 3: State-of-the-art micronization Case Study 4: Increasing recognition of ADC development further evidences EUROAPI’s capabilities capabilities capabilities in lipids • Mandated on
Slide 67: Positioned to capitalize on oligonucleotides & peptides opportunity
EUROAPI is strongly positioned to capitalize on the broad market opportunity for oligonucleotides & peptides Selected highlights EUROAPI differentiation One of first players in peptides (1976) with start of solid phase synthesis activities in 2004 Strong track record and Oligonucleotide synthesi
Slide 68: Strategic ambition is to develop into a one-stop-shop for peptides and oligos
Strategic ambition is to develop into a one-stop-shop for peptides and oligos 1 2 3 4 5 Oligonucleotides Peptides Conjugation Linkers Building blocks Position EUROAPI at Participate in strong Leverage chemistry Offer innovative Complement one-stop- forefront of emerging underlying market heritage fo
Slide 69: API Solutions
CUfOAPI API Solutions
Slide 70: EUROAPI's API Solutions ranks favorably in complex and niche products
EUROAPI’s API Solutions ranks favorably in complex and niche products Illustrative segmentation of key players 80% % of portfolio with high level of differentiation1 Differentiation increasing over time 50% 0% 0 150 # of APIs in portfolio 300+ Sources Company information and estimation based on thir
Slide 71: API Solutions focused on a few API families serving large clients
API Solutions business is focused on a few API families serving large high-profile clients API family Ranking1 Number of APIs Number of clients Main specificity / complexity Sole supplier on ~45% of revenues Anti-infectives #1 10 50-100 (Pristinamycine & Gamithromycin) Fermentation #3 Sole Western s
Slide 72: Majority of portfolio positioned in differentiated product segments
Majority of EUROAPI’s portfolio positioned in differentiated product segments 2020 sales of EUROAPI ~€990M (preliminary - lastEUROAPI financials to portfolio be received)segmentation Differentiation criteria Based on 2020 sales1 of EUROAPI •1 Niche market characteristics Complex chemistry Fermentati
Slide 73: Working on multiple levers to drive API Solutions growth
Working on multiple levers to drive API Solutions growth Impact on 2025 outlook Building additional capacity for Vitamin B12, Prostaglandins & +++ Capacity building Hormones to address growing demand Increasing scope with existing clients, benefiting from loyal Cross-selling relationships and lo
Slide 74: Customers
CUfOAPI Customers
Slide 75: >500 clients well spread across the pharmaceutical landscape
>500 clients well spread across the entire pharmaceutical landscape Breakdown of clients % of 2020 total EUROAPI Sales1 Client segment # of clients Big/specialty pharma ~275 51% Generics ~45 Biotechs ~20 15% Animal health ~15 7% 14% Distributors ~15 3% 10% Consumer health, nutrition & others2 ~165 E
Slide 76: A highly diversified customer base
A highly diversified customer base Excluding Sanofi, top 10 clients account for 21% of EUROAPI sales API Pareto: 80% of EUROAPI sales covered by 87 clients (excl. Sanofi) % of 2021 total EUROAPI Sales¹ % of 2021 total EUROAPI Sales¹ Chart Title 530 100% Top 10 Clients 24% 80% 75% Others 76% 50% 25%
Slide 77: High loyalty with c.75% of clients currently monosourced
High loyalty towards EUROAPI with c.75% of clients currently monosourced¹ Duration of client relationship Client churn per annum API sales1 per client nature Chart Title # and share of Top 20 clients per duration of relationship Client churn between 2016 & 2020 per annum 2020 sales breakdown by sour
Slide 78: A strong reciprocal EUROAPI/Sanofi partnership
A strong reciprocal EUROAPI/Sanofi partnership on current and future business For Sanofi, EUROAPI is… …a trusted API …a trusted …a trusted API 1 manufacturer MSA 2 API CDMO Devlpt 3 distributor/client • Covers all API manufactured by • Reciprocal development service EUROAPI and sold to Sanofi agreem
Slide 79: Break
CUfOAPI Break
Slide 80: Financial Performance
CUfOAPI Financial Performance
Slide 81: Financial framework to deliver strong shareholder returns
Financial framework to deliver strong shareholder returns • Topline growth driven by expansion of one of the best CDMO offering Sales growth • Commercial excellence and API Solutions portfolio shift towards niche and complex API • Procurement optimisation and cost savings plans as well as operationa
Slide 82: Attractive financial profile with Core EBITDA margin expanding
Attractive financial profile with revenue CAGR of 1% despite Covid impact; Core EBITDA margin successfully expanding with significant future upside Attractive revenue Restated Net Sales (€m) Restated Core EBITDA (€m) evolution through shift to CDMO and other clients 955 120 20.0% 902 111 892 108 EBI
Slide 83: Sales primed for future performance as standalone franchise
Sales primed for future performance as standalone franchise Restated Net Sales breakdown by business Restated Net Sales breakdown by clients CAGR CAGR YoY Growth YoY Growth 2019-2021A 2019-2021A CDMO growth +35% +7% +20% Sanofi growth +8% (12%) (2%) API Solutions growth +1% (9%) (4%) Other clients g
Slide 84: Transformation of the portfolio is starting to materialize into financials
Transformation of the portfolio is starting to materialize into financials Restated Net Sales Technology Future Growth Potential1 Growth levers 2019A 2020A 2021A 2019-21A CAGR Mostly oligos and peptides historically Large molecules €12m €22m €24m +38% dedicated to Sanofi needs Investments planne
Slide 85: EUROAPI is well positioned on high margin products
EUROAPI is well positioned on high margin products API Solutions CDMO Peptides/Oligos: () Niche/differentiated molecules: () Indicative profitability High-potency/ ADC linkers/ lipids: Less-differentiated molecules: () Other molecules: Attractive levels of profitability are seen i
Slide 86: Margins expanding due to business mix and industrial performance
Margins expanding naturally due to business mix with industrial performance fuelling further upside Restated Core EBITDA (€m) Significant near-term value creation as a primary carve-out 2019A-21A CAGR +18% YoY Growth +35% +3% 120 20.0% 111 108 Increasing business mix towards high margin CDMO 18.0% 1
Slide 87: We are now investing in the future growth of the company
We are now investing in the future growth of the company Core EBITDA to benefit from the increased share of CDMO within the Cash Capital expenditure breakdown Capex plans portfolio Cash Capex evolution 2019A-2021A (€m) • Key capex projects for the medium term have already been identified: EUROAPI To
Slide 88: 2022 Targets
2022 Targets • Overall: c. €1.0bn Revenue • CDMO: 25-30% of total Sales growth • Sanofi Sales: reduced dependency Core EBITDA • ≥14% Margin (%) Capex • c.12% of sales Dividend • No dividend paid or accrued policy Leverage • Debt-free at listing policy Current geopolitical situation not expected to i
Slide 89: Clear objective to delivering sizeable topline growth
Clear objective to delivering sizeable topline growth Based on organic growth with no contribution from external opportunities or repatriation benefits CDMO c.35% Sanofi c.30-35% +6-7% CAGR CDMO 25% Sanofi 49% API Solutions – Other API Solutions - Sanofi Clients CDMO • Growth below market 9021 • Por
Slide 90: Topline acceleration, mix effect and industrial performance to drive Core EBITDA
Expected topline acceleration, mix effect and industrial performance to drive Core EBITDA increase Based on organic growth with no contribution from external opportunities or repatriation benefits >20% Operational performance 12.3%1 Mix effect • Overall cost improvement thanks to procurement 1111 To
Slide 91: Clearly defined capital allocation framework
Clearly defined capital allocation framework Key Priorities Returns to Investment shareholders Invest in organic growth drivers Organic Dividends growth 2025E Invest in capex to support growth plan Core FCF conversion2: 50-53% Disciplined M&A Mergers & Capex Acquisitions Return to shareholders1 • Su
Slide 92: Closing Remarks
CUfOAPI Closing Remarks
Slide 93: EUROAPI's profitable growth is built on strong pillars
EUROAPI’s profitable growth is built on strong pillars Well positioned to Continued focus on innovation and CDMO deliver the future of 3 complex API Premier consolidation platform in a highly fragmented market New growth opportunities / Inorganic growth Financial flexibility (debt-free at list
Slide 94: Q&A Session
CUfOAPI Q&A Session
Slide 95: Appendices
CUfOAPI Appendices
Slide 96: How financials have been built and restated
How financials have been built and restated to reflect EUROAPI performance? Restatements Consolidated financial statements Deal terms3 (MSAs, Reverse MSAs, Distribution Reflect EUROAPI performance – “AS IS”, i.e., with existing conditions agreements, etc.): new pricing between Sanofi and within Sano
Slide 97: Methodology for Restated APM
Methodology for Restated APM Nature of restatement Summary MSA deal terms 1 • Reflection of the contractual terms on APIs sold to Sanofi (effective as of October 1st, 2021) using actual volumes sold (Sales to Sanofi) Distribution • Reflection of the contractual terms on APIs manufactured by Sanofi a
Slide 98: Bridge from consolidated to restated APM net sales
Bridge from consolidated to restated APM net sales Net sales restatements Bridge items FY19 Net sales bridge (€m) +27 1• MSA deal terms - (26) (25) (0) 916 892 2• Distribution Agreement Net sales 1 2 Restated FY19 consolidated 3 5 6 7 net sales FY19 4 3• UK secondary packaging FY20 Net sales bridge
Slide 99: Bridge from consolidated to restated APM core EBITDA
Bridge from consolidated to restated APM core EBITDA Core EBITDA restatements Bridge items FY19 Core EBITDA bridge (€m) +48 9.0% 1• MSA deal terms 6.3% 7.8% +14 (6) (23) (11) - - (0) 58 72 80 1 2 2• Distribution Agreement EBITDA FY19 Core Core Restated Core 3 5 6 7 consolidated adj. EBITDA FY19 4 EB
Slide 100: Bridge from consolidated to restated APM Core Free Cash Flow
Bridge from consolidated to restated APM Core Free Cash Flow Core Free Cash Flow restatements Bridge items FY20 Core Free Cash Flow bridge (€m) 1• MSA deal terms +47 (2) 24.8% 2• Distribution Agreement (16) (7) - - 10.2% (3) 27 3• UK secondary packaging 7 Core FCF FY20 1 2 Restated 3 5 6 7 8 consoli
Slide 101: Comfortable liquidity cushion to support medium-term growth strategy
Comfortable liquidity cushion to support medium-term growth strategy EUR Revolving Credit Facility Ample flexibility under new credit facility agreement Amount €451,000,000 • EUROAPI has secured a €451m 5-year Revolving Credit Facility from a pool of 7 international relationship banks Ranking Senior
Slide 102: EPIC Bpifrance investment in EUROAPI
EPIC Bpifrance investment in EUROAPI French Tech Souveraineté Convention at a glance About its investment in EUROAPI Launched in June 2020 by the French government Up to €150m investment for 12% of share capital of EUROAPI Investment envelope managed by EPIC Bpifrance Acquisition price to be determi