Galenica AG · SIX:GALE
Galenica — Investor Presentation (January 2024)
95 slides from Galenica's investor presentation, January 2024
Slide 1: Investor Presentation Galenica Group
Investor Presentation Galenica Group January 2024
Slide 2: Table of contents
Table of contents About Galenica page 03 Market environment page 33 Business performance page 43 Governance page 67 Sustainability page 78 Outlook page 87 January 2024 2 Investor Presentation Galenica Group
Slide 3: About Galenica
About Galenica
Slide 4: Galenica in figures
Galenica in figures Net sales1 EBIT adjusted1,2 Galenica Group Galenica Group Leading healthcare provider in Switzerland 369 24% own pharmacies CHF 41% CHF Employees 3,588.5 190.6 (Headcount) 59% million million > 7,600 76% Dividend yield 2.9% Products & Care Logistics & IT Products & Care Logistics
Slide 5: Building the leading Swiss healthcare platform
Building the leading Swiss healthcare platform Joint Venture Creation of Amavita uniform Opening of highly brand in Switzerland automated distribution centre in Niederbipp Acquisition Umsatz +10.2% 2000 2002 2005 2007 2008 2009 2013 EBIT +26.4% Organic and acquisition-led expansion of Acquisition Ac
Slide 6: Building the leading Swiss healthcare platform
Building the leading Swiss healthcare platform IPO Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition 2017 2018 2019 2020 2021 2022 2023 Joint Venture Joint Venture Acquisition Acquisition Relaunch Acquisition Strategic partnership Strategic partnership Segment Produ
Slide 7: Switzerland's leading fully integrated healthcare provider
Switzerland‘s leading fully integrated healthcare provider Largest network of Wide range of pharmacies in services for patients Switzerland with over and professional 500 pharmacies, service providers online and offline Well-known brands Leading provider of and products and logistics and IT in the e
Slide 8: The Galenica story
The Galenica story Vision Health and well-being are at the heart of what we do. They are the reason we give our best every day. We build trust. We show respect. Values Together we are stronger. We act as entrepreneurs. We participate with passion. Customer We support people at every stage of life on
Slide 9: Business model
Business model Customer promise For Professionals (B2B) Our Retail (B2C) • Pharmacies • Pharmacies • Drugstores • Local Pharmacies • Doctors • Mail Order • Hospitals • Home Care • Homes • Other service providers Products Services Logistics Digital Services January 2024 9 Investor Presentation Galeni
Slide 10: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Omi-Channel programme ESG impact Best customer experience anytime and Patient health, data protection Changing customer anywhere − Customer satisfaction: more efficient needs − Build the required digital infrastructure to and convenient health care improves mo
Slide 11: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Care programme ESG impact First point of contact for healthcare advice Patient health, patient safety Changing customer − First point of contact for healthcare advice in − Better healthcare services: improved needs our pharmacies, digitally and at home availab
Slide 12: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Professionals programme ESG impact First-choice partner for healthcare professionals Patient health, patient safety, Changing customer − We offer specialist retailers and our pharmacies an reliable procurement and supply needs attractive product range and comp
Slide 13: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Efficiency programme ESG impact Simple and efficient for customers, partners IT security and cybercrime and employees − IT security is key for sustainable Digitalisation − We streamline our offerings and organise our business operations company in a way that i
Slide 14: Strategic programmes and ESG
Strategic programmes and ESG Megatrends Transformation programme ESG impact Making employees fit for the future Retention of qualified employees, Lack of qualified staff − By supporting the continuous development employee motivation and of our employees we ensure that they can development perform to
Slide 15: Our business units: Strong on the market
Our business units: Strong on the market 17.01.2024 15
Slide 16: Our business areas
Our business areas Products & Care Logistics & IT Net sales1 EBIT1,2 Net sales EBIT2 1,584m CHF 143m CHF 2,933m CHF 49m CHF Retail B2C Professionals B2B Local Pharmacies Pharmacies at Products & Services for Wholesale Logistics & IT Home Brands Professionals Services Net sales Net sales1 Net sales N
Slide 17: Local pharmacies: Three largest pharmacy chains in Switzerland
Local pharmacies: Three largest pharmacy chains in Switzerland Key takeaways Largest branded pharmacy network by number of − Largest pharmacy network offers broad product range, pharmacies in Switzerland1 including well-known own brands, as well as health services and tests 194 − Built organically a
Slide 18: Local pharmacies: Broad range of product and service offerings
Local pharmacies: Broad range of product and service offerings Amavita an Sun Store product offering Service offerings in local pharmacies (selection) in % of sales1 Primary Care Health Checks Prescription medicines of which originals 9% of which generics 19% 38% of which service fees COVID-19 Tests
Slide 19: Local pharmacies: Always available where our customers are
Local pharmacies: Always available where our customers are Widely spread pharmacy network covers every Demonstrated M&A track record with an average of 8 Region in Switzerland pharmacies acquired and 3 net pharmacies added per year over the last 5 years 13 2019 2020 2021 2022 2023 24 Pharmacies acqu
Slide 20: Pharmacies at home: Mail order pharmacies and home care services
Pharmacies at home: Mail order pharmacies and home care services Key takeaways Total Retail Net Sales − Business area covers both home care (Bichsel) and Mail-order pharmacies 6% (webshops / Cannaplant) with a share of 5% of Total Retail sales (B2C) CHF − Both Homecare and Mail-order 1,386 pharmacie
Slide 21: Pharmacies at home: Bichsel home care services
Pharmacies at home: Bichsel home care services for over 10,000 active patients across Switzerland Key takeaways − Improve quality of life, e.g. enhanced mobility, continuation in familiar setting − Efficient provision of services compared with in-patient alternatives − Patients from toddlers to the
Slide 22: Mediservice: Joint Venture with Redcare Pharmacy N.V.
Pharmacies at home Mediservice: Joint Venture with Redcare Pharmacy N.V. Market Share Mail-order pharmacies1 Market leading online and mail-order1 70% pharmacy in Switzerland The business activities of Mediservice and shop-apotheke.ch are combined in the joint venture: 60% − Mediservice customers co
Slide 23: Products & Brands: Strong brands for Swiss Consumer Healthcare Market
Products & Brands: Strong brands for the Swiss Consumer Healthcare Market Key takeaways Selected own brands − Leading position1 in the Swiss consumer healthcare market (CHC) − Preferred Consumer Health partner for Swiss Pharmacies & Drugstores − Broad Sales & Training force − Expanding portfolio of
Slide 24: Products & Brands: Strong brands for Swiss Consumer Healthcare Market
Products & Brands: Strong brands for the Swiss Consumer Healthcare Market Verfora market share Market share of main OTC product in Swiss CHC market1 categories of Verfora1 in 2023 OTC products 13.5% market share Vitamins, minerals & CHF 241.7 million nutritional supplements Pain relief Personal care
Slide 25: Products & Brands: Proven M&A track record
Products & Brands: Proven M&A track record as key driver for market share growth Verfora growth strategy − Big OTC brands − Emerging platforms complementary medicine, beauty & Rx − New distribution agreements − Acquisitions of brands / companies − International expansion via distributors January 202
Slide 26: Products & Brands: Proven M&A track record
Products & Brands: Proven M&A track record as key driver for market share growth Acquisition Distribution Hedoga Boiron® OTC Group Beauty 10.0% Distribution Complementary Medicine Allergosan® Distribution Acquisition Vicks and Dr. Wild Distribution Metamucil ThermaCare® Acquisition Acquisition 8.0%
Slide 27: Services for Professionals
Services for Professionals: We support healthcare professionals with high quality services • Lifestage Solutions develops and operates a fully integrated digital trading platform for home care organisations and nursing homes • Strong customer focus: the platform simplifies daily workflows for its cu
Slide 28: Wholesale: Leader in wholesale distribution
Wholesale: Leader in wholesale distribution Key takeaways Wholesale market share1 Wholesale market share1 % physician channel % pharmacy channel − Wide product range with around 100,000 products in pharma, non-pharma, practice & laboratory equipment and medical devices, whereof around 50% in stock 3
Slide 29: Wholesale: Leader in wholesale distribution
Wholesale: Leader in wholesale distribution Wholesale distribution with four distribution centers Customers by channel Pharmacies ~ 1,300 Drugstore ~ 300 Medical practices > 5,600 Hospitals/Nursing homes > 570 January 2024 29 Investor Presentation Galenica Group
Slide 30: Logistics & IT Services: Leader in pre-wholesale distribution
Logistics & IT Services: Leader in pre-wholesale distribution Key takeaways Pre-wholesale market share1) Warehouse capacity − Third-party logistics provider No. 3 9% 35,200 m2 for the pharmaceutical industry (pre-wholesaling) including No. 2 35% additional services (labeling, repacking, clinical tri
Slide 31: Logistics & IT Services: Strong IT competencies
Logistics & IT Services: Strong IT competencies to drive digital transformation Key takeaways Internal IT Services Market offering − IT platforms related to electronic medication process (Documedis) − Systemically relevant digital Projects & Consulting Index information and databases (Compendium and
Slide 32: Logistics & IT Services: Patient safety, convenience and efficiency
Logistics & IT Services: Our approach towards more patient safety, convenience and efficiency Clinical Decision Support (CDS) (medication and vaccination) Medication Master Data Diagnosis Anamnesis Prescription Patients on-/offline E-Prescription Therapy e-Mediplan January 2024 32 Investor Presentat
Slide 33: Market environment
Market environment
Slide 34: Swiss healthcare market: resilient and stable growth
Swiss healthcare market Proven track record of resilient and stable growth Development of Swiss healthcare retail sector1 in billion CHF (based on ex-manufacturer price) 2024-27 CAGR 4%2 7 2013-23 CAGR 3.8% 6 6.3 6.5 5.8 6.0 5 5.6 5.3 4.9 4 4.4 4.4 4.5 4.6 4.1 4.2 3 3.9 3.9 2 1 0 2013 2014 2015 2016
Slide 35: Swiss pharmaceutical market 2023
Swiss pharmaceutical market 2023 Allocation by value (ex-factory price) Total market growth CHF 7,406.6 million (+4.9%) Hospitals 199.4 million packs (-0.2%) CHF 1,816.9 million (+3.9%) 16.0 million packs (-1.9%) 24.5% Drugstores Local Pharmacies CHF 63.0 million (-6.1%) 43.5% CHF 3,222.3 million (+
Slide 36: Swiss pharmaceutical market: Reduced growth in H2 2023
Swiss pharmaceutical market Reduced growth in H2 2023 in million CHF 690 670 650 630 610 590 570 550 530 510 490 470 450 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez 2021 2022 2023 Source: APO/SD/DRO/SPI Index, Swissmedic A, B, C, D Medicines Swissmedic lists A, B, D, sold from suppliers and whol
Slide 37: Galenica as key driver of generic substitution
Swiss pharmaceutical market Galenica as key driver of generic substitution in Switzerland Drugs reimbursable by health insurance Substitution rate market3 in Swiss pharmacy channel 2022 61.1% (by packs, total 85.7 million) Market with generics potential Substitution rate Pharmacies 62.8 million, +10
Slide 38: Swiss consumer healthcare market 2023
Swiss consumer healthcare market 2023 3.0% Total market 11.8% OTC CHF 2,762 million +0.7% +1.8% Personal care -0.8% 20.4% Patient care 64.7% -1.7% Nutrition -3.4% Source: IQVIA PharmaTrend for pharmacies and drugstores in Switzerland, streetprices © IQVIA Switzerland – Consumer Health market Decembe
Slide 39: Swiss healthcare market: regulatory environment
Swiss healthcare market: regulatory environment Topic/Initiative Current status Reduction in drug prices − Standard process, FOPH verifies drug prices in a three-year cycle − New concept of distribution margin decided by Federal Council on 8 Dec 2023 Distribution margin − Implementation of a new mod
Slide 40: Constant pressure on drug prices
Swiss healthcare market: regulatory environment Constant pressure on drug prices Annual savings per channel due to price cuts of SL products at public and ex-factory price in million CHF Pharmacies Physicians Hospitals 140 120 ? 19.3 ? 100 23.9 11.7 17.1 34.3 22.7 80 33.2 11.4 31.5 23.6 27.8 25.9 21
Slide 41: Composition of drug prices
Swiss healthcare market: regulatory environment Composition of drug prices Fixed margin elements help to offset price reductions ~8%1 Per prescription / line Reimbursed → Composition of the price of a ~29% ~ 24% Retail and prescription/ reimbursable drug: ~ 5% Wholesale c.3/4 of the retail margin se
Slide 42: New concept of distribution margin
Swiss healthcare market: regulatory environment New concept of distribution margin (valid from 1 July 2024) FOPH defines price and margin – Margin covers wholesale and retail 70 Current model (until 30 Jun 2024) New model (from 1 Jul 2024) Current model New model 60 Ex factory + price- + surcharge E
Slide 43: Business performance
Business performance Our success story
Slide 44: Key business events 2022
Key business events 2022 June 2022: November 2022: Galenica joined Galenica the digital health July 2022: acquires the platform WELL Galenica acquired June 2022: Swiss pioneer in March 2022: Well supports Verfora will take 100% of the cannabis Galenica and patients and over the July 2022: shares in
Slide 45: Key business events 2023
Key business events 2023 January 2023: March 2023: Galenica and Redcare Pharmacy enter into a June 2023: Galenica joins Galenica acquires strategic partnership and establish the leading online digital health platform 100% of Padma Ltd. pharmacy in Switzerland Benecura pulic Padma specialises in As p
Slide 46: Transaction structure for Joint Venture with Redcare Pharmacy N.V.
Key business events 2023 Transaction structure for Joint Venture with Redcare Pharmacy N.V. 51% Mediservice EUR 29 Mio. 2% Shop Apotheke 6% Shop Apotheke 8% Shop Apotheke Transfer shop-apotheke.ch to Mediservice, sale of 51% of Joint Venture against 51% 49% 6% of Shop Apotheke Capital increase 2% wi
Slide 47: Business Operating Model for Joint Venture with Redcare
Key business events 2023 Business Operating Model for Joint Venture with Redcare Pharmacy N.V. − The prescription medicines business will continue to be operated by 8% Mediservice. − Until further notice, the platform with the Redcare Pharmacy web shop will 51% 49% be operated from Sevenum (NL) for
Slide 48: Mediservice business activities are deconsolidated
Key business events 2023 Mediservice business activities are deconsolidated due to the joint venture H1 2022A Mediservice H1 2022A in million CHF (as reported) (disc. ops) (cont. ops) in % With the creation of the joint venture, Net Sales 1’959.9 -205.7 1’754.2 -10.5% Mediservice will be deconsolida
Slide 49: History of resilient growth and margin improvement
Performance overview Galenica Group History of resilient growth and margin improvement Logistics, HealthCare Galenica Information & Retail1 2012 – 2022 CAGRs Retail market sales2 3.2% Net sales (CHFm) EBIT margin % Galenica net sales 4.2% Galenica EBIT3 8.1% 3,8354 4,0145 4’000 6.0% 3,301 3,480 3,00
Slide 50: Strong performance development in both segments
Performance overview Galenica Group Strong performance development in both segments Products & Care Logistics & IT Retail Products & Care1 Logistics and HCI Logistics & IT1 1.0% 3.8% 5.4% 2,933 Net sales (CHFm) 2,831 0.8% 2,362 2,372 2,441 2,625 2,149 2,158 2,171 2,245 2,329 1,908 2,030 5 1,525 1,62
Slide 51: Pleasing sales growth
Galenica Group Pleasing sales growth Net sales (in million CHF) +4.4% 3,746 3,588 +5.5% +3.3% 1,754 1,834 1,851 1,895 H1 2022 H2 2022 2022 H1 2023 H2 2023 2023 Growth without +6.5% +3.6% +5.0% COVID-19 initiatives1 1 Impact of COVID-19 initiatives includes net sales of PCR tests, Rapid Antigen tests
Slide 52: Pleasing sales growth
Galenica Group Pleasing sales growth Net sales (in million CHF) +4.4% 3’746 +4.9% 3’588 3’077 2’933 +3.3% 1’584 1’636 2022 2023 Galenica Group Products & Care Logistics & IT Growth without +5.0% +4.2% +5.5% COVID-19 initiatives1 1 Impact of COVID-19 initiatives includes net sales of PCR tests, Rapid
Slide 53: Sales growth in all business areas
Galenica Group Sales growth in all business areas Net sales (in million CHF) 2023 2022 change Local Pharmacies 1’307 1’287 +1.6% Pharmacies at Home 79 74 +6.6% Retail (B2C) 1’386 1’361 +1.8% Products & Brands 177 158 +12.3% Services for Professionals 79 71 +11.0% Professionals (B2B) 256 229 +11.9% P
Slide 54: Retail B2C: Solid sales growth
Retail B2C Solid sales growth in line with market development Net sales (in million CHF) Pharmacies at Home +1.8% Local Pharmacies 1,361 1,386 Portfolio of local pharmacies optimised in 2023: 74 79 +6.6% expansion impact of +0.2% +2.1% +1.6% 665 696 679 706 37 37 1,287 39 40 1,307 +1.6% Growth witho
Slide 55: Products & Brands
Products & Brands Product portfolio expansion and international growth Net sales (in million CHF) International +12.3% 177 158 International: Swiss market 36 +33.6% − Organic growth +24.5% 27 +19.8% +5.5% 90 87 Swiss market: 83 75 − Organic growth +1.1% 14 19 17 13 131 141 +8.0% − Growth of market s
Slide 56: Services for professionals
Services for professionals Strong sales growth Net sales (in million CHF) +11.0% 79 71 +12.8% +9.4% Strong growth with services for 40 homecare organisations and 37 39 nursing homes 34 H1 2022 H2 2022 2022 H1 2023 H2 2023 2023 18 January 2024 Investor Presentation Galenica Group 56
Slide 57: Wholesale: Market share gains with pharmacies
Wholesale Market share gains with pharmacies Net sales (in million CHF) Physicians +4.7% Pharmacies 2,953 2,820 Others Growth without 795 823 +3.6% COVID-19 self-tests: +5.5% +3.8% 1,441 1,457 1,495 +5.3% in total wholesale 1,379 393 402 409 414 +6.3% in pharmacies segment 1,849 1,949 +5.4% 899 950
Slide 58: IT & Logistic Services
IT & Logistic Services Strong sales growth Net sales (in million CHF) +10.1% 144 131 Intercompany sales Third party sales Strong growth with IT +10.4% +9.9% 71 +7.9% 63 services and pre-wholesale 70 74 distribution 64 67 32 35 37 31 67 73 +12.5% 33 35 36 37 H1 2022 H2 2022 2022 H1 2023 H2 2023 2023
Slide 59: Solid EBIT growth without one-off items
Solid EBIT growth without one-off items EBIT adjusted1) (in million CHF) -5.1% ROS (in %) 95.0 90.2 +3.2% 70.8 73.1 H1 2022 -25.1% H1 2023 25.4 19.0 5.4% 4.9% 9.2% 9.1% 1.8% 1.3% Galenica Group Products & Care Logistics & IT One-off items2 CHF 9.8 million CHF 9.8 million Growth w/o one-off items +5.
Slide 60: Adjusted consolidated statement of income
Adjusted consolidated statement of income1 in million CHF H1 2023 H1 2022 in % Strong sales growth of 5.5% Net sales 1’851 1’754 +5.5% Other income 8 8 +5.6% Increase of personnel costs due to: Cost of goods -1’339 -1’276 +5.0% − Measures against lack of qualified Personnel costs -280 -259 +8.2% per
Slide 61: Strong balance sheet
Strong balance sheet in million CHF 1,349 1,181 Equity adjusted1 503 Net debt adjusted1 402 H1 2022 H1 2023 Debt coverage 1.6x 2.1x adjusted2 1 Detail of the adjustments in the Half year report 2023, see chapter “Alternative performance measures” 2 Net debt adjusted / EBITDA adjusted (excluding effe
Slide 62: Condensed balance sheet
Condensed balance sheet in million CHF Jun 2023 Dec 2022 Change Cash and cash equivalents 15 94 -79 − Increase of trade receivables due to seasonality effect and Trade and other receivables 558 529 +28 business growth Inventories 335 315 +20 Other assets 583 325 +258 − Increase of inventories relate
Slide 63: Investments in our future
Investments in our future in million CHF Investments in intangible assets: 70.7 − SAP implementation at Alloga/Galexis 29.7 Investments in − digital Omni-channel infrastructure intangible assets 34.6 30.8 Investments in tangible assets 15.9 Investments in tangible assets: 12.2 41.0 − renovation and
Slide 64: Cash Flow Statement
Cash Flow Statement Investments and seasonal effects burden cash flow in million CHF H1 2023 H1 2022 Cash flow from operating activities before working Net working capital: 87.5 104.9 extraordinary high balance as capital changes adjusted 1 at 30 June 2023 mainly due to: Working capital changes -109
Slide 65: Historical dividend per share and pay-out ratio
Share information Historical dividend per share and pay-out ratio1 66.2% 66.3% 64.7% Dividend guidance: 59.7% 2) +5% − 50% of dividend payout from reserves from capital 2.20 contributions (exempt from WHT) 2.10 1.80 1.80 − Dividend outlook 2023: at least same level as 2022 2019 2020 2021 2022 Divide
Slide 66: Share information: Key figures
Share information Key figures in CHF Jun 2023 Dec 2022 Share price at reporting date 72.25 75.55 Market capitalisation at reporting date in million CHF 3,599.6 3,763.6 Earnings per share from continuing operations (1 Jan – 30 Jun) 1 1.49 1.59 Earnings per share adjusted from continuing operations (1
Slide 67: Governance
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Slide 68: Shareholder structure
Shareholder structure Proportion of shareholders by country Major shareholders (30 Jun 2023) (Jun 2023) − Shareholders over 3%: in % 0.4% Shareholders Number of shares Shares in % UBS Fund Management (Switzerland) AG, 2,671,158 5.3 Switzerland Switzerland Credit Suisse Funds AG, Switzerland 2,495,38
Slide 69: Overview of our governance structure and instruments
Overview of our governance structure and instruments Annual General Meeting External advisory and inspection bodies / auditors Board of Directors Audit and Remuneration Governance, Nomination and Risk Committee (ARC) Committee (RC) Sustainability Committee (GNSC) Corporate Executive Committee / Exte
Slide 70: Board of Directors
Board of Directors Dr. Markus − Elected since 2019 Prof. Dr. − Elected since 2023 R. Neuhaus − Master of law and doctorate in law from the med. − Professor, University of Lausanne, head of Chairman University of Zurich Solange the department of medical oncology at − Vice-Chairman of the BoD of Barry
Slide 71: Board of Directors: Committees and competencies
Board of Directors Committees and competencies ARC (Audit and Risk Committee) Members: Jörg Zulauf Budget / medium-term planning (Chairman), Bertrand Jungo, Andreas Walde, Judith Meier Risk management Compliance / internal audits Acquisitions / investments RC (Remuneration Committee) Members: Bertra
Slide 72: Board of Directors: Competencies and diversity
Board of Directors Competencies and diversity Competencies Neuhaus Bruderer Jungo Meier Peters Walde Zulauf Markus Pascale Bertrand Judith Solange Andreas Jörg Industry x x x x Experience Digitalisation (x) (x) (x) x Regulations/ x x x x x Politics Leadership/ x x x x Big Corp. Finance/ An (x) in br
Slide 73: Board of Directors: Competencies and diversity
Board of Directors Competencies and diversity Age of BoD members (June 2023) Gender of BoD members (June 2023) 45 – 50 14.3% 50 – 55 43.0% 57.1% male 14.3% 55 – 60 female 60 – 65 57.0% 14.3% January 2024 73 Investor Presentation Galenica Group
Slide 74: Our management structure
Our management structure * Executive Committee ** Extended Executive Committee 1) Joint venture with Coop January 2024 74 Investor Presentation Galenica Group
Slide 75: Executive Committee
Executive Committee Marc Werner − CEO since 2020 Thomas − Chief Products & Marketing Officer CEO − 26 years industry experience Szuran since 2021 − Joined Galenica in 2020 Products & − 26 years industry experience of which − Previously, Head Marketing & Sales Marketing 5 years at Galenica division a
Slide 76: Remuneration
Remuneration Responsibility for the remuneration process Remuneration Level of authority CEO Board of Directors Annual General Meeting Committee consultative vote on the Remuneration policy proposes approves Remuneration report Performance objectives for short-term proposes approves bonus and long-t
Slide 77: Remuneration
Remuneration Remuneration components STI 25% LTI individual − The remuneration components of the Corporate Executive Committee (EC) objectives 50% consists of a fixed compensation, benefits and a variable compensation. incl. ESG average − The variable remuneration consists of a short-term incentive
Slide 78: Sustainability
* alenica ‘Sustainability’
Slide 79: Sustainability at Galenica: Overview
Sustainability at Galenica Overview Sustainability Guidelines Enterprise value Employees Resource efficiency Long-term increase in the Commitment of employees to The respectful and efficient value of the company through act responsibly and to ensure a use of resources and reduction sustainable pract
Slide 80: Matrix of the main topics
Sustainability at Galenica Matrix of the main topics January 2024 80 Investor Presentation Galenica Group
Slide 81: Our sustainability goals
Sustainability at Galenica Our sustainability goals Corporate governance Patients Ethical and legal business activities Increase patient safety and health Protect patient data and IT systems Ensure the availability of medicinal products Employees Environment Promote employee motivation and developme
Slide 82: Our sustainability goals
Sustainability at Galenica Our sustainability goals Goal Status Target year Measurement parameter 2021 2022 We train all employees in compliance at least Not all employees are Not all employees are → Every year Participation rate once a year. trained trained Twice a year, we carry out measures to ra
Slide 83: Our sustainability goals
Sustainability at Galenica Our sustainability goals Goal Status Target year Measurement parameter 2021 2022 We will increase the use of Clinical Decision Number of CDS.CE checks Support Checks (CDS.CE) to 500 million by 2025 ↗ 2030 N/A 110 million (Clinical Decision Support) and 1 billion by 2030. W
Slide 84: Our sustainability goals
Sustainability at Galenica Our sustainability goals Goal Status Target year Measurement parameter 2021 2022 We will increase the motivation rate of our Motivation rate 71 / 100 74 / 100 employee survey to 75 out of 100 points and ↗ 2024 Participation rate 58% 71% the participation rate to 75% by 202
Slide 85: Our sustainability goals
Sustainability at Galenica Our sustainability goals Goal Status Target year Measurement parameter 2021 2022 From 2025, we will be sourcing 100% of our % electricity from BU Logistics & IT: 100% BU Logistics & IT: 100% electricity from renewable sources at all our ↗ 2025 renewable sources per BU Prod
Slide 86: ESG Ratings
ESG Ratings Rating-Agentur Actual Rating Percentile Comment ESG Risk Top 1% (Global Universe) − Ranking number 3 among 623 Healthcare companies (Rating of 9.8) NEGL LOW MED HIGH SEVERE − Very good scores in Business ethics, Data privacy and security, and Carbon emissions in own (Jul 2023) 0% 100% op
Slide 87: Outlook
Outlook
Slide 88: Outlook: Products & care
Outlook Products & care The rNPS (Net Intensify Promoter Score) is Roles of pharmacy collaboration The importance of to be introduced Continuous assistants will between Bichsel, the pharmacy as across the board in optimisation and incluce additional Mediservice, the first point of pharmacies from ex
Slide 89: Outlook: Logistics & IT
Outlook Logistics & IT Implementation of Galexis: measures to achieve the The “Documedis ” Following the successful sustainability goals is a software solution from − Roll-out of the new pilot projects, the “e- top priority HCI Solutions is to be ERP system to be prescription” is to be implemented a
Slide 90: Confirmation of updated guidance 2023
Confirmation of updated guidance 2023 Guidance 2023 as issued in March 2023: Despite the very strong 2022 financial year and rising costs due to inflation, Galenica expects a growth in consolidated net sales between +3% and +6% and in adjusted1 EBIT between +4% to +7%. Galenica strives for a strong
Slide 91: Market development expectations
Market development expectations1 • Based on the demographic trends and innovation with many new, high-priced medications, Galenica expects continued strong growth of +/- 5% in the Swiss pharmaceutical market2 in the next years. • The strongest growth is expected in the hospital channel. For pharmaci
Slide 92: Updated mid-term Guidance
Updated mid-term Guidance • Galenica expects net sales to grow by 3% to 5% in the next years. • Until 2025, Galenica expects a stable development of its return on sales (ROS)1 due to • an intense final phase of the ERP project in the Logistics & IT segment with a planned finalisation in 2025, • cont
Slide 93: Reasons to invest in Galenica
Reasons to invest in Galenica Unique combination of defensive resilience and significant growth Defensive resilience History of growth Strategic focus • Stable and attractive Swiss • Significant operational • Proven strategy to leverage healthcare market with advantages from integrated, market leade
Slide 94: Galenica Group – Contact information
Galenica Group – Contact information Investor Relations Felix Burkhard Tel: +41 58 852 85 31 CFO investors@galenica.com Julian Fiessinger Tel: +41 58 852 85 37 Head of Investor Relations investors@galenica.com and Corporate Finance January 2024 94 Investor Presentation Galenica Group
Slide 95: Disclaimer
Disclaimer Disclaimer Galenica Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a n