Sandoz Group Ltd · SIX:SDZ
Sandoz — H1 2025 Earnings Presentation
40 slides from Sandoz's earnings presentation, Aug 7, 2025
Slide 1: H1 2025 results
August 7, 2025 H1 2025 results
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are su
Slide 3: Agenda
Agenda 1. Highlights and business update Richard Saynor, CEO 2. Financial performance and guidance Remco Steenbergen, CFO 3. Wrap-up Richard Saynor, CEO 4. Q&A Richard Saynor, CEO | Remco Steenbergen, CFO 3 Document title
Slide 4: Highlights and business update
Richard Saynor Chief Executive Officer Highlights and business update
Slide 5: Strong progress in first half of year
1 Strong progress in first half of year Development Financials Launches Guidance and supply Accelerated sales growth in Executed launches Additional manufacturing Full-year guidance second quarter according to plan: capabilities in Slovenia; - confirmed Core EBITDA margin • Wyost® and Jubbonti® prop
Slide 6: Launch milestones achieved in first half, with additional launches anticipated in H2
1 Launch milestones achieved in first half, with additional launches anticipated in H2 Pyzchiva Pyzchiva Afqlir® autoinjector (aflibercept) Launched in US, First commercially available Europe launch including in private label autoinjector in Europe for anticipated in Q4 ustekinumab biosimilars H1 20
Slide 7: Pyzchiva: strong growth in Europe, launched in US
1 Pyzchiva: strong growth in Europe, launched in US Pyzchiva European market share1 Biosimilars penetration growing in Sandoz market Biosimilars Europe. Presence established in share (%) penetration (%) 24 markets. Launched first biosimilar 50 50 ustekinumab autoinjector in Europe 41% 39% 40 38% 40
Slide 8: Hyrimoz: continued momentum in Europe and International; broadest payer coverage in US
1 Hyrimoz® (adalimumab): continued momentum in Europe and International; broadest payer coverage in US Hyrimoz global market share1 Biosimilars penetration consistently Sandoz market Biosimilars increasing share (%) penetration (%) 30 62 Good European performance 25 60 accompanied by growth in Exclu
Slide 9: Tyruko: encouraging progress in Europe; ambition to launch in US before year end
1 Tyruko: encouraging progress in Europe; ambition to launch in US before year end1 Tyruko European market share2 First and only biosimilar Sandoz market approved for relapsing remitting share (%) 20% 20% multiple sclerosis 20 17% Additional launches planned 15 across Europe this year 10 8% Strong c
Slide 10: Omnitrope: market-leading biosimilar for growth-hormone-related disorders
1 Omnitrope® (somatropin): market-leading biosimilar helping patients with growth-hormone-related disorders Omnitrope global market share1 Market leader, with 35% global share1 Sandoz market share (%) 40 International region driving 35% 36% 35% 35% 35% H1 growth 31% 31% 32% 30 28% 24% Reliable Sando
Slide 11: Licence agreement signed with Henlius to strengthen position in oncology
1 Licence agreement signed with Henlius to strengthen position in oncology Sandoz to commercialize Yervoy®1 biosimilar Ipilimumab strengthens immuno-oncology pipeline Boosts access and healthcare savings worldwide Covering 42 European US Australia countries and regions and Canada and Japan Henlius:
Slide 12: > USD 300 bn total LoEs over next decade
1 Industry-leading biosimilars pipeline; significant opportunities to improve access for patients High-value biosimilars-market opportunity > USD 300 bn total LoEs over next decade 1 Extensive biosimilars pipeline 27 total assets2 in ~USD of originator Covering of total development targeting 200 bn
Slide 13: Industry-leading biosimilars pipeline
1 Industry-leading biosimilars pipeline H1 2025 H2 2025 2026+ Already launched Upcoming launches Near-term launches & assets in clinical development EnzeevuTM Opdivo®2 Pyzchiva Wyost and Jubbonti (aflibercept) in US (nivolumab IV) Yervoy® in US in EU (ipilimumab) Keytruda®2 Ocrevus®2 (pembrolizumab
Slide 14: End-to-end European hub to seize unprecedented biosimilars opportunities
1 End-to-end European hub to seize unprecedented biosimilars opportunities Ljubljana Lendava Brnik - announced in July State-of-art technical High-tech drug substance State-of-art aseptic development center production center production center Using latest scientific and Planning to be Europe’s most
Slide 15: Sandoz signs non-binding term sheet: potential acquisition of Just - Evotec Biologics EU SAS
1 Sandoz signs non-binding term sheet: potential acquisition of Just - Evotec Biologics EU SAS Sandoz and Evotec: evolution of strategic collaboration Access to strategic Reinforcement of in-house Acquisition of Just - Evotec proprietary platforms biosimilar `capabilities Biologics EU SAS For integr
Slide 16: Generics continue to be a cornerstone for Sandoz, with more than 180 launches in H1
1 Generics continue to be a cornerstone for Sandoz, with more than 180 launches in H1 ~90 medicines >180 launches H1 Volume growth partly reflected launched across markets1 prior-year launches, First-to-market launch such as paclitaxel in US 1 Ferric carboxymaltose in Europe USD 548 million originat
Slide 17: Financial performance and guidance
Remco Steenbergen Chief Financial Officer Financial performance and guidance
Slide 18: Strong financial performance in first half of year; leveraging P&L, doubling cash generation
2 Strong financial performance in first half of year; leveraging P&L, doubling cash generation Core EBITDA Management Net sales margin Core diluted EPS free cash flow Underlying growth of 6% in Expansion of 2.5% pts year Core diluted EPS Management free cash flow H1 at CGR on year to 20.0% of USD 1.
Slide 19: H1 net-sales performance driven by double-digit biosimilars growth
2 H1 net-sales performance driven by double-digit biosimilars growth H1 net-sales business mix H1 net-sales regional mix In USD billions North America Biosimilars 1.1 bn 1.5 bn 21% Europe 29% 2.8 bn 5.2 bn 5.2 bn +4% at CC 54% +4% at CC 71% 25% International Generics 1.3 bn 3.7 bn CC: constant curre
Slide 20: Double-digit growth for biosimilars driven by launches
2 Double-digit growth for biosimilars driven by launches In USD billions +4% CGR H1 dynamics at CC 5.0 5.2 6% Net sales by Biosimilars business 1.3 1.5 17% Strong Europe biosimilars growth H1 2025 vs PY from Pyzchiva and Tyruko 3.7 3.7 2% launches. International: continued strong performance from H1
Slide 21: All three regions growing at comparable growth rates
2 All three regions growing at comparable growth rates In USD billions +4% CGR at CC H1 dynamics 5.2 6% 5.0 Net sales by 1.1 +4% Europe region 1.1 1.3 +8% Generics grew due to launches H1 2025 1.3 from 2024, with biosimilars vs PY 2.6 2.8 +6% benefiting from launches, including Pyzchiva and Tyruko H
Slide 22: Strong H1-volume growth, with price erosion in line with full-year expectations
2 Strong H1-volume growth, with price erosion in line with full-year expectations Net-sales growth in USD billions Strong biosimilars volume +4% at CC uptake across all regions 5.0 5.2 0.3 -0.1 Price erosion of 3% pts, in line +7% -3% stable with expectations FX stable compared to prior H1 2024 Volu
Slide 23: Strong profitability driven by success in biosimilars and operating leverage
2 Strong profitability driven by success in biosimilars and operating leverage Summary core P&L Core gross profit improvement from in USD millions favourable product mix from double- Change Change digit biosimilars growth. Operational H1 2025 in % at CC % improvements were offset by price erosion an
Slide 24: Core EBITDA margin improvement reflected improving mix and cost leverage & discipline
2 Core EBITDA margin improvement reflected improving mix and cost leverage & discipline Core EBITDA margin % of net sales Favourable product mix from +2.5% pts double-digit biosimilars -0.2% 0.1% 20.0% growth, partly offset by impact -1.4% 2.1% 17.5% 1.9% of price erosion Benefit from SG&A and D&R e
Slide 25: Mix and operating leverage to drive second-half sequential margin expansion
2 Mix and operating leverage to drive second-half sequential margin expansion Core EBITDA Summary Core P&Lmargin % of net sales Continued improvements in mix from double-digit biosimilars growth and launches 20.0% Operating leverage driven by inflation less than net-sales growth FY 2025 core EBITDA
Slide 26: Management free cash flow more than doubled in H1
2 Management free cash flow more than doubled in H1 H1 2025 management free cash flow Working-capital improvements partly in USD millions driven by factoring of our receivables 1,046 9 (91) Capex includes ongoing investment in (183) Slovenia, investments in separation- related investments in facilit
Slide 27: Net debt, excluding foreign exchange, broadly unchanged
2 Net debt, excluding foreign exchange, broadly unchanged Net debt in USD billions Gross debt (excl. FX): marginal increase, reflecting bond Jun Dec Change Change issuances, partly offset by 2025 2024 excl. FX repayment of term loans Gross debt 5.3 4.5 0.8 0.2 FX impact on gross debt due to weaker U
Slide 28: Full-year 2025 guidance confirmed
2 Full-year 2025 guidance confirmed Net-sales growth Mid-single digit % at constant currencies Core EBITDA margin Around 21% % of net sales Price erosion of low to mid-single digit Key assumptions New EU tariff of 15% applicable Foreign-exchange impacts: based on spot rates1 Net sales +2% pts Co
Slide 29: Wrap-up
Richard Saynor Chief Executive Officer Wrap-up
Slide 30: Strong results and outlook, supported by continued progress in shaping biosimilars platform
3 Strong results and outlook, supported by continued progress in shaping biosimilars platform H1 results Outlook Development and supply Strong performance, with Additional launches in H2 Continuing to invest in accelerated sales growth in long term second quarter Set for sequential core EBITDA margi
Slide 31: Opportunities ahead: significant potential in biosimilars and generics over next decade
3 Opportunities ahead: significant potential in biosimilars and generics over next decade Leading biosimilars pipeline Strong generics pipeline >USD 300 bn >USD 340 bn LoEs over next decade1 LoEs over next decade3 27 USD representing >400 USD representing assets2 ~200 bn 64% assets2 ~220 bn 65% in d
Slide 32: Q&A
Q&A Richard Saynor Remco Steenbergen Chief Executive Officer Chief Financial Officer
Slide 33: Appendix
Appendix SANDOZ
Slide 34: Select upcoming investor events
Select upcoming investor events Morgan Bank of Octavian JP Morgan Handelsbanken Sandoz Stanley America Swiss Global Healthcare Global Roadshow Q3 & 9M Healthcare Healthcare CEO Call Healthcare sales update Road Trip Conference Series Conference Helsinki & Basel New York Virtual London Stockholm Virt
Slide 35: Strengthened balance sheet and liquidity to support future growth
Strengthened balance sheet and liquidity to support future growth Non-current financial debt by maturity1 in USD millions New USD 2.0 billion multi- currency revolving credit facility replacing initial and unutilized USD 1,000 1.25 billion facility Dual-tranche CHF 400 million and 500 single-tranche
Slide 36: Global biosimilars pipeline (1/3)
Global biosimilars pipeline (1/3) Key near-term launches and assets in clinical development Originator net Own / targeted In-house / Potential launch sales targeted Current status brand partnered dates1,2 (USD bn)1 EnzeevuTM and Afqlir® Regulatory approval in Europe Europe: Q4 2025 9 In-house aflibe
Slide 37: Global biosimilar pipeline (2/3)
Global biosimilar pipeline (2/3) Assets in regulatory review Own / targeted Originator net sales In-house / Current status brand targeted (USD bn)1 partnered Herwenda® Regulatory approval in Europe 2 Partnered trastuzumab Regulatory submission in US Avzivi® Regulatory approval in Europe 2 Partnered
Slide 38: Global biosimilars pipeline (3/3)
Global biosimilars pipeline (3/3) Assets in technical development Targeted Originator net sales In-house / brand targeted (USD bn)1 partnered Darzalex® daratumumab SC 17 Partnered 9 additional assets in early development Enhertu® targeting 15 Partnered trastuzumab deruxtecan USD 56 bn of Tecentriq®
Slide 39: Investor Relations contacts
Investor Relations contacts Craig Marks Tamara Hackl Rupreet Sandhu Katie Fischer Head of IR Senior Director, IR Senior Director, IR Co-Ordinator, IR +44 7818 942 383 +41 7979 052 17 +41 7941 054 72 +41 7950 051 53 39 H1 2025 results investor.relations@sandoz.com
Slide 40: Thank you
Thank you SANDOZ