Sandoz Group Ltd · SIX:SDZ
Sandoz — Investor Presentation (February 2025)
32 slides from Sandoz's investor presentation, February 2025
Slide 1: Investor Presentation
January/February 2025 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains forward‐looking statements that reflect the current views of management, which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Sandoz to differ materially from those expressed
Slide 3: Agenda
Agenda 1. Sandoz at a glance 2. Topline drivers 3. Margin expansion 4. Attractive financial outlook 5. Long-term pipeline 3
Slide 4: Sandoz at a glance
Sandoz at a glance
Slide 5: Leading position in an attractive market
Leading position in an attractive market > USD 200 billion USD 9.6 billion Top 3 player Global market size1 FY 2023 net sales3 In 90% of European markets4 Growing at 7%1,2 with increasing Double-digit growth in biosimilars European champion present share of biosimilars in over 40 markets All regions
Slide 6: Attractive and growing global market with increasing share in biosimilars
Attractive and growing global market with increasing share in biosimilars Off-patent market1 Gross sales, in USD bn Key drivers CAGR ’23-’32 Supportive demographic trends 443 +7% 122 Increasing market adoption +19% Growing value of loss of exclusivity 233 25 Shifting share towards higher 321 +5% val
Slide 7: European champion and global leader in biosimilars
European champion and global leader in biosimilars Ongoing mix shift toward higher value products Business mix Regional mix FY 2023 in USD Biosimilars 23% International 2.2bn 26% 2.5bn 9.6bn 9.6bn 52% +7%1 +7%1 Generics North America Europe 77% 22% 7.4bn 2.1bn 5.0bn 7 Note: Net sales in this documen
Slide 8: Global leadership and scale; #1 in Europe, Sandoz biggest market
Global leadership and scale; #1 in Europe, Sandoz biggest market Breakdown of global Generics and Biosimilars players by region1 Gross sales, in USD bn #1 in stable and profitable 12.9 European market Company A 10.7 At scale but not over-exposed Company B 8.1 to North America Company C 6.1 Targeted
Slide 9: Broad and deep pipeline and investing to expand
Broad and deep pipeline and investing to expand D&R1 Generics Biosimilars D&R as a % of net sales2 9.2% 9.6% ~450 28 products3 products3 $248bn $201bn FY 2022 FY 2023 originator sales targeted4 originator sales targeted4 • 2/3 pipeline expansion with key biosimilar investments • 1/3 existing pipelin
Slide 10: ESG Highlights 2023
ESG Highlights 2023 Sandoz purpose is to pioneer access for patients Access & People Environment • >800m1 patient treatments provided • Committed to Science Based Targets initiative (SBTi) to limit global warming to 1.5 degrees Celsius • USD >18bn2 in savings delivered by our key products to EU and
Slide 11: Topline drivers
Topline drivers
Slide 12: North America delivering half the mid-term growth with several key launches
North America delivering half the mid-term growth with several key launches Europe North America International 25% 50% 25% of topline growth contribution of topline growth contribution of topline growth contribution • Leverage leadership position, • Mix shift from biosimilars • Focused approach to t
Slide 13: Strong momentum in the business driven by biosimilars
Strong momentum in the business driven by biosimilars Q3 In USD billion % cc1 +12% Biosimilars Strong double-digit growth from the uptake of 2.6 2.3 Hyrimoz® in the US, acquisition of Cimerli®, 0.5 0.7 +37% continued strong demand for Omnitrope® and 1.8 1.9 +4% launch of Tyruko® and Pyzchiva® in Eur
Slide 14: Robust mid-term pipeline focused on high-value assets
Robust mid-term pipeline focused on high-value assets 2024 – 2028 Generics Biosimilars Sandoz potential launches1 (# products) 71 7 Targeted USD 99 billion USD 28 billion originator sales2 Complex injectables, oncology Oncology, immunology Key products / classes solids, GLP-1s and others and others
Slide 15: Meeting regulatory milestones and launching biosimilars
Meeting regulatory milestones and launching biosimilars Wyost® / Hyrimoz® Tyruko® Pyzchiva® EnzeevuTM Jubbonti® The #1 First and only Launched in US settlement Approved biosimilar biosimilar Europe; US clears path for in the US in the US on market; strong settlement clears launch by uptake since pat
Slide 16: Partner of choice across the value chain
Partner of choice across the value chain Securing long-term biosimilars manufacturing capacity Accessing development capabilities, expertise and innovative technologies Adding new pipeline and commercial assets Leveraging commercial, development, regulatory and legal capabilities Efficient use of ca
Slide 17: Margin expansion
Margin expansion
Slide 18: Clear runaway to expand margin
Clear runaway to expand margin Core EBITDA margin 2023 – 2028 (illustrative), % of net sales Strong volume growth across regions driven by higher margin products, price erosion ~150bps 24 to 26% in line with historical averages ~350bps ~200bps Organizational efficiency Operational improvements 18.1%
Slide 19: Procurement optimization driving operational improvements
Procurement optimization driving operational improvements Leverage supplier Unveil transformative Simplify processes & ecosystem value platforms adopt new technologies Creating value through collaboration Initiatives to promote effective Leveraging technologies and strategic partnerships to drive sp
Slide 20: Delivering key milestones across our network
Delivering key milestones across our network Focused vertical Operational Network design integration excellence • Reduction of internal • EUR 200m investment in • Introduction of increased manufacturing sites antibiotics API lot size leading to capacity ahead of schedule, with manufacturing leading
Slide 21: Transforming and simplifying the organizational structure
Transforming and simplifying the organizational structure ~USD 350m ~USD 200m 2026 full achievement of expenses run-rate savings run-rate savings Key principles Transformation program • Standardizing processes • Launched in H1 2024 • Reducing layers and spans • ~USD 50m of savings expected in H2 202
Slide 22: Attractive financial outlook
Attractive financial outlook
Slide 23: Mid-term guidance
Mid-term guidance 2028E Sales growth1 % in constant currencies Mid-single digit Core EBITDA % margin on net sales 24 to 26% Dividend policy % of core net income 30 to 40% 23 1. Net sales to third parties, in constant currencies
Slide 24: Maintaining robust balance sheet to support future growth
Maintaining robust balance sheet to support future growth In USD December 31, June 30, Change million 2023 2024 in USD Well-balanced maturity profile with total financial debt 71% Gross fixed and 29% floating 4,259 4,146 113 financial debt Total liquidity decreased Liquidity 1,144 710 (434) mainly d
Slide 25: Free cash flow generation supporting investments in the latter years of the plan
Free cash flow generation supporting investments in the latter years of the plan Free cash flow Attractive cash flow profile and strong balance sheet 2021 – 2028 (illustrative), in USD billion • Increasing EBITDA to cash conversion • Working capital optimization 2.5x • Prudent capital structure 1.0
Slide 26: Long-term opportunities to drive future growth
Long-term opportunities to drive future growth
Slide 27: Over USD 400 billion of LoE opportunities to tackle beyond 2028
Over USD 400 billion of LoE opportunities to tackle beyond 2028 Market LoE value1 Biosimilars LoE value expansion In USD billion in the long-term driven by traditional biologics and new 465 technologies such as ADCs 222 New technologies to capture 248 25% of the biosimilars market in the next decade
Slide 28: A winning GLP-1 strategy relying on 3 principal success factors
A winning GLP-1 strategy relying on 3 principal success factors Continuous, flexible, Timely launch with the 1 Right product(s) 2 yet competitive supply 3 right commercial model • Molecules with strongest • Available API and FDF supply • Entry in early and key markets clinical data and economics wit
Slide 29: Everything in our hands to drive long-term shareholder value
Everything in our hands to drive long-term shareholder value Compelling market European champion Significant biosimilar Multiple levers to dynamics and well positioned launches driving growth deliver margin in other regions and favorable mix expansion Established as partner Comprehensive and Strong
Slide 30: Appendix
Appendix
Slide 31: Maximizing near-term biosimilars launches
Maximizing near-term biosimilars launches Own/targeted Originator net sales brand Therapeutic areas targeted (USD bn)1 Current status Proposed launch dates5 Tyruko® Neurology / Approved in US US: 20252 natalizumab Immunology 2 Launched in Europe Wyost®/Jubbonti® Bone diseases / Approved in US US: Q2
Slide 32: Glossary
Glossary Abbreviation Definition Abbreviation Definition API Active pharmaceutical ingredient GLP-1 Glucagon-like Peptide-1 ATC Anatomical therapeutic chemical IP Intellectual property ADC Antibody-drug-conjugates LoE Loss of exclusivity (primarily referring to date of originator patent expiry) BD&L