Galderma Group Ag · SIX:GALD
Galderma — IPO Roadshow (March 2024)
47 slides from Galderma's IPO roadshow presentation, March 2024
Slide 1: Galderma: the dermatology category leader
Galderma: the dermatology category leader Management roadshow MARCH 2024
Slide 2: Legal disclaimer
Legal disclaimer 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 RELEASE, PUBLICATION OR DIS
Slide 3: Attractive, high-growth market & Galderma's unique dermatology strategy
Context Attractive, high-growth market & Galderma’s unique dermatology strategy Competing in fast-growing sub-segments of dermatology as the only truly scaled, pure-play company entirely focused on dermatologists & differentiated through science
Slide 4: Proven strategy in the fast-growing dermatology market
Proven strategy in the fast-growing dermatology market driving consistent, sustainable high growth & margin expansion High-growth and resilient Committed to dermatology, competing in the most attractive, consumer-focused sub-segments market within Injectable Aesthetics, Dermatological Skincare, Ther
Slide 5: Galderma as a 'self-care' category leader in dermatology
Galderma as a ‘self-care’ category leader in dermatology Dermatological science & 1947 770+ 130k+ year of invention of clinical trials Training participants strong consumer heritage in dermatology Cetaphil since 2019 per year Only scaled company fully dedicated Injectable Aesthetics Dermatological S
Slide 6: Galderma is fully focused on dermatology – the fastest growing 'self-care' market
Galderma is fully focused on dermatology – the fastest growing ‘self-care’ market, with strong growth fundamentals Dermatology vs other selected Growth Trends sustaining dermatology’s ‘self-care’ markets1, B USD outlook3 growth trajectory Rising middle-class disposable income fueling Beauty ~270 ~4%
Slide 7: Our 'where to compete' choices focus on attractive sub-segments of dermatology
Our ‘where to compete’ choices focus on large and attractive, high-growth sub-segments of dermatology How we choose ‘where to compete’ Dermatology market segments - Galderma TAM, 2023E, USD Illustrative – graph not to scale 1 Dermatologists & related healthcare Consumer universe specialties play a l
Slide 8: Dermatology market with consistent growth & resilience
Dermatology market with consistent growth & resilience despite macro & consumer headwinds, biologics to drive further growth Galderma total addressable market1, B USD Injectable Aesthetics Dermatological Skincare Therapeutic Dermatology Continued attractive market outlook, further boosted by Consist
Slide 9: Galderma is uniquely positioned with its leading dermatology platform
Galderma is uniquely positioned with its leading dermatology platform Select 2023 examples – non-exhaustive Broadest portfolio with Global scale with omni-channel Market-leading leading science & innovation execution excellence education & services Broadest dermatology portfolio of Global commercial
Slide 10: Establishing a scalable integrated dermatology platform
Phase 1 Establishing a scalable integrated dermatology platform & fueling sustainable growth Proven merits of an integrated strategy, establishing a track-record of double-digit Net Sales CAGR & margin expansion while progressing a differentiated pipeline
Slide 11: A dermatology 'self-care' leadership profile, built since 2019
A dermatology ‘self-care’ leadership profile, built since 2019 via an integrated strategy scaling blockbuster platforms Key pipeline in registration phase Markets we Injectable Aesthetics Dermatological Skincare Therapeutic Dermatology compete in Neuromodulators Fillers & Biostimulators Blockbuster
Slide 12: Galderma reliably delivers results on guidance
Galderma reliably delivers results on guidance while outperforming fast growing market segments Top-line growth, Net Sales, M USD Galderma vs. Dermatology market segments, 2019-2023 CC CAGR +11.9% CC CAGR 2019-2023 Market (segments) +8.5% Total 3,760 CC YoY Guidance 4,082 Galderma 11.9% vs. ~7% 2,70
Slide 13: Leading positions in dermatology worldwide
Leading positions in dermatology worldwide Injectable Aesthetics Dermatological Skincare Therapeutic Derm. #2 #2 #1 9/10 #1 #1 across 2 global global filler global US derms skincare peri- acne, rosacea, & neuromodulator biostimulator recommend procedure actinic keratosis Spearheading next The world’
Slide 14: Commercially scaled global presence
Commercially scaled global presence Top 7 markets, each >100 M USD in Net Sales Other markets where Galderma is present Scaled presence & distribution in >90 markets, with 7 driving >70% of sales 10.1% US robust growth momentum in Injectable Aesthetics & 2019-2023 Net Sales CAGR Dermatological Skinc
Slide 15: Galderma prepared to run as a public company
Galderma prepared to run as a public company Governance Corporate platform External communications • Robust internal governance • Institutionalized financial • Public-grade investor enabled by 4 management management, with streamlined engagement, including quarterly committees with clear roles and e
Slide 16: 2023 performance update
2023 performance update
Slide 17: Growth and profitability guidance consistently met over the past 2 years
Growth and profitability guidance consistently met over the past 2 years Detailed next 2022 Guidance vs Actual 2023 Guidance vs Actual CC YoY Growth1, % CC YoY Growth, % +12% +14% +6% +9% Net Sales +13.9% +8.5% CC YoY Growth1, % Margin Expansion (vs. 2022), bps +12% +14% +200bps +300bps Core EBITDA
Slide 18: Continued strong momentum across segments
Continued strong momentum in Dermatological Skincare, Injectable Aesthetics & acceleration in Therapeutic Dermatology Reported CC YoY Net Sales (M USD) Growth, % Growth, % Key Drivers +8.5% +8.5% 4,082 3,760 • Neuromodulators double-digit growth across geographies, gaining share +6.8% +6.5% across a
Slide 19: +8.5% constant currency Net Sales growth
+8.5% constant currency Net Sales growth driven by volume growth and positive product mix, supported by price gains FY 2023 Net Sales growth composition, YoY growth Key drivers ILLUSTRATIVE ONLY – BAR SIZE NOT AT SCALE • Strong volume growth in Dermatological Skincare including Alastin • Mix driven
Slide 20: Core EBITDA margin expansion supported by premiumisation and efficiency
Core EBITDA margin expansion supported by premiumisation, increased efficiency and OPEX leverage Reported YoY CC YoY 2022, M USD 2023, M USD Growth, % Growth, % Key drivers Net Sales 3,760 4,082 +8.5% +8.5% •A Core Gross Profit margin slightly below 2022 with price and efficiency gains mostly offset
Slide 21: 2023 confirms track record of strong Net Sales and Core EBITDA growth
2023 confirms track record of strong Net Sales and Core EBITDA growth momentum Low teens Net Sales growth, primarily driven by +11.9%1 Injectable Aesthetics and Dermatological Skincare Net 3,417 3,760 4,082 Sales, 2,706 2,711 Resilience during COVID-19 (+1.8% CC YoY M USD growth in 2020), strong reb
Slide 22: Execution of a proven strategy to drive above-market performance
Phase 2 Execution of a proven strategy to drive consistent above-market performance Dependable growth and margin expansion on a proven integrated dermatology strategy in fast-growing markets and incremental portfolio & geographic expansion
Slide 23: Phase 2: Continued execution of a proven strategy
Phase 2: Continued execution of a proven strategy fully benefiting from a diversified product portfolio & broad geographic exposures Phase 1 Phase 2 2019-2023 Establishing an integrated dermatology platform 2024+ Executing a proven strategy to continue outgrowing the & fueling strong growth momentum
Slide 24: QM-1114 with a differentiated profile across 4 dimensions
INJECTABLE AESTHETICS – BROADEST PORTFOLIO WITH LEADING SCIENCE & INNOVATION QM-1114 with a differentiated profile across 4 dimensions, further reinforced by phase 3b data New phase 3b clinical data for both Glabellar Lines (GL) and Lateral Canthal Lines (LCL) Clinical effects reported through 6 mon
Slide 25: Nemolizumab positioned to compete in PN & AD
THERAPEUTIC DERMATOLOGY – NEMOLIZUMAB Nemolizumab is well-positioned to compete in prurigo nodularis (PN) & atopic dermatitis (AD) BLOCKBUSTER POTENTIAL Large and fast-growing biologics market, expected to reach 22 B USD by 2027 based on double-digit market CAGRs, with unmet needs and opportunity fo
Slide 26: Nemolizumab has blockbuster potential in PN and AD
THERAPEUTIC DERMATOLOGY - NEMOLIZUMAB Nemolizumab has blockbuster potential in prurigo nodularis and atopic dermatitis, with more opportunities to explore Short- to mid-term Mid- to long-term Prurigo nodularis (PN) Atopic dermatitis (AD) New indications Well-positioned to be the Expected to be the 2
Slide 27: Alastin continued fast growth and account penetration
DERMATOLOGICAL SKINCARE – GLOBAL SCALE WITH OMNI-CHANNEL EXECUTION EXCELLENCE Alastin continued fast growth and account penetration in the US while expanding internationally Select 2023 examples– non-exhaustive Continuing strong growth momentum, Increasing reach through international doubling sales
Slide 28: Financial guidance
Financial guidance
Slide 29: 2024 guidance
2024 guidance 2023 actuals 2024 guidance Group Net Sales +8.5% +7-10% Growth in Constant Currency Growth in Constant Currency Core EBITDA margin 23.1% % Core EBITDA margin in line with Includes nemolizumab Includes 159 M USD of nemolizumab costs1 2023 at Constant Currency Includes ~250 M USD of nemo
Slide 30: Mid-term guidance
Mid-term guidance Mid-term guidance, 2023-2027E CC CAGR 2019-2023 CC CAGR ‘Teens’ defined as numbers greater than 10% and lower than 20% 11.9% ‘Low to mid-teens1’ CAGR Group Net Sales excl. nemolizumab incl. nemolizumab Injectable Aesthetics 19.0% ‘Low to mid-teens1’ CAGR Topline Dermatological Skin
Slide 31: Continued improvement on underlying profitability
Continued improvement on underlying profitability whilst supporting nemolizumab’s launch preparation Core EBITDA margin evolution ILLUSTRATIVE ONLY – BAR SIZE NOT AT SCALE Core EBITDA margin 24.9% 27.0% excl. nemolizumab costs: Nemolizumab costs include commercial Nemolizumab costs: launch investmen
Slide 32: Commitment to disciplined capital allocation at and post IPO
Commitment to disciplined capital allocation at and post IPO Leverage (Net Debt / Core EBITDA) Capital allocation priorities FYE 2024E 2.25 - 2.50x1 Investing in the existing business, Includes ~175 M USD milestones and earnouts Implies a ~2.3 B USD equity raise at IPO (~3x leverage, based on 2023A
Slide 33: Q&A and final remarks
Closing Q&A and final remarks
Slide 34: Closing summary: attractive market and unique integrated strategy
Competing in the attractive & high-growth dermatology market, proven resilient & poised for continued high growth Unique integrated dermatology strategy, driving competitive differentiation through: • Broadest portfolio with leading science & innovation • Global scale with omni-channel execution exc
Slide 35: GALDERMA
GALDERMA EST. 1981
Slide 36: Appendix
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Slide 37: Financial disclosure by product category
Financial disclosure by product category Product categories Brands 1 Neuromodulators QM-1114 2 Injectable Aesthetics Fillers and Biostimulators Dermatological Skincare Regional Brands Prescription topicals and OTC Therapeutic Dermatology Other Prescription Biologics nemolizumab 2 1. Marketed under t
Slide 38: Limited FX risk given alignment of topline and costs
Limited FX risk given alignment of topline and costs Net Sales by currency (2023) Value and earnings at risk structurally low due to hedge; hedging strategy optimises cost of hedge and net exposure Predominantly mitigation EUR, BRL, AUD and CNY Other USD 54% 46% Transaction risk Net exposure Active
Slide 39: Reconciliation of Net Income to Core EBITDA and Core Net Income
Reconciliation of Net Income to Core EBITDA and Core Net Income In M USD FY 2022 FY 2023 FY 2023 In line with Core EBITDA 791 942 Actual communication % margin 21.0 % 23.1% Transformation Exceptional and transformation related adjustments (87) (54) Costs: 54m Other income / (expenses) (95) (75) Acqu
Slide 40: Reconciliation of EBITDA adjustments
Reconciliation of EBITDA adjustments In M USD FY 2022 FY 2023 Description Costs related to the multi-year Transformation program, which is expected to be largely completed in 2024. Transformation costs relate to third-party consulting fees and project management costs, for the multi-year Platform Tr
Slide 41: Reconciliation of reported to Core P&L items – FY 2022
Reconciliation of reported to certain Core P&L items – FY 2022 Exceptional and transformation In M USD IFRS - as reported related items Amortization Core reporting % Net Sales1 Net Sales 3,760 - - 3,760 Other revenue 64 - - 64 Cost of goods sold (1,194) 20 199 (975) Gross profit 2,630 20 199 2,849 R
Slide 42: Reconciliation of reported to Core P&L items – FY 2023
Reconciliation of reported to certain Core P&L items – FY 2023 Exceptional and transformation In M USD IFRS - as reported related items Amortization Core reporting % Net Sales1 Net Sales 4,082 - - 4,082 Other revenue 35 - - 35 Cost of goods sold (1,232) 0 186 (1,046) Gross profit 2,885 0 186 3,071 R
Slide 43: Reconciliation of reported to Core CAPEX
Reconciliation of reported to Core CAPEX In M USD FY 2022 FY 2023 Acquisition of property, plant and equipment 102 121 Acquisition of intangible assets 58 32 Total capital expenditure 160 153 - Transformation-related investments (33) (8) FY 2023 In line with - IP and operating rights acquisitions (7
Slide 44: Reconciliation of constant currency growth to reported growth
Reconciliation of constant currency growth to reported growth FY 2023 CC vs. FY 2023 Reported Constant currency Reported Effect of exchange rates Net Sales growth Net Sales growth Injectable Aesthetics 6.5% +0.3% 6.8% Dermatological Skincare 12.1% (0.8)% 11.3% Therapeutic Dermatology 8.7% +0.5% 9.2%
Slide 45: Total Net Indebtedness
Total Net Indebtedness Net Debt, M USD 31-Dec-22 31-Dec-23 Total Indebtedness 5,769 5,003 Cash and Cash Equivalents (234) (368) Total Net Indebtedness 5,535 4,635 45
Slide 46: Additional modelling metrics
Additional modelling metrics 2024 Mid-term Transformation Transformation ~30 M USD De minimis after 2024 costs1 costs Milestones Milestones ~200M USD over 2024E-2025E ~175 M USD and earnouts2 and earnouts2 (Includes ~175 M USD in 2024E) Core CAPEX 3 - 4% of Net Sales Core CAPEX Low to mid-single dig
Slide 47: GALDERMA
GALDERMA EST. 1981