Slide 1: H1 2024 results & mid-term outlook
PolyPeptide Group AG H1 2024 results & mid-term outlook 13.08.2024 Baar Switzerland 1
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by the Group operates. While the Group believes that such Alternative Financial Performance Measures (APM) PolyPeptide Group AG (“PolyPeptide” or the “Group”). The research and estimates are reasonable and reliable, they, and This P
Slide 3: Q&A
Q&A The presentation will be followed by a Q&A session. Anyone who wishes to ask a question, or make a comment can do it in the following ways: • Through the telephone by pressing * and 1 (please register on the website to receive the personal dial-in details) In case of assistance please press * an
Slide 4: Agenda
Agenda 1 Summary & progress update Juan José González 2 H1 financial results & guidance 2024 Marc Augustin 3 Strategy & mid-term outlook Juan José González 4
Slide 5: Key messages for today
Key messages for today Solid progress in H1 with improved profitability and operating cash flow; on track to start production ramp-up of large-scale capacity in H2 Upgrade of guidance for 2024, now expecting high single-digit revenue growth for 2024 with a positive mid single-digit EBITDA margin Sha
Slide 6: Strong operational progress in H1 2024
Strong operational progress in H1 2024 • Operational excellence program driving improvements in manufacturing planning and execution, resulting in higher capacity utilization • Disciplined net working capital management allowed to invest in higher inventories ahead of planned growth in H2 2024 • Ong
Slide 7: Continuing to strengthen the organization
Continuing to strengthen the organization • Upgrade of senior-level positions over the last 12 months − Key roles upgraded, including appointment of new Site Directors, with industrial capabilities − Strengthening of Group functions, incl. quality, development, program management • Appointment of Ch
Slide 8: Agenda
Agenda 1 Summary & progress update Juan José González 2 H1 financial results & guidance 2024 Marc Augustin 3 Strategy & mid-term outlook Juan José González 8
Slide 9: Commercial revenue growth driving H1 results
Commercial revenue growth driving H1 results EUR m +2.4% +2.9% 135.6 135.0 0.6 • YoY revenue growth of 2.4%; 2.9% at constant exchange rates • Commercial revenue up 8.6%, reflecting solid 131.8 6.2 customer demand and favorable market trends (+8.6%) across broad portfolio 3.0 • Development revenue d
Slide 10: Back to positive EBITDA
Back to positive EBITDA EUR m +12.8 2.9 • EBITDA increase of EUR 12.8 m in H1 2024 (excluding one-off effect in H1 2023) • Cost increases from investment in headcount as well as inflation 18.5 • Operational efficiencies driving higher productivity and a favorable product mix -9.9 5.7 9.5 -19.4 EBITD
Slide 11: Improved operating cash flow
Improved operating cash flow EUR m Operating cash flow 95.7 0.1 0.3 • Operating net cash flows break even vs EUR -48.3 m in H1 2023 32.2 • Disciplined working capital management offset buildup of inventory to support planned growth 5.5 in H2 2024 10.0 48.5 • Net cash flow from investments of EUR 32.
Slide 12: We upgrade our guidance for 2024
We upgrade our guidance for 2024 Previous New Priorities for 2024 unchanged Revenue growth in % Mid to high single-digit High single-digit (vs 2023 at constant currency rates) • Meet increasing customer demand, continue to strengthen operations Positive mid single-digit and profitability Profitabili
Slide 13: Agenda
Agenda 1 Summary & progress update Juan José González 2 H1 financial results & guidance 2024 Marc Augustin 3 Strategy & mid-term outlook Juan José González 13
Slide 14: Peptides are a highly attractive CDMO market
Peptides are a highly attractive CDMO market • Expect peptide therapeutics market CAGR of Peptide drugs in clinical development (Phase I to III)1 Total 337, split by therapeutical area in % around 10% until 2033, driven by GLP-1 commercial launches2 • Robust metabolic and oncology pipeline, 20% supp
Slide 15: PolyPeptide is well positioned
PolyPeptide is well positioned Torrance (US) Braine-l’Alleud (BE) Malmö (SE) Ambernath (IN) San Diego (US) Strasbourg (FR) • Track record of >1,000 therapeutic peptides manufactured over the last 70 years • Multi-site development and manufacturing network providing customer proximity and flexibility
Slide 16: Sharpened growth strategy
Sharpened growth strategy Strategy Most innovative peptide CDMO Competitive advantages Innovation Development Modularity Multi-site network Operational / quality excellence Foundation Industrial scale capabilities Talent, culture and ESG 16 Classified as Internal Information
Slide 17: We target to double 2023 revenue by 2028
We target to double 2023 revenue by 2028 Illustrative 2x • Growth until 2028 supported by commitments and supply forecasts of existing customers • Main contribution driven by commercial contracts communicated earlier • Base business expected to grow with increasing asset utilization and improved eff
Slide 18: EBITDA margin expected to approach 25% by 2028
EBITDA margin expected to approach 25% by 2028 Illustrative Approaching 25% • Contribution from base business with increasing asset utilization and improving efficiency • Contribution from growth initiatives with implementation of commercial contracts communicated earlier • Operating leverage mainly
Slide 19: Capital expenditures strategy
Capital expenditures strategy • 2021 – 2024 capex cycle of EUR ~280 m to be competed by the end of 2024 • 2025 – 2028 capex cycle with 15% to 20% of revenue • Capacity expansion focused on high return on capital by: − Continuing with expansion across multi-site network − Leveraging proprietary techn
Slide 20: PolyPeptide mid-term outlook
PolyPeptide mid-term outlook • Strategy to be the most innovative peptide CDMO, anchored on three Double 2023 revenue by 2028 competitive advantages − Innovation focused on green chemistry and industrial manufacturing − Superior pipeline development EBITDA margin approaching 25% by 2028 capabilities
Slide 21: Q&A
Q&A Anyone who wishes to ask a question, or make a comment can do it in the following ways: • Through the telephone by pressing * and 1 (please register on the website to receive the personal dial-in details) In case of assistance please press * and 0 • Through the webcast by writing the questions v
Slide 22: Appendix
Appendix PolyPeptide Group AG polypeptide.com 22
Slide 23: Result for the period
Result for the period Summary P&L 30 June 2024 (unaudited) kEUR H1 2024 H1 2023 Revenue 135,043 131,834 Financial result EBITDA 2,869 -19,387 • Higher interest expenses in H1 2024 margin % 2.1% -14.7% related to the revolving credit Depreciation, amortization & impairment -15,440 -15,007 facility (R
Slide 24: Consolidated income statement
Consolidated income statement 1 January – 30 June (unaudited) 24
Slide 25: Consolidated statement of financial position
Consolidated statement of financial position As at 30 June (unaudited) 25
Slide 26: Consolidated statement cash flow
Consolidated statement cash flow 1 January – 30 June (unaudited) 26
Slide 27: Contact and calendar
Contact and calendar Contact Events 2024 Michael Stäheli 14 August 2024 Roadshow Zurich with Octavian Head of Investor Relations & Corporate Communications 5-6 September 2024 Morgan Stanley Healthcare Conference New York T: +41 43 502 0580 E: michael.staeheli@polypeptide.com 9 September 2024 Roadsho
Slide 28: Thank you
Thank you PolyPeptide Group AG polypeptide.com
Slide 29: Classified as Internal Information
Classified as Internal Information