EQL Pharma AB

Report Publication Announcement • Mar 7, 2025

Press release

Lund, 7 March, 2025 EQL Pharma AB (publ) 556713-3425

New financial targets for the period 2024/25 – 2028/29

EQL will shortly conclude the 5-year plan for 2020/21 – 2024/25. Thus, the Company today 7 March presents new financial targets for the period 2024/25 – 2028/29.

• Our target is to increase sales at an annual growth rate of 30% (CAGR), starting with the full year 2024/25 and ending the full year 2028/29.
  • o Growth will mainly be organic
  • o In connection with any acquisitions, the primary sources of funding will be existing cash alongside potential new debt
  • o Target to reduce net leverage (net debt/pro-forma adjusted EBITDA) to below 2.5x. Temporary deviations above this level may occur in connection with strategic investments or acquisitions, but we do not intend to exceed 4.0x
• The EBITDA margin target for the period is 25%
  • o Towards the end of the period, the target is to stabilize the EBITDA margin above 25%
  • o The margin may temporarily be slightly lower than 25% in the middle of the period as a consequence of the margin profile for certain planned launches
    • o Under the five-year plan, revenue growth will be prioritized over higher EBITDA margin to maximize long-term shareholder value taking into consideration a maintained healthy margin

The new financial targets will be presented in more detail today 7 March at the company's Capital Markets Day at Carnegie's premises in Stockholm. The full presentation from the Capital Markets Day will be available on EQL's website.

This disclosure contains information that EQL Pharma AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact persons, 2025-03-07 08:30 CET.

For further information, please contact: Axel Schörling CEO, EQL Pharma AB (publ) Phone: +46 (0) 76 317 90 60 E-mail: axel.schorling@eqlpharma.com Website: www.eqlpharma.com

EQL Pharma AB (publ) briefly

EQL Pharma AB specializes in developing and selling generics, i.e., drugs that are medically equivalent to original drugs. The company currently has more than 40 niche generics (i.e., generics with limited competition apart from the original drug) launched in the Nordic markets. In addition to these, there is a significant pipeline of additional niche generics for launch in 2025 and beyond. The business is currently focused entirely on prescription drugs, including hospital products, in the Nordics and selected European markets. EQL Pharma AB has its operations in Lund and is listed on Nasdaq Stockholm. EQL Pharma AB carries out extensive development work in collaboration with leading contract manufacturers and major pharmaceutical companies in the EU and Asia, among others.