Biotest AG — Investor Presentation 2013

Aug 13, 2013

Biotest AG H1 2013 Conference call

13 August 2013

Disclaimer

• This document contains forward-looking statements on overall economic development as well as on the business, earnings, financial and asset situation of Biotest AG and its subsidiaries. These statements are based on current plans, estimates, forecasts and expectations of the company and thus are subject to risks and elements of uncertainty that could result in deviation of actual developments from expected developments.
• The forward-looking statements are only valid at the time of publication. Biotest does not intend to update the forward-looking statements and assumes no obligation to do so.
• All figures reported relate to the Continuing Operations of the Biotest Group. After the sale of the Medical Diagnostic activities to Bio-Rad Laboratories Inc. and the sale of the segment Microbiological Monitoring to Merck KGaA, both activities are being reported as Discontinued Operation
• All comparative figures relate to the corresponding last year s period, unless stated otherwise.

Biotest Group: Highlights H1 2013

• Biotest H1 2013 Group Sales up by 10.5% to € 243.3m Increase largely attributable to an increase in volume and sales in international markets
• H1 2013 EBIT increase by 13.1% to € 25.9m
• Successful launch of Bivigam® in the US in February 2013
• Successful capital increase; placement of 1.46 m new preference shares, net proceeds € 73m
• Confirmation of guidance : FY 2013 sales increase of 10 - 15% FY EBIT increase of 10 - 15%

Capital Increase 2013

Comfortable situation to start with

Our plan for the capital increase

Roadshow

Frankfurt (2x)	London
München	Kopenhagen
Heidelberg	Stockholm
Stuttgart	Oslo
Düsseldorf	Zurich
Köln	Madrid
Luxembourg	Boston
Paris	New York City

Transaction structure: 100% pre-placement with clawback

Pricing for new shares

• Closing price of Biotest preference shares on Friday, 7 June 2013: € 52.50
• 3-days volume weighted average share price (4-7 June 2013): € 53,85
• Volume weighted average share price on 7 June 2013: € 53.18
• Subscription price: € 52.00
• Discount to € 52.50: 0.95%
• Discount to € 53.85: 3.43%
• Discount to € 53.18: 2,22%

This is a fantastic low discount!

Subscribers of new shares

* 597,871 shares (40.9%) deliberately not subscribed by OGEL and KSK Special Funds, Biberach

Very strong balance sheet

Balance Sheet as of 30 June 2013

• With the successful capital increase Biotest is well prepared for new investments in expanding our capacity
• High equity portion allows a high debt capacity
• Higher number of shares outstanding and new investors should lead to an increased liquidity in our shares

Next steps: secure debt financing and cash flow

Financials H1 2013

Sales grow in line with expectations

Sales by region (€ million)

Significant earnings increase

0 10 20 30 H1 2012 H1 2013 Earnings after taxes (€ million) +54.5% 9.9 15.3 0 10 20 30 H1 2012 H1 2013 EBIT (€ million) +13.1% 22.9 25.9

Financial position: stronger equity base

Financial Position of the Biotest Group (€ million)

• at end of H1 2013: • Equity ratio end of H1 2013 60.7% (54.1% on 31 Dec. 2012)
• Net debt was reduced to € 5.3m (€ 55.3m on 31 Dec. 2012)
• Cash
• Current assets
• Non-current assets
• Current liabilities
• Non-current liabilities

Equity

Biotest confirms guidance 2013

Sales growth 10 - 15 % vs. 2012 EBIT growth 10 - 15 % vs. 2012

Biotest Strategy for 2020

Investments. Expansion. Future

Biotest investments in US until June 2013

• 2007: Acquisition of Nabi Pharmaceuticals Corp.: USD 185m
• Capacity enlargement in Boca Raton/ Florida: USD 80m
• Revenue 2012: USD 100m
• Employees:* 750 FTE

Production site Florida, USA

* 30 June 2013

Biotest investments in Dreieich (2003-2013)

Total investment in Dreieich 2003 - 2013: € 165m

• New plasma fractionation
• New coagulation factors production
• Enlargement immunoglobulin production
• New packaging/ upgrade filling
• Doubling of albumin production to be finalised in Q3 2013
• Enlargement of logistics to be finalised end of Q3 2013

Goals for the next years:

• Capacity expansion
• New technology
• New products
• Quality improvement

Production site Dreieich

Additional filling capacity & new packaging facility in Dreieich – finalised in Q2 2013

Filling:

• New vessels (1,800 litres)
• New filling line (doubling of capacity)

Packaging:

• New processes and machinery
• Increase from 3 to 6 million of packaging units
• All updates realised during ongoing operations

New Biotest investments in Dreieich until 2018

Global market trend immunoglobulin (SC/IVIG)

The global Immunoglobulin market is expected to grow with an average growth rate of ~5% p.a. in the period between 2011 and 2025.

Note: Expected CAGRs exclude the Alzheimer upside potential.

Sources: Biotest Market Research based on MRB (2012), UBS (29 May 2012, 3 December 2012).

* based on 2012 price levels

New plasma derived development products

2013	2020
Civacir
Fibrinogen
IgG Next Generation
IgM Concentrate
Fibrinogen (High Yield process )

Biotest investments in further growth

Expansion of global capacity to:

Plasma fractionation:

3 million litres/year currently: 1.5 m litres/year

Immunoglobulins:

13 t/year currently: 5.5 t/year

Albumin:

75 t/year currently: 21 t/year

• Capacity expansion programme in Dreieich
• Construction of new production plants at head quarter in Dreieich
• Duration: 2013 to 2018
• Investment: € 200 250m
• More than 300 additional jobs

* excluding already initiated projects (e.g. filling expansion)

A modular approach for a production building

Building(s) and equipment will be implemented stepwise in connection with the progress of the development products.

Location of capacity expansion Dreieich

Balanced funding of expansion

Total CapEx (estimated): € 200 - 250m

Corporate Development and Internationalisation

Bivigam® strengthens position in the US

• Polyspecific intravenous immunoglobulin, comparable to Intratect®
• Excellent efficacy and safety profile
• Successful launch in February 2013, sales in H1 2013 of USD 14.4m
• Successful market introduction especially in home care treatment at premium price level without discount
• Continuous ramp up of production; full scale will be reached in 2014

Business further internationalised

• Scandinavia:

• New distributor AntropPharma in Scandinavia
• Successful market introduction of Zutectra® at highest price in EU
• Further business extension planned in Scandinavia

• Russia:

• Merz Pharma GmbH as distributor
• Successful transfer of business
• Sales increase of 10% in H1 2013 vs. H1 2012

• China:

• New distributor Wanbang Biopharma
• Middle East:
• Tender businesses
• Increase of sales
• Greece:
• Successful transfer of business to Vianex as distributor
• Further reduction of receivables
• Sales increase of 45% vs. previous year

Vision – our road to 2020

• Consistent focus on biologics for the therapeutic areas of haematology, immunology and intensive care medicine
• Continuous investment in the development of new therapeutic options
• Worldwide operations with a strong base in Europe and the US
• Focused on growth

Contact and Financial Calendar 2013

Investor Relations Biotest AG:		Financial Calendar 2013
Dr. Monika Buttkereit Head of Investor Relations		13 Aug. 2013	Q2 Report 2013
Phone: Fax: E-Mail:	+49 (0) 6103 - 801 -4406 +49 (0) 6103 - 801 -347 investor_relations@biotest.de	12 Nov. 2013	Q3 Report 2013