Schott Pharma — Investor Presentation 2024

Jun 27, 2024

Q2/H1 2024

Results presentation

Andreas Reisse, CEO
Dr. Almuth Steinkühler, CFO

Disclaimer

This presentation has been prepared solely for use at this meeting. This material is given in conjunction with an oral presentation and should not be taken out of context. By attending the meeting where this presentation is held or accessing this presentation, you agree to be bound by the following limitations.

This publication has been prepared by SCHOTT Pharma AG \& Co. KGaA. It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in SCHOTT Pharma's disclosures, in particular in the chapter "Risks" in SCHOTT Pharma's annual report. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of SCHOTT Pharma may vary materially from those described in the relevant forward-looking statements.

These statements may be identified by words such as "expect," "want," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. SCHOTT Pharma neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.

Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). SCHOTT Pharma's net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial metrics used at SCHOTT Pharma can be found on our web site (https://www.schott-pharma.com/investor-relations).

The information contained in this presentation is provided as of the date of this presentation and is subject to change without notice.

Due to rounding, individual numbers presented throughout this, and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures to which they refer.

For technical reasons, there may be differences in formatting between the accounting records appearing in this document and those published pursuant to legal requirements.

Strategy \&

Büșiness Update
Andreas Reisse, CEO

Based on Q2 2024 results, SCHOTT Pharma is well on track to meet its full year guidance

Revenue ${ }^{1}$ :
EUR 247m (+11\%)

Continued growth in revenue despite high basis of previous year

EBITDA margin ${ }^{1}$ : $27.0 \%$

Continued high profitability at constant currencies while covering significant ramp-up costs

HVS share of $53 \%$ in H1 2024

Consequent execution of strategy to achieve the midterm target of $60 \%$ HVS share

Robust market trends confirm growth strategy Continued execution on shift to high-value solutions

SCHOTT Pharma is innovating along the entire value chain and major pharma megatrends

Advancing large volume infusion
Collaboration with KORU Medical Systems to simplify subcutaneous drug administration

Addresses the market for treatments requiring recurring dosing regimens, e.g., chronic diseases or cancer

Broader functional service offering
One-stop shop for drug developers, covering full range of analytical tests needed for drug submission
Helps customers to accelerate the complex, time- and cost-intensive drug registration process and bring their products to market faster

Pioneering sustainability efforts

Collaborating with Big Pharma to transform industry and advance net zero transformation

Piloting secondary packaging recycling initiatives

Expansion projects on track: strengthening global presence with new production sites

Inauguration of new state-of-the-art production

Successful recent start of commercial production of prefillable glass syringes in Lukacsházá, Hungary
Additional production capacity will support major pharma trends to safely store GLP-1 drugs, vaccines, and biologics
Further investments are planned to expand site

New site in the U.S., one of the strongest growth markets
Investment of USD 371m to increase manufacture capabilities for HVS
First U.S. manufacturing facility in Wilson, North Carolina, to fill demand for domestic supply of prefillable glass and polymer syringes Groundbreaking expected for 2025

Financial Update

Dr. Almuth Steinkühler, CFO

Key financial figures for Q2 2024

[^0]
[^0]: ${ }^{1}$ At constant currencies; ${ }^{2}$ Capex excluding leasing
8 (c) SCHOTT Pharma AG \& Co. KGaA

Strong revenue growth despite high comparable base from previous year

Key developments

Strong demand for prefillable syringes and the ongoing expansion of capacities in DDS segment leads to further increase of HVS

DCS segment developed as expected and returned to high level of previous year despite the temporary destocking effect for vials on the customer side

High profitability despite ramp-up costs

Key developments

Strong EBITDA performance in DDS driven by continued strong demand for prefillable syringes and despite the ramp up in Hungary

EBITDA margin in DCS segment affected by temporary underutilization in vials and planned rampup costs for Serbia

Reported EBITDA was strongly impacted by adverse FX effects

Strong cash generation to fully self-fund strategic investments

Key developments

Free cash flow remained strong in H1 2024 despite significant growth investments and adverse FX effects

Growth investments into expansion of capacities fully selffunded by strong operating cash flow generation

Investments in H1 2024 are dominated by the expansion of capacities to execute on HVS strategy

Guidance for fiscal 2024 and mid-term confirmed

	FY 24	Mid-term
Organic revenue growth ${ }^{1}$	$9 \%-11 \%$	Above 10\% CAGR
EBITDA margin $^{1}$	Approx. prior year's level (incl. ramp up of EUR 10-15m)	Low 30s\%

Additional information for FY 24
HVS share: 50\%
(targeting $>60 \%$ in the mid-term)
CAPEX ${ }^{2}$ : EUR $165-185 \mathrm{~m}$
(old: EUR 200 - 230m)
Dividend: $10 \%-20 \%$ payout ratio

[^0]
[^0]: ${ }^{1}$ At constant currencies; ${ }^{2}$ Capex excluding leasing
12 © SCHOTT Pharma AG \& Co. KGaA

Outlook

Andreas Reisse, CEO

Continuing our successful equity story

Our good H1 results show that we are well on track to meet our full year guidance.

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Innovation will remain our growth driver, enabling us to tap into pharma megatrends.

We serve the critical needs of our customers based on strong, trusted and long-term relationships.

We further expand our HVS capacities to capitalize on attractive business opportunities.

We pioneer across ESG initiatives, as sustainability is a key pillar of our strategy.