Schott Pharma — Investor Presentation 2024

Jan 26, 2024

Q4 / FY 2023 Results presentation

Andreas Reisse, CEO Dr. Almuth Steinkühler, CFO

Disclaimer

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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 & Business Update

Andreas Reisse, CEO

© SCHOTT Pharma AG & Co. KGaA

Pure-play focus on an attractive, growing segment: Injectable drugs

1) Based on FDA.gov

2) Expected CAGR over 2022-2026E

>50% of medicines approved by the FDA in 2022 were injectables¹ 426 579 2022E 2026E Estimated injectable drugs market size (€ bn) >8% CAGR >8% CAGR² : one of the fastest growing routes of drug administration, expected to outpace total drug market growth

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Delivered on all promises

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Largest German IPO in 2023 followed by SDAX entry

Full-year targets achieved

with continued strong profitable growth

Exceeded ambitions with 48% revenue share from strongmargin high-value solutions

Successful expansion of production capacities esp. for fast-growing HVS business

Leading the way with product innovations that serve pharma megatrends

Achieved full-year targets and guidance

	FY23 Guidance	FY23 Actual
Revenue	EUR 880m – EUR 900m	EUR 899m +9% yoy
EBITDA margin		26.6% In line with FY22 EBITDA margin
HVS revenue share	Mid 40s% range	48%
CAPEX1	EUR 155m – EUR 175m	EUR 176m 20% of revenues
Dividend	~10% – 20% range payout ratio	Proposal: 15% of the profit for the period

¹ Capex excluding leasing

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Execution on growth strategy – capacity expansion and shift to high-value solutions

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Product innovations that serve pharma megatrends

SCHOTT TOPPAC® freeze syringes for deep-cold drugs

First drug delivery system to protect drugs down to -100°C

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Addresses an extensive drug development pipeline, incl. mRNA

Winner of Pharma Innovation Award 2023

cartriQ® cartridges for commercial filling of GLP-1

Ready-to-use sterile cartridges available for clinical and commercial filling

Caters to the growing market of GLP-1 drugs, insulin and high-value biologics

Successful expansion of HVS production capacities

Germany

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Continuous ramp-up of production capacities ahead of plan

Hungary

Start of production of prefillable glass syringes planned for summer 2024

Majority of production capacity already contracted by customers

Switzerland and U.S.

Expanding capacity for RTU cartridges in Switzerland

Expanding capacity for RTU vials in the U.S.

Financial Update

Dr. Almuth Steinkühler, CFO

Key financial figures

¹ Capex excluding leasing

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Strong revenue growth through execution of strategy

Key developments

Solid finish at the upper end of the revenue guidance (EUR 880 – 900m)

Growth mainly driven by the high demand for HVS products supporting the strong performance in the DDS segment

Successful ramp-up of new DDS capacities to meet increasing demand

DCS segment impacted by temporary destocking of vials in H2 23 as expected

¹Segment split excluding consolidation effects

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High EBITDA margin maintained driven by strong HVS momentum

Key developments

FY23 EBITDA performance in line with strong revenue growth

EBITDA margin maintained at previous year's level despite the effects from destocking in vials

DDS with notable margin expansion fueled by the high revenue growth

Profitability in DCS impacted by underutilization in vials

¹Segment split excluding consolidation effects

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Continued investments support future growth

Key developments

FY23 CAPEX at the upper end of the guidance

Successful implementation of HVS strategy enabled by the high level of growth investments

CAPEX primarily driven by the continued syringe capacity expansions in Germany and Hungary

¹ Capex excluding leasing

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Strong cash generation enables us to self-fund our high-growth investments

Key developments

Good free cash flow generation of EUR 10m in FY23 despite record growth investments and increasing working capital

Higher CAPEX driven by expansion of capacities

Increase in working capital due to expansion of the HVS business which has a slightly longer working capital cycle

¹ Op. CF = Cash flows from operating activities | 2 Inv. CF = Cash flow from investing activities

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We believe in sustainability as a key driver to achieve our strategic goals

We strive for Climate Neutrality by 2030

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• Published first sustainability report
• Strong EcoVadis GOLD achieved again
• Science Based Targets initiative (SBTi) confirmed emissions reduction targets

We pioneer circular packaging solutions within the pharma industry

Three landmark development contracts with key customers secured

We live our mission through our committed and diverse workforce

• Very high Employee Commitment Index (ECI) of 85
• 24% of leadership positions are held by women

Financial guidance for fiscal 24 and mid-term

	FY 24	Mid-term	Additional information for FY 24
Organic Revenue growth (excl. FX effects)	9% – 11%	Above 10% CAGR	HVS share: ~50% (targeting >60% in the mid-term)
			CAPEX1 : EUR 200 – 230m
EBITDA margin (excl. FX effects)	Approx. prior year's level (incl. ramp up of EUR 10-15m)	Low 30s%	Dividend: 10% – 20% payout ratio

¹ Capex excluding leasing

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Outlook

Andreas Reisse, CEO

© SCHOTT Pharma AG & Co. KGaA

Our strategic priorities for 2024: Continued profitable growth with an increase in HVS share of revenues

Strategic capacity expansions

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• Germany: Further steep ramp-up of polymer syringe capacity
• Hungary: More than doubling our production capacity for prefillable glass syringes
• Switzerland: Realization of additional sterile cartridge production
• Serbia: Construction of new best-cost site for ampoules
• USA: Significant increase of RTU vials capacity
• India: Further expansion of glass syringe production

Strong innovation pipeline

• Extension and further commercialization of EVERIC® product family
• First range of sustainable, high-quality products with FIOLAX® Pro glass from SCHOTT to reduce carbon footprint of supply chain by approx. 50%
• Further commercialization of large-volume polymer syringes used for homecare treatments of autoimmune diseases

18 © SCHOTT Pharma AG & Co. KGaA

Continuing our successful equity story

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We have delivered on all promises, grown profitably and fully achieved guidance. Our portfolio addresses pharma megatrends, and innovation will remain our growth driver.

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.

Thank You Next financial events

29 February 2024: Q1 results 14 March 2024: Annual General Meeting

27 June 2024: H1 results