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Siegfried reports continued profitable growth fueled by strong underlying business Full-Year Results 2024 Zurich, February 18, 2025
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|2 This presentation may contain confidential and proprietary information. Any use of the presentation or the information therein without specific permission of Siegfried is prohibited. No representations or warranties of any kind are made with regard to the accuracy or completeness of the information provided in or in connection with this presentation. Any statements, estimates and projections with respect to Siegfried’s anticipated future business or performance were prepared based on assumptions and information available at the time this presentation was prepared. Siegfried does not assume any liability or responsibility for actions or decisions of third parties based on this presentation. Disclaimer Safe harbor statement This document is solely for use in connection with the presentation held by Siegfried Holding AG. It is furnished to you for your information only and you may not reproduce or redistribute it to any other person. No representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Siegfried Holding AG shaIl not have any liability whatsoever for any loss whatsoever arising from any use of this document, or its content, or otherwise arising in connection with this document This document may contain forward-looking statements which involve risks and uncertainties. These statements may be identified by such words as "may", "plans", "expects", "believes" and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. No obligation is assumed to update any forward-looking statements. This document does not constitute or form part of an offer to sell or a solicitation of an offer to purchase any shares and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. In particular, this document does not constitute an offering prospectus under Swiss laws nor does it contain an offer of securities for sale in the United States; securities may not be offered or sold in the United States absent registration or an exemption from registration. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe, any such restrictions. By participating in the presentation or by accepting any copy of this document, you agree to be bound by the foregoing.
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|3 Siegfried reports continued profitable growth fueled by strong underlying business Key highlights full-year 2024 Net sales CHF 1,294.6 million + 3.0% in LC + 1.8% in CHF Core net profit CHF 158.9 million prior year: CHF 128.1 million Strategy Grafton acquisition EVOLVE+ in execution Project FALCON Core EBITDA margin 22.1% prior year: 21.5% Outlook 2025 Net sales mid-single digit growth in LC Outlook 2025 Core EBITDA margin above 22% FY 2024 Presentation
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|4 Safety, supply reliability and quality are our licenses to do business Operational highlights 2024 Our health and safety program continues to deliver results − Lost working days reduced by 60% compared to 2023 − ~9,500 safety walkthroughs Quality Impeccable quality record maintained achieved − 8 authority inspections with no critical observations − 4 ISO certifications and over 100 customer inspections − A team of more than 200 experts ensures harmonization of quality processes and standards across sites Supply reliability (OTIF) Full focus on customer service excellence − Optimization of capacity planning − Data harmonization − Process optimization lost time injury frequency rate supply reliability1 countries Certified to deliver toCompared to 2023 >180-32% >92% Safety 1 Measured as on time and in full FY 2024 Presentation
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|5 We translate our sustainability actions into a competitive advantage Sustainability highlights 2024 Integrity, culture and people We help our customers to reduce their environmental footprint of carbon emissions reduced1 reduction of energy and raw material with second-generation processes of management positions in revenue- generating functions are women 48%-45.7% -50% We continued to reduce our environmental footprint − 87% of electricity consumption comes from renewable energy sources − -8.1% energy consumption compared to 2021 − Continuous integrity training sessions − Positive trend in employee engagement survey confirmed − Decarbonized production of one of our most impactful products – initiated − Product carbon footprint calculation as a service – launched We are a sustainability leader in our industry Up to 1 Absolute reduction since 2020 Member of Dow Jones Best-In-Class Europe Index FY 2024 Presentation
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|6 We strengthened our footprint in the US and expanded our customer offering into early-phase development Strategy execution highlights 2024 Siegfried Acceleration Hub Grafton El Masnou Barberà del Vallès St. Vulbas Evionnaz Zurich Zofingen Minden Hameln Hal Far Nantong Irvine Pennsville Grafton US Spain France Malta Switzerland Germany China Drug SubstancesDrug Products FY 2024 Presentation
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|7 Financial update FY 2024 Presentation
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|8 8 | Strong underlying business growth Headwinds more than off-set The y-o-y growth of net sales translates into 8-9% growth of underlying business, significantly above market 1 Underlying business excludes coronavirus vaccines, destocking and portfolio optimization Note: Shape and size of boxes do not reflect actual values; all growth rates mentioned are CER growth rates Comments In 2024, all top-line headwinds materialized as expected: – Vaccines business phased out – Most of destocking over, only c. CHF 5- 10m expected in H1 2025 – Portfolio optimization top-line effect completed, but effort continues – Currency headwind of 1.2% 3% growth y-o-y Vaccines Net sales FY 2024 Headwinds Underlying business Net sales FY 2023 Destocking Portfolio opt. Currency 8-9% growth of underlying business1 CHF 30m-40m CHF 20m-30m CHF 15m FY 2024 Presentation
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|9 Strong above-market growth of underlying business in both business lines FY 2024: Another year of growth Net sales split FY 2024 Net sales FY 2024 vs FY 2023 CHF million FY 2024 FY 2023 Change Drug Substances 891.9 860.0 +3.7% (+4.5% in LC) Drug Products 402.7 411.5 -2.1% (-0.1% in LC) Total 1 294.6 1 271.5 +1.8% (+3.0% in LC) – Net sales grew by 3.0% in local currencies (LC), FX headwind across all currencies – 47% of net sales in EUR, 13% in USD – Strong above-market growth of underlying business, in both Drug Substances as well as Drug Products 31.1% Drug Products 68.9% Drug Substances Note: Net sales split FY 2023: 32.4% Drug Products, 67.6% Drug Substances FY 2024 Presentation
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|10 From Swiss GAAP FER to Core results Reconciliation for FY 2024 Adjustments to Core EBITDA CHF 1.6m − Discount rate effect on foreign pension plan (CHF -1.4m) − Current net interest foreign pension plan (CHF 3.0m) 1.6 180 190 200 210 220 230 240 250 260 270 290 280 0 160 170 Core Net Profit Core EBITDA Adjustments to Core EBITDA EBITDA SWISS GAAP FER Depreciation CHFm Core EBIT Financial result / taxes 284.0 285.6 -84.7 200.9 -39.4 -2.6 Adjustment to Core Net Profit 158.9 Note: Each number is rounded individually − Current net interest foreign pension plan (CHF -3.0m) − Tax effect on Core EBITDA Adjustments (CHF 0.4m) Adjustments to Core net profit CHF 2.6m Core numbers / core adjustments FY 2024 Presentation
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|11 More than off-set phasing out of profitable vaccines business Profitability not only protected but increased Comments Note: Growth rates are calculated using the exact numbers 320.4 273.3 191.9 128.1 329.1 285.6 200.9 158.9 100 200 0 300 1,300 CHFm Net Sales Core Gross Profit Core EBITDA Core EBIT Core Net Profit 1,271.5 1,294.6 +1.8% +2.7% +4.5% +4.7% +24.0% 2023 2024 Margin in % 15.1 15.5 10.1 12.321.5 22.125.2 25.4 − Resilient, well diversified business portfolio: Profitability not only protected but enhanced − Keys to success − Operational excellence, including process excellence − Strict cost discipline − Active portfolio optimization FY 2024 Presentation
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|12 12 | CHF Resilience through diversification Diversification of our customer and revenue bases promotes stability and future growth Siegfried offers its breadth of products and services to a variety of customers in different development phases Customer diversification Product diversification Life-cycle diversification 1 Drug substances only Top customer (10-20%) Customer 2 (9%) Customer 3-10 (33%) Large pharma (41%) Small/mid pharma (59%) Top product (6%) Products 2-10 (27%) Exclusives (72%) Multi-client (28%) Pre-clinical/phase 1 (<1%) Phase 2, 3 (5-10%) Commercial (90-95%) CHF CHF CHF CHF 1 FY 2024 Presentation
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|13 Enhanced financial management contributes to bottom line FY 2024: Profitability further increased despite change in mix Note: Each number is rounded individually CHF million FY 2024 FY 2023 Net sales 1 294.6 1 271.5 Cost of goods sold -965.5 -951.1 Core gross profit 329.1 320.4 Marketing and sales costs -18.1 -19.4 Core research and development costs -41.1 -43.4 Core administration & general overhead costs -78.7 -70.7 Other operating income 9.7 5.0 Core EBIT 200.9 191.9 Core financial result (loss) -9.6 -11.9 Exchange rate differences (loss) 3.5 -12.8 Core profit before income taxes 194.8 167.2 Core income taxes -35.9 -39.1 Core net profit 158.9 128.1 Depreciation 84.7 81.4 Core EBITDA 285.6 273.3 Comments – Core gross profit further increased, despite change in mix – Core SG&A declined both in absolute and also relative terms, despite shift of c. CHF 4m from COGS to Core administration and general overhead costs – Enhanced financial management – Reduced exchange rate differences through introduction of advanced hedging programs – New transfer pricing regime FY 2024 Presentation
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|14 14 | Robust operating cash generation Off-set by one-time effect and phasing Proposals to the AGM on April 10, 2025 include an increase of 20 cents to CHF 3.80 per share in dividends and a 1:10 share split Note: Each number is rounded individually; Free cash flow is calculated as operating cash flow minus purchase of PPE and intangibles (net) CHF million FY 2024 FY 2023 Operating cash flow before changes in NWC 268.0 262.0 Change in NWC -99.2 -53.4 Operating cash flow 168.8 208.6 Purchase of PPE and intangibles (net) -180.8 -137.1 Acquisitions -10.1 -10.5 Other investing activities 0.6 0.7 Cash flow from investing activities -190.3 -146.9 Free cash flow -11.6 71.8 Cash flow from financing activities 3.0 -94.8 Net change in cash -18.5 -33.0 Comments – Significant progress made in net working capital management, with nearly CHF 60 million cash released from inventory positions – Positive effect was off-set by a one-time increase in paid income taxes (from prior years), and later revenue recognition – Capital expenditures in line with plan, at 14% of net sales – Net debt / Core EBITDA at 1.7 – Both hybrid convertible bonds converted at a total nominal value of CHF 80 million FY 2024 Presentation
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|15 Laser focus on M&A and margin expansion Capital allocation framework for long-term value creation EVOLVE+ − Economies of scale − Bringing assets on stream − Portfolio optimization − Operational excellence, including process excellence − M&A is always on − Adding – Scale – Abilities – Technology − Will continue to be very selective − Focus on immediate value creation, no marginal deals − Capital efficient alternative to organic deployment of capital Cash flow generative Profitable with expanding margins Investments in growth Strong top- line growth Value accretive M&A Expanding margins FY 2024 Presentation
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|16 Outlook FY 2024 Presentation
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|17 EVOLVE+ is geared towards capitalizing on positive long-term trends Siegfried is set to outpace market growth across key segments Increasing number of innovations from small and mid-size pharma Increasing complexity of new molecular entities Industry outlook estimates (CAGR 2024 – 2030) Small molecules 5–7% Oral solids 4–6% Injectables 7–9% Cell & gene therapy >25% Ophthalmic 5–7% Ongoing outsourcing trend in the pharma industry Increased cost awareness in the pharma industry Siegfried EVOLVE+ FY 2024 Presentation
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|18 Our strategy EVOLVE+ Paving the way for continued profitable growth Commercial Excellence Development Excellence Operational Excellence Enter and grow new areas Cell & gene therapy (CGT) DS antibodies Data analytics Grow existing core Aseptic liquid dosage forms Oral/inhalation solid dosage forms Grow the network in NA and Europe End-to-end offering of DS and DP Small molecules (DS and DP) Broaden our technological offering Advanced production technologies Bridging technologies Viral vectors Synthetic biology Aseptic technologies EVOLVE+ FY 2024 Presentation
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|19 Our strategy EVOLVE+ Paving the way for continued profitable growth Commercial Excellence Development Excellence Operational Excellence Enter and grow new areas Cell & gene therapy (CGT) DS antibodies Data analytics Grow existing core Aseptic liquid dosage forms Oral/inhalation solid dosage forms Grow the network in NA and Europe End-to-end offering of DS and DP Small molecules (DS and DP) Broaden our technological offering Advanced production technologies Bridging technologies Viral vectors Synthetic biology Aseptic technologies EVOLVE+ FY 2024 Presentation
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|20 Technology upgrades currently in execution as part of EVOLVE+ Broadening our technological offering Siegfried's diversified technology offering Spray drying Pre-filled syringes / cartridges Formulation development Analytical and process develop- ment Classical small molecule API Microni- zation Highly potent OSD Vials Classical OSD and inhalation Ophthalmic Hazardous chemistry Flow chemistry Biotrans- formation Key projects in execution Spray drying Capacity build up in Barberà del Vallès, ES − Available to customers in 2026 − First revenues in 2027 Pre-filled syringes / cartridges Additional manufacturing lines in Hameln, DE Line 1 − Available to customers in 2025 − First revenues in 2026 Line 2 − Available to customers in 2026 − First revenues in 2027 1 Active Pharmaceutical Ingredient, 2 Finished Dosage Forms Ophthalmic Expansion of manufacturing capacity in El Masnou, ES Available to customers in 2026 FDF2 (Drug Products) Bridging technologies API1 (Drug Substances) FY 2024 Presentation
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|21 Our strategy EVOLVE+ Paving the way for continued profitable growth Commercial Excellence Development Excellence Operational Excellence Enter and grow new areas Cell & gene therapy (CGT) DS antibodies Data analytics Grow existing core Aseptic liquid dosage forms Oral/inhalation solid dosage forms Grow the network in NA and Europe End-to-end offering of DS and DP Small molecules (DS and DP) Broaden our technological offering Advanced production technologies Bridging technologies Viral vectors Synthetic biology Aseptic technologies EVOLVE+ FY 2024 Presentation
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|22 Go-to-market strategy and NWC optimization is in full execution Commercial Excellence+ Go-to-market strategy implemented Project FALCON implemented Optimization of all NWC elements across our network to release cash flow > Substantial impact expected in 2025 Close to CHF 60 million cash released >10% inventory reduction in 2024 compared to 2023 Segmentation Focus on small/medium pharma in the US and Europe Prioritization Focus on 2000 potential targets Coverage Implemented targeted key account structure Target operating model Strengthened and adopted business development in US and Europe Needs Type Needs Type FY 2024 Presentation
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|23 Reducing the development phase is the key to extend exclusivity Development Excellence+ Commercial phaseDevelopment phase Loss of exclusivityLarge scale manufacturingPhase IIPre-clinical / Phase I Phase III Siegfried Development Excellence+ Complete offering for early-phase development Commercial manufacturing process in mind right from the start Increasing lab speed Phase IIIPhase IIPre-clinical / Phase I Large scale manufacturing Loss of exclusivity Market entry 2 – 4 years Commercial phase extended by FY 2024 Presentation
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|24 Example Malta: AI-enhanced Value Stream Mapping frees up space for further organic growth Operational Excellence+ Throughput time reduced from 2550 daysto Roll-out across the Siegfried network in progress Production Quality control PackagingAnalytics Lead time Production Quality control PackagingAnalytics FY 2024 Presentation
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|25 25 | Siegfried is set to outpace market growth across key segments Onwards and upwards, step-by-step and year after year Outlook 2025: Siegfried expects a sales growth of mid-single digit in local currencies and a core EBITDA margin above 22% Positive mid-term outlook confirmed – Continued profitable growth above market (excl. M&A) – Stepwise expanding profitability – Capital expenditures of low teens – Value accretive M&A FY 2024 Presentation
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|26 Q&A FY 2024 Presentation
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|27 Thank you for your attention April 10, 2025 AGM August 21, 2025 Half-Year Results FY 2024 Presentation
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Thank you for your attention
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|29 Further financial details for 2025 Appendix − From 2022 to 2024 the revenue split between H1 and H2 was on average 48%:52% − Effect expected to be significantly stronger in 2025 From today’s perspective between 0% and 0.5% headwind Below 20% Low teens % of net salesCapEx Effective tax rate Currency impact Net sales H1 vs H2 FY 2024 Presentation