Slides
Page 1
Better health . Within reach . Every day . e Sh Bela Flor 0370 FA6-3 Hikma Pharmaceuticals PLC 2026 Interim Results hikma hikma .
Page 2
2 Disclaimer Save to the extent required by law, neither Hikma Pharmaceuticals PLC nor any of its affiliates(Hikma), nor any other party, is under any duty to update or inform you of any changes to such information. In particular, it should be noted that the financial information relating to Hikmacontained in this document may not have been audited and in some cases is based on management information and estimates. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of Hikma or its directors, officers or employees, advisors or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted for any such information or opinions or any use which may be made of them. Certain statements in this presentation, are forward-looking statements, including under the US federal securities laws, including the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Any forward-looking statements made by or on behalf of Hikma speak only as of the date they are made and are based upon the knowledge and information available to thedirectors on the date of this presentation. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Hikma does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak as only of the date of this presentation. By participating in, listening to or accessing this document or by accepting any copy of this document, you agree to be bound by the foregoing limitations. All names, logos, and trademarks are properties of their respective owners and are used for identification purposes only.
Page 3
Introduction Said Darwazah Chief Executive Officer
Page 4
4 H1 in line with expectations, with disciplined execution and reinvestment driving long term growth 1 Delivering a solid financial performance Revenue up 4% to $1.7 billion; core operating profit up 9% to $405 million 2 Increasing investment to support growth 18% increase in Group R&D and 10% increase in Injectables commercial investment to support future growth 3 Broadening and enhancing pipeline and portfolio Strong cadence of launches and ongoing focus on strategic partnerships 4 Optimising the business and increasing agility Improving plant efficiency while strengthening supply chain resilience, customer service and team collaboration 5 Full-year outlook reiterated Group revenue H2 weighted and profit broadly even: Injectables H2-weighted, Branded H1-weighted, Hikma Rx broadly even
Page 5
5 Core1 revenue $1,728m $405m Core operating profit $463m Core EBITDA2 Core basic earnings per share 128¢ Operating cash flow $214m Group financial highlights – H1 2026 1. Core results are presented to show the underlying performance of the Group, excluding exceptional items and other adjustments set out in Note 5 of the Group consolidated financial statements. 2. Core EBITDA is core operating profit before depreciation and software amortisation.
Page 6
Turning strategy into action Actions taken across the Group will support long-term growth Driving commercial momentum ▪ Robust demand across our global portfolio ▪ 43 product launches across all three businesses in H1 ▪ 10 new strategic partnerships signed in MENA; partnership for gEllipta announced Investing for growth ▪ Increased R&D investment: 18% YoY growth in spend, representing 5% of Group revenue ▪ Higher sales & marketing investment to maximise product impact: +10% spend in Injectables sales & marketing ▪ Accelerating investment in equipment, people & systems Optimising the business ▪ Expanding capacity & enhancing capabilities: Bedford on track, Columbus CMO ▪ Removing value-chain bottlenecks: reducing backorders, improving service levels & inventory management ▪ Sharpening value chain efficiency: focus on supply chain optimisation Delivering results ▪ Growth in line with our expectations ▪ Healthy profitability maintained ▪ On track to deliver FY26 Group guidance 6
Page 7
Financial performance Areb Kurdi Acting Chief Financial Officer
Page 8
8 Solid financial performance with continued investment in growth Group core results H1 2026 $m H1 2025 $m Change % Constant currency % Core revenue 1,728 1,657 4% 4% Cost of sales (954) (933) 2% 2% Gross profit 774 724 7% 7% Gross margin 44.8% 43.7% +110bps Total operating expenses (396) (351) 13% 1% Core operating profit 405 373 9% 8% Core operating margin 23.4% 22.5% +90bps Net finance expense (49) (36) 36% Effective tax rate 21.6% 19.5% Core profit for the period 277 270 3% 3% Core basic EPS (¢) 128¢ 122¢ 5% 5% Core EBITDA 463 429 8% 7% P&L highlights ▪ Revenue growth driven by strong Branded performance and continued momentum across Europe, Canada and MENA ▪ Gross margin expansion driven by favourable business mix and operational execution across the portfolio ▪ Operating profit growth delivered despite increased investment in R&D and commercial capabilities and manufacturing capacity ▪ Increased net finance expense reflects increased debt levels and refinancing activity during the period ▪ EPS growth supported by profit growth and share repurchases, partially offset by higher financing and tax expense
Page 9
133 163 437 502 H1 2025 H1 2026 9 Three high-quality businesses Branded H1 highlights: +15% (+14% cc) +23% +20% cc ▪ Revenue growth driven by strong demand across the chronic portfolio and growth across most markets ▪ Core gross margin benefitting from ongoing focus on high value chronic and specialty medications, driving an improving product mix ▪ Strong core operating profit growth of +23%, with core operating margin up 2.1pp to 32.5%, reflecting strong gross profit flow-through and a lower increase in sales & marketing spend, with certain marketing activities shifted into H2 ▪ Regional conflict impact absorbed – primarily related to shipping, insurance and fuel ▪ FY26: Revenue now expected to grow at the top end of 6% to 8% guidance range; core operating margin expected to be around 25% 30.4% 32.5% Core Op Profit Core Revenue Core operating margin ($ million)
Page 10
92 107 523 520 H1 2025 H1 2026 Three high-quality businesses Hikma Rx (1)% +16% ▪ Revenue broadly flat due to modest price erosion across the portfolio offset by recent launches and good performance from several in-line products ▪ Core gross margin up 3.6pp to 37.1%, reflecting improving mix, with a higher contribution from higher- margin CMO and a good performance from sodium oxybate ▪ Core operating profit up 16%, with core operating margin up 3.0pp to 20.6%; growth reflects the higher gross profit and a reduction in specialty-related sales & marketing expense, which more than offset increased R&D investment ▪ FY26: revenue expected to be broadly flat; core operating margin to be close to 20% H1 highlights: Core Op Profit Core Revenue ($ million) 17.6% 20.6%Core operating margin 10
Page 11
11 Three high-quality businesses Injectables 205 189 683 685 H1 2025 H1 2026 +0% (8)% ▪ Revenue broadly flat ▪ Steady US base business offset slightly lower specialty revenue during transition from Vanco Ready® to Tyzavan® ▪ Good growth in Europe & ROW, with strong performance in Germany, Italy and Canada ▪ Strong MENA performance, benefitting from strong demand for base portfolio and biosimilars, partially offset by supply disruptions experienced by an in- licensed partner ▪ Core gross margin primarily reflects supply disruptions experienced by an in-licensing partner in MENA ▪ Increased investment across the business into sales and marketing and R&D, both of which grew double digits in H1; trend will continue into H2 ▪ FY26: revenue expected to grow in the low single digits; core operating margin to be in the range of 27% to 28% H1 highlights: Core Op Profit Core Revenue ($ million) 30.0% 27.6%Core operating margin
Page 12
12 1,013 976 1,118 1,387 1,694 1,283 1,191 1,306 1,604 1,957 1.5x 1.2x 1.4x 1.6x 1.9x 2022 2023 2024 2025 1H26 Net debt Total debt Net debt/core EBITDA June 2025 June 2026 Operating cash flow 161 214 Operating cash flow/revenue 10% 12% Debt and leverage ($ million) Operating cash flow Capital expenditure ($ million) 5% 6% 5% 5%2 5%2 0% 5% 10% 15% 20% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2022 2023 2024 2025 1H26 US MENA Europe Capex/revenue (%) 138 169 165 1971 1221 1. The $122 million includes $ 39 million related to a contract manufacturing project in our Hikma Rx business which is being reimbursed by our partner. In full year 2025, the $197 million included $22 million related to this contract manufacturing project. The assets will remain on Hikma’s balance sheet. 2. Capex/revenue excludes the portion of spend reimbursed by our partner. Cash flow, capex, and balance sheet Strong cash flow, robust balance sheet and continued capex
Page 13
Reinvesting for organic growth ▪ 2026 capex of $190m–$210m (H1 26: $122m; FY25: $197m)1 ▪ Manufacturing capacity build-out; Bedford online in 2028 ▪ Investments across North America, MENA and Europe Prioritising R&D, M&A and partnerships ▪ R&D rising toward 5%–6% of revenue (2025: 4.5%; H1 2026: 5.0%) ▪ Selective bolt-on M&A ▪ Licensing & partnerships: 10 partnerships agreed in MENA, partnership for gEllipta announced Growing the dividend progressively ▪ 1H26 dividend of 38 cents per share, up 6% vs 1H25 ▪ Progressive dividend policy ▪ Target payout ratio 30%-40% of core EPS Returning surplus cash through buybacks ▪ $250 million share buyback progressing well with $227 million worth of shares purchased as at 5 August 2026 ▪ Sized to preserve capacity for investment Underpinned by a strong, investment-grade balance sheet BBB / BBB S&P / Fitch — stable 1.9x Net debt / core EBITDA 16.0% Return on invested capital in FY25 13 Capital allocation Strong cash generation funds disciplined investment and shareholder returns 1. Before additional capex from CMO partner in the US, as set out on slide 12.
Page 14
Business review Said Darwazah Chief Executive Officer
Page 15
Strengthening R&D & manufacturing capabilities Expanding manufacturing network through KSA Oncology, Tunisia general formulation and regional capacity investments Delivered strong R&D productivity with 20 submissions, 17 approvals and 16 launches, of which 14 were first generic or first to market Defend leadership in region & strategic therapy areas Maintained #1 pharmaceutical position in MENA1 with leadership in key strategic therapy areas Continued to build on market leadership in immunology and gastro-intestinal 15 Executing our strategy, building momentum Branded Branded strategic priorities H1 2026 progress Grow positions in key lifestyle diseases Acceleration of chronic health portfolio which represents close to 70% of total Branded revenue in H1 2026 Key therapeutic areas such as diabetes are driving growth, e.g. success in dapagliflozin across markets Building new growth platforms Successfully launched Finjuve® (finasteride spray), creating a new Dermatology platform across MENA Building out other therapeutic areas including multiple sclerosis (e.g. cladribine) and rheumatology (e.g. tofacitinib) #1 1. Hikma Pharmaceuticals Internal analysis based on IQVIA Monthly MIDAS M03 2026 data (MAT Mar. 2026, Rolling 12 Months) for Algeria, Egypt, Jordan, Kuwait, Lebanon, Morocco, Saudi Arabia, Tunisia and UAE, reflecting estimates of real-world activity. © IQVIA. All rights reserved.
Page 16
Maintain good service levels and operational reliability ▪ Continuous supply reliability – focus on appropriate levels of safety stock and customer services levels as a key business priority Scale CMO to c20% of Hikma Rx revenue by 2030 Growing CMO volumes and building a pipeline of new opportunities; sourcing and progressing on good margin contract manufacturing opportunities 16 Executing our strategy, building momentum Hikma Rx Hikma Rx strategic priorities H1 2026 progress Protect and optimise base portfolio Defended leading inhalation / nasal positions – sustained share in Fluticasone (Rx and OTC) and Albuterol against new and expected entrants Sodium Oxybate - managing generic competition with proactive measures delaying erosion; navigating new ANDA entrants while defending share Develop differentiated respiratory & 505(b)(2) pipeline Increased R&D investment and pipeline progress – double-digit increase in R&D investment; entered into generic Ellipta® device partnership; progressing on our epinephrine nasal spray
Page 17
Capacity expansion Bedford facility on track for 2028 commercial production; expands US capacity and capabilities Driving meaningful improvements in production efficiency and output, particularly in our Cherry Hill and Portugal sites Building a stronger commercial platform Investing behind specialty launches – 10% increase in Injectables sales and marketing spend, including added field resource and enhanced sales-force training and marketing materials to support specialty launches 17 Executing our strategy, building momentum Injectables Injectables strategic priorities H1 2026 progress Developing a specialty product portfolio Tyzavan® commercialisation – educating and supporting conversion of new and existing customers; ~80% of Vanco Ready® customers fully or partially transitioned R&D investment increased double digit YoY, leveraging our facility in Zagreb to focus on ready to use opportunities and complex areas such as long-acting injectables Geographic diversification Extending growth across established and new European markets – strong growth in own products in Europe & ROW led by Germany, Italy and Canada Solid MENA growth – good performance from in market and recently launched products more than offset a one-off supplier issue
Page 18
Building an industry leading R&D organisation by strengthening capabilities and accelerating execution Our four strategic pillars to drive growth Leverage unique manufacturing capabilities to unlock technically challenging products, accelerating development and improving scalability Maintain an optimal mix of simple and complex formulations to ensure steady revenue while driving long- term value and margin expansion Invest in differentiated dosage forms, including RTU, respiratory and nasal, that address unmet needs and support sustainable competitive advantage. Build and strengthen in-house capabilities. Shorten development timelines and improve first-cycle approval rates to enhance speed-to-market, capital efficiency, and return on R&D investment. Manufacturing-driven differentiation Portfolio balance and value creation Targeted investment in complex and differentiated platforms Accelerated development and regulatory execution 21 3 4 18
Page 19
A strong pipeline across our three businesses Development phase Launch timing profile Strategic focus areas to drive long-term growth products in our pipeline>330 Late-phase assets complemented by new project starts to continually replenish pipeline Mix of near-term and long-term opportunities to support sustained growth • Ready-to-use formulations: global growth platform • Inhalation products: US and EU focused • Nasal products: scalable global opportunity • Oral solids: ability to leverage internal capability to develop all oral solid formulations • Complex API: building on internal and external expertise in peptides and oligonucleotides • Drug device combinations: across all businesses • Pipeline growth: > 30 new products were added to the pipeline in 1H 2026 Current market size1 >$100 billion 19 32% 16% 32% FiledDevelopment Approved/Tentatively Approved 72% 28% Long Term (>2030) Near Term (<2030) 1. Company analysis of addressable market size based on IQVIA 2025 sales for the US and EU, Evaluate Pharma and IPD, inclusive of the marketed branded product.
Page 20
2026 Full year guidance reiterated 20 Injectables Branded Hikma Rx ●Revenue growth: low single digits ●Core operating margin: 27% to 28% ●Revenue growth: 6% to 8% in constant and reported ●Core operating margin: around 25% ●Revenue: broadly flat ●Core operating margin: close to 20% Net finance expense Capital expenditure Tax $99 million to $103 million $190 million to $210 million1 Core effective tax rate: c.23% Revenue growth: Group Core operating profit: 2% to 4% $720 million to $770 million Corporate unallocated expenses: around $105 million ‘Others’ business: break even 1. Before additional capex from CMO partner in the US.
Page 22
Appendix
Page 23
Segment (Region) Submitted Approved Launched Injectables (Global) 25 22 22 MENA 18 10 8 US 4 3 5 Europe & ROW 3 9 9 Branded (MENA) 20 17 16 Rx (Global) 3 1 5 Total 48 40 43 H1 2026 pipeline performance Strong progress with pipeline execution, healthy pipeline for H2 and beyond 23