1

Q2 2015 PRESENTATION23 JULY 2015

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HIGHLIGHTSTHOMAS ELDERED, CEO

HIGHLIGHTS Q2

• Another quarter with solid progress+42% Net Sales growth (+40% LC)+58% EBITDA growth

• EBITDA-margin firmly established at a new level: 18%

• Development&Technology gaining further momentum

• Sterile Liquids better than plan

• Solids and Other with improvement potential

• Continued strong operating cash flow

• Acquisitions contribute significantlyShort term integration activities completed

• Partnerships and strategic investments

• New SEK 1.5 Bn bank loan secured (July)

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FINANCIAL HIGHLIGHTS Q2 2015

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Sales SEK 868 m+42%

Acquisitions contributed SEK 277 m (+45%)

Organic growth 1% (fix FX & excl Thyrosafe)

EBITDA SEK 156 m +58%

Acquisitions contributed SEK 72 m (+72%)

EPS SEK 1.50+13%

-200,0

0,0

200,0

400,0

600,0

800,0

1000,0

Q2 2014 Q2 2015

D&T Acq

D&T

MS-SO Acq

MS-SO

MS-SL Acq

MS-SL

NET SALES PER STRATEGIC BUSINESS SEGMENT

5

MS-SL +59%

MS-SO +19%

D&T +90%

SEK 611m

SEK 868m

Sales 2014

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STRATEGIC INVESTMENTS DRIVING INCREASED IMPORTANCE OF MORE PROFITABLE SEGMENTS

Sales 2015

EBITDA 2014 EBITDA 2015

From Q2 2014

to Q2 2015

Sterile Liquids

Solids and Other

DevelopmentTechnology

Sterile Liquids

Solids and Other

DevelopmentTechnology

GROWTH INITIATIVES ON TRACK

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Growth in existing manufacturing footprint and capacity

High growth instrategic importantD&T

Portfolio outsourcing with asset acquisitions

Acquisition of CDMOs

Growth initiatives Track record 2015 H1

Strengthened sales organisation

2013-14 ~ 3% annual growth (constant FX)

+6 since 20072014: Corvette (IT)

Lusomedicament (PT)

Capacity expansion in manufacturing

Strong demand for freeze drying 100% utilization

Invest EUR 32m (decided 2013)

12% share of total sales 2014 originate from D&T projects.16% of Group sales Development of IP portfolio

+3 since 2007

2014: Pessac (FR)

Organic growth

Sequential growth in acquired businesses

168% increase vs. 2014(9% excl acquisitions)

23% of Group sales

Projects under review

OT Chemistry completed

Projects under review

Wasserburg expansion on track SEK 53 M in capex (139 since start)

TRANSFORMATIONAL ACQUISITIONS

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Corvette Group (IT)

265 HC

Steriles, inclfreeze

drying, API, IP

Financials2014 (PF)

Sales 554EBITDA 128

Lusomedicamenta (PT)

340 HC

Liquids, Opthalmics,

Effervescent products, IP

Financials 2014 (PF)

Sales 470EBITDA 120

Pessac (FR)

115 HC

Developmentservices, IP

OT Chemistry (SE)

35 HC

Integration of acquisitionscompleted in line with plan

Q2 2015Sales SEK 277mEBITDA SEK 72m

Sequential growthSales +2%EBITDA +16%

Discovery and

Developmentservices

Q4 2014 Q2 2015

ACQUISITION STRATEGY – CLEAR PRIORITIES

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MARKET

RELATIONSHIP

TECHNOLOGY

Pessac

MilanLisbon

TECHNOLOGY Freeze dried ampoules Injectable hormones Effervescent tablets Opthalmics Niche API’s Cytotoxics Pre-filled syringes

MARKET Europe North America India

RELATIONSHIP∼ 100 new customers

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FINANCIALSBJÖRN WESTBERG, CFO

(CURRENCY SEK MILLION)

0%5%

10%15%20%25%30%35%40%

MTRL EXT HC D&A OTH

2015

2014

P&L DEVELOPMENT

in relation to sales

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2015 2014Net Sales 868,5 610,9

EBITDA 155,9 98,917,9% 16,2%

D&A -57,9 -25,2

EBIT 98,0 73,7

Financial items -5,9 -0,9

Profit before tax 92,1 72,8

Tax -23,4 -24,7

Net profit 68,7 48,1

Q2 H1

42% SALES GROWTH IN Q2

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-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215

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MANUFACTURING SERVICES – STERILE LIQUIDS

Sales Q2

2014 162Aquisitions +80FX effect +5Others +112015 258

EBITDA Q22014 38Acquisitions +18FX effect +1Others +62015 63

Sales increased by 59 % in Q2 vs LY+ Acquisitions generated 50%

EBITDA increased by 66% in Q2+ Acquisitions generated 48%+ Product and service mix

Sales H1

2014 325Aquisitions +157FX effect +14Others -42015 492

EBITDA H12014 74Acquisitions +37FX effect +4Others +142015 129

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MANUFACTURING SERVICES – SOLIDS AND OTHERS

Sales Q22014 391Acquisitions +101FX effect +8Distribution services -4Others -292015 467

Sales increased by 19% in Q2 vs LY+ Acquisitions added 26%- Discontinued distribution services- Competition in France of a large customer product- Less manufacturing of the large tender product (Thyrosafe)

EBITDA decreased by 9% in Q2 vs LY+ Acquisitions added 47% (24% EBITDA margin)- Reduced sales including Product mix effect

EBITDA Q2

2014 54Acquisitions +25One-off internal services -11Others -192015 49

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Sales H12014 773Aquisitions +173FX effect +18Distribution services -9Others -262015 929

EBITDA H12014 118Acquisitions +31Inventory effect Q1 2014 -12One-off internal services 2014 -22Others -372015 78

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DEVELOPMENT & TECHNOLOGYSales increased by 90% in Q2 vs LY+ Acquisitions added 115%- Reduced sales of tender product (Thyrosafe)+ Increased sales of other products

EBITDA increased by 127% in Q2 vs LY+ Acquisitions added 109%+ Positive product mix

Sales Q22014 99Acquisitions +114FX effect +1Tender product -39Others + 142015 189

EBITDA Q2

2014 26Acquisitions +28Others +52015 59

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Sales H12014 152Aquisitions +242FX effect +2Tender product -9Others +222015 409

EBITDA H1

2014 45Acquisitions +65Others +182015 128

0

200

400

600

800

1000

2014 Thyrosafe FX impact Organic growth

Acquisitions 2015

42% INCREASE IN NET SALES

16

-6% 2%

45%

21%

1/

1/ Currency translation effect

578

868

1%611

0

50

100

150

200

2014 "Old" business Acquisitions 2015

55% INCREASE IN EBITDA

17

-15%

72%

99

156

2015 PERFORMANCE

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1/ (Inventory+AR+Prepaid expenses and accrued Income-AP-Accrued expenses and prepaid income)/(12M Net sales)

KPIs 2015-H1 2014 -H1 2014 -FY

EBITDA margin (%) 17,9 16,9 15,5

Earnings per share (SEK) 4,22 3,34

Return on equity (%) 11,4 12,6 11,4

ROOC (%) 13,0 20,8 12,4

Equity to assets (%) 49,7 62,1 39,4

Net working capital to Sales (%) 1/ 23,2 21,7 27,3

Net debt (SEKm) 1 001 -405 1 164

Net debt to Equity 0,4 -0,3 0,5

Net debt to EBITDA 2,0 1,2 2,9

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CONCLUDING REMARKSTHOMAS ELDERED, CEO

A LEADING EUROPEAN CDMO

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ItalyLAINATE (Milan)● Freeze dried sterile beta lactam

antibiotics

MASATE (Milan)● Freeze dried products● Liquid fills

PADERNO DUGNANO (Milan)● API development

● Finished dose form development and manufacturing

Portugal

QUELUZ (Lisbon)● Solids● Liquids● Semi-solids

ODIVELAS (Lisbon)● Solids● Liquids● Semi-solids● Steriles

SwedenJORDBRO, HQ

HÖGANÄS● Solids (granulates

& powders)

KARLSKOGA● Semi-solids

SOLNA● Development

Services

STOCKHOLM● Solids

STRÄNGNÄS● Beta-lactams

(solid forms and dry syrups)

UPPSALA● Discovery and

development services

UKASHTON● Solids● Semi-solids● Inhalors

GermanyWASSERBURG● Freeze dried products● Steriles

FranceFONTAINE● Solids

MONTS● Steriles

PESSAC● Development

Services

Spain

PARETS● Solids● Semi-solids● Liquids

ON A MISSION TO BECOME A WORLD LEADING CDMO

• Presence in all major European markets

• Global supply

• Broad technology base

• High quality, high performance manufacturing facilities

• Access to competitive drug delivery technologies

• Technology and product development partnerships or joint projects

• Strong IP backed business

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CONCLUDING REMARKS Q2

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• Delivering on our strategy

• Overall performance well in line with plan

• Improvement opportunity in Solids and Other

• Benefitting from recent acquisitions

• Gearing up for further acquisitions and

geographic expansion

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Q&A

CONTACT INFORMATION

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Thomas Eldered

CEO & Managing Director

08-602 52 10

Björn Westberg

CFO & EVP Finance, Control & Investor Relations

08-602 46 20, ir@recipharm.com