Fagron

Berenberg Discovery Conference US

New York, 26 October 2017

Constantijn van Rietschoten

Chief Communications Officer

Fagron at a glance

FArmaceutische GRONdstoffen was founded in

Rotterdam in 1990

2016 H1 2017

Turnover € 421.8m € 221.7m

REBITDA € 90.6m € 48.1m

Active in 34 countries on 5 continents

1,924 FTE, incl. >200 pharmacists

Leading pharmaceutical compounding company,

bringing personalized pharmaceutical care to

hospitals, pharmacies, clinics and patients

Listed on Euronext Brussels and Amsterdam

since 5 October 2007

Fagron global presence

FCS Essentials & Brands Office or repacking only facility Combination FCS / Essentials & Brands

Strategy

Pharmaceutical raw materials,

excipients, and equipment &

supplies used in compounding

Personalized ready-to-use

medication that is prepared in

compounding facilities

Innovative products and

concepts for specific segments

of the healthcare market

Our business - segments

Fagron

Essentials BrandsCompounding Services

4

FCS facility in Wichita (US)Operational since March 2017

5

State-of-the-art FDA 503B outsourcing facility supplying medication to hospitals and ASCs

12,000 sf of clean rooms, 11 isolated clean rooms, automated filling equipment, chemistry and

microbiological testing laboratory and the ability to produce high and medium risk medication

Facility will play a role in the ongoing process of hospitals outsourcing their sterile compounding

due to increased efficiency, higher quality and less waste

FCS facility in Hoogeveen (NL)Operational since July 2017

6

Specializes in the production of prefilled glass syringes with a long shelf life for the hospital

market

Syringes have unique features incl. colour coding, Tall Man lettering and 2D coding for

dispensing registration

Facility contributes to optimal medication safety

Fagron Brands

7

Innovative concepts, delivery vehicles and

formulations for pharmaceutical

compounding

Developed by Fagron, in close collaboration

with prescribers, pharmacists and

universities

Brands are produced in GMP compliant

facilities to ensure the highest quality

Increasing interest for Fagron Brands by

pharmaceutical industry

Fagron Essentials

8

2,500 pharmaceutical raw materials, such as

amino acids, antibiotics, corticosteroids,

hormones, opiates, vitamins, alcohol and

excipients

Fagron has sourcing and audit offices in

Minneapolis, Rotterdam, São Paulo and

Shanghai

All raw materials must pass an acceptance and

quality check according to the most recent

pharmacopeia

Repacking in GMP-compliant clean rooms and

distribution of pharmaceutical raw materials,

supplies and equipment for compounding

Global reach helps to efficiently audit, qualify

and source raw materials. This results in full

traceability and a high quality standard

Repacking of raw materials in a clean room of Fagron Europe

Our business - geographical

Europe North AmericaSouth America

57% of sales 18% of sales25% of sales

Essentials

FCS - sterile

FCS - non-sterile

Brands

Essentials

FCS - sterile

FCS - non-sterile

Brands

Essentials

FCS - non-sterile (FACO)

Brands

Fagron

9

Results H1 2017

LETS GEL KIT is a topical anaesthesia convenience pack used for the prevention of pain when suturing.

The kit includes SuturaGel, pre-weighed active ingredients and topical syringes.

Headlines H1 2017

TURNOVER GROWTH

5.5%

€ 221.7morganic: 6.0%

REBITDA GROWTH

5.6%

€ 48.1m21.7% of turnover

EBIT GROWTH

13.5%

€ 38.4m17.3% of turnover

NET PROFIT GROWTH

27.0%

€ 21.1m

NET DEBT/

REBITDA RATIO

2.66

STRONG OPERATIONAL

CASH FLOW

€ 49.5m

Consolidated turnover

12

(x € 1,000) H1 2017 H1 2016 Total growth Total growth

CER

Organic

growth

Organic

growth CER

Fagron 218,265 205,678 +6.1% +1.3% +6.6% +1.8%

HL Technology 3,461 4,559 -24.1% -25.4% -24.1% -25.4%

Total 221,725 210,237 +5.5% +0.7% +6.0% +1.2%

CER = constant exchange rates

Positive turnover developments in core activities in Europe, North America and

South America

Turnover developmentExcluding HL Technology (in € 1,000)

13

205.678

218.265

3.050 600

9.860

-924

Turnover H1 2016 Europe* South America North America Currency effect Turnover H1 2017

* The Europe segment consists of the operations of Fagron in Europe, South Africa and Australia. The increase for Europe includes the negative effect of € 1m due to the sale of a small

compounding facility in Marseille (France) in 2016.

Fagron Europe

14

(x € 1,000) H1 2017 H1 2016 Change

Turnover 128,886 125,346 +2.8%

REBITDA 32,724 30,920 +5.8%

REBITDA margin 25.4% 24.7%

Organic turnover growth of 3.7% (+3.3% CER)

REBITDA increases 5.8%; margin increases 70bps to 25.4%

Opening of sterile facility in the Netherlands, specializing in prefilled glass syringes

Sale of a compounding facility in France with limited profitability/growth potential

Acquisition of Kemig, a leading supplier of raw materials in Croatia and Bosnia and

Herzegovina

Fagron South America

15

(x € 1,000) H1 2017 H1 2016 Change

Turnover 49,498 42,234 +17.2%

REBITDA 10,054 8,741 +15.0%

REBITDA margin 20.3% 20.7%

Organic turnover growth of 17.2% (-2.2% CER)

REBITDA increases 15.0%; margin decreases 40bps to 20.3%

Significant volume growth in H1 2017, but

• Majority of Fagron Brazil’s purchases are in US dollars

• Lower purchase prices, due to substantial strengthening of BRL/USD, fully

passed on to customers

• Decrease of prices in BRL had a negative impact on turnover growth at CER

Fagron North America

16

(x € 1,000) H1 2017 H1 2016 Change

Turnover 39,880 38,098 +4.7%

REBITDA 5,452 5,045 +8.1%

REBITDA margin 13.7% 13.2%

Turnover growth of 4.7% (+1.6% CER)

REBITDA increases 8.1%; margin increases 50bps to 13.7%

Sterile activities

• Turnover growth of 22.7% (+19.1% CER)

• Wichita facility obtained 46 licenses and is performing in line with expectations

Raw materials and compounding concepts activities

• Turnover decline of 26.7% (-28.8% CER)

• Second consecutive quarter of improvement

• Introduction of new innovations like Lets Gel Kit®

Financial review H1 2017

Pigmerise® MD is a medical devise class 1 indicated as coadjuvant of the skin dyschromia treatment, especially in cases such as

hyperpigmentation caused by vitiligo.

Financial review

Turnover

(in € million)

221.7

+5.5%

Gross margin

(in € million)

138.6

+3.8%

Operating costs

(in € million)

-90.5

+2.9%

Turnover increase of 5.5% or 0.7% at CER

Organic increase of 6.0% or 1.2% at CER

Gross margin as percentage of turnover decreases by 100bps to

62.5% compared to H1 2016

Gross margin increases 30bps compared to H2 2016

Operating costs as percentage of turnover decrease by 100bps to

40.8% compared to H1 2016

Operating costs decrease by 20bps compared to H2 2016

18

Financial review

REBITDA*

(in € million)

48.1

+5.6%

Non-recurring

(in € million)

-0.9

-44.6%

EBITDA

(in € million)

47.2

+7.5%

REBITDA increases 5.6% to € 48.1m or 21.7% of turnover

REBITDA growth driven by core activities in Europe, North and

South America

Non-recurring result decreases by 44.6% compared to -€

1.7m in H1 2016

EBITDA increases 7.5% to € 47.2m or 21.3% of turnover

* REBITDA is EBITDA before non-recurring result.19

Financial review

DA

(in € million)

-8.7

-12.8%

EBIT

(in € million)

38.4

+13.5%

Fin. result*

(in € million)

-13.3

-13.9%

D&A decreases 12.8% to € 8.7m

The decline was mainly due to the accelerated depreciation of

assets in 2016 (in US and Switzerland)

EBIT increases 13.5% to € 38.4m

EBIT as percentage of turnover increases 120bps to 17.3%

Financial result amounts to -€ 13.3m, a decrease of 13.9%

Financial costs decrease € 7.6m due to lower interest expenses

and non-recurring costs related to refinancing

Financial income decreases by € 9.2m. The decrease was due to

the non-recurring recognition of an income item in H1 2016 as a

result of the received waivers* Financial result excl. revaluation financial derivatives.20

Financial review

Taxes

(in € million)

-4.8

-30.5%

Net profit

(in € million)

21.1

+27.0%

Effective tax rate is 18.6% (29.4% in 1H 2016)

Net profit increases 27.0% to € 21.1m

Net profit per share decreases 34.1% to € 0.29

21

Consolidated – Net financial debt

22

285.408

245.168

3.511 49.50112.669 103

31 December 2016 Net interest paid Investment activities Exchange ratedifferences

Operating cash fllow 30 June 2017

Net debt decreases € 40.2m to € 245.2m

Net debt/REBITDA-ratio of 2.66, significantly below

the level of 3.25 as agreed in the RCF and Note

Purchase agreement

Summary H1 2017

Solid results with positive turnover

developments in core activities

Operating costs well under control

Profitability increasing faster than

turnover

Financial position significantly

strengthened

Portfolio:

• Facility in Wichita licensed in 46 states

• Opening of a sterile facility in NL

• Acquisition of Kemig (Croatia)

• Sale of non-sterile facility in France

23

FagronLab® LF-800UV - Laminar flow cabinet, designed for

compounding pharmacies.

Results Q3 2017

24

Headlines Q3 2017

25

Financial highlights

• Turnover increases to € 103.6 million

• Organic turnover growth at CER of 2.4%

• Organic growth in all key regions

Strategic highlights

• Acquisition of Croatian Kemig in August

• Acquisition of Brazilian All Chemistry in

October

Turnover development in Q3 2017Excluding HL Technology (in € 1,000)

26

101,862 101,783468859

767

1,071

9992,245

Turnover Q32016

Europe South America North America Currency effect Disposals(Europe)

Acquisitions(Europe)

Turnover Q32017

Fagron Europe1

27

Organic turnover growth 1.2% (+0.8% at CER)

Growth curbed by backlog at external laboratories resulting in limited product

availability and delivery delays

Acquisition of Kemig, a leading supplier of raw materials in Croatia and Bosnia and

Herzegovina

(x € million) Q3 2017 Q3 2016 Total growthTotal growth

CEROrg. growth

Org. growth

CER

Turnover 57.5 58.0 -0.8% -1.2% +1.2% +0.8%

1 The segment Europe comprises the Fagron activities in Europe, South Africa and Australia.

Fagron South America

28

Organic turnover growth 2.7% (+3.4% at CER)

Significant volume growth in Q3 2017

• Majority of raw material purchases are in US dollar

• Lower purchase prices, due to strengthening of BRL/USD, fully passed on to

customers

• Decrease of prices in BRL had a negative impact on turnover growth at CER

Acquisition of All Chemistry, well-known and respected supplier of pharmaceutical

raw materials to compounding pharmacies in Brazil

(x € million) Q3 2017 Q3 2016 Total growthTotal growth

CEROrg. growth

Org. growth

CER

Turnover 25.8 25.1 +2.7% +3.4% +2.7% +3.4%

Fagron North America

29

Organic turnover decline of 1.4% (+4.1% at CER)

Double-digit growth in sterile activities

Sale of raw materials and compounding concepts stabilise, but decrease compared

to Q3 2016

(x € million) Q3 2017 Q3 2016 Total growthTotal growth

CEROrg. growth

Org. growth

CER

Turnover 18.5 18.8 -1.4% +4.1% -1.4% +4.1%

Summary Q3 2017

Solid performance, driven by

organic growth in all key regions

Backlog at external laboratories in

Europe will largely be solved in Q1

2018

Buy and build strategy continued

and emphasized

Going forward positive about

growth opportunities in various

markets Fagron is active in

30FagronLab® - capsule filling machine

Q&A

What is compounding?

Patient

Personalized

medication

Produced in pharmacies or by GMP outsourcing facilities based on

scientific pharmaceutical knowledge

The designing, developing, producing

and marketing of personalized

pharmaceutical products Alternative dosage

forms

Alternative dosage

strengths

Combination

therapy

32

Benefits of compounding

Patient

Less side effects

More individualized approach

Customized medication

Enhance patient compliance

Drug shortages

Discontinued drugs

High-quality and cost effective alternative

New and unavailable therapeutic needs

Full pharmaceutical service

33

Disclaimer

Important information about forward-looking statements

Certain statements in this presentation may be considered “forward-looking”. Such

forward-looking statements are based on current expectations, and, accordingly, entail

and are influenced by various risks and uncertainties. The Company therefore cannot

provide any assurance that such forward-looking statements will materialize and does

not assume an obligation to update or revise any forward-looking statement, whether as

a result of new information, future events or any other reason.

34