Weifa Norway s leading fully integrated pharmaceutical company. 2 September 2014

Transcription

1 Weifa Norway s leading fully integrated pharmaceutical company 2 September

2 Disclaimer This presentation (the Presentation ) has been produced and delivered by Weifa ASA (the Company ) and its contents is the sole responsibility of the Company. By attending this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly the Company does not accept any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Compan and/or the industry in which it operates. Forwardlooking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary undertakings or any such person s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION. By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction. 2

3 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 3

4 Company transaction history Nov 2013 Jul 2014 Aug 2014 Acquisitions: Nov 2013 Jun 2014 Apr 2014 Aug 2014 Listed on Oslo Stock Exchange ASA ASA Spin-off: Listed on Oslo Stock Exchange Aqualis Offshore Holding ASA ASA 4

5 This is Weifa Weifa is well positioned in the Norwegian consumer health market with strong key brands like Paracet, Ibux and Paralgin forte In addition, Weifa has high-end API production of metformin and opioids Weifa has a head office in Oslo and two production plants in Kragerø and currently employs 175 highly qualified people Consumer Health Metformin B2B Opioids B2B Production and marketing OTC medicines and nutraceuticals Pain, cough & cold, wound & sports and nutra categories Active ingredient in diabetes treatment US FDA approved production plant Active ingredients and finished products in strong pain relief 5

6 Weifa key financials Total revenue EBITDA and EBITDA margin NOK million NOK million % 13 % 13 % 13 % 15 % 16 % 18 % H H 2014 Stable and strong revenue growth over several decades Annual growth (CAGR) between 1996 and 2013 of 6.0%, Consumer Health has been the foundation of the business Average annual growth of 5.3% the last decade The metformin business started in 2003 Strong growth and higher prices over the last years The opioids business has had a healthy growth over the last decade Higher EBITDA growth than revenue growth Most of the growth has come over the last years with strong focus on cash flow and restructuring EBITDA were affected negatively from losses in the metformin business 6

7 Key investment considerations Strong market position with established brands Solid footprint in Norway with potential for expansion Strong brands in Consumer Health with good cash flow Large growth potential in API segments Metformin market potential for significant growth Solid position in highly regulated opioids market Experienced team Proven track record of industrial growth and increased earnings International pharmaceutical industry competence Good earnings and cash flow potential High EBITDA growth the last two decades (CAGR: 7.2% p.a.) Dividend paid last five years of NOK 250 million Significant company value growth 7

8 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 8

9 Consumer Health overview Business overview Strategically positioned in the Norwegian consumer health market Present in both the pharmacy and mass market channels Focus on four main OTC categories: Strategic intent Revenue growth from existing portfolio and line extension Growth in new markets from unique existing and new products Growth from licensing, partnering and distributor agreements #1 player #1, 2 and 3 in certain segments # 1 and 2 positions in niche segments # 1 position in disinfections Pain Cough & Cold Nutra & oral health Wound & sport Historic track record of Rx-to-OTC switches Recent product launches; Bronkyl, Parecetduo and Dexyl 9

10 The number one OTC company in Norway Top 10 OTC companies (2013) Pharmacy sales only TOP 10 OTC drugs (2012) Rank Sales Market Company (2013) (NOKm) vs share 1 Weifa % 9% 2 Novartis % 13% 3 McNeil / J&J % -2% 4 Takeda Nycomed % -5% 5 Actavis % -4% 6 Bayer % 10% 7 Meda % -6% 8 Boehringer Ingelheim % 1% 9 ACO Hud % 17% 10 Abbott % -5% Others % 5% Aggregated OTC pharmacy % 3.7% Rank (2012) Medicine Sales Market (NOKm)* share 1 Otrivin % 2 Paracet % 3 Ibux % 4 Nicorette % 5 Nicotinell % 6 Canesten % 7 Livostin % 8 Voltarol % 9 Bisolvon % 10 Noskapin % Others % Aggregated non-prescription % Source: LMI/Farmastat, all figures in PPP (pharmacy purchasing price) 10

11 Norwegian analgesics market overview Norwegian analgesics market NOK 818 million in 2013 with a small annual growth Rx/OTC Pharmacy/OTC Mass market Continued price pressure on Rx drugs OTC Analgesics Pharmacy channel 2013: +9.9% Mass market channel 2013: -1.0% Weifa maintains position as the number one in pharmacy channel with a market share of 65% 2013 Analgesic market (value) 2013 Analgesic market (volume) 2013 pharmacy market share (value) 2013 pharmacy market share (volume) Pharmacy Rx Mass market 93.7 Pharmacy OTC Pharmacy Rx 32 % Pharmacy OTC 41 % Mass market 27 % Takeda Nycomed 8 % Actavis 5 % Novartis 16 % Mylan 2 % Others 4 % 65 % Novartis 8 % Actavis 9 % Takeda Nycomed 10 % Others Teva 6 % 4 % 63 % Source: LMI/Farmastat, AC Nielsen, all figures in PPP (pharmacy purchasing price). ATC: M01, M02, N02. Mass market values divided by two in order to do PPP-level comparison Source: LMI/Farmastat, all figures in PPP (pharmacy purchasing price). ATC: M01, M02, N02 11

12 Paracet The market leader in paracetamol Market share development, paracetamol ( ) Market channel split, Paracet and Paracetduo ( ) 100% 80% 60% 40% 20% Paracet + Paracetduo Pinex Panodil Pamol Ratiopharm 100% 80% 60% 40% 20% Pharmacy Mass market 0% 0% Source: LMI/Farmastat, AC Nielsen 12

13 Paracetduo The first paracetamol combination product The first paracetamol combination product ever approved by the Norwegian Medicines Agency Exclusively sold in the pharmacy channel Weifa awarded OTC Innovator of the year in 2013 by Apotek 1 (the leading Norwegian pharmacy chain) Support category value growth by taking 12% market share since launch Launch in February 2013 also increased sales of Paracet Source: Weifa s figures based on LMI/Farmastat, AC Nielsen 13

14 Ibux The market leader in ibuprofen Market share development, ibuprofen ( ) - Volume Market channel split for Ibux ( ) 100% 80% 60% 40% 20% Ibux Ibumetin Ratiopharm Ibuprox Collett 100% 80% 60% 40% 20% Pharmacy Mass market 0% % Source: LMI/Farmastat, AC Nielsen 14

15 Paralgin forte The market leader in paracetamol/codeine The leading paracetamol and codeine combination brand A prescription ( Rx) drug Norwegian government sets prices for Rx-drugs based on a small basket of comparable prices from European countries Total Norwegian opioids end market was approximately NOK 220 million in 2013 Weifa (one product) the second largest player in the Norwegian opioids end market after Mundipharma (eight products) Source: LMI/Farmastat 15

16 Norwegian cough and cold market overview Norwegian C&C market channels OTC market NOK 420 million in 2013 with moderate growth Pharmacy/Mass market (70/30) OTC C&C by sub-segment Nasal sprays the largest segment Market shares driven by the dominant position of nasal sprays in mass market Market channel by volume in 2013 Categories by volume 2013 (both market channels) Anti-tussives 10 % Non-medical nasal sprays and drops 5 % Non-medical throat lozenges etc.* 3 % Pharmacy 70 % Mass market 30 % Expectorant s 12 % Nasal sprays, plain 51 % Nasal sprays, combination 19 % Source: LMI/Farmastat, AC Nielsen * Non-medical throat lozenges for pharmacy channel only 16

17 Weifa s cough and cold brand portfolio Brand Active ingredient Application Dexyl Nazamér Nazaren Xylometazoline / dexpanthenol Dexpanthenol, salt water Xylometazoline Nasal decongestant Nasal decongestant Nasal decongestant Number of SKUs Dosage form 2 Spray 2 Spray 2 Spray Bronkyl Acetylcysteine Bronchitis 2 Effervescence Tussin Guaifenesin / sorbitol Cough mixture 2 100ml mixture Weifa-C C-Vitamin Vitamin supplement 2 Effervescence extract See appendix for full SKU list 17

18 Norwegian Nutra market overview Norwegian Nutra market channels Above NOK 3 billion in 2013 CAGR over last 5 years has been 3% Largest companies in pharmacy channel Nycoplus the largest brand Probiotics an important segment Weifa currently amongst the medium players Mail order/tv shop 3% Other Direct sales 1% 6% Company Brand(s) Market share 1 Takeda Nycomed Nycoplus, Nycopro 33.3% 2 Ferrosan (Pfizer) Idoform, Imedeen 15.4% Pharmacy 16% Internet 18% Grocery 29% Health shops/specialists 27% 3 Orkla Group (Gevita og Axellus) 4 Weifa 5 Bringwell Norge Gevita, Triomar, Gerimax, Möllers Complete bra!, Weifa Kalsium Frukt & Fiber, NBG 24:7, Kan Jang, Sambucol, Probi, Eskimo % 5.6% 3.9% 6 Wingfirm Farma Lifeline, C2 3.8% 7 Perivita Laktulose 3.0% 8 Pharma Nord BIO, Fitoprost 2.3% Source: Euromonitor, Farmastat 18

19 Weifa s Nutra and oral health brand portfolio Brand Active ingredient Application Number of SKUs bra! Various Supplements 12 Dosage form Tablets, capsules Fluormax Fluoride Oral health 4 Tablets Weifa Kalsium Calsium Calsium supplement 6 Tablets, chewable tablets Ferromax Ferrosulfat (Iron) Iron deficiency 1 Tablets See appendix for full SKU list 19

20 Weifa s wound and sport brand portfolio Brand Active ingredient Application Pyrisept Pyrivir Aselli Tiger balsam (reseller) Hirudoid (reseller) Cetylpyridinium chloride Cetylpyridinium chloride / Zinc Tannate Cajaput oil Mucopolysaccharide Number of SKUs Disinfection 4 Wound treatment Wound treatment Dosage form Liquid, spray, ointment 1 Ointment 1 Ointment Wound treatment 2 Ointment Wound treatment 1 Ointment See appendix for full SKU list 20

21 Production facility - Gruveveien Dedicated competitive plant for production and packaging of tablets - Paracet tablets - Paracetduo tablets - Ibux tablets - Paralgin forte tablets - Fanalgin tablets - Metformin tablets GMP certified Gruveveien was acquired in major upgrades in 1964, 1985, 1995, 2002 and 2012 From 2013 all non-tablet production outsourced Property and buildings owned by Weifa AS 21

22 Innovative company - attractive product pipeline Experienced R&D team Historic track record of first to market with - Rx-to-OTC switches - Line extensions - New combination products Recent launches include Bronkyl, Paracetduo, Dexyl and Trampalgin Cost effective and flexible R&D team - close cooperation with regulatory and marketing teams Several new Rx-to-OTC, line extensions and new brand products in R&D pipeline First to market OTC switches in Norway Paracet 500 mg Ibux 200 mg Ibux 5 % gel (first topical NSAID on the market) Ibux 400 mg Ibux OTC age limit lowered from 12 to1 year Samin Glucosamin Bronkyl Acetylcystein Driver of innovation in combo products First paracetamol combination OTC product - February 2013 First Xylometazoline nasal spray combination product - September 2013 First combination product with Tramadol - January

23 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 23

24 Diabetes II Global epidemic Metformin 1 st line Diabetes Diabetes II Treatment People with diabetes (million) Western Pacific South-East Asia Europe North America / Caribbean More than 371 million patients in 2012 expected above 550 million by 2030 Type 2 represents 90% of the cases Current adult prevalence is 8.3% and expected to increase to 9.9% in 2030 Source: IDF (International Diabetes Federation) Middle East and North Africa South/Central America Sub-Sahara Africa Growth 42% 72% 17% 33% 75% 51% 88% Plain metformin is the standard 1 st line treatment total value USD ~2 billion in 2013 New combination products containing metformin expected to become future preferred 2 nd line treatment - DPP-4/metformin combination - SGLT2/metformin combination - Repaglinide/metformin combination 24

25 Weifa metformin business overview Business overview Weifa produces metformin API - Metformin HCl (bulk API) - Metformin DC (a granulated pre-tablet form) - Metformin tablets Customers make their own tablets - Plain generic and branded - Branded + patented combinations with other diabetes treatment Strategic intent Strengthen global metformin API leadership position Pursue strategic opportunities Grow with existing high-value customers Strengthen brand perception Rapidly growing volume - Annual growth ~3,000 tones = size of Weifa s factory output Weifa positioned as high value supplier - More reliable supply - Free-flowing and high quality physical product - Custom made to supply chain requirements 25

26 Metformin market Market description Metformin HCl - 67% of the volume is manufactured in India - Weifa has the 5 th largest capacity in excess of 8% market share - Approx. 25 producers globally - Weifa one of two European manufacturers with export outside Europe Metformin DC - Current annual consumption ~ 6,000-7,000 MT - Weifa is the only European supplier Global manufacture (Metformin HCl) Global manufacture ~35,000 MT Weifa ~8% Metformin tablets - Weifa is one of few suppliers 26

27 Production facility - Fikkjebakke Dedicated metformin production plant built in 2002 State-of-the-art plant with high automation Provides one of the purest and best free-flowing qualities on the market Certifications in place - FDA approved (recent audit and approval, July 2014) - Manufacture according to current Good Manufacturing Practice (cgmp) Opportunity to add new production line - double the capacity Property and buildings owned by Weifa 27

28 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 28

29 Opioids market Comes in three forms: - Natural drugs (Codeine being one of them) - Synthetic drugs - Semi-synthetic Application: - Severe pain killers - Couch suppressants - Treat gastrointestinal disorder (diarrhea) - Treat addiction Manufacturing and import/export tightly controlled by authorities Protected market difficult for competitors to enter Few raw material suppliers Highest growth seen for buprenorphine (19%) and oxycodone (13%) while stable growth for codeine (4%) and pholcodine (7%) 29

30 Market for codeine and pholcodine Codeine market ~400 MT Codeine is the top-selling opioid (volume) Stable growth ~4% per annum Major user countries UK (19%), India (19%), France (10%), Iran (7%), US (7%), Canada (6%) and China (4%) Pholcodine market ~10 MT Major user countries China (44%), France (19%), Pakistan (13%) and Australia (7%) Few players in the market Several manufacturers have protected positions in their home markets owing to import restrictions Weifa 6% Weifa 16% Source: INCB, Weifa 30

31 Weifa opioids business overview Business overview Weifa produces APIs Weifa also produce finished codeine and codeine tablets both for captive use - Codeine Phosphate - Pholcodine tablets Customers make their own tablets - Plain generic and branded - Branded + patented combinations with other pain treatment Strategic intent Aim for global codeine business leadership Pursue strategic opportunities Secure raw materials access Expand API portfolio Expand end-to-end tablet business Become a fully integrated supplier Steadily growing volumes Weifa positioned as high value supplier - Reliable supply - High quality product - Swift export approvals 31

32 Production facility SYA1 Product range - Codeine Phosphate - Pholcodine GMP certified Ability to handle controlled drugs Swift license process with the Norwegian Medicines Agency (Legemiddelverket) Possible widen product range to other opioids from the same raw materials Possible to expand capacity 32

33 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 33

34 Weifa - Consumer Health key financials Total revenue EBITDA and margin* NOK million NOK million % 20 % 22 % H H 2014 Stable revenue growth over several years - Average annual growth of 5.3% the last decade Slightly lower sales in H due to a weak influenza season, which affected the pain relief segment Improved EBITDA margin as a result of continues focus on cost reduction and product portfolio optimisation - Outsourced all small volume products, and only tablets produced at the Kragerø plant * No EBITDA split between business units prior to

35 Weifa B2B key financials Total revenue EBITDA and margin* NOK million NOK million % 7 % 12 % H H 2014 Stable and strong revenue growth over several years, particularly within metformin - The metformin business started in 2003 Significant improvement in margins on the back of better utilisation and changes in customer mix within the metformin business Close to full capacity utilisation at the metformin production plant - Capacity of approx. 3,200 MT * No EBITDA split between business units prior to

36 Weifa AS P&L* NOKm Q Q H H 2013 FY 2013 Total revenue Gross profit Gross margin 65.6 % 64.6 % 65.8 % 67.3 % 66.7 % Operating expenses EBITDA EBITDA margin 19.3 % 9.7 % 18.2 % 16.8 % 16.1 % Depreciation and amortization Strong overall performance in 1H 2014 compared to 1H 2013, despite weaker influenza season Total revenue and EBITDA for 1H 2013 includes approx. NOK 7 million for the sale of the Weifapenin trademark Estimated EBITDA of approx. NOK 100 million for the full year (ex. bonus to employees) Estimated future maintenance capex of NOK million EBIT EBIT margin 16.3 % 6.5 % 15.1 % 13.8 % 12.9 % Net financial items Profit before tax * Prepared in accordance with NGAAP 36

37 Weifa AS Key financials by business segment* Consumer Health NOKm Q Q H H 2013 FY 2013 Total revenue Gross profit Gross margin 82.2 % 82.3 % 82.6 % 81.3 % 81.2 % Operating expenses Slightly lower sales in H due to a weak influenza season, which affected the pain relief segment Increase in EBITDA and improved margins, as a result of lower cost base compared to last year EBITDA EBITDA margin 24.0 % 9.4 % 21.5 % 17.7 % 20.0 % B2B NOKm Q Q H H 2013 FY 2013 Total revenue Gross profit Gross margin 47.0 % 44.6 % 47.8 % 44.6 % 46.0 % Strong sales growth in B2B segment continued in 1H 2014, with an increase of 19% compared to last year Improved margins on better utilisation and customer mix Operating expenses EBITDA EBITDA margin 10.1 % 10.0 % 12.4 % 8.3 % 7.3 % * Prepared in accordance with NGAAP 37

38 Weifa AS Operating Cash Flow and Net Debt Free Cash Flow (NOK million) Net Debt (NOK million) ** 19.9* 1H H * Excluding NOK 7.2 million from sale of Weifapenin trademark ** Excluding NOK 15 million in tax payment relating to 2013 (no payment in 1H 2013) 38

39 Weifa group Pro forma consolidated balance sheet* (NOKm) ASSETS Non-current assets Deferred tax assets 56.1 Intangible assets Property, plant & equipment Financial fixed assets 4.1 Total non-current assets Current assets Inventory Accounts receivables 99.7 Other receivables 9.5 Cash and cash equivalents 75.9 Total current assets Total Assets Intangible asset arising on consolidation of Weifa AS: - Trademarks, brand names, customer relationships, and goodwill Inventory - Inventory includes approx. NOK 42m in excess value recognized as part of the acquisition (NOKm) EQUITY AND LIABILITIES Equity Share capital Share premium Retained Earnings Total equity Lon-term liabilities Pension provisions 11.9 Long-term interest bearing debt Total long-term liabilities Current liabilities Short-term interest bearing debt 19.4 Accounts payables 32.8 Tax payables 10.2 Other short-term liabilities 36.7 Total current liabilities 99.1 Total Equity and Liabilities Interest bearing debt of NOK 463 million - 5 year bond loan of NOK 400m - 3 months NIBOR + 4% Net interest bearing debt of NOK 387m * Estimated figures as if the acquisition and related transactions had occurred on For presentation purposes only. 39

40 Major financial items relating to the acquisition Item Intangible assets Inventory Bond issue Deferred tax asset Details Diff. between purchase consideration of NOK 1,127m and the net assets of Weifa AS (after adj.) = NOK 1,058m* Relates to trade names, brand names, customer relationships and goodwill Trade names and customer contracts are amortised Excess value in inventory on acquisition of approx. NOK 42m Bond loan of NOK 400m at 3 months NIBOR + 4% A deferred tax asset of approx. NOK 212m will be recognised as part recognition of the carried forward tax losses in Weifa ASA of NOK 844m (at 31.Dec.13) Effect on future financial periods Expected amortisation charge of approx. NOK 4m per quarter Will be expensed (inventory sold) in Q3 and Q Future interest expense of approx. NOK 5m per quarter, at current NIBOR rate Expected positive P&L effect of NOK 212m in Q3 14 * Based on preliminary purchase price analysis 40

41 Top 20 Shareholders # Name Shares % 1 STRATA MARINE & OFFSHORE % 2 FAMADAY TRADING INC % 3 HOLTA LIFE SCIENCES % 4 MP PENSJON % 5 CARNEGIE AS % 6 VICTORIA INDIA FUND % 7 SUNDT AS % 8 VICAMA A/S % 9 HOLBERG NORDEN % 10 KLP AKSJE NORGE % 11 ARCTIC FUNDS PLC % 12 FERNCLIFF LISTED DAI % 13 VERDIPAPIRFONDET DNB SMB % 14 TOLUMA NORDEN AS % 15 KOMMUNAL LANDSPENSJONSKASSE % 16 VERDIPAPIRFONDET STOREBRAND OPTIMA % 17 BORGEN INVESTMENT GROUP % 18 GRANT INVEST AS % 19 GROSS MANAGEMENT AS % 20 HOLBERG NORGE % OTHER % TOTAL % 41

42 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 42

43 The New Weifa From a traditional family owned business with moderate profitability to international oriented business with growing profitability Successful brand building and restructuring Experienced management with ambitious growth strategy A number of new products in the pipeline Track record of value generation Dividends of NOK 250 million over the last five years and doubling of market cap Weifa before listing Add-ons through listing Lower cost of capital Access to capital markets Value increasing M&A Owners with value creating track record Focus on growth and optimization of existing operations A combination of new owners and access to capital markets opens up a number of new opportunities record of growth and optimizing operations 43

44 Q&A 44

45 Presentation outline Company overview I Consumer Health business area II Metformin business area III Opioids business area IV Financials V Summary VI Appendix VII 45

46 Terms and abbreviations API B2B C&C CAGR CEP CMO COGS CPS DCDA DMA DMF EBIT EBITDA FB FDA FTE GDP Generic (OTC) Generic (Rx) GMP GP GV JM LEAN Line extension LMI MA Mass market MAT Metformin DC Metformin HCl MT NSAID Nutraceuticals Opioids OTC PPP QA QC RX Rx-to-OTC switch SKU SYA1 SYA2 USP YTD Ø27 Active pharmaceutical ingredient Business-to-business Cough and cold Compounded annual growth rate Certificate of Suitability to the European Pharmacopoeia Contract manufacturing organisation Cost of Goods Sold Concentrate of poppy straw Dicyandiamide Dimetylamin hydrochloride Drug master file (document with complete information on an API) Earnings before interest and tax Earnings before interest, tax, depreciation and amortisation Fikkjebakke - Metformin production facility in Kragerø, Norway U.S. Food and Drug Administration Full-time equivalent Good Distribution Practice Term used for non-branded products Copy of drug were the substance patent has expired Good Manufacturing Practice General practitioners Gruveveien - Dedicated tablets and opioids production facility in Kragerø, Norway Joint marketing Production practice with focus on creating value for customer New flavors, forms, colors, added ingredients, packaging size under an existing brand The Association of the Pharmaceutical Industry in Norway Market authorisation All retail outlets other than pharmacies (grocery, gas stations, kiosks, internet etc.) Moving annual total (last 12 months) Directly compressible Metformin, a granulated pre-tablet form Metformin hydrochloride Metric ton Non-steroidal anti-inflammatory drugs Dietary food supplements, nutrition products, vitamins which is not registrated as drugs Collective term chemicals that work by binding to opioid receptors in the body Over-the-counter. Drugs available without a prescription Pharmacy purchasing price Quality assurance Quality control Drugs that require a prescription OTC registering a drug product containing an API which previously has only been available as RX Stock keeping unit Opioids production facility (located at Gruveveien) Metformin production facility (located at Fikkjebakke) Unique selling proposition Year-to-date Østensjøveien 27 - Weifa's head office in Oslo, Norway 46