Interim Report January September 2011 Stockholm, 20 October 2011 Geoffrey McDonough (CEO) and Lars Sandström (CFO) We provide valuable medicines to patients with rare diseases
Disclaimer In order to utilize the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995, Swedish Orphan Biovitrum is providing the following cautionary statement. This presentation contains forward-looking statements with respect to the financial condition, results of operations and businesses of Swedish Orphan Biovitrum. By their nature, forward-looking statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from that expressed or implied by these forward-looking statements. These factors include, among other things, the loss or expiration of patents, marketing exclusivity or trade marks; exchange rate fluctuations; the risk that R&D will not yield new products that achieve commercial success; the impact of competition, price controls and price reductions; taxation risks; the risk of substantial product liability claims; the impact of any failure by third parties to supply materials or services; the risk of delay to new product launches; the difficulties of obtaining and maintaining governmental approvals for products; the risk of failure to observe ongoing regulatory oversight; the risk that new products do not perform as we expect; and the risk of environmental liabilities. 2
Agenda Introduction Geoffrey McDonough, CEO Financial Review Lars Sandström, CFO Business Review Geoffrey McDonough, CEO Q & A 3
Key Points Sobi is an integrated, innovative biopharmaceutical company We have a unique position in the rare disease space Our focus today: 1. Growth reaching the potential of our key products 2. Profitability operating efficiency and discipline 3. Building value for our future executing on our pipeline 4
Financial Review Lars Sandström, CFO We provide valuable medicines to patients with rare diseases
SEK M Financial performance YTD 1 500 1 000 500 Total revenues EBITA before non-recurring items 0 2010 YTD 2011 YTD 6
Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M Revenues by quarter 600 500 400 Total revenues SEK 447 M (444) Currency effects SEK -13 M Discontinued products SEK -26 M 300 200 100 0 Product sales and Copromotion +8% y/y adjusted for currency effects and discontinued products Product sales & Co-promotion Other revenues 7
SEK M Revenues Q3-11 vs. Q3-10 500 400 300 200 100-26 -13 +26 +15 0 Q3 2010 Discontinued products Currency Growth from product portfolio Growth from other revenues Q3 2011 8
Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M EBITA before non-recurring items by quarter 250 200 150 100 50% 40% 30% 20% EBITA before non-recurring items SEK 3.0 M (65.6) EBITA margin 0.7% (12.8) 50 10% 0 0% EBITA before non-recurring items % of sales 9
EBITA Q3-11 vs. Q3-10 EBITA SEK 3 M (66) + Volume + Lower operating expenses Gross margin 52% (64%) Scheduled plant maintenance Currency Royalty 10
Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M Cash flow before financing (excl. acquisitions) by quarter 50 0 Cash flow before financing (excl. acquisitions) SEK -3.2 M (+3.4) -50 Working capital SEK -13.7 M (-32.4) -100 Net investments SEK -28.7 (-5.0) -150 Cash flow before financing (excl. acq.) Whereof working capital 11
Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M Total inventory value by quarter 1 200 Tech Transfer Kineret 1 000 800 600 400 200 0 12
Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M Net debt by quarter 1 500 30% 1 000 20% Net debt SEK 613 M (1,131) Net debt to equity 12% 500 10% 0 0% Net debt Net debt / Equity 13
Outlook 2011 Reiterate revenue growth of 1-5 % and lower gross margin compared to last year Expect to evaluate possible write-down of balance sheet items in Q4 of up to SEK 350 M Inventory positions Intangible assets Other items including finalization of restructuring announced in Q1 2011 14
Business Overview Geoffrey McDonough, CEO We provide valuable medicines to patients with rare diseases
Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M Sales Driven by a Diverse Portfolio 600 500 400 300 200 100 0 Product sales & Co-promotion Other revenues 54 Products 16
Portfolio Dominated by Three Lines Revenues YTD Other products 26% ReFacto 37% Orfadin 16% Kineret 21% 17
SEK M Revenues YTD growth @ CER 600 +29% 500 400 300 +8% +6% +1% 200 100 0 Kineret Orfadin ReFacto Other products excl. discontinued 2010 2011 @ CER 18
Kineret Potential in RA Segment (Europe example) Current Kineret Market Share 0.5% Total RA patients 4.7 million (approx. 1% of population) Diagnosed patients 3 million (approx. 60% of total) Treated with biologics 820 000 Eligible Kineret patients 200 000 Role of Kineret in RA is reemerging as an option for patients We are gaining momentum as we learn more about the appropriate clinical role for Kineret in the rheumatology community Source: Datamonitor 2010, Schiff et al 2004 and Sobi assumptions 19
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 SEK M Growth Drivers for Orfadin 100 75 50 25 0 Potential in existing markets as awareness of newborn screening and adolescent compliance increases New markets First commercial sales in Russia Working to build our presence in the Middle East region Orfadin @ CER 20
Revenues* YTD by region RoW 4% North America 36% Kineret and Orfadin Europe 52% RoW 1% Other products North America 12% Europe 25% Nordic 62% Nordic 8% * Product sales and Co-promotion 21
SEK M Revenues* YTD growth @ CER 500 400 +4% 300 +13% +6% 200 100 +5% 0 Europe Nordic excl. discontinued products North America RoW 2010 2011 @ CER * Product sales and Co-promotion 22
Research & Development Indication Product/ Project Hemophilia A rfviiifc Biogen Idec Hemophilia B rfixfc Biogen Idec Prevent growth restriction in premature infants Kiobrina Partner Phase I Phase II Phase III Reg. phase 23
Communications Calendar 29 November 2011 Capital Markets Day Stockholm 9-12 January 2012 JP Morgan Presentation San Francisco 23 February 2012 Q4 Earnings Call Stockholm For details please contact: Asa Stenqvist asa.stenqvist@sobi.com 24
Summary Sobi is an integrated, innovative biopharmaceutical company We have a unique position in the rare disease space Our focus today: 1. Growth reaching the potential of our key products 2. Profitability operating efficiency and discipline 3. Building value for our future executing on our pipeline 25
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