Weifa ASA Second quarter and first half 2016 Third quarter 2015 - PowerPoint PPT Presentation

Weifa ASA – Second quarter and first half 2016 – Third quarter 2015 Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO) 25 August 2016 1

Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 2

Highlights  Record second-quarter revenues of NOK 95.3 million (NOK 70.6 million) - Revenue growth of 35% - organic growth(excl. Asan) of 17% - Strong brands secured high market share in all categories and segments of both channels  Second-quarter adjusted EBITDA of NOK 18.6 million (NOK 12.7 million) - Adjusted EBITDA margin of 19.5% (18.0%)  Improved terms in new debt structure with increased financial and strategic flexibility - One-time financial cost effect of MNOK 17.5 related to the buy-back of the bond loan  Paid dividend of NOK 0.05 per share (NOK 1.25 per share adjusted for reversed share split)  Building Nordic position with agreement for pain products in Finland  Entering new growth category by launch of Zonat, an RX occasional insomnia product 3

Delivering on our strategic priorities Pharmacy market share Strengthen leadership within pain 70% 76% relief 2010 2015 Be the fastest growing cough & 53% revenue growth for Bronkyl in Q2’16 cold player A unique product in a new Enhance domestic position category – launched Q3 Expand geographically Introducing pain brands in Finland 4

Four attractive key categories Pain RX and OTC Cough & cold OTC Nutra Dermatology Number 1, 2 and 3 in Number 1 and 2 in niche Number 1 in disinfection Number 1 player certain segments segments and intimate wash 5

Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 6

RX Pain Strengthening the market position in prescription drugs Market share development  RX pain – a growing segment - Market size NOK 305 million (LTM) Market share LTM* - Growing 9.1% in the second quarter (LTM) 2015 2016 73% 69%  Weifa revenue from prescription drugs rose 20% in the quarter 46% 46% 24% 20% Paralgin forte + Paracet Rx Ibux Rx Trampalgin 7 *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa

OTC Pain – A champion in the non-prescription pain category Market share development  OTC Pain segment – stable market development Market share LTM* - Market size NOK 247 million (LTM) 2015 2016 - Growing 1.1% in Q2 2016 (LTM) 88% 87%  Second quarter Weifa revenue for RX and OTC pain combined increased 18% 74% 73% - Stable high market shares for both Paracet and Ibux Paracet + Paracetduo (paracetamol) Ibux + Proxan (NSAID) 8 *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa

OTC Cough & Cold - Bronkyl is the main growth driver in the cough segment Market share development  Strong market growth in the OTC cough segment (17%) Market share LTM* 2015 2016 - Market size for cough NOK 54 million (LTM)  Second quarter Weifa revenue increased 20.6% 30% to NOK 4.7 million - Bronkyl sales up 53% 16.4% - Positive development for Dexyl and Tussin - Offset by lower sales of Weifa C and Nazamér 8.9% 8.4% Tussin Bronkyl 9 *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa

Nutraceuticals with mixed development Market share multivitamin  The market for minerals, vitamins and supplements (OTX) is growing Market share LTM* - Market size NOK 360 million in pharmacy channel (LTM) 16% - Growing 11% in second quarter 2016 (LTM)  Weifa sales of nutraceuticals decreased 11% 4.3% in the second quarter - Lower sales of Kalsium - Multivitamin position strengthened with Complete multi as fastest-growing brand - 16% market share in second quarter (11%) 2015 2016 *) Amounts are based on LTM June 2016. All figures are measured in pharmacy purchasing prices. Source: *) Market share by volume, 12 months rolling. Source: Farmastat 10 LMI/Farmastat, Nielsen and Weifa

Dermatology – the new growth category Market share Norway*  Market for shower and intimate wash products declined by 1.9% (LTM) Market share LTM* - Market size NOK 419 million (LTM)  Second quarter dermatology Weifa 74% revenue of NOK 15.7 million (2.9 million) - Revenues excluding Asan increased 1.9% - Asan not included in the year-ago numbers 20% Shower Intimate care Market share by value, 12 months rolling Source: AC Nielsen 11 *) Category shower including intimate wash measured by value

Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 12

Revenue development Quarterly Annual NOK million NOK million 333 Weifa 316 310 299 Asan 292 282 98 274 96 95 248 239 220 220 77 71 194 2004 2005 2006 2007 2008 2009 2020 2011 2012 2013 2014 2015 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Note: Historical figures represent reported revenue for the consumer health business in Weifa AS. 13

Improving underlying margin Revenue EBITDA and margin NOK million NOK million Group charges CMO margin to Vistin Pharma 25.0 35% 95 20 30% 20.0 25% 71 13 15.0 21% 20% 18% 15% 10.0 10% 5.0 5% 0.0 0% Q2 2015 Q2 2016 Q2 2015 Q2 2016  Q2 2016 revenue increased 35% YoY  Q2 2016 EBITDA - Asan operations included from January 2016 - Adjusted for CMO margin effect and group charges - Organic growth 17% (excluding Asan) driven by demand for pain relief and cough & cold - Margin 21% 14

Key financial events in the second quarter  Net financial cost impacted by one-time effects related to debt refinancing - NOK 17.5 million booked related to the buy-back and early redemption of the bond loan in the second quarter and fees - The one-time cash effect about NOK 8 million as previously communicated  Improved terms in new debt structure with increased financial and strategic flexibility - New five-year NOK 350 million loan agreement with DNB at 3M NIBOR +2.5% at current leverage - Provides extended maturity and significant cost savings over the duration of the loan  Paid dividend of NOK 0.05 per share on 10 June (NOK 1.25 per share adjusted for reversed share split)  Reverse share split 25:1 effectuated on 13 July in order to secure adequate pricing of the shares and to comply with Oslo Børs ’ continuing obligations 15

Consolidated income statement (NOK 1 000) Q2 2016 Q2 2015 6M 2016 6M 2015 2015 Total revenue and income 95 344 70 606 191 497 157 993 332 547 EBITDA 17 147 10 993 33 610 28 459 65 583 EBITDA adjusted* 18 587 12 681 40 504 31 579 72 909 Profit/(loss) from continuing operations ** (6 142) 2 476 301 8 980 10 208 Earnings per share (NOK): diluted (0.01) 0.00 0.00 0.01 0.01 Total Assets 1 495 940 1 553 170 1 495 940 1 553 170 1 544 363 Net interest-bearing debt 312 532 134 193 312 532 134 193 152 544 * Adj. for employee options of NOK 1.4 million in Q2 2016 (Q2 2015 NOK 1.7 million) ** Incl. one-off cost from the buy back of own bonds (book value vs transaction value) of NOK 17.5 million in Q2 2016 16

Strong operational cash flow (NOK 1 000) Q2 2016 Q2 2015 6M 2016 6M 2015 2015 Cash flow from operating activities 17 690 3 502 23 873 3 863 49 472 Cash flow from investing activities 278 120 221 (120 511) 118 007 106 970 Cash flow from financing activities (112 049) (4 534) (65 945) (61 434) (98 776) Net change in cash and cash equivalents (94 081) 119 189 (162 583) 60 436 57 666 Cash and cash equivalents beginning period 133 438 85 521 201 940 144 274 144 274 Cash and cash equivalents end period 39 357 204 710 39 357 204 710 201 940 Q2  Cash flow from operations reflect strong growth momentum  Investing activities reflect low capex  Net cash flow from financing reflects net effect of the refinancing as well as dividend paid in the amount of NOK 45.6 million for the quarter 17

Robust balance sheet after successful refinancing (NOK 1 000) 30.06.2016 30.06.2015 31.12.2015 Intangible assets 1 260 218 1 127 114 1 150 848 Deferred tax assets 103 175 122 051 110 549 Cash and cash equivalents 39 357 204 710 201 940 Other assets 93 190 99 295 81 026 Total assets 1 495 940 1 553 170 1 544 363 Total equity 1 075 720 1 140 116 1 117 991 Interest-bearing loans 351 889 338 903 354 484 Other liabilities 68 331 74 151 71 888 Total equity and liabilities 1 495 940 1 553 170 1 544 363 Net interest bearing debt 312 532 134 193 152 544  Cash and cash equivalents amounted to NOK 39 million at the end of the quarter  Total borrowings NOK 352 million after refinancing  Net interest bearing debt of NOK 313 million  Equity ratio of 72% 18

Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 19

Expanding geographically and entering new segments  Weifa expects organic revenue growth and an improved EBITDA margin for 2016 compared with the year before  Five-year distribution agreement with Fysioline Group in Finland for pain products  New product launches and categories drivers for growth - Zonat – RX product for occasional insomnia - launched in Q3 - Solvivo – for sore throat - launch in Q3 - Ibux 200mg capsules – launch in Q4 Weifa - well positioned for continued growth 20

Q&A 21

Thank you for your attention ! Next event: 3 rd Quarter Presentation 25 October 2016 22