Krka Group Business Performance Webcast

H1 2023 Results

David Bratož, Member of the Management Board

Brane Kastelec, Finance Director

20 July 2023

Krka Group Business Performance

H1 2023 Highlights

  • Sales in H1 2023 accounted to €920.4m; +7% yoy
  • Maintaining strong profitability, net income affected by FX
  • Net profit amounted to €170.1m; -28% yoy
  • Sales increased in all sales regions and in majority of sales markets
  • Strong sales increase in Vet. (+23%), Spa. (+18%), OTC (+6%), and Rx (+6%)
  • RUB volatility affecting operating and net financial result → - €29.4m net financial result
  • 5 new MA in H1; R&D: 9.3 % of revenue; CAPEX: €45.6m

SALES 5Y CAGR: 6.2%

920

In

759 802

807

857

EUR

million

1-6 19 1-6 20 1-6 21 1-6 22 1-6 23

EBIT 5Y CAGR: 11.8%

In

236

217

201

217

EUR

155

million

1-6 19 1-6 20 1-6 21 1-6 22* 1-6 23

*1-6 2022 EBIT is adjusted figure

Challenging environment in region East Europe continues

Remaining firmly on track with core strategic objectives

of vertical integration →

2023 guidance: sales €1,755m, net income ≈ €300m

strengthening the vital elements of value creation chain

www.krka.biz

2

Well-Diversified Activities

Providing access to high quality affordable medicines

Krka's presence on 70+ markets in 6 sales regions

49 subsidiaries outside Slovenia:

45% of all Krka Group workforce

Sales regions

Region Slovenia

Region Central Europe

Region East Europe

Region South-East Europe

Region West Europe

Region Overseas markets

Manufacturing locations

Slovenia I Russian Federation

Poland I Germany I Croatia I China

55+ million patients daily use Krka's

medicines worldwide

17 bn FDF produced annually in various

therapeutic groups

Operating in many low to middle income countries, creating savings for patients & healthcare systems

www.krka.biz

3

Long-term Stable Operating Business Growth

Revenue rising along with manufacturing output

THE BIG 5

Pieces sold CAGR (2005-2022)

6.9%

over 1b in

Sales revenue CAGR (2005-2022) 7.4%

sales volume

Global pharma market CAGR (2005-2022) 5.6%

18

Net income CAGR (2005-2022)

10.0%

1,600

Manufacturing output growth (2005-2022) +185%

16

1,400

14

1,200

12

EURmillion

400

soldPiecesbillion

4

1,000

10

800

8

600

6

200

2

0

0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

www.krka.biz

Sales revenue

Net profit

Pieces sold (billion)

4

Krka Group Sales by Regions

Continuation of good sales dynamics

H1 2023 sales: EUR 916.5 million of goods

and services; (+7% yoy; EUR +63.0m)

  • Largest market: Russian Federation Sales: EUR 180m; +4% yoy

167 180 168 173 180

In

EUR million

H1 19

H1 20

H1 21

H1 22

H1 23

Central Europe

2nd market Poland; Sales: EUR 93m; +5% yoy

EUR 212.9.m

+9%

88

89

93

East Europe

23.2%

(EUR +16.8m)

80

86

EUR 300.5m

+4% 32.8%

(EUR +12.8m)

H1 19

H1 20

H1 21

H1 22

H1 23

33d market Germany; Sales: EUR 49m; +4% yoy

19.8%

41

48

43

47

49

West Europe

South-East Europe

13.9%

4.1%

EUR 181.4m

+8%

EUR 127.4m

(EUR +12.8m)

H1 19

H1 20

H1 21

H1 22

H1 23

(EUR +8.2m)

+7%

6.2%

4th market Ukraine; Sales: EUR 39m; -16% yoy

Slovenia

Overseas Markets

36

37

46

46

39

EUR 56.6m

+15%

EUR 37.6m

+16%

(EUR +7.2m)

(EUR +5.2m)

H1 19

H1 20

H1 21

H1 22

H1 23

www.krka.biz

5 Nominal and relative change compared to same period year-over-year

In

EUR million

In

EUR million

In

EUR million

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Disclaimer

KRKA dd published this content on 21 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2023 06:47:10 UTC.