SKAN : Presentation Annual Results 2023

SKAN Group AG

Presentation of the 2023 Financial Results

26 March 2024

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This presentation ( the "Presentation"), contains information regarding SKAN Group AG (the "Company") and each of its subsidiaries and affiliates (the "Group"). The information and opinions contained in this Presentation do not purport to be comprehensive and are provided as at the date of this Presentation or as of the date specified herein. Certain financial information (including percentages) in this Presentation may have been rounded according to commercial standards. As a result, the aggregate amounts may not correspond in all cases to the aggregated amounts of the underlying (unrounded) figures appearing elsewhere in this Presentation.

The financial information presented herein has been prepared in accordance with Swiss GAAP FER. Certain financial data included in this Presentation consists of non-Swiss GAAP FER financial measures. These non-Swiss GAAP FER financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with Swiss GAAP FER. In addition, certain financial information contained herein has not been audited, confirmed or otherwise covered by a report by independent accountants and, as such, actual data could vary, possibly significantly, from the data set forth herein. None of the Company, the Group, and any other person is under any obligation to update or keep current the information contained in this Presentation or to correct any inaccuracies which may become apparent, and any opinions expressed herein are subject to change without notice.

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Agenda

• 1. Overview of Business Year

Thomas Huber (CEO)

2.

3.

4.

5.

Highlights of the financial year 2023

Order Intake

in CHF million

295.1

-28.3%(1)

EBITDA

in CHF million

50.1

+24.9%(1)

Investments

in CHF million

Net Sales

in CHF million

320.0

+15.5%(1)

EBITDA-Margin

as % of Net Sales

15.7

+1.2pp(1, 2)

Order Backlog

in CHF million

Stabilisation of order intake at a healthy level after an exceptionally strong previous year.

Order backlog and book-to-bill ratio at 0.9 offer planning security for more than a year in Equipment & Solutions.

Net sales growth at constant exchange rates with 19.2% at upper end of guidance.

EBITDA increased once again compared to the previous year.

EBITDA-Margin above the guidance.

EBIT increased by 28.1% from CHF 29.5 million to CHF 37.8 million.

35.3

+22.3%(1)

312.1

-13.3%(1)

Total investments of CHF 35.3 million mainly related to the expansion of pre-approved services.

• (1) Changes compared to previous year

• (2) Percentage points

Both segments progressing well

Equipment & Solutions

Incoming orders were evenly split between isolators for high-speed applications and systems for smaller production volumes inlcuding quality control applications.

The segment made progress as planned with the strategic initiatives in the areas of integrated process systems and standardisation.

SKAN Group has once again invested a significant amount, around 7% of

Group net sales, in initiatives as well as general research and development.

Services & Consumables

The consumables business proved to be a key driver of sales and margin growth in the Service & Consumables segment in the reporting year.

Automated process solutions for closed vials from our Belgian subsidiary

Aseptic Technologies were particularly in high demand.

SKAN is well on track with the project for pre-approved services, which will contribute to the expansion of the services business in the future.

Agenda

1.

• 2. Strategy execution

Thomas Huber (CEO)

3.

4.

5.

SKAN Group's growth strategy

• ▪ Investment in production capacity expansion and scale-up

• ▪ Continuous innovation to meet customer's demand and to maintain technical leadership

• ▪ Continuous active contribution to new guidelines & regulations

• ▪ Grow service revenues with ever-increasing installed base of isolators

• ▪ Scale-up of Aseptic Technologies

• ▪ Intensified joint developments with established fill-finish partners

• ▪ In-house development of automated process equipment in combination with isolator technology

• ▪ Increasing, global product lifecycle support with expanding installed base of isolators

  Continue growth track-recordIncrease recurring revenue base

  Expand profitability

• ▪ Further development of innovative consumables (e.g. closed vials, transfer systems, filling kits)

• ▪ Additional service offerings of "pre-approved" solutions to help customers shorten time-to-market

• ▪ New financing models such as pay per use and off the shelf delivery

Objectives:

• ▪ Increased augmented reality service support to increase reaction time and reduce long distance travel

• ▪ Increased Virtual Reality design support

• ▪ Industry 4.0

-

Artificial Intelligence for preventive maintenance

- "One button release" paperless

GMP compliant documentation

Strategy execution in 2023

• ▪ Launch of digital suite of products «Sphere».

• ▪ Decentralisation progress, product and knowledge transfer are according to plan.

• ▪ Seamless integration to data management systems to increase efficiency at customer site.

• ▪ Annex 1: SKAN actively serving as a guiding partner for our customers, navigating them through the newly introduced requirements.

• ▪ Seven drugs filled in AT closed vial received commercial approval in 14 countries.

• ▪ AT development pipeline grew again to approx. 450 substances.

• ▪ SKAN increased stake in AT to 85%.

• ▪ Launch of «Pure 2» as an early phase research solution.

• ▪ Product lifecycle support is growing and supported by SKAN Academy and the decentralisation of competencies to SKAN hubs.

• ▪ Increasing the stake in AT to 90% by 2026 at the latest will further strengthen consumables business.

• ▪ Progress of pre-approved services as planned.

Continue growth track-recordIncrease recurring revenue base

Expand profitabilityObjectives:

• ▪ VR Mockup is part of our standard offering and provides unprecedented insights into to the User Experience.

• ▪ First customers use our predictive maintenance solution with AI for system surveillance.

• ▪ Implementation of «One Button Release» according to plan. First application of the digital landscape (for seamless data transfer) went live, first workflows of other applications created or in testing.

Customer proximity strengthened through accelerated decentralisation

Allschwil CH

Headquarters / production sites

• • Engineering, sales, service, assembly, R&D, laboratories

• • Approx. 26,682 m2

Stein CH

Production site

• • Prototype construction, steelwork, E-Beam competence

• • Approx. 6,923 m2

Görlitz DE

Production site

• • Focus: Steelwork, production, assembly, qualification

• • Approx. 26,649 m2

Gembloux BE

Production site / AT

• • Aseptic Filling equipment (Closed Vial® Technology)

• • Approx. 3,590 m2

Raleigh US

Sales & services office

• • Sales and life cycle support Americas

• • Approx. 1,200 m2

Okinawa JP

Production site

• • Sales, assembly, and life cycle support Far East

• • Approx. 2,170 m2

New drugs increase consumption of AT-Closed Vial®

Seven AT filled drugs on the market:

Customer

Product area

Phase

DELYTACT®: Oncolytic virotherapy for brain cancer

ARTI-CELL® FORTE: Cartilage repair for veterinary applications

CARVYKTI™: Lentivirus used for the production of a drug against multiple myelomaEBVALLO™: Monotherapy for the treatment of Epstein-Barr virus

VYJUVEK™: Treatment of wounds in patients with dystrophic epidermolysis bullosa in collagen type VII alpha 1 chain gene

CASGEVY™: Therapy for the treatment of sickle cell disease and transfusion-dependent Beta Thalassemia

BEQVEZ™: Therapy to treat Haemophilia B

Besides the expansion of the installed equipment base, which requires maintenance, requalification and spare parts, the volume in the Services & Consumables segment was driven by higher sales of AT-Closed Vial® and associated disposable product path.

This confirms the expectation that the comercialisation of new drugs increases the consumption of AT-Closed Vial®.

Together, these 7 drugs are subject to 14 approvals by 6 major health authorities, including FDA, MHRA and EMA" (30.6.2023: 5 drugs in 9 countries).

The development pipeline of drugs in AT-Closed Vial® is likely to be in the region of 450 active ingredients.

Besides the sale ready-to-fill closed vials also the demand for AT production equipment increases.

Explanation of abbreviations:

FDA: Food and Drug Administration

MHRA: Medicines and Healthcare products Regulatory Agency EMA: European Medicines Agency

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