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NASDAQ:ACET ACETO Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide”

ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Page 1: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

NASDAQ:ACET

ACETO Corporation

Jefferies 2015 Global Healthcare Conference

“Sourcing & Supplying Quality Products Worldwide”

Page 2: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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This presentation contains “forward-looking statements,” as defined by the Private Securities Litigation Reform Act of 1995, that can be identified by words such as “believes”, “expects”, “anticipates”, “plans”, “projects”, “seeks” and similar expressions and involve numerous risks and uncertainties. The Company’s actual results could differ materially from those anticipated or implied in such forward-looking statements as a result of certain factors, as set forth in the Company’s filings with the Securities and Exchange Commission.

Disclosure

Page 3: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

Company Overview

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Human Health

• Finished Dosage

Form Generics • Nutritionals: supply

app. 250 popular dietary supplements

Pharma Ingredients • Pharmaceutical

Intermediates • Active

Pharmaceutical Ingredients

Performance Chem. • Specialty

Chemicals • Agricultural

Protection Products

Value Added Distributor Transforming Towards Pharmaceuticals

SOURCING

REGULATORY SUPPORT

QUALITY ASSURANCE

o Focus on niche products

o Consultative selling

o Highly skilled, technically trained sales force

o Partnership model

o Distribute >1,110 chemical compounds

o Global reach

o Int’l technical network

o Regional managers in US, Europe & Asia

Page 4: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

Mix Shifting Toward Human Health Oriented Businesses

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14%

39%

47%

FY 2010

31%

35%

34%

FY 2014

14%

41%

45%

FY 2010

42%

32%

26%

FY 2014

o 10% revenue CAGR

o Human Health growth boosted by acquisition of Pack Pharmaceuticals in April 2014.

o Blended gross margin expanded 280 bps from 19.7% to 22.5%

$510.2 Million

Net Sales

Gross Profit

$114.7 Million

$346.6 Million

$54.2 Million

Page 5: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Investment Highlights

Strategically positioned for growth through geographic expansion, new product offerings and bolt-on acquisitions

• Primary focus on pharmaceuticals and human health products

Rising Pharmaceuticals is a platform for higher margin finished dosage form generics

Scalable business model, SG&A leverage and improving product mix drives margin expansion

Asset-light business model generates strong free cash flow

Strong financial position supports growth initiatives

Experienced executive management team

Track record of 48 consecutive years of dividend payments, providing return to shareholders

Page 6: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Human Health

Product Groups • Finished dosage form generic drugs (Rising Pharmaceuticals)

• 60+ commercial products • 90+ pipeline products

• Nutritionals • Nutraceutical ingredients • Packaged dietary supplements

Growth Strategy • Expand pipeline of high margin finished dosage form generic

products

• Globalize and expand nutraceutical ingredients

Page 7: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Rising Pharmaceuticals

Platform for growth as developer and marketer with established generics brand

Strong brand recognition of “Rising” label among pharmacists and

pharmaceutical product buyers Long-standing commitment to quality, service, supply and integrity Strategically utilizes partnership model

Product development programs ANDA acquisitions Paragraph IV product partnerships Authorized generic marketer Licensing opportunities on late stage product assets

Page 8: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Rising – Drug Development Pipeline

92 Portfolio Projects

Approved / Pending Launch

24 Products

Product Development

Biostudies Underway

Filed with FDA

14 Products

52 ANDAs

2 ANDAs

Page 9: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Aging of Filed ANDAs

Page 10: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Value* of Filed ANDAs

*Value is based on total market, including brand & generic where applicable, using recent IMS sales data

Page 11: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Broad Based Nutritional Products Offered on Global Basis

Supply approximately 250 popular dietary supplements: • Fish Oil/Omega 3

• Glucosamine

• Chondroitin Sulfate

• Probiotics

• Vitamins

• Amino Acids

• Minerals

• Coenzyme Q10

52% 44%

4%

Fiscal 2014 Sales

United States EU

Asia

Page 12: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Human Health Customers (representative)

Page 13: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Pharmaceutical Ingredients

Product Groups • Pharmaceutical intermediates - chemicals used to make API’s • Active Pharmaceutical Ingredients (API’s) - bulk ingredients which

impart therapeutic value to the drug

Growth Strategy • Focus on niche, small/mid-size products with a limited number of

competitors • Serve as second source for branded drugs and generics

>100 New Opportunities in Pipeline

Page 14: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Pharmaceutical Ingredients Customers (representative)

Page 15: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Performance Chemicals

Product Groups • Specialty Chemicals - for coatings, inks, plastics, food, electronics,

agricultural intermediates & other industrial applications

• Agricultural Protection Products - fungicides, insecticides and sprout inhibitors

Growth Strategy • Specialty Chemicals

o Globalization of product offering

o New suppliers create new product opportunities

o New products for existing customers

• Agricultural Protection Products o Generic products subject to regulation & registration

o Partner with suppliers, customers or act as sole principal

Page 17: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Value Proposition to Customers

Core business competencies serve as sales and marketing drivers: • Sourcing • Regulatory Support • Quality Assurance

Highly skilled, technically trained sales force: • >280 employees worldwide; >1/2 technically trained • Well versed in science, regulations and in discussing chemistry

and/or performance characteristics to address customer needs

Function as virtual manufacturing company • Match customers with fully vetted suppliers

Relieves customer of logistical concerns; ensures that products meet regulatory requirements

Page 18: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Worldwide Presence

USA Corporate HQ New York

NETHERLANDS

FRANCE

GERMANY

CHINA

SINGAPORE

INDIA

JAPAN

UNITED KINGDOM

Page 19: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Global Sourcing

China: • Predominately source specialty

chemicals, agricultural protection products and intermediates

• 24 local professionals

India: • Predominately source active

ingredients and nutritionals

• 12 local professionals

North America: • Predominately source finished

dosage form generics

64%

14%

16%

6%

Fiscal 2014

Other

North America

Europe

Asia

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Support: Technical & Regulatory with emphasis on Quality Assurance

KEY differentiator between Aceto and commodity distribution companies International Technical Network with regional managers in U.S., Europe

and Asia

International Regulatory Support o Provides substantial global assistance as required

o Enables manufacturers to bring products to market in conformance with regulations that they might not otherwise be able to bring on their own

Worldwide Quality Assurance ensures that product quality meets both the customers’ specifications and intended use

Page 21: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Strong Financial Position Provides Financial Flexibility

Financial position at March 31, 2015: • Cash, cash equivalents and short-term investments of $35.5 million

• Bank debt of $107 million

• Working capital of $167 million

• Shareholders’ equity of $240 million

Strong cash flow affords an expected $0.24 per share annual dividend rate

Page 22: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

Strong Track Record of Growth

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$346.6

$412.4 $444.4

$499.7 $510.2

$0

$100

$200

$300

$400

$500

FY '10 FY '11 FY '12 FY '13 FY '14

CAGR 10%

Net Sales

$0.39 $0.47

$0.65

$0.89

$1.07

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

FY '10 FY '11 FY '12 FY '13 FY '14

CAGR 29%

EPS (non-GAAP) ($ in millions)

Page 23: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

Expanding EBITDA & EBITDA Margin (non-GAAP)

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0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

$0

$10

$20

$30

$40

$50

$60

$70

FY '10 FY '11 FY '12 FY '13 FY '14

EBITDA EBITDA Margins

EBITDA ($ in millions)

EBITDA Margin

Page 24: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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Investment Highlights

Strategically positioned for growth through geographic expansion, new product offerings and bolt-on acquisitions*

• Primary focus on pharmaceuticals and human health products

Rising Pharmaceuticals is a platform for higher margin finished dosage form generics

Scalable business model, SG&A leverage and improving product mix drives margin expansion

Asset-light business model generates strong free cash flow

Strong financial position supports growth initiatives

Experienced executive management team

Track record of 48 consecutive years of dividend payments, providing return to shareholders

*PACK Pharmaceuticals, LLC acquisition closed April 30, 2014

Page 25: ACETO Corporation Jefferies 2015 Global … Corporation Jefferies 2015 Global Healthcare Conference “Sourcing & Supplying Quality Products Worldwide” 2 This presentation contains

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For additional information please contact: Jody Burfening LHA Investor Relations 800 3rd Avenue, 17th Fl. New York, NY 10022 Tel: 212-838-3777 [email protected]

NASDAQ:ACET

“Sourcing & Supplying Quality Products Worldwide”

Global Leader in the Marketing and Distribution of Pharmaceutical Intermediates & Active Ingredients, Finished Dosage Form Generics, Nutraceutical Products, Agricultural

Protection Products, and Specialty Chemicals