FIRST QUARTER REPORT PRESENTATIONThomas Eldered, CEO

Tobias Hägglöv, CFO

3

FIRST QUARTER EVER WITH SALES SEK 1.8+ BNBENEFITTING FROM GLOBAL REACH AND COMPETITIVE VALUE PROPOSITION

• Net sales of SEK 1,812 m, total increase 20%

• EBITDA SEK 291 m (250)

• EBITDA margin 16.1% (16.5)

• Cash flow after working capital changes SEK 218 m (47)

• Return on equity 4.1% (2.5)

• EPS SEK 1.17 (0.70)

16.1%EBITDA margin

291MSEK EBITDA

20%Sales increase

1.5

1.8

Q1 Q2 Q3 Q4 Q1 19

Net salesSEK bn

250

291

Q1 Q2 Q3 Q4 Q1 19

EBITDASEK m

+20% +17%

SALES +42%

STERILES & INHALATION: good demand for inhalation products and continued ramp-up in recently expanded capacities. Planned shutdownand temporary technical and supply issues still had impact butimproving.Organic net sales growth flat

SOLIDS & OTHERS: good demand from new solids contracts. Softer demand for certain semi-solids and oral betalactams. Several additional new projects in tech-transfer. Organic net sales growth +5%

SALES +8%

DEVELOPMENT & TECHNOLOGY performing well. Exceptional API business and increased efficiency in global development business. Royalty income decreased and own product rights suffered from short supply of products, partly offset by improved distribution and increased prices. Organic net sales growth +4%

SALES +8%

7

SERIALISATION FROM RECIPHARM

• Total capex MEUR 35, finalised in Q1

• All 15 manufacturing sites operational

• Implemented for EU from February 2019

8

ITALY -3%

Brescia

Lainate

Masate

Paderno Dugnano

PORTUGAL +18%

Odivelas

Queluz

SPAIN +64%

Leganés

Parets

STABLE TOTAL REVENUES ON HIGH LEVEL IN THE QUARTERSALES GROWTH EXCLUDING ACQUISITIONS

USA +180%

Research Triangle Park

SWEDEN -12%

Stockholm

Höganäs

Karlskoga

Solna

Strängnäs

Uppsala

EUROPE

UK -57%

Ashton

GERMANY +7%

Wasserburg

FRANCE +5%

Fontaine

Kaysersberg

Monts

Pessac

ISRAEL +61%

Ness Ziona

INDIA +14%

BengaluruKarnal & Paonta Sahib

Manufacturing services Development services

[Holmes Chapel ]

FINANCIALSTobias Hägglöv(currency SEK million)

10

P&L DEVELOPMENT

*) Defined as Operating Cash Flow, including working capital changes and maintenance investments

Q1 2019 Q1 2018 2018 FY

Net sales 1,812 1,513 6,374

Organic 2% 9% 12%

Acquired 14% 2% 4%

Currency 4% 3% 4%

EBITDA 291 250 987

EBITDA margin 16.1% 16.5% 15.5%

Free Cash flow*) 168 -16 63

Earnings per share 1.17 0.70 2.43

IFRS 16 effect EBITDA 23

IFRS 16 effect EBITDA margin 1.2%-pts

11

IFRS 16 IMPACT

mSEK Q1 2019

Financial net debt +295

EBITDA, Group +23

Steriles & Inhalation +4

Solids & Others +6

Development & Technology +4

Discontinued operations +7

Other +1

Depreciation, Group -21

EBIT, Group +2

12

EBITDA BRIDGE Q1 Y-O-Y

MSEK

250

+35 -19 +32-1 -6

291

0

50

100

150

200

250

300

350

EBITDA Q1 2018 Steriles &

Inhalation

Solids & Others Development &

Technology

Discontinued

operations

Other EBITDA Q1 2019

13

MANUFACTURING SERVICES – STERILES & INHALATION

EBITDA BRIDGE, JANUARY – MARCH

SALES BRIDGE, JANUARY – MARCH

SEK million EBITDA

2018 111

Currency 4

Acquisitions 49

Accounting standards (IFRS 16) 4

Organic -22

Total 35

2019 146

Sales, MSEK Sales, %

2018 564

Currency 24 4

Acquisitions 216 38

Organic -1 0

Total 239 42

2019 803400

450

500

550

600

650

700

750

800

850

Q1 2018 Currency Acquisitions Organic

growth

Q1 2019

0

20

40

60

80

100

120

140

160

180

14

MANUFACTURING SERVICES – SOLIDS & OTHERS

SALES BRIDGE, JANUARY – MARCH

EBITDA BRIDGE, JANUARY – MARCH

Sales, MSEK Sales, %

2018 642

Currency 20 3

Acquisitions - -

Organic 29 5

Total 49 8

2019 692

SEK million EBITDA

2018 109

Currency 4

Acquisitions -

Accounting standards (IFRS 16) 6

Organic -29

Total -19

2019 90

400

450

500

550

600

650

700

750

Q1 2018 Currency Organic growth Q1 2019

0

20

40

60

80

100

120

140

Q1 2018 Currency IFRS - 16 Organic Q1 2019

15

DEVELOPMENT & TECHNOLOGY

SALES BRIDGE, JANUARY – MARCH

EBITDA BRIDGE, JANUARY – MARCH

Sales, MSEK Sales, %

2018 257

Currency 10 4

Acquisitions - -

Organic 11 4

Total 21 8

2019 278

SEK million EBITDA

2018 53

Currency 3

Acquisitions -

Accounting standards (IFRS 16) 4

Organic 26

Total 33

2019 86

0

50

100

150

200

250

300

Q1 2018 Currency Organic growth Q1 2019

0

10

20

30

40

50

60

70

80

90

100

Q1 2018 Currency IFRS - 16 Organic Q1 2019

16

Q1 CASH FLOW

mSEK Q1 2019 Q1 2018 2018 FY

Operating Cash Flow 218 184 648

Total NWC changes 0 -137 -284

Maintenance capex & other -50 -64 -301

Free cash flow 168 -16 63

Expansion capex -14 -35 -161

Business combinations - -307 -754

Divestments - - 78

Cash flow after investing activities 154 -358 -774

Net Debt/EBITDA 3.9 4.7 3.8

IFRS 16 effect Net Debt/EBITDA 0.2

CONCLUDING REMARKSThomas ElderedCEO

18

WELL ON TRACK TO REACH OUR TARGETS

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

2013 2014 2015 2016 2017 2018 LTM Q1

+20%

2.1bn+21%

+32%

+38%

8.0bn

Financial targets

At least SEK 8bn sales by 2020

EBITDA margin at least 16%

Net debt to equity ratio less than 0.8

Status

▪ 16.1%1 Q1

▪ 15.4%2 LTM Q1

✓ 0.71 Q1

▪ +20% Q1

▪ +21% LTM Q1

Dividend 30-50% of net profit

+14%

✓ SEK 1.25 proposal

Note 1. Including IFRS 16 effectNote 2. EBITDA-margin continuing operations was 17.0%

19

SUMMARY – WELL ON TRACK TOWARDS OUR TARGETSBENEFITTING FROM GLOBAL REACH AND COMPETITIVE VALUE PROPOSITION

• Well invested in attractive, high demand areas

• Sales growth 20%

• Organic growth in continuing operations 3%

• Strong cash flow and reduced capex

• Improved ROCE and ROE

• EPS +67%

• Promising project pipe-line

16.1%EBITDA margin

291MSEK EBITDA

20%Sales increase

1.5

1.8

Q1 Q2 Q3 Q4 Q1 19

Net salesSEK bn

250

291

Q1 Q2 Q3 Q4 Q1 19

EBITDASEK m

+20% +17%

Q&A

21

CONTACT INFORMATION

Thomas Eldered

CEO & Managing Director

+46 (0)8 602 52 00

Tobias Hägglöv

CFO & EVP

+46 (0)8 602 52 00, ir@recipharm.com