FOURTH QUARTER REPORT PRESENTATION THOMAS ELDERED CEO

3

FOURTH QUARTER 2017

• Positive ending of an eventful year • Good recovery in current business • Strong performance in D&T • All the major projects now on track • Still impact from expansion projects and material shortage • Material non-recurring cost provision related to Swedish closures • New Spanish site taken over and integration ongoing

• Financial highlights • Flat sales YoY • EBITDA margin 16.1% (17.2) • Operating cash flow at 74 MSEK

• Events after closing • Acquisition of 26% minority in Indian Nitin Lifesciences Ltd • Board will propose no dividend to the AGM

6%

16%

6%

16%

5%

-3% -1% 0%

Q12016

Q2 Q3 Q4 Q12017

Q2 Q3 Q4

Quarter sales YoY growth

Adjusted for Fx and acquisitions

-60

139

180

83

-25

154 149

74

Q12016

Q2 Q3 Q4 Q12017

Q2 Q3 Q4

Operating cash flow (MSEK)

4

ONGOING SIGNIFICANT CAPEX PROJECTS UPDATE

1

4

3

2

Lyophilisation and packaging capacity expansion in Wasserburg, Germany

Blow-fill-seal capacity expansion in Kaysersberg, France

Lyophilisation capacity expansion in Masate, Italy

Serialisation technology, globally

Q4

Q1 2018

Q2 Q3 Q4 Q1 2019

Q2

Capex Start-up Commercial

FINANCIALS Henrik Stenqvist (currency SEK million)

6

Q4 P&L DEVELOPMENT (EXCL. NON RECURRING ITEMS)

Q4 2017 Q4 2016

Net sales 1,403 1,333

EBITDA 226 229

EBITDA margin 16.1 17.2

D&A -145 -108

EBIT 80 122

Financial Items -15 -25

Profit before Tax 65 96

Tax -9 -20

Net profit 57 76

7

EARNINGS EXCLUDING NON RECURRING ITEMS – Q4 2017

SEK million 2017 Non-recurring items

2017 excluding non- recurring

items Operating income Net sales 1,403 - 1,403 Other operating revenue 62 - 62 1,465 - 1,465 Operating expenses Raw materials and consumables -401 -19 -382 Other external costs -425 -100 -325 Employee benefits expense -597 -86 -511 Depreciation and amortisation -180 -35 -145 Other operating expenses -25 - -25 Share of result in participations 3 - 3 -1,625 -240 -1,385 Operating profit -160 -240 80 Interest income and similar revenues 17 - 17 Interest expenses and similar costs -32 - -32 Net financial income/expense -15 -15 Profit before tax -174 -240 65 Income tax -9 - -9 Profit for the period -183 -240 57

EBITDA 21 -205 226

Restructuring costs 141 msek

Onerous contracts 64 msek

Total EBITDA impact 205 msek

Fixed asset impairment 35 msek

Total Provision 240 msek

8

MANUFACTURING SERVICES – STERILE LIQUIDS

EBITDA BRIDGE, OCTOBER – DECEMBER

SALES BRIDGE, OCTOBER – DECEMBER

SEK million EBITDA

2016 125

Currency 0

Acquisitions 0

Other -4

Total -4

2017 121

Sales, MSEK Sales, % 2016 548

Currency -2 -0.4

Acquisitions 0 0.0

Organic 0 0.0

Total -2 -0.4 2017 546

400

420

440

460

480

500

520

540

560

Q4 2016 Currency Organic growth Q4 2017

0

20

40

60

80

100

120

140

Q4 2016 Currency Other Q4 2017

9

MANUFACTURING SERVICES – SOLIDS & OTHERS

SALES BRIDGE, OCTOBER – DECEMBER

EBITDA BRIDGE, OCTOBER – DECEMBER

Sales, MSEK Sales, % 2016 634 Currency 0 0.1

Acquisitions 73 11.5 Organic -33 -5.4 Total 40 6.2 2017 674

SEK million EBITDA

2016 97

Currency 0

Acquisitions 13

Other -34

Total -21

2017 75

400

450

500

550

600

650

700

750

Q4 2016 Currency Acquisitions Organic growth Q4 2017

0

20

40

60

80

100

120

Q4 2016 Currency Acquisitions Other Q4 2017

10

DEVELOPMENT & TECHNOLOGY

SALES BRIDGE, OCTOBER– DECEMBER

EBITDA BRIDGE, OCTOBER–DECEMBER

Sales, MSEK Sales, % 2016 185 Currency -1 -0.5

Acquisitions 11 6.2

Organic 27 14.7 Total 37 20.4 2017 222

SEK million EBITDA 2016 32

Currency 1

Acquisitions 0

Organic 23

Total 24

2017 56

0

50

100

150

200

250

300

Q4 2016 Currency Acquisitions Organic growth Q4 2017

0

10

20

30

40

50

60

Q4 2016 Currency Organic growth Q4 2017

11

EBITDA BRIDGE VS Q4 2016

0

50

100

150

200

250

Q4 2016 Sterile Liquids Solids & Others Development &Technology

Other Q4 2017

EBITDA 229msek

EBITDA 226msek

4 msek 22 msek 24 msek 1 msek

12

CASH FLOW BY QUARTER

mSEK Q1-17 Q2-17 Q3-17 Q4-17 2017

Operating Cash Flow 81 192 3 180 456

Total nwc changes -106 -38 146 -106 -104

Operating cash flow after w.c. -25 154 149 74 352

Maintenance capex -65 -70 -68 -110 -312

Free cash flow -89 84 81 -36 40

Expansion capex -971 -128 -86 -89 -1,274

Cash flow after investing activities -1,060 -44 -4 -125 -1,234

THOMAS ELDERED CEO

14

5,000 We have approximately

5,000 employees

SEK 5.3bn

Turnover (EUR 530m)

500 More than 500 products in 2,700+ presentations

100 Supplying 100+ markets

Public company - listed on Nasdaq Stockholm since 2014

20+ facilities in Europe, USA and

India

BECOMING A LEADING CDMO ON THE GLOBAL ARENA

15

EXECUTING ON OUR FOCUSED STRATEGY

On track to reach our financial targets Sales target of at least SEK 8 bn by 2020 At least 16% EBITDA margin

• Q4: ”Showing that we are on the right track”

• Commercial supply from all three major expansion projects ‒ All during 2018

• Manufacturing network optimization and streamlining ‒ End of operations two Swedish sites

• Important contract wins ‒ Roche from Leganés, full year 2018

• Catch-up in Bengaluru, India ‒ Implementation of existing and new contracts

• Optimised development offering

16

CONTACT INFORMATION

Thomas Eldered

CEO & Managing Director

+46 (0)8 602 52 00

Henrik Stenqvist

CFO & EVP

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