Presentation of Semi-Annual Results 2012/13Annual Results ......Outlook 5. Questions and answers 3...

Presentation ofSemi Annual Results 2012/13Semi-Annual Results 2012/13

Burgdorf, 1st November 2012

Important Notice

The information contained in this document has not been independently verified and noThe information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of Ypsomed Holding AG, its advisors or representatives, or their respective p g p paffiliates shall have any liability whatsoever for any loss whatsoever arising from any use of this document, or its content, or otherwise arising in connection with this document. This document does not constitute, or form part of, an offer to sell or a solicitation of an offer to purchase any shares and neither it nor any part of it shall form the basis of or be relied upon in connectionshares and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This document contains forward-looking statements which involve risks and uncertainties. These statements may be identified by such words as “may“ “plans” “expects” “believes” andThese statements may be identified by such words as may , plans , expects , believes and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. No obligation is assumed to update any forward-looking statements.

| Ypsomed Holding AG | Presentation of Semi-Annual Results 2012/132

Agenda

1 Introduction1. Introduction2. Finances3. Operating activities4. Outlook5. Questions and answers


The first half of the 2012/13 business year at a glance (1/2)

Sales and EBIT have been dominated by the discontinuation of the OptiSet® and Sales and EBIT have been dominated by the discontinuation of the OptiSet® and OptiPen® Pro for Sanofi. It was not possible to fully offset the year-on-year decline in sales of these products, which amounted to some CHF 14.0 million.I th Di b t Di t b i th l th f 75% j d b th In the Diabetes Direct business, the sales growth of over 75% enjoyed by the mylife™ OmniPod® is very pleasing. Sales for the whole segment are up some CHF 6.0 million (16%).Y d’ Y b idi hi h f h i l i i Ypsomed’s Ypsotec subsidiary, which manufactures mechanical precision parts, posted an operating loss of some CHF 0.8 million, thus adversely affecting the “Others” segment result.

Thanks to rigorous cost management, Ypsomed is turning a profit, generating EBIT of CHF 2.4 million (previous year: CHF 3.0 million).


The first half of the 2012/13 business year at a glance (2/2)

Ypsomed invested a total of CHF 8 1 million in fixed assets with a large proportion Ypsomed invested a total of CHF 8.1 million in fixed assets, with a large proportion of these investments being made in expanding pen needle production facilities in Switzerland.O ll Y d t CHF 10 2 illi R&D I ti i d l i Overall, Ypsomed spent CHF 10.2 million on R&D. Investing in developing proprietary products has a long-term focus and lays the foundations for the future success of the Ypsomed Group.M j h h ld Will Mi h l h d d hi i b f h h Major shareholder Willy Michel has extended his commitment by a further three years (until March 2017) as he firmly believes in Ypsomed’s strategy and future prospects.

The shareholders approved the authorized capital increase in June. Ypsomed is continuing to investigate a range of synergy-boosting investment opportunities but has yet to reach any concrete decisions.


Key figures

I illi CHF 1st HY 2012/13 1st HY 2011/12 D lt i %In million CHF 1st HY 2012/13 1st HY 2011/12 Delta in %Sales of goods and services 119.7 122.8 -2.5%thereof Delivery Devices 69.1 77.7 -11.1%thereof Diabetes Direct Business 42 7 36 8 15 9%thereof Diabetes Direct Business 42.7 36.8 15.9%thereof Other 7.9 8.3 -4.2%Gross profit 27.4 28.5 -4.0%Gross profit in % 22 8% 23 2%Gross profit in % 22.8% 23.2%Operating profit 2.4 3.0 -18.5%Operating profit in % 2.0% 2.4%Net profit 2 0 7 6 73 1%Net profit 2.0 7.6 -73.1%Net profit in % 1.7% 6.2%

Research and development expenditures, total 10.2 12.7 -19.4%Investments in fixed assets 8.1 3.5 133.0%Equity ratio in % 63.6% 66.6%Employee headcount (per 30.09.) 1'020 1'070 -4.7%


Developments in the Diabetes Care segment

The mylife™ OmniPod® enjoyed sales growth of over 75% in the period under The mylife OmniPod® enjoyed sales growth of over 75% in the period under review. The second generation of the product will be launched in the UK, the Netherlands, Germany, Switzerland and Austria by the end of 2012. Sales also commenced in Norway and Sweden following a long licensing processcommenced in Norway and Sweden following a long licensing process.

The new mylife™ Unio® blood glucose monitoring system was presented at the leading European Diabetes Congress (EASD) in Berlin and will be launched in early 20132013.

The market launch for mylife™ DailyDose™ has begun. This unique supplementary product for diabetics taking insulin is proving very popular.

Production of mylife™ Orbit® infusion sets was transferred as planned in the first half of the 2012/13 business year. The sets are now produced in the OmniGroup’s factories in Queretaro, Mexico.

Work to develop Ypsomed’s own insulin pump remains on track, with the launch planned for 2014.


Developments in the Delivery Systems segment

The award winning ServoPen® is turning into a real star of the YDS Custom The award-winning ServoPen® is turning into a real star of the YDS Custom Products range. Two new customers in Asia have been acquired for this high-quality reusable insulin pen.Y d h b f i j ti t j t i th i li d i Ypsomed has a number of injection system projects in the pipeline and is very confident that they will come to fruition thanks to the company’s own excellent platforms.


Agenda



The fall in sales is primarily due to OptiSet®

manufacturing being discontinuedI illi CHF 2012/13 2011/12 Δ i %In million CHF 2012/13 2011/12 Δ in %Delivery Devices 69.1 77.7 -11.1%Diabetes Direct Business 42.7 36.8 15.9%Other 7 9 8 3 4 2%Other 7.9 8.3 -4.2%Sales of goods and services 119.7 122.8 -2.5%

The Delivery Devices segment comprises the product groups pen systems penThe Delivery Devices segment comprises the product groups pen systems, pen needles and other injection moulds produced by Ypsomed.

The Diabetes Direct Business segment covers the direct trade in a range of diabetes products including sales of mylife™ Pura® blood glucose monitoringdiabetes products, including sales of mylife Pura blood glucose monitoring systems, mylife™ Roto™ infusion sets and mylife™ OmniPod® insulin patch pumps.

Other contains the precision-turned parts business segment and currently unused real estate for operational purposesreal estate for operational purposes.


Rigorous cost management safeguards profitability

I illi CHF 2012/13 i % 2011/12 i %In million CHF 2012/13 in % 2011/12 in %Sales of goods and services 119.7 100.0% 122.8 100.0%Cost of goods and services sold -92.4 -77.2% -94.4 -76.8%Gross profit 27 4 22 8% 28 5 23 2%Gross profit 27.4 22.8% 28.5 23.2%Marketing and sales expenses -19.4 -16.2% -19.9 -16.2%Administration expenses -6.4 -5.3% -6.5 -5.3%Other operating income 2.0 1.6% 1.7 1.4%Other operating expenses -1.1 -0.9% -0.9 -0.7%Operating profit 2.4 2.0% 3.0 2.4%

® ® The move to discontinue production of the successful OptiSet® and OptiPen® Pro has affected the gross profit margin.

New products have not yet managed to fully offset the difference.p y g y Continued rigorous cost management, new products and projects will help improve

the gross profit margin in the second half of the year.


Overview of EBIT by segment

I illi CHF 2012/13 2011/12 Δ i %In million CHF 2012/13 2011/12 Δ in %Delivery Devices 5.7 8.7 -34.4%Diabetes Direct Business -2.5 -5.8 56.9%Other -0 8 0 1 -Other 0.8 0.1Operating profit 2.4 3.0 -18.5%

With sales growth in excess of 75%, the mylife™ OmniPod® made a keyWith sales growth in excess of 75%, the mylife OmniPod made a key contribution to offsetting losses in the Diabetes Direct business.

Ypsotec, which manufactures mechanical precision parts, faced significant pressure on its margins in the period under review and posted a loss of CHF 0 8 millionon its margins in the period under review and posted a loss of CHF 0.8 million.


EBITDA margin slightly below previous year’s figure

I illi CHF 2012/13 i % 2011/12 i % Δ i %In million CHF 2012/13 in % 2011/12 in % Δ in %Operating profit 2.4 2.0% 3.0 2.4% -0.4%Depreciation of fixed assets 9.7 8.1% 9.5 7.8% 0.3%Amortisation of intangible assets 2 6 2 1% 3 4 2 8% -0 7%Amortisation of intangible assets 2.6 2.1% 3.4 2.8% 0.7%EBITDA 14.7 12.3% 15.9 12.9% -0.6%


Neutral financial result in the first half of the 2012/13business year

I illi CHF 2012/13 i % 2011/12 i % Δ i %In million CHF 2012/13 in % 2011/12 in % Δ in %Operating profit 2.4 2.0% 3.0 2.4% -0.4%Financial income 1.0 0.8% 7.7 6.2% -5.4%Financial expenses -1 0 -0 8% -2 1 -1 7% 0 9%Financial expenses 1.0 0.8% 2.1 1.7% 0.9%Profit before income taxes 2.4 2.0% 8.6 7.0% -5.0%Income taxes -0.4 -0.3% -1.0 -0.8% 0.5%

Net profit 2.0 1.7% 7.6 6.2% -4.5%Earnings per share (basic and diluted) in CHF 0.16 0.60

Financial income in the previous year included CHF 5.1 million in profits from the sale of non-current financial assets.


Robust and streamlined balance-sheet structure

I illi CHF 30 09 2012 i % 31 03 2012 i %In million CHF 30.09.2012 in % 31.03.2012 in %AssetsCash and cash equivalents 13.3 3.9% 9.7 3.0%Trade receivables 30 6 8 9% 24 5 7 5%Trade receivables 30.6 8.9% 24.5 7.5%Other current assets 4.2 1.2% 6.1 1.9%Prepayments and accrued income 4.0 1.2% 3.7 1.1%Current income taxes 0.1 0.0% 0.1 0.0%Inventories 55.6 16.3% 50.1 15.3%Customer machinery 0.6 0.2% 0.2 0.1%Total current assets 108.5 31.7% 94.6 28.9%Fi i l t 9 4 2 7% 9 1 2 8%Financial assets 9.4 2.7% 9.1 2.8%Deferred income tax assets 7.5 2.2% 7.1 2.2%Fixed assets 164.3 48.0% 166.4 50.8%Intangible assets 52 4 15 3% 50.2 15.3%Intangible assets 52.4 15.3% 50.2 15.3%Total non-current assets 233.6 68.3% 232.7 71.1%Total assets 342.1 100.0% 327.3 100.0%


Equity ratio at 63.6%

I illi CHF 30 09 2012 i % 31 03 2012 i %In million CHF 30.09.2012 in % 31.03.2012 in %Liabilities and equityFinancial liabilities 61.0 17.8% 46.5 14.2%Current financial liabilities to major shareholder 5 0 1 5% 10.0 3.1%Current financial liabilities to major shareholder 5.0 1.5% 10.0 3.1%Trade payables 18.6 5.4% 13.5 4.1%Prepayments from customers 1.1 0.3% 2.3 0.7%Current income tax payable 2.0 0.6% 2.2 0.7%Other payables 2 4 0 7% 2 5 0 8%Other payables 2.4 0.7% 2.5 0.8%Accrued liabilities and deferred income 14.8 4.3% 12.7 3.9%Provisions 0.7 0.2% 1.3 0.4%Total current liabilities 105.7 30.9% 90.9 27.8%Non-current liabilities to major shareholder 15.0 4.4% 14.5 4.4%Other non-current financial liabilities 2.0 0.6% 2.3 0.7%Provisions 1.2 0.3% 1.0 0.3%Deferred income tax liabilities 0 5 0 2% 0 6 0 2%Deferred income tax liabilities 0.5 0.2% 0.6 0.2%Total non-current liabilities 18.7 5.5% 18.4 5.6%Total equity 217.7 63.6% 218.0 66.6%Total liabilities and equity 342.1 100.0% 327.3 100.0%


Ypsomed investing in Switzerland

I illi CHF 2012/13 2011/12In million CHF 2012/13 2011/12Cashflow from operating activities 8.8 20.0Purchases of financial assets -0.3 -0.6Disposal of financial assets - 11.1pPurchases of fixed assets -8.1 -3.5Disposal of fixed assets 0.3 0.1Purchases of intangible assets -4.7 -4.5Final payment acquisition 0 4Final payment acquisition - -0.4Cashflow from investing activities -12.8 2.3Repayment of financial liabilities to major shareholder -4.5 -10.0Proceeds from borrowings 14.5 5.0Cost due to approved increase in share capital -0.0 -Distribution of capital reserves -2.5 -2.5Purchase of treasury shares - -0.4Cashflow from financing activities 7.5 -7.9Cashflow from financing activities 7.5 7.9Effect of foreign currency translation 0.1 -0.1Total Cashflow 3.5 14.2


Agenda



The “YDS Delivery Systems” umbrella brand creates clarity and has been well received by the industry


More confidence.

MMore success.

With Ypsomed Delivery Systems.

Customproducts

Contractdevelopment

Contractmanufacturing

Drug & deviceassembly

More information on www.ypsomed.com/yds

Ypsomed AG // Brunnmattstrasse 6 // 3401 BurgdorfT +41 34 424 41 11 // F +41 34 424 41 22 // www.ypsomed.com/yds

“Big Pharma” sees strong growth, particularly in Asia and Latin America


Large number of biosimilars in developing countries1 –many of which will require a pen

Source: Datamonitor, October 20121 Developing countries = not the EU, not the US, not Japan


ServoPen® – more customers using the same platform


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YpsoPen® Twist – in industrialization phase - the first deliveries planned for the second quarter of 2013


Sanofi pens – OptiSet®, OptiPen® Pro and components for Solostar®


First three autoinjector projects secured thanks to YpsoMate™ – additional autoinjector versions now availableavailable


Diabetes Care – our direct business


More Freedom.

M C fidMore Confidence.

With mylife™.

Blood glucose monitoring systems

Pen needles and safety pen needles

Infusion systems Accessories and services

More information at www.mylife-diabetescare.comMore information at www.mylife diabetescare.com

Ypsomed AG // Brunnmattstrasse 6 // 3401 Burgdorf // SwitzerlandT +41 34 424 41 11 // F +41 34 424 41 22 // www.ypsomed.com

Proportion of overweight individualsin the adult population

Source: UBS / Chart: FuW, si


29

Standing out from the competition as a “full-range supplier” with an excellent knowledge of the market

Diabetes is spreading rapidly (the WHO predicts there will be some 440 million Diabetes is spreading rapidly (the WHO predicts there will be some 440 million diabetics by 2030) – making it a market worth billions and with high potential for growth.O th th h d h lth t i j ti ith di b t i i On the other hand, healthcare costs in conjunction with diabetes are increasing, putting pressure on suppliers’ costs.

As a comprehensive provider of products to treat diabetes, Ypsomed has a wide f i i i hi d i h i diff d d irange of opportunities in this regard with various different product and price

strategies. The key to success in this area of business is a knowledge of individual healthcare y g

markets. Ypsomed has a global network of subsidiaries and distributors as well as the necessary expertise.


Pen needles – mylife™ Clickfine® 4 mm (32G)

At the EASD Congress Ypsomed unveiled the thinnest most precise Ypsomed At the EASD Congress, Ypsomed unveiled the thinnest, most precise Ypsomed needle yet: 32G corresponds to a diameter of 0.23 mm (standard pen needles have a diameter of 31G - 29G, or 0.25 - 0.33 mm).Y d h d d i i i j US b d t h ill b i Ypsomed has succeeded in winning a major US-based customer, who will begin marketing Clickfine pen needles under its own brand in the first half of 2013.


Blood glucose monitoring – new mylife™ Unio™

The target group includes Type 1 The target group includes Type 1 diabetics and, generally, people who monitor their blood glucose very frequentlyfrequently.

The next generation of blood glucose monitoring systems based on customer surveys and focus groupssurveys and focus groups.

The new blood glucose monitoring system appeals thanks to its user-f i dlifriendliness.

New standards being set in terms of accurate measurements.


Infusion systems – the next-generation mylife™

OmniPod® receives CE accreditation!


Infusion systems – the new mylife™ OmniPod® is now much smaller and more lightweight

35% smaller 35% smaller 16% thinner 25% lighter – only 25 grams!


Infusion systems – Ypsomed’s “Lanzi” pump project is on track for market launch in the second half of 2014

Ypsomed’s insulin pump stands out thanks to its compact size ease of operation Ypsomed s insulin pump stands out thanks to its compact size, ease of operation and the use of pre-filled ampules


Infusion systems – “Lanzi” can be priced more competitively, which will expand its market


Infusion systems – mylife™ Orbit® as a generic infusion set and an infusion set for “Lanzi”


New mylife™ DailyDose™ micro-syringe

The self injection system in credit The self-injection system in credit card format consists of three small syringes that are pre-filled with the daily insulin requirementdaily insulin requirement.

Ypsomed currently distributes mylife™ DailyDose™ in Switzerland, Germany the UK Norway AustriaGermany, the UK, Norway, Austria and the Netherlands.


Agenda



Outlook for the 2012/13 business year

Despite a slight dip in sales we are expecting to match last year’s operating profit inDespite a slight dip in sales, we are expecting to match last year s operating profit in the 2012/13 business year.

|40 Ypsomed Holding AG | Presentation of Semi-Annual Results 2012/13

Key dates

Presentation of the annual results for 2012/13 May 28 2013 Presentation of the annual results for 2012/13 May 28, 2013

2013 General Meeting of Shareholders June 26, 2013

|41 Ypsomed Holding AG | Presentation of Semi-Annual Results 2012/13

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