Gedeon Richter (RICHTER) Investor Presentation summary

Company overview and strategic vision

• Over 120 years of history, with ~11,800 employees, 8 manufacturing sites, and 41 commercial/marketing companies; listed on Budapest Stock Exchange with ~73% free float and EUR 2.2bn sales revenue in 2024 across four business units.

• Vision for 2035 focuses on global recognition, pharma-only operations, innovation, affordability, and doubling non-royalty business by the 2030s, with a special focus on women and mental health.

• Strategy emphasizes growth, scale, diversity, and cost efficiency, with a commitment to diverse and inclusive teams.

Business segments and growth drivers

• Four main business units: Women's Healthcare (WHC), Neuropsychiatry/CNS, Biotechnology (BIO), and General Medicines (GM), each with targeted growth and innovation strategies.

• WHC aims to double revenue and R&D investment by 2035, expand in the US and Western Europe, and launch novel therapies in gynecological infections, PCOS, and oncology.

• CNS segment leverages blockbuster Cariprazine (Vraylar®), with global reach and a robust pipeline to manage loss of exclusivity post-2029.

• Biotech targets double-digit growth, break-even by 2027, and launches of 8 biosimilars, focusing on immunology and musculoskeletal areas.

• GenMed seeks to double revenue by 2035, improve portfolio freshness, and expand in Western Europe, focusing on cardiovascular, CNS, blood therapies, and diabetes/obesity.

Financial performance and outlook

• Q1 2025 pharma revenues grew 6% YoY (ex-FX), with clean EBIT up 4% and net profit stable at HUF 68bn; free cash flow increased 14% YoY to HUF 60bn.

• Ex-CNS revenues projected to more than double by 2035, with pharma revenues expected to reach EUR 3.2–3.5bn and clean EBIT margin to exceed 20% by 2030–31.

• Capital allocation prioritizes R&D (30–35% of pre-R&D cash), with reduced capex/NWC, ongoing external innovation, and a minimum EUR 200mn annual dividend commitment through 2035.

• Dividend payout ratio set at 30–50% of adjusted net income, with upside potential and avoidance of excess cash accumulation.