Ypsomed (YPSN) Investor Update summary

Strategic divestment and business transformation

• Agreement to sell Diabetes Care business to TecMed AG for up to CHF 420 million, including an earn-out, with closing expected in H2 2025 pending regulatory approvals.

• Sale includes Ypsomed Diabetes Care AG, subsidiaries, patch pump development, and related rights, and is part of a four-year transformation to become a pure-play injection system specialist.

• TecMed, owned by Willy Michel, was selected after a structured auction process, with an independent appraisal confirming the fairness of the CHF 420 million price.

• Majority of proceeds (75%+) will be used to expand the core delivery system business, with no special dividend planned.

• Rothschild & Co and Walder Wyss advised Ypsomed; IFBC provided a fairness opinion.

Transaction structure and financial implications

• Purchase price includes an earn-out of less than CHF 100 million, tied solely to future sales over a period not exceeding three years.

• Ypsomed will continue contract manufacturing for TecMed for infusion sets and pump parts for three to five years, generating up to CHF 40 million in revenue.

• Proceeds from the sale (~CHF 300 million in cash) will fully fund near-term CapEx, with no need for additional equity and only potential for future debt.

• Core business EBIT margins are historically above 30%, with strong profitability expected to continue.

• Proceeds will fund expansion of Ypsomed's injection system business, focusing on subcutaneous self-injection solutions.

Operational and regional impact

• About 200 employees will transfer from Solothurn to Burgdorf, with new office space acquired by TecMed.

• The combined diabetes care business under TecMed will be headquartered in Burgdorf, with about 300 employees.

• Solothurn site will be expanded for manufacturing and logistics, with significant investments planned, including new production halls, a tool shop, and a conference centre.

• Burgdorf will see an influx of over 300 employees, strengthening the local footprint and benefiting the region.

• Ypsomed’s headquarters will remain in Burgdorf, with only a small team relocating to TecMed.