Year-end Report, January-December 2014

January-December 2014[1]

  · Net sales reached SEK 15,352 million (13,114), corresponding to an increase
of 12% at fixed exchange rates compared to previous year.
  · EBITDA, excluding non-recurring effects, was SEK 4,700 million (3,734),
yielding a 30.6% margin (28.5).
  · Non-recurring effects had a SEK 950 million impact on earnings before tax.
  · Profit after tax amounted to SEK 402 million (805).
  · Earnings per share reached SEK[2]1.23 (2.57). Excluding non-recurring
effects, earnings per share totaled SEK 3.64 (2.57).
  · Cash earnings per share amounted to SEK[2] 8.97 (8.57). Excluding non
-recurring effects cash earnings increased by 8% to SEK 9.28 (8.57).
  · Proposed dividend per share: SEK 2,50 (2.50).

Fourth quarter 2014[1]

  · Consolidated net sales reached SEK 5,154 million (3,450), corresponding to
an increase of 41% at fixed exchange rates compared to previous year.
  · EBITDA, excluding non-recurring effects, was SEK 1,754 million (1,015),
yielding a 34.0% margin (29.4).
  · Non-recurring effects had a SEK 960 million impact on earnings before tax.
  · Profit/loss after tax amounted to SEK -275 million (258).
  · Earnings per share reached SEK[2]-0.93 (0.81). Excluding non-recurring
effects, earnings per share totaled SEK 1.46 (0.81).
  · Cash earnings per share reached to SEK[2] 2.86 (2.32). Excl non-recurring
effects cash earnings per share rose by 32% to SEK 3.07 (2.32).

[1]      For information about non-recurring effects, see page 7
[2]      Recalculated to consider the bonus issue element in the 2014 new share
issue

Webcasted presentation of the report on February 11 at 10:30 a.m. The
presentation can be accessed at www.meda.se/sv/investerare, where a recorded
version will also be available until the next interim report.
For further inquiries, please contact:
Paula Treutiger, VP Corporate Communications & Sustainability,
paula.treutiger@meda.se, +46 733-666 599.

CEO statement

2014 was an exciting year for Meda. In October we completed the acquisition of
Rottapharm, our largest acquisition to date and an important milestone. It is a
transformational acquisition that propels us to a leading position in European
specialty pharma by increasing our scale, reach and profitability potential. The
integration process, initiated in the fourth quarter, is well under way and
totally in line with our plans. In the fourth quarter we incurred SEK 631
million of non-recurring restructuring costs reflecting the measures taken. We
have a long history of speedy and successful integration of acquired companies
and are confident that we can meet expectations and reach cost synergies of SEK
900 million. The integration efforts will continue during the first half of 2015
and we expect to see a gradual impact of positive synergy effects already in
that period.

For the fourth quarter we reached sales of SEK 5.2 billion implying full year
sales of SEK 15.4 billion. Sales of Rottapharm products were traditionally
strong for the fourth quarter. EBITDA adjusted for non-recurring items amounted
to SEK 1,754 million leading to an EBITDA margin of 34%. For full year 2014
EBITDA reached SEK 4,700 million adjusted for non-recurring items, corresponding
to an EBITDA margin of 31%. I am very satisfied that we have reached our targets
for the full year at the same time as we have been in the phase of execution of
the extensive integration process of Rottapharm.

Our prescription product area – Rx – currently makes up 60% of total sales and
grew by 20% in Q4 as a result of the addition of the new Rottapharm products.
Dymista continued to be a major contributor to growth in the quarter. Dymista
showed steady growth in most markets where it has been launched. In line with
our expectations the product reached the position as Meda’s top-selling brand in
Q4 with sales of SEK 224 million. We are launching Dymista in more markets, both
in Europe and in Emerging Markets during 2015.

The manufacturing problems we experienced with Elidel in 2014 seem to be coming
to an end. Our manufacturing site in Mérignac, France, is manufacturing without
constraints and our third-party manufacturer also resumed manufacturing of
Elidel in January this year. The supply situation will gradually improve on a
global basis and with both manufacturing sites running we expect to come back to
a normal supply situation within the first half of 2015.

The importance of non-prescription products (Cx and OTC) have increased as a
result of the Rottapharm acquisition. Due to the acquisition sales doubled in Q4
and the category now accounts for 36% of sales. We saw that the good development
of CB12 continued with a 45% increase in fixed exchange rates in the last
quarter of 2014.

As part of the financing of the Rottapharm acquisition we carried out a
preferential rights issue during the fourth quarter. The rights issue was fully
subscribed and gave Meda proceeds of around 2 billion SEK. This will strengthen
Meda´s financial position and I am confident that we, due to our continued
strong cash flows will be back at a debt level that allows for further major
acquisitions already in 2016. For the full year 2014 Meda generated a free cash
flow of SEK 2,901 million, corresponding to 8.97 SEK per share.

We are in a good position to continue to develop Meda into a world-leading
specialty pharma company. 2015 will be a year that will be characterized by the
integration process. Our focus is to leverage the combined product offerings and
reach targeted synergies. For 2015, we expect sales of around SEK 20 billion
(assuming current exchange rates) and an improved EBITDA margin compared to
2014.

Jörg-Thomas Dierks

CEO

The company’s auditors did not review this year-end report.


Forward-looking statement
This report is not an offer to sell or a solicitation to buy shares in Meda.
This report also contains certain forward-looking statements with respect to
certain future events and Meda’s potential financial performance. These forward
-looking statements can be identified by the fact that they do not relate only
to historical or current facts and may sometimes include words such as “may”,
“will”, “seek”, “anticipate”, “expect”, “estimate”, “intend”, “plan”,
“forecast”, “believe”, or other words of similar meaning. These forward-looking
statements reflect the current expectations on future events of the management
at the time such statements are made, but are made subject to a number of risks
and uncertainties. In the event such risks or uncertainties materialize, Meda’s
results could be materially affected. The risks and uncertainties include, but
are not limited to, risks associated with the inherent uncertainty of
pharmaceutical research and product development, manufacturing and
commercialization, the impact of competitive products, patents, legal
challenges, government regulation and approval, Meda’s ability to secure new
products for commercialization and/or development, and other risks and
uncertainties detailed from time to time in Meda AB’s interim or annual reports,
prospectuses, or press releases. Listeners and readers are cautioned that no
forward-looking statement is a guarantee of future performance and that actual
results could differ materially from those contained in the forward-looking
statement. Meda does not intend or undertake to update any such forward-looking
statements.

Meda AB discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication on February 11, 2015, at 08:00 CET.


Meda AB
Pipers väg 2A, Box 906, 170 09 Solna, Sweden, Tel: +46 8-630 19 00, Fax: +46 8
-630 19 50,
E-mail: info@meda.se, www.meda.se, Corp. ID: 556427-2812