Interim report January-June 2015

April - June 2015

  · Net sales amounted to SEK 868 million (611), an increase of 42%
  · EBITDA increased by 58% and amounted to SEK 156 million (99) giving an
EBITDA margin of 17.9% (16.2)
  · Operating profit (EBIT) amounted to SEK 98 million (74)
  · Profit after tax amounted to SEK 69 million (48), giving a net margin of
7.9% (7.9)
  · Earnings per share amounted to SEK 1.50 (1.33), after dilution 1.50 (1.33)

January - June 2015

  · Net sales amounted to SEK 1 742 million (1 189), an increase of 46%
  · EBITDA increased by 56% and amounted to SEK 314 million (201) giving an
EBITDA margin of 18.0% (16.9)
  · Operating profit (EBIT) amounted to SEK 198 million (151)
  · Profit after tax amounted to SEK 189 million (103), giving a net margin of
10.9% (8.7), including a financial investment capital gain of SEK 36.3 million
  · Earnings per share amounted to SEK 4.22 (3.34), after dilution 4.22 (3.34)
  · Cash flow from operating activities was SEK 201 million (92)
  · Net debt to EBITDA was 2.0 (-1.2)

Key figures
                  Apr      change     Jan        change     Jul 14
               - Jun               - Jun

SEK million    2015  2014  in %    2015   2014   in %    - Jun 15   2014
Net sales      868   611   42.2    1 742  1 189  46.5    3 122      2 569

Net sales      856         40.1    1 709
(constant FX                                     43.7
rates)
EBITDA         156   99    57.6    314    201    56.3    512        399
EBIT           98    74    33.0    198    151    31.0    319        272
EBITDA margin  17.9  16.2          18.0   16.9           16.4       15.5
(%)
Earnings per   1.50  1.33          4.22   3.34           5.94       4.63
share
Return on                          11.4   12.6                      11.4
equity (%)
Return on                           13.0  20.8                      12.4
operating
capital (%)
Equity to                          49.7   62.1                      39.4
assets (%)
Net debt                           1 001  -405                      1 164
Net debt to                        0.4    -0.3                      0.5
Equity
Net debt to                        2.0    -1.2                      2.9
EBITDA

Thomas Eldered, CEO:
“Sales overall developed in line with our expectations during the quarter with
organic growth at 1.2% in local currencies, adjusted for volatile large tender
sales. Acquisitions from 2014 developed well and integration activities were
completed during the quarter, contributing to a total growth in local currencies
of 40.1%. While the product mix remained somewhat negative, we saw profit
increases and margin expansion as expected.

We continue to take steps to strengthen Recipharm and to support our long-term
targets. The acquisition of On Target Chemistry in June will allow us to support
our customers also in discovery and increase our geographical reach for
development services. Our focus remained on the market, with a high activity
level, a lot of new business gained and several promising ventures and
technology investments completed.

Capacity expansion projects and in particular our ongoing lyophilisation
expansion in Germany progressed according to plan with completion end of 2016.
During the quarter the decision was made to expand also the fill and finish
capacity of lyophilised products following strong customer demand. These
projects, together with several other, will enable us to better support our
customers in injectable technologies, an area which is developing very well for
us.

The Development & Technology business segment gained further momentum and
reported significant increases in profit and margin, in spite of reduced sales
of tender products this quarter. Also the Manufacturing Services segment Sterile
Liquids performed very well driven by good customer demand while the business
segment Solids and Others slowed to some extent. In Solids and Others we
continue to have a negative mix in our sales. This will necessitate mitigation
activities but will also provide opportunities for improvement initiatives. This
work will intensify during the next quarters as we take specific steps to
address the different areas of weak performance within this segment.

Operating cash flow for the quarter increased 50% year on year to SEK 53
million. Our financial situation is strong and the net debt to EBITDA ratio
improved sequentially to a very comfortable 2.0. After the period we have
increased our available unused credit lines by SEK 1,500 million and together
with other financing options we are well positioned to continue to deliver on
our growth strategy, including proceeding with highly interesting acquisitions
and business development opportunities.

Looking forward and excluding acquisitions we expect that in the second half of
the year overall demand for our services will stay on the same level year on
year, while the weak performance in Solids and Other will impact profit
somewhat. We are benefitting from recent acquisitions and we are very well
placed to explore the opportunities we see in the market, including geographic
expansion.”

The complete interim report is attached through the link at the end of the press
release.

The company invites investors, analysts and media to a web conference with a
presentation (in English) on 23 July at 11:00 am CET where CEO Thomas Eldered
and CFO Björn Westberg will present and comment on the interim report and answer
questions.

To participate in the web conference, please use the below link:
http://edge.media-server.com/m/p/m9s5ebdt (http://edge.media
-server.com/m/p/m9s5ebdt%20)

Questions may be submitted by dialing below telephone numbers or by typing them
in the Q&A box during the conference. If you don’t wish to ask questions by
telephone you only need to participate through the link above.
From Sweden: + 46 8 505 56 453
From Denmark: + 45 35 44 55 74
From Finland: + 358 9 8171 0490
From Norway: + 47 235 00 251
From the UK: + 44 203 009 24 55
From Germany: +49 211 971 900 76
From Switzerland: +41 225 80 29 94
From France: + 33 170750706
From Spain: +34 911 140 089
From Portugal: +35 121 06 09 104
From USA: +1 855 228 3719
Pin code for participants:
602320#

This information is published in accordance with the Swedish Securities Market
Act, the Swedish Financial Instruments Trading Act and/or the regulations of
NASDAQ Stockholm. This information was submitted for publication on 23 July 2015
at 07:45 am CET.

About Recipharm
Recipharm is a leading CDMO (Contract Development and Manufacturing
Organisation) in the pharmaceutical industry employing some 2,200 employees.
Recipharm offers manufacturing services of pharmaceuticals in various dosage
forms, production of clinical trial material including API and pharmaceutical
product development. Recipharm manufactures more than 400 different products to
customers ranging from Big Pharma to smaller research- and development
companies. Recipharm’s turnover is approximately SEK 3.3 billion and the Company
operates development and manufacturing facilities in Sweden, France, the UK,
Germany, Spain, Italy and Portugal and is headquartered in Jordbro, Sweden. The
Recipharm B-share (RECI B) is listed on NASDAQ Stockholm.

For more information on Recipharm and our services, please visit
www.recipharm.com
Recipharm AB (publ)
Corporate identity number 556498-8425
Address Lagervägen 7, SE-136 50 Jordbro, Sweden, Telephone 46 8 602 52
00, Fax 46 8 81 87 03
www.recipharm.com