UDG Healthcare plc Annual General Meeting 2018

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1 UDG Healthcare plc Annual General Meeting 2018 Tuesday 30th January 2018, Dublin Brendan McAtamney, CEO

2 At a Glance UDG Healthcare is a leading international partner of choice delivering advisory, communication, commercial, clinical and packaging services to the healthcare industry. 3 OPERATING 9,000+ DIVISIONS EMPLOYEES Ashfield Sharp Aquilant 24 COUNTRIES 30 YEAR+ DIVIDEND GROWTH TOP 30 PHARMA COMPANIES AS CLIENTS FTSE 250 LISTED 2 : UDG Healthcare plc

3 Transformation since 2012 ONGOING TRANSFORMATION TO FOCUS ON HIGHER GROWTH, HIGHER MARGIN BUSINESSES Operating Profit Evolution 5 % 21 % % % 32 % % 30 % Margins of the Group have more than doubled % 12.6 % 33 % Supply Chain / Aquilant Ashfield Clinical & Commercial Ashfield Communications (inc. Advisory) Sharp 3 : UDG Healthcare plc

4 Geographic Profit Split Evolution North America UK Europe, Ireland & Other % 41 % 10 % 4 : UDG Healthcare plc

5 2017 Strategic Highlights M&A ACTIVITY ASHFIELD PROPOSITION Ashfield continued to enhance and broaden its service proposition by commencing the build of its Advisory offering following the acquisitions of STEM and Vynamic INFRASTRUCTURE Future Fit New systems across HR and Finance 6 ACQUISITIONS capital commitment in excess of $270M ASHFIELD OFFICE EXPANSION US Commercial & Clinical relocated to a new facility in Fort Washington, PA. Other office moves in Scotland, Ireland & Japan SHARP FACILITY INVESTMENTS Continued to develop the Sharp offering through investments in new facilities in the US & UK LEADERSHIP TRANSITIONS Jez Moulding Appointed as COO of UDG & EVP of Ashfield Nigel Clerkin Appointed as CFO of UDG from 1 st May : UDG Healthcare plc

6 2017 Financial Highlights* +23% on a constant currency basis +17 % EPS PROFIT BEFORE TAX +17% +23% on a constant currency basis Ashfield +16% Sharp +8% +12 % OPERATING PROFIT NET REVENUE +12% Ashfield +21% Sharp +2% Margin in line with FY % NET OPERATING MARGIN DIVIDEND +7 % Continued dividend growth * Continuing Group 6 : UDG Healthcare plc

7 Ashfield Overview 63 % Operating profit* ($m) A global leader in advisory, communication, commercial and clinical services Advisory Healthcare brand advisory, consulting and commercial audit services Communications Scientific communication content, behavioural change strategies, digital and creative patientcentre services Commercial & Clinical Commercialisation and clinical services including sales representatives, nursing services, contact centres and meetings and events FY12 FY13 FY14 FY15 FY16 FY17 *Adjusted for amortisation of acquired intangible assets, transaction costs, and exceptional items 7 : UDG Healthcare plc

8 Ashfield Acquisitions in FY17 Q1 Q2 Q3 Q4 Total acquisition consideration of up to 84m Total acquisition consideration of up to $14.4m Total acquisition consideration of up to $32m Total acquisition consideration of up to $35m Total acquisition consideration of up to $75.8m 8 : UDG Healthcare plc

9 Ashfield Developments FORT WASHINGTON OFFICE Ashfield US Commercial & Clinical relocated to a new facility in Fort Washington, PA. APPOINTMENT Jez Moulding Appointed as COO of UDG & EVP of Ashfield NEW FINANCE SYSTEM FIVE NEW WORK STREAMS Launched to enhance Ashfield s capabilities and deliver its strategy: Commenced the implementation of Oracle Fusion finance system to support the delivery of continued sustainable growth Ashfield Developments Business development Marketing Analytics & Data Innovation IT Systems 9 : UDG Healthcare plc

10 Sharp Overview 32 % Operating profit* ($m) A global leader in contract packaging and clinical trial supply services Commercial contract packaging service in multiple formats including biotech, bottling, blistering and specialty Clinical trial services from pre-clinical through to commercialisation including clinical contract packaging services and Interactive Response Technology (IRT) Packaging design, labelling and printing solutions and industryleading serialisation solutions FY12 FY13 FY14 FY15 FY16 FY17 *Adjusted for amortisation of acquired intangible assets, transaction costs, and exceptional items 10 : UDG Healthcare plc

11 Sharp Facility Investments SHARP CONTINUED TO INVEST IN NEW FACILITIES ACROSS THE US & UK SHARP CLINICAL US SHARP CLINICAL UK SHARP COMMERCIAL US Fort Washington, PA, US Glasgow, UK Sharp Clinical US relocating to new pharmaceutical grade facility acquired in April 2017 Sharp Clinical UK relocating to recently purchased facility in South Wales Completed the fit out and opened new Biotech Centre of Excellence in the US 11 : UDG Healthcare plc

12 Aquilant 5 % Operating profit* ($m) A leading expert and provider of outsourced services to the medical and scientific sector Medical and scientific device sales, marketing, engineering and distribution in areas such as endoscopy, cardiology, radiology, surgical and orthopaedics FY12 FY13 FY14 FY15 FY16 FY17 *Adjusted for amortisation of acquired intangible assets, transaction costs, and exceptional items ^ Flat excluding the impact of translational fx 12 : UDG Healthcare plc

13 Positive Market Dynamics MARKET GROWTH VOLUME GROWTH POSITIVE PRODUCT APPROVALS INCREASED COMPLEXITY INCREASED OUTSOURCING Global pharmaceutical market growth - forecasted to grow at 4-7% p.a. to 2021 Volume use of medicines forecasted to reach c. 4.5tr doses by 2021 (+13%) Renewed growth in FDA drug approvals 46 in 2017 (vs 26 in 2016) By 2021, 35% of global spending expected to be on specialty medicines^ Growing trend of healthcare outsourcing, to larger, more global partners ^ Outlook for Global Medicines through 2021, Balancing Cost and Value, QuintilesIMS Institute, December 2016 *Medicines Use and Spending in the US, A Review of 2016 and Outlook to 2021, QuintilesIMS Institute, May : UDG Healthcare plc

14 Executing Our Strategy OUR STRATEGY IMPLEMENTING OUR STRATEGY Our strategy is to capitalise on the increasing trend among pharmaceutical, biotech and medtech companies to outsource specialist and non-core activities on an international basis. Values Based Culture Quality & Compliance Talent & Leadership Lead through people Geographic & Services Expansion Drive productivity Client Focus & Commercial Excellence Develop & expand market leading positions Supplementary Sources of Growth Operational Excellence Margin Expansion Capital Deployment 14 : UDG Healthcare plc

15 Share price & dividend performance UDG Healthcare PLC (UDG.L) Price ( ) year history of consistent dividend growth ($ cent) % 25% 15% UDG* FTSE 250* * Last 12 months 15 : UDG Healthcare plc

16 2017 Summary Strong FY17 performance driven by continued underlying growth, supplemented by acquisitions Market dynamics remain favourable EPS growth of +17% (+23% on a constant currency basis) Diversified client base with limited exposure to drug pricing Completed six acquisitions with a total capital commitment in excess of $270m Continued investment in infrastructure to deliver sustainable future growth Expansion of Ashfield service proposition across advisory, communications, commercial and clinical Underpinned by a strong balance sheet and cash generation 16 : UDG Healthcare plc

17 Thank you for your attention