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MedCap: Creating Value in Life Science

MedCap is a decentralised investment company in the Life Science industry, focusing on the MedTech and Specialty Pharma segments. With a strong portfolio and active ownership, we contribute to improved life quality. Our financial targets include achieving net sales of 1,500 MSEK in 4-5 years and an annual EBITDA growth of 15%.

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MedCap: Creating Value in Life Science

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  1. Company Presentation August 2019

  2. Vision Wecreatevalue and contribute to improvedlifequality in Life Science

  3. Introduction • Decentralised investment company in Life Science • Value creation through active ownership • 2 business segments: MedTech and Specialty Pharma • Sales: 739 MSEK (c. 70 MEUR) • Employees: ~ 270 • Listed on Nasdaq Stockholm Small Cap Home markets for portfolio companies Important export markets + Australia and the US Net Sales (rolling 12 months) MedTech SpecialtyPharma

  4. Second quarter (Q2 2019) • Positive profit growth in MedTech and positive development in SpecialtyPharmaduring Q2 • Group revenue growth in Q2 of 8% and EBITDA increased by 59%, excluding the effect of IFRS16 implementation of 6.4 MSEK • Positive development in the MedTech segment driven by all entities delivering positive organic sales growth. Abilia and Cardiolex contributed to the profit growth through very strong margins. • Revenue and profitability development in Specialty Pharma primarily driven by positive development in the own product portfolio • Net sales per quarter (MSEK) * • EBITDA per quarter (MSEK) * • ** • ** • * Q3 2017/18: twomonths • * * Excluding IFRS16 effectof 6.4 MSEK

  5. R12 update (development vs last year) • Profit increased by 41% and sales by 10% compared to the equivalent period previous year • Positive sales development in both MedTech and Specialty Pharma • 96% of the profitability improvement during the year is attributable to MedTech and is primarily driven by the development in Abilia and Cardiolex • The profitability development in Specialty Pharma is primarily driven by weak volumes and margins in CDMO • Net Sales vs. last year (MSEK) • EBITDA vs. last year (MSEK) * * Excluding IFRS16

  6. Sales and EBITDA – MedCap over 10 years • MSEK (Net sales) • MSEK (EBITDA) / % Sales CAGR: 15% EBITDA CAGR: 30%

  7. Sales and EBITDA – R12 per quarter • MSEK (Net sales) • MSEK (EBITDA) / % Sales CAGR: 19% EBITDA CAGR: 49%

  8. Overviewof segments MedTech SpecialtyPharma Net Sales R12: 419 MSEK EBITDA R12: 93 MSEK Net Sales R12: 321 MSEK EBITDA R12: 22 MSEK Technical aid solutions and services for individuals with functional disabilities Specialtypharma (nischepharmaceuticals) and CDMO (contractdevelopment and production) Vaccum system and for ECG-systems Package solutions for pharmaceuticals and probiotic products

  9. Investment strategy • Small and mid-sized private life science companies • Companies in Central/NorthernEuropewith international potential • Relationship basedinvestments • Investment size: 50-500 MSEK (5-50 MEUR) • Ownership: Majority • Ownership period: Unlimited • Targeting 5 – 10 coreinvestments

  10. Valuecreationthroughactiveownership • Assessmentbased on transparent financial and operationaltargets • Long-term valuecreation • Investment in development • Operationalimprovement Growthstrategy MedCap’s ownership model: Combines the largercompany’sstrengthswith the smallercompany’sentrepreneurial spirit Active ownership Resources Add-on acquisitions • Access to competencies, networks and resources • Add-on acquisitions of companies with synergies

  11. Acquisitions and exitssince the start

  12. Financial Targets Net sales in 4-5 years 1,500 MSEK Annual EBITDA growth* 15% Net debt / EBITDA* <3x *Average over economic cycle

  13. The companies included in the MedTech segment primarily sell different types of medical equipment and products The segment consists of the subsidiaries Cardiolex, Abilia and InpacAirContainer Net sales for the rolling 12-months period increased by c. 15 percent during the second quarter compared to the same period last year, primarily driven by strong growth in Abilia No material impact from acquisitions in R12. Last material acquisition was in January 2018 R12 EBITDA increased by 44 percentcompared to the same period last year Net working capital for the segment was 78 MSEK (81 MSEK) as per 30 June 2019 MedTech – Operating and financialupdate • 2018 Q2 • Net Sales – Rolling 12 months • EBITDA* – Rolling 12 months • ** *) Adjusted, excluding management fees from the mothercompany. **) Excluding IFRS16 whichwasimplemented in Q1 2019

  14. Value Drivers in MedTech - Abilia • Since 2000 there has been an accelerating trend with an increasing number of young people being diagnosed with neuro phycological disabilities • Treatment therapies as well as diagnostic methods have developed rapidly in combination with increased capacity in the established systems • In Sweden and Norway there is a ”tradition” of using (electronic) support for time and structure management. There is also a common understanding in these markets that Abilia’s products add significant socio-economic value. Diagnoses, children 0-14 years (Sweden) Sources: Patientregistret, Socialstyrelsen och Statistiska Centralbyrån

  15. Opportunities in MedTech Strong product portfolio and solid market position in MedTechgenerate long term growthopportunities Portfolio of attractive MedTech Products Market size Nordics: 1 BnSEK, Global ”verylarge” Nordics: 100 MSEK, EU 5 BnSEK Nordics: 1.2 BnSEK Dynamics Lowcompetition in certain niches, high in communication Highcompetitionbutattractive situation linked to software solution Largenumberoflocal/regional companies, few global Customers Welfare systems / careproviders in Nordics and UK Regions, municipalities, private careproviders Pharma, nutrition and logisticscompanies Market position #1 in Nordics #1 in Sweden (Cardiolex) #1 in Germany (Strässle) #1 in Nordics for probiotic products

  16. The companies included in the Specialty Pharma segment develop and sell pharmaceutical products within the regulatory classifications registered, extempore and non-license pharmaceuticals Net sales for the 12-months rolling period increased by 4 percent compared to the same period last year Strong development for several products in the Nordic portfolio, +52% increase of 12-months rolling net sales (7 key products ) Weak volumes and margins in CDMO primarily due to unfavourable product mix Operating result for the 12-month rolling period increased by 24% compared to the same period last year Net working capital for the segment was 73 MSEK (77 MSEK) as per 30 June 2019 SpecialtyPharma – Operating and financialupdate • 2019 Q2 • Net Sales – Rolling 12 months • Net Sales – Rolling 12 months • ** • ** *) Adjusted, excluding management fees from the mothercompany. **) Excluding IFRS16 whichwasimplemented in Q1 2019

  17. Fenylefrin Prednisolon Klysma Oxibutynin Product x Valuecreatingproductdevelopment process 18-24 months 6-12 months Extempore Pharmaceuticals Registered national MRP • Specialtypharmaceuticalswithlocalclinical history, oftenbased on dosage / administration • Simplifiedregistration process. Knownsubstances! • Often pediatric, evenalternative formulation, in somecases Swedish requests • Increasesdocumentationquality – ”medicalfile” • Creates IP • Price negotiation • Takes 100% ofexisting market • Expansion of national registration • International sales / out-licensing • Only in geographieswithclearclinicalrelevance and transparency Products Products Products • Fenylefrin • Prednisolon Klysma • Oxybutynin • Fenylefrinin Nordics, UK, German speaking countries, Benelux + a fewmore

  18. Opportunities in SpecialtyPharma • Attractive platform of own products, pipeline with new product launches, established expertise in product development and experience from registration processes. Prioritised area for strategic acquisitions. Portfolio of attractive products Strong net sales development for newly launched products1 +52% (12 mån) 1 Portfolio of seven newly launched products in Specialty pharma (see next page)

  19. Attractive portfolio ofownSpecialtyPharmaproducts Product Indication Launch MAH (Marketing AuthorisationHolder) Spring 2017 Fungalinfection Basilea (Unimedic exclusive in Nordics) Cresemba Spring 2015 Lowbloodpressure (anesthetic) Unimedic (Out-licence partners outside Nordics) Fenylefrin Fall 2018 Lowbloodpressure (anesthetic) Unimedic Efedrin Fall 2018 Pain (intensive care) Unimedic Morfin Spring 2017 Opioidaddiction Martindale (Unimedic exclusive in Nordics) Espranor Fall 2018 Ulcerativecolitis Unimedic Prednisolon - Klysma Spring 2018 Overactive bladder Unimedic Oxybutynin

  20. Financialsummary – BalanceSheet • 794 • 136 • 151 *) Includes 164 MSEK of assets recorded in accordancewith IFRS16 (implemented in Q1 2019) **) Includes -55 MSEK of Group cash pool eliminations

  21. Market MedTech • MedCap’scompanies in the MedTech segment primarilysell different typesofmedicaldevices and ECG-equipment. The customersarenormallyhealthcare regions, municipalities, healthcareproviders and distributors • In MedTechMedCap is active in growingnicheswithinassitivetechnology and has a leading position in both the Nordic region and Europewithinitsniches. In ECG-equipment it is the leading providerofcomplete ECG systems in Sweden and the leading providerofvaccum ECG in Germany • In total the European market for assistivetechnology is approximately 1 Bn SEK and the global market for ECG equipment is approximately 40 Bn SEK SpecialtyPharma • SpecialtyPharmadevelops and sellspharmaceuticalproductswithin the regulatoryclasses registered, extempore and non-licensepharmaceuticals. The customersareprimarilypharmacies and pharmacompanies. • MedCap is primarilyactive on the Swedish pharmaceutical market, whichduring 2015 was 40.6 Bn SEK and consistsof c. 12 000 registeredpharmaceuticalproducts. In Sweden 99 million pharmaceutcalpackageswereprescribedduring 2015. Approximately 90 percentofthesearecovered by national reimbursement.

  22. Management Team IM, Thomas Bergh, civ ek., b 1982 Experience from Life Sciene and Investment Banking in London and Stockholm Previously Morgan Stanley och UBS Investment Bank. VD, Karl Tobieson, civ ing., b 1974. Experience from corporate finance, business development and activeownership. Ownership c. 5.0 %. BILD CFO, Henrik Koch, civ ing., b 1973 CFO since 2009 (mostrecently Hector Rail AB) Experience from finance and management consulting. Previously HSH Nordbank and CGI.

  23. Board of Directors Peter von Ehrenheim: Chairmanof the Board. Board member (chairman) of Boule Diagnostics AB, Sophion A/S, Grönsöö Säteri AB and Färjsundet Industri AB. Anders Lundmark: Board memberof Bioservo Technologies, Tellacq AB, Nordic Biosite AB and SecureAppbox AB. Reneé Aguiar-Lucander: CEO at Calliditas. Previously in investment banking and asset management. Previously investment manager at Omega Funds. Henrik Blomquist: CEO Bure Equity AB. Board memberof The Chimney Pot AB and Valot. Chairmanof the board for Investment AB Bure och Cavena Image Products AB. Anders Hansen: Specialist physician (psychiatry) and MSc from Stockholm SchoolofEconomics. Writesaboutmedical research for British Medical Journal. Board memberofExeceutive Health Sweden AB.

  24. MedCap’sshare • Sharepricedevelopment • MedCaplisted on Nasdaq Stockholm sinceFebruary 2016 (since 2004 on Nya Marknaden / First North) • Per 9 August 2019 the sharepricewas SEK 129.0 whichimplies a market capof SEK 1 735 million • Volume (shares) • Shareprice (SEK) • Largestshareholders

  25. Summary: Whyinvest in MedCap? • Solid platform in MedCap => opportunity for continuedacquisition driven growth • Strong product portfolio and established market position in MedTech => generates long term growthopportunities • Excitingproduct pipeline in SpecialtyPharma => generates long term growthopportunities

  26. Financialcalendar • Q3 2019, 31 October 2019 • Q4 2019, 17 February 2020 • Q1 2020, 8 May 2020 • Q2 2020, 7 August 2020

  27. Financialsummary – Segments *) Adjusted, excluding management fees from the mothercompany and excluding IFRS 16.

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