Novosis - Acino

Schweizerhall – A Focused Pharma Group
Luzi A. von Bidder
Chairman
Nine-Month Figures as of September 30, 2007
Q3
1

Agenda
• Highlights
• Financials
• Cimex
• Novosis
• Outlook
2

Highlights first nine months 2007
• Net revenues CHF 128.9 million +33% (acquisition adjusted +23%)
– Cimex CHF 98.5 million +18.4%
– Novosis CHF 30.4 million (consolidated as of April 1, 2006)
• EBITDA CHF 38.0 million +51%
• EBIT CHF 16.2 million +122%
• Cimex: third quarter revenues impacted by flood damage – great
demand for Oxycodon
• Novosis: Fentanyl is growth driver – projects according to plan
• Sustained positive outlook for 2007– despite flood damage
revenue growth target confirmed of about 30% yoy
3

Focus on growth segments specialty pharma
and generics
• Cimex
– Development and manufacturing of generic drugs for leading
generics marketers in Europe (B2B)
– Direct marketing of generics in Switzerland (B2C)
• Novosis
– Development and manufacturing of therapeutic patches
and inserts for the research-driven pharmaceutical industry as
well as for generics companies
4

17
Population rate with age >60 years in % Average health costs per head (USA)
1990 2000 2010 2030 34 in USD per year (2003)
20
22
Aging population and increased demand for
pharmaceuticals – Schweizerhall well-positioned
Aging population Increased demand for pharmaceuticals
31
17
16
19
26
15
23
29
Europe
Source: Novartis
North America Japan
Medical Services
Medical care
Health insurance
Pharmaceuticals
547
1'468
2'105
2'480
3'059
3'626 3'856
74
5

Agenda
• Highlights
• Financials
• Cimex
• Novosis
• Outlook
6

Net revenue / EBITDA Jan 1- Sept 30, 2006 - 2007
CHF million
130
110
90
70
50
30
10
-10
83.2
23.5
Cimex
2006
Net revenue
EBITDA
98.5
29.2
Cimex
2007
+18%
14.1
Novosis
2006
1)
+116%
30.4
9.4
Novosis
2007
1) Consolidated as of Q2 2006
97.3
25.1
Total
2006
+33%
128.9
38.0
Total
2007
+51%
7

Cimex first nine months 2007
• Net revenue growth: 18.4% (yoy)
driven by Oxycodon launch and
increase in sales of rest of product
range, third quarter impacted by flood
damage at Liesberg site
• Operating expenses impacted by
CIMEX Generics start up costs and
higher production volume
• EBITDA +24% at a high level,
29.6% of net revenues due to high
plant utilization
• EBIT impacted by amortization
(IFRS 3), amortization over six years
• Number of employees increased to 214
• Investments of CHF 11.7 million to fuel
future growth
in CHF million 09-07 09-06
Net Revenue 98.5 83.2
Work performed and capitalised 1.5 1.9
Goods purchased / c.i.inventory (38.4) (37.2)
Operating expenses (32.4) (24.3)
EBITDA 29.2 23.5
in % of Net Revenue 29.6% 28.3%
Depreciation (3.7) (3.1)
Amortisation (11.7) (10.9)
Operating Profit / EBIT 13.8 9.5
in % of Net Revenue 14.0% 11.4%
Investments tangible assets 6.4
Investments intangible assets 5.3
Employees (FTE) 214
5.4
9.7
186
8

Novosis first nine months 2007
• Net revenue mainly due to Fentanyl
(additional European countries and
higher penetration of generics )
• Fentanyl launched in Canada
• First quarter 2006 not consolidated
• EBITDA 30.7% of net revenue – mix of
royalty / production
• EBIT impacted by amortization (IFRS
3), amortization over eight years
• Investments of CHF 8.0 million in
capacity and development
in CHF million 09-07 09-06
Net Revenue 30.4 14.1
Work performed and capitalised 1.2 0.3
Goods purchased / c.i.inventory (10.8) (6.4)
Operating expenses (11.5) (4.8)
EBITDA 9.4 3.1
in % of Net Revenue 30.7% 22.2%
Depreciation (0.9) (0.4)
Amortisation (5.5) (3.4)
Operating Profit / EBIT 3.0 -0.7
in % of Net Revenue 9.7% -5.1%
Investments tangible assets 2.7
Investments intangible assets 5.3
Employees (FTE) 97
2.5
2.3
63
9

Marked earnings increase
in CHF million 09-07 09-06 %Change
Net Revenues Cimex 98.5
Net Revenues Novosis 30.4
Net Revenues 128.9
83.2
14.1
97.3
EBITDA 38.0 25.1
in % of Net Revenues 29.5% 25.9%
Depreciation (4.5) (3.5)
Amortisation (17.2) (14.3)
Operating result (EBIT) 16.2
Net financial result / result associated companies (2.7)
Tax 3.3
Net profit from continued business units 16.9
Net profit from discontinued business unit -
Net profit 16.9
Cash flow from operating activities 30.4
7.3
4.1
(0.6)
10.8
29.1
39.8
25.0
18%
116%
33%
51%
122%
57%
-58%
23%
10

Balance sheet as of September 30, 2007
in CHF million
Assets
30.09.2007 31.12.2006
Property, plant and equipment 72.5
67.5
Intangible assets 277.8
284.4
Financial Investments 16.7
18.9
Other assets 12.1
11.8
Cash, cash equivalents & marketable securities 62.6
59.8
Inventories and work in progress 25.8
19.4
Other current assets 23.3
22.2
Total assets 490.8
484.1
Liabilities and equity
Total shareholders’ equity incl. minority interests 314.5
Financial liabilities (long-&short-term) 5.6
Outstanding purchase price Novosis 66.4
Deferred revenue (long-&short-term) 29.5
Deferred tax liabilities 38.9
Other liabilities 35.9
Total liabilities and equity 490.8
64.1% 300.3
5.7
67.4
34.6
44.8
31.3
484.1
62.0%
11

Cash flow
in CHF million 09-07 09-06
Cash flow from operating activities 30.4
Cash flow from investing activities (19.9)
Cash flow from financing activities (6.6)
Effect of currency exchange rate -
Net change in cash continuing operations
Net change in cash discontinued operation
Net change in cash 3.9
Free cash flow 9.0
Investments
3.9
-
25.0
53.7
(27.0)
-
51.6
4.2
55.8
in CHF million 09-07 09-06
Property, plant and equipment 9.1
Intangible assets 10.6
5.1
7.9
12.0
12

Agenda
• Highlights
• Financials
• Cimex
• Novosis
• Outlook
13

Cimex Liesberg plant in Switzerland and Glochem India
Liesberg plant Glochem India
14

Cimex - Profile
• Leading supplier of pharmaceutical products and services in Europe
with focus on generics (B2B)
• Comprehensive offering of services
– Exclusive synthesis of APIs with selected partners (India)
– Development of solid formulations
– Clinical studies
– Approval-strategy and registration with health authorities
– Manufacturing and packaging in own and third-party facilities
– Supply chain management
15

Break-down of turnover
Proprietary products / contract manuf. Main countries
110
100
90
80
70
60
50
40
30
20
10
0
CHF mio.
20.3
24.1
21.6
27.5
25.4
27.3
41.4
27.6
35.3
2004 2005 2006
Prop. Products manufactured in India
Prop. Products manufactured in CH
Contract manufacturing
62%
11%
Germany GB & IRL
Switzerland Italy
France Others
Part of the Germany sales goes
to other European countries
4%
4%
3%
16%
2006
16

Growth drivers for the generics market
• Strong political pressure to reduce healthcare costs
• Incentives and regulations to support the replacement of original
drugs by generics in pharmacies
• Higher customer awareness and increased acceptance of generics
• Patent expiration of original drugs in Europe
• Growth of ageing population
• Currently low market penetration of generics in many Southern
European countries
17

50
45
40
35
30
25
20
15
10
5
0
Generics Market Europe
CHF billion
27.9
19.5
Growth +12% p.a.
30.7
21.5
4.9 5.4
46.4
32.5
8.1
2005 2006 2010E
Pharmacy sales
Sales generics
companies
Market accessible to
Cimex
18

Cimex – Outlook 2007
• Emphasis on technologically sophisticated pharma developments
with higher margins
• Proprietary products and production of strategically important APIs in
cooperation with partner company Glochem in India
• Manufacturing plant in Liesberg operating at full capacity – cost
management enhanced with new ERP-SAP system
• Strengthened market presence in important US market
• Three to four launches planned
• Direct market entry in Switzerland
• 15 projects in pipeline
19

Strategic partnership with Glochem
• Glochem Industries Ltd. (Hyderabad, India)
– Manufacturer and marketer of active pharmaceutical ingredients
(APIs), fine chemicals and customer synthesis
– Comprehensive certifications and registrations
– 2nd plant opened Q1-2007 in Visakhapatnam
• Schweizerhall secures access to a successful, focused and
specialized company on the Indian Subcontinent
– Sourcing of pharmaceutical intermediates, APIs
– Cost advantages in research, development and manufacturing;
shorter time-to-market
– 20% of the share capital of Glochem Industries Ltd., board seat
20

Total generics (GX) market Switzerland:
CHF 370 Mio. (June 2007, ex factory)
3.9%
GX market, market share in % (value) GX market, market growth in % (value)
5.0%
6.2%
8.3%
11% 11%
2002 2003 2004 2005 2006 H1/2007
• Low market share of generics
• Relatively high prices, despite
reduction
• New Swiss regulation on co-pay
since 2006
• Market share increased to 11%
12%
40%
28%
38%
43%
12%
2002 2003 2004 2005 2006 H1/2007
Units + 22%
• Strong growth 2002–2006
• Potential for doubling or tripling in
market size in coming years
• Patent expirations valued at
CHF 1 billion until 2015
21

Swiss Generics Companies H1-2007 (value)
Mepha
Sandoz
-1.8%
Spirig
Helvepharm
Streuli
-5.0%
Teva
Sales growth H1-07/H1-06
in CHF
6.7%
0.0%
24.4%
18.3%
37.7%
30.2%
47.0%
37.8%
66.2%
130.9%
-20% 30% 80% 130% 180%
Helvepharm
4%
Streuli
3%
Spirig
11%
Mepha pharma player # 6 in Switzerland, Sandoz # 7
Market share
in CHF
Teva
1%
Sandoz
36%
Others
8%
Mepha
37%
22

Direct marketing in Switzerland – CIMEX Generics
• Interesting market situation
– Two main suppliers (Mepha & Sandoz) with own development and
production
– Three smaller, less specialized providers lacking development and
production capabilities (Spirig, Streuli and Helvepharm)
• CIMEX Generics
– In-house development and manufacturing in Switzerland
– 5 products from own development and manufacturing by end 2007
– Marketing strategy successful with doctors/ hospitals – at pharmacy level
product substitution however very modest
– Rapid strategy adjustments in third quarter
23

Agenda
• Highlights
• Financials
• Cimex
• Novosis
• Outlook
24

Novosis AG
Novosis, Miesbach (D)
Patch processor
Patches Inserts
25

Novosis - Profile
• Drug delivery specialist; no. 2 in Europe for the development and
manufacturing of therapeutic patches and inserts
• Products / projects
– patches and implants for the treatment of pain and cancer
– 15 customer projects – 5 own developments in the pipeline
• Substantial growth potential due to well-filled pipeline
• Fentanyl patch has sizable sales up-side
• 160 million patch manufacturing capacity in-house
• 111 employees, located in Miesbach/Munich
26

Novosis – Pipeline 2008 / 2009
• Goserelin: (Zoladex) first non-exclusive license granted to a leading
European generics company; negotiations for a license for the USA
and an additional one for Europe at advanced stage
• Buprenorphin: (Transtec) intensively ongoing discussion with several
potential marketing partners; very high interest in the pipeline product
• Axxonis Pharma AG, positive Phase III results of the Lisurid TDS for
both Parkinson and Restless Leg Syndrome
27

Fentanyl Europe
FENTANYL TTS :
Key EUROPEAN Markets fixed Euros ex-mnf (000s) MAT Q1 2007
POLAND R+H
2.0%
ITALY R+H
2.3%
AUSTRIA R+H
2.6%
BELGIUM
3.0%
NETHERLANDS R
3.2%
SPAIN R+H
9.0%
FRANCE R+H
11.0%
ALL OTHERS
11.9%
UK R+H
11.5%
TTS MARKET VALUE MAT
Q1 07
649 mio Euros ex-mnf
GERMANY R+H
43.5%
282 Mio. €
GERMANY R+H UK R+H FRANCE R+H SPAIN R+H NETHERLANDS R
BELGIUM R+H AUSTRIA R+H ITALY R+H POLAND R+H ALL OTHERS
28

Markt in 000s
Euros
Fentanyl (in €, originals vs. generics)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
60.2
39.8
GERMANY R+H %V
FENTANYL TTS MARKT : Originalpräparat (patent-geschützt) v.s Generika
in EUR Umsatz (000s) ex-mnf MAT 1.Q 2007
281.4 78.1 73.9 61.0 20.2 18.0 15.6 14.5 12.4
UK R+H %V
21.6
78.4
FRANCE R+H %V
0.0
100.0 100.0
SPAIN R+H %V
NETHERLANDS R %V
5.3
94.7
1.1
98.9
BELGIUM R+H %V
8.6
91.4
AUSTRIA R+H %V
ORIGINALS OFF PATENT GENERICS PROTECTED
ITALY R+H %V
0.8 0.0
99.2 100.0
SWITZERLAND R+H %V
29

Agenda
• Highlights
• Financials
• Cimex
• Novosis
• Outlook
30

Group outlook 2007
• Net revenue of the Group growing about 30%
• Earning power of businesses increasing
• Financial result dependent on the IPO-situation for non-listed
investments and the USD (current value CHF 16.7 million)
• Group strategy: focus on specialty pharmaceuticals and generics
• Strong balance sheet make further acquisitions feasible
� Basis for future value creation intact
31

Shareholders as of 30.9.2007 (Number of shares)
68.1%
12.3%
8.4%
11.2%
Share: private 61% institutional 39% foreign 30%
A. Knapp Voith
M&HP Schär
Schroders
Restl.Free Float
32

Management structure
Board of Directors of Schweizerhall Holding AG
Luzi Andreas von Bidder Chairman of the Board
Dr. René Muttenzer Vice-Chairman of the Board
Dr. Staffan O. Bjöörn Member of the Board
Dr. Dr. h.c. François L‘Eplattenier Member of the Board
Sven Hoffmann Member of the Board
Jürg Michel Member of the Board
Dr. Hans-Peter Schär Honorary Chairman
Group Management
Luzi Andreas von Bidder Chairman of the Board
Marcel von Ah CFO
Dr. Axel Müller CEO Business Unit Cimex
Dr. Wilfried Fischer CEO Business Unit Novosis
33

Investor & Media Relations
Schweizerhall Management AG
Luzi Andreas von Bidder
Chairman
P.O. Box
Nüschelerstrasse 30
CH-8022 Zürich
Phone +41 (0) 43 344 74 74
Fax +41 (0) 43 344 74 75
Info@Schweizerhall.com
www.Schweizerhall.com
34