Investment case

• Our product portfolio is highly mission-critical for our customers, as the final drug approval is only granted in combination with the containment solution or delivery system. Injectable medications must always be safely contained and administered to ensure drug stability.
• We collaborate with our customers in strong, long-term partnerships to develop solutions throughout the entire drug life cycle. This results in a 97 % repeat customer rate. We have built a longstanding customer base made up of the world’s top 30 pharma companies, as well as its leading CDMOs, biotechs, and startups. A well-established global footprint across all major pharma hubs and a local-for-local approach ensure that we stay close to customer demand.
• We have leading global market positions in all our product categories: Number one for polymer syringes, vials and ampoules, number two for cartridges, and number three for glass syringes.¹
• The pharmaceutical and biopharmaceutical industries have high barriers to entry including strict regulatory requirements, high switching costs and a consolidated market structure. Thanks to its long-term presence in the industry, SCHOTT Pharma has built up expertise, trust, and a good reputation among customers, suppliers and partners. SCHOTT Pharma is ideally positioned to quickly capture market trends.

¹(market position for glass syringes excluding Heparin)

• We are 100 % focused on drug containment solutions and delivery systems for injectable drugs, with the broadest offering in the market.
• In 2022, more than 50 % of medications approved by the FDA were injectables.
• The market growth of injectable drugs is according to studies expected to outpace overall pharma market growth, with a projected 1.4-fold increase from 426bn EUR (2022) to 579bn EUR (2026e). We also expect our addressable market to increase annually by 8 % in the next few years.
• The mission-critical character of drug containment solutions and delivery systems enables us to benefit from many global medical and biologics trends without the risk of high R&D investments for drug development.

• With our track record of strong growth, leading margins, and high cash conversion, we are an attractive investment case and create sustainable shareholder value.
• Since FY 2017, SCHOTT Pharma has delivered sustained profitable topline growth of more than 10 % CAGR. The growth momentum should remain strong as we are well positioned to benefit from the favorable demand for high value containment solutions and drug delivery systems.
• We have very high sales visibility for the next few years thanks to a promising order pipeline from long-term customer contracts. The cumulated value of these contracts until 2030 amounts to more than 1.4bn EUR.
• A clear strategic focus on expanding our portfolio of high-value solutions (HVS) should result in its share of sales exceeding 60 % in the mid-term, along with a positive impact on our profitability.
• We have a strong cash conversion of more than 80 % thanks to a high EBITDA margin and low maintenance CapEx requirements of only 3-4 % of sales.

• Innovation has been a key part of our company for over 100 years. From the early production of ampoules in 1923 to the world’s first ready-to-use syringes for the storage of mRNA vaccines at -100°C, SCHOTT Pharma has been driving innovation.
• With R&D investments above industry average, we are committed to constantly challenging the status quo and developing innovative solutions.
• Our strong science-based R&D capabilities put us in an excellent position to meet the challenges for drug containment solutions and delivery systems.
• We have developed over 1,000 patents, designs, and technologies, and maintain state-of-the-art R&D centers located in Switzerland, Germany, and China.

• SCHOTT Pharma has an experienced and ambitious management team with a proven track record of delivering strong growth and margin expansion, as well as a clear strategic roadmap to further drive profitable, durable growth.
• With our major shareholder, SCHOTT AG, we have the support of a growth-oriented partner to deliver our long-term strategy. As part of the Carl Zeiss Foundation, SCHOTT AG is a market leader in high-tech materials based on specialty glass. SCHOTT AG is furthermore a key supplier of SCHOTT Pharma, which benefits from the close relationship.
• At SCHOTT Pharma, sustainability and the company’s success are closely linked. We are continuously increasing our efforts to drive climate action, contribute to a circular economy and improve global health and gender equality to reflect our commitment to our social responsibility. The value-oriented guidelines of SCHOTT AG are reflected in SCHOTT Pharma’s focus on operating in a social, sustainable, and responsible way.