J lnterim report- November 9, 2012
`
`ED
`
`Meda AB (publ)- Interim report, January-September 2012
`
`• Group net sales reached SEK 9, 796 million (9,400). At fixed currency
`rates, sales increased 5%.
`
`• EBITDA amounted to SEK 3,043 million (3,493), corresponding to a 31.1%
`margin (37 .2).
`
`• Operating profit amounted to SEK 1,442 million (1 ,986) .
`
`• Profit after tax totaled SEK 823 million (1 ,098).
`
`• Earnings per share reached SEK 2.79 (3.65).
`
`• Cash earnings per share reached SEK 6.18 (7.13).
`
`• Forecast for ful l-year 2012:
`
`''The Meda Group expects to achieve sales close to SEK 13,000 million
`and an EBITDA margin of around 30 percent. "
`
`PLAINTIFFS'
`TRIAL EXHIBIT
`PTX0393
`
`MEDA_APTX03504046
`
`PTX0393-0000 1
`
`1
`
`CIP2068
`Argentum Pharmaceuticals LLC v. Cipla Ltd.
`IPR2017-00807
`
`

`

`CEO STATEMENT
`
`Organic sales growth for the Group in the third quarter was 1%, which was slightly better than previous quarters.
`Sales for the third quarter were affected by significant negative currency effects and planned lower revenues from
`the collaboration agreement with Va leant. Outside the United States, organic growth was 5% in the third quarter,
`compared with 4% for the first two quarters. In the United States, generic competition for some older products
`continues to affect the Group's total sales growth. However, as previously announced, I expect Dymista will be
`the solution in the US.
`
`We began the US launch of Dymista in September. The first stage will focus on a well-defined audience of about
`6,000 allergy specialists. We call this phase the pre-launch. Major activities will be conducted in parallel at
`conventions and scientific meetings. The base that is built during this period is crucial to the next phase, the
`launch, which begins in the spring of 2013. During this phase, the audience will gradually be increased to about
`20,000 doctors consisting of specialists and some GPs.
`
`It is too early to draw any conclusions about Dymista but we have received very positive feedback during the
`initial pre-launch from prescribers and patients alike. Dymista presents a unique opportunity for Meda and it is
`important to establish the product properly.
`
`Besides Dymista, we are continuing the launches of certain OTC products and build-up in Emerging Markets. The
`launch of OTC products SB12 and Nalox outside the Nordic countries is progressing as planned. Their launch has
`begun on about a dozen markets in Europe and other markets will be gradually added . OTC products now
`constitute about 25% of Group sales and an organic sales growth of 18% was noted in the third quarter.
`
`Initiatives in Emerging Markets continue and it is nice to note organic sales growth of 14% after a strong quarter in
`Russia, Mexico, Turkey, and some other countries.
`
`We have an exciting journey ahead of us with the launch of Dymista, expansion into Emerging Markets, and a
`broader plalfonn for OTC products. Concurrently, there are external factors that have a negative effect on Meda's
`sales and earnings. Some southern European countries are suffering from declining sales and we continually
`adapt our costs to maintain profitabi lity. The stonn Sandy has affected our distribution and short-term work on the
`East Coast in the US. Fortunately no one was hurt of our employees and the work of pre-launching Dymista is
`now proceeding.
`
`Anders Lonner
`
`Group President and CEO
`
`SALES
`
`For information on sales trends for major products, see the table on page 17. Definitions of geographic regions
`and product categories are presented on page 20.
`
`January-September
`
`Net sales for the period amounted to SEK 9,796 million (9,400). At fixed currency rates, sales increased 5%.
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 2 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504047
`
`PTX0393-00002
`
`2
`
`

`

`Sales by geographic area
`
`(SEK million)
`
`Western Europe
`USA
`Emerging Markets
`Other Sales
`
`Total sales
`
`Jan-Sep
`2012
`6,439
`1,841
`1,353
`163
`
`Jan-Sep
`2011
`5,974
`1,930
`1,194
`302
`
`9,796
`
`9,400
`
`IN DEX
`
`108
`95
`113
`54
`
`104
`
`INDEX (FIXED
`EXCHANGE RATES)
`110
`92
`116
`56
`
`105
`
`Sales for Western Europe over the period were SEK 6,439 million (5,974), repre senting a 10% increase at fixed
`exchange rates. The underlying organic growth for the region amounted to 4%, driven by the launch of new OTC
`products as well as growth in Germany, Britain, the Netherlands, and Belgium. The sales trend in southern
`Europe was weaker than last year.
`
`USA sales amounted to SEK 1,841 million (1 ,930), representing an 8% decrease at fixed exchange rates. The
`organic sales trend for the period was -20% since Felbatol, Soma, and some other older products faced generic
`competition. Revenues from the cooperation agreement with Valeant totaled SEK 410 million.
`
`Sales in Emerging Markets amounted to SEK 1,353 million (1, 194), representing a 16% increase at fixed
`exchange rates. Organic growth amounted to 10%, primarily driven by good performance in Russia, the Middle
`East, and Mexico.
`
`Other Sales amounted to SEK 163 million (302). The decrease compared to last year was mainly due to a
`cessation of service revenue from the cooperation agreement with Valeant and other non-recurring revenue.
`
`Sales by product category
`
`(SEK million)
`
`Specialty Products
`OTC
`Branded Generics
`Other Sales
`
`Jan-Sep
`2012
`6 ,092
`2,307
`1,097
`300
`
`Jan-Sep
`2011
`5,989
`1,854
`1 '125
`432
`
`Total sales
`
`9,796
`
`9,400
`
`INDEX
`
`102
`124
`98
`69
`
`104
`
`INDEX (FIXED
`EXCHANGE RATES)
`103
`126
`97
`70
`
`105
`
`Sales in Specialty Products amounted to SEK 6,092 million (5,989), representing a 3% increase at fixed
`exchange rates. Growth in this category is attributable to acquired products, since organic growth for the period
`amounted to -4% . Specialty Products was affected negatively by the weak performance of Felbatol, Soma, and
`others in the US and Minitran in western Europe.
`
`OTC sales amounted to SEK 2,307 million (1 ,854), representing a 26% increase at fixed exchange rates. Organic
`growth was 12% for the period, primarily driven by new lau nches in Europe.
`
`Sales in Branded Generics totaled SEK 1 ,097 million (1 , 125 ), which is a 3% decrease at fixed exchange rates.
`Organic growth in this category was -1 %.
`
`Other Sales amounted to SEK 300 million (432). The decrease compared to last year was mainly due to a
`cessation of service revenue from the cooperation agreement with Valeant and other non-recurring revenue.
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 3 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504048
`
`PTX0393-00003
`
`3
`
`

`

`July-September
`
`Net sales in 03 amounted to SEK 3,038 million (3,223). At fixed exchange rates, sales were in line with the same
`period last year. Changes in exchange rates affected sales negatively by SEK 126 million, and revenue from the
`deal with Valeant was 124 million lower than last year.
`
`Sales by geographic area
`
`(SEK million)
`
`Western Europe
`USA
`Emerging Markets
`Other Sales
`
`Total sales
`
`03 2012
`
`03 2011
`
`INDEX
`
`2,005
`574
`409
`50
`
`3,038
`
`2,021
`686
`379
`137
`
`3,223
`
`99
`84
`108
`36
`
`94
`
`INDEX (FIXED
`EXCHANGE RATES)
`105
`84
`113
`37
`
`99
`
`Sales in Western Europe in 03 were SEK 2,005 million (2,021 ), representing a 5% increase at fixed exchange
`rates. Organic growth amounted to 3%. Performance in Spain and Italy weakened in 03 compared to 02.
`
`USA sales amounted to SEK 574 million (686), representing a 16% decrease at fixed exchange rates. Organic
`growth was -18%, which is the same as in 02. Meda launched Dymista late in the quarter, which resulted in sales
`at the wholesale level of SEK 31 million. Revenues from the cooperation agreement with Valeant totaled SEK 127
`million.
`
`Sales in Emerging Markets amounted to SEK 409 million (379), representing a 13% increase at fixed exchange
`rates. Organic growth reached 14% after a strong quarter in Russia, Mexico, Turkey, and other countries.
`
`Other Sales amounted to SEK 50 million (137) due to a cessation of service revenue from the cooperation
`agreement with Valeant.
`
`Sales by product category
`
`(SEK million)
`
`Q3 2012
`
`Q3 2011
`
`INDEX
`
`Specialty Products
`OTC
`Branded Generics
`Other Sales
`
`Total sales
`
`1,868
`759
`325
`86
`
`3,038
`
`2,028
`651
`364
`180
`
`3,223
`
`92
`117
`89
`48
`
`94
`
`INDEX (FIXED
`EXCHANGE RATES)
`97
`122
`92
`52
`
`99
`
`Sales in Specialty Products amounted to SEK 1,868 million (2,028), representing a 3% decrease at fixed
`exchange rates. Organic growth in 03 amounted to -4%.
`
`OTC sales amounted to SEK 759 million (651 ), representing a 22% increase at fixed exchange rates. The
`continuing launch of SB12 and Nalox in several European markets contributed to the 18% organic growth in the
`OTC portfolio for 03.
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 4 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00. Fax: +46 8-630 19 50. Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504049
`
`PTX0393-00004
`
`4
`
`

`

`Sales in Branded Generics totaled SEK 325 million (364), which Is an 8% decrease at fixed exchange rates.
`Organic growth amounted to -5%. This is mainly due to the weak performance of the generic version of Astelin
`and of Prefera in the US.
`
`Other Sales amounted to SEK 86 million (180) due to a cessation of service revenue from the cooperation
`agreement with Valeant.
`
`PROFIT
`
`For earnings that exclude currency effects, see the table on page 18.
`
`Operating profit
`
`Januarv-September
`
`Operating profit for January-September amounted to SEK 1,442 million (1 ,986).
`
`EBITDA for the same period was SEK 3,043 million (3,493), yielding a 31.1% margin (37.2).
`
`Operating expenses for January-September amounted to SEK 4,553 million (4,002).
`
`Selling expenses for 03 amounted to SEK 2,094 million (1 ,727). As previously stated, investments in the OTC
`area, market investments in Emerging Markets, and costs related to the pre-launch of Dymista in the US have all
`increased.
`
`July-September
`
`Operating profit for July-September reached SEK 338 million (641 ).
`
`EBITDA for the same period was SEK 868 million ( 1 , 17 4 ), yielding a 28.6% margin (36.4 ).
`
`The gross margin compared to last year was negatively impacted by lower revenues from the cooperation with
`Valeant and product mix effects in Germany, France, and elsewhere .
`
`Selling expenses for 03 amounted to SEK 678 million (617). Medicine and business development expenses for
`03 amounted to SEK 638 million (633), and administrative expenses for Q3 amounted to SEK 164 million (151 ).
`
`Financial items
`
`Januarv-September
`
`Group net financial items for January-September were SEK -412 million (-455). The average interest rate at
`September 30, 2012, was 3.2% (3.7).
`
`Profit after net financial items for January-September totaled SEK 1,030 million (1 ,531 ).
`
`July-September
`
`Group net financial items for Q3 were SEK -129 million (-178).
`
`Profit after net financial items for Q3 totaled SEK 209 million (463).
`
`Net profit and earnings per share
`
`Januarv-September
`
`Net profit for January-September totaled SEK 823 million (1 ,098).
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 5 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504050
`
`PTX0393-00005
`
`5
`
`

`

`Group tax expense for the same period amounted to SEK 207 million (433), equivalent to a tax rate of 20.1%
`(28.3).
`
`Earnings per share for January-September were SEK 2.79 (3.65).
`
`Julv-September
`
`Net profit for July-September amounted to SEK 169 million (345).
`
`Group tax expense for the same period amounted to SEK 40 million (118), equivalent to a tax rate of 19.1%
`(25.5).
`
`Earnings per share for July-September reached SEK 0.59 (1.14).
`
`CASH FLOW
`
`Januarv-September
`
`Cash flow from operating activities, before changes in working capi tal, for January-September increased to
`SEK 2,426 million (2,389).
`
`Cash flow from change in working capital was SEK -462 million (-175) for January-September. Last year's tied-up
`capital decreased by SEK 248 million as a result of the cooperation agreement with Valeant, for which Meda
`received USD 76 million in initial payments in June 2011 . Excluding the effect of this cooperation agreement, cash
`flow from change in working capital was SEK -423 million for January-September 2011.
`
`Inventories rose by SEK 261 million during the period foremost as a result of building new product inventories.
`Receivables increased working capital by SEK 100 million due to longer credit periods on average in certain
`European markets. Liabilities had a negative effect on cash flow of SEK 101 million.
`
`Cash flow from operating activities for January-September amounted to SEK 1,964 million (2,214).
`
`Year-to-date cash flow from investing activities amounted to SEK -155 million (-4,867). Investments were primarily
`related to maintenance investments in Group manufacturing units and minor product-related investments.
`
`Cash flow from financing activities amounted to SEK -1 ,719 million (2,750) for January-September.
`
`Cash earnings per share reached SEK 6.18 (7.13) for the same period.
`
`July-September
`
`Cash flow from operating activities before change in working capital for 03 amounted to SEK 687 mi llion (843).
`
`Cash flow from change in working capital totaled SEK -139 million (-203) for 03. Inventories rose by SEK 106
`million during the period as a resu lt of product launches in the OTC areas and lower sales in certain southern
`European markets. Receivables lowered tied-up capital by SEK 53 million. Liabilities had a negative effect on
`cash flow of SEK 86 million, mainly driven by fluctuations in payment of trade payables.
`
`Cash flow from operating activities amounted to SEK 548 (640).
`
`Cash flow from financing activities reached SEK -515 million (-467) in 03.
`
`Cash earnings per share reached SEK 1.72 (2.03) for the same period .
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 6 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504051
`
`PTX0393-00006
`
`6
`
`

`

`FINANCING
`
`On September 30, equrty stood at SEK 14,609 million, compared to SEK 14,971 million at the year's start, which
`corresponds to SEK 48.3 (49 .5) per share. The equity/assets ratio was 40.5% compared to 38.7% at the start of
`the year.
`
`Group net debt stood at SEK 15,228 million on September 30, compared to SEK 17,36 1 million at the year's start.
`
`PARENT COMPANY
`
`Net sales for January-September reached SEK 4,206 million (3,268), of which intra-Group sales represented SEK
`2,791 million (2,137).
`
`Profit before appropriations and tax reached SEK 1,335 million (2,319).
`
`Net financial items amounted to SEK 870 million (1 ,738).
`
`Cash and cash equivalents amounted to SEK 0 compared to SEK 0 at year-end 2011 .
`
`Investments in intellectual property rights during January-September were SEK 24 million (245), and investments
`in property, plant, and equipment totaled SEK 1 million (0).
`
`Financial assets on September 30, 2012, totaled SEK 23,792 million , compared to SEK 24,510 million at the end
`of last year.
`
`AGREEMENTS AND KEY EVENTS
`
`• MEDA ACQUIRES WOMEN'S HEALTH PRODUCTS IN THE US
`
`In September, Meda signed an agreement with Jazz Pharmaceuticals for the acquisition of six women's health
`drugs. The biggest and most important product is Elestrin, a patented product with sales of nearly SEK 100
`million. Elestrin is intended for the treatment of moderate to severe vasomotor symptoms (hot flashes) associated
`with menopause. Since its launch in 2007, Elestrin has become a leading brand in the US for topical estrogen
`therapy. The acquisition increases Meda's presence in an area in which it already operates, and Meda's sales of
`products in the field of women's health care will amount to more than SEK 500 million when the new products are
`added to the existing portfolio. The acquisition was completed in mid-October 2012.
`
`ZYCLARA APPROVED IN EUROPE
`
`Meda has received marketing approval for Zyclara from the European Commission . Zyclara (imiquimod 3.75%
`cream) is a patented product for the treatment of actinic keratosis. The approval covers the entire EU.
`
`Actinic keratosis (AK), early skin cancer in situ , is an under-diagnosed and under-treated disease, and the
`number of affected patients is increasing. There is a close co-existence of invisible (subclinical actinic keratoses)
`and clinically visible actinic keratoses on the skin areas that have been exposed to the sun-a phenomenon
`known as "field cancerization" (multiple AK).
`
`Zyclara is the first clinically proven treatment option that can detect and eliminate subclinical and clinical actinic
`keratoses on large areas of skin . In a major clinical development program , Zyclara was shown to be an effective
`treatment for eliminating both types of AK with a low recu rrence rate.
`
`MOTION FOR REDUCTION OF SWEDISH CORPORATE TAXES
`
`On September 13, 2012, the Swedish government proposed a reduction in the corporate tax rate in Sweden from
`26.3 percent to 22.0 percent. If the proposal is Implemented, it will have a positive non-recurring effect related to
`the reversal of deferred tax liability of about SEK 200 million. The proposed change is expected to have only a
`marginal effect on the Group's effective tax rate.
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 7 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden , Tel: +46 8-630 19 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504052
`
`PTX0393-00007
`
`7
`
`

`

`EVENTS AFTER THE REPORTING DATE
`
`NOMINATION COMMITTEE APPOINTED
`
`A nomination committee was appointed as per the policies adopted at the 2012 annual general meeting.
`Members of the nomination comm ittee are:
`
`Karl Magnus Sjolin, committee chair, Siena Sessan Rederi AB
`Bert-Ake Eriksson, Meda's board chairman, Siena Sessan Rederi AB
`Bengt Belfrage, Nordea's Funds
`Evert Carlsson , Swedbank Robur Funds
`Anders Oscarsson , AMF Funds
`
`FORECAST
`
`The forecast for the full-year 2012 is:
`
`"The Meda Group expects to achieve sales close to SEK 13,000 million and an EBITDA margin of around 30
`percent."
`
`RISKS AND UNCERTAINTIES
`
`The Meda Group's business is exposed to financial risks. Meda's 2011 annual report describes these risks on pp.
`84-86. Several other factors, not fully under Meda's control, affect the Group's operations. Factors judged
`particu larly significant to Meda's future growth are: competitors and pricing, actions by authorities, partnerships,
`market assessments, results of clinical trials, key individuals and recruitment, product liability, patents, and
`trademarks. The 2011 annual report describes these types of risks (pp. 130-132).
`
`ACCOUNTING POLICIES
`
`Group
`
`Meda complies wi th the EU-approved I FRS standards and their interpretations (IFRIC). This interim report was
`prepa red as per International Accounting Standard (lAS) 34 , Interim Financia l Reporting. The Group uses the
`same accounting policies as applied in the 201 1 annual report. Further information about Group reporting and
`valuation principles is detailed in Note 1 on pp. 79-83 of the 2011 annual report.
`
`Parent company
`
`The parent company applies RFR 2, Accounting for Lega l Entities.
`
`Changes in external reporting
`
`Changed segment information
`
`As of January 1, 2012, Meda reports three geographic regions (Western Europe, USA, Emerging Markets) as well
`as Other Sales . The geographic seg ments are assessed in EBITDA, which is recognized as per the new
`structu re. With this change, the external reporting reflects the internal control.
`
`Meda AB (publ) - Interim report January-September 2012
`
`Page 8 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden. Tel: +46 8-630 19 00, Fax: +46 8-630 19 50. Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504053
`
`PTX0393-00008
`
`8
`
`

`

`Geographic areas as of January 1, 2012:
`
`Western Europe- Western Europe, excluding the Baltics, Poland, Czech Republic, Slovakia, and Hungary
`
`USA- Including Canada
`
`Emerging Markets- Eastern Europe, including the Baltics, Poland, Czech Republic, Slovakia, and Hungary,
`Turkey, the Middle East, Mexico, and other non-European markets
`
`Other Sales- Revenues from contract manufacturing, services, and other income
`
`2012 YEAR-END REPORT
`
`The 2012 year-end report will be presented on February 19, 2013.
`
`The board of directors and CEO hereby confirm that this interim report provides a true and fair view of the parent
`company's and Group's operations, position, and performance, and describes material risks and uncertainties
`faced by the parent company and Group companies.
`
`Stockholm, November 9, 2012
`
`Bert-Ake Eriksson
`Board chairman
`
`Peter Claesson
`Board member
`
`Peter von Ehrenheim
`Board member
`
`Marianne Hamilton
`Board member
`
`Tuve Johannessen
`Board member
`
`Anders lonner
`CEO
`
`Lars Westerberg
`Board member
`
`For more information, contact
`
`Anders lamholt,
`VP Corporate Development and Investor Relations
`
`Phone: +46 8-630 19 62
`+46 709-458 878
`
`The company's auditors did not review this interim report.
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 9 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504054
`
`PTX0393-00009
`
`9
`
`

`

`FORWARD-LOOKING STATEMENTS
`
`This report is not an offer to sell or a solicitation to buy shares in Meda. This report also contains certain forward(cid:173)
`looking statements with respect to certain future events and Meda 's potential financial performance. These
`forward-looking statements can be identified by the fact that they do not relate only to historical or current facts
`and may sometimes include words such as "may", "will", "seek", "anticipate ", "expect'; "estimate'; "intend'; "plan",
`"forecast'; "believe", or other words of similar meaning. These forward-looking statements reflect the current
`expectations on future events of the management at the time such statements are made, but are made subject to
`a number of risks and uncertainties. In the event such risks or uncertainties materialize, Meda 's results could be
`materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent
`uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the
`impact of competitive products, patents, legal challenges, government regulation and approval, Meda's ability to
`secure new products for commercialization and/or development, and other risks and uncertainties detailed from
`time to time in Meda AB's interim or annual reports, prospectuses, or press releases. Listeners and readers are
`cautioned that no forward-looking statement is a guarantee of future performance and that actual results could
`differ materially from those contained in the forward-looking statement. Meda does not intend or undertake to
`update any such forward-looking statements.
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 10 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00. Fax: +46 8-630 19 50. Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504055
`
`PTX0393-0001 0
`
`10
`
`

`

`Consolidated condensed income statement
`
`SEK million
`
`Net sales
`Cost of sales
`Gross profit
`
`January-September
`2012
`2011
`
`Change
`
`July-September
`2012
`2011
`
`9,796
`-3,801
`5,995
`
`9,400
`-3,412
`5,988
`
`4%
`
`3,038
`-1 220
`1,818
`
`3,223
`-1 ' 181
`2,042
`
`Chane
`
`-6%
`
`Selling expenses
`Medicine and business
`development expenses 1
`Administrative ex enses
`Operating profit (EBIT)
`
`Net financial items
`Profit for the period after net
`financial items (EBT)
`
`Tax
`Net profit
`
`-2,094
`
`-1 ,727
`
`-1 ,936
`-523
`1,442
`
`-1 ,814
`-461
`1,986
`
`-412
`
`-455
`
`1,030
`
`1,531
`
`-207
`823
`
`-433
`1,098
`
`Profit attributable to: Parent
`company shareholders
`Non-controlling interests
`Net profit
`
`842
`-19
`823
`
`1,103
`-5
`1,098
`
`-678
`
`-638
`-164
`338
`
`-129
`
`209
`
`-40
`169
`
`176
`-7
`169
`
`-617
`
`-633
`-151
`641
`
`-178
`
`463
`
`-118
`345
`
`347
`-2
`345
`
`-499
`
`January-
`December
`2011
`
`12,856
`-4 ,657
`8,199
`
`-2,449
`
`-2,468
`-638
`2,644
`
`-604
`
`2,040
`
`-432
`1,608
`
`1,616
`-8
`1,608
`
`-1 ,913
`
`' Of which amortization of product
`rights
`
`-1 ,512
`
`-1,413
`
`-501
`
`EBITDA
`
`3,043
`
`3,493
`
`868
`
`1,174
`
`Amortization, product rights
`Depreciation and amortization,
`other
`Operating profit (EBIT)
`
`-1,512
`
`-1,413
`
`-89
`1,442
`
`-94
`1,986
`
`-501
`
`-29
`338
`
`-499
`
`-34
`641
`
`4,683
`
`-1 ,913
`
`-126
`2,644
`
`EBITDA (excluding non-
`recurring effects)
`Key ratios related to earnings
`Operating margin, %
`Profit margin, %
`EBITDA, %
`EBITDA (excluding non-
`recurring effects)
`Return on capital employed ,
`rolling 12 months, %
`Return on equity, rolling 12
`months,%
`
`3,043
`
`3,493
`
`-13%
`
`868
`
`1,174
`
`-26%
`
`4,722
`
`14.7
`10.5
`31 .1
`
`31.1
`
`6.8
`
`9.1
`
`21 .1
`16.3
`37.2
`
`37.2
`
`8.1
`
`9.0
`
`11 .1
`6.9
`28.6
`
`28.6
`
`19.9
`14.4
`36.4
`
`36.4
`
`20.6
`15.9
`36.4
`
`36.7
`
`8.8
`
`11 .1
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 11 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden. Tel: +46 8-630 19 00, Fax: +46 8-630 19 50. Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504056
`
`PTX0393-00011
`
`11
`
`

`

`Grou ~ statement of com~rehensive income
`
`SEK million
`
`Net profit
`
`January-September
`2011
`2012
`
`July-September
`2012
`2011
`
`January-
`December
`2011
`
`823
`
`1,098
`
`169
`
`345
`
`1,608
`
`Translation difference
`Net investment hedge, after tax
`Cash flow hedges, after tax
`Other comprehensive income for the period,
`net of tax
`
`-961
`480
`-24
`
`-505
`
`541
`-262
`-11
`
`-773
`363
`-12
`
`268
`
`-422
`
`Total comprehensive income
`
`318
`
`1,366
`
`-253
`
`411
`-144
`-27
`
`240
`
`585
`
`588
`-3
`
`585
`
`4
`31
`-11
`
`24
`
`1,632
`
`1,640
`-8
`1,632
`
`337
`-19
`318
`
`1,371
`-5
`1,366
`
`-246
`-7
`-253
`
`Profit/loss attributable to:
`Parent company shareholders
`Non-controlling interests
`Total comprehensive income
`
`Share data
`
`Earnings per share
`Basic earnings per share , SEK
`Diluted earnings per share , SEK
`
`Average number of shares
`Basic (thousands)
`Diluted (thousands)
`
`Number of shares on closing day
`Basic (thousands)
`Diluted ~thousands l
`
`January-September
`2012
`2011
`
`July-September
`2012
`2011
`
`January-
`December
`2011
`
`2.79
`2.79
`
`3.65
`3.65
`
`0.59
`0.59
`
`1.14
`1.14
`
`5.35
`5.35
`
`302,243
`302,243
`
`302,243
`302,243
`
`302,243
`302,243
`
`302 ,243
`302 ,243
`
`302,243
`302,243
`
`302,243
`302,243
`
`302,243
`302,243
`
`302,243
`302,243
`
`302 ,243
`302,243
`
`302,243
`302,243
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 12 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00. Fax: +46 8-630 19 50. Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504057
`
`PTX0393-00012
`
`12
`
`

`

`Consolidated condensed balance sheet
`
`SEK million
`
`ASSETS
`
`Non-current assets
`- Property, plant, and equipment
`· Intangible 1
`-Other non-current assets
`Non-current assets
`Current assets
`- Inventories
`· Current receivables
`- Cash and cash eguivalents
`Current assets
`
`Total assets
`
`EQUITY AND LIABILITIES
`
`September 30 September 30 December 31
`2012
`2011
`2011
`
`778
`29,855
`681
`31,314
`
`1,900
`2,603
`221
`4,724
`
`799
`32,483
`739
`34,021
`
`1,825
`2,858
`207
`4,890
`
`36,038
`
`38,911
`
`811
`32,306
`592
`33,709
`
`1,780
`3,089
`140
`5,009
`38,718
`
`Equity
`
`14,609
`
`14,705
`
`14,971
`
`Non-current liabilities
`• Borrowings
`- Pension obligations
`· Deferred tax liabilities
`- Other liabilities, non-interest-bearine
`Non-current liabilities
`
`Current liabilities
`• Borrowings
`- Short-term, non-interest-bearing
`Current liabilities
`
`Total equity and liabilities
`
`12,588
`715
`2,799
`292
`16,394
`
`2,147
`2,888
`5,035
`36,038
`
`14,312
`810
`2,738
`302
`18,162
`
`2,424
`3,620
`6,044
`
`14,913
`786
`2,735
`280
`18,714
`
`1,802
`3,231
`
`38,911
`
`38,718
`
`101 which goodwill
`
`13,730
`
`14,629
`
`14,361
`
`Key ratios affecting balance sheet
`
`Net debt
`Net debUequity ratio, times
`Equity/assets ratio, %
`Equity per share, SEK (at end of period)
`
`15 228
`1.0
`40.5
`48.3
`
`17 322
`1.2
`37.8
`48.7
`
`17 361
`1.2
`38.7
`49.5
`
`Meda AB (publ) - Interim report January-September 2012
`
`Page 13 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden. Tel: +46 8-630 19 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504058
`
`PTX0393-00013
`
`13
`
`

`

`January-September
`2012
`2011
`
`July-September
`2012
`2011
`
`Group condensed cash flow statement
`
`SEK million
`
`Profit after financial items
`Adjustments for items not included in cash flow
`Net change in pensions
`Net change in other provisions
`Income taxes eaid
`Cash flow from operating activities before
`change in working capital
`
`Cash flow from change in working capital
`Inventories
`Receivables
`Liabilities
`Cash flow from operating activities
`
`1,030
`1,634
`-36
`3
`-205
`
`1,531
`1,505
`-2
`-134
`-511
`
`2,426
`
`2,389
`
`-261
`-100
`-101
`
`1,964
`
`-211
`-384
`420
`2,214
`
`209
`553
`-27
`35
`-83
`
`687
`
`-106
`53
`-86
`
`548
`
`January-
`December
`2011
`
`2,040
`2,028
`-3
`-243
`-692
`
`463
`53 1
`0
`-38
`-113
`
`843
`
`3,130
`
`-96
`-147
`40
`640
`
`-153
`-378
`259
`2,858
`
`Cash flow from investing activities
`
`-155
`
`-4,867
`
`-34
`
`-92
`
`-5,669
`
`Cash flow from financin activities
`Cash flow for the period
`
`Cash and cash equivalents at period's start
`Exchange-rate difference for cash and cash
`e uivalents
`
`Cash and cash equivalents at period's end
`
`-1 ,719
`
`90
`
`140
`
`-9
`221
`
`2,750
`97
`
`111
`
`-1
`
`207
`
`-515
`
`-1
`
`230
`
`-8
`221
`
`-467
`
`81
`
`124
`
`2
`
`207
`
`2,844
`
`33
`
`111
`
`-4
`
`140
`
`Ke ratios related to cash flow
`
`Free cash flow, SEK million
`Cash earnings eer share, SEK
`
`1 867
`6.18
`
`2 155
`7.13
`
`521
`1.72
`
`615
`2.03
`
`2 742
`9.07
`
`Consolidated statement of changes in equity
`
`SEK million
`
`Opening balance, equity
`Dividend
`
`September 30 September 30 December 31
`2012
`2011
`2011
`14,971
`13,925
`-680
`-604
`-19
`13
`
`13,925
`-604
`10
`
`337
`
`14,609
`
`1,371
`
`14,705
`
`1 640
`
`14,971
`
`Meda AB (publ) - Interim report January-September 2012
`
`Page 14 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-630 19 00. Fax: +46 8-630 19 50, Email: info@meda .se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504059
`
`PTX0393-00014
`
`14
`
`

`

`Information on geographic markets
`
`SEK million
`
`External net sales
`Western Eu rope
`USA
`Emerging Markets
`Other Sales
`
`EBITDA
`Western Europe
`USA
`Emerging Markets
`Other Sales
`
`January-September
`2012
`2011
`
`July-September
`2012
`2011
`
`January-
`December
`2011
`
`6,439
`1,841
`1,353
`163
`9,796
`
`2,380
`841
`310
`-488
`3,043
`
`5,974
`1,930
`1,194
`302
`9,400
`
`2,396
`1,051
`367
`-321
`3,493
`
`2,005
`574
`408
`51
`3,038
`
`707
`216
`83
`-1 38
`868
`
`2,021
`686
`379
`137
`3,223
`
`758
`359
`109
`-52
`1,174
`
`8,052
`2,636
`1,633
`535
`12,856
`
`3,1 50
`1,394
`432
`-293
`4,683
`
`Meda AB (publ)- Interim report January-September 2012
`
`Page 15 (of 20)
`
`Pipers vilg 2A, Box 906, SE-170 09 Solna, Sweden . Tel: +46 8-63019 00, Fax: +46 8-630 19 50, Email: info@meda.se,
`www.meda.se, Corp. ID no.: 556427-2812
`
`MEDA_APTX03504060
`
`PTX0393-00015
`
`15
`
`

`

`Condensed income statement for the parent company
`
`SEK million
`
`Net sales
`Cost of sales
`
`Gross profit
`
`Other operating income
`Selling expenses
`Medicine and business development expenses
`Administrative ex enses
`
`Operating profit (EBIT)
`
`Net financial items
`Profit for the period after net financial items
`(EBT)
`
`Aeeroeriations and tax
`Net
`rofit
`
`January-September
`2011
`2012
`
`4,206
`-2 ,593
`
`1,613
`
`20
`-187
`-833
`-148
`
`465
`
`870
`
`1,335
`
`-910
`
`425
`
`3,268
`-1 ,776
`
`1,492
`
`47
`-162
`-704
`-92
`
`581
`
`1,738
`
`2,319
`
`-525
`
`1 794
`
`Condensed balance sheet for the parent company
`
`SEK million
`
`ASSETS
`
`Non-current assets
`- Intangible
`- Property, plant, and equipment
`-Financial
`Total non-current a