GROW OUR EXISTING PRODUCTS • EXPAND INTO ADJACENCIES • ACQUIRE NEW TECHNOLOGIES • RETURN TO SHAREHOLDERSCAPITAL MARKETS DAYSTRATEGIC PLAN GEAR 2023
PARIS, APRIL 18, 2018

Disclaimer
Certain information included in this presentation and other statements or materials published by Guerbet (the “Company”) are not historical facts but are
forward-looking statements. These forward-looking statements refer in particular to the Company’s management’s business strategies, its expansion andgrowth of operations, future events, trends or objectives and expectations, which are naturally subject to risks and contingencies that may lead to actual
results materially differing from those explicitly or implicitly included in these statements.
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and any opinion expressed in this presentation is subject to change without notice. Such forward looking statements are for illustrative purposes only.
Forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which
are difficult to predict and generally beyond the control of the Company. These risks and uncertainties include among other things, the uncertainties
inherent in research and development of new products, including future clinical trial results and analysis of clinical data (including post-marketing data),
decisions by regulatory authorities, such as the Food and Drug Administration or the European Medicines Agency, regarding whether and when to approve
any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labelling and othermatters that could affect the availability or commercial potential of such product candidates. A detailed description of risks and uncertainties related to
the Company’s activities is included under Chapter 4.3 “Risk factors” in the Registration Document (Document de Référence) of the Company which has
been filed with the French Financial Markets Authority on April 5, 2017 under the number n°D-17-0323 and is available on the Company’s website(www.guerbet.com).
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Guerbet – Capital Markets Day – 18 April 20182

Today’s speakers
YVES L’EPINE

JEAN-FRANÇOIS LE MARTRET

Chief Executive Officer

DAVID HALE

Chief Commercial Officer
Diagnostic Imaging

Guerbet – Capital Markets Day – 18 April 2018

Chief Financial OfficerFRANÇOIS NICOLAS
Chief Digital Officer

THOMAS BONNEFONT

Commercial Vice-PresidentInterventional Imaging

3

Reinforced management team to achieve GEAR 2023 objectives
OVERVIEW OF LEADERSHIP TEAMYVES L’EPINE
Chief Executive Officer

JEAN-FRANÇOIS LE MARTRET
Chief Financial Officer

DAVID HALE
Diagnostic Imaging Chief
Commercial Officer
Joined in 2018

JEAN-FRANÇOIS BLANC
Technical Operations VP

PIERRE DESCHÉ
Medical, Development &Regulatory Affairs VP

ISABELLE RAYNAL
Strategic ProjectsFRANÇOIS NICOLAS
Chief Digital Officer
Joined in 2017

CLAIRE COROT
Research, Innovation, BD&L VP

ALAIN CHONÉInternal Control and Audit

THOMAS BONNEFONTInterventional Imaging
Commercial VP

JEAN-RÉMY TOUZE
Human Resources VP

CLAIRE DURAND
Government Affairs

All of those employees directly report to Yves L’Epine
Guerbet – Capital Markets Day – 18 April 2018

4

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 20185

A longstanding family-backed scientific, industrial and businesssuccessA SCIENTIFIC, INDUSTRIAL AND BUSINESS SUCCESS
1901

Marcel Guerbet discovers Lipiodol®

1926

André Guerbet founds the Laboratoire André Guerbet et Cie

1964

Michel Guerbet succeeds his father as head of the company(100 employees and 5 million francs in sales)

1986

Guerbet listed on the Paris stock exchange

2013

Dotarem® launch in the USA

2014

New indication for Lipiodol® in trans arterial chemo-embolisationof liver cancer

2015

Acquisition of Mallinckrodt’s contrast media and delivery
system (CMDS): Guerbet doubles its size and becomes aworld leader in medical imaging

2017

Acquisition of antireflux microcatheters from Accurate Medical
Therapeutics: Guerbet accelerates in Interventional Imaging

2018

Launch of the new 5 year ambition: GEAR 2023

Guerbet – Capital Markets Day – 18 April 2018

A STRONG FAMILY BACKING AND HIGH QUALITY INVESTORS BASE

2.2%
Employees(or ex)

40.2%
Float

1.4%
Registered(ex family)

Shareholding
as of 31 Dec. 2017
56.0%

0.2%
Treasury shares

Guerbet family(shareholder
agreement andregistered)6Guerbet: A leading global medical imaging player
PROFILE
Guerbet is structured around two franchises: Diagnostic
Imaging (DI) and Interventional Imaging (II)In DI, Guerbet has successfully consolidated its markets andis now a leading global player:
The world #2 in MR imaging contrast media
The world #4 in CT & Cath lab imaging contrast media
The world #3 in contrast media injection Medical Devices
and Services
1 patient injected every second (c 36 million Guerbet
contrast media doses sold / year)
In II, Guerbet has recently launched this franchise where it
gained credibility through its flagship product, Lipiodol®. It
has recorded since then a strong double digit CAGR

A robust R&D portfolio balanced across both franchises

Guerbet – Capital Markets Day – 18 April 20182017 KEY FIGURES€807.1+4.7%

million revenue

year-on-year growth atconstant exchange rate

€130

2.1x

million EBITDA (16.1% margin)

Net Debt/EBITDA

80+

2,750

Presence in more than 80
countries through our affiliates
and network of distributors

9

employees, of whichmore than 200 in R&D

specialized manufacturing plants

7

A global R&D, production and distribution footprint

SALES SPLIT1

50%
EMEA

x2
x4

30%

Latam & North America

17%
APAC

3%

Country with direct sales
Country with distributor(s)Other (sales to third
parties)

R&D
Production
Note 1: based on 2017 sales

Guerbet – Capital Markets Day – 18 April 20188

Two franchises: Diagnostic Imaging and Interventional Imaging€728.1 million1 revenue (93%)

Mature market with natural single digit growth
Guerbet’s core business, Group is well positioned to grasp
opportunities

A

Strong brands with leadership positions in both MR and CT Cath lab
modalities after CMDS acquisition

Diagnostic
Imaging

Highly regulated (pharmaceuticals or MD) with significant barriers
to entry
Key clients focus: productivity gains and cost reduction€56.6 million1 revenue (7%)

Double-digit market growth

Increasing use of minimally invasive image guided procedures
which progressively replace or complement surgical acts

B Interventional
Imaging

Guerbet leveraging its flagship product and R&D expertise to growin selected segments
Acquisition of Accurate Medical Therapeutics
Key clients focus: clinical outcome improvement

1 Excluding revenue for third parties

Guerbet – Capital Markets Day – 18 April 20189

A balanced and comprehensive offering across modalities
CONTRAST MEDIA

Dotarem®

MEDICAL DEVICES AND SERVICES

Artirem®

MR

OptiStar Elite®

Injection
consumables(syringes andtubing)DigitalSolutions
NewA

Optiray®

Diagnostic
Imaging

Xenetix®

OptiVantage®LF Hydra FlowSens®
Vision®
New

CT &Cath lab

Dose&Care

Conray®

Telebrix®

Gastroview®
AngiomatIllumena®

Patent Blue V
B

OptiOne®

Vectorio®

Interventional Imaging
Lipiodol® UltraFluid

Guerbet – Capital Markets Day – 18 April 2018

New

Standard/
Anti-reflux
MicrocathetersNew

10

A leadership in innovation to drive value creation in both franchises
RESEARCH AND EARLY
DEVELOPMENT

Contrast
Media

A

Diagnostic
Imaging

Medical
DevicesandServicesInterventional Imaging

REGISTRATIONLAUNCH (< 2 YEARS)

P03277 phase 2b-

Dotarem Neonates®
United States

Optistar®
upgradesOptiOne® CT
LATAM, South-East Asia,
China

1

Optivantage®
upgradesDotarem®
Canada, Poland, South
Africa, Puerto Rico

Illumena® Neo
China
FlowSens®
upgrades1

B

LATE DEVELOPMENT

Urologic imagery systems
upgradesDose&care®

FlowSens® andconsumables
China

Contrast&care®

Accurate

Accurate

EMEA

US

Lipiodol®

Lipiodol®

Lipiodol®

new indications

China

EMEA wave 2 & ASEAN

Vectorio®

Vectorio®

EMEA wave 2, China

EMEA wave 1 & ASEAN

1 Confidential

Guerbet – Capital Markets Day – 18 April 201811

A successful growth story
Acquisition of CMDS
Revenue CAGR 2012-2017: +14.9%

KEY HIGHLIGHTS+6.8%(3.4%)+4.9%+19.5%+58.7%

+4.0%

+5.5%

(1.3%)+5.6%+10.0%(1.7%)

+4.7%

775.8

Revenue

807.1

Guerbet changed
scale in Diagnostic
Imaging with the CMDS
acquisition

488.7
403.5

389.7

409.0

2012

2013

2014

Reported growth (%)

Guerbet – Capital Markets Day – 18 April 2018

Solid track-record ofgrowth with an organic
CAGR of +3.7% over
2012-2017

Successful
turnaround of anunderperforming
business (-20% 2-year
CAGR before
acquisition)
2015

2016

2017

Sales turnaround in
all geographies

Growth at constant FX and perimeter (%)

12

Two fast-growing activities
Diagnostic Imaging

Interventional Imaging

93% of Revenue

7% of Revenue

Revenue CAGR 2013-2017 : +18.9%

Revenue CAGR 2013-2017 : +27.4%

Revenue evolution (€m)

Revenue evolution (€m)
698,6

384,8

364,9

728,1
45,5

414,2

373,4

15,4

2012

2013

2014

2015

2016

2017

2012

21,5

2013

55,5

56,6

2016

2017

31,8

2014

2015

51%
38%
11%

MR

Data excluding revenue for third parties

Guerbet – Capital Markets Day – 18 April 2018

Lipiodol®
Ultra-Fluid

PatentBlue V

Vectorio®

MD&S: Medical Devices and Services

13

A profitable growth and a strong deleveraging capacity

EBITDA
13.6%

13.4%

16.5%

18.1%

Financial leverage (Net debt /EBITDA)Net income
13.7%

16.1%

5.1%

5.3%

EBITDA margin

6.4%

8.0%

3.7%

5.7%

Net income
margin

130.0
106.3

CMDS Acquisition
fully debt financedwith rapid
deleveraging from
3.3x in 2015 to 2.1x in
2017

88.3

39.2

52.1

20.4

2012 2013 2014 2015 2016 2017

Guerbet – Capital Markets Day – 18 April 2018

2.8x

2.1x
46.2

67.7
54.9

3.3x

20.5

26.1

1.8x

1.6x

28.9

2012 2013 2014 2015 2016 2017

0.9x

2012 2013 2014 2015 2016 201714

Strong share price performance since 2012€100

2012 – 2015
Strengthening of the fundamentals

2015 – 2017
CMDS acquisition: buildingof an international player€902018 onwards
A new chapter

€80
€70
€60
€50
€40
€30
€20
€10
Jan-12

Jan-13Jan-14Jan-15
GuerbetJan-16

Jan-17Jan-18

SBF 120 - rebased

Source : Factset as of 13/04/2018

Guerbet – Capital Markets Day – 18 April 201815

Superior shareholder returns
2012

2013

2014

2015

2016

2017

Earnings per share (€)

1.67

1.58

2.14

3.21

2.33

3.68

Dividend per share (€)

0.50

0.50

0.50

0.65

0.85

0.851

Pay-out ratio

30%

32%

23%

20%

36%

23%1

€43M

€665M

€622M
€815M

Total
shareholder
return: 354%
vs. SBF 120: 78%€193M

Market Cap. as of Jan 2012

Current market cap.

Market Cap. Growth

Dividends distributed
since January 2012

Total shareholder return

1. 2017 dividend per share proposed to the AGM
Source : Factset as of 09/03/2018 (dividend reinvested)

Guerbet – Capital Markets Day – 18 April 201816

GEAR 2023: Grow, Expand, Acquire, Return

Grow our existing products
Expand into adjacencies
Acquire new technologies
Return to shareholders

Guerbet – Capital Markets Day – 18 April 2018

Standalone
Perimeter

Bedrock of GEAR 2023: stable andcash generative business

Internal
Boost

Organic growth acceleration
based on targeted investments inthe current perimeter where there
are market opportunities

External
Boost

M&A opportunities to complement
organic growth and generatehigh margin accretion

17

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201818

A new stage in the Group's development

Industrial
structuring

Businessdevelopment

2005
2012

2013
2014

Growth driven by the
MR segment

Launch of
Dotarem® in the US

Large investments incapacity

Launch of ourInterventional
Imaging franchise

Guerbet – Capital Markets Day – 18 April 2018

Building of aninternational leader

A new chapter

2015
2017

2018
beyondAcquisition of CMDS
in 2015 to consolidate

Acquisition of Accurate
Medical Therapeutics in2018 to accelerate

Diagnostic Imaging
Value creation
through successful
integration(optimization of
combined assets)

Interventional Imaging
Value creation throughinternal growth initiatives
and targeted acquisitions

19

Guerbet markets offer growth opportunities
GUERBET EXPOSURE1

MR

A

Diagnostic
Imaging

CT &Cath lab

Medical
DevicesandServices

B Interventional Imaging

35%

48%

10%

7%

MARKET SIZE ADDRESSABLE BY
GUERBETc. €1.0bnc.€2.7bnc. €1.2bn> €1.6bn

MARKET GROWTH POTENTIAL

Volume: Value:  or 

Volume: Value: Volume: Value: Volume: 
Value: 1 Based on 2017 revenue excluding revenue for third parties

Guerbet – Capital Markets Day – 18 April 201820

Targeted internal and external boost initiatives across both franchises
INTERNAL BOOST

Key initiatives

Develop new best-in-class contrast media(P03277)A

Diagnostic
Imaging

Interventional
Imaging

C Corporate

Launch Augmented Intelligence programs

Go-direct in Japan
Capture growth opportunities in key
geographies: US, Europe and China

Strengthen digital solutions

B

EXTERNAL BOOST

Targeted acquisitions, particularly in Medical
Devices and Services

Develop Lipiodol® new indications
Develop and accelerate Accurate Medical
Therapeutics solutions

Acquire high growth targets

Cost and working capital focus

Guerbet – Capital Markets Day – 18 April 201821

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201822

Contrast media and injectors play a key role in the overall diagnostic
imaging space
WHY ARE THEY USED?

WHERE ARE THEY USED?

Enhances diagnostic image to better:

Detect internal injuries and internal bleeding
Example CT Exam
W/o Contrast

With Contrast

CT Exams

Detect and monitor diseases such as cancer,
heart disease, lung nodules and liver masses

50% of 188m1+ exams p.a.

Cath Lab

Guide procedures such as surgery, biopsy andradiation therapy

Guerbet offering

100% of 9m1+ exams p.a.

MR Exams

Pinpoint tumors, infections or blood clot

HOW OFTEN ARE THEY USED?

30% of 97m1+ exams p.a.

1 OECD only (25 Countries - excludes LATAM, India & China) and Guerbet Internal Analysis

Guerbet – Capital Markets Day – 18 April 201823

Underlying fundamentals and drivers of the market very solid despite a
few areas of concern
KEY GROWTH DRIVERS

Diagnostic Imaging
procedures

KEY TRENDS IN THE MARKET

IMPACT

MR / CT machine and exam volume increasing globally
Increased demand for diagnostic image-guided procedures

New imaging centres being built… Hospital beyond 4 walls
19m to 20m new cancer cases p.a. by 2025

Demographics / Aging
population

By 2030, senior population to represent 20% of the total U.S. population andto double in China to 178m people+70% of people suffering dementia by 2030

Healthcare spend in
emerging markets

China - targeting a $1.3 trillion Healthcare industry by 2020
India Healthcare Market growing 18% CAGR through 2022 with a 10 times
increase in disposable income for middle class
Increased presence of generics

Regulation of use ofContrast Media

Concerns on Gadolinium detachment after injection of some MR contrast
agents may drive down tendency to inject
Reimbursement rates being driven down

Source : Guerbet internal analysis

Guerbet – Capital Markets Day – 18 April 201824

Solid fundamentals driving a €5bn mature contrast media and injectors
market with single digit growth expected over the coming years

0,6

0,49

GLOBAL MR CM MARKETIN M LITERS

GLOBAL CT CM MARKETIN M LITERS

GLOBAL INJECTOR SOLUTIONS MARKET
IN €BNCAGR +4%

CAGR +3%

CAGR +8%

0,5

0,51

0,53

0,57

15,0

0,4

10,0

0,2

5,0

0

0,0
2019







2020

2021

2022

2023

Increase in number of MR scanners
Rise of chronic diseases best served by MR
with contrast
Shift from linear to macrocyclic agents
Arrival of generics drives down ASP
Concerns on Gadolinium detachment after
injection of some MR contrast agents

12,2






13,0

13,3

13,7

2,0
1,5

1,2

1,3

2019

2020

1,5

1,6

2021

2022

1,7

1,0

0,5
0,0
2019



12,6

2020

2021

2022

2023

Installed base of CT scanners growing
globally
Scan rates with contrast rising as emerging
markets advanceHighly commoditized market leading to
declining ASPs
CT Capability allowing reduction of dose /
exam







2023

Rapid innovation possible (medical device
vs. pharma)
Safer and more efficient than manual
injection
Rise in minimally invasive surgery  precise
injections
Copycat low price consumables

Source : Guerbet internal analysis

Guerbet – Capital Markets Day – 18 April 201825

Diagnostic Imaging: A consolidated and maturing market

MR contrast media market expected to face slow growth perspectives in value
Threat of generic penetration and associated pricing pressure that may offset the growth in volume
CT & Cath Lab contrast media market expected to grow sustainably at a low single-digit rate
Growth opportunities in Medical Devices and Services that remain fragmented

MR

CT & Cath lab

Medical Devices and Servicesc.€1.0bn marketc.€2.7bn marketc.€1.2bn market







#1

Player A#1

Player C#1

Player A#2

Guerbet#2Player B#2

Player B#3

Player B#3

Player A#3

Guerbet#4Player C#4

Guerbetc.27% share

c.14% share

c.7% share#4, #5, #6…

Source : Guerbet internal analysis

Guerbet – Capital Markets Day – 18 April 201826

Combining breadth of portfolio with Guerbet's key strengths to drive
profitable growth in and around our core business
PORTFOLIOMR

CT & CATH LAB
Optiray®
Telebrix®

Dotarem®
Conray®
Artirem®

Xenetix®

Gastroview®
FlowSens®

OptiVantage®

KEY GUERBET "STRENGTHS"

1Minimize generics impact
on Dotarem®

Portfolio – One stop Shop forsolutions2

Increase Integrated Offerings

Strong product offering in
growing Medical Devices
and Services

3

Develop new best-in-class contrast
media (P03277)

Brand Strength = Safety First

4

Go-direct in Japan5

Capture growth opportunities in key
geographies: US, Europe and China

6

Strengthen digital solutions

7

Launch Augmented Intelligenceprograms

8

Targeted acquisitions

Strong brands across all
market segments

Global Reach ...
Direct and Channel
Relationships with
Radiologists

OptiStar Elite®
AngiomatIllumena®

OptiOne®

Injection consumables (syringes and tubing)Technical Services
Digital Solutions (Contrast&Care, DoseCare)Key GEAR 2023 initiatives
Guerbet – Capital Markets Day – 18 April 201827

1

Minimize generics impact on Dotarem®

A STRONG BRAND

NEW GENERIC COMPETITION

A strong brand with a positive
benefit / risk assessment confirmedby health authorities

Competition coming progressively
since 2015, first in South Korea, thenin Europe

Well established product withradiologists (penetration >30% in all
markets with sales subsidiary formore than 5 years)

Arrival of a new generic competingwith Dotarem® in Europe in 2017,and in the USA estimated startingin 2019

Excellent Safety Profile – No unconfounded cases of NSF1 after
70M+ injections of Dotarem®

GROWTH OPPORTUNITIESRoom for growth on markets with a
newly established subsidiary: USA,South Africa, Poland and Japan(October 2018)
Several regulatory bodies (European
Medicines Agency, Japanese
Ministry of Health, Labour andWelfare) with recommendations infavor of macrocyclic vs. linear MR
contrast media
A stable macrocyclic agent
satisfying authorities’ aim to prioritize
agents with lower risk of Gadolinium
detachment

1 Nephrogenic Systemic Fibrosis

Guerbet – Capital Markets Day – 18 April 201828

1

Dotarem® supported by shift towards macrocyclics

Problem: Every MR contrast agent contains a toxic element, Gadolinium (Gd)
Objective: Surround the Gadolinium with a structure that is as stable aspossible so no Gadolinium can be released before the contrast agent
naturally leaves the body

Expected Shift from Linear to Macrocyclic in Global Volume
K Liters

Solution: Macrocyclic agents because they provide a significantly morestable structure to contain the gadolinium
137

LinearMacrocyclic

Total CAGR 2017-23: +4.1%
Macrocyclic CAGR 2017-23: +9.8%

109

65

45

Macrocyclic
314

2017

362

2018

33

25

Linear

22

497

526

551

425

464

2019

2020

2021

2022

2023

Molecular stability of macrocyclics vastly superior tolinear agents

Eg. Optimark®,
Magnevist®, Multihance®,
Omniscan ®

Dotarem®, Gadovist®,
Prohance®

Shift to Macrocyclic being accelerated by regulatory
authority recommendations around the world~130K Liters of "additional" macrocyclic opportunity overnext 5 years

Source : Guerbet internal analysis

Guerbet – Capital Markets Day – 18 April 201829

2

Growing our injector franchise by creating integrated offerings andbuilding out our services“PRINTER MODEL"THE GUERBET PLAY

“The Printer"

Injector Installed BaseTHE OPPORTUNITY
16,000 injectors in Guerbet
installed baseContrast Media Format withstrong link to injector (e.g..
Scanbag & FlowSens)€12.5k in consumables andinjectors per year vs. €3.3k
currently"The Cartridge"

Contrast Media
Consumables
Services

Guerbet – Capital Markets Day – 18 April 2018

Current maintenance contract
capture rate below 10% at €2.5k
per injector and per year

THE PLAYBOOK TO EXECUTE ...
Tightening relationships with
Medical Device (CT & MR) OEMs:
Philips, Siemens, Canon
Launching of new injectors
Internalize and differentiate ourmaintenance and services
platform
Launch of digital services

Improved COGS & quality for LF
disposables
Potential acquisition
opportunities

30

INTERNAL BOOST

3

New best-in-class contrast media development (P03277)
KEY FEATURESTIMELINE

P03277: successor compoundof Dotarem®

Objective

P03277

Like Dotarem®, it is amacrocyclic agent (lower riskof Gd detachment)

Phase I

Study tolerance in healthy volunteersAnd its relaxivity (contrasting
power) is superior to all othermacrocyclic (and linear)agentsPhase II

Compare contrasting effectiveness vs.
leading productPhase III

Test effectiveness and tolerance vs.
relevant comparator on a large sampleof patients

Ready to start

LaunchCommercial launch

Currently ready for Phase III
Launch target in 2022
Potential to capture a leading
market share in approved
indications within 5 years postlaunchGuerbet – Capital Markets Day – 18 April 2018

2022

31

3

P03277 phase II B first results demonstrating very positive outcomes

INTERNAL BOOST

Phase IIB criteria met

P03277 at half dose (0.05 mmol/kg) showed similar contrast enhancement as leading product at full dose (0.1 mmol/kg)
P03277 at full dose (0.1 mmol/kg) demonstrated superiority for contrast enhancement vs. leading product at full dose (0.1mmol/kg)
EXAMPLE 1

Leading Product@ 0.1 mmol/kg
Guerbet – Capital Markets Day – 18 April 2018

EXAMPLE 2

Guerbet P03277@ 0.1 mmol/kg

Leading product@ 0.1 mmol/kg

Guerbet P03277@ 0.1 mmol/kg
32

INTERNAL BOOST

4

Go-direct in Japan: Growth opportunity by building own distribution
platform
THE #2 DIAGNOSTIC IMAGING
MARKET WORLDWIDEMARKET PENETRATION SINCE
2015 WITH PARTNERSHIPOPPORTUNITY TO BUILD SCALE
WITH OWN DISTRIBUTION PLATFORM#2 market for Contrast Media for
MR and CT globallyPartnership established in
October 2015 with Fuji Pharma
for distribution of:

Guerbet brands now establishedin JapanHigh number of MR / CT
scanners per capita

Market estimated at c. €700m

Dotarem® distributed under
Magnescope® brand inJapan for MR

Country with 127m inhabitants

Optiray® for CT & Cath lab

8,500 hospitals

Lipiodiol® for Interventional
Imaging

Opportunity to build scale byinvesting in own distribution
platform
Increase market share in
products already distributedin JapanPossibility to launch otherproducts in Japan going
forward

Go-Direct on target to start October 2018 ... Currently on-boarding Sales Teams

Guerbet – Capital Markets Day – 18 April 201833

INTERNAL BOOST

5

Capture growth opportunities in key geographies:
US, Europe and China
FURTHER PENETRATE MARKET:UNITED STATESCONSOLIDATE POSITION:EMEACAPTURE MARKET GROWTH:
MAINLAND CHINA

Key Market Facts

Key Market Facts

Key Market Facts
Largest market: $2bn in2019

Largest Guerbet
market: 50% of net
sales

More than 50% of US
adults with a chronic
health condition

Bringing technical services in house to
grow services business
Launching digital offerings to bring value
added services (productivity, traceability)

Fastest growth: +9% CAGR

Excellent network withradiologists and key
academic societies

40% of population withCVD by 2030

Strategy & Plan

#3 largest market: $625m
by 2019

Strategy & Plan
Focusing on Injector Solution Opportunities(bundled offers + services) with dedicatedsales teams
Aggressively pursuing capture of Linear to
Macrocyclic shift

High Government
investments in healthcare
infrastructures

Strategy & Plan
Signed for a new distributor agreementwith WGY
Dotarem® only branded Macrocyclic
reimbursed in the market
Launching integrated offers (Contrast
Media + injector + services)
Exploring local manufacturing options for
consumables

Guerbet – Capital Markets Day – 18 April 201834

INTERNAL BOOST

6

Digital solutions to tackle rising pressure on traditional healthcare
modelsCONTEXTSOFTWARE TO DRIVE OPERATIONAL OUTCOMES
Connected solutions in core business

Shortage ofclinicians

Connected injectors

Admin, traceability, localisation,
replenishment

Increasing specialization
SOFTWARE TO DRIVE CLINICAL OUTCOMES
Rising regulations

Disruptive Business in synergy with contrast

Liver cancer decision support
Cancer early detection, staging andtreatment response

Reimbursement/
cost pressure

Guerbet – Capital Markets Day – 18 April 201835

INTERNAL BOOST

6

Software to drive operational outcomes for the clients&Care Platform

CommonPlatform
Multiple
Applications

OUTCOMES FOR OUR CUSTOMERS
Productivity…&CareDose&Care

Reduce admin time
Simplify protocol management

Monitors patients
exposure to Xrays
Collects data fromall ionizing
Features/
Functions

Tracks patient
exposure history
Fulfils regulatory
dose reporting
requirements

Patient Information

Future possibilities

Injection History

ProtocolManagement

Red-Flag Patients

Traceability
Batch Recalls

Remote Service

Compliance Adherence
Traceability
Regulatory reporting

Geolocalisation

Adverse Events

OUTCOMES FOR GUERBET

Save admin. Time
Barcode / RFID

Customer stickiness - Integrated intheir workflow

Injection Analytics

Financial - Recurring SaaS revenue stream

A modular offering based on a SaaS business model to address key customer pain points

Guerbet – Capital Markets Day – 18 April 201836

Software to drive clinical outcomes: Augmented intelligence initiatives

EXTERNAL BOOST

7

Highly attractive market with tremendous
change & opportunities

Global commercial and medical network …
Great relationships with radiologists … provides medical
insight and legitimacy to sell digital solutions

Ability to move fast to build product portfolio and adapt
sales force

Guerbet – Capital Markets Day – 18 April 201837

EXTERNAL BOOST

7

Why radiology needs augmented intelligence?
GLOBAL SHORTAGE
OF RADIOLOGISTS

A growing and ageing population
Amount of images increases very
fast with technology
Need for enhanced productivity

Guerbet – Capital Markets Day – 18 April 2018SUPPORT USE OF MASSIVE DATAIN MEDICINEIMPROVE PATIENT OUTCOMES

Combine large omics datasetswith images to create diseasesignatures

Lower rate of misdiagnosis,
reduce false positives and false
negatives

Aggregate patient data for
personal medicine

Provide tissue characterizationfrom images (virtual biopsy)

Stay current with science, even in
non-expert centers

Personalize treatment based onearly treatment response38

7

Guerbet has a global network with great relationships with radiologists … provides medical insights and legitimacy to sell AI solutions

EXTERNAL BOOST

400+

Sales Reps

45

Medical scientific liaisons28

Subsidiaries

60+

Distributors

30+

Congresses/year

Country with direct sales
Country with distributor(s)Guerbet – Capital Markets Day – 18 April 2018

2,000

Customer touchpoint/day39

Example of opportunities for augmented intelligence to improveliver cancer management

EXTERNAL BOOST

7

Surveillance
Process
stepHigh risk patients

CT or MR

Mostly UltrasoundDifferential diagnosis
with benign/othermalignancies

CT/MR for very highrisk patients
NASH risk stratification

Opportunity

Prediction of progression
to cirrhosis and HCC
Improve detection rate

Guerbetproducts

Diagnosis

Dotarem®, Xenetix®,
Optiray®

Guerbet – Capital Markets Day – 18 April 2018

Improvesensitivity/specificity ofsmall nodule detection

Detect all mets

Dotarem®, Xenetix®,
Optiray®

Staging & Therapy
Selection
Prognosis of tumor
aggressivenessPrediction of responseStandardize therapy
selection
Predict surgical success

Dotarem®, Xenetix®,
Optiray®

Treatment
Surgery, ablation,
TACE, TARE,
chemotherapy,
immunotherapy

Standardize
interventional
procedures

Evaluate procedure
success in real time

Lipiodol® Ultra-Fluid,
Accurate

Treatment Response
Assess response anddecide on treatment
next step

Assess therapy response,
per therapy
Help decide when to
retreat/stop

Dotarem®, Xenetix®,
Optiray®

40

EXTERNAL BOOST

7

Potential of radiomics: Identify imaging biomarkers invisible tohuman eye… ultimately enabling virtual biopsies

Standard
Process

VOXELS

RECONSTRUCTED IMAGE

RADIOLOGIST INTERPRETATIONVOXELS

IMAGE PROCESSING & AI

VIRTUAL BIOPSYRadiomics

Guerbet – Capital Markets Day – 18 April 201841

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201842

Targeted internal and external boost initiatives in Interventional Imaging
INTERNAL BOOST

Key initiatives

Develop new best-in-class contrast media(P03277)A

Diagnostic
Imaging

Interventional
Imaging

C Corporate

Launch Augmented Intelligence programs

Go-direct in Japan
Capture growth opportunities in key
geographies: US, Europe and China

Strengthen digital solutions

B

EXTERNAL BOOST

Targeted acquisitions, particularly in Medical
Devices and Services

Develop Lipiodol® new indications
Develop and accelerate Accurate Medical
Therapeutics solutions

Acquire high growth targets

Cost and working capital focus

Guerbet – Capital Markets Day – 18 April 201843

Interventional Imaging: Strong growth opportunity
WHAT IS INTERVENTIONAL IMAGING?

EXAMPLE OF LIVER TUMOR

Buoyant field at the forefront of medical technology &innovation

Liver tumor

Physicians’ hands guided by Imaging with neither incisions nor
GA
Quicker & less invasive than surgery with day procedure vs. longstay
Patient-friendly alternative to surgery with quicker back-to-work
periodOptions

Favored by health authorities thanks to reduced care cost & lesspost procedure complications
Some of the best-known therapies:
stenotic arteries vascular dilatation

Resection / surgery

Destruction / Interventional
Imaging

vascular anomalies embolization (aneurysms or varices)tumors embolization by intra arterial proceduretumors ablation using physical agents
vertebroplasty & other orthopedic procedures
indications poised to broaden in the coming years
Guerbet – Capital Markets Day – 18 April 201844

Interventional Imaging: Value for all stakeholders
BENEFITS

Better care experience & outcomes

Patients

Less post procedure complications
Quicker back-to-work period



Minimized risk
Great accuracy
Interventional
radiologists

Hospitals

Healthcare payers

Guerbet – Capital Markets Day – 18 April 2018

High effectiveness
Minimized risk
Higher turnover of patients
Reduced logistics issues

Reduced care cost
Quicker patient’s convalescence & return to work




45

Guerbet: Leveraging existing expertise to penetrate targeted segments
Description

Addressable by Guerbet?

Valvuloplasty, TAVI etc.
Heart

Cardiac rhythm management
Coronary dilatation & stenting

Tumors /Pain

Tumor destruction by ablation,
embolization, other.
Liver, kidney, breast, uterus,
prostate, brain, lung, etc.



CNS (stroke, aneurysm)
Vascular

Peripheral arteries (aneurysm)
Veins



Lymphatic
Bone /
JointsVertebroplasty etc.

Guerbet – Capital Markets Day – 18 April 2018

Specialty area

Market size

Interventional
oncology> €0.6bn

Interventional
vascular> €0.8bn

Interventional
optimized delivery> €0.2bn46

Guerbet credibility mainly built upon Lipiodol, standard of care intrans arterial chemo embolization for in situ treatment of liver cancers

Guerbet – Capital Markets Day – 18 April 201847

Building a product offering to address growth opportunities

CONTRAST MEDIAMEDICAL DEVICES & SERVICESGUERBET
Guerbet is leveraging its
credibility (commercial
footprint and R&D wellknown
expertise) to:

Lipiodol®

Vectorio®

Interventional
ImagingStandard
Microcatheters
Anti-reflux
Microcatheters
PatentBlue V

Guerbet – Capital Markets Day – 18 April 2018i.

internally develop newdelivery devices for
improved II procedures.
Example Vectorio

ii. screen and evaluate newtechnologies in II andbuild a product offering
through a bolt-on
acquisition strategy.
Example : Accurate
Medical Therapeutics

48

Vast & synergistic universe of potential new products for Guerbet

EXTERNAL BOOST

INTERNAL BOOST

Existing and potential universe

Existing
product offering

Potential
product offering

Interventional
Oncology

Interventional
VascularInterventional
Optimized Delivery

LIPIODOL in
Hepatocellularcarcinoma(HCC)

LIPIODOL in vascularembolization

VECTORIO

LIPIODOL in lymphatic
embolization

ACCURATE µ-catheters

ABLATION

LIQUID EMBOLIC & GLUE

NEW II KITS for LIPIODOLMICROSPHERES / DRUG ELUTINGBEADSCOILS & PLUGSROBOTIC & GUIDING

TRANS-ARTERIAL RADIOEMBOLIZATIONHIGH INTENSITY FOCUSEDULTRASOUND

Guerbet - uniquely positioned to address those identified, profitable and rapidly growing segments thanks to its
commercial footprint and well-known R&D credibility
Guerbet – Capital Markets Day – 18 April 201849

INTERNAL BOOST

Organic potential for Lipiodol® in new indications
Interventional Immuno-Oncology

Interventional Women Healthcare / Fertility

Lipiodol® Ultra-Fluid HCC + Immuno-Oncology
To combine the loco-regional liver directed therapy powerwith the extremely promising efficacy of Immune therapies

Lipiodol® in Hystero-Salpingo-Graphy (HSG)
Results published in the New England Journal of Medicine(H2Oil Randomized Controlled Trial)

Press release

April 2018

Guerbet announces its partnership with Lausanne’s CHUV andCET to launch a clinical study aimed at evaluating the activating
effects of Lipiodol®-based conventional transarterial
chemoembolization (cTACE) on the immunity of patients with
hepatocellular carcinoma

May 2017
Oil-Soluble Contrast Media (OSCM) or Water-Soluble Contrast
Media (WSCM) for Hysterosalpingography in Infertile Women

LIPIODOL

Can cTACE play an essential role by activating or restoring the global
and/or local immune system in patients with checkpoint inhibitors
treatments?

OSCM group(N=554)

WSCM group(N=554)Rate Ratio(95% CI)

220 (39.7%)

161 (29.1%)

1.37 (1.16 – 1.61)
p < 0.001

Ongoing
pregnancy
rate

Guerbet - uniquely positioned to address new promising indications
Guerbet – Capital Markets Day – 18 April 201850

Strong market opportunity in embolization
INTERNAL BOOST

Procedures (in thousands of units)
870

900

cTACE

DEB TACE

TARE

Bland Embolization

Liver cancer directed embolizations

800

680

700
600
510

EXTERNAL BOOST

500

460

400

A high potential market (value &volume) where Lipiodol is Standard-ofCare

DEB TACE (trans arterial
chemo embolization withbeads)
A market led by strong players

TARE (trans arterial radio
embolization)

300

A small market in volume but highly
valued (High price)

200
100
0

cTACE (trans arterial
chemo embolization with
Lipiodol)Bland embolization
2016a 2017a 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e 2026e 2027e

A huge market with many types of
products (Liquid embolics, PVA
particles, microspheres …)

Source : TEO report (market data +/- 10%) – without Coils & Plugs
Guerbet – Capital Markets Day – 18 April 201851

Strong market opportunity in ablation
EXTERNAL BOOST

Procedures (in thousands of units)
Radiofrequency (RFA) &Microwave (MWA)
ablation

600
RFA

MWA

Cryoablation

IRE

510
500

400

Technologies lead the global market
of ablation (in volume & value) with
big players

360
Cryoablation

300
220
200

A high potential market with lesscompetitors

170

100

Irreversible
electroporation (IRE)-

A small market but a profitableevolution over the coming years
2016a 2017a 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e 2026e 2027e

Source : TEO report (market data +/- 10%)
Guerbet – Capital Markets Day – 18 April 201852

INTERNAL BOOST

Case study: Acceleration of interventional imaging through theacquisition of Accurate Medical Therapeutics
Company
Founded in 2015

Technology

Products

Accurate’s fluid barrier technology

Standard Microcatheters

A proprietary fluid dynamics based technology forsafe and targeted embolization
Michael TAL
Founder & CSO
Interventional Radiologist

Eran MILLER
Co-founder & CEO

Anti-reflux Microcatheters

CANCER

Other characteristics similar to the most advanced
microcatheters

LivertumorsRenaltumors

Prostate
Adenomas

Regulatory pathway
510(k) obtained and CE Mark filed

Accurate deal structure
Acquisition: 100% of capital share
Payment: upfront (€19.5m) + earn out (€37.5m)

IP
5 patent applications pending
Methods and apparatus for creating a dynamic fluid
barrier to prevent reflux

Guerbet – Capital Markets Day – 18 April 2018

Preoperative
Embolizationof tumors

Vascular
Anomalies

Closing date: 8 February 2018
Exclusively financed by debt

Objective: positive EBITDA in Q4 2019
Quick Return on investment

Lung
tumorsStop
Hemorrhages
UterineFibromas53

INTERNAL BOOST

Accurate Medical Therapeutics: the anti-reflux technology to avoid
embolization of non targeted arteries
Today main limit of Trans Arterial Embolization:
The reflux linked to standard microcatheters triggers
an undesired embolization of healthy tissues

Innovative microcatheter designed to create a fluid
barrier for enhanced and targeted embolization

Creation of an external fluid barrier that:

Tumor

Embolic
agent

Normal flow
Embolic agents
toward the tumor

Catheter Tip

Healthy
Tissues

Tumor

Embolic
agent

Normal flow
Embolic agents
toward the tumor

Prevents embolic material backflow +reduces risk of artery spasm
Increases drug delivery into tumors

Healthy
TissuesNON TARGETED EMBOLIZATIONPRESERVATION OF HEALTHY TISSUES

Reflux often occurs along the catheter, sending
the chemotherapy backward into non-targetedtissue (healthy tissue)

Antireflux system

Guerbet – Capital Markets Day – 18 April 201854

Accurate Medical technology
INTERNAL BOOST

Treat More, Damage Less !

Guerbet – Capital Markets Day – 18 April 201855

Pillars of Guerbet external boost strategy in Interventional Imaging
EXTERNAL BOOST

Goal:
Build a unique portfolio through bolt-on acquisitions of mainly start-up players (replicating the
Accurate Medical Therapeutics model)
Reach €100M to €150M new revenue in 2023
High margin sales with favorable impact on global Ebitda / Sales ratio

Guerbet competitive advantages:
R&D expertise to identify and evaluate innovative technologies from start up companies
Commercial footprint to launch and accelerate their market penetration
Fast decision making for acquisition (close loop between Executive Committee and Board of
Directors)

Pipeline of realistic targets already identified
Ambition to sign 2 new deals before end of 2018

Guerbet – Capital Markets Day – 18 April 2018

56

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201857

Q1 2018 sales by segment of products
In million of euros

20172018 @
current FX%

2018 @
constant FX%

Diagnostic Imaging

185.3

161.0

-13.1%

172.4

-7.0%

MR

66.5

61.3

-7.8%

65.0

-2.3%

CT & Cath Lab

97.9

81.6

-16.6%

87.8-10.3%

Medical Devices andServices

20.9

18.1

-13.4%

19.6

-6.2%

Interventional Imaging

12.3

13.7

11.4%

14.7

19.5%

Other (sales to third party)

5.5

8.5

54.5%

9.4

70.9%

Total

203.1

183.2

-9.8%

196.5

-3.2%

Guerbet – Capital Markets Day – 18 April 2018

Sales down -3.2% atconstant exchange rates
Unfavourable baseeffect vs. strong Q1
2017
Impact of destocking
on Optiray® at the endof 2017, mostly in
China, Latam and USA
Despite genericcompetition, Dotarem® is
growing globally
Robust performance inInterventional Imaging:+19.5% at constantexchange rates58

Q1 2018 sales by region
In million of euros

20172018 @
current FX%

2018 @
constant FX

%

EMEA

98.2

91.8

-6.5%

93.3

-5.0%

Latam & North America

63.4

52.2

-17.7%

60.4

-4.7%

APAC

36.2

30.7

-15.2%

33.4

-7.7%

Other

5.3

8.5

60.4%

9.4

77.4%

Total

Guerbet – Capital Markets Day – 18 April 2018

203.1

183.2

-9.8%

196.5

-3.2%

€13.3m negative FX
impact of which €8.2m in
Latam & North America

EMEA: performance
impacted price pressure
on Dotarem® arising fromgeneric competition
Latam & North Americaand APAC: performance
impacted by Optiray®
Destocking effect,
which should
disappear from Q2

59

Dotarem®: Impact of generic competition in-line with expectations
IMPACT OF GENERIC COMPETITION ON DOTAREM® PERFORMANCE IN EUROPE
REFERENCE PERIOD(Q4 2016 + Q1 2017)

LAST 6 MONTHS(Q4 2017 + Q1 2018)% CHANGE

VolumeBase 100

102

+2%

Price

Base 100

88-12%

Revenue

Base 100

89-11%

Guerbet – Capital Markets Day – 18 April 2018

Generic competition in
Europe resulted in pricepressure of -12%, in-linewith expectations

No significant impact onvolumes, as genericcompetition is more thanoffset by positive impactof switch from linear to
macrocyclic products

60

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201861

Summary of GEAR 2023 initiatives
INTERNAL BOOST

Key initiatives

Develop new best-in-class contrast media(P03277)A

Diagnostic
Imaging

Interventional
Imaging

C Corporate

Launch Augmented Intelligence programs

Go-direct in Japan
Capture growth opportunities in key
geographies: US, Europe and China

Strengthen digital solutions

B

EXTERNAL BOOST

Targeted acquisitions, particularly in Medical
Devices and Services

Develop Lipiodol® new indications
Develop and accelerate Accurate Medical
Therapeutics solutions

Acquire high growth targets

Cost and working capital focus

Guerbet – Capital Markets Day – 18 April 201862

INTERNAL BOOST

Cost focus plan with a 2% to 3% per annum COGS reduction target

PROCUREMENT

Procurement cost savings

MANUFACTURING

Larger volumes

Continued improvement ofindustrial processes

Rationalization of number ofsuppliers

Continued remodeling of
manufacturing footprint

Optimization of load factor
Bring production closer tocustomers: reduction of cycle
time, reduction oftransportation costs, higher
competitiveness

BACK OFFICE

Roll-out of shared services centers
across the Group allowing torationalize back-officeFinance

IT
Legal
HR
Supply chain

One center per world region
EMEA: Prague (CZ)
Americas: St. Louis (MO)APAC: Hong Kong

Guerbet – Capital Markets Day – 18 April 2018

63

INTERNAL BOOSTA deterioration of working capital since CMDS acquisition…
Evolution of net operational working capital (€m)1

Improvement over 2012-2014 (preCMDS acquisition) with a decrease
in inventories and receivables

61.0%

37.9%
% of
revenue

35.3%

39.6%

42.4%

34.9%

342.2
298.2

153.1

2012

137.6

2013

307.5

Increase in inventories andreceivables due to CMDS
consolidation

Lower level of sales at Group
level

142.9

2014

Deterioration with the CMDS
acquisition in 2015

2015

2016

2017

Since CMDS acquisition, payables
were back to a normal level, butinventories still to be improved

1 Net operational working capital defined as inventories + receivables - payables
Guerbet – Capital Markets Day – 18 April 201864

INTERNAL BOOST… leaving room for improvement

Improve slow moving inventory
Better sales forecast
Relabeling opportunities

Working
capitalinitiatives

Portfolio pruning
Substitution between doses and volumes (e.g. 150ml vs 125ml)
Keep control on accounts receivable collection
Maintain DSOs below 65 days

TargetWorking capital as percentage of sales, back to pre-CMDS acquisition level

Guerbet – Capital Markets Day – 18 April 201865

2018 outlook
Revenue

Sales stable vs. 2017 at constant exchange rates

EBITDA margin vs. 2017 down c.2 percentage points of revenue, excluding one-off impacts,
due to full year impact of Dotarem®

EBITDA

One-off impacts of c. -€10m at EBITDA level
Integration of Accurate Medical Therapeutics
Transition to go-direct in Japan

Capex of c. €50m

Cash flow

Neutral to positive change in working capital despite Accurate Medical Therapeutics andJapan one-offs
Payment of Accurate Medical Therapeutics’ acquisition upfront considerations of €19.5m
and of part of the earn-out consideration of €37.5m, which is to be paid in several installments
over 2018-2020, subject to performance conditions

Guerbet – Capital Markets Day – 18 April 201866

2020 targets
Standalone Perimeter

Internal Boost

Between €850m and €900m at constant exchange rates

Revenue

External
Boost
EBITDAEBITDA margin above 16.5%

Cash flow

Capex structurally remaining at c. €50m
One-off capex of c. €10m in 2020 and 2021 (ERP roll-out across CMDS)
Working capital as percentage of sales, back to pre-CMDS acquisition level

Guerbet – Capital Markets Day – 18 April 201867

2023 targets
Standalone Perimeter

Revenue

Internal Boostc. €1.0bn at constant exchange rates

External
Boost
EBITDAEBITDA margin above 20%

Cash flow

Capex structurally remaining at c. €50m

Guerbet – Capital Markets Day – 18 April 2018

68

EXTERNAL BOOST

External Boost targets

Currently following a focused pipeline of companies across targeted Diagnostic Imaging
segments and Interventional Imaging
Current
pipeline

Companies in the pipeline with a variety of profiles: sizes, financials, development
maturities…

… but all of them could be additive to Guerbet’s products offering

Revenue

External Boost initiatives to be achieved over 2018-2023 targeted to contribute an
additional €150m to €250m of revenue in 2023

EBITDA

Overall positive impact on Group EBITDA margin by 2023

Guerbet – Capital Markets Day – 18 April 2018

69

GEAR 2023 financial policy

1

Maintain net debt to EBITDA below 3.5x2

Keep a stable dividend policy with a pay-out ratio
target in the range of 25% to 35%

3

Optimize return to shareholders

Guerbet – Capital Markets Day – 18 April 201870

Key pillars of Guerbet GEAR 2023
Accelerating a company that will shape the future of medical imaging (diagnostic and interventional)
Robust stand-alone business case built on its two pillars in medical imaging, in particular P03277 andLipiodol new indications
Well-identified opportunities for adding organic growth to stand-alone business caseSignificant external growth potentials
Guerbet, a natural partner for many players thanks to its long-established credibility in R&D and to its
commercial footprint
Capacity to make fast deals (CMDS, Accurate Medical) thanks to its entrepreneurial spirit and agility indecision

Guerbet – Capital Markets Day – 18 April 2018

71

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201872

Contents

1 Reconnecting with Guerbet
2 GEAR 2023: leveraging Guerbet’s expertise to capture growth opportunities
3 Diagnostic Imaging: creating value in a mature environment
4 Interventional Imaging: a strong growth opportunity

5 Update on Q1 2018 sales
6 Outlook and targets
7 Q&A

8 Appendix
Guerbet – Capital Markets Day – 18 April 201873

Biography - Yves L’Epine

Yves L’Epine

Chief Executive Officer• Joined Guerbet in 2011
• Appointed Chairman of G5 Santé in 2018
• Formerly Vice-President Europe of the Abbott group’s Established Products
division (2010-2011)• Served as Chairman and CEO of the French subsidiary of the Takeda group(1999-2010)• Education: MBA from the Insead business school in 1990, Doctorate in
medicine and cardiology, René-Descartes Medical School – Paris V

Guerbet – Capital Markets Day – 18 April 201874

Biography - Jean-François Le MartretJean-François Le Martret
Chief Financial Officer• Joined Guerbet in 2009
• Formerly Chief Financial Officer at Expanscience (2004-2009)• Held various finance responsibilities at The Gillette Company in France andthe UK during 16 years• Education: Audencia business school, DECS, third cycle studies inInternational Affairs

Guerbet – Capital Markets Day – 18 April 201875

Biography - David HaleDavid Hale

Chief Commercial Officer – Diagnostic Imaging• Joined Guerbet in 2018• 17 years of experience at GE in Germany, France and the USA where heheld a variety of managing positions and most recently served as the SeniorVice President responsible for GE Healthcare’s $1bn Enterprise Imaging(RIS/PACS/VNA), Cardiology IT, High Acuity Care and Perinatal SW divisions• Spent 3 years with the Boston Consulting Group in Germany focusing on IT in
Financial Services and 5 years in Software Development with Ascom
Switzerland• Holds an Industrial and Systems Engineering degree from Georgia Tech, USA
and an MBA from IMD, Switzerland

Guerbet – Capital Markets Day – 18 April 201876

Biography - François Nicolas

François Nicolas

Chief Digital Officer• Joined Guerbet in 2017
• Served as global leader for diabetes integrated care for 3 years at Sanofi,
led strategic partnership with Google Verily to create joint venture focusedon diabetes patient care solutions• Spent 17 years at GE Healthcare where he led Neurology PET segment,
introduced novel diagnostic for Alzheimer’s disease (VizamylTM) and held avariety of engineering and quality roles, primarily in Interventional X-Ray
modality• Holds an Engineering degree and Ph.D. in Physics from Ecole Polytechnique

Guerbet – Capital Markets Day – 18 April 201877

Biography - Thomas BonnefontThomas BonnefontCommercial Vice-President – Interventional Imaging• Joined Guerbet in 2013
• Appointed Commercial Vice-President for Interventional Imaging in 2018
after serving for 5 years as Business Unit Director for Interventional Radiology
where he contributed to the strong growth of the business (from €20m to€65m in sales)• 18 years of experience in Marketing, Sales & Business Management within
the Pharmaceutical & Medical Devices industry in groups such as J&J, Pierre
Fabre, GE Healthcare and Livanova• Holds an MSc in Chemistry from the Greenwich University London and a
DESS in Marketing from the IAE Toulouse School of Economics

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Summary financials (1/2)
In million of euros

2012

2013

2014

2015

2016

2017

Revenue

403.5

389.7

409.0

488.7

775.8

807.1

Organic growth at constant FX (%)+5.5%(1.3%)

5.6%

10.0%

(1.7%)

4.7%

54.9

52.1

67.7

88.3

106.3

130.0

13.6%

13.4%

16.5%

18.1%

13.7%

16.1%

Operating income

31.7

30.0

38.8

58.7

54.6

79.2

Margin (%)

7.9%

7.7%

9.5%

12.0%

7.0%

9.8%

Net interest expenses

(3.9)

(1.1)

(1.7)

(1.1)

(6.5)

(6.0)

Net currency gains/losses

(0.1)

(1.1)

(0.1)

2.6

(1.2)

(5.8)

Other financial income and expenses

(0.1)

(0.1)

(0.8)

0.7

0.2

(0.6)

Income tax

(7.3)

(7.2)

(10.1)(21.7)(18.1)(20.6)Net income

20.4

20.5

26.1

39.2

28.9

46.2

Margin (%)

5.1%

5.3%

6.4%

8.0%

3.7%

5.7%

Effective tax rate

26.4%

26.0%

27.9%

35.6%

38.5%

30.8%

EBITDA
Margin (%)

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Summary financials (2/2)
In million of euros

2012

2013

2014

2015

2016

2017

Cash flow from operations

45.3

42.0

55.2

70.9

81.8

126.5

Change in net working capital(11.0)

14.9

1.7

(9.5)

(38.2)(52.2)Net capital expenditure(33.2)(35.4)(31.6)(35.5)(50.5)(45.9)(253.2)

2.6

7.7

(6.1)

(6.1)

(8.0)

(10.8)

0.2

2.1

2.4

1.0

CMDS acquisition
Dividends

(5.5)

(6.1)

Capital increase
Other

5.5

1.1

2.3

4.3

(4.1)

(2.9)

Decrease / (Increase) in net debt

1.0

16.5

21.7

(227.0)(14.0)

23.4

Net debt

99.0

82.5

60.8

287.8

301.8

278.4

Financial leverage (net debt / EBITDA)

1.8x

1.6x

0.9x

3.3x

2.8x

2.1x

Guerbet – Capital Markets Day – 18 April 201880

Glossary (1/2)
CT: Computed Tomography (Tomodensitométrie in French) is a medical imaging modality that consists in measuring theabsorption of X-rays by the tissue, digitalizing the output by computer processing and then reconstructing 2D (section) or
3D images of anatomical structures. Tissue contrast can be increased by injecting a iodine-based contrast medium. This
product has the property of strongly absorbing X-rays and thus making the tissues in which it is circulating highly visible
Cath Lab: the Catheterization Laboratory (Salle D’angiographie in French) is an examination room in a hospital or clinic
where minimally invasive diagnostic and therapeutic procedures dedicated to cardiovascular diseases are performed. By
using the absorption of X-rays and injected iodine-based contrast agents both diagnosis procedure and therapies such as
stenotic artery dilation or embolization of an arterial aneurism are refined
MRI: Magnetic Resonance Imaging (Imagerie par Résonance Magnétique in French) is a non-irradiating alternative
modality that uses magnetic fields to reconstruct 2D (section) or 3D images of anatomical structures. Tissue contrast canbe increased by injecting a gadolinium-based contrast agent, which makes the tissues in which it is circulating very visible
TACE: Trans-Arterial Chemo-Embolization (Chimio-Embolisation Trans-Artérielle in French) is a minimally invasive procedurethat involves mixing Lipiodol® Ultra-Fluid with an anticancer agent and injecting the mixture into the liver tumor byconnecting a catheter into the tumor’s feeder artery
cTACE: conventional Trans-Arterial Chemo-Embolization
DEB-TACE: Drug Eluting Beads - Trans-Arterial Chemo-Embolization

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Glossary (2/2)
CVD: Cardio Vascular Disease
HCC: Hepato Cellular Carcinoma
TARE: Trans-Arterial RadioEmbolization
CNS: Central Nervous System
TAVI: Transcatheter Aortic Valve Implantation
HIFU: High Intensity Focused Ultrasound
VAE: Vascular Anomalies Embolization

Guerbet – Capital Markets Day – 18 April 201882