2. Regional multinational company
Corporate strategy
Niche market player
– therapeutic niche - women’s healthcare
– geographic niche - CEE, CIS
Long-term supply agreements in EU / USA
– sophisticated chemistry knowledge
Sound research and development activity
– original research - focused exclusively on the CNS
– developments - successful innovations
Licensing activity
– broadening of the existing product portfolio
– beneficial partner
Regional multinational company

3. Good growth driven by gynaecology and cardiovascular
1996
Central Nervous System
Gastro- intestinal
Muscle relaxants
Gastro- intestinal
Muscle relaxants 7%
Central Nervous System
17 % 3% 9%
Other 4%
26 %
21 %
24 %
33 %
16 %
Other
12%
Cardio- vascular
28 %
Cardio- vascular
Gynaecology
Gynaecology
Sales
US$ 410 m US$ 247 m

4. Expanding gynaecological business
Niche player
Core expertise in steroid chemistry
Wide range of women’s healthcare products
Continuous expansion on traditional markets
FDA / EMEA compliant facilities
Long-term supply agreements – EU / USA
US$ mn
185
+ 28 %
115 90 H1 H1

5. One of the broadest gynaecological portfolio
Oral contraceptives
third- and second-generation
Emergency pills
Hormone Replacement Therapy
tablets, patches
Antifungals
tablets, cream
Other gynaecological products
APIs

6. Sales by product type Generic development Original research
focusing on niches
preparing for patent expiries
Original research
focusing on CNS
Licensing activity
beneficial partner
Reproduction /
Generic
71 %
Licensed-in
11 %
Own developed
compounds
18 %
Source: Richter’s sales H1 2006

7. Sales (US$ m) 14 % increase H1 2006 H1 2005 85 41 39 88 157 93 78 34
Hungary
- 8 % EU
+ 14 %
USA
+ 13 %
CIS
+ 32 % 85 41 39 88
157
Other countries
+ 16 %
Hungary EU 93 78 34
USA 36
118
Other countries
CIS
US$ 410 m US$ 359 m
14 % increase
IFRS unaudited figures.

8. CIS – continuous dynamic growth
US$ m
Favourable market conditions
- stable political and economic environment
- high crude oil and natural gas prices
Increasing proportion of new
products: 38 %
Russia: DLO programme continues
216
+ 32 %
157
118 H1 H1

9. Russia – the Company’s largest market
Subsidy programme (DLO)
– new reimbursement list from 1 January 2006
– about US$ 1.0 bn allocated for 2006 – at retail price level
– H – appr. US$ 20 m
Protek – changes to invoicing procedures
– Q – about US$ 10 m

10. Russia – sales breakdown
US$ million
119 10 93 20 30 56 89 63 56 H1 H1 H1

11. Expansion of sales network in the CIS region
Number of sales stuff
Total: 700
Total: 140 H1

12. USA Sales increase from a low base Steroids – supply agreements
US$ m
Sales increase from a low base
Steroids – supply agreements
Barr Labs.
J&J – several APIs
Generic business
lisinopril, famotidine, spironolactone
increasing competition, decreasing prices 70
+ 13 % 39 34 H1 H1

13. Balanced business model - two major export markets

14. Focused marketing strategies
EU 25
Focused marketing strategies
Former EU 15
Sales via partners
Finished and API shipments
Continual preparation for patent expiries
appr. 1/3 of EU 25 sales
New members from Central and Eastern Europe (PL, CZ, SK, Baltic S.)
Own sales network
Finished product supplies
New product launches
appr. 2/3 of EU 25 sales
Main drivers of growth in both areas
Gynaecology
Portfolio renewal

15. Richter in Hungary Unfavourable economic environment Flat sales
Success of new products
– renewal of product portfolio
– 70 % of domestic sales
HUF m
40 800
18 000
17 900 H1 H1

16. Gross and operating margins

17. Profit after taxation HUF m US$ m 43 600 + 56 % 218 30 000 + 42 % 142
19 200 99 H1 H1 H1 H1

18. Capital expenditure HUF m US$ m 129 25 800 7 500 39 6 400 30 H1 H1 H1

19. Ownership structure on 30 June 2006
ÁPV Ltd.
(Hungarian Privatisation and State Holding Company)
25.0 %
International investors
66.0 %
Domestic investors
9.0 %
The only independent Hungarian pharmaceutical company

20. THE RICHTER GROUP

21. Gedeon Richter-RUS Greenfield investment established – 1996 Location
– 100 km southeast from Moscow
Strategic goal
– added local value
Ongoing investments – connected to the DLO programme
– expansion of the packaging facility
– upgrading of some production lines, equipments and laboratories
– enhancement of storage capacity

22. GZF Polfa Acquisition in Poland
– November 2002
Strengthening of market presence in Central and Eastern Europe – a key element of Richter’s strategy
– Poland – 3rd largest export market after Russia and USA
Transaction rationale – complementary product portfolio
– GMP-compliant facilities
– favourable location: 35 km southwest from Warsaw
Ownership ratio
– since 2006 June: 70 %

23. Gedeon Richter Romania
Acquisition
– May 1998
Major therapeutic areas – central nervous system, cardiovascular
Capital expenditure programmes
– manufacturing facility to comply with GMP standards – regional development centre
Main areas of focus in 2006
– first deliveries to Western European markets
– further expansion of sales and marketing teams

24. Richter-Themis Ltd. – Richter-Themis Medicare Private Ltd.
Joint venture established
– Richter-Themis Medicare Private Ltd.
– 51 % stake
– August 2004
Manufacturing
– APIs and intermediates
Strategic goal
– to increase synthetic capacity in a highly competitive environment
Building upon new facilities
– operation started gradually from early 2006

25. Unconsolidated sales of key subsidiaries
H1 2006
H1 2005
Growth
US$ m %
GZF Polfa
28.4
26.0
9.2
Gedeon Richter Romania
9.7
8.5
14.1
Gedeon Richter-RUS
8.7
4.2
107.1

26. Comparative figures – H1 2006
Consolidated Parent Consolidated /
Parent
HUF m HUF m %
Total sales
Gross profit
Operating profit
Net profit
IFRS unaudited figures.