NASDAQ:ACET ACETO Corporation Investor Presentation October 8, 2014 “Sourcing & Supplying Quality Products Worldwide” Disclosure This presentation contains “forward-looking statements,” as defined by the Private Securities Litigation Reform Act of 1995, that can be identified by words such as “believes”, “expects”, “anticipates”, “plans”, “projects”, “seeks” and similar expressions and involve numerous risks and uncertainties. The Company’s actual results could differ materially from those anticipated or implied in such forward-looking statements as a result of certain factors, as set forth in the Company’s filings with the Securities and Exchange Commission. 2 Company Overview Value Added Distributor Transforming Towards Pharmaceuticals o Focus on niche products o Consultative selling o Human Health • Finished Dosage Form Generics • Branded Generic Drugs • Nutritionals: supply app. 250 popular dietary supplements Pharma Ingredients • Pharmaceutical Intermediates • Active Pharmaceutical Ingredients Performance Chem. • Specialty Chemicals • Agricultural Protection Products Highly skilled, technically trained sales force o Partnership model o Distribute >1,110 chemical compounds o Global reach o Int’l technical network o Regional managers in US, Europe & Asia SOURCING REGULATORY SUPPORT QUALITY ASSURANCE 3 Mix Shifting Toward Human Health Oriented Businesses Net Sales FY 2010 FY 2014 o 10% revenue CAGR 14% 31% 34% 47% 39% 35% $346.6 Million $510.2 Million Gross Profit FY 2010 14% o Human Health growth boosted by acquisition of Pack Pharmaceuticals in April 2014. o Blended gross margin expanded 280 bps from 19.7% to 22.5% FY 2014 26% 42% 45% 41% 32% $54.2 Million $114.7 Million 4 Investment Highlights  Strategically positioned for growth through geographic expansion, new product offerings and bolt-on acquisitions* • Primary focus on pharmaceuticals and human health products  Rising Pharmaceuticals is a platform for higher margin finished dosage form generics  Scalable business model, SG&A leverage and improving product mix drives margin expansion  Asset-light business model generates strong free cash flow  Strong financial position supports growth initiatives  Experienced executive management team  Track record of 48 consecutive years of dividend payments, providing return to shareholders *PACK Pharmaceuticals, LLC acquisition closed April 30, 2014 5 Human Health  Product Groups • Finished dosage form generic drugs (Rising Pharmaceuticals) • 60+ commercial products • 90+ pipeline products • Branded Generics • Nutritionals • Nutraceutical ingredients • Packaged dietary supplements  Growth Strategy • Expand pipeline of high margin finished dosage form generic products • Branded generics platform • Globalize and expand nutraceutical ingredients 6 Rising Pharmaceuticals  Platform for growth as developer and marketer with established generics brand  Strong brand recognition of “Rising” label among pharmacists and pharmaceutical product buyers  Long-standing commitment to quality, service, supply and integrity  Strategically utilizes partnership model       Product development programs ANDA acquisitions Paragraph IV product partnerships Authorized generic marketer Licensing opportunities on late stage product assets Branded generic additions 7 Rising Active Projects Rising Anticipated Fiscal Year of Launch* Number of Projects Products With No Current Generic Competition 2015 12 2 $ 14 2016 21 3 $ 115 $ 1,786 2017 21 2 $ 20 $ 1,024 2018 and beyond 41 16 $ 784 $ 3,087 Portfolio Total 95 23 FTM Total Market Sales $ 933 Total Market Sales ($MM)** $ 485 $ 6,382 *Subject to current FDA approval timelines **Based on the latest IMS sales information for both branded and generic markets 8 Rising – Updated for Acquisition Drug Development Pipeline Finalizing Formulation Scale Up Contract Biostudies Underway Pending with FDA Approved Launched FY2015 0 ANDAs 1 ANDAs 51 ANDAs 14 Products 9 Products 18 Products 2 ANDAs 95 Portfolio Projects 9 Broad Based Nutritional Products Offered on Global Basis Fiscal 2014 Sales  Supply approximately 250 popular dietary supplements: • • • • • • • Fish Oil/Omega 3 Glucosamine Chondroitin Sulfate Probiotics Vitamins Amino Acids Minerals Asia 4% EU 44% United States 52% 10 Human Health Customers (representative) 11 Pharmaceutical Ingredients  Product Groups • Pharmaceutical intermediates - chemicals used to make API’s • Active Pharmaceutical Ingredients (API’s) - bulk ingredients which impart therapeutic value to the drug  Growth Strategy • Focus on niche, small/mid-size products with a limited number of competitors • Serve as second source for branded drugs and generics  >100 New Opportunities in Pipeline 12 Pharmaceutical Ingredients Customers (representative) 13 Performance Chemicals  Product Groups • Specialty Chemicals - for coatings, inks, plastics, food, electronics, agricultural intermediates & other industrial applications • Agricultural Protection Products - fungicides, insecticides and sprout inhibitors  Growth Strategy • Specialty Chemicals o Globalization of product offering o New suppliers create new product opportunities o New products for existing customers • Agricultural Protection Products o Generic products subject to regulation & registration o Partner with suppliers, customers or act as sole principal 14 Performance Chemicals Customers (representative) 15 Value Proposition to Customers  Core business competencies serve as sales and marketing drivers: • Sourcing • Regulatory Support • Quality Assurance Relieves customer of logistical concerns; ensures that products meet regulatory requirements  Highly skilled, technically trained sales force: • >280 employees worldwide; >1/2 technically trained • Well versed in science, regulations and in discussing chemistry and/or performance characteristics to address customer needs  Function as virtual manufacturing company • Match customers with fully vetted suppliers 16 Worldwide Presence UNITED KINGDOM GERMANY NETHERLANDS JAPAN CHINA USA SINGAPORE Corporate HQ New York FRANCE INDIA 17 Global Sourcing  China: • Predominately source specialty chemicals, agricultural protection products and intermediates • 24 local professionals Fiscal 2014 Other North America 6% 16%  India: • Predominately source active ingredients and nutritionals • 12 local professionals Europe 14% Asia 64%  North America: • Predominately source finished dosage form generics 18 Support: Technical & Regulatory with emphasis on Quality Assurance  KEY differentiator between Aceto and commodity distribution companies  International Technical Network with regional managers in U.S., Europe and Asia  International Regulatory Support o Provides substantial global assistance as required o Enables manufacturers to bring products to market in conformance with regulations that they might not otherwise be able to bring on their own  Worldwide Quality Assurance ensures that product quality meets both the customers’ specifications and intended use 19 Strong Financial Position Provides Financial Flexibility  Financial position at June 30, 2014: • • • • Cash, cash equivalents and short-term investments of $44 million Bank debt of $105.5 million* Working capital of $158 million Shareholders’ equity of $234 million  Strong cash flow affords an expected $0.24 per share annual dividend rate *(Note: Increased to $105.5 million as of 4/30/14 due to acquisition of PACK Pharmaceuticals, LLC) 20 Strong Track Record of Growth Net Sales EPS (non-GAAP) ($ in millions) $500 $499.7 $510.2 CAGR 10% $444.4 $412.4 $400 $346.6 $300 $200 $100 $0 FY '10 FY '11 FY '12 FY '13 FY '14 $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $1.07 CAGR 29% $0.89 $0.65 $0.47 $0.39 FY '10 FY '11 FY '12 FY '13 FY '14 21 Expanding EBITDA & EBITDA Margin (non-GAAP) EBITDA ($ in millions) EBITDA Margin $70 12.0% $60 10.0% $50 8.0% $40 6.0% $30 4.0% $20 $10 2.0% $0 0.0% FY '10 FY '11 FY '12 EBITDA FY '13 FY '14 EBITDA Margins 22 Investment Highlights  Strategically positioned for growth through geographic expansion, new product offerings and bolt-on acquisitions* • Primary focus on pharmaceuticals and human health products  Rising Pharmaceuticals is a platform for higher margin finished dosage form generics  Scalable business model, SG&A leverage and improving product mix drives margin expansion  Asset-light business model generates strong free cash flow  Strong financial position supports growth initiatives  Experienced executive management team  Track record of 48 consecutive years of dividend payments, providing return to shareholders *PACK Pharmaceuticals, LLC acquisition closed April 30, 2014 23 NASDAQ:ACET Global Leader in the Marketing and Distribution of Pharmaceutical Intermediates & Active Ingredients, Finished Dosage Form Generics, Nutraceutical Products, Agricultural Protection Products, and Specialty Chemicals For additional information please contact: Jody Burfening LHA Investor Relations 800 3rd Avenue, 17th Fl. New York, NY 10022 Tel: 212-838-3777 [email protected] “Sourcing & Supplying Quality Products Worldwide” 24