Slide 1: 2016 Results
2016 RESULTS Madrid Stock Exchange March 2, 2017
Slide 2: Disclosure
DISCLOSURE This presentation contains no confidential material and may include publicly available market information which has not been independently verified by Reig Jofre. This information is given in summary form and does not purport to be complete. Information in this presentation should not be
Slide 3: Contents
CONTENTS 01. THE YEAR IN BRIEF 05. PROFIT AND LOSS ACCOUNT Highlights in the 2016 P&L 02. MAIN FIGURES 2016 Evolution by quarters 06. BALANCE SHEET Evolution 2016 vs 2015 Highlights on the balance sheet on 12/31/16 03. EVOLUTION OF THE BUSINESS AREAS 07. CONCLUSIONS AND NOTES FOR THE FUTURE Sales an
Slide 4: The Year in Brief
01. THE YEAR IN BRIEF
Slide 5: The Year in Brief
THE YEAR IN BRIEF SALES GROWTH EXCELLENT WEAKER YEAR IN THE TWO RESULTS OF FOR ANTIBIOTICS BUSINESS UNITS STERILE AND FORTE INJECTABLE AND PHARMA, BUT THERAPEUTIC- REVERSING THE SPECIALIZATION TREND PRODUCTS (DERMA, INVESTMENT RESPIR/ENT and PLAN IN GYNE) CAPACITY AND INVESTING IN R&D FUTURE WITHOUT
Slide 6: Main Figures 2016
02. MAIN FIGURES 2016
Slide 7: 2016: A year marked by important growth after the first quarter
2016: A YEAR MARKED BY IMPORTANT GROWTHS AFTER THE END OF THE FIRST QUARTER AND A FIRM EXPANSION INVESTMENT POLICY 77
Slide 8: Evolution by Quarters
EVOLUTION BY QUARTERS TURNOVER EBITDA (in million euros) (in million euros) 50,0 42,4 41,0 41,8 5,0 4,1 4,1 4,2 (-1,4%) (+6,6%) 35,8 (+2,7%) (-46,3%) 3,3 (+38,9%) (+18,4%) 40,0 (+3,4%) 4,0 (+11,1%) 30,0 3,0 20,0 2,0 10,0 1,0 0,0 0,0 1T 2T 3T 4T 1T 2T 3T 4T NET PROFIT (in million euros) 4,0 2,7 3,0 (
Slide 9: Evolution 2016 vs 2015
EVOLUTION 2016 vs 2015 OPERATING EXPENSES TURNOVER (in million euros) (in million euros) 161,1 120,0 +6,0 M€ 200,0 88,2 156,9 (+2,7%) 100,0 (+7.3%) 82,2 150,0 80,0 60,0 100,0 40,0 50,0 20,0 0,0 0,0 2015 2016 2015 2016 (*) Total sales 2016: 165.0 (+ 4.1%). Includes turnover and other operating income
Slide 10: Evolution of Business Areas
03. EVOLUTION OF BUSINESS AREAS
Slide 11: Good evolution of the two business areas despite weak antibiotics and supplements
GOOD EVOLUTION OF THE TWO BUSINESS AREAS, DESPITE THE WEAK PERFORMANCE OF ANTIBIOTICS AND NUTRITIONAL SUPPLEMENTS 1111
Slide 12: Sales and Evolution by Business Area
SALES AND EVOLUTION BY BUSINESS AREA Sales 2016 +2.7% 161.1 M€ RJF PHARMA Development, manufacturing and +2.0% 79% marketing of own products 126.8 M€ TECHNOLOGICAL- THERAPEUTIC- NUTRITIONAL SPECIALIZATION SPECIALIZATION SUPPLEMENTS AND PRODUCTS PRODUCTS CONSUMER HEALTHCARE Antibiotics +1.5% +25.5% I
Slide 13: Technological-Specialization Products
TECHNOLOGICAL- The antibiotic line (73% of sales in this SPECIALIZATION category) fell by 14% in 2016 affected by PRODUCTS two extraordinary situations : Antibiotics Injectable +1.5% 50% Low intake of antibiotics in Q1 2017 for a Freeze-dried mildly aggressive winter in terms of 62.8 M€ respirat
Slide 14: Therapeutic-Specialization Products
THERAPEUTIC- SPECIALIZATION PRODUCTS Dermatology ENT +25.5% 27% Gynecology 34.4 M€ NEW DEVELOPMENTS Excellent evolution of all product lines: Dermatology (71% of this area sales) grows Launching in Spain of Church & 21% Dwight's sea water license, Sterimar. Respiratory (25% of sales) grows 2
Slide 15: Nutritional Supplements and Consumer Healthcare
NUTRITIONAL SUPPLEMENTS AND CONSUMER HEALTHCARE -15.4% 23% 29.6 M€ NEW DEVELOPMENTS Good progression of Consumer Forté Pharma food Healthcare products, which contributed supplements range launched: 10% of sales and grew 6.5%. Weight control: Specific Peu d’Organge Nutritional supplements (90
Slide 16: Forté Pharma – Weight Control
FORTÉ PHARMA – WEIGHT CONTROL 1616
Slide 17: Forté Pharma – Energy
FORTE PHARMA - ENERGY Ghrre PHARMA GELEE ROYALE 3, cxogue® URBOSLIM fitness
Slide 18: Forté Pharma – Beauty
FORTE PHARMA - BEAUTY pr rT = PHARMA
Slide 19: Forté Pharma – Health
FORTE PHARMA —- HEALTH
Slide 20: Forté Pharma – Junior Health Launching
FORTÉ PHARMA – JUNIOR HEALTH LAUNCHING 2020
Slide 21: About Forté Pharma - Business and market evolution
ABOUT FORTE PHARMA - Business and market evolution France contributed 66% of FPh sales in 2016 The French market for nutritional supplements grew at a CAGR of 6% between 2012-2016 The weight control segment in France grew by 22% from 2012 to 2014 and decreased by 21% between 2014-2016, with a
Slide 22: About Forté Pharma – Sales distribution
ABOUT FORTE PHARMA – Sales distribution Working for a better balance of the product portfolio and greater geographical diversification Reorganization of the management of the business – Spain and Portugal recently transfered under RJF Pharma Spain general manager EVOLUTION OF FORTE PHARMA PRODUC
Slide 23: RJF CDMO
RJF CDMO +5.3% 21% Specialized contract development and manufacturing 34.3 M€ Customer CDMO sales 2016 evol. #1 11% +22% Business unit with high #2 7% +30% diversification of the client #3 6% -1% portfolio #4 6% +22% #5 6% -31% The top 10 RJF CDMO customers #6 5% +73% contributed 53% of the sale
Slide 24: International Progress
04. INTERNATIONAL PROGRESS
Slide 25: International Presence
INTERNATIONAL PRESENCE 63 COUNTRIES 25 5
Slide 26: Sales by Geographical Area
SALES BY GEOGRAPHICAL AREA SALES DISTRIBUTION BY GEOGRAPHICAL AREA IN 2016 161,1 M€ Important progress in markets outside Europe. Spain 41% Spain grew by 2.7% as did the rest of the international markets. Rest of Europe 49% In 2016, it highlighted the significant RoW evolution of Asia, which g
Slide 27: International Progress
INTERNATIONAL PROGRESS PRODUCT REGISTRATION In 2016, approval of 52 commercial authorizations for molecules of own antibiotics/injectables, in the following 28 markets: Spain France Poland Hong Kong Germany Holland Portugal Singapore Austria Iceland Ethiopia Thailand Belgium Italy South Africa Tai
Slide 28: Profit and Loss Account
05. PROFIT AND LOSS ACCOUNT
Slide 29: Highlights
HIGHLIGHTS • Operating costs • Positive accounting effects, with no cash effect • Negative accounting effects, with no cash effect 2929
Slide 30: Profit and loss account
(in euro) 2015 2016 Turnover 156,909,656 161,134,290 Changes in inventories -1,610,542 3,657,720 Work c arried out for fixed assets 0 342,806 Proc urements -57,523,146 -65,024,011 Other operating inc ome 1,566,784 3,780,539 Personnel expenses -42,190,845 -45,977,794 Other operating expenses -40,044,
Slide 31: Highlights in 2016 P&L Account (i)
HIGHLIGHTS IN 2016 P&L ACCOUNT (i) OPERATING COSTS Increase of 6.0 M€ in operating expenses for investments in: Personnel costs rose by 3.8 M€ (+ 9.0%) to: EMPLOYEES Increase in workforce by the creation of a fourth 927 shift at the Toledo plant Increase in the workforce at the plant in Sweden
Slide 32: Highlights in 2016 Accounts (ii)
HIGHLIGHTS IN 2016 ACCOUNTS (ii) POSITIVE ACCOUNTING Reversal of negative impairments made in previous years EFFECTS, WITH NO CASH EFFECT Accounting expense for income tax at the end of 2016 INEGATIVE ACCOUNTING EFFECTS, WITH NO CASH at 4.29 M€. EFFECT Of these, 2.7 M€ corresponded to deprecia
Slide 33: Balance Sheet
06. BALANCE SHEET
Slide 34: Highlights
HIGHLIGHTS ASSETS Investments in capex Right to collect a short-term financial asset Stocks EQUITY Equity restructuring Dividend LIABILITIES Financial debt 3434
Slide 35: Assets
ASSETS (in euro) 31/12/2016 31/12/2015 ASSETS Non-current assets Goodwill 27,946,893 25,165,817 Other intangible assets 32,084,385 32,606,879 Property, plant and equipment 37,000,425 28,645,914 Available-for-sale assets 1,167,058 1,185,232 Non-current financial assets 591,049 9,088,104 Deferred tax
Slide 36: Assets (ii)
ASSETS (ii) INVESTMENTS IN CAPEX (in million euros) 2016 Maintenance investments 2,10 Expansion investments 8,35 Production capacity 3,20 Product portfolio 2,05 New R&D and control laboratories 3,10 TOTAL 10,45 36
Slide 37: Assets (III)
ASSETS (III) RIGHT OF COLLECTION Debt collection right in the amount of 8.5 M€ from the OF SHORT TERM French listed company Naturex in favor of Reig Jofre FINANCIAL ASSETS Debt maturity: June 30, 2017 From an accounting point of view, on the accounts of 2016, this asset is transferred from non
Slide 38: Equity and Liabilities (i)
EQUITY AND LIABILITIES (i) (in euro) 31/12/2016 31/12/2015 EQUITY AND LIABILITIES Equity Share capital 31,607,110 126,428,441 Reserves 95,829,378 -4,533,840 Treasury shares -2,092,374 -4,917,032 Interim dividend paid during the year 0 0 Profit attributable to the parent company 7,676,288 8,749,701 E
Slide 39: Equity and Liabilities (ii)
EQUITY AND LIABILITIES (ii) (in euro) 31/12/2016 31/12/2015 Non-current liabilities Capital grants 210,254 102,496 Provisions 613,531 1,070,453 Financial liabilities with credit institutions 11,989,392 4,520,937 Financial lease liabilities 5,244,334 5,828,683 Derivative financial instruments 0 273,9
Slide 40: Equity and Liabilities (iii)
EQUITY AND LIABILITIES (iii) Increase in gross long-term financial debt by € 8.7 M€ to FINANCIAL DEBT finance investments + € 5.6 M€ in short-term lines for temporary financing of working capital. Net financial debt: 29.6 M€ Average cost of debt: 2.5% Debt / EBITDA Ratio: 1.9x The right of
Slide 41: Conclusions and Notes for the Future
07. CONCLUSIONS AND NOTES FOR THE FUTURE
Slide 42: 4 Strategic Pillars
4 STRATEGIC PILLARS R&D TECHNOLOGICAL SPECIALIZATION TRADEMARKS / FORTÉ PHARMA INTERNATIONALIZATION 42
Slide 43: Main Ongoing Developments
MAIN ONGOING DEVELOPMENTS Desarrollo Validación Clínica Registro Neumonía estafilocócica ANTIBIÓTICOS Infecciones bacterianas GENÉRICOS Infección hematológica Antifúngico 1 Antifúngico 2 INYECTABLES / Anestésico LIOFILIZADOS Antifúngico 3 Infección CMV Vacuna A. baumanii INNOVADORES INYECTABLES Aden
Slide 44: Collaborative Innovation
COLLABORATIVE INNOVATION Diagnosis PS Medicine FS Biological Gyne Derma Injectable Antiibotic Others 44 44
Slide 45: Links to Additional Information
08. LINKS TO ADDITIONAL INFORMATION
Slide 46: Links to Additional Information
LINKS TO ADDITIONAL INFORMATION Last news: www.reigjofre.com/en/news Webcast of 2015 results: www.reigjofre.com/en/investors/webcasts Subscription Center: www.reigjofre.com/en/subscription-center 4646
Slide 47: Av. de les Flors 08970 Sant Joan Despi Barcelona, Spain
Av. de les Flors 08970 Sant Joan Despi Barcelona, Spain T. +34 93 480 67 10 www.reigjofre.com Investor relations investors@reigjofre.com