Slide 1: 2004 Full Year Financials
2004 Full Year Financials Conference Call, 4 March 2005
Slide 2: Operational highlights in 2004
Operational highlights in 2004 • Pharmaceutical sales up 3.5%, or 8.4% excluding Sophartex • International pharmaceutical sales up 12.0% • Lercanidipine sales up 25.4% • Operating income up 11.6%, at 18.5% of sales • Net income at 11.1% of sales • New product licenses 1
Slide 3: Composition of sales
Composition of sales (million euro) 2003 2004 Change % PHARMACEUTICALS 424.0 438.9 3.5% 87.0% 89.9% PHARMACEUTICAL 63.5 49.4 (22.1)% CHEMICALS 13.0% 10.1% TOTAL 487.5 488.3 0.2% 100.0% 100.0% ITALY 211.6 218.8 3.4% 43.4% 44.8% INTERNATIONAL 276.0 269.5 (2.3)% 56.6% 55.2% 2
Slide 4: Sources of growth
Sources of growth (% change, full year 2004 over full Volume Price Exchange Total year 2003) PHARMACEUTICALS 12.2 % (3.5) % (0.3) % 8.4 % excluding Sophartex SOPHARTEX (73.1) % - - (73.1) % PHARMACEUTICAL (18.9) % (0.1) % (3.1) % (22.1) % CHEMICALS TOTAL CHANGE 3.6 % (2.8) % (0.6) % 0.2 % 3
Slide 5: Composition of pharmaceutical sales
Composition of pharmaceutical sales (million euro) 2003 2004 Change % Pharmaceuticals Italy 203.4 213.5 5.0% Pharmaceuticals France 97.9 106.7 9.0% Pharmaceuticals Spain 21.0 26.3 25.3% International licensees 76.1 85.4 12.3% Sophartex * 25.7 6.9 (73.1)% TOTAL PHARMACEUTICALS 424.0 438.9 3.5% Exclud
Slide 6: Lercanidipine sales
Lercanidipine sales (million euro) 2003 2004 Change % Italy 33.7 39.5 17.3% France 15.7 23.4 48.4% Spain 4.3 4.9 15.9% DIRECT SALES 53.7 67.8 26.3% 58.7% 59.1% SALES TO LICENSEES 37.8 46.9 24.1% 41.3% 40.9% TOTAL LERCANIDIPINE 91.5 114.7 25.4% SALES 100.0% 100.0% 5
Slide 7: Lercanidipine as a % of all calcium channel blockers
Lercanidipine as a % of all calcium channel blockers Bubble size represents $ market value of CCB’s France 16 % share of CCB market Germany 14 Australia Italy Austria 12 10 S.Korea 8 Spain 6 Belgium U.K. 4 2 Holland 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Source: IMS data - 4Q 2004 Quarters fro
Slide 8: Main products
Main products Proprietary In-Licensed Breakdown of 2004 pharmaceutical sales (€ 439 m) Branded Generics Neo Codion Lomexin Urispas (codeine (fenticonazole) (flavoxate) cough mix.) Acequin/ Methadone Exomuc Hexa line Octegra Acequide Abufene (acetylcysteine) Isocef (moxifloxacine) (biclotimol) (quina
Slide 9: Breakdown of pharmaceutical sales
Breakdown of pharmaceutical sales Spain International licensees 6% 19% France Sophartex 24% 2% Italy Data: full year 2004 49% 8
Slide 10: Full year results
Full year results (million euro) 2003 2004 Change % Net Sales 487.5 488.3 0.2% Gross Profit 287.8 309.0 7.4% as % of sales 59.0% 63.3% Selling Expenses 148.0 156.0 5.4% as % of sales 30.4% 31.9% R&D Expenses 32.8 37.3 as % of sales 6.7% 7.6% 13.9% Operating Income 81.0 90.4 as % of sales 16.6% 11.6%
Slide 11: Operating income by business area
Operating income by business area (million euro) 2003 2004 Change % PHARMACEUTICALS 85.5 88.4 3.3% as % of sales 20.2% 20.1% PHARMACEUTICAL CHEMICALS (4.5) 2.0 as % of sales* (6.0)% 3.2% n.s. TOTAL OPERATING INCOME 81.0 90.4 11.6% as % of sales 16.6% 18.5% * Including inter-company sales 10
Slide 12: Capital employed
Capital employed (million euro) 31 December 2003 31 December 2004 21.4 Net working capital 72.1 71.7 for operations Net non-current assets 44.7 227.9 Net debt or cash 265.0 177.6 Shareholders’ Equity 148.2 (before negative hedging reserve of € 3.2 million) Capital employed: 249.3 Capital employed: 1
Slide 13: Net financial position
Net financial position (million euro) 2003 2004 Change Cash and marketable securities 98.7 232.2 133.5 Short term bank debt (17.6) (3.5) 14.1 Current portion of medium and long term (27.6) (25.2) 2.4 debt Medium and long term debt (74.9) (131.4) (56.5) NET FINANCIAL POSITION (21.4) 72.1 93.5 12
Slide 14: Cash flow
Cash flow (million euro) 2003 2004 Net income 23.7 54.0 Depreciation of fixed assets 16.0 12.0 Amortization of intangible assets 10.8 9.1 Write-down of assets 30.0 1.8 Change in working capital (1.5) 25.1 Changes in non-current items (11.6) (4.1) Net investments in fixed assets (15.9) (0.2) Net inve
Slide 15: Forward-looking statements
Statements contained in this presentation, other than historical facts, are “forward- “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). 1995). These statements are based on currently available information, on current best estimates, and o