Laboratorios Farmaceuticos Rovi, S.a. · BME:ROVI
Laboratorios Farmaceuticos Rovi — FY2019 Earnings Presentation
24 slides from Laboratorios Farmaceuticos Rovi's earnings presentation, February 2020
Slide 1: Full Year 2019 Financial Results
F U L L Y E A R 2 0 1 9 F I N A N C I A L R E S U LT S FEBRUARY 2020
Slide 2: Disclaimer
Disclaimer • This Presentation has been prepared by Laboratorios Farmacéuticos Rovi, S.A. (the “Company”) and comprises the slides for a presentation concerning the Company and its subsidiaries (the “Group”). For the purposes of this disclaimer, “Presentation” means this document, its contents or an
Slide 3: Operating results
Operating results Juan López-Belmonte Chief Executive Officer
Slide 4: 2019 financial results - Highlights
2019 financial results - Highlights • Operating revenue increased by 26% to €381.3Mn in 2019, driven by the strength of the specialty pharmaceutical business, where sales rose 27%, strongly outperforming the market, and by the toll manufacturing business, which grew by 20%. Total revenue increased b
Slide 5: Growth driven by specialty pharma and toll manufacturing businesses
Growth driven by specialty pharma and toll manufacturing businesses… Total operating revenue (€Mn) Operating revenue growth by category (€Mn) 400 400 381,3 +26% 350 350 65,6 303,2 300 300 +20% 54,6 250 250 200 200 381,3 150 303,2 150 315,7 +27% 248,6 100 100 50 50 0 0 2018 2019 2018 2019 Specialty p
Slide 6: …with high profitability
…with high profitability EBITDA (€Mn) and EBITDA margin (%) Net profit (€Mn) 20% 70 40 16,0% 60 +119% +106% 15% 30 50 9,7% 40 10% 20 39,3 60,9 30 20 5% 10 29,5 17,9 10 0% 0 0 2018 2019 2018 2019 EBITDA EBITDA margin • In 2018, EBITDA was affected by non-recurring expenses of €1.1Mn. • As a result of
Slide 7: LMWH, leading the specialty pharmaceutical business
LMWH, leading the specialty pharmaceutical business Prescription-based pharma products sales (€Mn) LMWH franchise sales (€Mn) 300 200 177,6 +30% +46% 250 150 200 121,5 80,9 +2.7x 150 100 30,2 281,0 100 216,8 50 91,3 +6% 96,8 50 0 0 2018 2019 2018 2019 Bemiparin Enoxaparin biosimilar • Sales of presc
Slide 8: Strong growth potential of Enoxaparin Biosimilar Becat®
Strong growth potential of Enoxaparin Biosimilar Becat® Strong Commercial Launch with a Clear Strategy Well-Established Network to Minimize Time-to-Market Direct • ROVI launched enoxaparin biosimilar Becat® in Germany (first EU Marketed in Approved in 1 market) in September 2017; in UK, Italy, Spain
Slide 9: Strong performance of the product portfolio (1/2)
Strong performance of the product portfolio (1/2) Neparvis sales (€Mn) Volutsa sales (€Mn) 24 15 +18% 20 +62% 16 10 12 22,0 13,3 11,2 8 5 13,6 4 0 0 2018 2019 2018 2019 Medicebran and Medikinet sales (€Mn) 8 • Sales of Neparvis, a specialty product from Novartis launched in December 2016, increased
Slide 10: Strong performance of the product portfolio (2/2)
Strong performance of the product portfolio (2/2) Absorcol, Vytorin and Orvatez sales (€Mn) Hirobriz and Ulunar sales (€Mn) 40 16 -12% -5% 30 12 20 8 36,0 15,3 14,6 31,8 10 4 0 0 2018 2019 2018 2019 Contrast imaging agents sales (€Mn) 35 • Sales of Vytorin®, Orvatez® and Absorcol® decreased by 12% t
Slide 11: Value added toll manufacturing services
Value added toll manufacturing services Toll manufacturing sales (€Mn) • Toll manufacturing sales increased by 20% to 65.6 million euros in 2019 as a 70 result of the redirection of our toll manufacturing activities strategy towards +20% high-value-added products. 60 • In November 2019, the toll man
Slide 12: ISM® Platform Opens Up New Avenues of Growth for ROVI
2 ISM® Platform Opens Up New Avenues of Growth for ROVI Overview Key Company Highlights of ISM® Platform • Internally-developed and patented innovative drug-release technology, ISM®1, which allows for the sustained release of compounds administered by injection Pop PK 2 model & simulations Expected
Slide 13: Guidance 2020
Guidance 2020 2020 operating revenue growth rate Mid-single-digit T HE KEY G ROWTH LEVERS IN 2 0 2 0 Specialty Pharma Business Toll Manufacturing Services Bemiparin Spare capacity in the manufacturing plants Biosimilar of Enoxaparin New customers to be acquired Launches such as Neparvis an
Slide 14: Financial results
Financial results Javier López-Belmonte Chief Financial Officer
Slide 15: Good revenue level with outstanding LMWH franchise growth
Good revenue level with outstanding LMWH franchise growth Total operating revenue (€Mn) LMWH franchise sales (€Mn) 381,3 400 +26% 2,1 +20% 65,6 200 303,2 +46% 177,6 300 2,2 32,6 +10% 54,6 150 29,7 121,5 +2.7x 80,9 200 100 30,2 +30% 281,0 +6% 100 216,8 50 96,8 91,3 0 0 2018 2019 2018 2019 Prescriptio
Slide 16: Gross margin impacted by enoxaparin biosimilar sales and LMWH raw material prices
Gross margin impacted by the increase of enoxaparin biosimilar sales and the increase of LMWH raw material prices Gross profit (€Mn) and Gross margin (%) • Gross profit increased by 23% to €215.9Mn in 2019, the gross margin 58,1% 56,6% showing a decrease of 1.5 percentage points from 58.1% in 2018 t
Slide 17: Cost control along with commitment to R&D
Cost control along with commitment to R&D SG&A expenses (€Mn) R&D expenses (€Mn) 40% 37,3% +11% 150 35 32,9% -9% 125 30 30% 25 100 20 20% 75 32,4 125,5 15 29,3 113,2 50 10 10% 25 5 0% 0 0 2018 2019 2018 2019 SG&A SG&A/operating revenue • SG&A expenses rose 11% to €125.5Mn in 2019 mainly due to: • in
Slide 18: EBITDA
EBITDA EBITDA (€Mn) and EBITDA margin (%) EBITDA (€Mn) and EBITDA “pre-R&D” margin (%) 20% 70 30% 23,6% 100 16,0% +43% +106% 60 25% 15% 20,8% 75 50 20% 9,7% 40 10% 15% 50 60,9 30 90,2 10% 63,0 20 5% 25 29,5 10 5% 0% 0 0% 0 2018 2019 2018 2019 EBITDA EBITDA margin EBITDA "pre-R&D" EBITDA margin "pre-
Slide 19: EBIT
EBIT EBIT (€Mn) and EBIT margin (%) EBIT (€Mn) and EBIT “pre-R&D” margin (%) 15% 50 25% 80 11,2% 18,9% 13% +144% 40 20% 16,8% 60 10% 30 15% 5,8% +41% 8% 40 42,6 72,0 20 10% 5% 51,0 20 10 5% 3% 17,5 0% 0 0% 0 2018 2019 2018 2019 EBIT EBIT margin EBIT "pre-R&D" EBIT margin "pre-R&D" 2019 EBIT impacts
Slide 20: Net profit
Net profit Net profit (€Mn) Net profit “pre-R&D” (€Mn) 70 40 +119% 60 +24% 30 50 40 20 39,3 66,8 30 53,8 20 10 17,9 10 0 0 2018 2019 2018 2019 • Net profit increased to €39.3Mn in 2019, a 119% rise compared to 2018. • Net profit “pre R&D” (w/o R&D and non recurring expenses) increased by 24%, from €
Slide 21: Capital expenditure and Free Cash Flow
Capital expenditure and Free Cash Flow Capex evolution (€Mn) Capex breakdown (%) 30 ISM industrialization; Injectables; 13% 6% 25 +55% Granada facility; 22% 20 15 27,0 10 Alcalá facility; 17,4 31% Maintenance capex and 5 other; 13% 0 San Sebastián de los Reyes 2018 2019 facility; 16% • €27.0Mn of ca
Slide 22: Financial debt
Financial debt Debt breakdown by source (%) Debt maturities by year (€Mn) 60 Total debt Derivatives; €84.8Mn Financial 0,2% liabilities for leases; 25% 40 53,3 Bank borrowings; 20 Debt with 61% public administration; 14% 12,7 9,6 4,7 4,5 0 2020 2021 2022 2023 2024 onwards • Debt with public administ
Slide 23: News-flow 2020
News-flow 2020 Sales of biosimilar of Enoxaparin Specialty Additional new products to be launched Pharma Granting by the competent local authorities of the marketing authorisation of an Enoxaparin biosimilar in 71 countries outside Europe Toll New contracts to be announced manufacturing Risperidone
Slide 24: For further information, please contact:
For further information, please contact: Juan López-Belmonte Chief Executive Officer +34 91 3756235 jlopez-belmonte@rovi.es www.rovi.es Javier López-Belmonte Chief Financial Officer +34 91 3756266 javierlbelmonte@rovi.es www.rovi.es Marta Campos Investor Relations +34 91 2444422 mcampos@rovi.es www.
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