Recordati S.p.a. · MIL:REC
Recordati — Investor Presentation (September 2024)
31 slides from Recordati's investor presentation, September 2024
Slide 1: Recordati
RECORDATI S RECORDATI
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Slide 3: Agenda
AGENDA Recordati strategy and value proposition First half 2024 results and full year 2024 guidance • Appendix 3
Slide 4: Unique and diversified global player in rare diseases and European partner of choice in specialty pharma
UNIQUE AND DIVERSIFIED GLOBAL PLAYER IN RARE DISEASES AND EUROPEAN PARTNER OF CHOICE IN SPECIALTY PHARMA RECORDATI IN NUMBERS – FY 2023 million Euro EMPLOYEES MARKETS Specialty & > 4,450 ~150 Primary Care 66% of Revenue REVENUE EBITDA 2 EBITDA margin 34.2% € 2,082.3 € 769.6 +12.4% vs PY margin at 37
Slide 5: Delivering high single digit growth, consistently on plan, with average ROIC of 15-20% over last decade
DELIVERING HIGH SINGLE DIGIT GROWTH, CONSISTENTLY ON PLAN, WITH AVERAGE ROIC1 OF 15-20% OVER LAST DECADE Group Revenue 2013-2025 - actual and guidance million Euro > 2,4004 CAGR +8.3% 2,260 - 2,320 2,082 1,853 1,580 1,482 1,449 1,288 1,352 1,154 987 1,048 942 RRD SPC2 * 2013 2014 2015 2016 2017 2018
Slide 6: Proven and sustainable business model
PROVEN AND SUSTAINABLE BUSINESS MODEL Unique combination of resilient and cash flow generative branded Specialty & Primary Care business (RX, OTC) alongside a high growth global Rare Disease business (US now Group’s largest unit) Best-in-class financial profile with consistent track record of growth
Slide 7: Three drivers of growth
THREE DRIVERS OF GROWTH 1 2 3 TARGETED ORGANIC BD / M&A INNOVATION SPECIALTY Branded portfolio of flagship RX / Acquisition and licensing of OTC products, driven by focused European mature promotion- & Line extensions on key OTC promotion and positive underlying sensitive products and near PRIMARY
Slide 8: The European partner of choice
THE EUROPEAN PARTNER OF CHOICE Specialty & Primary Care Strong organic growth ahead of relevant markets… …driven by commercial excellence Pharmaceutical Revenue1 FY 2023 vs FY 2022 • Fully integrated regional player with direct presence in 30+ million Euro countries, having significant scope and sca
Slide 9: A global rare diseases business
A GLOBAL RARE DISEASES BUSINESS R&D pipeline Rare Diseases focus on slide 11 Double-digit growth driven by Endo and Onco… …and by patient and physician awareness Revenue FY 2023 vs FY 2022 million Euro • One of the few truly global rare diseases businesses, with direct +20.0% presence in key geograp
Slide 10: Rare Endo and Onco portfolio positioned for strong growth in mid-long term
RARE ENDO AND ONCO PORTFOLIO POSITIONED FOR STRONG GROWTH IN MID-LONG TERM Key drivers ENDOCRINOLOGY • Isturisa2 increased patient uptake, leveraging long-term efficacy / safety data Revenue and maximizing treatment adherence ~500-550 million Euro 300-340 • Signifor LAR second line medical treatment
Slide 11: Upcoming R&D pipeline milestones
UPCOMING R&D PIPELINE MILESTONES PROGRAM UPCOMING MILESTONE Osilodrostat ( ) • Cushing’s Syndrome US FDA regulatory decision on sNDA expected in mid-2025 ONGOING Pasireotide • Post-Bariatric Hypoglycaemia (PBH) Phase 2 enrollment completion by end 2024 / early 2025 PROGRAMS Dinutuximab beta • High R
Slide 12: Accretive and growth BD / M&A to complement organic growth
ACCRETIVE AND GROWTH BD / M&A TO COMPLEMENT ORGANIC GROWTH Long track record of successful execution, with fast and effective integration Specialty & Primary Care • Germany OTC portfolio • Ex-US/China • Dentosan • Italchimici rights to Ledaga Rare Diseases • Farma Projekt • Vitaros • Pro Farma • Cys
Slide 13: Clear value proposition, well positioned for continued success
CLEAR VALUE PROPOSITION, WELL POSITIONED FOR CONTINUED SUCCESS Drive organic growth of Sustain high level of Pursue targeted Maintain clear capital diversified business profitability pipeline opportunities allocation policy Strong underling volume Maintain sector leading Targeted clinical Progressiv
Slide 14: Agenda
AGENDA Recordati strategy and value proposition First half 2024 results and full year 2024 guidance • Appendix 14
Slide 15: Strong momentum in H1 2024 across the business
STRONG MOMENTUM IN H1 2024 ACROSS THE BUSINESS • H1 2024 results show strong momentum of the Group, with Net Revenue at € 1,185.7 million, +13.5% vs PY or +10.2% like-for-like1 at CER; adverse FX impact in H1 2024 was € 22.2 million (-2.1%), easing in Q2 primarily due to TRY stabilization: o SPC at
Slide 16: Specialty & Primary Care: strong organic growth driven by urology, with resilient cardio portfolio
SPECIALTY & PRIMARY CARE: STRONG ORGANIC GROWTH DRIVEN BY UROLOGY, WITH RESILIENT CARDIO PORTFOLIO Pharmaceutical Revenue H1 2024 vs H1 20231 million Euro Key highlights +12.8% • Continued strong growth +12.8% vs PY or +7.6% like-for-like2 at 754.9 CER (+2.2% excl. Türkiye) vs robust H1 2023; promot
Slide 17: Rare Diseases: Onco and Endo franchises continue to show significant growth and future potential
RARE DISEASES: ONCO AND ENDO FRANCHISES CONTINUE TO SHOW SIGNIFICANT GROWTH AND FUTURE POTENTIAL Revenue H1 2024 vs H1 2023 Key highlights million Euro +15.9% • Double-digit growth in H1 2024, +15.9% vs PY as reported and at CER, driven by strong momentum of key growth franchises Endo and Onco • End
Slide 18: All regions delivering solid growth
ALL REGIONS DELIVERING SOLID GROWTH (million euro) H1 2024 H1 2023 Change % U.S.A 184.1 150.9 22.0 Italy 176.3 157.5 11.9 Spain 109.4 76.7 42.6 France 90.3 95.7 (5.6) Germany 81.4 78.0 4.3 Russia, other CIS countries and Ukraine 71.8 70.5 1.9 Türkiye 70.0 45.0 55.6 Portugal 32.6 29.6 10.2 Other C.E.
Slide 19: Continued double-digit growth of revenue and EBITDA
CONTINUED DOUBLE-DIGIT GROWTH OF REVENUE AND EBITDA (million Euro) H1 2024 H1 2023 Change % Revenue 1,185.7 1,044.3 13.5 Gross Profit 801.8 732.3 9.5 as % of revenue 67.6% 70.1% 1 Adjusted Gross Profit 828.8 753.2 10.0 as % of revenue 69.9% 72.1% SG&A Expenses 321.4 295.6 8.7 as % of revenue 27.1% 2
Slide 20: Strong operating cash flow offset by higher interest & tax payments
STRONG OPERATING CASH FLOW OFFSET BY HIGHER INTEREST & TAX PAYMENTS (million Euro) H1 2024 H1 2023 Change EBITDA1 452.9 406.2 46.7 Movements in working capital (73.6) (76.7) 3.1 Changes in other assets & liabilities (20.9) (5.4) (15.5) Interest received/(paid) (39.1) (26.3) (12.8) Income tax paid (5
Slide 21: Solid net financial position with leverage just below 1.8x LTM EBITDA (pro-forma)
SOLID NET FINANCIAL POSITION WITH LEVERAGE JUST BELOW 1.8x LTM EBITDA (PRO-FORMA)3 (million Euro) 30-Jun-24 31-dic-23 Change Cash and cash equivalents 200.6 221.8 (21.2) Short-term debts to banks and other lenders (50.3) (99.9) 49.6 Loans and leases - due within one year1 (272.7) (353.7) 81.0 Loans
Slide 22: 2024 targets adjusted upward to reflect current performance
2024 TARGETS ADJUSTED UPWARD TO REFLECT CURRENT PERFORMANCE FY 2023 FY 2024 Actual Previous NEW Robust revenue across business units tracking slightly ahead of plan Revenue 2,082.3 2,260 – 2,320 2,300 – 2,340 yoy growth +12.4% • SPC confirmed to deliver mid-single digit organic growth (at CER), desp
Slide 23: Appendix
APPENDIX
Slide 24: Composition of revenue
COMPOSITION OF REVENUE DIVERSIFIED PORTFOLIO AND FOOTPRINT Therapeutic Areas Geographic Total Revenue H1 2024 Pharmaceutical Revenue H1 2024 Rare Disease 33.7% Metabolic Specialty and Primary Care Endocrinology USA (incl. Chemicals) 66.3% 2.1% Oncology Cardiovascular 2.8% 14.5% 10.9% 6.1% 16.0% Urol
Slide 25: H1 2024 Cough & Cold – trend normalizing after strong performance of last year
H1 2024 COUGH & COLD – TREND NORMALIZING AFTER STRONG PERFORMANCE OF LAST YEAR Cough & Cold1 – Revenue trend by quarter 2019, 2022, 2023 and 2024 million Euro 47.3 43.6 39.6 35.0 35.5 32.9 31.8 29.9 31.8 28.4 26.1 23.8 23.6 2019 22.8 2022 2023 2024 Q1 Q2 Q3 Q4 1) Includes RX and OTC products among o
Slide 26: Main products sales
MAIN PRODUCTS SALES (million Euro) H1 2024 H1 2023 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)1 101.4 103.5 (2.1) Eligard® (leuprorelin acetate) 64.0 55.0 16.5 Avodart® (dutasteride) and Combodart®/Duodart® 57.3 - n.s. (dutasteride/tamsulosin)2 Seloken®/Seloken® ZOK/Logimax® 53.1 49.0
Slide 27: H1 2024 results by operating segments
H1 2024 RESULTS BY OPERATING SEGMENTS Total Revenue H1 2024 EBITDA1 H1 2024 Specialty and Specialty and Primary Care (incl. Primary Care (incl. Chemicals) Chemicals) Rare Diseases 33.7% 36.2% Rare Diseases 66.3% 63.8% Margin on Revenue: Rare Diseases: EBITDA1 41.0% Specialty and Primary care: EBITDA
Slide 28: H1 2024 results – adjusting items
H1 2024 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA1 (million Euro) H1 2024 H1 2023 Change % Summary of key items Net Income 225.4 227.6 (1.0) Income Taxes 66.4 61.3 Financial (income)/expenses, net 46.8 24.6 o/w net FX (gains)/losses 2 7.5 (4.7) • FX losses of € 7.5 million in
Slide 29: Company declarations, disclaimers and profile
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE Statements contained in this presentation, other than historical facts, are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on
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Slide 31: Recordati
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