Krka, D. D., Novo Mesto · LJSE:KRKG

Krka, D. D., Novo Mesto — FY2022 Earnings Presentation

20 slides from Krka, D. D., Novo Mesto's earnings presentation, February 2023

  1. Slide 1: Krka Group Business Presentation FY 2022 Preliminary Results

    Krka Group Business Presentation FY 2022 Preliminary Results February 2023

  2. Slide 2: Krka Group Business Performance

    Krka Group Business Performance Preliminary 2022 highlights SALES 5Y CAGR: 6.3%  Record 2022 sales accounted to €1,717.5m; +10% yoy  Highest net profit of €361.1m; +17% yoy In 1,530 1,566 1,717 1,327 1,489 EUR million  Sales increased in all 6 regions and all products & service groups 2018 2019 2

  3. Slide 3: Well-Diversified Activities

    Well-Diversified Activities Providing access to high quality affordable medicines Krka‘s presence on 70+ markets in 6 sales regions 48 subsidiaries outside Slovenia: 50+ million patients daily use Krka‘s 45% of all Krka Group workforce medicines worldwide Sales regions Almost 17 bn FDF produced annu

  4. Slide 4: Long-term Stable Growth of Krka

    Long-term Stable Growth of Krka Revenue rising along with manufacturing output Pieces sold CAGR (2005–2022) 6.9% THE BIG 5 over 1b in Sales revenue CAGR (2005–2022) 7.4% sales volume Global pharma market CAGR (2005–2021) 5.6% 18 1,600 Net income CAGR (2005–2022) 10.0% Manufacturing output growth (20

  5. Slide 5: Krka Group Sales by Regions

    Krka Group Sales by Regions Continuation of resilient sales dynamics  Largest market: Russian Federation Sales: EUR 387m; +16% yoy 387 2022 sales: EUR 1,708.5 million of goods 275 311 327 333 and services; (+10% yoy; EUR +148.3m) In EUR million 2018 2019 2020 2021 2022 Central Europe  2nd market P

  6. Slide 6: Broad Product Portfolio

    Broad Product Portfolio Sales by products and service groups in 2022 Diversified product Other Rx portfolio Rx CVS: CVS CNS: Gastro statins and other antidepressants, hypolipemics, ACE antipsychotics, anti- inhibitors, sartans, other Parkinson agents, anti- antihypertensives, other Alzheimer agents

  7. Slide 7: Research and Development

    Research and Development Committed to continuous development of innovative branded generic products 11 new MA for products in 2022, 9 Rx and 2 OTC Strategic R&D target Obtained 490 marketing authorizations for existing 358 Rx, 22 OTC, and 110 VET products ≈ 10% of sales  New MA in 2022: 800 experts

  8. Slide 8: Krka's Innovative Medicines

    Krka’s Innovative Medicines Innovative branded generic producer with own R&D ADVANCED UNIQUE STATE-OF-THE-ART UNIQUE PHARMACEUTICAL SINGLE PILL MORE THAN EQUIPMENT STRENGTHS FORMULATIONS COMBINATIONS Delivering the most demanding Great possibility of Tailoring the Synergistic action & 100 projects i

  9. Slide 9: Investments

    Investments Technologically improving and expanding production, R&D, QA and QC Notol 2 – Slovenia CAPEX FY 2022: €106m; FY 2023 plan: €130m Aiming the investments predominantly for increasing and technologically upgrading production facilities and capacities for development and quality management. 

  10. Slide 10: FX Impact on Net Financial Result

    FX Impact on Net Financial Result RUB volatility Favourable FX movements in 2022 EUR/RUB in 2022 160  RUB appreciated by 51% in H1 2022, depreciated by 28% in 140 H2 2022. 120  In total RUB appreciated by 8.8% in 2022. 85.3 92.0 100  The average value of RUB was 18.7% higher than in 2021. 56.5 59

  11. Slide 11: Krka Group Operating Results

    Krka Group Operating Results Maintaining high profitability Profitability Margins development 35% 33% EUR thousand 2022 2021 yoy 30% 30% 28.4% 26% 26% 25% EBITDA 488.2 463.6 5% 25% 23% 22.1% 20% 18% EBITDA margin 28.4% 29.6% 17% 21.0% 19% 20% 15% EBIT 380.3 354.8 7% 16% 10% 13% EBIT margin 22.1% 22.

  12. Slide 12: Performance Indicators

    Performance Indicators Maintaining long-term momentum Sales in € million EBITDA in € million 1717 502 488 1,750 1489 1535 1565 500 464 1,500 1331 385 400 343 1,250 1,000 300 5y average (2018-2022) 750 EBITDA margin: 28.5% 200 500 250 *5Y CAGR 6.3% 100 5Y CAGR 9.7% 0 0 2018 2019 2020 2021 2022 2018 2

  13. Slide 13: Dividend Policy and Share Buyback

    Dividend Policy and Share Buyback Management committed to stable capital allocation DPS and dividend yield* Treasury shares as of total** 6.00 7.0% 10.0% 10Y CAGR 14.1% 5.00 6.0% 8.0% 7.2% 5.0% 6.5% 4.00 6.0% 4.0% 5.1% 5.5% 4.7% 3.00 5.63 5.00 3.0% 3.8% 4.0% 2.00 4.25 2.7% 3.20 2.0% 2.1% 2.65 2.75 2

  14. Slide 14: Share Information and Shareholder Structure

    Share Information and Shareholder Structure Stable shareholder structure (KRKG SV) Average daily turnover and stock price YTD Largest shareholders as of 31 Dec 2022 1,200 120 1,000 100 746 EUR thousand 800 653 20.9% Individual Slovenian investors 517 759 80 40.4% Slovenian institutional investors 60

  15. Slide 15: ESG Governance of Krka Group

    ESG Governance of Krka Group Adopting ESG policy & ESG goals Material ESG Topic Groups essential for long-term Strategic activities: operating success of the Krka Group  ESG policy adopted by the management board & 1 Product quality & patient safety supervisory board is Krka's strategic document on

  16. Slide 16: Key Strategic Objectives

    Key Strategic Objectives Strengthening and optimizing our vertical integration Marketing & Product groups Financials ESG Sales • Highest percentage of new and • Focus on key markets, • Value / quantity growth > 5%, • Our basic task is to help people lead vertical integrated products, remain a health

  17. Slide 17: Forward Look

    Forward Look 2023 guidance and key challenges INTRODUCTION OF NEW 2023 GUIDANCE: PRODUCTS & MANAGMENT OF EXISTING PRODUCTS LIFE CYCLE Sales €1,755m Net income ≈ €300m est. CAPEX: €130m RECORDING PATIENT NEEDS & REQUIREMENTS STRONG MARKETING MONITORING & SALES CLIENT Key risks & challenges: NETWORK S

  18. Slide 18: Financial Calendar & Contacts

    Financial Calendar & Contacts FINANCIAL CALENDAR CONTACTS Date* Time* Thursday, 12 January 2023 Start of silent period Thursday, 26 January 2023 12:00 Release of Preliminary Results for 2022 KRKA IR Team 12:00 Press conference on business performance in 2022 KRKA, d. d., Novo mesto Thursday, 3 March

  19. Slide 19: Living a healthy life.

    (%4 KRKK Living a healthy life.

  20. Slide 20: Disclaimer

    Disclaimer The information, statements or data contained in this presentation has been prepared by Krka, tovarna zdravil, d. d., Novo mesto (hereinafter: the Company) and has been prepared solely for the purpose of informative presentation of the Company business operations. The presentation is not

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