Krka, D. D., Novo Mesto · LJSE:KRKG
Krka, D. D., Novo Mesto — FY2023 Earnings Presentation
21 slides from Krka, D. D., Novo Mesto's earnings presentation, Jan 25, 2024
Slide 1: FY 2023 Preliminary Results
Krka Group Business Performance Webcast Presentation FY 2023 Preliminary Results David Bratož, Member of the Management Board Brane Kastelec, Finance Director 25 January 2024 www.krka.biz
Slide 2: Preliminary results 2023 highlights
Krka Group Business Performance Preliminary results 2023 highlights SALES 5Y CAGR: 6.4% ✓ Record 2023 sales accounted to €1,806.4m; +5% yoy ✓ Record operating profit (EBIT): €397.6m; +4% yoy In 1,717 1,806 EUR 1,489 1,530 1,566 million ✓ Net profit of €311.2m; -14% yoy 2019 2020 2021 2022 2023 ✓ Sal
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 49 subsidiaries outside Slovenia: 45% of all Krka Group workforce Over 100 million people use Krka‘s medicines worldwide Sales regions 17 bn FDF produced annually in va
Slide 4: Long-term Stable Operating Business Growth
Long-term Stable Operating Business Growth Growing faster than global pharmaceutical market Sales revenue CAGR (2005–2023) 7.3% 18 1,800 Net income CAGR (2005–2023) 8.6% 16 1,600 Global pharma market CAGR (2005–2022) 5.6% 14 1,400 12 1,200 Pieces sold billion EUR million 10 1,000 8 800 600 6 400 4 2
Slide 5: Krka Group Sales by Regions
Krka Group Sales by Regions Continuation of strong sales dynamics ❖ Largest market: Russian Federation Sales: EUR 347m; -10% yoy 2023 sales: EUR 1,799 million of goods and 333 387 347 311 327 services (+5% yoy; EUR +90,4 million) In EUR million 2019 2020 2021 2022 2023 Overseas Markets Slovenia EUR
Slide 6: Broad Product Portfolio
Broad Product Portfolio Sales by products and service groups in 2023 Health-resort & Rx tourist services Animal health products EUR 47.7 m +12% EUR 104.6 m (EUR +5.1 m) +12% (EUR +11.6 m) Other Rx CVS 2.6% Prescription 5.8% pharmaceuticals (Rx) Non-prescription -3% EUR 1,469.4 m +6% products (OTC) (
Slide 7: Research and Development
Research and Development Committed to continuous development of innovative branded generic products 14 new MA for products in 2023 698 MA procedures finalised, obtaining approvals for 497 prescription pharmaceuticals and 9 non-prescription products, thus bringing medications closer to patients in nu
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 EQUIPMENT Delivering the most demanding FORMULATIONS Great possibility of STRENGTHS Tailoring the COMBINATIONS Synergistic action & 150 projects in terms of
Slide 9: Investments
Investments Increasing the resilience and flexibility of our business model Notol 2 – Slovenia CAPEX 2023: €131.2m; FY 2024 plan: €150m Aiming the investments predominantly for increasing and technologically upgrading production facilities and capacities for development and quality management. ✓ Sys
Slide 10: FX volatility impact
FX volatility impact RUB rate negatively affecting net financial result EUR/RUB ❖ Negative FX volatility impact in 2023. 160 ❖ RUB decline that started in Q4 2022 continued in H1 2023, 140 stabilized in H2 2023. 120 ❖ RUB declined by 21.5% in 2023, average RUB rate was 20.6% 100 98 100 lower than in
Slide 11: Krka Group Operating Results
Krka Group Operating Results Maintaining high profitability Profitability Margins development 35% 33% EUR thousand 2023 2022 yoy 30% 29% 30% 27.8% 26% 25% EBITDA 502.3 488.2 3% 25% 23% 22% 22.0% 20% 18% EBITDA margin 27.8% 28.5% 21% 19% 20% 15% 17.2% EBIT 397.6 381.2 4% 16% 10% EBIT margin 22.0% 22.
Slide 12: Performance Indicators
Performance Indicators Maintaining long-term momentum Revenue in € million EBITDA in € million 2,000 1717 1806 600 502 502 1535 1565 464 488 1489 500 1,500 385 400 5y average (2019-2023) 1,000 300 EBITDA margin: 28.9% 200 500 5Y CAGR 6.4% 100 5Y CAGR 7.9% 0 0 2019 2020 2021 2022 2023 2019 2020 2021
Slide 13: Dividend Policy and Share Buyback
Dividend Policy and Share Buyback Management committed to stable capital allocation DPS and dividend yield* for the business year Treasury shares as of total dividend confirmed by AGM New share buy-back programme initiated in July 2023 7.00 7.0% 8.0% Repurchased almost EUR 14 million of treasury sha
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 23 January 2024 1,000 120 800 746 653 100 EUR thousand 759 20.4% Individual Slovenian investors 600 415 80 41.1% Slovenian institutional investors
Slide 15: Key strategic objectives and guidelines 2024–2028
Key strategic objectives and guidelines 2024–2028 At least 5% average annual sales growth in terms of volume / value To strengthen and optimise the vertically integrated business model To keep focus on long-term profitability To remain an innovative generic with a high degree of vertically integrate
Slide 16: Key strategic objectives and guidelines 2024–2028
Key strategic objectives and guidelines 2024–2028 Strengthen the presence in Krka's traditional markets and increase focus on Overseas markets Maintain existing and introduce new therapeutic product groups and enter new markets Increase the share of development and production of some active ingredie
Slide 17: ESG Governance of Krka Group
ESG Governance of Krka Group Adopting ESG policy & ESG goals Material ESG Topic Groups of the Krka Group Key Activities: ✓ Renewal of the ESG policy and integration of 1 Product quality & patient safety sustainability into the Krka Group Development Strategy (2024-2028), including strategic ESG goal
Slide 18: 2023 estimate and 2024 plan
2023 estimate and 2024 plan In line with strategic goals 2023 estimates 2024 plan Sales revenue Sales revenue: Sales revenue: EUR 1,806 million 1.717 1.806 1.850 EUR 1.850 million +5% compared to 2022 +2.4% compared to 2023 Net income Net income: EUR 311 million good EUR 310 million 2022 Estimate 20
Slide 19: Strengthening Indian Ties
Strengthening Indian Ties Establishing JV with long term Indian partner Laurus Labs Ltd Krka & Laurus – JV rationale: • Contractual partners for many years. • Opportunity to strengthen co-operation and create synergies by combining knowledge Krka Pharma Pvt. Ltd. and resources. • Establishing a JV c
Slide 20: © Krka, d. d., Novo mesto
INTERNALLY CONFIDENTIAL © Krka, d. d., Novo mesto
Slide 21: 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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