Slide 1: Full-year 2022 results
Full-year 2022 results 08 March 2023
Slide 2: Forward looking statements
Forward looking statements Certain information contained in this document is forward looking and not historical data. These forward-looking statements are based on opinions, projections and current assumptions including, but not limited to, assumptions concerning the Group’s current and future strat
Slide 3: Presenting today
Presenting today Karl Rotthier Antoine Delcour Cécile Maupas Chief Executive Officer Chief Financial Officer Chief CDMO Officer 08 March 2023 P. 3
Slide 4: Agenda
1 - Highlights 3 - Financial performance 3 - Focus on CDMO 4 - 2023 outlook and mid-term perspectives Q&A session 08 March 2023 P. 4
Slide 5: Highlights
Highlights Karl Rotthier – Chief Executive Officer 08 March 2023 P. 5
Slide 6: Execution of the growth strategy on track
Execution of the growth strategy on track Solid Net Sales driven by solid performance in both CDMO and API Solutions Strong growth in Large Molecules’ strategic segment Increase in Gross Profit and Core EBITDA Core EBITDA margin impacted by the suspension of prostaglandin production in Budapest Laun
Slide 7: FY 2022 key operational figures
FY 2022 key operational figures Net Sales CAPEX Core EBITDA €976.6m €138.3m €120.0m +8.5% API Solutions 14.2% +5.3% +8.5% growth of Net Sales CDMO +18.3% Core EBITDA margin 12.3% 45% in Growth Capex Large Molecules +30% vs. 2021 +79.9% 08 March 2023 P. 7
Slide 8: Net Sales growth driven by solid commercial execution
Net Sales growth driven by solid commercial execution FY 2022: €976.6m / +8.5% 99,0 CDMO business: +18.3% + 33.8% CDMO 74,0 Accelerated building of projects’ pipeline Sanofi 168,4 + 10.7% ▪ Strong contribution from Sanofi’s late-stage CDMO 152,1 discontinued projects, and existing commercial Other C
Slide 9: Increased contribution from large molecules in line with growth strategy
Increased contribution from large molecules in line with growth strategy Per type of molecule 2022 ∆% vs 21 Key drivers Peptides and oligonucleotides growth driven by a Large molecules1 €98.4m +79.9% commercial stage contract with a US biotech, and a solid contribution from Sanofi products Highly po
Slide 10: Launch of major Capex projects to support future sustainable growth
Launch of major Capex projects to support future sustainable growth Jul. 22 - €24m* in a new 140,000 tons annual steam Payback generation biomass boiler in Elbeuf • Reduced exposure to energy fluctuations and < 3 years for projects availability < 7 years for strategic projects • Reduced site’s CO2 e
Slide 11: On track to achieve ESG trajectory
On track to achieve ESG trajectory Accelerate innovation for Create a safe and multicultural Uphold best-in-class corporate environmental sustainability workplace governance 100% sites 30% women in a 75% ISO14001/50001 leadership position by Achieved United Nations Global certification by 2023 2025
Slide 12: Acceleration of the company's transformation
Acceleration of the company’s transformation Culture change in motion for a more agile, responsive, and customer- centric company Adapt our operating model to support best-in-class CDMO roadmap Streamline and simplify processes and tools Enhance procurement agility to better manage input costs and m
Slide 13: Financial performance
Financial performance Antoine Delcour – Chief Financial Officer 08 March 2023 P. 13
Slide 14: Solid 2022 Results
Solid 2022 Results In € millions FY-2022 FY-2021 Change • Net sales up 8.5%, driven by API Solutions and CDMO commercial momentum Net sales 976.6 899.8 +8.5% Gross profit 176.9 153.3 Gross profit margin 18.1% 17.0% • Increase in Gross Profit despite the impact of the suspension of prostaglandin prod
Slide 15: Increase in Gross Profit despite energy and raw materials impacts
Increase in Gross Profit despite energy and raw materials impacts Core EBITDA negatively impacted by the suspension of prostaglandin production in late Q4 +1.5 pts +2.1 pts 12,3% +1.3 pts 14,0% 12,3% +0.3 pts +4.6 pts -8.1 pts -1.4 pts +1.5 pts Core EBITDA 20 21 Volu me Price & Mi x Per forman ce En
Slide 16: Solid balance sheet and financial flexibility
Solid balance sheet and financial flexibility € in millions 111,3 19,8 (66.5) 79.9 -2,6 -25.6 Of which €(31.7)m inventories €(29.6)m trade receivables (167.4) Of which €88.7m Capital increase €21.4m payables Of which €(138.3)m Capex in line with growth capex strategy Net Cash Position Operating Cash
Slide 17: Focus on CDMO
Focus on CDMO Cécile Maupas – Chief CDMO Officer 08 March 2023 P. 17
Slide 18: Acceleration of commercial momentum
Acceleration of commercial momentum Number of RFPs received almost doubled 230 Others Requests For Proposals received 5% 35% from big Pharma Fermentation 50% Biotech 20% Complex Chemistry 15% mid size 45% companies Large Molecules 120 30% ROW 7% USA 23% Europe 70% 2019-2020 average 2021 2022 08 Marc
Slide 19: Number of projects up 75% in 2022, with large molecules multiplied by 4
Number of projects up 75% in 2022, with large molecules multiplied by 4 Number of customers doubled in one year 79 Large 11 4 2 2 19 3 molecules 4 41 HP-APIs 1 2 2 2 7 45 Biochemistry 1 1 6 8 Complex 4 10 7 24 45 chemistry Phase 1 and earlier Phase 2 Phase 3 Marketed 31-Dec-21 New Projects Projects
Slide 20: Further balancing of the CDMO pipeline to accelerate profitable growth
Futher balancing of the CDMO pipeline to accelerate profitable growth 6 to 12 months lag between project attribution and first revenue recognized Pre-clinical/Phase 1 Phase 2 Request For Proposal Up to 4 years Phase 3 Commercial phase Up to 3 years 8-10 years process Up to 3 years Mostly lab activit
Slide 21: 2023 outlook and mid-term perspectives
2023 outlook and mid-term perspectives Karl Rotthier - CEO 08 March 2023 P. 21
Slide 22: Full year 2023 guidance
Full year 2023 guidance Between +7% and +8% Net sales growth, including double-digit growth in sales to Other Clients and low-single digit decrease in sales to Sanofi Core EBITDA margin between 12.0% and 14.0% Capex between €120m and €130m 08 March 2023 P. 22
Slide 23: Mid-term perspectives
Mid-term perspectives Net Sales to increase between +7% and +8% on average for the period 2023-2026* (vs. +6% to +7% for the period 2021-2025), driven by double-digit growth in Sales to Other clients (including API Solutions and CDMO). Core EBITDA margin to exceed 20% in 2026 (vs. 2025 initially exp
Slide 24: Q&A session
Q&A session 08 March 2023 P. 24
Slide 25: Appendix
Appendix 08 March 2023 P. 25
Slide 26: Glossary
Glossary Full-year 2021 Consolidated Consolidated key performance indicators for the full year 2021 are not comparable to those of the full year 2022, as the contractual framework with Sanofi was neither fully deployed in June 2021 nor was the target organization fully deployed. Restated performance
Slide 27: Readability and comparability of the different sets of financials
Readability and comparability of the different sets of financials 2021 2022 Carve-out process October 1, 2021 Sales Flows with Sanofi Flows with Sanofi (sales / purchases): Invoiced sales & costs Audited Gross (sales / purchases): At transfer pricing policy margin At deal terms consolidated financia
Slide 28: 2022 Net Sales Breakdown
2022 Net Sales Breakdown CDMO Sanofi 10% CDMO Other API Solutions Clients Other Clients 17% 35% API Solutions Sanofi 38% 1 08 March 2023 P. 28
Slide 29: Financial calendar
Financial calendar 11 May, 2023 Annual General Meeting 01 August 2023 First-half results 08 March 2023 P. 29
Slide 30: euroapi.com
euroapi.com Photo credit Euroapi - Getty Images – J. Chiscano