Laboratorios Farmaceuticos Rovi, S.a. · BME:ROVI

Laboratorios Farmaceuticos Rovi — H1 2014 Earnings Presentation

22 slides from Laboratorios Farmaceuticos Rovi's earnings presentation, July 2014

  1. Slide 1: First Half 2014 Financial Results

    Rovi First Half 2014 Financial Results July 2014

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Laboratorios Farmacéuticos Rovi, S.A. (“ROVI” or the “Company”), solely for its use during the attached presentation. The information and each of the opinions and statements contained in this document have not been verified by independent experts and, th

  3. Slide 3: Operating results

    Operating results Juan López-Belmonte Chief Executive Officer

  4. Slide 4: H1 2014 financial results - Highlights

    H1 2014 financial results - Highlights  Operating revenue increased by 6% to €116.3Mn, mainly driven by the strength of the prescription-based pharmaceutical business, where sales rose 10%, despite a new contraction of the Spanish pharmaceutical market forecast by Farmaindustria for 2014. Total rev

  5. Slide 5: Growth driven by the specialty pharmaceutical business strength…

    Growth driven by the specialty pharmaceutical business strength… Total operating revenue (€Mn) Operating revenue growth by category (€Mn) 120 140 +6% 116,3 +6% 120 109,6 0,1 115 0,2 100 -1% 30,0 30,4 80 110 116,3 60 +9% 40 79,0 86,1 105 109,6 20 100 0 H1 2013 H1 2014 H1 2013 H1 2014 Specialty pharma

  6. Slide 6: …with high profitability

    …with high profitability EBITDA (€Mn) and EBITDA margin (%) Net profit (€Mn) 16,8% 18,0% 16 18% 25 15% 15 20 +8% 12% 14 15 9% 13 +14% 20,9 10 15,0 18,4 12 6% 13,8 5 11 3% 0% 0 10 H1 2013 H1 2014 H1 2013 H1 2014 EBITDA EBITDA margin  EBITDA increased by 14% to €20.9Mn in H1 2014, reflecting a 1.2 pp

  7. Slide 7: Bemiparin, leading the growth

    Bemiparin, leading the growth Prescription-based pharma products sales (€Mn) Bemiparin sales (€Mn) 70 40 +9% 37,2 +10% 35 33,9 66 30 13,8 12,6 +10% 62 25 69,9 20 58 15 63,5 21,4 +9% 23,4 10 54 5 50 0 H1 2013 H1 2014 H1 2013 H1 2014 Spain International sales  Sales of prescription-based pharmaceutic

  8. Slide 8: Good performance of the product portfolio (1/2)

    Good performance of the product portfolio (1/2) Absorcol and Vytorin sales (€Mn) Thymanax sales (€Mn) 10 6 +20% 5 9 -8% 4 8 10,0 3 5,7 5,2 2 8,4 7 1 6 0 H1 2013 H1 2014 H1 2013 H1 2014 Medicebran and Medikinet sales (€Mn) 4  Sales of Absorcol and Vytorin, products launched in January 2011, increase

  9. Slide 9: Good performance of the product portfolio (2/2)

    Good performance of the product portfolio (2/2) Corlentor sales (€Mn) Exxiv sales (€Mn) 4 8 -4% +21% 6 3 4 2 3,6 3,5 6,8 5,6 2 1 0 0 H1 2013 H1 2014 H1 2013 H1 2014 Contrast imaging agents (€Mn) 13  Sales of Corlentor maintained a very positive +4% behaviour, with a 21% increase in sales to €6.8Mn.

  10. Slide 10: Value added toll manufacturing services

    Value added toll manufacturing services Toll manufacturing sales (€Mn)  Toll manufacturing sales decreased by 1% to €30.0Mn in H1 2014. 35 30,4 -1% 30,0  Very positive evolution of the injectables plant, whose 30 revenue increased by 8% to €9.3Mn in H1 2014. In line 25 with the increase in sales,

  11. Slide 11: Focus on Drug Release Platform & Glycomics

    Focus on Drug Release Platform & Glycomics Platform Product Potential indication Current situation Expected milestones Pre- I II III Clínical Risperidone, • Phase I results disclosed Schizophrenia monthly • Phase II ongoing Paliperidone,  Phase I start 2H 2014 ISM Schizophrenia monthly Letrozole, 

  12. Slide 12: Guidance 2014

    Guidance 2014 Operating revenue Operating revenue 2013 2014 mid single digit – €217.6Mn high single digit Our main strategic pillars to lead growth Specialty pharma Toll manufacturing • Bemiparin • Spare capacity both in the • Recent launches such as injectable plant and in the oral Vytorin, Absorco

  13. Slide 13: Financial results

    Financial results Javier López-Belmonte Chief Financial Officer

  14. Slide 14: Excellent revenue level with outstanding Bemiparin growth

    Excellent revenue level with outstanding Bemiparin growth Total operating revenue (€Mn) Bemiparin sales (€Mn) 40 37,2 140 +6% +9% 116,3 35 33,9 109,6 120 4,0 30 13,8 3,8 12,6 +10% 100 -1% 30,0 25 30,4 80 +4% 12,4 20 11,9 60 15 40 21,4 23,4 +10% 69,9 10 +9% 63,5 20 5 0 0 H1 2013 H1 2014 H1 2013 H1 20

  15. Slide 15: Gross margin impacted by the increase of customers invoiced for materials

    Gross margin impacted by the increase of customers who are invoiced for materials in the injectables plant Gross profit (€Mn) & Gross margin (%) 70% 75  Gross margin decreased by 0.2 pp in H1 2014 vs 61,8% 61,6% H1 2013 mainly due to: 60% 70  the increase in volumes manufactured for 50% clients wh

  16. Slide 16: Cost control along with commitment to R&D

    Cost control along with commitment to R&D SG&A expenses (€Mn) R&D expenses (€Mn) 50% 50 40,3% 38,5% 6 +14% 40% 40 5 30% 30 4 +1% 44,8 3 5,9 44,1 20% 20 5,2 2 10% 10 1 0% 0 0 H1 2013 H1 2014 H1 2013 H1 2014 SG&A SG&A sobre ingresos  SG&A expenses increased by 1% to €44.8Mn in H1 2014 mainly due to a

  17. Slide 17: EBITDA & EBIT

    EBITDA & EBIT EBITDA (€Mn) and EBITDA margin (%) EBIT (€Mn) and EBIT margin (%) 16,8% 18,0% 18% 25 16% 14,3% 18 13,8% 15% 20 12% 16 12% 15 9% +14% 8% 14 20,9 10 +10% 16,6 6% 18,4 15,2 4% 12 5 3% 0% 0 0% 10 H1 2013 H1 2014 H1 2013 H1 2014 EBITDA EBITDA margin EBIT EBIT margin  EBITDA increased by 14

  18. Slide 18: Net profit

    Net profit  Net profit increased by 8% to €15.0Mn in H1 2014. Net profit (€Mn)  Effective tax rate of 5.6% in H1 2014 vs 4.8% in H1 2013. This 16 favourable effective tax rate is due to:  deduction of existing R&D expenses; and 15  capitalisation of existing negative tax bases resulting from +8%

  19. Slide 19: Capital expenditure & Free Cash Flow

    Capital expenditure & Free Cash Flow Capex evolution (€Mn) Capex breakdown (%) 8 Maintenance capex and other; 21% 6 -3% Injectables; 45% 4 6,8 6,6 Granada 2 facility; 27% Alcalá facility; 0 7% H1 2013 H1 2014  €6.6Mn of capex invested in H1 2014. FCF (€Mn)  €3.0Mn of investment capex related to th

  20. Slide 20: Financial debt

    Financial debt Debt breakdown by source (%) Debt maturities by year (€Mn) 15 12 9 14,5 6 €25.2 million 3 3,0 3,0 3,0 1,7 0 2014 2015 2016 2017 2018 & beyond  Debt with public administration represented 96% of total debt, with 0% interest rate.  Gross cash position of €33.0Mn as of 30 June 2014 vs

  21. Slide 21: News-flow 2014

    News-flow 2014 Specialty pharma  Additional new in-licensing products to be launched Toll manufacturing  New contracts to be announced  Results of ISM-Risperidone® Phase I to be released in Q3 2014 R&D  Start of ISM-Risperidone® Phase II 20

  22. Slide 22: 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 Martínez Investor Relations +34 91 2444422 mcampos@rov

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