Slide 1: First half results
2019 First half results CONFERENCE CALL – 30 JULY 2019
Slide 2: First half 2019 highlights
First half 2019 highlights • Revenue € 743.3 million, up 6.8% • EBITDA € 279.3 million or 37.6% of sales, up 7.4% • Operating income (EBIT) € 242.6 million or 32.6% of sales, up 4.6% • Net income € 174.3 million or 23.4% of sales, up 6.1% • Net debt € 610.9 million, compared to net debt of € 588.4 m
Slide 3: Transaction to accelerate the development of our Rare Diseases business
Transaction to accelerate the development of our Rare Diseases business Acquisition of one marketed product and one late phase pipeline product in the endocrinology segment Key Highlights • Injectable somatostatin analogue for the treatment of Cushing’s disease and acromegaly Complementary portfol
Slide 4: Transaction snapshot
Transaction snapshot • Upfront cash consideration of $ 390 million Purchase Price • Regulatory milestones, in addition to royalties on net sales contingent upon approval and market access of osilodrostat Funding • Funded by existing liquidity and new debt facilities • Acceptable proforma Net Debt to
Slide 5: Strategic rationale
Strategic rationale 1. Reinforces Recordati as a major Rare Diseases player globally 2. Driver of long‐term value growth. Adds well established and high potential products with material revenue and EBITDA contribution 3. Expands our Rare Diseases franchise into attractive Endocrinology space 4. Leve
Slide 6: Delivering on strategy
Delivering on strategy Fully in line with Group’s strategic objectives announced at our Capital Markets Day on 9 May 2019 Group Objectives • Continuation of successful strategy • Steady organic growth from well diversified portfolio • Enhanced by accretive or strategic acquisitions in both SPC & Rar
Slide 7: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 67.1% of revenue (million Euro) 1H 2019 1H 2018 Change % Zanidip® (lercanidipine) 70.8 69.6 1.8 Zanipress® (lercanidipine+enalapril) 29.2 33.0 (11.4) Urorec® (silodosin) 54.5 51.2 6.5 Livazo® (pitavastatin) 26.7 24.0
Slide 8: A diversified product portfolio
A diversified product portfolio Other corporate products 12.2% (excluding OTC) Drugs for rare diseases 15,6% Seloken®/Logimax® 6.6% Livazo® 3.6% Urorec® 7.3% Zanipress® 3.9% OTC 19,3% Zanidip® 9.5% Subsidiaries’ local product Pharmaceutical chemicals 3.4% portfolios 17,7% Ortoton® (methocarbamol) ‐
Slide 9: Composition of revenue by geography
Composition of revenue by geography (million Euro) 1H 2019 1H 2018 Change % Italy 151.3 141.2 7.1 France 77.7 65.5 18.5 Germany 68.0 68.6 (0.9) Russia, other CIS countries and Ukraine 51.6 48.6 6.1 U.S.A. 51.6 49.7 3.9 Spain 46.6 43.8 6.3 Turkey 44.1 43.4 1.7 Portugal 21.8 20.7 5.6 Other CEE countri
Slide 10: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 15.0% (sales to licensees, exports, sales in ROW) Italy 21.1% North Africa 2.9% Other W. Europe 5.1% France 10.8% Other CEE 5.6% Portugal 3.0% Turkey 6.1% Germany 9.5% Spain 6.5% Russia, other CIS and U.S.A. 7.2% Ukraine 7.2%
Slide 11: First half 2019 results
First half 2019 results (million Euro) 1H 2019 1H 2018 Change % Revenue 743.3 696.1 6.8 Gross Profit 520.0 493.0 5.5 as % of revenue 70.0 70.8 SG&A Expenses 218.5 205.9 6.1 as % of revenue 29.4 29.6 R&D Expenses 59.8 53.6 11.4 as % of revenue 8.0 7.7 Other Income (Expense), net 0.8 (1.6) n.s. as % o
Slide 12: First half 2019 results
First half 2019 results Operating Segments EBIT Treatments for rare diseases 22.2% Revenue Treatments for rare diseases 15.6% Specialty & primary care 77.8% EBITDA Treatments for rare diseases 20.8% Specialty & primary care 84.4% Margin on sales: Specialty & primary Treatments for rare diseases: EBI
Slide 13: Net financial position
Net financial position 30 Jun 2019 31 Dec 2018 Change (million Euro) Cash and short‐term financial investments 103.5 198.0 (94.5) Bank overdrafts and short‐term loans (16.7) (16.9) 0.2 Loans – due within one year (78.1) (135.3) 57.2 Loans – due after one year* (619.6) (634.2) 14.6 NET FINANCIAL POSI
Slide 14: Financial projections: Revised 2019 targets
Financial projections Revised 2019 targets 2018 2019 Actual Targets (million Euro) • Revised 2019 revenue targets following good Revenue 1,352.2 1,460 ‐ 1,480 performance in the first half and the acquisition of Signifor®, Signifor® LAR® and osilodrostat from Novartis (expected 4Q EBITDA 499.1 535 –
Slide 15: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154‐bis of the Consolidated Law on Finan