Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — H1 2021 Earnings Presentation
22 slides from Chemical Works Of Gedeon Richter's earnings presentation, Aug 3, 2021
Slide 1: Richter Group Report, H1 2021
Richter Group Report, H1 2021 Budapest, 3 August 2021
Slide 2: Highlights I.
Report, H1 2021 Highlights I. 296,803 HUFm 56.1% Consolidated Gross margin sales +6.5% 20.5% 295 HUF Operating margin EPS -9.5% 54,915 HUFm Net profit* -9.3% * Net income attributable to owners of the parent. 2
Slide 3: Highlights II.
Report, H1 2021 Women’s Healthcare 20 May 2021 - Drovelis® 20 July 2021 - Ryeqo® European Commission granted approval for the European Commission had granted approval for the Highlights II. marketing authorization of the novel combined oral marketing authorization of a novel oral treatment of contra
Slide 4: Reconciliation of consolidated sales by segments
Report, H1 2021 HUFm Increase Decrease Total Reconciliation of consolidates sales by segments The pharma segment accounts for 80% of consolidated turnover. The share of Group sales in the pharmaceutical segment declined within the Group. Exchange rate loss at consolidated sales level: HUF 4,692m 4
Slide 5: Consolidated sales by main business segments
Report, H1 2021 Consolidated sales +6.5% by main business segments HUF 296,803m HUF 278,692m +17.7% Wholesale and retail +3.3% Pharma H1 2021 H1 2020 Pharma W&R 5
Slide 6: Revenue by strategic pillars
Report, H1 2021 Revenue by strategic pillars (%) 2021 H1 28% 12% 35% 19% 6% Branded Traditionals WHC Cariprazine Biosimilars generics 2020 H1 29% 14% 33% 20% 4% 6
Slide 7: Change in the turnover of our selected products
Report, H1 2021 HUFm Increase Decrease Total Change in the turnover of our selected products Turnover of Vraylar® showed a robust growth in the second quarter 2021. When adjusting the base period figure for the sales related milestone received, year-on-year growth of royalties accounted for on behal
Slide 8: Key products (1/2)
Report, H1 2021 Key products (1/2) Cariprazine USA - Reagila® HUF 45,666m HUF 43,720m Vraylar® (EUR 127.6m) Egypt, Malaysia- royalty income market launch (increase of 23.9% yoy) Turnover +1.2%* As of 1 July 2021 the product Ongoing phase III also became available in * Significant milestone income in
Slide 9: Key products (2/2)
Report, H1 2021 Key products (2/2) Bemfola® HUF 10,425m Improving sales occurred as most of the fertility centres resumed their (EUR 29.1m) activities in many European countries. Nőgyógyászat +51.4% The robust increase was partly due to Turnover the exceptionally weak first half 2020. WHC Evra® HUF
Slide 10: Sales by geographies (%)
Report, H1 2021 Sales by geographies (%) HUF 237.3bn H1 2021 24% 9% 32% 23% 12% CIS Hungary Europe USA Other global +3.3% markets* H1 2020 27% 9% 29% 23% 12% HUF 229.9bn * Including the regions of China, Latin America and Rest of the World. 10
Slide 11: Change in turnover by geographies
Report, H1 2021 HUFm Increase Decrease Total Change in turnover by geographies In Europe substantial increases of Bemfola®, Terrosa® and royalty proceeds of Evra® resulted in an outstanding sales level. In the USA Vraylar®-related revenues grew marginally despite a one-off milestone payment last yea
Slide 12: Sales by main regions (HUFm)
Report, H1 2021 Sales by main HUFm regions (HUFm) 60 000 -3.0% +1.8% 50 000 +21.8% 40 000 30 000 +3.6% 20 000 10 000 0 Hungary WEU Russia USA H1 2021 H1 2020 (HUFm) H1 2021 H1 2020 Change Hungary 21,173 20,436 737 WEU 40,521 33,272 7,249 Russia 40,178 41,441 -1,263 USA 53,879 52,948 931 12
Slide 13: The effects of the COVID-19 pandemic
Report, H1 2021 The effects of the COVID-19 pandemic Our employees Sales Management Financials ▪ Preserving the health ▪ Decrease in demand ▪ Fluctuations in orders ▪ Solid foundations: of our colleagues due to limitation of capital strength, no ▪ Increase in level of remains our most doctor-patient
Slide 14: Strengths and challenges in key markets
Report, H1 2021 Strengths and USA Russia challenges in key markets Significant increase in royalty income New submitted prices came into effect related to the sales of Vraylar® during first half of 2021 Local manufacturers realised higher WEU sales in volume terms compared to declining sales of inte
Slide 15: Financials – Consolidated Highlights
Report, H1 2021 Consolidated Financials – Highlights as % of HUFbn Change % EURm total revenues Total revenue 296.8 6.5 829.7 Gross profit 166.4 4.3 465.3 56.1 Profit from operations 60.8 16.2 170.0 20.5 Profit for the period* 54.9 -9.3 152.4 18.5 HUF Change % EUR EPS (diluted) 295 -9.5 0.83 * Net i
Slide 16: Increasing gross profit and decreasing margin
Report, H1 2021 HUFbn Increasing 600 62% Significant increase in royalties received gross profit and 500 61% in respect of the sales of Vraylar® (HUF 8,422m) decreasing margin 60% 400 57.3% (HUFbn) 56.1% 59% Royalty in respect of Evra® has 300 58% appeared as a new element 57% 200 56% 100 55% 0 54%
Slide 17: S&M costs (HUFm)
Report, H1 2021 S&M costs HUFm (HUFm) 140 000 60% 120 000 50% 100 000 40% 80 000 30% 60 000 20% 40 000 10% 20 000 0 0% 2016 2017 2018 2019* 2020* H1 2020* H1 2021 S&M costs S&M percentage of sales * Reclassification of depreciation of intangible assets representing sales and other product-related li
Slide 18: R&D costs (HUFm) and split of R&D spending
Report, H1 2021 HUFm 60 000 15% R&D costs (HUFm) 50 000 40 000 10% 30 000 20 000 5% 10 000 0 0% 2016 2017 2018 2019 2020 H1 2020 H1 2021 R&D costs R&D percentage of sales Split of R&D spending (%) – H1 2021 CNS original Biosimilars WHC Branded generic research (including and traditional cariprazine)
Slide 19: Increasing operating profit and margin
Report, H1 2021 HUFm Increasing operating 120 000 20.5% 25% profit and margin 18.8% Significant Vralyar® royalty 100 000 (HUFm) 20% 80 000 Control of marketing and admin 15% expenses, reduced in proportion to 60 000 turnover. 10% 40 000 5% 20 000 The share of sales in the pharmaceutical 0 0% segment
Slide 20: Reconciliation of pharma segment operating profit
Report, H1 2021 HUFm Increase Decrease Total Reconciliation of pharma segment operating profit 20
Slide 21: Share Ownership Structure, 30 June 2021
Report, H1 2021 Corporate matters Share Ownership Structure 30 June 2021 Domestic investors 9% International investors Maecenas 66% Universitatis Corvini 10% Foundation 10% Mathias Corvinus Collegium Foundation 5% Hungarian State Holding Company 21
Slide 22: RICHTER GEDEON
RICHTER GEDEON