38 slides from Chemical Works Of Gedeon Richter's earnings presentation, Feb 29, 2024
Slide 1: Gedeon Richter Q4/FY2023 Earnings Report
Gedeon Richter Q4/FY2023 Earnings Report Chief Executive Officer presentation 29 February 2024
Slide 2: Financial Highlights
Financial Highlights HUF 747.4bn HUF 189.4bn HUF 235.3bn (EUR 1.96bn) (EUR 496mn) (EUR 616mn) Pharma sales EBIT1 Clean EBIT2 +13.9% +23.3% +14.3% HUF 86.6bn HUF 860 14.1% Free Cash-flow3 EPS Return on Equity4 -53.6 HUFbn +3.0%5 -0.7ppt5 1 EBIT: Operating profit/loss 2 Clean EBIT (cEBIT): Gross profi
Slide 3: Financial and operational highlights
Financial and operational highlights Financial highlights • Total revenues (incl. 5 months of Romanian wholesale/retail) came in at HUF 805bn (EUR 2.11bn); Pharma revenues were at HUF 747bn (EUR 1.96bn), up 14% YoY, in line with the latest guidance; Q4 sales growth moderated due to the intensifying
Slide 4: ESG: expanding access to healthcare – 2023 highlights
ESG: expanding access to healthcare – 2023 highlights Focus on Women’s Healthcare, in line with UN SDG 3.7 • Acquisition of OC Distributors for the marketing/distribution rights of several WHC products • Agreement with Mithra for the commercialization of a product candidate for the treatment of post
Slide 5: ESG: further decline in emissions in 2023
ESG:focused ESG further decline initiatives in emissions in 2023, progressing towards our 2030 targets Richter carbon footprint in Hungary (Scope 1-2-3, kt CO2eq/year) Key ESG messages 364 Environmental -6.6% -5.6% -7.5% • By 2023 Richter rolled out its carbon footprint 242 226 213 calculation to al
Slide 6: Financial Highlights
Financial Highlights 6
Slide 7: Pharmaceutical revenues (ex-FX) jumped by 21.6% in 2023
Pharmaceutical revenues (ex-FX) jumped by 21.6% in 2023 Pharmaceutical Revenues, cumulative (HUF bn, EUR mn) Pharmaceutical Revenues by region (HUF bn) +13.9% +21.6% Western Europe 115.1 135.2 798.0 1,957 747.4 Central Europe 133.1 656.3 Pharma other 148.3 GM Eastern Europe 174.5 164.5 BIO 166.0 Nor
Slide 8: Strong internal performance: double-digit growth (ex-FX) across the board
Strong internal performance: double-digit growth (ex-FX) across the board WHC Revenues GM Revenues Key messages +11.5% +22.3% • WHC continued to post significant volume +0.4% +13.6% growth both in Q4 and FY 2023, as new 280.2 256.6 products (like Drovelis® and Ryeqo®) do 255.7 229.2 225.9 226.9 part
Slide 9: Operating costs remain under control
Operating costs remain under control Operating costs as a % of Pharma revenues (%) Operating costs (pharma) (HUFbn) 40 69.8 71.3 34 36 65.9 66.5 34 33 35 33 32 31 32 8.9 63.0 12.1 S&M 30 31 29 11.5 12.1 30 28 CoGS 11.1 R&D 24 19.3 G&A 25 23 23 S&M 22.2 20 20 20 21 20 17.2 20.0 19.0 19 20 19 20 18 R&
Slide 10: Clean EBIT jumped YoY on surging CNS contribution
Clean EBIT jumped YoY on surging CNS contribution Pharmaceutical Clean EBIT, cumulative (HUF bn, EUR mn) Key messages +14.6% +28.6% • Clean EBIT (pharma) rose by 18% YoY in Q4 2023 to HUF 59bn, bringing the full-year Clean EBIT to a new all-time 236.3 265.0 619 high of HUF 236bn (or EUR 619mn), up 1
Slide 11: Below-the-line: FX losses and the windfall tax burden net profit
Below-the-line: FX losses and the windfall tax burden net profit Net Profit in FY2023, below-Clean EBIT items (HUF bn) 235.3 Including inventory and intangible impairment o/w HUF 34.9bn realized; HUF 3.2bn unrealized; 28.3 Q4 FX loss was HUF 5bn 17.7 Including HUF 3.8bn Teriparatide 189.4 income fro
Slide 12: Free Cash Flow: did not fully cover shareholder distribution and M&A
Free Cash Flow: did not fully cover shareholder distribution and M&A Free Cash Flow in FY2023 (HUF bn) Key messages Op. CF includes - HUF 28.3bn windfall tax for 2023 NWC change includes the • Free Cash Flow generation experienced a 2022 windfall tax of HUF - HUF 41.4bn realized FX losses 27.9bn, ac
Slide 13: 2024 guidance and outlook
2024 guidance and outlook Pharma Revenues (CER*) WHC and GM EUR 2.15-2.25bn Combined sales growth around 10% in 2024 to grow „low-to-mid-teens”% Including an approx. EUR 30mn increase planned in Clean EBIT (CER*) EUR 725-750mn the 2024 R&D budget YoY Neuropsychiatry CNS ▪ Continued strong double-dig
Slide 14: Research and Development
Research and Development R&D 14
Slide 15: R&D pipeline – changes during Q4 2023
R&D pipeline – changes during Q4 2023 Preclinical phase Clinical phase Regulatory & Launch Market Phase 1 Phase 2 Phase 3 Own Technology Development Clinical phase Neuropsychiatry Own Biotechnology RSL* Women’s Healthcare General Medicines new discontinued * Ready-to-Sell Licensed pipeline 15
Slide 16: Visible progress in R&D pipeline in 2023
Visible progress in R&D pipeline in 2023 R&D Women’s Healthcare We scout for innovative products and invest in late-stage R&D phases of projects in the following subsegments: female WHC fertility, benign conditions (Uterine fibroids & endometriosis), contraception, infectious diseases in female heal
Slide 17: Neuropsychiatry
Neuropsychiatry CNS 17
Slide 18: Impressive double-digit growth of cariprazine continues
Impressive double-digit growth of cariprazine continues CNS CNS | HUF mn Q4 2022 Q4 2023 Ch. % YoY FY 2022 FY 2023 Ch. % YoY Revenue (HUFbn) Revenues 42,144 61,111 45 145,902 205,662 41 Cost of Sales -311 -455 46 -736 -1,249 70 +41.0% Gross Profit 41,833 60,656 45 145,166 204,413 41 +45.0% Gross mar
Slide 19: Robust growth of cariprazine in the US, WEU and CEU
Robust growth of cariprazine in the US, WEU and CEU CNS Vraylar® Key messages +47.0% +40.8% • 41% YoY increase of royalty income from 58.3 194.6 Vraylar® in 2023 is the highest in recent 52.3 years. In Q4 Vraylar® royalty income grew 39.6 40.7 43.4 138.2 by 47% YoY. Overall increase was in-line 101.
Slide 20: Women's Healthcare
@) Women’s Healthcare. WHC (i) GEDEON RICHTER Health is our mission
Slide 21: Significant volume growth offset by FX headwind, investment in costs
Significant volume growth offset by FX headwind, „investment” in costs WHC WHC | HUF mn Q4 2022 Q4 2023 Ch. % YoY FY 2022 FY 2023 Ch. % YoY Revenue (HUFbn) Revenues 63,398 63,740 1 229,206 255,673 12 Cost of Sales -22,413 -26,153 17 -66,543 -86,348 30 +0.5% Gross Profit 40,985 37,587 -8 162,663 169,
Slide 22: EVRA successful relaunch but weaker in tenders; Bemfola stronger in Europe
| EVRA successful relaunch but weaker in tenders; Highlighted brands Bemfola is stronger in Europe but slows down in APAC WHC Bemfola® Key messages -11.3% +1.7% • Bemfola®, the flagship of our Fertility 6.1 6.2 21.6 22.0 6.0 19.6 portfolio had a solid performance in major 5.3 WEU markets and saw the
Slide 23: Surging sales of new products continued in Q4
Highlighted brands | Surging sales of new products continued in Q4 WHC Ryeqo® Key messages • Ryeqo® solid growth after receiving +226.4% +217.7% reimbursement in majority of European markets 2.4 6.6 • In Italy and Spain regional market access work is ongoing and some time is needed to unlock 1.7 com
Slide 24: Biotechnology
Biotechnology BIO 24
Slide 25: Record-high annual revenues, ongoing development program
Record-high annual revenues, ongoing development program BIO BIO | HUF mn Q4 2022 Q4 2023 Ch. % YoY FY 2022 FY 2023 Ch. % YoY Revenue (HUFbn) Revenues 12,257 13,394 9 41,185 46,201 12 Cost of Sales -5,539 -8,917 61 -27,827 -29,419 6 +9.3% +12.2% Gross Profit 6,718 4,477 -33 13,358 16,782 26 Gross ma
Slide 26: Both Teriparatide and CDMO revenues continued to expand
Both Teriparatide and CDMO revenues continued to expand BIO Terrosa® Key messages • The teriparatide biosimilar owned by RHT +3.7% -13.8% (Richter-Helm Biotech) has been licensed 6.0 6.2 20.9 21.7 out to partners across markets in six 5.0 5.3 5.2 continents. Richter has co-licensing rights for Europ
Slide 27: General Medicines
General Medicines GM 27
Slide 28: Negative FX intensified in H2, more than offset positive volume/mix and price impact
Negative FX intensified in H2, more than offset positive volume/mix and price impact GM GM | HUF mn Q4 2022 Q4 2023 Ch. % YoY FY 2022 FY 2023 Ch. % YoY Revenue (HUFbn) Revenues 62,589 58,591 -6 225,916 226,888 0 Cost of Sales -32,050 -32,316 1 -101,935 -105,142 3 -6.4% Gross Profit 30,539 26,275 -14
Slide 29: Diverse and well-balanced portfolio delivering solid growth
Diverse and well-balanced portfolio delivering solid growth GM Total GenMed revenue by therapeutic areas (quarterly HUF bn) Key messages 63 59 59 6 55 • Cardio and CNS are the GenMed powerhouses, where the 7 54 5 5 5 7 further growth is aspired Other 4 6 3 5 4 4 4 • We are extending the portfolio to
Slide 30: Appendix
Appendix @ Geveon RicuTER Health is our mission 30
Slide 31: Special items affecting consolidated financials
Special items affecting consolidated financials Windfall tax Reallocation of G&A overheads Windfall tax • Windfall tax rose marginally compared to Sales & Marketing 2022 (despite materially higher pharma revenues) but was slightly below our +0.4 -9.7 mid-year estimate 27.9 30.7 28.3 147.5 137.8 146.
Slide 32: HUF 38bn FX losses in 2023 (vs FX gain in 2022), partly offset by interest income
HUF 38bn FX losses in 2023 (vs FX gain in 2022), partly offset by interest income, gain on disposal Consolidated Q1-Q3 Q1-Q3 H1 2022 H1 2023 2022 2023 FY 2022 FY 2023 Unrealised exchange (loss)/gain 33.5 -26.5 36.7 -11.7 -12.3 -2.9 Realised exchange (loss)/gain 9.3 -22.0 27.9 -26.7 26.3 -41.4 Result
Slide 33: Business units' P&L in 2023
Business units’ P&L in 2023 Pharma FY 2023 WHC CNS BIO GM Pharma Other Eliminations Group total Other Revenues 255.7 205.7 46.2 226.9 13.0 747.4 70.9 -13.2 805.2 Cost of Sales -86.3 -1.2 -29.4 -105.1 -11.3 -233.4 -63.2 12.8 -283.8 Gross Profit 169.3 204.4 16.8 121.7 1.7 514.0 7.7 -0.3 521.3 Sales &
Slide 34: Strategic positioning and vision of the business units
Strategic positioning and vision of the business units Pharma | Pharmaceuticals segment Name of the Business Units Brief description Key strategic goal Therapeutic areas Leveraging our world class early phase R&D capability Maximize the potential of cariprazine, while developing in the central nervo
Slide 35: Leadership team
Leadership team Gábor Orbán István Hamecz Dr István Greiner CEO CFO R&D Director Appointed Chief Executive Officer from Graduated at Corvinus University Appointed Research Director in 2014. November 1, 2017. Began his professional Budapest in 1991. He started his career in Chemical engineer (M.Sc),
Slide 36: Leadership team
Leadership team Katalin Erdei Tibor Horváth Attila Szénási Tamás Szolyák Commercial Director Director of Pharmaceutical Director of Global Regulatory HR Director manufacturing Science & Portfolio Appointed Commercial After graduating at the Management Director in 2017. Has an MSc Director of Pharmac
Slide 37: Contacts and financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. Sector: Pharmaceutical | 25 April 2024 – AGM Company address: 1103 Budapest, Gyömrői út 19-21., Hungary | 14 May 2024 – Q1 2023 results | 6 August 2024 – H1 2023 results Telephone: +36 1 431 5764 | 12 November 2024 – Q1-Q3 2023 results Fa
Slide 38: Disclaimer
Disclaimer This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capita