Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — H1 2023 Earnings Presentation
30 slides from Chemical Works Of Gedeon Richter's earnings presentation, Aug 4, 2023
Slide 1: Gedeon Richter Earnings Report H1
Gedeon Richter Earnings Report H1 Chief Executive Officer presentation Augustus 4th, 2023
Slide 2: Financial Highlights
Financial Highlights 67.9 HUFbn 365 HUF -9.7 HUFbn Net Profit1 EPS Free Cash-flow -40.2% -40.2% n.a. 95.0 HUFbn 111.2 HUFbn 10.6% EBIT2 Clean EBIT3 Return on Equity4 +6.2% +23.1% -9.1%p 413.4 HUFbn 62.0% 362.1 HUFbn Consolidated sales Gross margin Pharma sales +14.5% +4.9%p +23.7% 1Profit for the pe
Slide 3: H1 2023 key messages
• Solid demand across markets and business units as well as higher than expected Vraylar royalty revenues boosted our topline. • CNS business unit may outperform compared to earlier guidance, while the rest of the pharma business is well on track to fulfil objectives. • The May sale of the wholesale
Slide 4: Strong financial performance in core operations undermined by unrealized FX losses
Strong financial performance in core operations undermined by unrealized FX losses Guidance • With Vraylar impact, overall performance is expected to be above initial guidance. EBIT • Year-on-year EBIT increased slightly, compensating for prior year’s CNS milestone income and current year’s Windfall
Slide 5: Special items affecting H1 financials
Special items affecting H1 financials Windfall tax Reallocation of G&A overheads Windfall tax Sales & Marketing • Relevant accounting standards specifically prohibit to record the prorated amount of -4.3 the estimated annual windfall tax (IFRIC 21). 29.8 -2.4 75.3 67.4 63.1 +19.3% • Actual income of
Slide 6: Worsening FX environment at the end of the period resulted in loss of 49 HUFbn
Worsening FX environment at the end of the period resulted in loss of 49 HUFbn partly off-set by gains from divestment Consolidated 2022 Q1 2022 H1 2023 Q1 2023 H1 Unrealised exchange (loss)/gain 3.1 33.5 -16.6 -26.5 Realised exchange (loss)/gain -4.2 9.3 -8.5 -22.0 Result of realised & unrealised f
Slide 7: Record high first half clean EBIT show slowdown compared to Q1
Record high first half clean EBIT show slowdown compared to Q1 due to external factors and milestone related income in prior year 413.4 Other 51.3 -46.3 -110.8 256.3 -157.1 Pharma 362.1 -75.3 -25.5 0.6 111.2 -39.4 -5.6 Revenues C ost of Sales Gross Profit S&M G&A R&D C lawback Milestone income Clean
Slide 8: Clean EBIT increase of 18% (without FX) compared to 22M6
Clean EBIT increase of 18% (without FX) compared to 22M6 shows a slowdown compared to Q1 as a result of special items EBIT (year-on-year) Clean EBIT (year-on-year) +23.1% +6.2% 111.2 106.4 95.0 89.5 90.3 90.3 +17.8% +0.9% 2022 M6 2023 M6 2023 M6 w/o 2022 M6 2023 M6 2023 M6 w/o FX effect FX effect +3
Slide 9: Pharma revenues grew above 20%, foreign exchange effects almost even out
Pharma revenues grew above 20%, foreign exchange effects amost even out by the end of the period FX impact by currencies 2023 M6 +23.7% USD 5.9 362.1 Other 0.7 3.5 +1.2% EUR 0.6 C NY -0.8 RUB -2.9 FX impact by region 65.9 +22.5% 3.4 Western Europe 2022 M6 -0.2 2.1 2023 M6 C entral Europe 1.2 Eastern
Slide 10: Combined S&M and G&A change is on par with Gross Profit increase
Combined S&M and G&A change is on par with Gross Profit increase, R&D expected to grow steadily in the second half Gross profit Sales & Marketing Research & Development +19.2% +6.1% 75.3 76.1 +20.5% 39.4 39.4 +6.2% 37.1 63.1 +24.4% 256.3 252.2 +22.4% 206.0 2022 M6 2023 M6 2023 M6 w/o 2022 M6 2023 M6
Slide 11: Windfall tax payment and additional investments decreased FCF position
Windfall tax payment and additional investments decreased FCF position; stockpiling effect slows down Free Cash-flow | HUFbn Tangible & Intangible | HUFbn -70.6 C APEX of tangible assets +37.1 60.8 Acquisition of intangible assets 61.3 +1.1 -31.1 45.5 29.4 23.1 9.2 24.2 21.5 28.0 19.4 24.2 14.7 36.3
Slide 12: Women's Healthcare and General Medicine profit contribution close to 50 HUFbn
Women’s Healthcare and General Medicne profit contribution close to 50 HUFbn Pharma 2023 M6 WHC CNS BIO GM Pharma Other Eliminations Group total other Revenues 129.7 89.4 21.3 114.6 7.1 362.1 59.1 -7.8 413.4 C ost of Sales -40.3 -0.5 -12.9 -51.3 -5.8 -110.8 -54.0 7.6 -157.1 Gross Profit 89.4 88.9 8.
Slide 13: No changes in our global coverage, FX changes greatest effect on North-America
No changes in our global coverage, FX changes had the greatest effect on North-America and Eastern European markets Neuropsychiatry | Revenue Women’s Healthcare | Revenue 84.1 2022 M6 46.7 46.7 2023 M6 37.9 2023 M6 w/o FX 31.2 32.6 78.4 22.6 18.6 57.3 18.3 15.7 12.8 13.6 2.3 7.3 9.9 1.6 9.9 9.5 2.2
Slide 14: Women's Healthcare | Healthy increase in profits with new product launches
Women’s Healthcare| Healthy increase in profits with continuous uptake on new product launches Clean EBIT Gross profit +9.9% +17.2% -24.0% 25.0 +6.4% 89.4 16.5 22.7 76.3 13.4 14.7 10.2 41.8 45.4 41.0 45.0 44.4 6.7 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2022 M6 2023 M6 2022 Q2 2022 Q3 2022 Q4 2023 Q
Slide 15: WHC | Highlighted brands | EVRA MAH transfers on track, Bemfola near double digit growth
WHC | Highlighted brands | EVRA MAH transfers on track, while Bemfola near double digit growth Bemfola® Key messages • Bemfola® showed strong performance in +10.4% some of European markets partly utilizing +14.5% +9.8% 12.4 12.3 11.2 the temporarily stock out of one of the 6.0 6.1 6.2 competitor. 5.
Slide 16: WHC | Highlighted brands | New products market uptake continues
WHC | Highlighted brands | New products market uptake continues Ryeqo® Key messages +244,8% • Significant growth in Germany, Nordics and +184.3% 2,4 2,4 +247,1% CEU markets. 1.3 • Reimbursement achieved in Spain, Italy and 1.1 positive feedback in Portugal 0.8 0.5 0.5 0,7 • Intensive regulatory work
Slide 17: Neuropsychiatry | Our main clean EBIT contributor grew near 30%
Neuropsychiatry | Our main clean EBIT contributor grew near 30% while progressing with R&D projects Clean EBIT Gross profit +29.5% +46.9% +12.3% 74.5 +45.0% 88.9 57.5 60.5 33.8 36.4 36.0 36.5 38.0 42.8 41.8 43.1 45.8 31.6 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2022 M6 2023 M6 2022 Q2 2022 Q3 2022 Q
Slide 18: CNS | Highlighted brands | Currency growth in Vraylar
CNS | Highlighted brands | Currency growth in Vraylar; US first quarter prescriptions trends continues Vraylar® Key messages +45.4% • Significant year-on-year increase recorded in royalties linked to sales of Vraylar® in 41.2 43.4 the USA. 39.6 40.7 +46.6% 29.9 84.1 78.4 +36.7% 57.3 • Close to 47% i
Slide 19: Biotechnology | R&D projects on track, Teriparatide sales strong
Biotechnology | R&D projects on track, Teriparatide sales maintaining strong, CDMO services following the trends Clean EBIT Gross profit +158.3% +0.8 +4.1 +43.2% 8.4 -1.3 6.7 6.6 -3.7 4.6 3.3 -4.5 -4.8 3.4 -6.4 1.8 -10.1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 -14.1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2
Slide 20: BIO | Highlighted brand | Teriparatide global revenues show overall increase
BIO | Highlighted brand | Teriparatide global revenues show overal increase with some noise between quarters Terrosa® Key messages • Sales proceeds from WEU region +4.5% +11.5% contributed substantially to the higher 10.3 10.4 +12.4% turnover of Terrosa® reported. 9.2 5.7 5.7 6.0 5.0 5.3 • Terrosa®
Slide 21: General Medicines | Changing FX trends are slowing gross profit
General Medicines | Changing FX trends are slowing gross profit which are further dented by additional efficiency improvement project costs Clean EBIT Gross profit -6.4% +8.6% -23.1% 24.3 22.7 +2.8% 58.3 63.3 17.1 14.2 35.1 33.9 11.0 9.0 28.7 30.5 29.5 8.5 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 202
Slide 22: Each focus area has a clear strategic vision
Each focus area has a clear strategic vision and consists of various type of products Pharma | Pharmaceuticals segment Strategic focus area’s short and long name Official definition Key strategic goal Therapeutic area We look after women’s health globally by setting trends By addressing unmet needs
Slide 23: Research and Development: We are dedicated to continuously investing into the future
Research and Development: We are dedicated to continuously investing into the future to serve our patients globally WHC CNS BIO GM Our focus is set on certain General Medicines builds a We develop innovative products Original R&D aims to develop therapeutic areas, notably portfolio offering for our
Slide 24: Pipeline on track with plans
Pipeline on track with plans Clinical phase Preclinical phase Phase I Phase II Phase III Technology Development Clinical phase Regulatory & Launch Neuropsychiatry Women’s Healthcare Biotechnology General Medicines new 24
Slide 25: ESG focused initiatives
ESG focused initiatives ENVIRONMENTAL SOCIAL GOVERNANCE • Climate change action plan aligned • Patient safety in focus with GMP • Comprehensive compliance with the EU’s Fit for 55 policy compliant manufacturing units, programme defining Group-wide package (55% reduction of GHG responsible marketing
Slide 26: ESG highlights from 2023 H1
ESG highlights from 2023 H1 ENVIRONMENTAL Environmental sustainability Internal communication campaign on sustainability issues to sensitive employees. Climate change Reduce carbon footprint: new solar panel system installed at our Hungarian biotechnology plant (covers 4% of the site’s annual consum
Slide 27: Leadership team
Leadership team Gábor Orbán István Hamecz Dr István Greiner C EO C FO R&D Director Appointed C hief Executive Officer from Graduated at C orvinus University Appointed Research Director in 2014. November 1, 2017. Began his professional Budapest in 1991. He started his career in C hemical engineer (M.
Slide 28: Leadership team
Leadership team Katalin Erdei Tibor Horváth Attila Szénási Tamás Szolyák C ommercial Director Director of Pharmaceutical Director of Global Regulatory HR Director manufacturing Science & Portfolio Appointed C ommercial After graduating at the Management Director in 2017. Has an MSc Director of Pharm
Slide 29: Contacts and Financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. | August 4, 2023 Sector: Pharmaceutical Publication of the Consolidated Report 6 months to June 2023 Company address: 1103 Budapest, Gyömrői út 19-21., Hungary | November 10, 2023 Publication of the Consolidated Report 9 months to Septemb
Slide 30: 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