Recordati S.p.a. · MIL:REC
Recordati — FY2002 Earnings Presentation
20 slides from Recordati's earnings presentation, April 2003
Slide 1: An ongoing commitment to growth
An ongoing commitment to growth April, 2003
Slide 2: Key Consolidated Data
Key Consolidated Data (million euro) 492.7 500 90 EBIT SALES 433.4 CAGR 50% 80 CAGR 23% 400 355.9 70 NET INCOME 60 CAGR 44% 271.8 300 50 214.9 40 200 EBIT 30 Net Income 20 100 10 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 Gross margin 60% 30% EBITDA, EBITA, EBIT, Net Profit 84.1% 56% 25%
Slide 3: Pharmaceutical Net Sales
Pharmaceutical Net Sales (million euro) 84.1% 414.4 CAGR 400 Pharma as % of total 31% 349.6 55% 300 269.3 Int’l as % of pharma 65.3% 250 188.5 200 200 140.4 20% 100 150 100 0 1998 1999 2000 2001 2002 50 0 1998 1999 2000 2001 2002 Italy International 2
Slide 4: Operational highlights Full year 2002
Operational highlights Full year 2002 • Consolidated net sales up 13.7% • Pharmaceutical sales up 18.5% • International pharmaceutical sales up 18.9% • Lercanidipine sales up 53.1% • Significant increase in margins, EBIT up 37.0% and Net Income up 39.5% 3
Slide 5: Sources of growth
Sources of growth (% change, 2002 over 2001) Price / Volume Exchange Total PHARMACEUTICALS 17.7 % (3.0) % 14.7 % PHARMACEUTICAL 3.9 % (6.4) % CHEMICALS (10.3) % ORGANIC GROWTH, TOTAL 15.0 % (4.5) % 10.5 % CHANGE OF CONSOLIDATION 3.1 % 3.1 % PERIMETER TOTAL GROWTH 18.2 % (4.5) % 13.7 % 4
Slide 6: EBITDA by business area
EBITDA by business area (million euro) 2001 2002 Change % PHARMACEUTICALS * 80.9 107.2 23.2% 32.5% as % of sales 25.9% PHARMACEUTICAL CHEMICALS 17.6 12.6 as % of sales 19.1% (28.2)% 14.0% TOTAL 98.5 119.9 as % of sales 21.6% 22.7% 24.3% OPERATING DEPRECIATION 19.3 20.8 7.6% GOODWILL AMORTIZATION 14.
Slide 7: Capital employed
Capital employed (million euro) 31 December 2001 31 December 2002 Net working 76.4 capital for 79.8 185.1 operations 192.0 Net non-current assets Capital employed: 261.5 Capital employed: 271.8 44.7 48.9 212.6 Net debt 227.1 Shareholders' equity 6
Slide 8: Cash flow
Cash flow (million euro) 2001 2002 Net Income 36.0 50.2 Depreciation of Fixed Assets 13.6 14.8 Amortization of Intangible Assets 19.8 15.9 Write-down of Equity Investment 0 3.3 Cash Flow from Operations 69.4 84.2 Change in Working Capital (2.8) (3.4) Net Investment in Fixed Assets (23.3) (26.8) Net
Slide 9: Breakdown of 2002 pharmaceutical sales
Breakdown of 2002 pharmaceutical sales International licensees Spain 21.3% 5.2% Sophartex 6.4% France 22.3% Italy 44.8% 8
Slide 10: Main products
Main products Breakdown of 2002 pharmaceutical sales Zanidip 21% (lercanidipine) Other Products 22% Elopram 8% Main Peptazol/ 7% Ulcotenal Products Tora-Dol 6% Hexa line 4% OTC 4% Exomuc 4% (biclotimol) Isocef 3% Neo Codion 3% Other revenue 9% Diezime 3% Acequin/Acequide 2% Urispas 2% Lomexin 2% (fl
Slide 11: ZANIDIP (Lercanidipine)
ZANIDIP® (Lercanidipine) • Next generation calcium-channel blocker and first lipophilic DHP CCB to be filed with the FDA. • Natural once a day. Potent, long-lasting vasodilatory activity. Highly vasoselective with gradual onset, smooth and uniform blood pressure lowering activity. • Efficacy as best
Slide 12: Lercanidipine – Roll out status and plan
Lercanidipine – Roll out status and plan 43 launches USA 18 additional approvals ROW filed 4Q 2001 32 filings (inc. USA) approvable letter received additional clinicals required EUROPE 1998 Italy, Spain, UK 2000 Germany 2001 France (Pie slices represent relative JAPAN market value of calcium channel
Slide 13: Lercanidipine as a % of all calcium channel blockers
Lercanidipine as a % of all calcium channel blockers Italy % share of CCB market 10 Germany France 8 S.Korea Austria 6 Australia Spain 4 Belgium U.K. 2 Holland 0 0 2 4 6 8 10 12 14 16 18 20 22 Quarters from launch IMS data - 4Q 2002 - bubble size represents $ market value of CCB’s 12
Slide 14: Product pipeline
Product pipeline LERCANIDIPINE 20 mg European Mutual Recognition LERCANIDIPINE / Procedure successful 5 HT1A ACE-I COMBINATION ANTAGONIST (hypertension) LERCANIDIPINE (overactive bladder/ (hypertension) urinary incontinence) with Pharmacia REC 2615 (female sexual Japan and dysfunction) 32 countries
Slide 15: Filling the pipeline: Ongoing R&D
Filling the pipeline: Ongoing R&D • Lercanidipine-ACEI fixed combination: - New aggressive targets for blood pressure control - Combination of drugs needed for most patients - Patient compliance - Fixed combinations will play a significant role in the future hypertension market - Currently in phase
Slide 16: Filling the pipeline: Ongoing R&D
Filling the pipeline: Ongoing R&D • Urology: - Collaboration agreement with Pharmacia - 5HT1A receptor antagonists program for the treatment of unstable bladder. Clinical development of a candidate due to begin in 2003. - REC 15/2615, in development for the treatment of female sexual dysfunction, ap
Slide 17: Outlook for 2003
Outlook for 2003 • Pharmaceuticals sales growth in Europe in spite of price reductions, other cost containment measures • Lercanidipine market share increase in markets where launched • Program to restructure and reorganize pharmachem could involve the disposal of non strategic low margin activities
Slide 18: Outlook for 2003
Outlook for 2003 (million euro) 2002 2003 Net Sales 492.7 > 500 EBIT 89.2 > 87 Margin on sales: total 18.1 % 17.4 % ex US lercanidipine 16.5 % 17.4 % 17
Slide 19: Outlook to 2005
Outlook to 2005 • EBIT 2003 through 2005 CAGR of 10% • Lercanidipine in U.S., Japan upside 18
Slide 20: Forward-looking statements
Statements contained in this presentation, other than historical facts, are “forward- “forward- looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). 1995) . These statements are based on currently available information, on current best estimates, and