Recordati S.p.a. · MIL:REC
Recordati — Investor Presentation (September 2002)
26 slides from Recordati's investor presentation, Sep 5, 2002
Slide 1: Company presentation
Company presentation Versailles, September 5th , 2002
Slide 2: Recordati: growth drivers
Recordati • an excellent marketing company • with productive original research Growth drivers • focused sales effort • successful roll-out of lercanidipine • expansion of marketing presence in Europe 1
Slide 3: Key consolidated data
(million euro) KEY CONSOLIDATED DATA EBIT CAGR 41% 433.4 500 SALES 60 CAGR 23% 355.9 400 50 NET INCOME 271.8 CAGR 36% 40 300 214.9 192.3 30 200 EBIT 20 Net Income 100 10 0 0 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Gross margin 60% 25% EBITDA, EBITA, EBIT, Net Profit 80.7% 50% 20% Pharmaceu
Slide 4: Pharmaceutical Net Sales
(million euro) Pharmaceutical Net Sales 80.7% 400 349.6 CAGR Pharma as % of total 30% 269.3 300 55% 63.7% Int’l as % of pharma 188.5 200 200 140.4 122.5 150 100 19% 100 0 1997 1998 1999 2000 2001 50 0 1997 1998 1999 2000 2001 Italy International 3
Slide 5: EBITDA
EBITDA € 14.5 m € 11.3 m € 17.6 m € 80.9 m 1997 19.1% Pharmaceuticals 9.2% 2001 23.2% Pharmaceutical 19.1% chemicals As % of sales 4
Slide 6: Operational Highlights First Half 2002
OPERATIONAL HIGHLIGHTS First Half 2002 • Consolidated net sales up 18.9% • Pharmaceutical sales up 25.3% • International pharmaceutical sales up 29.6% • Lercanidipine sales up 46.3% • Increase in profits continues 5
Slide 7: First Half Composition of Sales
FIRST HALF COMPOSITION OF SALES (million euro) 1H 2001 1H 2002 Change % PHARMACEUTICALS 168.5 211.2 78.9% 25.3% 83.1% PHARMACEUTICAL 45.2 42.8 CHEMICALS 21.1% (5.2)% 16.9% TOTAL 213.7 254.0 18.9% 100.0% 100.0% 86.8 104.0 ITALY 40.6% 19.8% 40.9% INTERNATIONAL 126.9 150.0 18.2% 59.4% 59.1% 6
Slide 8: Sources of Growth
SOURCES OF GROWTH (% change, first half 2002 over first Price / half 2001) Volume Exchange Total PHARMACEUTICALS 19.1 % (1.8) % 17.3 % PHARMACEUTICAL 5.6 % (5.2) % (10.8) % CHEMICALS ORGANIC GROWTH, TOTAL 16.3 % (3.7) % 12.6 % CHANGE OF CONSOLIDATION 6.3 % 6.3 % PERIMETER TOTAL GROWTH 22.6 % (3.7) %
Slide 9: First Half EBITDA by Business Area
FIRST HALF EBITDA BY BUSINESS AREA (million euro) 1H 2001 1H 2002 Change % PHARMACEUTICALS 35.9 47.7 21.3% 22.6% 33.0% as % of sales PHARMACEUTICAL CHEMICALS 11.2 8.4 as % of sales* 22.5% 17.0% (25.4)% TOTAL 47.1 56.0 as % of sales 19.1% 22.0% 22.1% OPERATING DEPRECIATION 9.4 11.2 18.7% GOODWILL AMO
Slide 10: First Half Results
FIRST HALF RESULTS (million euro) 1H 2001 1H 2002 Change % Net Sales 213.7 254.0 18.9% Gross Profit 126.3 147.5 16.8% as % of sales 59.1% 58.1% Selling Expenses 64.0 73.4 14.8% as % of sales 29.9% 28.9% R&D Expenses 15.1 18.4 as % of sales 7.1% 7.3% 22.2% EBITDA 47.1 56.0 as % of sales 22.0% 19.1% 2
Slide 11: Capital Employed
(million euro) CAPITAL EMPLOYED 31 December 2001 30 June 2002 Net working 76.4 capital for 71.8 185.1 operations 177.0 Net non-current assets Capital employed: 261.5 Capital employed: 248.8 29.5 48.9 212.6 Net debt 219.3 Shareholders' equity 10
Slide 12: Main Products
MAIN PRODUCTS Breakdown of first half 2002 pharmaceutical sales Zanidip 20% (lercanidipine)) Other Products 21% Elopram 8% Peptazol/ Main Ulcotenal 7% Products Tora-Dol 7% OTC 5% Hexa line 3% Isocef 4% (biclotimol) Exomuc 3% Diezime 3% Other revenue 9% Urispas 3% Neo Codion 3% (flavoxate) Acequin/Ac
Slide 13: 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 bes
Slide 14: Lercanidipine Sales
LERCANIDIPINE SALES (million euro) 60 56.0 50 38.9 40 33.9 30 25.9 22.1 20 13.0 10 0 2000 2001 Direct sales Sales to licensees Total sales 13
Slide 15: Lercanidipine as a % of all calcium channel blockers
LERCANIDIPINE AS A % OF ALL CALCIUM CHANNEL BLOCKERS IMS data - 1Q 2002 - bubble size represents $ market value of CCB’s % share of CCB market 10 Argentina Australia 8 Austria 6 Belgium France 4 Germany Holland 2 Italy 0 Korea Spain 0 2 4 6 8 10 12 14 16 18 UK Quarters from launch 14
Slide 16: Roll Out Status and Plan
ROLL OUT STATUS AND PLAN LAUNCHED APPROVED FILED 38 countries (approx. 30% of world market) 20 countries 34 countries 15
Slide 17: Roll Out in Major Markets
ROLL OUT IN MAJOR MARKETS EUROPE FIVE 1998 ITALY, SPAIN, UK 2000 GERMANY 2001 FRANCE USA (filed 4Q 2001, approvable letter received) JAPAN (local phase III studies, launch target 2005) 16
Slide 18: Zanidip (lercanidipine) U.S. Potential
ZANIDIP® (LERCANIDIPINE) U.S. POTENTIAL • Hypertension affects over 50 million people in the U.S.. The market exceeds $ 13 billion of which CCB’s account for some 30% • Lercanidipine is licensed to Forest Labs for the U.S. market • NDA filed October 1st 2001, approvable letter received in August 200
Slide 19: Product Pipeline
PRODUCT PIPELINE LERCANIDIPINE 20 mg U.K. (EU reference LERCANIDIPINE / member state) 5 HT1A ACE-I COMBINATION FENTICONAZOLE ANTAGONIST (hypertension) LERCANIDIPINE (antifungal) (overactive bladder/ (hypertension) France urinary incontinence) with Pharmacia LERCANIDIPINE REC 2615 (hypertension) (fem
Slide 20: Filling the Pipeline: Ongoing R&D
FILLING THE PIPELINE: ONGOING R&D • Lercanidipine: - Advantageous clinical profile consolidates - Patent life in extension, two new patents filed - 20mg strength approved by U.K. Medicines Control Agency, mutual recognition to follow 19
Slide 21: 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 22: Filling the Pipeline: Ongoing R&D
FILLING THE PIPELINE: ONGOING R&D • Urology: - Collaboration agreement with Pharmacia - Lead optimization in the area of overactive bladder is at an advanced stage - Formulation activities are underway on a lead compound for female sexual dysfunction - Program on-going 21
Slide 23: Basis for 2002-2005 targets
Basis for 2002 - 2005 targets • Current business • Current products / late stage projects • Current geography • Zanidip® in U.S. included - Pipeline buildup in 2002 - 2003 approval and launch - Analysts’ estimates of peak sales in the U.S. range from $ 100 million to $ 500 million • Zanidip® in Japa
Slide 24: 2002-2005 Targets
2002-2005 TARGETS (million euro) 2001 2002 2005 CAGR 2001-2005 Net Sales 433.4 502 640 10.2% Gross Profit 251.3 301 400 as % of sales 58.0% 60.0% 62.5% 12.3% R&D 30.9 40 65 as % of sales 7.1% 8.0% 10.2% 20.4% EBIT 65.1 84 135 20.0% as % of sales 15.0% 16.7% 21.1% EPS (euro) 0.72 EPS CAGR to equal or
Slide 25: Sales and EBIT
(million euro) SALES and EBIT 700 Sales 600 500 400 300 EBIT 140 200 120 100 100 0 80 1997 1998 1999 2000 2001 2002 2003 2004 2005 60 40 20 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 24
Slide 26: Forward-looking statements
Statements contained in this presentation, other than historical facts, are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions bel