Slide 1: 2017 Preliminary FY results, 2018 Targets
2017 Preliminary FY results 2018 Targets CONFERENCE CALL - 8 FEBRUARY 2018
Slide 2: Full year 2017 highlights
Full year 2017 highlights • Revenue € 1,288.1 million, up 11.6% • EBITDA € 454.7 million or 35.3% of sales, up 22.5% • Operating income (EBIT) € 406.5 million or 31.6% of sales, up 24.1% • Net income € 288.8 million or 22.4% of sales, up 21.6% • Net debt € 381.8 million, an increase of € 183.0 milli
Slide 3: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 66.0% of revenue (million Euro) 2017 2016 Change % Zanidip® (lercanidipine) 120.6 114.0 5.8 Zanipress® (lercanidipine+enalapril) 69.2 69.1 0.2 Urorec® (silodosin) 92.8 85.2 8.9 Livazo® (pitavastatin) 39.2 35.1 11.7 S
Slide 4: A diversified product portfolio
A diversified product portfolio Other corporate products 13.0% Drugs for rare diseases 16.4% Seloken®/Logimax® 3.6% Livazo® 3.0% Urorec® 7.2% Zanipress® 5.4% OTC 16.0% Zanidip® 9.4% Subsidiaries’ local product portfolios 21.9% Pharmaceutical chemicals 3.2% Ortoton® (methocarbamol) - Germany 3% Other
Slide 5: Composition of revenue by geography
Composition of revenue by geography Continued growth (million Euro) 2017 2016 Change % Italy 251.0 229.9 9.2 France 124.7 115.1 8.4 Germany 122.4 101.1 21.1 U.S.A. 109.6 101.1 8.4 Russia, other CIS countries and Ukraine 107.0 79.5 34.6 Turkey 86.0 86.3 (0.3) Spain 82.2 76.4 7.6 Portugal 40.4 40.3 0.
Slide 6: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 14.8% (sales to licensees and exports) North Africa 3.1% Italy 20.1% Other CEE 3.8% Other W. Europe 4.2% France 10.0% Portugal 3.3% Spain 6.6% Germany 9.8% Turkey 6.9% Russia, other CIS U.S.A. 8.8% and Ukraine 8.6% Data: Full
Slide 7: Full year 2017 results
Full year 2017 results Further margin growth (million Euro) 2017 2016 Change % Revenue 1,288.1 1,153.9 11.6 Gross Profit 905.4 793.0 14.2 as % of revenue 70.3 68.7 SG&A Expenses 396.4 369.2 7.4 as % of revenue 30.8 32.0 R&D Expenses 100.3 83.7 19.8 as % of revenue 7.8 7.3 Other Income (Expense), net
Slide 8: Full year 2017 results: Operating segments
Full year 2017 results Operating segments Revenue EBIT Treatments for rare diseases 16.4% Treatments for rare diseases 24.1% Primary & specialty care Primary & specialty care 83.6% 75.9% EBIT margin on sales: Treatments for rare diseases, 46.3% Primary & Specialty care, 28.7% 8
Slide 9: Net financial position
Net financial position (million Euro) 31 Dec 2017 31 Dec 2016 Change Cash and short-term financial 302.1 138.5 163.6 investments Bank overdrafts and short-term loans (16.6) (15.7) (0.9) Loans – due within one year (51.7) (40.4) (11.3) Loans – due after one year (615.6) (281.1) (334.4) NET FINANCIAL
Slide 10: Financial projections - 2018 targets
Financial projections - 2018 targets • Sales to grow by 5% - 6% over 2017. • On a like-for-like basis sales are expected to grow low single digit. • Targets include an estimated net negative exchange rate effect of around 2% and an expected impact from generic competition of a further 2%. 10
Slide 11: Financial projections - 2018 targets
Financial projections - 2018 targets • Sales of the Zanidip® (lercanidipine)/Zanipress® (lercanidipine+enalapril) franchise expected to be in the € 175 -180 range in 2018. • Urorec® (silodosin) sales in 2018 expected to grow mid-single digit to around € 100 million. • Sales of Livazo® (pitavastatin)
Slide 12: Financial projections 2018 targets - Margins to continue to improve
Financial projections 2018 targets - Margins to continue to improve EBITDA 36%, EBIT 32%, Net income 23% 2017 2018 (million Euro) Actual Targets Revenue 1,288.1 1,350 - 1,370 EBITDA 454.7 490 - 500 Operating income 406.5 430 - 440 (EBIT) Net Income 288.8 310 - 315 No acquisitions included in 2018 ta
Slide 13: Financial projections - 2019 plan
Financial projections - 2019 plan • Organic growth to continue in 2019 at a rate of around 3% - 5%. • Margins to be achieved in 2018 are sustainable over the plan period. • Ongoing development of current rare disease pipeline. New projects to be added. • Dividend pay-out ratio of 60% of consolidated
Slide 14: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finan