Slide 1: 2017 Results
2017 RESULTS Madrid Stock Exchange March 2, 2018
Slide 2: Disclosure
DISCLOSURE This presentation contains no confidential material and may include publicly available market information which has not been independently verified by Reig Jofre. This information is given in summary form and does not purport to be complete. Information in this presentation should not be
Slide 3: Contents
CONTENTS 01. THE YEAR IN BRIEF 05. PROFIT AND LOSS ACCOUNT Highlights in the 2017 P&L 02. MAIN FIGURES 2017 Evolution 2017 vs 2016 06. BALANCE SHEET Evolution by quarters Highlights on the BS on 12/31/17 03. EVOLUTION OF THE BUSINESS AREAS 07. NOTES FOR THE FUTURE Sales and evolution by business are
Slide 4: The Year in Brief
01. THE YEAR IN BRIEF
Slide 5: The Year in Brief
THE YEAR IN BRIEF GOOD EVOLUTION OF RESTORATION OF RAW START OF THE SALES SALES IN THE TWO MATERIAL SUPPLY IN RECOVERY, NEW BUSINESS UNITS: THE ANTIBIOTIC LINE LAUNCHES AND TECHNOLOGICAL AND DURING THE LAST LEADERSHIP IN FORTÉ THERAPEUTIC QUARTER PHARMA IN FRANCE SPECIALIZATION RJF ADVANCED IN ITS I
Slide 6: Main Figures 2017
02. MAIN FIGURES 2017
Slide 7: Evolution 2017 vs 2016
EVOLUTION 2017 vs 2016 TURNOVER EBITDA (in million euros) (in million euros) 168 20,0 15,8 200,0 +4,3% 15,7 161,1 +0,6% 15,0 150,0 100,0 10,0 50,0 5,0 0,0 0,0 2016 2017 2016 2017 Total revenue (turnover + other income) exceeds € 170M OPERATING EXPENSES NET PROFIT (in million euros) (in million euros
Slide 8: Evolution by Quarters
EVOLUTION BY QUARTERS IMPORTANT GROWTHS IN THE LAST QUARTER THAT SIGNIFICANTLY IMPULSES YEAR RESULTS TURNOVER EBITDA (in million euros) (in million euros) 6,6 60,0 48,5 7,0 +57,3% 43,7 40,4 +16,0% 50,0 +3,1% 6,0 +1,2% 35,5 4,3 40,0 -4,1% 5,0 +3,9% 30,0 4,0 2,5 2,4 3,0 -23,6% -41,8% 20,0 2,0 10,0 1,0
Slide 9: Evolution of Business Areas
03. EVOLUTION OF BUSINESS AREAS
Slide 10: Sales Evolution by Business Area
SALES EVOLUTION BY BUSINESS AREA Turnover 2017 +4.3% 168 M€ DERMATOLOGY NUTRITIONAL ANTIBIOTICS AND SUPPLEMENTS INJECTABLE PRODUCTS 21% +5% 15% -3,8% 34.8 M€ 25.9 M€ RESPIRATORY/ENT OTHERS 49.7% 83.6 M€ 6% +14% 8% -2% 10.1 M€ 13.6 M€ Technological specialization area Therapeutic areas and health car
Slide 11: Technological Specialization Area
TECHNOLOGICAL SPECIALIZATION AREA ▪ The excellent progression of sterile injectable ANTIBIOTICS AND products (38.3% of sales in this category) that INJECTABLE PRODUCTS increased by 23.5% and made it possible to offset the fall in the antibiotic line in the first 49.7% quarters. 83.6 M€ +6.2% ▪ Resto
Slide 12: Therapeutic Areas and Health Care (i)
THERAPEUTIC AREAS AND HEALTH CARE (i) +2,4% DERMATOLOGY RESPIRATORY/ENT OTHERS 21% +6% 6% +14% 8% -2% 34.8 M€ 10.1 M€ 13.6 M€ NEW DEVELOPENTS ▪ Good evolution of all product lines: ▪ Complidermol 5α PLUS, ▪ Dermatology (21% of this area sales) first nutritional supplement grows 6%. for female androg
Slide 13: Therapeutic Areas and Health Care (ii)
THERAPEUTIC AREAS AND HEALTH CARE (ii) +2,4% NUTRITIONAL SUPPLEMENTS ▪ The line of nutritional supplements (15% of the 15% -15,4% sales) slowed its decline and decrease 3.8% 25,9 M€ -3,8% compared to 17% in the previous year. ▪ Change in the world leadership of the project ▪ 6 months of consecutive
Slide 14: Forté Pharma – Sales Distribution
FORTE PHARMA – Sales distribution ▪ Working for a better balance of the product portfolio and greater geographical diversification ▪ Reorganization of the management of the business – Spain and Portugal recently transferred under Reig Jofre Spain general manager EVOLUTION OF FORTE PHARMA PRODUCT RAN
Slide 15: International Progress
04. INTERNATIONAL PROGRESS
Slide 16: International Presence
INTERNATIONAL PRESENCE Spain represents 43% of RJF turnover 16
Slide 17: Sales by Geographical Area
SALES BY GEOGRAPHICAL AREA SALES DISTRIBUTION BY GEOGRAPHICAL AREA IN 2017 168 M€ ▪ Second consecutive year of significant growth in markets outside Europe (+ 39% in 2016 Spain 43% and + 14% in 2017). Europe 42% ▪ Spain grew by 10%, while sales in RoW the rest of Europe decreased by 15% 3.6%. ▪ In 2
Slide 18: Profit and Loss Account
05. PROFIT AND LOSS ACCOUNT
Slide 19: Highlights
HIGHLIGHTS • Income increase • Operating expenses increase • EBITDA increase • Net result improvement
Slide 20: Profit and Loss Account
(in euro) 31/12/2017 31/12/2016 Turnover 167,983,166 161,134,290 Changes in inventories -108,495 3,657,720 Procurements -63.970.940 -65,024,011 Work carried out for fixed assets 3,743,101 342,806 Other operating income 2,436,973 3,780,539 Personnel expenses -49,355,219 -45,977,794 Other operating ex
Slide 21: Total Revenue and EBITDA
TOTAL REVENUE +3.3% ▪ Increase of 4.3% in sales to € 168M and total income of € 170.4 M€ 170,4M with Other Operating Income. ▪ R&D activation policy due to a greater investment effort, which affects positively in € 3.7M R&D ACTIVATION 3.7 M€ +3.3% ▪ Structure expenses increase by € 6M due in part to
Slide 22: Operating Result and Net Profit
▪ Operating result in 2017 reached € 9M. This figure would OPERATING be in line with the previous year if we took into account RESULT the effect of: 9 M€ -2.7M€ ▪ € 0.9M increase in amortizations, due to the investments in production capacity, specially in 2016- 2017. FINANCIAL EXPENSES ▪ 2016’s pos
Slide 23: Balance Sheet
06. BALANCE SHEET
Slide 24: Highlights
HIGHLIGHTS ASSETS ▪ Investments in capex ▪ Deferred tax assets ▪ Inventories ▪ Decrease of current assets EQUITY ▪ Srip dividend ▪ Treasury stock LIABILITIES ▪ Financial debt ▪ Net debt/EBITDA 24
Slide 25: Assets
ASSETS (in euro) 31/12/2017 31/12/2016 ASSETS NON-CURRENT ASSETS Non-current assets Goodwill 27,744,603 27,946,893 +11.8 M€ Other intangible assets 32,521,414 32,191,043 Property, plant and equipment 46,748,718 36,537,702 Available-for-sale assets 605,490 1,167,058 Non-current financial assets 716,0
Slide 26: Non-Current Assets
Property, Plant & Equipment +10.2 M€ ▪ Increase of Property, Plant & Equipment of € 10.2M in 2017 due to new investments (gross investment of € 16.9M) Additional capacity (expansion) € 8.4M Mainteinance investments € 3.5M NON-CURRENT Serialisation* € 1.3M ASSETS 122 M€ R&D Projects € 3.7M TOTAL INVE
Slide 27: Current Assets
€ -5.5 M Inventories ▪ Reduction of inventories by € 5.5M, specially in raw materials and components, due to a better management of lead times CURRENT ASSETS € -7.9 M Current financial assets 70 M€ ▪ Decrease of current financial assets, due to the cash- in of the balance due by Naturex in July 2017
Slide 28: Equity
(en euros) 31/12/2017 31/12/2016 Equity Share capital 32,076,589 31.607.110 Reserves 102,183,036 95,792,056 Treasury shares -702.981 -2,092,374 Interim dividend paid during the year 0 0 Profit attributable to the parent company 8,828,435 7,676,288 Exchange differences -811.598 -330,066 Other compreh
Slide 29: Liabilities
(en euros) 31/12/2017 31/12/2016 TOTAL EQUITY 141,559,243 133,255,204 Non-current liabilities Capital grants 145,375 210,254 Provisions 682,236 613,531 Financial liabilities with credit institutions 9,478,644 11,989,392 Financial lease liabilities 7,612,622 5,244,334 Derivative financial instruments
Slide 30: Financial Debt
▪ Non-current financial debt was set at € 23.2 M, decreasing by € -0,6 M. Increase of leasing facilities due to financed investments in production. ▪ Significant reduction of current financial debt in € 6.9M, down to € 6.7M due to the non-utilisation of credit lines and other current facilities. FIN
Slide 31: Notes for the Future
07. NOTES FOR THE FUTURE
Slide 32: 4 Strategic Pillars
4 STRATEGIC PILLARS R&D TECHNOLOGICAL SPECIALIZATION TRADEMARKS / FORTÉ PHARMA INTERNATIONALIZATION
Slide 33: Technological Specialisation
▪ RJF has got a unique positioning in the world in: TECHNOLOGICAL SPECIALISATION ▪ Antibiotics from penicillin (oral and, specially, injectable) ▪ Injectable medicines stabilized and formulated through lyophilization ▪ Development of innovative generic products based on this technological platforms
Slide 34: R&D Main Investment Areas
I+D MAIN INVESTMENT AREAS R&D investment in 2017: € 8.1 M, 5% of sales • 75% of the company's sales come from the development of its own products • Balanced pipeline: • New formulations and indications in the areas of therapeutic specialization (dermatology, respiratory/ENT, gynecology) • Innovative
Slide 35: R&D Main Investment Areas
R&D MAIN INVESTMENT AREAS Estimated sales contribution in 2022: € 30M Risk: Market access INJECTABLE PRODUCTS ANTIBIOTICS Enlarging and developing Optimization of beta lactam the value-added specialized 47% 20% industrial processes to reach generic product portfolio new markets • Spread spectrum • I
Slide 36: Main Ongoing Developments
MAIN ONGOING DEVELOPMENTS 36
Slide 37: Collaborative Innovation
COLLABORATIVE INNOVATION Diagnosis PS Medicine FS Biological Gyne Derma Injectable Antiibotic Others 37
Slide 38: Links to Additional Information
08. LINKS TO ADDITIONAL INFORMATION
Slide 39: Links to Additional Information
LINKS TO ADDITIONAL INFORMATION ▪ Last news: www.reigjofre.com/en/news ▪ Webcast of 2015 results: www.reigjofre.com/en/investors/webcasts ▪ Subscription Center: www.reigjofre.com/en/subscription-center 39
Slide 40: Investor relations contact
Av. de les Flors 08970 Sant Joan Despi Barcelona, Spain T. +34 93 480 67 10 www.reigjofre.com Investor relations investors@reigjofre.com