Slide 1: First quarter 2006 highlights
Milan – 4 May 2006 2006 - 2010 First quarter 2006 highlights ¾ Revenue € 161.7 million, up 9.2% ¾ Pharmaceutical sales up 11.2% ¾ International pharmaceutical sales up 13.8% ¾ Lercanidipine sales up 29.0% ¾ Operating income € 34.5 million, up 23.7% ¾ Net income € 21.3 million, up 28.6% 1
Slide 2: Pharmaceutical revenue by geographical area; Sales forces in Europe
Pharmaceutical revenue by geographical area UK International licensees Spain 2% 19% 7% Germany 8% Total revenue France Pharmaceuticals 23% 94% Italy 41% Data: First quarter 2006 Total revenue € 162 m Pharmaceutical Pharmaceutical revenue € 153 m chemicals 6% 2 Sales forces in Europe ¾ Total field fo
Slide 3: Pharmaceutical revenue; Composition of revenue
Pharmaceutical revenue % of pharmaceutical Licensed revenue 33% Zanidip® (lercanidipine) 29% Peptazol® /Ulcotenal® 9% (pantoprazole) 2% 65% Elopram® /Entact® 8% (citalopram/escitalopram) Other revenue Hexa line (biclotimol) 4% Tora-Dol® (ketorolac) 3% Proprietary Claversal® (mesalazine) 2% Isocef® (
Slide 4: Sources of growth; Lercanidipine sales
Sources of growth (% change, first quarter 2006 over Volume Price Exchange Total first quarter 2005) PHARMACEUTICALS 11.5 (0.7) 0.4 11.2 PHARMACEUTICAL (17.5) (2.7) 3.6 (16.6) CHEMICALS * TOTAL CHANGE 9.4 (0.9) (0.7) 9.2 * Excludes discontinued operations 6 Lercanidipine sales (million euro) 1Q 2006
Slide 5: First quarter 2006 results; Net financial position
First quarter 2006 results (million euro) 1Q 2006 1Q 2005* Change % Revenue 161.7 148.1 9.2% Gross Profit 108.4 96.0 12.8% as % of revenue 67.0% 64.8% SG&A Expenses 62.5 57.4 8.9% as % of revenue 38.6% 38.7% R&D Expenses 11.7 10.8 as % of revenue 7.3% 7.3% 8.5% Operating Income 34.5 27.9 23.7% as %
Slide 6: Outlook for 2006; 2006-2010 plan
Outlook for 2006 (million euro) 2005 2006 REVENUE 576.1 >600 OPERATING INCOME 111.1 >120 NET INCOME 64.5 >75 Assumptions: Not considering any future acquisitions 10 2006 - 2010 plan ¾ Priority to reinforce current geographic coverage in key EU markets ¾ Entry into additional European markets ¾ Sales
Slide 7: 2006-2010 plan; 2010 targets
2006 - 2010 plan ¾ Profitability of existing business to increase driven by gross margin ¾ Initially lower EBIT margin from acquired businesses expected to increase in following years ¾ Acquisitions accretive, in EPS terms, from the start ¾ € 500 million to be invested in the acquisition of companie
Slide 8: 2010 revenue target; Safe harbour and company profile
2010 revenue target Revenue in 2010 € 1,000 (CAGR 12%) nd c t a ns u io rod isit p qu g din y a c clu an In mp € 750 co (CAGR 5%) nic orga € 576 2005 2010 14 Safe harbour and company profile Statements contained in this presentation, other than historical facts, are “forward- “forward-looking statem