Recordati S.p.a. · MIL:REC
Recordati — Investor Presentation (February 2013)
16 slides from Recordati's investor presentation, Feb 12, 2013
Slide 1: Business Plan 2013-2015
Business Plan 2013‐2015 12 FEBRUARY 2013
Slide 2: Company development, recent history
Company development, recent history Euro millions Sales CAGR 6.9% Gross profit CAGR 4.8% 900 600 800 500 700 600 400 500 400 300 300 200 200 100 100 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 EBIT CAGR 4.9% Net income CAGR 6.9% 180 120 160 140 100 120 80 100 80 60 60 40 40 20 20
Slide 3: Diversification of geographical footprint
Company development, recent history Diversification of geographical footprint Other int'l sales; Other int'l sales; 20% Italy; 34% 19% Italy; 27% Other W. USA; 1% Europe; 2% Russia, CEE; 10% Spain; 4% Portugal; 8% Turkey; 8% Germany; 9% Other W. France; 15% Europe; 3% France; 24% Spain; 4% Portugal;
Slide 4: Diversification of product portfolio
Company development, recent history Diversification of product portfolio Pharmaceutical Pharmaceutical chemicals; 4% chemicals; 5% Other revenue; 2% Zanidip; 14% Other revenue; 1% Zanidip; 30% Zanipress; 6% Urorec; 4% Livazo; 2% Other local products; Zanipress; 0,3% 41% Other local products; 51% Oth
Slide 5: Key actions and directions
Strategy going forward Key actions and directions • Continue to grow organically and through acquisitions of companies and/or products. • Primary care business: The complexity of group structure requires different strategies area by area. • Maintain profitability in the Western European markets thro
Slide 6: Western European markets
Strategy going forward Western European markets Focus on profitability Italy France Germany Spain Portugal Other Western Europe • Primary care strongly impacted by generics. • Development of specialty areas. • Growth of the OTC business. • Sales (excluding orphan drugs) to decrease slightly in the 2
Slide 7: Main Central and Eastern European markets, Turkey included
Strategy going forward Main Central and Eastern European markets, Turkey included Sizeable organic sales growth in 2013 augmented by effect of acquisitions Further increase by a CAGR of ≈10% in the 2013‐2015 period Russia & CIS Poland Czech Republic and Slovakia Turkey • Growing market environment.
Slide 8: Rare diseases business
Strategy going forward Rare diseases business A worldwide business to generate sales of around € 140 million by 2015 • Geographical expansion of current portfolio with direct presence to be established in selected markets. • Consolidation of the newly acquired US business. • Continued search for new
Slide 9: OTC business
Strategy going forward OTC business An opportunity to be pursued in all European markets • Existing business reinforced in Italy, Germany, Poland and Russia during 2012. • Organization beefed‐up and aligned for further growth. • Continued search for the acquisition of well‐known brands on a market b
Slide 10: Development of corporate products
Strategy going forward Development of corporate products • Urorec® (silodosin) is a commercial success. • Positive trend confirmed in the plan. • Livazo® (pitavastatin) performing very well in markets where currently present. • Plan confirms this positive trend. • Due to market considerations plan d
Slide 11: Evolution of geographies
Evolution of geographies Direct sales in European emerging and new markets to increase to one third of total sales Other int'l sales; Other int'l sales; 19% Italy; 27% 17% Italy; 20% USA; 1% USA; 5% Russia, CEE; 10% France; 13% Russia, CEE; 19% Turkey; 8% Other W. France; 15% Germany; 9% Europe; 3%
Slide 12: Evolution of product portfolio
Evolution of product portfolio Growth of core products and drugs for rare diseases Pharmaceutical Other revenue; Pharmaceutical chemicals; 4% 2% chemicals; 3% Zanidip; 8% Other revenue; 2% Zanidip; 14% Zanipress; 7% Zanipress; 6% Urorec; 5% Urorec; 4% Other local Livazo; 4% Livazo; 2% products; 36%
Slide 13: Research and development
Strategy going forward Research and development • Plan includes around 9% of sales to be spent on R&D. • Includes the full development of NX‐1207 (a specialty product under license from Nymox), and Graspa® (an orphan drug recently licensed‐in from Erytech), and other projects. • Main focus on develo
Slide 14: Financial and investment strategy
Strategy going forward Financial and investment strategy • Cash flow, after payment of dividends, to be entirely re‐invested for the group’s growth. • Dividend pay‐out ratio of 50% of consolidated net income to be maintained. • Net debt of around one time EBITDA included in the plan. • Bolt‐on acqui
Slide 15: Financial projections
Financial projections 2013 targets and plan for 2015 2012 2013 2015 (million Euro) Actual Targets Plan Revenue 828.3 > 920 1025 ‐ 1075 Operating income 167.0 > 185 210 ‐ 220 (EBIT) Net Income 118.5 > 128 140 ‐ 150 14
Slide 16: 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