Euroapi Sa · EURONEXT:EAPI
Euroapi Sa — H1 2024 Earnings Presentation
26 slides from Euroapi Sa's earnings presentation, Jul 31, 2024
Slide 1: H1-2024 results Presentation
H1-2024 results Presentation July 31st, 2024
Slide 2: Presenting today
Presenting today Ludwig de Mot Evelyne Nguyen Chief Executive Officer Chief Financial Officer P. 2
Slide 3: Forward looking statements
Forward looking statements Certain information contained in this presentation is forward looking and not historical data. These forward-looking statements are based on opinions, projections and current assumptions including, but not limited to, assumptions concerning the Group’s current and future s
Slide 4: H1 2024 Operational performance
H1 2024 Operational performance Ludwig de Mot Chief Executive Officer P. 4
Slide 5: Introduction: FOCUS-27 on track
Introduction FOCUS-27 on track Enhanced effectiveness Accelerated Improvements in Financial across the entire commercial industrial discipline organization momentum efficiencies • Portfolio optimization phase out agreed with customers • Commercial acceleration in Opiates • Solid and qualitative mome
Slide 6: H1 2024 highlights
H1 2024 highlights Positive momentum of sales to clients other than Sanofi offset by the strong decline in volumes demand from Sanofi and the suspension of production in Brindisi Solid Commercial activity in both API Solutions and CDMO (new contracts, cross selling, new projects) paving the way for
Slide 7: H1 2024 key operational figures
H1 2024 key operational figures Net Sales Core EBITDA CAPEX €448.7m €47.6m €61.3m (9.6)% Sanofi As % of Net Sales €207.8m Core EBITDA 13.7% -14.9% margin 10.6% Growth Capex Other Clients 56% €240.9m -4.6% P. 7
Slide 8: H1 2024 Consolidated Net Sales
H1 2024 Consolidated Net Sales 496.6 M€ 448.7 M€ CDMO (9.6%) Other 82,7 -1.2 M€ -29.0 M€ -7.3 M€ Clients (15.0%) (0.7%) -10.4 M€ (14.2%) 72,3 CDMO (12.7%) 51,4 Sanofi 44,1 API Solutions 169,8 • Volume decrease driven • 9.1% of Net Sales from • Ramp-up of a Large • Downsizing of two large Other Clien
Slide 9: H1 2024 CDMO projects portfolio
H1 2024 CDMO projects portfolio 69 14 10 73 19 Phase 1 17 Phase 2 9 • 7 projects in complex chemistry • 2 projects completed with 11 (4 early-stage, 3 late-stage) Sanofi Phase 3 12 • 6 in large molecules (5 early- • 2 project on hold 9 stage, 1 late-stage) • 1 in biochemistry (early-stage) Commercia
Slide 10: H1-2024 CAPEX
H1-2024 CAPEX FY 23 €129.0 m Maintenance Capex 59,7 44% H1 2024 CAPEX BREAKDOWN 69,3 Growth 61,3 Capex 56% 2023 2024 H1 H2 P. 10
Slide 11: H1 2024 Financial performance
H1 2024 Financial performance Evelyne Nguyen Chief Financial Officer P. 11
Slide 12: From Net Sales to Core EBITDA
From Net Sales to Core EBITDA In € millions H1-2024 H1-2023 Net sales 448.7 496.6 Gross profit 98.0 97.0 Gross profit margin 21.8% 19.5% 47.2 million in exceptional items linked to FOCUS-27 plan • €33.8 million of idle costs, including the ramp-down of two Core EBITDA 47.6 62.5 workshops in Frankfur
Slide 13: Change in Core EBITDA margin
H1 2024 Results Change in Core EBITDA margin Rounded figures + 1,2 pts + 2.4 pts + 2,1 pts + 3,0 pts 12,6% - 5,5 pts 0.0 pts - 1,9 pts 10.6% - 2,9 pts - 0.3 pts 9.2% H1 2023 Core Volume Impact Price & Mix Buserelin Stock Operating Energy & Raw Unfavorable Other GM OPEX Brindisi site, H1 2024 Core EB
Slide 14: From EBITDA to Net Income and EPS
From EBITDA to Net Income and EPS In € millions H1-2024 H1-2023 EBITDA (1.4) 52.1 Depreciation and Amortization 32.0 36.1 Operating Income (33.4) 16.0 Financial results negatively impacted by the increase Financial Result (8.1) (3.3) in interest rates, and the full drawdown of the RCF Income before
Slide 15: Working capital
Working capital In € millions Inventory - Months on Hand1 June December June 2024 2023 2023 8,5 8,1 7,6 Working Capital 671.8 701.5 741.0 Of which H1 2023 FY 2023 H1 2024 inventories 638.7 644.8 667.8 Of which trade Receivables – DSO2 176.7 216.3 238.0 receivables 70 Of which trade 56 (143.6) (159.6
Slide 16: Net Debt evolution
Net Debt evolution € millions, rounded figures Of which • €4.1m inventories • €40.0m trade receivables • €(16.2)m payables -171.0 -170.2 +66.1 -61.3 +5.1 -0.9 -8.3 Net Debt Position Operating Cash Flow Working Capital Cash Flow From Cash Flow From Exchange rates Net Debt Position December 2023 Inves
Slide 17: 2024 outlook
2024 outlook Ludwig de Mot Chief Executive Officer P. 17
Slide 18: 2024 outlook confirmed
2024 outlook confirmed Underlying assumptions • Downsizing of two large CMO contracts Between 8% and 11% • Continued decrease in sales to Sanofi decrease in Net Sales on a • Phasing impact in the CDMO business comparable basis The second-half performance • Impact of the suspension of APIs production
Slide 19: Q&A session
eCUrOAPI! Q&A session
Slide 20: Appendix
eCUrOAPI! Appendix
Slide 21: H1 2024 Net sales breakdown
H1 2024 Net sales breakdown By Activity CDMO Other Clients CDMO 16% API Solutions 26% Other Clients 38% CDMO Sanofi API 10% By Customer Solutions 74% Sanofi Others 46% Clients API Solutions 54% Sanofi 36% P. 21
Slide 22: H1 2024 Net sales per molecules
H1 2024 Net sales per molecules Large molecules 58.8 M€ +67.9% 13% Highly Potent molecules 47.1 M€ +7.8% Complex chemical 10% synthesis molecules 299.1 M€ -10.0% Biochemistry molecules 10% derived from fermentation 43.7 M€ 67% -48.8% P. 22
Slide 23: CDMO projects portfolio at the end of June 2024
CDMO projects portfolio at the end of June 2024 Portfolio gradually de-risked towards commercial phase projects Phase 1 and earlier Phase 2 Phase 3 Commercial 7 4 2 4 17 Large June 24 molecules Dec 23 7 3 2 3 15 26% 47% H1 24 June 24 11 2 by phase HP-APIs 15% Dec 23 2 2 2 6 12% June 24 2 6 8 Biochem
Slide 24: Glossary
Glossary EBITDA and Core EBITDA EBITDA corresponds to operating income (loss) restated for depreciation and amortization and net impairment of intangible assets and property, plant and equipment. Core EBITDA thus corresponds to EBITDA restated for restructuring costs and similar items (excluding dep
Slide 25: Contacts
Contacts Sophie Palliez-Capian Camille Ricotier Head of Investor Relations Investor Relations Associate + 33 6 87 89 33 51 + 33 6 43 29 93 79 sophie.palliez@euroapi.com camille.ricotier@euroapi.com ir@euroapi.com ir@euroapi.com P. 25
Slide 26: euroapi.com
euroapi.com Photo credit Euroapi - Getty Images – J. Chiscano