Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — M9 2022 Earnings Presentation
20 slides from Chemical Works Of Gedeon Richter's earnings presentation, Nov 8, 2022
Slide 1: Richter Group Report, M9 2022
Richter Group Report, M9 2022 Budapest, 8 November 2022
Slide 2: Main financial indicators
Report, M9 2022 Main financial 578,787 HUFm 58.2% indicators Consolidated Gross margin sales +27.4% 26.7% 1,052 HUF Operating margin EPS +110.0% 196,003 HUFm Net profit* +110.5% * Net income attributable to owners of the parent. 2
Slide 3: Extraordinary items affecting business
Report, M9 2022 Exchange rate effect Extraordinary items affecting business • HUF 72.0bn gain at consolidated sales level • Weakening HUF against most major currencies • Strengthening RUB • Strengthening USD against EUR One-off items • HUF 8,616m milestone income linked to R&D agreement with AbbVie
Slide 4: Reconciliation of consolidated sales by segments
Report, M9 2022 HUFm Increase Decrease Total Reconciliation of consolidates sales by segments (HUFm) The pharma segment accounts for 82% of consolidated turnover. The share of Pharma segment sales increased within the Group. 4
Slide 5: Revenue by strategic pillars
Report, M9 2022 Revenue by strategic pillars (%) 2022 M9 24% 12% 36% 22% 6% Branded Traditionals WHC Cariprazine Biosimilars generics 2021 M9 27% 12% 34% 21% 6% 5
Slide 6: Change in the turnover of our selected products
Report, M9 2022 HUFm Increase Decrease Total Change in the turnover of our selected products (HUFm) Turnover of Vraylar® royalty showed a strong growth of 38.3% (12.7% in USD terms) in the first three quarters of 2022. Sales growth of oral contraceptives primarily occurred in Russia, the EU region a
Slide 7: Key products (1/2)
Report, M9 2022 Key products (1/2) Cariprazine USA - Vraylar® By the end of third quarter of HUF HUF 98,518m royalty 2022 cariprazine was 103,758m income (increase of 38.3% available altogether in 49 (EUR 267.8m) +39.6% YoY) countries globally. Turnover First royalty proceeds were Acceptance for rev
Slide 8: Key products (2/2)
Report, M9 2022 Key products (2/2) Bemfola® The increase is primarily due to proceeds HUF 15,649m from WEU region. It was partly offset by (EUR 40.4m) declining sales recorded in Australia. Nőgyógyászat +4.4% Turnover WHC Evra® Revenue split: HUF 19,717m (EUR 50.9m) Royalty income – HUF 6,813m (34.6
Slide 9: Sales by geographies (%)
Report, M9 2022 Sales by geographies (%) HUF 473.1bn M9 2022 26% 7% 30% 25% 12% CIS Hungary Europe USA Other global +30.1% markets* M9 2021 25% 8% 31% 24% 12% HUF 363.7bn * Including the regions of China, Latin America and Rest of the World. 9
Slide 10: Change in turnover by geographies
Report, M9 2022 HUFm Increase Decrease Total Change in turnover by geographies In Western European region increasing sales of specialty portfolio (Terrosa®, Evra® and Drovelis®) were complemented by higher proceeds from contract manufacturing activities of Richter-Helm Biologics. In the USA Vraylar®
Slide 11: Financials – Consolidated Highlights
Report, M9 2022 Consolidated Financials – Highlights as % of HUFbn Change % EURm Total revenues Total revenue 578.8 27.4 1,494.1 Gross profit 336.7 33.5 869.2 58.2 Profit from operations 154.3 64.3 398.3 26.7 Profit for the period* 196.0 110.5 506.0 33.9 HUF Change % EUR EPS (diluted) 1,052.0 110.0
Slide 12: Increasing gross profit and margin
Report, M9 2022 HUFbn Increasing 700 58.2% 60% Very favourable exchange rate environment, primarily a weakening HUF gross profit and 600 59% against most major currencies notably USD and RUB, together with increasing margin 500 55.5% 58% strengthening USD and RUB against the (HUFbn) 400 EUR 57% 300
Slide 13: S&M costs (HUFm)
Report, M9 2022 S&M costs (HUFm) HUFm 120 000 60% 100 000 50% 80 000 40% 60 000 30% 40 000 20% 20 000 10% 0 0% 2017 2018 2019 2020 2021 M9 2021 M9 2022 S&M costs S&M percentage of sales 13
Slide 14: R&D costs (HUFm) and split of R&D spending
Report, M9 2022 HUFm 70 000 20% R&D costs 18% (HUFm) 60 000 16% 50 000 14% 12% 40 000 10% 30 000 8% 20 000 6% 4% 10 000 2% 0 0% 2017 2018 2019 2020 2021 M9 2021 M9 2022 R&D costs R&D percentage of sales Split of R&D spending (%) – M9 2022 CNS original Biosimilars WHC Branded generic research (includ
Slide 15: Increasing operating profit and margin
Report, M9 2022 Increasing operating HUFm 26.7% profit and margin 140 000 30% Extremely favourable FX environment (HUFm) 120 000 20.7% 25% One-off milestones received during the 100 000 20% reported period 80 000 15% 60 000 Significant Vraylar® royalty income 10% 40 000 20 000 5% 0 0% 2017 2018 2019
Slide 16: Reconciliation of pharma segment operating profit
Report, M9 2022 HUFm Increase Decrease Total Reconciliation of pharma segment operating profit 16
Slide 17: Main events
Report, M9 2022 Women Healthcare Main events 25 October 2022 – Ryeqo® Richter announced submission to European Medicines Agency for type II variation application for Ryeqo® for the treatment of endometriosis. Ryeqo® is already approved by the EMA for the treatment of moderate to severe symptoms of u
Slide 18: Extraordinary events
Report, M9 2022 Russian – Ukrainian conflict Extraordinary events • Responsibility ‒ Safe and sustainable supply of medicines to patients ‒ Humanitarian relief granted to those in need and population at large • Ukraine ‒ Commercial operations disrupted at the end of February of 2022 ‒ Commercial ope
Slide 19: Share Ownership Structure
Report, M9 2022 Share Ownership Structure Corporate matters 30 September 2022 Domestic investors 9% International 66% investors Maecenas Universitatis 10% Corvini Foundation 10% Mathias Corvinus Collegium Foundation 5% Foundation for National Health and Education of Medical Doctors 19
Slide 20: Richter Gedeon
RICHTER GEDEON