Krka, D. D., Novo Mesto · LJSE:KRKG
Krka, D. D., Novo Mesto — Krka — Q1 2023 Earnings Presentation
22 slides from Krka, D. D., Novo Mesto's earnings presentation, May 18, 2023
Slide 1: Krka Group Business Performance Webcast Q1 2023 Results
Krka Group Business Performance Webcast Q1 2023 Results David Bratož, Member of the Management Board Brane Kastelec, Finance Director 18 May 2023
Slide 2: Q1 2023 Highlights
Krka Group Business Performance Q1 2023 Highlights SALES 5Y CAGR: 6.2% Sales in Q1 2023 accounted to €456.3m; +6% yoy Net profit amounted to €89m; -2% yoy In EUR 462 395 432 456 377 million Sales increased in 5 out of 6 sales regions 1-3 19 1-3 20 1-3 21 1-3 22 1-3 23 Strong sales increase i
Slide 3: Well-Diversified Activities
Well-Diversified Activities Providing access to high quality affordable medicines Krka‘s presence on 70+ markets in 6 sales regions 49 subsidiaries outside Slovenia: 50+ million patients daily use Krka‘s 45% of all Krka Group workforce medicines worldwide Almost 17 bn FDF produced annually in variou
Slide 4: Long-term Stable Operating Business Growth
Long-term Stable Operating Business Growth Revenue rising along with manufacturing output THE BIG 5 Pieces sold CAGR (2005–2022) 6.9% over 1b in Sales revenue CAGR (2005–2022) 7.4% sales volume Global pharma market CAGR (2005–2021) 5.6% 18 Net income CAGR (2005–2022) 10.0% 1,600 Manufacturing output
Slide 5: Krka Group Sales by Regions
Krka Group Sales by Regions Continuation of sales dynamics Q1 2023 sales: EUR 456.2 million of goods Largest market: Russian Federation Sales: EUR 88m; +5% yoy and services; (+6% yoy; EUR +25.6m) 78 97 79 84 88 In EUR million Central Europe Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 EUR 110.3m +11% (EUR +10.6m
Slide 6: Broad Product Portfolio
Broad Product Portfolio Sales by products and service groups in Q1 2023 Diversified product portfolio Rx Other Rx CVS: CNS: statins and other CVS antidepressants, hypolipemics, ACE Gastro antipsychotics, anti- inhibitors, sartans, other Parkinson agents, anti- antihypertensives, other Alzheimer agen
Slide 7: Research and Development
Research and Development Committed to continuous development of innovative branded generic products 3 new MA for products in Q1 2023 Strategic R&D target ≈ 10% of sales Obtained 74 marketing authorizations for existing 68 Rx, 3 OTC, and 3 VET products 800 experts engaged in New MA in Q1 2023: R&D
Slide 8: Product Life Cycle Management
Product Life Cycle Management Prolongation with new SPCs 180 More than 100 SPC launched in total Sales Average Net Price 160 140 120 100 Mono 80product launch – Year 0 1st combination launch – Year 2 2nd 60 combination launch – Year 6 3rd combination launch – Year 9 40 4th combination launch – Year
Slide 9: Krka's Innovative Medicines
Krka’s Innovative Medicines Innovative branded generic producer with own R&D ADVANCED UNIQUE STATE-OF-THE-ART UNIQUE PHARMACEUTICAL SINGLE PILL MORE THAN EQUIPMENT STRENGTHS FORMULATIONS COMBINATIONS Delivering the most demanding Great possibility of Tailoring the Synergistic action & 100 projects i
Slide 10: Investments
Investments Technologically improving and expanding production, R&D, QA and QC Notol 2 – Slovenia CAPEX Q1 2023: €21.8m; FY 2023 plan: €130m Aiming the investments predominantly for increasing and technologically upgrading production facilities and capacities for development and quality management.
Slide 11: Consolidated Income Statement
Consolidated Income Statement Maintaining high profitability EUR thousand Q1 2023 (%) Q1 2022 (%) YoY +4% Revenue 458,184 100 432,468 100 6% 339,274 326,902 Costs of goods sold 178,589 39 182,552 42 -2% Gross profit 279,595 61 249,916 58 12% 178,589 Other operating income 1,184 0 1,733 0 -32% 182,55
Slide 12: Krka Group FX gains / losses vs. EURRUB movement
Krka Group FX gains / losses vs. EURRUB movement Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 RUB -7.3% RUB +63% RUB -4.8% RUB -24.4% RUB -7.4% * FX losses -8.9m € FX gains +132m € FX losses -19.9m € FX losses -62.7m € FX losses -11.7m € ** average RUB -9.6% average RUB +26.1% average RUB +42.9% average
Slide 13: Krka Group Operating Results
Krka Group Operating Results Maintaining high profitability Profitability Margins development EUR million Q1 2023 Q1 2022 yoy 70% 62.4% 59% Gross profit 285.7 249.9 14% 60% 57% 57% 57% Gross profit margin 62.4% 57.8% 50% EBITDA 146.2 133.6 9% 40% EBITDA margin 31.9% 30.9% 33% 31.9% 30% 29% 30% 26% 2
Slide 14: Performance Indicators
Performance Indicators Long-term focus Sales in € million EBITDA in € million 502 488 501 2,000 1717 1755 500 464 1489 1535 1565 385 1,500 400 300 5y average (2018-2022) 1,000 EBITDA margin: 28.5% 458 200 146 500 *5Y CAGR 6.3% 100 5Y CAGR 9.7% 0 0 2019 2020 2021 2022 Q1 2023 2019 2020 2021 2022 Q1 2
Slide 15: Dividend Policy and Share Buyback
Dividend Policy and Share Buyback Management committed to stable capital allocation DPS and dividend yield* for the business year Treasury shares as of total dividend to be confirmed by AGM 7.00 7.0% 8.0% 6.00 10Y CAGR 15.2% 6.0% 5.00 5.0% 6.0% 5.4% 5.6% 5.1% 4.7% 4.00 4.0% 3.8% 4.0% 6.60 3.00 5.63
Slide 16: Share Information and Shareholder Structure
Share Information and Shareholder Structure Stable shareholder structure (KRKG SV) Average daily turnover and stock price YTD Largest shareholders as of 8 May 2023 EUR 1,200 120 1,000 759 100 746 EUR thousand 800 20.7% Individual Slovenian investors 653 40.6% Slovenian institutional investors 600 51
Slide 17: ESG Governance of Krka Group
ESG Governance of Krka Group Adopting ESG policy & ESG goals Material ESG Topic Groups essential for long-term Strategic activities: operating success of the Krka Group ESG policy adopted by the management board & 1 Product quality & patient safety supervisory board is Krka's strategic document on
Slide 18: Reduction of Our Carbon Footprint
Reduction of Our Carbon Footprint Strategic commitments and goals 2019–2022 Krka Group carbon footprint relative to revenue, employee total, and production volume Scope 1&2 GHG reduction: 2022 2021 2020 2019 Carbon footprint/Revenue (kg CO2-eq/€) 0.042 0.051 0.089 0.096 2019 → 2030 Carbon footprint/
Slide 19: Forward Outlook
Forward Outlook 2023 guidance and key challenges INTRODUCTION OF NEW 2023 GUIDANCE: PRODUCTS & MANAGMENT OF EXISTING PRODUCTS LIFE CYCLE Sales €1,755m Net income ≈ €300m est. CAPEX: €130m RECORDING PATIENT NEEDS & REQUIREMENTS STRONG MARKETING MONITORING & SALES CLIENT Key risks & challenges: NETWOR
Slide 20: Financial Calendar & Contacts
Financial Calendar & Contacts FINANCIAL CALENDAR CONTACTS Date* Time* Thursday, 12 January 2023 Start of silent period Thursday, 26 January 2023 12:00 Release of Preliminary Results for 2022 KRKA IR Team 12:00 Press conference on business performance in 2022 KRKA, d. d., Novo mesto Thursday, 3 March
Slide 21: Living a healthy life.
(%4 KRKK Living a healthy life.
Slide 22: Disclaimer
Disclaimer The information, statements or data contained in this presentation has been prepared by Krka, tovarna zdravil, d. d., Novo mesto (hereinafter: the Company) and has been prepared solely for the purpose of informative presentation of the Company business operations. The presentation is not