Slide 1: H1-2023 results
H1-2023 results August 1st, 2023
Slide 2: 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 3: Presenting today
Presenting today Karl Rotthier Antoine Delcour Cécile Maupas Chief Executive Officer Chief Financial Officer Chief CDMO Officer P. 3
Slide 4: Agenda: Highlights, Financial performance, CDMO, outlook
1 - Highlights 2 - Financial performance 3 - CDMO 4 - 2023 outlook and mid-term perspectives Q&A session P. 4
Slide 5: Highlights
Highlights Karl Rotthier – Chief Executive Officer P. 5
Slide 6: Solid results, driven by the execution of the strategic roadmap
Solid results, driven by the execution of the strategic roadmap Continued commercial execution Negative impact of the suspension of prostaglandin production over the period Price increases, product mix, and operational efficiencies almost compensated inflation headwinds Launch of key initiatives to
Slide 7: H1 2023 key operational figures
H1 2023 key operational figures Net Sales Core EBITDA CAPEX €496.6m €62.5m €69.3m +2.6% Of which Sanofi 14.0% €244.1m of Net Sales -1.3% Core EBITDA Of which Other Clients margin €252.5m 12.6% +6.8% 51% in Growth Capex P. 7
Slide 8: Net Sales growth driven by sales to Other Clients
Net Sales growth driven by sales to Other Clients, and impacted by the suspension of prostaglandin production over the period In Million euros and annual growth +2.6% growth API Solutions: +0.2% CDMO: +9.8% €483.8m €496.6m CDMO: €122.2m + 1.9% + 18.5% CDMO: €134.2 Other 69.8 -1.2% -1.8% 82.7 Other C
Slide 9: Net sales per molecules
Net sales per molecules Per type of molecule H1 2023 ∆% vs H122 Key drivers Large molecules €35.0m -26.9% Discontinuation of a CDMO phase 3 project with Sanofi, and phasing impact Negatively impacted by the suspension of prostaglandin Highly potent molecules €43.7m -7.3% production (cc. €(15)m on H1
Slide 10: H1-2023 CAPEX – Investing in growth projects
H1-2023 CAPEX – Investing in growth projects FY 22 FY 23 target €138.3 m €120 m to €130 m Maintenance Capex 49% 86,9 Growth 69,3 Capex 51,4 51% 2022 2023 H1 H2 P. 10
Slide 11: Key initiatives to sustain future profitable growth
Key initiatives to sustain future profitable growth €50 million capex investment dedicated to the installation of a new state-of-the-art production plant at the Budapest site that will more than double the overall prostaglandin capacity of the site by 2027 Enhanced R&D organization with the creation
Slide 12: Financial performance
Financial performance Antoine Delcour – Chief Financial Officer P. 12
Slide 13: From Net Sales to Core EBITDA
From Net Sales to Core EBITDA In € millions H1-2023 H1-2022 Net sales 496.6 483.8 Slight decrease in Gross Profit due to the impact of the suspension Gross profit 97.0 97.7 of prostaglandin production over the period, and inflation headwinds, partially offset by price increases, product mix, and Gro
Slide 14: Price increases, product mix, and operational efficiencies almost compensated inflation headwinds
Price increases, product mix, and operational efficiencies almost compensated inflation headwinds +1.6 pts Total impact of input cost inflation in H1 23 vs. H1 22: €(37)m +4.8 pts cc. 65% of FY 2024 energy costs hedged at the end of June 2023 +3.1 pts -1.8 pts -0.9 pts -0.5 pts -8.6 pts Rounded
Slide 15: From EBITDA to Net Income and EPS
From EBITDA to Net Income and EPS In € millions H1-2023 H1-2022 EBITDA 52.1 60.8 Depreciation and Amortization 36.1 34.7 Operating Income 16.0 26.1 Financial Result (3.3) (2.3) Income before Tax 12.6 23.8 Including €46.8m deferred tax assets derived from the Income Tax expenses 50.1 (7.0) revaluatio
Slide 16: Working capital
Working capital Inventory - Months on Hand* 8,1 7,6 7,3 December In € millions June 2023 June 2022 2022 Working Capital 741.0 639.3 659.7 H1 2022 FY 2022 H1 2023 Of which 667.8 594.7 590.0 inventories Receivables – DSO** 79 Of which trade 70 70 238.0 264.2 266.6 receivables Of which trade (164.8) (2
Slide 17: Net Debt evolution
Net Debt evolution € in millions Of which €(66.0)m inventories (business seasonality and input cost inflation) Of which €(69.3)m Capex €30.1m trade receivables €(49.0)m payables Rounded figures €(90.6)m Core Free Cash-Flow compared by €(40.2)m in H1 2022 P. 17
Slide 18: Focus on CDMO
Focus on CDMO Cécile Maupas – Chief CDMO Officer P. 18
Slide 19: Increased number of RFPs from big pharma
Increased number of RFPs from « big pharma » Higher average value per proposal driven by increased commercial phases Number of RFPs received by type of Customers Proposals for Commercial Phase H1 2022 H1 2023 117 106 Biotech 10% 40% 59 of proposals for of proposals for 55 commercial commercial phase
Slide 20: Increasing opportunities from reshoring and repatriation linked commercial phase projects
Increasing opportunities from reshoring and repatriation linked commercial phase projects 18 79 -6 79 -12 Phase 1 17 of which 18 and earlier • 9 projects on pre- Of which approval or in the • 2 late-stage projects with Sanofi Phase 2 17 commercial phase, 14 driven by RSM and • 1 COVID-19 related API
Slide 21: Portfolio gradually de-risked towards commercial phase projects
Portfolio gradually de-risked towards commercial phase projects, while building the pipeline in the early-stage phases, particularly in large molecules H1 2022 H1 2023 Large H1-22 8 3 1 2 14 molecules 8 6 1 3 18 H1-23 45%* 47% of projects at of projects at commercial commercial H1-22 2 2 2 6 phase p
Slide 22: 2023 outlook and mid-term perspectives
2023 outlook and mid-term perspectives Karl Rotthier - CEO P. 22
Slide 23: On track to deliver FY 2023 guidance and mid-term perspectives
On track to deliver FY 2023 guidance and mid-term perspectives In light of H1 2023 results, the Group expects in 2023: Net Sales to increase between +7% and +8% (unchanged), with both API Solutions and CDMO growing double-digit in H2 Core EBITDA margin between 12.5% and 13.5% (vs. 12% to 14% initial
Slide 24: Q&A session
eCUrOAPI Q&A session
Slide 25: Appendix
eCUrOAPI Appendix
Slide 26: H1-2023 Net Sales Breakdown
H1-2023 Net Sales Breakdown Net sales breakdown CDMO Sanofi 10% API Solutions Other Clients 34% CDMO Other Clients 17% API Solutions Sanofi 39% 1 P. 26
Slide 27: Cost Structure
Cost Structure FY 2022 COGs breakdown Others (waste, maintenance,...) 23% Raw Materials 33% Depreciation & Amortization 7% Fixed costs / Variable costs Energy Staff Costs 12% 25% P. 27
Slide 28: 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 29: Taxes
Taxes As part of the carve-out operation in 2021, Sanofi has transferred the Hungarian business to EUROAPI Hungary. Sanofi has applied for a favorable tax treatment upon this asset transfer, i.e., the deferral of the capital gain taxation. Symmetrically, EUROAPI has maintained the historical value o
Slide 30: Financial calendar
Financial calendar 29 February 2024 Full-year 2023 results 22 May 2024 Annual General Meeting 31 July 2024 First-half 2024 results P. 30
Slide 31: 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. 31
Slide 32: euroapi.com
euroapi.com Photo credit Euroapi - Getty Images – J. Chiscano