Slide 1: 2019 Preliminary FY results, 2020 Targets
2019 Preliminary FY results 2020 Targets CONFERENCE CALL – 14 FEBRUARY 2020
Slide 2: Full year 2019 highlights
Full year 2019 highlights • Revenue € 1,481.8 million, up 9.6% with strong mid-single digit organic growth • EBITDA € 544.0 million or 36.7% of sales, up 9.0% • Operating income (EBIT) € 465.3 million or 31.4% of sales, up 5.2% • Net income € 368.9 million or 24.9% of sales, up 18.1%, and includes a
Slide 3: Signifor, Signifor LAR and Isturisa
Signifor®, Signifor® LAR and Isturisa® Recordati Rare Diseases reinforcing its worldwide organization to enhance commercial reach and expertise in endocrinology Acquisition from Novartis of worldwide rights to Signifor®, Signifor® LAR and Isturisa®. Transaction closed 23 October 2019. Upfront cash c
Slide 4: Signifor, Signifor LAR
Signifor®, Signifor® LAR Signifor®, Signifor LAR®, an opportunity for continuous growth across the globe • Injectable somatostatin analogue for the treatment of Cushing’s disease and Ex-factory net sales: +4% vs PY* acromegaly. IP protection until 2026. Orphan drug designation in the US and Europe.
Slide 5: Isturisa
Isturisa® Approved in EU as a new therapeutic option for patients with Cushing’s Syndrome The European Commission (EC) granted marketing authorization for Isturisa® (osilodrostat), indicated for Change of mUFC in individual patients during the randomized withdrawal period the treatment of endogenous
Slide 6: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 68% of revenue (million Euro) 2019 2018 Change % Zanidip® (lercanidipine) 134.4 120.8 11.3 Zanipress® (lercanidipine+enalapril) 58.9 59.4 (0.7) Urorec® (silodosin) 107.1 101.1 6.0 Livazo® (pitavastatin) 53.8 46.4 15.
Slide 7: A diversified product portfolio
A diversified product portfolio Other corporate products 13.0% (excluding OTC) Drugs for rare diseases 16.9% Seloken®/Logimax® 6.6% Livazo® 3.6% Urorec® 7.2% Zanipress® 4.0% OTC 18.6% Zanidip® 9.1% Pharmaceutical chemicals 3.1% Subsidiaries’ local product Other revenue 0.9% portfolios 17.0% Data: Fu
Slide 8: Composition of revenue by geography
Composition of revenue by geography (million Euro) 2019 2018 Change % Italy 280.1 265.7 5.4 France 157.3 131.8 19.4 Germany 138.6 136.8 1.3 Russia, other CIS countries and Ukraine 120.2 105.6 13.8 U.S.A. 109.6 101.0 8.5 Spain 94.7 88.8 6.5 Turkey 88.6 75.0 18.2 Portugal 44.5 41.7 6.7 Other CEE count
Slide 9: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 14.1% (sales to licensees, exports, sales in ROW) Italy 19.5% North Africa 2.8% Other W. Europe 5.4% France 11.0% Other CEE 5.7% Portugal 3.1% Turkey 6.2% Germany 9.6% Spain 6.6% Russia, other CIS and U.S.A. 7.6% Ukraine 8.4%
Slide 10: Full year 2019 results
Full year 2019 results (million Euro) 2019 2018 Change % Revenue 1,481.8 1,352.2 9.6 Gross Profit 1,044.9 956.7 9,2 as % of revenue 70.5 70.7 SG&A Expenses 445.6 401.2 11.1 as % of revenue 30.1 29.7 R&D Expenses 129.7 109.7 18.2 as % of revenue 8.8 8.1 Other Income (Expense), net (4.4) (3.5) 24.9 as
Slide 11: Full year 2019 results
Full year 2019 results Operating Segments EBIT Treatments for rare diseases 23.5% Revenue Treatments for rare diseases 16.9% Specialty & primary care 76,5% EBITDA Treatments for rare diseases 22.3% Specialty & primary care 83.1% Margin on sales: Specialty & primary Treatments for rare diseases: EBIT
Slide 12: Net financial position
Net financial position 31 Dec 2019 31 Dec 2018 Change (million Euro) Cash and short-term financial investments 187.9 198.0 (10.1) Bank overdrafts and short-term loans (13.4) (16.9) 3.5 Loans and leases – due within one year (149,8) (135.3) (14.5) Loans and leases – due after one year* (927.4) (634.2
Slide 13: Financial projections - Key assumptions
Financial projections - Key assumptions • Mid single digit Net Revenue growth, driven by: • Continued underlying volume growth in Specialty and Primary Care off-setting impact of generic entries for Urorec® (silodosin) in Q1 and Livazo® (pitavastatin) in Q2 • Double digit growth of the rare diseases
Slide 14: Financial projections 2020 targets - excluding any new acquisitions
Financial projections 2020 targets - excluding any new acquisitions 2020 2021 Plan (1) 2019 Actual Targets (inc. M&A) (million Euro) Revenue 1,481.8 1,550 - 1,580 ±1,700 EBITDA 544.0 ±650 580 - 590 margin on sales 36.7% ±38% EBIT (Operating 465.3 ±560 income) 490 - 500 31.4% ±33% margin on sales Net
Slide 15: 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