Laboratorios Farmaceuticos Rovi, S.a. · BME:ROVI

Laboratorios Farmaceuticos Rovi — 9M 2014 Earnings Presentation

22 slides from Laboratorios Farmaceuticos Rovi's earnings presentation, November 2014

  1. Slide 1: Nine-month period ended 30 September 2014 Financial Results

    Rovi Nine-month period ended 30 September 2014 Financial Results November 2014

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Laboratorios Farmacéuticos Rovi, S.A. (“ROVI” or the “Company”), solely for its use during the attached presentation. The information and each of the opinions and statements contained in this document have not been verified by independent experts and, th

  3. Slide 3: Operating results

    Operating results

  4. Slide 4: 9M 2014 financial results - Highlights

    9M 2014 financial results - Highlights  Operating revenue increased by 8% to €173.3Mn, mainly driven by the strength of the prescription-based pharmaceutical business, where sales rose 9%, clearly outperforming the market, and by the toll manufacturing business which grew by 6%. Total revenue incre

  5. Slide 5: Growth driven by the specialty pharmaceutical business strength

    Growth driven by the specialty pharmaceutical business strength… Total operating revenue (€Mn) Operating revenue growth by category (€Mn) 180 173,3 180 160,9 +8% 0,2 +8% 160 0,3 48,2 160 140 45,6 +6% 120 100 140 173,3 80 +9% 160,9 60 115,0 124,9 120 40 20 100 0 9M 2013 9M 2014 9M 2013 9M 2014 Specia

  6. Slide 6: …with high profitability

    …with high profitability EBITDA (€Mn) and EBITDA margin (%) Net profit (€Mn) 16,7% 18% 30 20 15,8% 15% 25 18 +6% 12% 20 16 9% +14% 28,9 15 19,9 25,4 18,7 14 6% 10 12 3% 5 0% 0 10 9M 2013 9M 2014 9M 2013 9M 2014 EBITDA EBITDA margin  EBITDA increased by 14% to €28.9Mn in 9M 2014, reflecting a 0.9 pp

  7. Slide 7: Bemiparin, leading the growth

    Bemiparin, leading the growth Prescription-based pharma products sales (€Mn) Bemiparin sales (€Mn) 110 60 +8% 53,0 +9% 100 49,1 50 18,6 90 40 17,6 +6% 80 30 101,0 70 92,6 20 31,4 +9% 34,4 60 10 50 0 9M 2013 9M 2014 9M 2013 9M 2014 Spain International sales  Sales of prescription-based pharmaceutica

  8. Slide 8: Good performance of the product portfolio (1/2)

    Good performance of the product portfolio (1/2) Absorcol and Vytorin sales (€Mn) Thymanax sales (€Mn) 16 10 +19% 14 8 -7% 12 6 15,3 10 4 8,4 7,8 12,8 8 2 6 0 9M 2013 9M 2014 9M 2013 9M 2014 Medicebran and Medikinet sales (€Mn) 6  Sales of Absorcol and Vytorin, products launched in 5 January 2011, i

  9. Slide 9: Good performance of the product portfolio (2/2)

    Good performance of the product portfolio (2/2) Corlentor sales (€Mn) Exxiv sales (€Mn) 11 6 -2% 10 +19% 5 9 4 8 3 10,1 5,2 5,1 7 2 8,5 6 1 5 0 9M 2013 9M 2014 9M 2013 9M 2014 Contrast imaging agents (€Mn) 20  Sales of Corlentor maintained a very positive +5% behaviour, with a 19% increase in sales

  10. Slide 10: Value added toll manufacturing services

    Value added toll manufacturing services Toll manufacturing sales (€Mn)  Toll manufacturing sales increased by 6% to €48.2Mn in 9M 2014. 50 +6% 48,2 45,6  Very positive evolution of the injectables plant, whose 40 revenue increased by 17% to €19.7Mn in 9M 2014. In 28,5 line with the increase in sal

  11. Slide 11: Focus on Drug Release Platform & Glycomics

    Focus on Drug Release Platform & Glycomics Platform Product Potential indication Current situation Expected milestones Pre- I II III Clínical Risperidone, • Phase I results disclosed Schizophrenia • Phase II ongoing monthly • Phase III starts 2H 2015 Paliperidone, ISM Schizophrenia  Phase I starts

  12. Slide 12: Guidance 2014 and 2015

    Guidance 2014 and 2015 Operating revenue Operating revenue Operating revenue 2013 2014 2015 mid single digit – mid single digit – €217.6Mn high single digit high single digit Our main strategic pillars to lead growth Specialty pharma Toll manufacturing • Bemiparin • Spare capacity both in the • Rece

  13. Slide 13: Financial results

    Financial results

  14. Slide 14: Excellent revenue level with outstanding Bemiparin growth

    Excellent revenue level with outstanding Bemiparin growth Total operating revenue (€Mn) Bemiparin sales (€Mn) 60 +8% +8% 53,0 200 173,3 49,1 160,9 50 5,9 160 5,4 18,6 17,6 +6% +6% 48,2 40 45,6 120 +5% 18,2 30 17,3 80 20 +9% +9% 34,4 31,4 92,6 101,0 40 10 0 0 9M 2013 9M 2014 9M 2013 9M 2014 Prescript

  15. Slide 15: Gross margin impacted by the increase of customers being invoiced for materials

    Gross margin impacted by the increase of customers being invoiced for materials in the injectables plant Gross profit (€Mn) & Gross margin (%) 70% 62,3% 61,0% 110  Gross margin decreased by 1.4 pp in 9M 2014 vs 9M 2013 mainly due to: 60% 100  the increase in volumes manufactured for 50% clients be

  16. Slide 16: Cost control along with commitment to R&D

    Cost control along with commitment to R&D SG&A expenses (€Mn) R&D expenses (€Mn) 50% 80 41,7% 10 39,2% +14% 40% 60 8 30% +1% 6 40 20% 67,1 67,9 8,9 4 7,8 20 10% 2 0% 0 0 H1 2013 H1 2014 9M 2013 9M 2014 SG&A SG&A/revenue  SG&A expenses increased by 1% to €67.9Mn in 9M 2014 mainly due to an increase

  17. Slide 17: EBITDA & EBIT

    EBITDA & EBIT EBITDA (€Mn) and EBITDA margin (%) EBIT (€Mn) and EBIT margin (%) 16,7% 16% 24 18% 30 12,9% 15,8% 15% 25 12,7% 22 12% 20 12% 20 18 9% +14% 15 8% 28,9 +10% 25,4 22,4 16 20,5 6% 10 14 4% 3% 5 12 0% 0 0% 10 9M 2013 9M 2014 9M 2013 9M 2014 EBITDA EBITDA margin EBIT EBIT margin  EBITDA inc

  18. Slide 18: Net profit

    Net profit  Net profit increased by 6% to €19.9Mn in 9M 2014. Net profit (€Mn)  Effective tax rate of 5.2% in 9M 2014 vs 4.1% in 9M 2013. This favourable effective tax rate is due to: 20  deduction of existing R&D expenses; and 18  capitalisation of existing negative tax bases from Frosst +6% Ib

  19. Slide 19: Capital expenditure & Free Cash Flow

    Capital expenditure & Free Cash Flow Capex evolution (€Mn) Capex breakdown (%) 14 Maintenance capex and other; 20% 12 10 -5% 8 Granada Injectables; 6 12,8 12,2 facility; 18% 53% 4 2 Alcalá facility; 0 9% 9M 2013 9M 2014  €12.2Mn of capex invested in 9M 2014. FCF (€Mn)  €6.4Mn of investment capex r

  20. Slide 20: Financial debt

    Financial debt Debt breakdown by source (%) Debt maturities by year (€Mn) 15 12 9 15,9 6 €37.3 million 9,5 7,2 3 3,6 1,1 0 2014 2015 2016 2017 2018 & beyond  Debt with public administration represented 44% of total debt, with 0% interest rate.  New banking debt of €20Mn, of which €12Mn came from E

  21. Slide 21: News-flow 2014/2015

    News-flow 2014/2015 Specialty pharma  Additional new in-licensing products to be launched Toll manufacturing  New contracts to be announced  Results of ISM-Risperidone® Phase I to be released in Q4 2014 R&D  Results of ISM-Risperidone® Phase II to be released in Q3 2015  Start of ISM-Risperidon

  22. Slide 22: For further information, please contact:

    For further information, please contact: Juan López-Belmonte Chief Executive Officer +34 91 3756235 jlopez-belmonte@rovi.es www.rovi.es Javier López-Belmonte Chief Financial Officer +34 91 3756266 javierlbelmonte@rovi.es www.rovi.es Marta Campos Martínez Investor Relations +34 91 2444422 mcampos@rov

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