Slide 1: 2022 Half Year Results
2022 Half Year Results September 1, 2022 CULOAP! Active Solutions for Health
Slide 2: Forward looking statements
Forward looking statements Certain information contained in this document 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 strat
Slide 3: Today's attendees
Today’s attendees Karl Rotthier Antoine Delcour Cécile Maupas Guillaume Rosso Chief Executive Officer Chief Financial Officer Chief CDMO Officer Investor Relations 01/09/2022 P. 3
Slide 4: Agenda
1 - Business highlights 2 - Environment, Social and Governance update 3 - Financial performance 4 - 2022 outlook and guidance Q&A session 01/09/2022 P. 4
Slide 5: Business highlights
Business highlights Karl Rotthier - CEO 01/09/2022 P. 5
Slide 6: Key highlights
Key highlights Listing on May 6, 2022, and inclusion in SBF 120 and CAC Mid 60 Solid double-digit sales performance in H1-2022, reaching €483.8m, despite challenging macroeconomic and geopolitical environment Profitability improved with a Core EBITDA1 margin at 14.5% (+ 128 bps versus H1-2021) Stron
Slide 7: Beginning of our journey as an independent company
Beginning of our journey as an independent company • First day of trading on EURONEXT Paris on May 6, 2022 • Joined SBF120 and CAC Mid 60 on June 17, 2022 01/09/2022 P. 7
Slide 8: Solid H1 performance with net sales at €483.8m, up +10.1%
Solid H1 performance with net sales at €483.8m, up +10.1% and core EBITDA margin at 14.5% (+128 bps) Net sales1 growing +10.1% Core EBITDA and core EBITDA margin1 483.8 483.8 439.4 439.4 122.2 +22.2% 100.0 236.4 +12.1% 70.3 210.9 58.5 +14.5% +13.3% 339.4 361.6 +6.5% 228.5 247.4 +8.3% H1-2021 H1-2022
Slide 9: Core business activities growing as the commercial strategy is being executed
Core business activities growing as the commercial strategy is being executed API Solutions CDMO 74.7% 25.3% Strong momentum in CDMO business Sanofi late-stage pipeline and commercial products Other increased contribution clients €166.6m Existing commercial contracts with other clients 48.9% +15
Slide 10: Portfolio reshaping in progress with strong contribution from large molecules
Portfolio reshaping in progress with strong contribution from large molecules Per type of molecule H1-2022 % Key drivers Large molecules1 €47.9m +431.1% Oligonucleotides driving steep increase for a US biotech and for Sanofi CDMO products Highly potent Good business dynamic for prostaglandins more t
Slide 11: Several levers activated in H1-2022 to navigate current environment
Several levers activated in H1-2022 at topline and operational levels to navigate current environment Pass through and/or other clauses available in Contracts ~30%1 a majority of legacy contracts Other ~75% clients monosourced1 Purchase Price enhancement ~70%1 ~ 6-12 months time lag orders Pass thro
Slide 12: Out of 64 CDMO projects in pipeline, about 1/3 added in H1-2022
Out of 64 CDMO projects in pipeline, about 1/3 added in H1-2022 Acceleration in large molecules, notably in oligonucleotides # RFPs received in H1-2022 almost Large equaling full year 2021 molecules 8 3 1 2 14 HP-APIs 2 2 2 6 CDMO projects 64 (incl. commercial phase)1 2 Biochemistry 2 5 7 Projects a
Slide 13: Environment, Social & Governance update
Environment, Social & Governance update Karl Rotthier - CEO 01/09/2022 P. 13
Slide 14: ESG axis of commitments
ESG 4 axis of commitments Offer safe products and a Accelerate innovation for Create a safe & Uphold best in class resilient & responsible environmental multicultural workplace corporate governance supply chain sustainability We provide high quality products We work continuously with our We propose
Slide 15: Setting the foundations to build a robust ESG trajectory
Setting the foundations to build a robust ESG trajectory Key milestones achieved since January 2022 EUROAPI ESG journey ENVIRONMENT SOCIAL GOVERNANCE Secure 2030 CO2 emission reduction Corporate culture and values Appointments of Rodolfo Savitzky effective commitment with Elbeuf biomass Sept 1, 2022
Slide 16: Employees shareholding plan
Employees shareholding plan : align employees’ interests with EUROAPI performance 7 > 3 300 eligible eligible countries 1 employees We believe that involving our employees in our Participation rate : 67.60% long-term development is critical. As such, this plan reaffirms the goal that motivates us al
Slide 17: Biomass boiler: milestone investment to meet -30% CO2 emission ambition by 2030
Biomass boiler: milestone investment to meet -30% CO2 emission ambition by 2030 • Construction of a biomass boiler in Elbeuf with a capacity of 140,000 tons of steam generation per year (use of local wood waste vs gas currently) • Significant decarbonization project with an optimized conception to m
Slide 18: Financial performance
Financial performance Antoine Delcour - CFO 01/09/2022 P. 18
Slide 19: Readability and comparability of the different sets of financials
Readability and comparability of the different sets of financials 2021 2022 Carve-out process October 1, 2021 Sales Flows with Sanofi Flows with Sanofi (sales / purchases): Invoiced sales & costs Audited Gross (sales / purchases): At transfer pricing policy margin At deal terms consolidated financia
Slide 20: Strong improvement of key financial metrics
Strong improvement of key financial metrics H1-2022 H1-2021 Change • Net sales growing double digit benefiting from API Solutions and CDMO commercial momentum Net sales 483.8 439.4 +10.1% Gross profit 97.7 81.5 +19.9% • Margin expansion sustained by a clear commitment to profitable growth against co
Slide 21: Core EBITDA margin improving 128 bps while investing in R&D
Core EBITDA margin improving 128 bps while investing in R&D • Price adjustments and operational Core EBITDA H1-2021 13.3% performance contributing more than inflation Efficiencies 0.9% • Costs structure better absorbed by additional volumes Volumes 0.4% • Higher contribution from more Business mix 0
Slide 22: Core Free Cash Flow generation will start to normalize as from 2023 onwards
Core Free Cash Flow1 generation will start to normalize as from 2023 onwards; 2022 still hampered by one-offs € in million One-off 2021 operating payables regularization related to the carve-out 70.3 Usual intra-year inventory seasonality -29.6 In line with growth capex strategy -25.5 -57.2% -51.4 -
Slide 23: Strategic roadmap in progress with several core projects moving forward
Strategic roadmap in progress with several core projects moving forward INVESTMENTS EXECUTION Acquisition of fixed assets Major projects in progress during H1-2022 € 51.4m in H1-22 Biomass boiler in Elbeuf Hormones building in Vertolaye 2022 capex guidance1 updated Fexofenadine capacity expansion in
Slide 24: 2022 outlook and guidance
2022 outlook and guidance Karl Rotthier - CEO 01/09/2022 P. 24
Slide 25: H2-2022 business outlook assumptions
H2-2022 business outlook assumptions • Price adjustments started in H1-22 and will materialize further in H2-22 Net sales • Stronger CDMO sales to Other Clients as CDMO contracts signed in 2021 and early 2022 are in a ramp-up phase • Softer CDMO sales to Sanofi in H2-22 • Complex macroeconomic and g
Slide 26: Guidance confirmed for 2022 and updated for capex
Guidance confirmed for 2022 and updated for capex Net sales at ~ €1bn CDMO sales Sanofi sales 25 – 30% 1 reduced dependency 1 Core EBITDA ≥ 14% 1 Capex ~ 14% 1 2 (versus ~12% previously) Note: 1 As a percentage of net sales 2 Defined as acquisitions of property, plant and equipment and intangible as
Slide 27: Q&A session
Q&A session 01/09/2022 P. 27
Slide 28: Financial calendar
Financial calendar 8 – 9 September 2022 Berenberg Pan-European Discovery Conference 27 September 2022 JP Morgan CEO Calls Series 16 November 2022 BNP Paribas Exane MidCap CEO Conference 8 March 2023 2022 Full year results 01/09/2022 P. 28
Slide 29: euroapi.com
euroapi.com Photo credit Euroapi - Getty Images – J. Chiscano