Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — FY2022 Earnings Presentation
29 slides from Chemical Works Of Gedeon Richter's earnings presentation, Apr 20, 2023
Slide 1: Richter Gedeon: Earnings Report M12
Richter Gedeon: Earnings Report M12 Chief Executive Officer presentation April 20th, 2023
Slide 2: Financial Highlights
Financial Highlights 155.6 HUFbn 835 HUF 113.3 HUFbn Net Profit1 EPS Free Cash-flow +11.4% +11.2% n/a 153.6 HUFbn 205.9 HUFbn 14.8% EBIT2 Clean EBIT3 Return on Equity 13.0% 44.5% -0.5%p 802.8 HUFbn 57.4% 656.3 HUFbn Consolidated sales Gross margin Pharma sales +27.3% +2.0%p +30.0% 1Profit for the pe
Slide 3: Best-ever financial performance in 2022
• Best-ever financial performance in 2022 with very healthy growth in underlying revenues and gross profits • While one-off factors hit the bottom line at Q4, our annual EBIT still came in at a record high • Exchange rate tailwind already turned into a headwind in Q4 and cost inflation gradually fed
Slide 4: Profits from core operations are steadily increasing despite negative Q4 EBIT
Profits from core operations are steadily increasing despite negative Q4 EBIT driven by one-off expense items Guidance • 2022 guidance is met both for Sales (+10.7 % vs. 2021 excluding FX effects) adjusted EBIT (+21% vs. 2021 excluding FX and one-off effects). EBIT • For the last quarter we recorded
Slide 5: 2022 guidance met for both adjusted EBIT and Revenues
2022 guidance met for both adjusted EBIT and Revenues EBIT and its adjustments Revenue +21.0% +27.3% 164.3 802.8 5.3 +13.0% 153.6 3 104.6 +16.6% 22.0 135.8 2 67.6 630.6 +10.7% 44.4 27.9 1 2021 2022 FX effect Windfall Impairments Vraylar Adjusted 2021 Core FX effect 2022 tax 2022 business 1 Windfall
Slide 6: Improved gross profit offset by inflation affected operating expenses and one-offs
Improved gross profit offset by inflation affected operating expenses and one-off items but net profit still at record level 802.8 Other 146.4 -133.4 -208.9 460.5 -8.9 -342.3 -138.6 Pharma 656.3 -4.3 -147.5 -75.1 205.9 -30.5 -34.9 -7.7 10.6 Revenues Cost of Sales Gross Profit S&M G&A R&D Claw-back M
Slide 7: EBIT hit record highs with a y-o-y increase of 13%
EBIT hit record highs with a y-o-y increase of 13%, clean EBIT increased by 44% while the underlying ex-FX growth was 13% EBIT (year-on-year) Clean EBIT (year-on-year) +44.5% 205.9 +13.0% 161.2 153.6 142.5 +13.1% 135.8 109.1 -19.7% 2021 2022 2022 2021 2022 2022 w/o FX effect w/o FX effect All data i
Slide 8: 2022 consolidated sales was ~27% higher than 2021
2022 consolidated sales was ~27% higher than 2021; driven by specialty products and generally positive FX environment Other revenue Pharma segment Pharma revenue FX impact by currencies 2021 M12 +27.3% RUB 35.8 104.6 802.8 USD 25.2 15.7 EUR 14.6 +16.6% Other 10.2 88.9 146.4 CNY 3.1 67.6 5.2 FX impac
Slide 9: Operating expense growth higher than gross profit increase without FX effect
The growth rate of our operating expenses was higher than the increase of gross profits without FX effect Gross profit Sales & Marketing Research & Development +28.7% +23.1% 147.5 +13.4% 75.1 70.5 +15.6% 129.9 61.0 114.6 +31.8% 460.5 391.4 +12.0% 2021 2022 2022 w/o 2021 2022 2022 w/o 349.3 FX effect
Slide 10: RUB, USD and HUF rates were unprecedently volatile during Q4 2022
RUB, USD and HUF rates were unprecedently volatile during the last quarter of 2022 USDRUB USDHUF Key messages 500 160 • Volatile FX environment generated 44 HUFbn 450 140 unrealized financial loss in the last quarter, compensating similar gains recorded up to 400 M9 reporting 120 350 • Approximately
Slide 11: Volatile FX environment generated 44 HUFbn unrealised financial loss in Q4 2022
Volatile FX environment generated 44 HUFbn unrealised financial loss in Q4 2022, compensating similar gains recorded in Q1-3 2022 Consolidated 1 FX (loss)/gain on trade 2022 Q1 2022 H1 2022 M9 2022 Change in Q4 % receivables & payables Open balances owned by Unrealised financial profit (loss) 4.2
Slide 12: Profitability is driven by Pharma segment, consisting of four strategic focus areas
Profitability is driven by Pharma segment, consisting of four strategic focus areas Pharma 2022FY WHC CNS BIO GM Pharma Other Eliminations Group total other Revenues 229.2 145.9 41.2 225.9 14.1 656.3 164.3 -17.9 802.8 Cost of Sales -66.5 -0.7 -27.8 -101.9 -11.8 -208.9 -151.3 17.9 -342.3 Gross Profit
Slide 13: Each focus area has a clear strategic vision
Each focus area has a clear strategic vision and consists of various type of products Pharma | Pharmaceuticals segment Strategic pillars’ short and long name Official definition Key strategic goal Therapeutic area We look after women’s health globally by setting trends By addressing unmet needs and
Slide 14: CNS remain US focused, WHC and BIO with massive WEU footprint
CNS remain US focused, WHC and BIO with massive WEU footprint, GM safeguards our traditional market presence Neuropsychiatry | Revenue Women’s Healthcare | Revenue 80.0 138.2 2021 73.0 2022 60.9 58.8 2022 w/o FX 122.1 42.9 36.8 31.9 29.7 101.6 25.1 20.4 15.0 18.3 17.7 19.4 16.3 2.4 3.4 12.2 11.3 3.2
Slide 15: Women's Healthcare: Healthy increase in profits with higher Q4 marketing activity
Women’s Healthcare| Healthy increase in profits with higher Q4 marketing activity supporting new product launces Clean EBIT Gross profit -6.8% +37.1% +44.5% 16.5 +40.6% 13.4 9.3 41.8 45.4 41.0 162.7 7.2 45.9 34.5 118.6 6.7 31.8 29.1 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2021 2022 2021 Q4 2022 Q1 2
Slide 16: WHC Highlighted brands: EVRA top 5 products, Bemfola setback
WHC | Highlighted brands | EVRA makes it to top 5 products within 2 years of acquisition, Bemfola sees temporary setback Bemfola® Key messages • Strong competition and price pressure on +10.2% +28.7% Bemfola®. Double digit growth in WEU 21.6 19.9 +1.5% offset by changes in Australian market and 19.6
Slide 17: WHC Highlighted brands: New products hit the market
WHC | Highlighted brands | New products hit the market on a high Ryeqo® Key messages +580,1% • Solid growth in Germany, Nordics and CEE +227.8% 2,0 +513,2% markets 1,8 0.8 • Market access milestones achieved on key 0.5 0.5 EU markets (IT and ES) 0.2 0.2 0,3 • Intensive regulatory work on Endometrios
Slide 18: Neuropsychiatry: main clean EBIT contributor showed steady growth
Neuropsychiatry | Our main clean EBIT contributor showed steady growth while progressing with R&D projects Clean EBIT Gross profit +52.0% +37.2% +115.2% +31.9% 33.8 36.4 36.0 129.9 42.8 41.8 145.2 23.6 85.4 31.7 28.9 31.6 105.8 16.7 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2021 2022 2021 Q4 2022 Q1 2
Slide 19: CNS Highlighted brands: Over 30% growth in Vraylar
CNS | Highlighted brands | Over 30% growth in Vraylar compared to 2021 Q4; last quarter setback is a result of FX changes only Vraylar® Key messages +30.7% • Significant year-on-year increase recorded +36.0% in royalties linked to sales of Vraylar® in 41.2 39.6 138.2 122.1 +20.2% the USA. 30.3 29.9
Slide 20: Biotechnology: Double digit gross profit increase and significant R&D investment
Biotechnology | Double digit gross profit increase and significant R&D investment into the future Clean EBIT Gross profit -155.7% +77.8% +13.1% +16.6% 2.3 5.8 6.7 11.8 13.4 -1.3 4.6 -4.5 -4.8 3.4 -11.4 -9.6 -20.2 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 -1.4 2021 2022 2021 2022 2021 Q4 2022 Q1 2022 Q
Slide 21: BIO Highlighted brand: Terrosa global revenue shows dynamic increase
BIO | Highlighted brand | Terrosa global revenue shows dynamic increase Terrosa® Key messages • Sales proceeds from WEU region +58.6% contributed substantially to the higher +53.6% turnover of Terrosa® reported. 20.9 19.0 +44.2% 5.7 5.7 6.0 13.2 • Terrosa® became a massive product, with 3.9 3.5 quar
Slide 22: General Medicine: Strong financial results in 2022 despite Russia-Ukraine conflict
General Medicine | Strong financial results in 2022 despite the Russia-Ukraine conflict Clean EBIT Gross profit +36.5% +20.2% +23.6% -1.8% 17.1 35.1 13.2 29.7 28.7 30.5 11.0 50.3 25.4 9.2 9.0 36.9 124.0 100.3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2021 2022 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2
Slide 23: Pharmaceuticals: We are dedicated to continuously invest into the future
Pharmaceuticals: We are dedicated to continously invest into the future to serve our patients globally WHC CNS BIO GM Our focus is set on certain General Medicines builds a We develop innovative products Original R&D aims to develop therapeutic areas, notably portfolio offering for our patients and
Slide 24: Pipeline overview
Pipeline overview Clinical phase Preclinical phase Phase I Phase II Phase III Technology Development Clinical phase Regulatory & Launch Neuropsychiatry Women’s Healthcare Biotechnology General Medicine 24
Slide 25: Strong Free cash-flows in 2022 after prior year's major cash investment to EVRA
Strong Free cash-flows in 2022 after prior year’s major cash investment to EVRA. CAPEX of property CAPEX of intangible assets Free Cash-flow | HUFbn +22.7% -50.0% +116.7 28.0 143.3 +9.1 22.8 42.4 113.3 19.4 46.1 35.3 14.7 21.4 71.6 27.7 19.1 9.5 18.6 18.1 12.4 97.2 59.2 7.9 7.3 3.7 6.6 2.2 2.2 1.4 1
Slide 26: Shareholder structure and Guidance
Shareholder structure at 12.31.2022 in percentage Guidance Foreign private persons and others 0.35% HUFbn 2022 Guidance 1 Domestic private persons +10% 3.95% Revenue 803 +10% Gross Profit 460 Other domestic legal entities 4.22% +10% Clean EBIT2 206 Foundation for National Health and 1 Increase witho
Slide 27: Introduction of István Hamecz, Chief Financial Officer
Introduction of István Hamecz Chief Financial Officer Graduated at Corvinus University Budapest in 1991. He started his career in the Institute of Economic Policy and Planning of the Ministry of Finance. From 1992 to 1994 researcher at the Institute of Economics of the Hungarian Academy of Sciences
Slide 28: Contacts and Financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. | April 25, 2023 Sector: Pharmaceutical Annual General Meeting Company address: 1103 Budapest, Gyömrői út 19-21., Hungary | April 26, 2023 Publication of AGM resolutions Telephone: +36 1 431 5764 | April 26, 2023 Fax: +36 1 261 2158 Publi
Slide 29: Disclaimer
Disclaimer This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capita