Slide 1: 2018 Results
PHARMA SECTOR 2018 Results ANNIVERSARY
Slide 2: Disclosure
ANNIVERSARY DISCLOSURE This presentation contains no confidential material and may include publicly risk management practices. Readers are cautioned not to place undue available market information which has not been independently verified by reliance on these forward looking statements. Reig Jofre d
Slide 3: Contents
ANNIVERSARY CONTENTS 01. REIG JOFRE TODAY 03 05. BALANCE SHEET 18 02. EVOLUTION OF THE BUSINESS AREAS 06 06. NOTES FOR THE FUTURE 27 PHARMACEUTICAL TECHNOLOGIES AREA 07 ESTRATEGIA EN TECNOLOGÍAS FARMACÉUTICAS 30 SPECIALTY PRODUCTS AREA 08 ESTRATEGIA EN PRODUCTOS DE ESPECIALIDAD 35 CONSUMER HEALTHCAR
Slide 4: Reig Jofre Today
01 REIG JOFRE TODAY PHARMA SECTOR
Slide 5: Reig Jofre today: main figures
PHARMACEUTICAL COMPANY FOCUSED ON THE RESEARCH, DEVELOPMENT, MANUFACTURE AND MARKETING OF PHARMACEUTICAL PRODUCTS AND NUTRITIONAL SUPPLEMENTS 3 GENERATIONS AT THE HEAD OF THE BUSINESS 1929 1970 2006 Ramon Reig Jofre Joan M. Biosca Ignasi Biosca Founder Founder’s son-in-law Founder’s grandson and cur
Slide 6: Sales Evolution by Business Area 2018 180.5 M€
Reig Jofre today SALES EVOLUTION BY ANNIVERSARY BUSINESS AREA 2018 180.5 M€ +7% PHARMACEUTICAL SPECIALTY CONSUMER TECHNOLOGIES PRODUCTS HEALTHCARE Antibiotics Dermatology Nutritional Supplements Injectables / lyophilized Gynecology OTC 54% 97.4 M€ 20% 36.8 M€ 26% 46.3 M€ +6% -3% +22% 22% CDMO CDMO s
Slide 7: Evolution of the Business Areas
02 EVOLUTION OF THE BUSINESS AREAS PHARMA SECTOR
Slide 8: Pharmaceutical Technologies Area
Evolution of the business areas ANNIVERSARY PHARMACEUTICAL TECHNOLOGIES AREA PERFORMANCE OF THE AREA PHARMACEUTICAL TECHNOLOGIES Good evolution of the pharmaceutical technologies area (54% of total sales), increased by 6% and contributed € 97.4 million in 2018. Antibiotics Second year of strong of t
Slide 9: Specialty Products Area
Evolution of the business areas ANNIVERSARY SPECIALTY PRODUCTS AREA • The specialty products area decreases by 3% due to the impact of SPECIALTY weighted reference prices in Spain, despite the increase in the units sold of these references PRODUCTS • During 2018 the Swedish Krona depreciated more th
Slide 10: Consumer Healthcare Area
CONSUMER HEALTHCARE FOCUSSING ON FORTÉ PHARMA AREA • Excellent year, of consecutive growth with new developments, accompanied by investment in marketing and advertising (reinvesting margins) • Reorganization of business management after integration CONSUMER - Rethinking ranges in both product strate
Slide 11: International Progress
03 INTERNATIONAL PROGRESS PHARMA SECTOR
Slide 12: International Presence
INTERNATIONAL PRESENCE Sales 2018 41% Spain 48%Rest of 11% Rest of Europe the world SWEDEN BELGIUM UNITED KINGDOM FRANCE PORTUGAL 70 world countries SPAIN SINGAPORE 7 96M€ Direct 9.5% sales France countries Benelux Portugal 3 % 130 United Kingdom GEOGRAPHIC Singapore commercial partners DISTRIBUTION
Slide 13: Sales by Geographical Area
International progress ANNIVERSARY SALES BY GEOGRAPHICAL AREA SALES DISTRIBUTION BY GEOGRAPHICAL AREA IN 2018 181 M€ 11 41 • 3 new markets in 2018: Indonesia, Panama and South Korea % REST OF THE WORLD % SPAIN • The top 10 markets outside Spain in 2017 were: 7% Asia - France (17%) - Sweden (7%) 2% A
Slide 14: Profit and Loss Account
04 PROFIT AND LOSS ACCOUNT PHARMA SECTOR
Slide 15: P&L Sales 180.5 M€
Profit and loss account ANNIVERSARY P&L PROFIT AND LOSS Turnover Procurements 2017 167.983 -63.971 2018 180.468 -70.267 var 18/17 7% Changes in inventories -108 2.648 6% SALES +7% Work carried out for fixed assets 3.743 4.824 29% 180.5 M€ Other operating income 2.437 839 -66% Personnel expenses -49.
Slide 16: Revenues
Profit and loss account ANNIVERSARY Revenues PROFIT & LOSS ACCOUNT 2017 2018 var 18/17 Turnover 167.983 180.468 7% Procurements -63.971 -70.267 Changes in inventories -108 2.648 6% TURNOVER Growth in Consumer Healthcare + 22% Work carried out for fixed assets 3.743 4.824 29% boosts Total Sales Other
Slide 17: OPEX
Profit and loss account ANNIVERSARY OPEX PROFIT & LOSS ACCOUNT Turnover Procurements 2017 167.983 -63.971 2018 180.468 -70.267 var 18/17 7% PERSONNEL EXPENSES Changes in inventories -108 2.648 6% Growth of +6%, main impact comes from the strengthening of Salesforce Work carried out for fixed assets
Slide 18: Other Results
Profit and loss account ANNIVERSARY Other PROFIT & LOSS ACCOUNT 2017 2018 var 18/17 Turnover 167.983 180.468 7% Results Procurements Changes in inventories Work carried out for fixed assets -63.971 -108 3.743 -70.267 2.648 4.824 29% 6% Other operating income 2.437 839 -66% RESULTS FROM TANGIBLE ASSE
Slide 19: Balance Sheet
05 BALANCE SHEET PHARMA SECTOR
Slide 20: Assets
Balance sheet ANNIVERSARY Assets TOTAL CAPEX ASSETS +21.7 M€ 2017 2018 var 18/17 Goodwill 27.745 27.598 -146 Other Intangible assets 32.521 39.121 6.600 Property, plant and equipment 46.749 54.728 7.980 Non-current investments 605 1.167 561 INVENTORIES Non-current financial investments 716 732 16 +7
Slide 21: Investments
Balance sheet ANNIVERSARY Investments INVESTMENTS 2018 +21.7M€ ASSETS 2017 2018 var 18/17 1,0 M€ Other Goodwill Other Intangible assets 27.745 32.521 27.598 39.121 -146 6.600 4,8 M€R+D Property, plant and equipment Non-current investments 46.749 605 54.728 1.167 7.980 561 Non-current financial inves
Slide 22: Current Assets
Balance sheet ANNIVERSARY Current Assets CURRENT ASSETS ASSETS 2017 2018 var 18/17 Increase of 4M€ without considering the reduction of Treasury, basically for Goodwill 27.745 27.598 -146 the increase of raw materials Other Intangible assets 32.521 39.121 6.600 Property, plant and equipment 46.749 5
Slide 23: Working Capital
Balance sheet ANNIVERSARY Working Capital WORKING CAPITAL Working Capital M€ 40,6 M€, improvement of 1,5 M€ Represents 82 days of sales vs 92 days in 2017 2017 42.1 -1.5 M€ INVENTORIES 2018 40.6 Increase in stocks due to the increase of manufacturing levels previous to entry into force European Dire
Slide 24: Liabilities
Balance sheet ANNIVERSARY Liabilities EQUITY AND LIABILITIES Total Equity 2017 141.559 2018 149.740 8.180 Capital grants 145 105 -40 CAPITAL INCREASE Provisions 682 803 121 0.5 M€ Financial liabilities with credit institutions Financial lease leabilities Other financial liabilities Deferred tax liab
Slide 25: Scrip Dividend 2018
Balance sheet ANNIVERSARY Scrip Dividend 2018 CAPITAL INCREASE EQUITY 2017 2018 Issuing and subscription of 896.889 new shares against reserves, 1,5% of total capital Share Capital 32.077 32.525 448 Reserves 102.482 110.183 7.701 Treasury stock -703 -900 -197 Other equity instruments 19 34 14 CASH D
Slide 26: Financial Debt
Balance sheet ANNIVERSARY Financial Debt INCREASE OF FINANCIAL DEBT EQUITY AND LIABILITIES 2017 2018 +2.7 M€ Total Equity Capital grants 141.559 145 149.740 105 8.180 -40 Provisions 682 803 121 TOTAL FINANCIAL DEBT Financial liabilities with credit institutions 9.479 7.020 -2.459 32.7M€ Long-term Fi
Slide 27: Net Debt/EBITDA
Balance sheet ANNIVERSARY Net Debt/ EBIDTA Financial Debt M€ 32.7 30.0 24.5 2017 TOTAL NET DEBT 18.3 24.5 M€ Financial Debt Cash Net Financial Debt 2018 -8.3 DEBT/EBITDA -11.7 1.5 X NET FINANCIAL DEBT Financial Debt 2017 29.986 2018 32.732 var 2.746 Treasury -11.689 -8.269 3.419 AVERAGE TIME OF DEBT
Slide 28: Notes for the Future
06 NOTES FOR THE FUTURE PHARMA SECTOR
Slide 29: Strategic Focus by Business Area
Balance sheet ANNIVERSARY STRATEGIC FOCUS BY BUSINESS AREA PHARMACEUTICAL SPECIALTY CONSUMER TECHNOLOGIES PRODUCTS HEALTHCARE Historical commitment to development. R&D Investment of 5% of the turnover. Developments in medicines or medicines, Innovators or Generics Chemical or Biological Industrial c
Slide 30: Strategy in the Management of the Business Cycle
Balance sheet ANNIVERSARY STRATEGY IN THE MANAGEMENT OF THE BUSINESS CYCLE Reig Jofre has the ambition to develop innovative 1 specialty products that add value to the patient’s health, to the doctor or to the health systems and that could be marketed worldwide. 2 CONSUMER HEALTHCARE PHARMACEUTICAL
Slide 31: Strategy in Pharmaceutical Technologies
STRATEGY IN PHARMACEUTICAL TECHNOLOGIES Antibiotics and Injectables / freeze-dried 1 DEMAND CREATION (products, markets, 2 CONSTRUCTION OF PRODUCTIVE 3 SALES AND PROFITABILITY distributors) CAPACITY Systematic focus during the last years Industrial investments Profitability phase following RJF busin
Slide 32: Investment Plan in RJF Barcelona 2018-2020
Balance sheet INVESTMENT PLAN ANNIVERSARY IN RJF BARCELONA 2018-2020 EXTENSION PLANT OF STERILE INJECTABLES · Investment: € 30M • Financing: bank debt (80% max.), rest own resources • Operational plant in S2-2020 Increasing aseptic production capacities Quality · +50 M vials at full capacity (vs. 15
Slide 33: Investment Plan in RJF Toledo 2016-2018
INVESTMENT PLAN IN RJF TOLEDO 2016-2018 INVESTMENT · € 10M for new sterile injectable antibiotic line and expansion space for a future second line • Operational in 2019. · Current plant close to 100% capacity (produces 15% of the antibiotics units consumed in Spain and 25% of the penicillin derivati
Slide 34: R&D Investments
Balance sheet ANNIVERSARY R&D INVESTMENTS PHARMACEUTICAL TECHNOLOGIES 56 % Injectables / Lyophilized Antibiotics R&D Investment SPECIALTY 5 % sales CONSUMER PRODUCTS HEALTHCARE Dermatology 30 % 14 % Forté Pharma Skin, Hair, Nails ENT Gynecology Topical disinfection Women's Health 33
Slide 35: Pharmaceutical Technologies Pipeline
PHARMACEUTICAL TECHNOLOGIES PIPELINE PRODUCT DESCRIPTION Syna Therapeutics INNOVATIVE Biosimilar (Joint Venture: RJF & LeanBio) + Innovation + Risk Acinetoclinic Vaccine First vaccine against resistance to injectable lyophilized A. Baumannii + Collaborations + Potential P0512 Mucoadhesive nanoformul
Slide 36: Strategy in Specialty Products
Balance sheet STRATEGY IN SPECIALTY PRODUCTS ANNIVERSARY Dermatology and Gynecology 1 PORTFOLIO GENERATION 2 INVESTMENT IN R&D Development with scientific 3 SALES AND PROFITABILITY Innovation evidence Value proposal Balanced portfolio: Areas of expertise: Medical-marketing proposal • Risk / Investme
Slide 37: Specialty Products Key R&D Events in 2018
Balance sheet ANNIVERSARY SPECIALTY PRODUCTS KEY R&D EVENTS IN 2018 Dermatology / Gynecology MILESTONES IN CLINICAL TRIALS Clinical trials started in 2018: · P0285: Nail regenerator • P0283: Nutritional Supplement for men to improve the fertility ratio and prevent repeated abortions Finalized Recrui
Slide 38: Specialty Products Pipeline
SPECIALTY PRODUCTS PIPELINE PRODUCT AND DESCRIPTION MEDICINES 3 projects + Innovation Skin, hair and nail conditions + Risk + Collaborations + Potential return 3 in collaboration MEDICAL DEVICE, NUTRITIONAL 8 projects SUPPLEMENTS, COSMETICS + Innovation + Risk 3 women's health and reproduction + Col
Slide 39: Strategy in Consumer Healthcare
Balance sheet ANNIVERSARY STRATEGY IN CONSUMER HEALTHCARE Nutritional supplements / OTC SITUATION WHAT RJF SHOULD OFFER IN THE CONSUMER HEALTH MARKET • Health market vs. market of the disease • Trusted brands for the consumer · Ability to identify trends and launch • Consumers are well informed and
Slide 40: Corporate Development
Balance sheet ANNIVERSARY CORPORATE DEVELOPMENT · Active policy to identify non-organic · Search in areas of specialty products and Consumer growth opportunities Healthcare • Incorporation of businesses with - Consolidation of presence in existing markets (Spain, strategic fit and adequate cash Fran
Slide 41: Shareholders Base
07 SHAREHOLDERS BASE PHARMA SECTOR
Slide 42: Shareholders Base
Shareholders base ANNIVERSARY SHAREHOLDERS REIG JOFRE INVESTMENTS, S.L. BASE 72% Investment company of the Reig family at 31/12/2018 11.8% NATRA, S.A.* 15.7% FREE-FLOAT 0.5% TREASURY STOCK *Food company, quoted on the main market of the Spanish stock Exchange. Former controlling shareholder in Natra
Slide 43: Links to Additional Information
ANNIVERSARY LINKS TO ADDITIONAL INFORMATION Last news: www.reigjofre.com/en/news Webcast of results: www.reigjofre.com/en/investors/webcasts Subscription Center: www.reigjofre.com/en/subscription-center 42
Slide 44: Contact details
ANNIVERSARY Av. de les Flors 08970 Sant Joan Despi Barcelona, Spain T. +34 93 480 67 10 www.reigjofre.com Relationship investors investors@reigjofre.com