Krka, D. D., Novo Mesto · LJSE:KRKG
Krka, D. D., Novo Mesto — 9M 2024 Earnings Presentation
24 slides from Krka, D. D., Novo Mesto's earnings presentation, November 2024
Slide 1: Business Results 1-9 2024
Krka Group Business Performance Webcast Business Results 1-9 2024 David Bratož, Member of The Management Board Brane Kastelec, Finance Director November 2024 www.krka.biz
Slide 2: Celebrating 70 Years Anniversary
Celebrating 70 Years Anniversary ~ MILLION www.krka.biz
Slide 3: Well-Diversified Activities
Well-Diversified Activities Providing access to high quality affordable medicines Krka‘s presence on 70+ markets in 6 sales regions 49 subsidiaries outside Slovenia: 45% of all Krka Group workforce Over 100 million people use Krka‘s medicines worldwide Sales regions 17.5 bn FDF sold annually in vari
Slide 4: Krka's Global Position
Krka‘s Global Position Generics / Biosimilars / APIs / OTC world sales in million USD in 2023 10,000 9,000 8,000 7,000 SAME ACTIVE INGREDIENTS 6,000 SAME QUALITY, SAFETY AND EFFICACY 5,000 INNOVAT IVE GENERIC MORE ADVANCED 4,000 MEDICINES MORE AFFORDABLE 3,000 16th 2,000 1,000 0 Servier Generics Per
Slide 5: Krka Group Business Performance
Krka Group Business Performance 1-9 2024 highlights SALES 5Y CAGR: 5.7% ✓ Record 1-9 Revenue accounted to €1,434.7m; +7% yoy; volume: +2%. In ✓ Strong EBITDA of €401.7m; sustaining margin of 28.0% well above strategic guidance. EUR million 1,157 1,173 1,242 1,341 1,435 ✓ Record 1-9 EBIT of €332.6m,
Slide 6: Krka Group Sales by Regions
Krka Group Sales by Regions Continuation of strong sales dynamics Largest market: Russian Federation (+9% yoy) 282 1-9 2024 sales: EUR 1,427.5 million of goods 240 240 251 260 In and services (+7% yoy; EUR +92.6 m) EUR million 1-9 20 1-9 21 1-9 22 1-9 23 1-9 24 2nd market Poland (+17% yoy) Overseas
Slide 7: Sales by Country
Sales by Country Top 30 countries by sales represent around 90% of group sales Region East Europe Sales activities in 70+ 517 548 623 594 644 markets Scandinavian countries €282m 2020 2021 2022 2023 TTM 2024 €51m (+12%) (+9%) Region Central Europe 341 352 364 397 421 €26m 2020 2021 2022 2023 TTM 202
Slide 8: Broad Product Portfolio
Broad Product Portfolio Sales by products and service groups 1-9 2024 Health-resort & tourist services +2% Majority of sales for Animal health products EUR 37.8 m; companion animals EUR 86.8 m; (EUR +4.0 m) +5% (EUR +0.8 m) Prescription pharmaceuticals (Rx) +8% EUR 1,181.3 m; (EUR +86.9 m) Non-presc
Slide 9: Our Key Therapeutic Areas
Our Key Therapeutic Areas Representing over 80% of total sales Cardiovascular Central Gastrointestinal nervous Analgesics Diabetes Hypertension Lipides tract system Key Antidepressants, DPP-4 inhibitors Sartans, ACE Statins and other antipsychotics Proton pump NSAIDs, opioids, therapeutic inhibitors
Slide 10: Research & Development
Research & Development Committed to continuous development of innovative branded generic products 14 new MA for products in 1-9 2024 12 RX; 1 OTC; 1 VET Highligted MA: More than 850 MA procedures finalised ✓ Kanpiduo unique medication angiotensin II receptor blocker for blood pressure control. ✓ Del
Slide 11: Our Innovative Medicines
Our Innovative Medicines Innovative branded generic producer with own R&D ADVANCED UNIQUE STATE-OF-THE-ART UNIQUE PHARMACEUTICAL SINGLE PILL EQUIPMENT Delivering the most demanding FORMULATIONS Great possibility of STRENGTHS Tailoring the COMBINATIONS Synergistic action & 150 projects in terms of te
Slide 12: Investments
Investments Increasing the resilience and flexibility of our vertically integrated business model CAPEX 1-9 2024: €91.7m, +13% yoy; FY 2024 plan: €130m 150 CAPEX EUR m 132 100 106 50 77 91.7 66 Aiming the investments predominantly for increasing and technologically upgrading production facilities an
Slide 13: Consolidated Income Statement
Consolidated Income Statement Maintaining high profitability EUR thousand 1-9 2024 (%) 1-9 2023 (%) YoY +8% 1,107,143 Revenue 1,434,662 100 1,340,536 100 7% 1,024,685 Costs of goods sold 615,339 569,320 8% Gross profit 819,323 57 771,216 58 6% 615,339 569,320 Other operating income 5,090 0 4,423 0 1
Slide 14: FX Impact
FX Impact RUB depreciated in Q3 2024 ✓ RUB, USD and PLN rate have a significant impact on the EUR/RUB FX rate (2022 – 2024) Krka Group's net financial result, the effect of other currencies is marginal. 160 140 ✓ The FX impact on the Krka Group's net financial result was unfavourable in 1-9 2024 res
Slide 15: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Strong financial position without leverage burden EUR thousand 30.9.2024 (%) 31.12.2023 (%) change change % ASSETS 2,816,135 100 2,764,291 100 51,844 2% Non-current assets 1,017,003 36 1,059,267 38 -42,264 -4% Current assets 1,799,132 64 1,705,024 62 94,1
Slide 16: Krka Group Operating Results
Krka Group Operating Results Maintaining high profitability Profitability Margins development 70% EUR million 1-9 2024 1-9 2023 yoy 59.4% 60% 56.9% 56.7% 56.8% 57.1% Gross profit 819.3 771.2 6% 50% Gross profit margin 57.1% 57.5% 5y average EBITDA margin: 28.9% 40% EBITDA 401.7 398.2 1% 32.7% 29.5%
Slide 17: Performance Indicators
Performance Indicators Maintaining long-term momentum Revenue in € million EBITDA in € million plan 1806 1890 600 502 504 2,000 1717 464 488 1535 1565 500 402 1435 1,500 400 5y average (2019-2023) 1,000 300 EBITDA margin: 28.9% 1-9 200 500 5Y CAGR 6.4% 100 5Y CAGR 8.0% 0 0 2020 2021 2022 2023 2024 2
Slide 18: Dividend Policy and Share Buyback
Dividend Policy and Share Buyback Management committed to stable capital allocation DPS and dividend yield* for the business year Treasury shares as of total Dividend approved by AGM Repurchased almost €14 m of treasury shares in 2023 8.00 8% 8.0% 7.00 10Y CAGR 13.6% 7% 6.3% 5.9% 6.00 6% 6.0% 5.4% 5
Slide 19: Share Information and Shareholder Structure
Share Information and Shareholder Structure Stable shareholder structure (KRKG SV) Average daily turnover and stock price YTD Largest shareholders as of 30 September 2024 1,200 150 1,000 746 759 125 20.0% Individual Slovenian investors 800 EUR thousand 653 636 41.3% Slovenian institutional investors
Slide 20: ESG Governance of Krka Group
ESG Governance of Krka Group CSRD/ESRS reporting requirements implementation Material ESG Topic Groups Key Activities ✓ Adoption of new corporate policies related to ACCESSIBLE HEALTHCARE environmental protection, human rights and value chain sustainability in the Krka Group. With the adoption of ne
Slide 21: 2024 Estimates and 2025 Guidance
2024 Estimates and 2025 Guidance In line with long-term strategic objectives FY 2024 estimates: sales guidance (€1,850m → €1,890m) and net income (€310m → €339m) raised Sales Net income (EUR million) (EUR million) FY 2025 guidance: +5.5% 2,000 +4.4% 354 1,890 339 Sales: €2,000 million 1850 310 Net i
Slide 22: Long-term Stable Operating Growth
Long-term Stable Operating Growth Growing faster than global pharmaceutical market 2,250 20 Sales revenue CAGR (2005–2023) 7.3% 2,000 18 Net income CAGR (2005–2023) 8.6% 16 1,750 Global pharma market CAGR (2005–2023) 5.7% 14 1,500 Pieces sold billion 12 EUR million 1,250 10 1,000 8 750 6 500 4 250 2
Slide 23: Internally Confidential
INTERNALLY CONFIDENTIAL © Krka, d. d., Novo mesto
Slide 24: Disclaimer
Disclaimer The information, statements or data contained in this presentation has been prepared by Krka, tovarna zdravil, d. d., Novo mesto (hereinafter: the Company) and has been prepared solely for the purpose of informative presentation of the Company business operations. The presentation is not
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