Slide 1: Full Year 2023 Preliminary Results
FULL YEAR 2023 PRELIMINARY RESULTS Milan, February 22nd 2024
Slide 2: Speakers
SPEAKERS Rob Koremans Luigi La Corte Chief Executive Chief Financial Officer Officer 2
Slide 3: Strong Performance Across the Entire Business
STRONG PERFORMANCE ACROSS THE ENTIRE BUSINESS • FY 2023 Preliminary net revenues at € 2,082.3 million, +12.4% vs PY or +14.0% like-for-like1 at CER (+9.6% excluding Türkiye), driven by strong momentum across the business: o SPC at € 1,313.6 million, +8.7% vs PY or +13.6% like-for-like1 at CER (+6.6%
Slide 4: Delivering Another Year of Strong Financial Results, Average ROIC 15-20%
DELIVERING ANOTHER YEAR OF STRONG FINANCIAL RESULTS, WITH AVERAGE ROIC1 OF 15-20% OVER LAST DECADE Group Revenue 2013-2023 million Euro CAGR +8.3% 2,082 1,853 1,580 1,482 1,449 1,288 1,352 1,154 987 1,048 942 RRD SPC2 2013 2014 2015 2016 2017 2018 2019 2020* 2021 2022 2023 Actual vs Mid- point of gu
Slide 5: Specialty & Primary Care: Outperforming Market Growth Across the Region
SPECIALTY & PRIMARY CARE: OUTPERFORMING MARKET GROWTH ACROSS THE REGION Key highlights Pharmaceutical Revenue1 FY 2023 vs FY 2022 million Euro • FY 2023 growth +8.7% vs PY or +13.6% like-for-like2 at CER +8.7% (+6.6% excluding Türkiye), outperforming the market across the region and all core therape
Slide 6: Rare Diseases: Onco and Endo Franchises Drive High Double-Digit Growth
RARE DISEASES: ONCO AND ENDO FRANCHISES DRIVE HIGH DOUBLE-DIGIT GROWTH Key highlights Revenue FY 2023 vs FY 2022 • FY 2023 growth +20.0% vs PY or +14.9% like-for-like2 at CER, driven million Euro by key growth franchises (Onco & Endo) +20.0% • Oncology: First full year after acquisition, exceeding e
Slide 7: All Regions Delivering Solid Growth
ALL REGIONS DELIVERING SOLID GROWTH (million euro) FY 2023 FY 2022 Change % U.S.A 316.1 260.5 21.4 Italy 309.8 272.7 13.6 France 179.7 169.1 6.3 Germany 150.9 167.6 (10.0) Spain 165.1 142.6 15.8 Portugal 60.2 53.5 12.6 Türkiye 97.5 74.3 31.2 Russia, other CIS countries and Ukraine 140.6 131.7 6.8 Ot
Slide 8: Financial Results at Top End of Upgraded 2023 Guidance
FINANCIAL RESULTS AT TOP END OF UPGRADED 2023 GUIDANCE EBITDA MARGIN AT 37% OF REVENUE (million Euro) FY 2023 FY 2022 Change % Revenue 2,082.3 1,853.3 12.4 Gross Profit 1,422.6 1,286.6 10.6 as % of revenue 68.3% 69.4% 1 Adjusted Gross Profit 1,481.6 1,336.4 10.9 as % of revenue 71.1% 72.1% SG&A Expe
Slide 9: Strong FY 2023 Cash Flow – Ahead of Prior Year
STRONG FY 2023 CASH FLOW – AHEAD OF PRIOR YEAR WORKING CAPITAL ABSORPTION REFLECTING STRONG BUSINESS GROWTH (million Euro) FY 2023 FY 2022 Change EBITDA1 769.6 672.8 96.8 Movements in working capital (110.6) (61.4) (49.2) Changes in other assets & liabilities (8.2) (16.8) 8.6 Interest received/(paid
Slide 10: Solid Net Financial Position – Leverage of ~1.96x LTM EBITDA
SOLID NET FINANCIAL POSITION – LEVERAGE OF ~1.96x LTM EBITDA (PRO-FORMA)3 (million Euro) 31 DEC 2023 31 DEC 2022 Change Cash and cash equivalents 221.8 284.7 (62.9) Short-term debts to banks and other lenders (99.9) (83.4) (16.5) Loans and leases - due within one year1 (353.7) (289.0) (64.7) Loans a
Slide 11: Target Double-Digit Growth of Revenue and EBITDA in 2024
TARGET DOUBLE-DIGIT GROWTH OF REVENUE AND EBITDA IN 2024* ADJUSTED NET INCOME GROWTH ABSORBING INCREASE IN TAX RATES FY 2023 FY 2024 Actual Target Outlook • Continued robust revenue growth momentum: o Mid-single digit organic growth of SPC (at CER) Revenue 2,082.3 2,260–2,320 o Double-digit organic
Slide 12: Value Proposition Unchanged; On Track to Deliver >€2.4bn Revenue in 2025
VALUE PROPOSITION UNCHANGED; ON TRACK TO DELIVER >€2.4 bn REVENUE IN 20251, SUSTAINING EBITDA MARGIN +/- 37% Drive organic growth of Sustain high level of Pursue targeted Maintain clear capital diversified business profitability pipeline opportunities allocation policy Strong underling volume Mainta
Slide 13: Questions & Answers
QUESTIONS & ANSWERS Rob Koremans Luigi La Corte Alberto Martinez Scott Pescatore Chief Executive Chief Financial Executive VP Executive VP Rare Officer Officer Specialty & Diseases Primary Care 13
Slide 14: Appendix
APPENDIX
Slide 15: Composition of Revenue
COMPOSITION OF REVENUE DIVERSIFIED PORTFOLIO AND FOOTPRINT Therapeutic Areas Geographic Total Revenue FY 2023 Pharmaceutical Revenue FY 2023 Rare Disease 34.3% Metabolic Specialty and Primary Care Endocrinology 2.0% USA (incl. Chemicals) 65.7% 3.0% Oncology 4.8% 15.6% Cardiovascular 6.6% 13.0% 6.9%
Slide 16: Main Products Sales
MAIN PRODUCTS SALES (million Euro) FY 2023 FY 2022 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)1 181.4 168.0 8.0 Seloken®/Seloken® ZOK/Logimax® 98.0 97.8 0.2 (metoprolol/metoprolol+felodipine) Urorec® (silodosin) 70.0 60.7 15.4 Livazo® (pitavastatin) 44.6 44.1 1.2 Eligard® 110.7 104.1
Slide 17: FY 2023 Results by Operating Segments
FY 2023 RESULTS BY OPERATING SEGMENTS Total Revenue FY 2023 EBITDA FY 2023 Specialty and Specialty and Primary Care (incl. Primary Care (incl. Chemicals) Chemicals) 39.3% Rare Diseases 34.3% Rare Diseases 65.7% 60.7% Margin on Revenue: Rare Diseases: EBITDA 1 42.3% Specialty and Primary care: EBITDA
Slide 18: Upcoming R&D Pipeline Milestones
UPCOMING R&D PIPELINE MILESTONES PROGRAM EXPECTED TIMELINE Osilodrostat • Cushing Syndrome US FDA meeting end of Q2 2024 ( ) Pasireotide • Post-Bariatric Hypoglycaemia (PBH) Phase 2 enrollment completion by end 2024 / early 2025 ONGOING PROGRAMS Dinutuximab beta • High Risk relapsed/refractory Neuro
Slide 19: FY 2023 Results – Adjusting Items
FY 2023 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA1 (million Euro) FY 2023 FY 2022 Change % Net Income 389.2 312.3 24.6 Summary of key items Income Taxes 101.8 89.1 Financial (income)/expenses, net 67.0 35.9 o/w net FX (gains)/losses2 (2.2) 5.8 o/w net monetary (gains)/losses •
Slide 20: Company Declarations, Disclaimers and Profile
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE Statements contained in this presentation, other than historical facts, are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on
Slide 21: Unlocking the full potential of life
Unlocking the full potential of life. ~ RECORDATI