Slide 1: First nine months results
2019 First nine months results CONFERENCE CALL – 31 OCTOBER 2019
Slide 2: First nine months 2019 highlights
First nine months 2019 highlights • Revenue € 1,100.4 million, up 8.6% • EBITDA € 409.6 million or 37.2% of sales, up 7.8% • Operating income (EBIT) € 353.5 million or 32.1% of sales, up 4.9% • Net income € 253.7 million or 23.1% of sales, up 6.6% • Net debt € 498.7 million, compared to net debt of
Slide 3: Transaction to accelerate the development of our Rare Diseases business
Transaction to accelerate the development of our Rare Diseases business Acquisition of one marketed product and one late phase pipeline product in the endocrinology segment Key Highlights • Injectable somatostatin analogue for the treatment of Cushing’s disease and acromegaly Complementary portfol
Slide 4: Transaction snapshot
Transaction snapshot • Upfront cash consideration of $ 390 million Purchase Price • Regulatory milestones, in addition to royalties on net sales contingent upon approval and market access of osilodrostat Funding • Funded by existing liquidity and new debt facilities obtained in July • Acceptable pro
Slide 5: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 67.6% of revenue (million Euro) 9 mos 2019 9 mos 2018 Change % Zanidip® (lercanidipine) 102.2 95.6 6.9 Zanipress® (lercanidipine+enalapril) 44.4 46.1 (3.8) Urorec® (silodosin) 82.7 76.1 8.6 Livazo® (pitavastatin) 40.
Slide 6: A diversified product portfolio
A diversified product portfolio Other corporate products 12.8% (excluding OTC) Drugs for rare diseases 16.1% Seloken®/Logimax® 6.6% Livazo® 3.6% Urorec® 7.5% Zanipress® 4.0% OTC 18.5% Zanidip® 9.3% Subsidiaries’ local product Pharmaceutical chemicals 3.1% portfolios 17.6% Ortoton® (methocarbamol) ‐
Slide 7: Composition of revenue by geography
Composition of revenue by geography (million Euro) 9 mos 2019 9 mos 2018 Change % Italy 215.1 200.9 7.1 France 117.0 98.1 19.3 Germany 101.5 101.3 0.1 Russia, other CIS countries and Ukraine 83.6 75.1 11.3 U.S.A. 78.3 75.1 4.4 Spain 69.4 64.7 7.4 Turkey 65.3 57.6 13.4 Portugal 33.0 31.0 6.4 Other CE
Slide 8: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 14.7% (sales to licensees, exports, sales in ROW) Italy 20.2% North Africa 2.8% Other W. Europe 5.2% France 11.0% Other CEE 5.6% Portugal 3.1% Turkey 6.1% Germany 9.5% Spain 6.5% Russia, other CIS and U.S.A. 7.4% Ukraine 7.9%
Slide 9: First nine months 2019 results
First nine months 2019 results (million Euro) 9 mos 2019 9 mos 2018 Change % Revenue 1,100.4 1,013.3 8.6 Gross Profit 771.3 717.3 7.5 as % of revenue 70.1 70.8 SG&A Expenses 325.2 298.8 8.8 as % of revenue 29.6 29.5 R&D Expenses 91.6 79.4 15.3 as % of revenue 8.3 7.8 Other Income (Expense), net (1.1
Slide 10: First nine months 2019 results
First nine months 2019 results Operating Segments EBIT Treatments for rare diseases 22.8% Revenue Treatments for rare diseases 16.1% Specialty & primary care 77.2% EBITDA Treatments for rare diseases 21.4% Specialty & primary care 83.9% Margin on sales: Specialty & primary Treatments for rare diseas
Slide 11: Net financial position
Net financial position 30 Sep 2019 31 Dec 2018 Change (million Euro) Cash and short‐term financial investments 612.9 198.0 414.9 Bank overdrafts and short‐term loans (16.5) (16.9) 0.4 Loans and leases – due within one year* (101.1) (135.3) 34.2 Loans and leases – due after one year* (994.0) (634.2)
Slide 12: Financial projections: 2019 targets confirmed
Financial projections 2019 targets confirmed 2018 2019 Actual Targets (million Euro) • 2019 revenue targets, revised in July following Revenue 1,352.2 1,460 ‐ 1,480 good performance in the period and the contribution expected in 4Q from Signifor® and Signifor® LAR®, are confirmed EBITDA 499.1 535 –
Slide 13: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154‐bis of the Consolidated Law on Finan