Slide 1: 2010 First Quarter Results; Objectives for 2010-2012
Milan, 6 May 2010 2010 First q quarter results Objectives for 2010-2012
Slide 2: First Quarter 2010 Highlights
FIRST QUARTER 2010 HIGHLIGHTS • Revenue € 185.9 185 9 million million, up 1 1.2%, 2% international sales grow by 1 1.0% 0% • Operating income (EBIT) € 43.1 million, up 6.0% • Net Income € 30.0 million, up 8.5% • Silodosin (Urorec®/Silodyx™) approved in Europe • Carbaglu® (carglumic acid) approved by
Slide 3: Composition of Revenue
COMPOSITION OF REVENUE (million Euro) 1Q 2010 1Q 2009 Change % Italyy 55.6 54.9 1.3 France 36.9 38.1 (3.1) Germany 15.5 14.7 5.7 Portugal 81 8.1 11 1 11.1 (26 7) (26.7) Spain 6.9 7.4 (6.7) United Kingdom 2.5 3.5 (29.7) Other Western European countries 4.3 3.7 15.8 Russia, Turkey, other CEE countries
Slide 4: Geographical Breakdown of Pharmaceutical Revenue
GEOGRAPHICAL BREAKDOWN OF PHARMACEUTICAL REVENUE Portugal 4.5% Spain 3.9% Germany 8.6% UK 1.4% Other W. European countries 2.4% Russia Turkey Russia, Turkey, other CEE 8 8.1% 1% France 20.6% Other international sales 19.6% Italy 30.9% Data: First quarter 2010 Pharmaceutical revenue € 179.6 m 3
Slide 5: Composition of Revenue by Business
COMPOSITION OF REVENUE BY BUSINESS Zanipress 3.5% Other corporate products 7.3% Zanidip 23.8% Orphan drugs 8 8.5% 5% Pharmaceutical chemicals 3 3.4% 4% Local product portfolios 49.0% Other revenue 4.5% Entact®/Elopram® 6% (escitalopram/citalopram) (esc ta op a /c ta op a ) - Italy ta y Peptazol® (pa
Slide 6: Main Product Sales
MAIN PRODUCT SALES (million Euro) 1Q 2010 1Q 2009 Change % Zanidip® (lercanidipine) 44 2 44.2 51.2 (13.7%) Zanipress® (lercanidipine+enalapril) 6.4 3.1 110.4 Other corporate products 13.5 7.6 78.0 Orphan drugs 15.7 11.9 31.6 5
Slide 7: First Quarter 2010 Results
FIRST QUARTER 2010 RESULTS (million Euro) 1Q 2010 1Q 2009 Change % Revenue 185.9 183.7 1.2 Gross Profit 126.2 123.5 2.1 as % of revenue 67.9% 67.2% SG&A Expenses 65.8 65.8 0.0 as % of revenue 35.4% 35.8% R&D & Expenses pe ses 16.4 15.3 53 7.4 as % of revenue 8.8% 8.3% Other Income (Expense), net (0.
Slide 8: Net Financial Position and Shareholders' Equity
NET FINANCIAL POSITION AND SHAREHOLDER’S EQUITY (million Euro) 31 Mar 2010 31 Dec 2009 Change Cash and short-term financial 87.6 93.8 (6.2) investments Bank overdrafts and short-term (6.3) (28.9) 22.6 loans Loans – due within one year (1 8) (1.8) (2.4) 0.6 Loans – due after one year (82.1) (82.2) 0.
Slide 9: 2010 - 2012 Business Objectives
2010 - 2012 BUSINESS OBJECTIVES 1. STRATEGY 2. SALES DEVELOPMENT ASSUMPTIONS 3. FINANCIAL PROJECTIONS 8
Slide 10: 1. Strategy
1. STRATEGY • Recordati will continue to develop its business in Europe, both Western and in the new growing CEE (Central and Eastern Europe) markets, which together represent the second largest pharmaceutical market in the world,, • by growing its existing product portfolio, • acquiring new product
Slide 11: 2. Sales Development Assumptions: Lercanidipine franchise
2. SALES DEVELOPMENT ASSUMPTIONS Lercanidipine franchise • Zanidip® (lercanidipine) sales will diminish progressively over the 2010- 2012 period to approx. € 100 million and remain relatively stable thereafter • Zanipress® (lercanidipine + enalapril): • Will grow iin liline with ith expectations t t
Slide 12: 2. Sales Development Assumptions: Urorec/Silodyx (silodosin)
2. SALES DEVELOPMENT ASSUMPTIONS Urorec®/Silodyx® (silodosin) • European marketing approval obtained end January 2010 • Main launches to take place September 2010 through March 2011 • License and co-marketing g agreements g in p place with important p p players y • BPH market in 19 major European ma
Slide 13: 2. Sales Development Assumptions: Livazo (pitavastatin)
2. SALES DEVELOPMENT ASSUMPTIONS Livazo® (pitavastatin) • Marketing approval expected 3Q 2010 • To be launched progressively during 2011 • Co-marketing g agreements g in p place or being g negotiated g • Statins market in the 8 largest of the 21 countries covered by the agreement was € 3 billion in
Slide 14: 3. Financial Projections: Assumptions
3. FINANCIAL PROJECTIONS Assumptions • Gross profit is expected to decrease to approx. 65-66% of sales over the period • SG&A expenses: • Sales force restructuring already completed. Now around 1,400 strong. • Promotional activity to increase in 2011 2011-2012 2012 to support launch of new corporate
Slide 15: 3. Financial Projections: 2010 Targets, 2010-2012 Plan
3. FINANCIAL PROJECTIONS 2010 TARGETS, TARGETS 2010 - 2012 PLAN 2009 2010 2011 2012 Actual Targets Plan Plan (million Euro) Revenue 747.5 >700 730-740 780-800 Operating income (EBIT) 162.2 >140 145-150 155-160 Net Income 110.6 >95 100-102 110-112 • Based on existing business, no new acquisitions inc
Slide 16: 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