Slide 1: Preliminary 2005 financials, 2006 Outlook
Preliminary 2005 financials 2006 Outlook Conference Call, 9 February 2006
Slide 2: Fourth quarter 2005 highlights
Fourth quarter 2005 highlights • Revenue up 23.1%, or 11.5% on a like-for-like basis • Pharmaceutical sales up 25.0%, or 12.3% on a like-for-like basis • Pharmaceutical chemicals business reorganized • Opera and Murcia plants disposed of resulting in discontinued operations of negative € 3.7 million
Slide 3: Full year 2005 highlights
Full year 2005 highlights • Revenue up 20.2%, or 10.5% on a like-for-like basis • Pharmaceutical sales up 22.5%, or 11.8% on a like-for-like basis • International pharmaceutical sales up 42.1% • Lercanidipine sales up 23.4% • Operating income up 21.3% (before goodwill amortization) • Net income up 2
Slide 4: Composition of revenue
Composition of revenue (million euro) 2005 2004 Change % Italy 217.4 213.5 1.8% France 126.4 106.7 18.4% Germany 54.3 - n.a. Spain 34.8 26.3 32.2% United Kingdom 5.1 - n.a. International licensees 99.5 85.4 16.5% Sophartex * - 6.9 (100.0)% TOTAL PHARMACEUTICALS 537.5 438.9 22.5% PHARMACEUTICAL 38.6
Slide 5: Breakdown of pharmaceutical revenue
Breakdown of pharmaceutical revenue Spain UK 7% 1% International licensees Germany 19% 10% France 23% Italy Data: full year 2005 (€ 537.5 m) 40% 4
Slide 6: Lercanidipine sales
Lercanidipine sales (million euro) 2005 2004 Change % Italy 43.6 39.5 10.5% France 30.0 23.4 28.4% Spain 6.0 4.9 20.9% United Kingdom 5.1 - n.a. DIRECT SALES 84.7 67.8 24.9% 59.8% 59.1% SALES TO LICENSEES 56.9 46.9 21.3% 40.2% 40.9% TOTAL LERCANIDIPINE 141.6 114.7 23.4% SALES 100.0% 100.0% 5
Slide 7: Full year results
Full year results (million euro) 2005 2004* Change % Revenue 576.1 479.2 20.2% Gross Profit 375.5 308.7 21.6% as % of revenue 65.2% 64.4% SG&A Expenses 217.6 178.3 22.1% as % of revenue 37.8% 37.2% R&D Expenses 45.0 37.3 as % of revenue 7.8% 7.8% 20.6% Operating Income 111.1 91.6 before goodwill amo
Slide 8: Net financial position
Net financial position (million euro) 31 Dec 2005 31 Dec 2004 Change Cash and short term financial 162.8 232.2 (69.5) investments Bank overdrafts (6.0) (3.5) (2.5) Loans – due within one (22.7) (25.2) 2.4 year Loans – due after one year (107.9) (131.4) 23.6 NET FINANCIAL POSITION 26.2 72.1 (46.0) 7
Slide 9: EU healthcare reforms - 2006 assumptions
EU healthcare reforms - 2006 assumptions • Italy - 4.4% price cut + 1% extra discount on reimbursed specialties (in substitution of 2004-2005 6.8% mandatory discount and selective price reduction) • France - delisting of Hexa line of products and Exomuc as from March. OTC new reference market. • Ger
Slide 10: Outlook for 2006
Outlook for 2006 (million euro) 2005 2006 REVENUE 576.1 >600 OPERATING INCOME 111.1 >120 NET INCOME 64.5 >75 Assumptions: Not considering any future acquisitions 9
Slide 11: Forward-looking statements disclaimer
Statements contained in this presentation, other than historical facts, are “forward- “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). 1995). These statements are based on currently available information, on current best estimates, and o