Slide 1: 2023 First Nine Months Results
2023 FIRST NINE MONTHS RESULTS Milano, November 7th 2023
Slide 2: Continued strong momentum across the business
CONTINUED STRONG MOMENTUM ACROSS THE BUSINESS ▪ Net Revenue at € 1,556.2 million is +13.0% vs PY or +13.8% like-for-like (1) at CER, driven by volume growth, with positive pricing mostly offset by adverse FX: o SPC at € 985.5 million, +8.1% vs PY or +13.4% like-for-like (1) at CER (+6.9% excluding T
Slide 3: Robust organic growth in SPC ahead of relevant markets, absorbing FX headwind
ROBUST ORGANIC GROWTH IN SPC AHEAD OF RELEVANT MARKETS, ABSORBING FX HEADWIND Key highlights Pharmaceutical Revenue (1) 9M 2023 vs 9M 2022 million Euro • Growth in the first nine months is +13.4% like-for-like (2) at + 8.1% CER, with all core therapeutic areas growing, thanks to (+ 7.7% (2)) increas
Slide 4: SPC Urology franchise - Avodart and Combodart transition on track
SPC UROLOGY FRANCHISE - AVODART® AND COMBODART®1) TRANSITION ON TRACK 2023 Q3 Q4 July August September October November December September • Avodart®/ Combodart® sales transitioned in five markets in Q3, following completion of agreement with GSK contributing Net revenue of € 3.8 million • Activitie
Slide 5: Endo and Onco franchise drive continued double-digit growth of rare diseases
ENDO AND ONCO FRANCHISE DRIVE CONTINUED DOUBLE-DIGIT GROWTH OF RARE DISEASES Key highlights Revenue 9M 2023 vs 9M 2022 million Euro • Key growth franchises (Endo & Onco) on track to deliver on mid and long term targets + 23.5% (+ 13.3% (2)) • Oncology: growing at +16%(2) vs PY with Qarziba® growing
Slide 6: All regions delivering solid growth
ALL REGIONS DELIVERING SOLID GROWTH US RARE DISEASES NOW LARGEST BUSINESS IN THE GROUP FOR FIRST TIME (million Euro) 9M 2023 9M 2022 Change % Italy 229.0 206.8 10.7 U.S.A. 234.1 190.7 22.7 France 135.6 126.2 7.5 Germany 113.8 123.9 (8.2) Spain 113.3 104.5 8.3 Portugal 43.7 40.7 7.4 Türkiye 79.1 59.9
Slide 7: Operating leverage and cost discipline sustain EBITDA at 38.3% of revenue
OPERATING LEVERAGE AND COST DISCIPLINE SUSTAIN EBITDA AT 38.3% OF REVENUE (million Euro) 9M 2023 9M 2022 Change % Revenue 1,556.2 1,377.5 13.0 Gross Profit 1,065.7 954.7 11.6 as % of revenue 68.5 69.3 Adjusted Gross Profit(1) 1,113.2 990.4 12.4 as % of revenue 71.5 71.9 SG&A Expenses 439.1 411.8 6.6
Slide 8: Strong 9M 2023 cash flow – ahead of prior year
STRONG 9M 2023 CASH FLOW – AHEAD OF PRIOR YEAR (million Euro) 9M 2023 9M 2022 Change EBITDA(1) 595.6 516.2 79.4 Movements in working capital (75.4) (40.2) (35.2) Changes in other assets & liabilities (20.5) (5.8) (14.7) Interest received/(paid) (46.4) (13.3) (33.1) Income Tax Paid (53.3) (56.0) 2.7
Slide 9: Solid net financial position – leverage at 1.9x LTM EBITDA
SOLID NET FINANCIAL POSITION – LEVERAGE AT 1.9x(3) LTM EBITDA 30 SEPT 2023 31 DEC 2022 Change (million Euro) Cash and cash equivalents 302.3 284.7 17.5 Short-term debts to banks and other lenders (41.7) (83.4) 41.8 Loans and leases – due within one year(1) (394.2) (289.0) (105.1) Loans and leases –
Slide 10: Expect FY 2023 results at high end of guidance range, on track to exceed 2025 targets
EXPECT FY 2023 RESULTS AT HIGH END OF GUIDANCE RANGE, BUSINESS ON TRACK TO EXCEED TARGETS SET FOR 2025 • Given the strong organic growth momentum, we expect FY 2023 results at the high end of the guidance range provided in May (1), despite increased FX headwinds • On track to exceed the 2025 targets
Slide 11: Questions & Answers
QUESTIONS & ANSWERS
Slide 12: Appendix
APPENDIX
Slide 13: Corporate products
CORPORATE PRODUCTS (million Euro) 9M 2023 9M 2022 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)(1) 148.3 131.9 12.4 Seloken®/Seloken® ZOK/Logimax® 72.1 72.5 (0.6) (metoprolol/metoprolol+felodipine) Urorec® (silodosin) 53.1 46.2 15.1 Livazo® (pitavastatin) 35.3 35.7 (1.3) Eligard® 82.3 7
Slide 14: Well-diversified revenue base
WELL–DIVERSIFIED REVENUE BASE Therapeutic Areas Geographic Total Revenue 9M 2023 Pharmaceutical Revenue 9M 2023 Rare Disease 34.1% Metabolic Specialty and Primary Care Endocrinology (incl. Chemicals) 65.9% 2.9% Italy Oncology 5.2% 2.0% Cardiovascular 6.8% 13.1% 15.1% Urology 10.6% 6.9% USA Gastro &
Slide 15: First nine months 2023 results: operating segments
FIRST NINE MONTHS 2023 RESULTS OPERATING SEGMENTS Total Revenue 9M 2023 EBITDA 9M 2023 Specialty and Specialty and Primary Care (incl. Primary Care (incl. Chemicals) Chemicals) 39.8% Rare Diseases 34.1% Rare Diseases 65.9% 60.2% Margin on Sales: Rare Diseases: EBITDA (1) 44.7% Specialty and Primary
Slide 16: First nine months 2023 results – adjusting items
FIRST NINE MONTHS 2023 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA (1) (million Euro) 9M 2023 9M 2022 Change % Net income 304.5 241.5 26.1 Summary of key items Income taxes 85.2 68.3 Financial (income)/expenses, net 49.1 46.2 o/w net FX (gains)/losses (2) 0.3 18.2 o/w net moneta
Slide 17: 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 Luigi La Corte declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Fina
Slide 18: Recordati
NS RECORDATI