Recordati S.p.a. · MIL:REC
Recordati — H1 2004 Earnings Presentation
15 slides from Recordati's earnings presentation, Jul 28, 2004
Slide 1: 1st Half and 2nd Qtr Financials
2004 1st Half and 2nd Qtr Financials Conference Call, 28 July 2004
Slide 2: Operational highlights first half 2004
Operational highlights first half 2004 • Pharmaceutical sales up 5.7%, or 9.0% excluding Sophartex • International pharmaceutical sales up 15.7% • Lercanidipine sales up 31.7% • EBIT up 16.4% and net income up 38.2% • Sophartex sold • A new project for the development of a modified release version o
Slide 3: Composition of sales
Composition of sales (million euro) 1H 2003 1H 2004 Change % PHARMACEUTICALS 213.9 226.0 5.7% 86.5% 89.5% PHARMACEUTICAL 33.3 26.4 (20.8)% CHEMICALS 13.5% 10.5% TOTAL 247.2 252.4 2.1% 100.0% 100.0% ITALY 112.1 114.4 2.0% 45.4% 45.3% INTERNATIONAL 135.1 138.0 2.2% 54.6% 54.7% 2
Slide 4: Sources of growth
Sources of growth (% change, first half 2004 over first Volume Price Exchange Total half 2003) PHARMACEUTICALS 10.1 % (0.7) % (0.4) % 9.0 % excluding Sophartex SOPHARTEX (46.1) % - - (46.1) % PHARMACEUTICAL (17.2) % (0.4) % (3.2) % (20.8) % CHEMICALS TOTAL CHANGE 3.6 % (0.7) % (0.8) % 2.1 % 3
Slide 5: Composition of pharmaceutical sales
Composition of pharmaceutical sales (million euro) 1H 2003 1H 2004 Change % Pharmaceuticals Italy 107.5 110.8 3.1% Pharmaceuticals France 43.9 49.7 13.1% Pharmaceuticals Spain 10.8 11.8 9.5% International licensees 38.9 46.8 20.4% Sophartex * 12.8 6.9 (46.1)% TOTAL PHARMACEUTICALS 213.9 226.0 5.7% E
Slide 6: Breakdown of first half 2004 pharmaceutical sales
Breakdown of first half 2004 pharmaceutical sales International licensees Spain 21% 5% Sophartex France 3% 22% Italy 49% 5
Slide 7: Lercanidipine sales
Lercanidipine sales (million euro) 1H 2003 1H 2004 Change % Italy 16.8 19.6 16.8% France 6.5 10.9 66.2% Spain 2.4 2.4 3.2% DIRECT SALES 25.7 32.9 28.1% 56.4% 54.8% SALES TO LICENSEES 19.9 27.1 36.4% 43.6% 45.2% TOTAL LERCANIDIPINE 45.6 60.0 31.7% SALES 100.0% 100.0% 6
Slide 8: Main products
Main products Breakdown of 12 months pharmaceutical sales at June 2004 (€ 436 m) Zanidip (lercanidipine) 24% 11% Elopram/Entact (citalopram/es) 8% Peptazol/Ulcotenal (pantoprazole) Other Products 4% Tora-Dol (ketorolac) 22% Main 4% Hexa line (biclotimol) Products 3% Exomuc (acetylcysteine) 3% Isocef
Slide 9: First half results
First half results (million euro) 1H 2003 1H 2004 Change % Net Sales 247.2 252.4 2.1% Gross Profit 144.6 158.5 9.6% as % of sales 58.5% 62.8% Selling Expenses 77.4 84.4 9.1% as % of sales 31.3% 33.4% R&D Expenses 17.1 18.1 as % of sales 6.9% 7.2% 6.0% EBITDA 51.1 54.5 as % of sales 20.7% 6.8% 21.6%
Slide 10: EBIT by business area
EBIT by business area (million euro) 1H 2003 1H 2004 Change % PHARMACEUTICALS 38.9 42.1 8.3% as % of sales 18.2% 18.6% PHARMACEUTICAL CHEMICALS (1.8) 1.1 as % of sales* (4.7)% 3.1% n.s. TOTAL EBIT 37.1 43.2 16.4% as % of sales 15.0% 17.1% * Including inter-company sales 9
Slide 11: Second quarter results
Second quarter results (million euro) 2Q 2003 2Q 2004 Change % Net Sales 120.2 123.9 3.0% Gross Profit 71.2 79.0 11.1% as % of sales 59.2% 63.8% Selling Expenses 37.8 41.4 9.6% as % of sales 31.4% 33.4% R&D Expenses 8.2 8.7 as % of sales 6.8% 7.0% 6.4% EBITDA 25.8 28.3 as % of sales 21.5% 9.4% 22.8%
Slide 12: Second quarter EBIT by business area
Second quarter EBIT by business area (million euro) 2Q 2003 2Q 2004 Change % PHARMACEUTICALS 20.3 22.0 8.3% as % of sales 19.5% 20.0% PHARMACEUTICAL CHEMICALS (1.4) 1.1 as % of sales* (7.7)% 6.1% n.s. TOTAL EBIT 18.9 23.1 22.1% as % of sales 15.7% 18.7% * Including inter-company sales 11
Slide 13: Capital employed
Capital employed (million euro) 31 December 2003 30 June 2004 21.4 Net working capital 23.2 71.7 for operations Net non-current assets 64.9 227.9 Net debt or cash 239.3 177.6 Shareholders’ equity 151.2 Capital employed: 249.3 Capital employed: 216.1 12
Slide 14: Cash flow
Cash flow (million euro) 1H 2003 1H 2004 Net income 19.9 27.4 Depreciation of fixed assets 8.3 4.9 Amortization of intangible assets 5.6 6.5 Cash Flow from Operations 33.8 38.8 Change in working capital 13.7 4.8 Changes in non-current items (0.7) (6.9) Net investments in fixed assets (8.9) 8.6 Net i
Slide 15: Forward-looking statements
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