Krka d d : Group Q1 2024 results presentation

Krka Group

Business Performance Q1 2024

David Bratož, Member of The Management Board

Brane Kastelec, Finance Director

16 May 2024

www.krka.biz

Celebrating 70 Years Anniversary

~

Well-Diversified Activities

Providing access to high quality affordable medicines

Krka's presence on 70+ markets in 6 sales regions

49 subsidiaries outside Slovenia:

45% of all Krka Group workforce

Sales regions

Region Slovenia

Region Central Europe

Region East Europe

Region South-East Europe

Region West Europe

Region Overseas markets

Manufacturing locations

Slovenia I Russian Federation

Poland I Germany I Croatia I China

Over 100 million people use Krka's

medicines worldwide

17.5 bn FDF sold annually in various therapeutic groups

Operating in many low to middle income countries, creating savings for patients & healthcare systems

www.krka.biz

3

Krka Group Business Performance

Q1 2024 Unaudited results highlights

• Record Q1 Sales accounted to €486.1m; + 6% yoy; volume: + 3%
• Strong EBITDA of €138.5m; sustaining margin of 28.5% well above guidance
• Record Q1 Net profit of €98.8m; + 11% yoy
• Sales increased in all regions except Overseas markets and all products & service groups except OTC (high base effect from Q1 2023)
• Strong demand contributed to sales increase in Rx
• Low FX volatility in Q1 → + €4.4m net financial result
• 5 new MA and 203 MA procedures finalised
• 2024 CAPEX: €27m; + 24% yoy
• Establishing JV with Laurus Labs Ltd. in India

SALES 5Y CAGR: 5.2%

In		456	486
EUR	432
million
	1-3 22	1-3 23	1-3 24

NET INCOME 5Y CAGR: 7.0%

In			99
EUR	91	89
million
	1-3 22	1-3 23	1-3 24

From a small laboratory to a well established world-wide generic pharmaceutical company

• Reaffirmed 2024 guidance: sales €1,850m, net income ≈ €310m

www.krka.biz

4

(+6% yoy; EUR +27.9 m)

Krka Group Sales by Regions

Continuation of strong sales dynamics

Q1 2024 sales: EUR 484.1 million of goods and services

	Overseas Markets	Slovenia
-1%	EUR 18.9 m	EUR 30.1 m	+7%
(EUR -0.3 m)	(EUR +2.0 m)

	West Europe		3.9%6.2%	South-East Europe
		14.3%
	19.2%	EUR 69.1 m	+9%
+1%	EUR 92.8 m
	(EUR +1.0 m)			(EUR +5.6 m)

24.1%	32.3%	East Europe
Central Europe		EUR 156.4 m	+9%

EUR 116.8 m	(EUR +13.0 m)
+6%
(EUR +6.5 m)

Sales activities in 71 countries

all around the world

www.krka.biz

5

Largest market: Russian Federation (-3%yoy change)

848885

In

EUR million

Q1 22

Q1 23

Q1 24

2nd market Poland (+18% yoy change)

464856

In

EUR million

Q1 22

Q1 23

Q1 24

3rd market Ukraine (+135% yoy change)

27		25
	11		In
			EUR
			million
Q1 22	Q1 23	Q1 24

4th market Germany (0% yoy change)

23	23	23	In
			EUR
			million
Q1 22	Q1 23	Q1 24

5th market Romania (+7% yoy change)

18	18	19	In
			EUR
			million
Q1 22	Q1 23	Q1 24

Broad Product Portfolio

Sales by products and service groups Q1 2024

Majority of sales for companion animals

Record sales figures

year over year

OTC

Other

Gastro

Vitamins and

minerals

Analgesics

www.krka.biz	6

	+6%		Health-resort &
		tourist services	+5%
			+8%
Animal health products	EUR 11.0 m;
(EUR +0.6 m)
EUR 30.2 m; (EUR +1.8 m)		Prescription
			2.3%		pharmaceuticals (Rx)
				EUR 400.2 m; (EUR +29.9 m)	Rx
			6.2%
Non-prescription
products (OTC)	-9%	8.8%	82.7%
EUR 42.8 m;

(EUR -4.3 m)

Antidiabetics Other

Antiinfectives

Rx
Pain
Cough
and cold
CNS	CVS
	Gastro

Our key therapeutic areas

Representing over 80% of total sales revenue

	Cardiovascular	Central	Gastrointestinal
			nervous	Analgesics	Diabetes
	Hypertension	Lipides	tract
	system
Key			Antidepressants,			DPP-4 inhibitors
Sartans, ACE	Statins and other	antipsychotics	Proton pump	NSAIDs, opioids,
therapeutic	SGLT-2 inhibitors
inhibitors.	hypolipemics.	Alzheimer's &	inhibitors.	other analgesics.
groups	sulphonylureas
		Parkinson's agents.

Key brands*

				The leading generic
2023	The leading generic producer of sartans	The leading	Among leading	producer of	The leading generic
generic producer of	producers of proton	tramadol and	producer of sitagliptin.
and ACE inhibitors.
position	paliperidone,	pump inhibitors - with	paracetamol combi.	Among the leading
Among the leading generic producers of
in Europe	ziprasidone, and	pantoprazole and	Nalgesin* is the	generic producers of
rosuvastatin and atorvastatin.
pramipexole.	esomeprazole	leading naproxen	gliclazide.
				product.

www.krka.biz

7	* Products are marketed under different product brand names or the Krka trademark in individual markets

Research & Development

Committed to continuous development of innovative branded generic products

5 new MA for products in Q1 2024

203 MA procedures finalised, obtaining approvals for 174 prescription pharmaceuticals and 9 non-prescription products, thus bringing medications closer to patients in numerous markets. Completed 20 procedures and thus supplemented the range of products mainly for pet animals.

• Highlited MA:

✓ Varesta (vortioxetine) treating depression.

• Co Amlessa Neo (perindopril arginine/amlodipine/indapamide) tablets fully

vertically integrated product.

• Vitamin D3 Krka (cholecalciferol) 30,000 IU tablets.
• Cardiovascular agent containing bisoprolol in film-coated tables and central nervous system agent containing aripiprazole in tablets in China.

Innovative Generic Manufacturer: Pioneers in Single pill combinations (SPC).

We are expanding the range of innovative SPC and other cardio SPC,

anticoagulants and products in the field of diabetes treatment

www.krka.biz	8

Strategic R&D target

• 10% of sales

800 experts engaged in

R&D

Over 170 products in our

pipeline

Krka's Innovative Medicines

Innovative branded generic producer with own R&D

STATE-OF-THE-ART	ADVANCED	UNIQUE	UNIQUE
PHARMACEUTICAL	SINGLE PILL
EQUIPMENT	STRENGTHS
FORMULATIONS	COMBINATIONS
Delivering the most demanding	Great possibility of	Tailoring the	Synergistic action &
projects in terms of techniques	differentiation to other	treatment to	improved adherence for
and technologies	generics and originator	patients needs	patients

150

SPCs

1000 products based on 250 active ingredients (Rx, OTC & VET products)

Orodispersible tablets	Tablets with OROS	Formulation
delivery system*	suspension

1st generic manufacturer in the global pharma market to offer the triple SPC of perindopril, indapamide and amlodipine.

PATENT-PROTECTED INNOVATIONS

Capsules

containing pellets

www.krka.biz

Prolonged-release	Bilayer	NEW generation of
formulations	tablet	lozenges

9

350 Patent applications for over innovations

Investments

Increasing the resilience and flexibility of our business model

CAPEX Q1 2024: €27.0m, +24% yoy; FY 2024 plan: €150m

Aiming the investments predominantly for increasing and technologically upgrading production facilities and capacities for development and quality management.

• MANY UPCOMING INVESTMENT PROJECTS:
• Continuation of Notol plant washing room renovation, with packaging lines being replaced and upgraded, increasing the tableting and granulation capacity, and upgrading the logistic system.
• Plant for production of solid forms of medicines (OTO): finalizing the investment in additional capacities for the preparation of mixtures and granulation during tableting, as well as in logistics capacities.
• Lowering the temperature of the waste water at the outlet to the Krka river and increase energy efficiency through the beneficial use of waste water energy. With the investment, we follow the strategic goals of the ESG policy in the area of ​​responsiblemanagement of natural resources.
• In Croatia, we are increasing the capacity for the production of veterinary products.
• In Krško, on the basis of the project documentation and environmental impact assessment, we obtained an integral building permit for Sinteza 2, the Chemical Analytical Center, the storage of liquid raw materials and the treatment plant. The environmental protection permit and the SEVESO permit for the plant are still in the process of being obtained. We started at the end of 2023 with the construction of a technically and technologically advanced water treatment plant, and the construction of other facilities will be postponed for a few years.

Strengthening and optimizing our vertical integration at all levels

www.krka.biz	10

EUR m

CAPEX

150

100					132
			106
50		77
66
0						27
2020	2021	2022	2023	Q1 24

NOTOL 2

Slovenia

Krka Krško

Slovenia