First nine months 2021 results press release

FINANCIAL RESULTS

for the nine-month period ending 30th September

2021

03/11

Laboratorios Farmacéuticos Rovi, S.A. and Subsidiaries - Investor Relations

KEY FIGURES

Summary

		Nine-month period
		ending Sept. 30,
								%
IN € MILLIONS		2021	2020			Growth			Growth
Operating revenue		463.5		302.1		161.4		53%
Gross profit		266.8		175.4		91.3		52%
EBITDA		139.5		69.7		69.9		100%
EBIT		123.3		55.3		68.0		123%
Net profit		98.9		46.8		52.1		111%
Capital Expenditure		22.0	16.9	5.1	30%
FCF		116.1		-21.5		137.6			n.a.
Gross profit as % of revenue		57.6%	58.1%						-0.5pp
EBITDA as % of revenue		30.1%		23.1%						7.0pp
EBIT as % of revenue		26.6%		18.3%						8.3pp
Net profit as % of revenue		21.3%		15.5%						5.8pp
Capex as % of revenue		4.7%		5.6%						-0.9pp
FCF as % of revenue		25.0%		-7.1%						32.2pp
		As of Sept.		As of Dec.
		30, 2021	31, 2020
Net debt (€ Millions)		-74.4		19.8		-94.2			n.a.
Net leverage ratio1 (x)		-0.53		0.28		-0.82			n.a.

• Net debt/EBITDA

Non-audited figures

Note: certain numerical figures included in this document have been rounded. Therefore, discrepancies in tables between totals and the sums of the amounts listed may occur due to such rounding.

The consolidated financial statements of Grupo ROVI for the first nine months of 2021 and the comparative information for 2020 (balance sheet) and for the first nine months of 2020 (consolidated income statement and cash flow statement) are attached to this report (see Appendix 1).

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CONTENTS
HIGHLIGHTS 9M 2021.........................................................................................................................................................	4
GROUP MANAGEMENT REPORT..............................................................................................................................	7
INCOME STATEMENT ...................................................................................................................................................	7
REVENUES............................................................................................................................................................................	8
SPECIALTY PHARMACEUTICAL BUSINESS..............................................................................................	9
LOW MOLECULAR WEIGHT HEPARINS...................................................................................................	10
OTHER PRESCRIPTION-BASED PHARMACEUTICAL PRODUCTS ...........................................	11
CONTRAST AGENTS AND OTHER HOSPITAL PRODUCTS ............................................................	11
CONTRACT MANUFACTURING ORGANISATION ("CMO") BUSINESS...................................	12
OTHER INCOME..........................................................................................................................................................	12
COSTS .....................................................................................................................................................................................	12
GROSS PROFIT ............................................................................................................................................................	12
RESEARCH AND DEVELOPMENT EXPENSES.......................................................................................	12
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES................................................................	13
DEPRECIATION ...........................................................................................................................................................	13
NET FINANCE RESULT ...........................................................................................................................................	13
EFFECTIVE TAX RATE..............................................................................................................................................	13
FINANCIAL PERFORMANCE..................................................................................................................................	14
DIVIDEND ............................................................................................................................................................................	16
FINANCIAL POSITION..................................................................................................................................................	17
LIQUIDITY.............................................................................................................................................................................	19
OUTLOOK.............................................................................................................................................................................	21
R&D UPDATE.........................................................................................................................................................................	22
ESG ..............................................................................................................................................................................................	24
KEY OPERATING AND FINANCIAL EVENTS ....................................................................................................	25
APPENDIX 1 ...........................................................................................................................................................................	34

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HIGHLIGHTS 9M 2021

ROVI REPORTS OPERATING REVENUE GROWTH OF 53% AND DOUBLES ITS EBITDA

• Operating revenue increased by 53% to 463.5 million euros driven by (i) the strength of the contract manufacturing organization ("CMO") business, which grew by 187%, and (ii) the specialty pharmaceutical business, where sales rose 18%.
• Sales of the heparin franchise (Low Molecular Weight Heparins (LMWH) and other heparins) increased by 15% to 181.5 million euros. Sales of the enoxaparin biosimilar increased 17% to 89.9 million euros and sales of Bemiparin increased 13% to 86.3 million euros.
• EBITDA doubled to 139.5 million euros.
• Net profit increased by 111% to 98.9 million euros.
• ROVI's ESG aspects have been evaluated by Sustainalytics, having obtained an "ESG Risk Rating 2021" of 18.4, which places the company at low risk (between 10 and 20). ROVI has attained the second position out of 432 companies in the sub-industry "pharmaceuticals".
• ROVI General Shareholders Meeting approved the payment of a gross dividend of 0.3812 euros per share on 2020 earnings (+118%). This dividend was paid on July, 7th.

SALES BY REGION (%)	OPERATING REVENUE BY
	BUSINESS UNIT (€Mn)

40%

180,2

60%

283,3

Spain International		Specialty Pharma CMO

OUTLOOK

For 2022, ROVI expects a mid-single-digit growth rate for the operating revenue.

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In July 2021, ROVI upgraded its operating revenue guidance for the full year 2021 from the higher end of the 20% to 30% range to the range between 35% and 40%. With the visibility that the Company has at this moment, ROVI is upgrading again its 2021 operating revenue guidance from the range between 35% and 40% to the 40% and 45% range.

SHARE BUYBACK PROGRAM

Today, ROVI has informed the market that, effective as of this date, 3 November 2021, a share buyback program (the "Buyback Program") will commence, in accordance with the following terms (see further information on pages 25-26):

1. Purpose and scope: the Buyback Program's purpose is to redeem own shares of ROVI (share capital reduction) while, at the same time, increasing the remuneration of ROVI's shareholders by raising earnings per share.
2. Term: from today, 3 November 2021, for a twelve-month period.
3. Maximum monetary amount: up to 125,000,000 euros.
4. Maximum number of shares to be acquired: 1,682,000 shares of the Company, representing approximately 3% of the Company's share capital.

Juan López-Belmonte Encina, Chairman and Chief Executive Officer of ROVI, said "At the time of presenting these results, it has been over a year and a half since the WHO declared the COVID-19pandemic in March 2020. Since then, all our efforts have been directed towards protecting our employees and ensuring that patients who needed our medicines had them and were not affected by global lockdowns. Fortunately, it seems that in 2021 we are starting to see the light at the end of the tunnel thanks to the development of COVID-19vaccines. One of those vaccines is the Moderna vaccine, in which ROVI is currently involved regarding its fill and finish. Mass vaccination programs are already in progress all around the

globe and we are very proud for our work to contribute to this historic moment. Regarding ROVI's 2021 first nine months results, we achieved 53% operating revenue growth, mainly driven by the strength of the contract manufacturing organization ("CMO") business, which grew by 187% and by the specialty pharmaceutical business, where sales rose 18%. We forecast continued growth thanks to our flagship product, Bemiparin, which grew by 13%. Likewise, we are already marketing our enoxaparin biosimilar in 28 countries in the first nine months of 2021 and its sales increased 17%. We are in a phase of international expansion and our enoxaparin biosimilar will enable us

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