Recordati : 2021 Q1 Results2021 - 2023 Strategy and Outlook Update

2021 Q1 Results

2021 - 2023 Strategy and Outlook Update

Milano, 6 May 2021

Agenda

1. Company overview and strategy
2. First quarter 2021 results
3. Drivers of organic growth - key assumptions
4. Further growth opportunities through BD and R&D
5. Financial projections

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Recordati Today - Summary Overview

Business Overview

Recordati Snapshot - FY 2020

International specialty pharmaceutical group:

• Well diversified footprint
• Strong vertical integration

Specialty and Primary Care Division (78% sales):

• Prescription products: well-established, branded portfolio of prescription drugs focused on core therapeutic areas across cardiovascular, urology, gastrointestinal and central nervous system (57% sales)
• OTC: marketing of branded OTC products primarily in Europe (18% sales)
• Chemicals: production of active pharmaceutical ingredients ("API") sold to third party pharmaceutical companies (3% sales)
• Direct operations in all European markets, in Russia and C.I.S., Turkey and North Africa

€1.45bn	€569m	€355m	~150	> 4,300
Net
EBITDA(1)	Net Income	Markets	Employees
Revenue
Specialty & Primary Care	Rare Disease
•	€1,129.5m Revenue	•	€319.4m Revenue
•	EBITDA margin 37.3%	•	EBITDA margin 46.4%
•	EBIT margin 30.9%	•	EBIT margin 37.5%

Rare Diseases Division (22% sales):

• Treatments for rare diseases, particularly metabolic deficiencies and rare endocrine conditions of a genetic origin
• Active product development pipeline
• Worldwide business (US, EMEA and RoW)

8 manufacturing facilities (of which 2 API production sites) and a specialised packaging and distribution facility dedicated to rare diseases

• Pharma Production in Italy, Turkey, France, Tunisia, Spain, and Czech Republic
• API Manufacturing in Ireland and Italy

By Geography (2)	By Therapeutic Area (2)
	Other
North	international		Cardiovascular
sales 14.4%		31.3%
Africa			Italy 19.0%		Gastro & metabolism
2.9%
Other W.					23.2%
Europe 6.5%			France
CEE 6.5%			10.3%
Portugal			Germany	Other 13.3%	Genito-urinary
		11.2%
3.1%			9.7%
			Central nervous
Turkey
		Russia, other CIS	system 4.2%	Respiratory 6.2%
5.7%
Spain	U.S.A.	and Ukraine	Endo *	Musculoskeletal
	6.0%	7.2%	6.2%
	8.7%	4.4%

(1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill,

3 and non-recurring items. (2) Breakdown based on pharmaceutical sales; * Endo 2020 includes direct Recordati sales only (net margin transfer from Novartis excluded) Based on FY 2020 reported financials

We have a proven and sustainable Business Model…

Well Diversified Revenue Base

Pursue Accretive and Growth Deals

• Strong M&A track record of product and corporate acquisitions as well as licensing to complement portfolio
• Disciplined approach, with focus on long term value creation (mix of growth and accretive deals)

Minimize development risk

• Selective R&D investments with majority of net revenue coming from mature products and products sourced externally via licensing and BD

• Very broad portfolio and diversified footprint minimizes exposure to single product/ market combination
• Limited exposure to single reimbursement systems

Focus on Volume-Led Growth

• Organic growth primarily fueled by volume-

driven growth rather than price

• Good exposure to markets with positive growth outlook (Turkey, Russia, North Africa)

Carefully manage LOEs

• Proven successful strategy of stabilising key products post LOE, through active promotion

• No major LOE exposure over the next 5 years

	Control Supply
	• Fully vertical integrated platform from API
	to sale for key products, driving margin and
	protecting the supply chain
4	• c.60% of volumes manufactured by
Recordati plants

…that has delivered consistent growth and margin improvement

Sales and profitability driven by organic growth and successful BD

(million Euro)

				CAGR (10-20): +7%		1,482	1,449
				1,352
					1,288
					1,154
				1,048
			942	987				39%
						37%	37%
		828			35%
	762
728			30%	32%
				28%
25%	25%	23%	24%

2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
					Net revenue		EBITDA %

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