Recordati : May 2020 - Company presentation

An International Specialty Pharmaceutical Group

MAY 2020

Company profile

Recordati today

An international specialty pharmaceutical group (€ 1,481.8 million sales in 2019 and > 4,300 employees)

Specialty & Primary care 83% of revenue

• Recordati is an important European player in specialty & primary care and OTC and a partner of choice for new product licenses
• Operations in the main European markets, in Russia, Poland and other Central and Eastern European countries, Turkey and in North Africa. Proprietary drugs sold worldwide either directly or through licensees

Drugs for the treatment of rare diseases 17% of revenue

• A global presence and a preferred partner
• A richer product development pipeline prioritizing treatments for unmet medical needs

2019 Group financial highlights

• Revenue € 1,481.8 million, up 9.6%
• EBITDA(1) € 544.0 million or 36.7% of sales, up 9.0%
• Operating income (EBIT) € 465.3 million or 31.4% of sales, up 5.2%
• Adjusted Net income(2) € 383.0 million or 25.8% of sales, up 10.8%
• Net debt € 902.7 million (pro-forma Net debt/EBITDA 1.5 - 1.6 x)

1. Net income before financial (income) expense, provision for taxes, depreciation, amortization and write down of property, plant and equipment, intangible assets and goodwill, and non-recurring items.
2. Net income excluding amortization and write-down of intangible assets (except software) and goodwill, and non-recurring items, net of tax effects.

2

Company profile

A history of growth, geographical expansion and business diversification

• A mainly Italian company until the end of the nineties
• International expansion strategy started in earnest in 1999
• Expansion through organic development and through acquisitions
• Progressive coverage of Western Europe, Central and Eastern Europe and other areas around the Mediterranean mainly through the acquisition of existing pharmaceutical companies
• Entry into the rare diseases segment following the acquisition of Orphan Europe end 2007
• Worldwide development of the rare diseases business ongoing

Specialty & Primary care 82% of revenue*

77% of EBITDA* Focus on Europe

Treatments for rare diseases
18% of revenue*
23% of EBITDA*	*Revenue and EBITDA percentages
A worldwide business	are those in the first quarter of 2020

3

Company strategy

Group Objectives

Continuation of successful strategy

Steady organic growth from well diversified portfolio

Enhanced by accretive or strategic acquisitions in both SPC & Rare Diseases

Specialty & Primary Care

• Maintain steady volume-led growth from cash generative core products
• Reinforce current geographical footprint to remain a partner of choice
• Leverage additional new products on current organization
• Reinvest cash flow into accretive acquisitions

Rare Diseases

• Continue developing the existing portfolio of global brands
• Consolidation of Latin American and Asia/Pacific presence
• Launch new products / indications - Signifor®, Signifor® LAR, Isturisa®, Cystadrops® and Ledaga®
• Progress current R&D pipeline
• Invest in targeted BD and M&A to reinforce global portfolio

Exposure to Positive Macro Trends

Aging populations fuelling higher healthcare expenditure and greater prevalence of chronic disease Recordati portfolio weighted towards age-related diseases: cardiology, urology, gastrointestinal… Emerging market exposure driving strong local currency growth: Turkey, Russia, CEE and CIS

Significant unmet need remaining in Rare Diseases, with c.500 approved drugs to date vs. > 6,000 designated rare diseases1

4	1 Source: Third-party consulting firm

Geographical breakdown of pharmaceutical* revenue

Other international sales 14.6%

(sales to licensees, exports, sales in ROW)

North Africa 2.9%

Other W. Europe 5.9%

Other CEE 6.7%

Portugal 3.1%

Spain 6.0%

Turkey 6.6%

U.S.A. 7.6%

Data: First quarter 2020

Pharmaceutical revenue € 417.4 m

Italy 18.8%

France 9.9%

Germany 9.4%

Russia, other CIS and

Ukraine 8.5%

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* excludes Pharmaceutical chemical revenue of € 11.8 m

A diversified product portfolio

Other corporate products 13.4%

(excluding OTC)

Seloken®/Logimax® 7.1%

Livazo® 3.9%

Urorec® 6.3%

Zanipress® 3.5%

Zanidip® 9.5%

Pharmaceutical chemicals 2.7%

Other revenue 0.6%

Data: First quarter 2020

Total revenue € 429.2 m

Drugs for rare diseases 18.0%

OTC 19.2%

Subsidiaries' local product portfolios 15.8%

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Core corporate products

Our lercanidipine franchise. Lercanidipine is a proprietary latest generation calcium channel blocker indicated for the treatment of hypertension. Patent expired at the beginning of 2010. Zanidip® (lercanidipine) CAGR 2014-2019 +4.2%.

Zanipress® (lercanidipine+enalapril) Exclusivity expired in main European markets in 2016. Impact of generic competition at end 2019 is of around 15%.

Highly selective α1A receptor antagonist indicated for the treatment of symptoms associated with benign prostatic hyperplasia (BPH). Fast onset of action. High efficacy. Very good cardiovascular safety.

Generic versions entered the market beginning 2020. Impact of generic competition mainly in France, Italy and Spain. Detailing to physicians to continue in promotion sensitive markets post loss of exclusivity to partially mitigate the impact of generic entry. Lower impact on profits than on sales.

Metoprolol succinate is a beta-blocker mainly indicated for the control of a range of conditions including of hypertension, angina pectoris, disturbances of cardiac rhythm, maintenance treatment after myocardial infarction, and functional heart disorders with palpitations.

Logimax® is a fixed combination of metoprolol succinate and felodipine, a calcium channel blocker indicated for the treatment of hypertension.

Livazo® is a potent LDL-lowering drug with a consistent and progressive HDL-raising effect. It is only minimally metabolized through a CYP pathway thereby reducing the risk of drug-drug interactions and providing a clear benefit in patients receiving polypharmacy.

Generic versions expected August 2020. Impact from generic competition expected mainly in Spain and Portugal. Detailing to physicians to continue in promotion sensitive markets post loss of exclusivity to mitigate impact of generics entry.

Reagila® indicated for the treatment of schizophrenia. An orally active and potent dopamine D3/D2 receptor partial agonist with preferential binding to D3 receptors and partial agonist at serotonin 5-HT1A receptors. Clinical data shows superior efficacy in the treatment of the negative symptoms of schizophrenia.

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OTC business

Over the counter (OTC) products

Accounts for 19% of sales

Corporate brands generate 41% of OTC sales. Key brands: Procto-Glyvenol®, Hexaspray®, Casenlax®, Lacdigest®

Leading local brands: Magnesio Supremo® and Reuflor® (Italy), Gynkor® and Alodont® (France), Mirfulan® (Germany) Life-cycle management of key brands

An opportunity to be further developed in all European markets Opportunities for cross-selling existing products to be identified and pursued Growth over the plan period expected to be mid to high single digit

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Treatments for rare diseases

Treatments for rare diseases - A worldwide business

Large market potential: > 7,000 rare diseases identified for which approved treatments exist for fewer than 10%. Progressive country introduction of rare disease plans and access to diagnostic tests will stimulate the market for orphan drugs.

Sales of drugs for rare diseases in 2019 total € 249.9 million, +16.3%. Double digit annual growth expected.

Ledaga® launched in 2019, sales of Juxtapid® in Japan added in 2019, approval of organic acidemias indication for Carbaglu® in the U.S. and approval and launch of Cystadrops® in the U.S. expected 2020/2021

Acquisition of Signifor®, Signifor® LAR and Isturisa® from Novartis in 2019. Isturisa® now approved in Europe for Cushing's syndrome and approved and launched in the U.S.A. for Cushing's disease.

R&D in rare diseases a priority to generate future growth. Pipeline includes a number of new very promising development programs and others are under evaluation.

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Treatments for rare diseases - existing portfolio

NORMOSANG® (EU-RoW) /PANHEMATIN® (US) (human haemin), used to treat acute attacks of hepatic porphyria

CARBAGLU® (carglumic acid), indicated in the treatment of hyperammonaemia due to NAGS deficiency and to the main organic acidemias

SIGNIFOR®/SIGNIFOR® LAR (pasireotide), used in the treatment of Cushing's disease and acromegaly

ISTURISA® (osilodrostat), used in the treatment of Cushing's syndrome/disease

COSMEGEN® (dactinomycin), used mainly in the treatment of three rare cancers, Wilms' tumor, childhood rhabdomyosarcoma and choriocarcinoma.

CYSTADANE® (betaine anhydrous), indicated in the treatment of homocystinuria

CYSTADROPS® (cysteamine), indicated in the treatment of corneal cysteine deposits in cystinosis

CYSTAGON® (cysteamine), indicated in the treatment of nephropathic cystinosis

JUXTAPID® (lomitapide) is a microsomal triglyceride transfer protein inhibitor currently approved for the treatment of homozygous familial hypercholesterolemia (HoFH), available in Japan.

LEDAGA® (chlormethine hydrochloride) is a novel gel formulation, applied once a day, indicated for the topical treatment of mycosis fungoides-type cutaneous T-cell lymphoma (MF-CTCL), a rare disease characterized by the abnormal accumulation of malignant T-cells in the skin.

PEDEA® (EU-RoW)/NEOPROFEN® (US) (ibuprofen I.V.), indicated in the treatment of patent ductus arteriosus

VEDROP® (water soluble vitamin E), indicated in the treatment of vitamin E deficiency in pediatric patients suffering from congenital chronic cholestasis

WILZIN® (zinc acetate), indicated in the treatment of Wilson's disease

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Signifor®, Signifor® LAR and Isturisa®

Recordati Rare Diseases reinforcingits worldwide organization to enhance commercial reach and expertise in endocrinology

Acquisition from Novartis of worldwide rights to Signifor®, Signifor® LAR and Isturisa®. Transaction closed 23 October 2019. Upfront cash consideration of $ 390 million. Regulatory milestones, in addition to royalties on net sales contingent upon approval and market access of Isturisa®.

Leading commercialization platform established:

• Dedicated office set up in Basel (Switzerland) to lead all clinical, regulatory, supply chain, medical affairs and commercial aspects related to our new endocrinology franchise
• Endocrinology unit with specialized leadership team created in US to:
• • ensure optimization of Signifor® and Signifor® LAR utilization in acromegaly and Cushing's disease
  • Ensure successful launch of Isturisa® in Cushing's disease
• Ramp up of organisation in EU and ROW with experienced staff to assure appropriate focus on endocrinology franchise
• Globally more than 70 headcounts being added to the Recordati Rare Diseases structure

Isturisa® approved in EU as a new therapeutic option for patients with

Cushing's syndrome and in the U.S. for patients with Cushing's disease

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Signifor® and Signifor LAR®, an opportunity for continuous growth across the globe

Ex-factory net sales: +4% vs PY*

*as communicated by Novartis

• Injectable somatostatin analogue for the treatment of Cushing's disease and acromegaly. IP protection until 2026. Orphan drug designation in the US and Europe.
• Peak sales of more than $ 100 million
• In 2019 Signifor® franchise continued to grow (+4%) in almost all key markets
• Re-launchactivities of Signifor® LAR ongoing with focus on US, as limited Novartis resources deployed as of early 2017
• More than 70% of overall sales stem from the LAR formulation
• • Strong switch from subcutaneous to LAR formulation in Cushing's Disease, showing increase in adoption
  • Strong Signifor® LAR uptake in acromegaly
  • Evaluating opportunities in new geographies
• marketing authorization transferred in February in US, in April in Japan and expected May in EU
• Other key markets to follow in Q2 2020
• Estimated in market Q1 Sales +6% vs 2019 on a like-for-like basis

Signifor® sc approved in CD in 2012 ( EU & US, registered WW in > 60 markets)

Signifor® LAR approved in acromegaly in Nov and Dec 2014 ( EU and US respectively)

Signifor® LAR approved in CD in Sep 2017/ Jun 18 ( EU and US respectively)

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Approved in EU and in the U.S. as a new therapeutic option for patients with Cushing's syndrome and Cushing's disease respectively

Change of mUFC in individual patients during the randomized withdrawal period

Study Conclusion: Osilodrostat w as significantly superior to placebo at maintaining mUFC ≤ULN after randomized w ithdrawal and normalized mUFC in tw o-thirds of enrolled patients at W48, w ith few patients discontinuing treatment because of AEs. This randomized w ithdrawal study demonstrates osilodrostat to be a highly effective treatment for CD, w ith good tolerability.*

Both the European Commission and the FDA granted marketing authorization for Isturisa® (osilodrostat), indicated for the treatment of endogenous Cushing's syndrome and Cushing's disease in adults, respectively.

• Data generated by the clinical program show that Isturisa® leads to biochemical control (normal cortisol levels) in the majority of patients, as well as improvement in multiple clinical features of the disease and in QoL measurements.
• In LINC-3 (phase 3, multicentre, double - blind, randomized withdrawal study), a significantly higher proportion of patients in the osilodrostat arm maintained normal mUFC response at the end of the 8-week randomised withdrawal period (week 34) versus placebo (86.1% vs 29.4%).
• The European Commission and the FDA confirmed the Orphan status of Isturisa®.
• Patient assistance programs and agreement with specialty pharmacy implemented in the US. Launch slated for June-July
• Launch in selected EU markets starting in Q3
• Filed in Japan
• IP protection until 2031
• Potential peak sales materially above $ 100 million

*J Endocr Soc. 2019 Apr 15; 3(Suppl 1): OR16-2. Mufc = mean uringry free cortisol; RR = response rate; ULN = uppoer limit of normal

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Research and Development

Specialty and Primary Care

Focus on the development of products in specialty care areas on a European basis.

Life-cycle management and indication expansion activities.

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Treatments for rare diseases

Advance projects in current development pipeline

Identify and add new development projects to the pipeline

Global approach for the development of treatments for rare diseases

Internal new product development, life-cycle management and indication expansion

A well balanced product pipeline

NAME

methadone

CARBAGLU® (carglumic acid)

CYSTADROPS®

(cysteamine)

ISTURISA®

(osilodrostat)

REC 0551

REC 0559/MT8

ORIGINATOR

Recordati

Recordati

Novartis/Recordati

Recordati/Meyer Hospital (Florence)

Recordati/MimeTech

INDICATION

Treatment of cancer-related pain in cases of resistance or intolerance to opioids

Hyperammonaemia due to NAGS deficiency and to the main organic acidemias

Treatment of corneal cysteine deposits in cystinosis

Endogenous Cushing's syndrome

Retinopathy of Prematurity (ROP)

Low molecular weight non-peptidic nerve growth factor (NGF) mimetic in development for the treatment of neurotrophic keratitis

DEVELOPMENT STATUS

Approved in France

Development of new formulation in EU and USA

Filed in USA for the organic acidemias indication

Approved and marketed in EU Filed in USA

Approved in EU

Approved and launched in USA

Phase II

Phase II

Orphan drug designation granted in the EU and by the FDA

Formulation development,

REC 0545

Recordati/AP-HP

Acute decompensation episodes in MSUD

clinical development ongoing Orphan drug designation granted in the EU

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First quarter 2020 highlights

• Exceptional organisation responsiveness to deal with effects of unprecedented crisis, safeguarding employees and assuring continuity of supply
• Very strong financial results, reflecting underlying performance in line with plan and incremental revenue driven by customers' stockpiling at start of COVID-19 lockdowns:
• • Revenue € 429.2 million, +12.1%, includes € 14.7 million contributed by Signifor® and Signifor® LAR
  • EBITDA(1) € 172.9 million or 40.3% of sales, +20.1%
  • Net Income € 111.2 million or 25.9% of sales, + 20.7%
  • Adjusted Net Income(2) € 125.2 million or 29.2% of sales, + 23.5%
• Results reflect an estimated € 20 million revenue (€ 13 million operating profit) from extra stocking in the channel, expected to be reabsorbed in Q2. € 2 million non-recurringCOVID-19 costs recorded
• Net debt at € 880.8 million, compared to net debt of € 902.7 million at 31 December 2019, reflecting strong cash flow, milestone payment of $20 million for EU Isturisa® approval and net share repurchases for € 44.0 million
• Approval with orphan drug status obtained in the EU and in the US for the marketing of Isturisa® (osilodrostat) in January and March 2020 respectively, with marketing authorisations now transferred. Filing of Isturisa® New Drug Application in Japan

1. Net income before financial(income) expense, provision for taxes, depreciation, amortizationand write down of property, plant and equipment, intangible assets and goodwill, and non-recurring items.

16 (2) Net income excluding amortization andwrite-downof intangible assets (except software) andgoodwill, and non-recurring items, net of tax effects.

Recordati contingency planning to counter impact of COVID-19 epidemiological emergency

Safe environment for our employees

• Implementation of measures to protect individuals and to prevent infection diffusion (home-working, sanitization, DPIs use, social distance etc.)
• New working models in all manufacturing plants to support distancing measures
• • Revision of working time and re-distribution of people in Turkey, Italy and Tunisia
  • Two-shiftmodel in France (Nanterre)
  • Week-endshifts introduction in France (Montluçon) and Spain

Supply chain continuity for all our

businesses in all markets

• Alternative supply flow for starting materials and intermediates to feed Recordati's API plants, both for captive and merchant portfolios
• Stock management tuning both for APIs and FDFs (Finished Dosage Forms)
• Stock delocalization for FDFs
• Alternative FDF supply flows
• Planning and production programmes revision for FDFs both in Recordati's and CMOs' plants
• Alternative logistic and distribution models

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Main product sales

Corporate products including drugs for rare diseases account for 69.6% of revenue

(million Euro)	1Q 2020		1Q 2019		Change %
Zanidip® (lercanidipine)	40.7		37.4		8.7
Zanipress® (lercanidipine+enalapril)	14.9		14.2		4.6
Urorec® (silodosin)	27.1		27.8		(2.8)
Livazo® (pitavastatin)	16.6		13.2		26.1
Seloken®/Seloken® ZOK/Logimax®	30.3		23.0		31.6
(metoprolol/metoprolol+felodipine)
Other corporate products (1)	91.8		79.7		15.1
Drugs for rare diseases	77.5		56.2		37.9

1. Include the OTC corporate products for an amount of € 34.2 million in 2020 and € 31.1 million in 2019 (+10.0%)
2. Includes revenue related to Signifor® and Signifor® LAR of € 14.7 million in 1Q 2020 and none in 1Q 2019

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Composition of revenue by geography

(million Euro)	1Q 2020		1Q 2019		Change %
Italy	78.6		80.2		(2.0)
France	41.3		37.9		8.9
Germany	39.1		36.1		8.4
Russia, other CIS countries and Ukraine	35.3		28.3		24.7
U.S.A.	31.9		26.3		21.1
Turkey	27.5		22.0		25.0
Spain	25.0		22.8		9.5
Portugal	13.1		11.0		18.7
Other CEE countries	28.1		19.5		44.1
Other W. Europe countries	24.6		17.3		42.3
North Africa	12.0		11.4		5.4
Other international sales	61.0		58.4		4.4
TOTAL PHARMACEUTICALS (1)	417.4		371.3		12.4
(In local currency, millions)	1Q 2020		1Q 2019		Change %
Russia (RUB) (2)	2,041.6		1,695.0		20.5
Turkey (TRY) (2)	176.3		128.5		37.2
U.S.A. (USD)	35.2		29.9		17.6

1. Both years include sales as well as other income and exclude sales of pharmaceutical chemicals for an amount of € 11.8 million in 1Q 2020 and € 11.7 million in 1Q 2019 (+0.6%)
2. Net revenues in local currency in Russia and in Turkey exclude sales of products for rare diseases.

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First quarter 2020 results

(million Euro)	1Q 2020		1Q 2019		Change %
Revenue	429.2		383.0		12.1
Gross Profit	303.7		266.5		14.0
as % of revenue	70.8		69.6
SG&A Expenses	118.2		111.8		5.7
as % of revenue	27.6		29.2
R&D Expenses	34.9		29.2		19.8
as % of revenue	8.1		7.6
Other Income (Expense), net	(2.1)		0.5		n.s.
as % of revenue	(0.5)		0.1
Operating Income	148.4		126.0		17.8
as % of revenue	34.6		32.9
Net Income	111.2		92.1		20.7
as % of revenue	25.9		24.1
Adjusted Net Income (1)	125.2		101.4		23.5
as % of revenue	29.2		26.5
EBITDA (2)	172.9		143.9		20.1
as % of revenue	40.3		37.6

1. Net income excluding amortization and write-down of intangible assets (except software) and goodwill, and non- recurring items, net of tax effects.

20 (2) Net income before financial (income) expense, provision for taxes, depreciation, amortization and write down of property, plant and equipment, intangible assets and goodwill, and non-recurring items.

First quarter 2020 - alternative performance measures: redefinition of EBITDA and introduction of Adjusted Net Income

• Given the growing amount of intangible assets on the Group's balance sheet, in order to provide information in line with best practice in the sector and to allow comparability with other players, our report has been extended to include an additional performance measure, adjusted net income, which adjusts reported Net Income for the following items and their tax effect:

• Amortization and impairment of intangible assets (excluding software) and impairment of goodwill.

• Non-recurring

•	A reconciliation between reported Net Income and Adjusted Net Income for 2019 and 2020 target is provided in
	the table below
		1Q 2020		1Q 2019		FY 2020		FY 2019
	(million Euro)			Target
	Net income	111.2		92.1		360 - 370		368.9
	Amortization and write-down of intangible assets (excl.	15.9		12.0		64		53.2
	software)
	(3.4)
	Tax effect		(2.7)		(16)		(12.1)
	Non-recurring items	2.0		0		0		(27.0)
	Tax effect	(0.5)		0		0		0
	ADJUSTED NET INCOME	125.2		101.4		408 - 418		383.0

• The definition of EBITDA will also be amended to also exclude non recurring items
• Non-recurringitems in Q1 2020 were limited to € 2 million of costs related to COVID-19 crisis, being mainly donations; no non recurring items were recorded in Q1 2019
• Non-recurringitems in FY 2019 relate to the "patent box" tax benefit of € 27.0 million for the period 2015-2018

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First quarter 2020 results

Operating Segments

EBIT

Treatments for rare diseases 22.9%

Revenue

Treatments for rare diseases 18.0%

EBITDA

Treatments for rare diseases 23.0%

Specialty & primary

care 82.0%

Specialty & primary care 77.1%

		Specialty & primary
Margin on sales:
	care 77.0%
Treatments for rare diseases: EBITDA 51.3%, EBIT 43.9%
Specialty & primary care:	EBITDA 37.9%, EBIT 32.5%
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Net financial position

Net debt reduced by € 22 million vs Dec 2019, reflecting strong cash flow, net share repurchases for € 44.0 million and milestone payment of $ 20 million for EU Isturisa® approval

(million Euro)	31 Mar 2020		31 Dec 2019		Change
Cash and short-term financial investments	196.1		187.9		8.2
Bank overdrafts and short-term loans	(9.2)		(13.4)		4.2
Loans and leases - due within one year*	(145.5)		(149.8)		4.3
Loans and leases - due after one year*	(922.2)		(927.4)		5.2
NET FINANCIAL POSITION	(880.8)		(902.7)		21.9

* Includes change in fair value of the relative currency risk hedging instruments (cash flow hedge)

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Full year 2020 outlook

	2020 target assumptions		Current view
•	Mid single digit Net Revenue growth	•	Net Revenue likely to be slightly below guidance
			range, due to:
			• FX headwind of roughly -1%
			• Impact on Q2-Q3 demand in markets most
			affected by COVID-19 lockdowns
•	Signifor®, Signifor® LAR and initial sales of	• Signifor®, Signifor® LAR and Isturisa® target
	Isturisa® in Europe contributing net		unchanged; early Isturisa® US sales off-set slight delay
	revenue of around € 70 million*		in EU MA transfer on Signifor® and Signifor® LAR
•	Additional investment to maximise	•	€ 5-6 million incremental investment in US behind
	opportunity of new Endocrinology		early US Isturisa® launch (and € 3 million incremental
	franchise in both EU and US		amortization charge)
•	Slight improvement in EBITDA margin due	•	EBITDA margin improvement on track, net of non-
	to product/ country mix and stable		recurring COVID-19 costs (€ 6-8 million, mostly
	operating income margin		donations)
•	Tax rate to be of around 23 - 24%	• No change re tax assumptions

Expect EBITDA and Adjusted Net Income near lower end of range despite headwind

24 * Only margins on sales of Signifor® and Signifor® LAR booked until marketing authorizations are transferred from Novartis to Recordati.

The Recordati share

The Recordati share (ticker REC, Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271) has been listed on the Italian Stock Exchange since 1984. It belongs to the FTSE MIB, the FTSE IT Health Care and the STOXX Europe 600, Health Care, MSCI indexes.

Share capital consists of 209,125,156 ordinary (common) shares with a par value of € 0.125 each.

2018 EPS (diluted): € 1.494

2019 EPS (diluted): € 1.764

2019 dividend per share: € 1.00

Dividend pay-out ratio: ±60% of group net income

Ownership:

Institutional 40.7%

(Italian institutional: 2.9%

Foreign institutional: 37.8%

US institutional: 13.1%)

Retail 5.3%

Treasury stock

2.2%

Consortium of investment funds controlled by CVC Capital Partners 51.8%

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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 Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.

Statements contained in this presentation, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements.

All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.

Recordati, established in 1926, is an international pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), with a total staff of more than 4,300, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered in Milan, Italy, Recordati has operations throughout the whole of Europe, including Russia, Turkey, North Africa, the United States of America, Canada, Mexico, some South American countries, Japan and Australia. An efficient field force of medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati is a partner of choice for new product licenses for its territories. Recordati is committed to the research and development of new specialties with a focus on treatments for rare diseases. Consolidated revenue for 2019 was € 1,481.8 million, operating income was € 465.3 million and net income was € 368.9 million.

Contact Information
Offices:	Investor Relations:	Website:
Recordati S.p.A.	Marianne Tatschke	www.recordati.com
Via M. Civitali 1	[phone]
20148 Milano, Italy	[e-mail]

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