Recordati : Presentation

RECORDATI: BEST IN CLASS VALUE CREATOR

February 2024

AGENDA

Recordati strategy and value proposition

Full Year 2023 preliminary results and FY 2024 guidance

• Appendix

2

UNIQUE AND DIVERSIFIED GLOBAL PLAYER IN RARE DISEASES AND EUROPEAN PARTNER OF CHOICE IN SPECIALTY PHARMA

RECORDATI IN NUMBERS - FY 2023

EMPLOYEES1MARKETS1

> 4,300

~150

REVENUEEBITDA3

€ 2,082.3	€ 769.6
+12.4% vs PY	margin at 37%
+14.0% LFL2 at CER

ADJ. NET INCOME 4LEVERAGE5

€ 524.6	~ 1.96x EBITDA
margin at 25.2%

ESG RECOGNITION

Specialty &

Primary Care

66% of Revenue

EBITDA margin 34.2%

Rare

Diseases

34% of Revenue

EBITDA margin 42.3%

1)FY 2022 figures
2)	Pro-forma growth calculated excluding FY 2023 revenue of Avodart® and Combodart®/ Duodart®(SPC) and adding Q1 2022 revenue of EUSA Pharma (RRD)
3)Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory	3
according to IFRS 3
4)	Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3) and monetary net gains/losses from hyperinflation (IAS 29), net of
tax effects
5)	Pro-forma considering the contribution of Avodart® and Combodart®/Duodart® for the last twelve months

DELIVERING ANOTHER YEAR OF STRONG FINANCIAL RESULTS, WITH AVERAGE ROIC1 OF 15-20% OVER LAST DECADE

Group Revenue 2013-2025 - actual and guidance

million Euro							CAGR								> 2,4004
										+8.3%					2,260 -2,320
															2,082
														1,853
											1,482	1,449	1,580
									1,288	1,352
								1,154
						987	1,048
				942
	RRD
	SPC2
				2013	2014	2015	2016	2017	2018	2019	2020 *	2021	2022	2023	2024	2025
Actual vs Mid-	+2%	-1%	+5%	+6%	+6%	-1%	+3%	-7%	-1%	+6%	+4%
point of guidance
range% 3
*2020 figures impacted by LOE on silodosin and on pitavastatin (and COVID-19 pandemic)
1) Return on invested capital avg. 2013-2023, source Bloomberg, Factset estimates and Company elaborations										4
2) Including Chemical Division
3) Delta calculated on actual FY Revenues vs mid-point of Revenue guidance range given at the beginning of the year (February)

4) On track to exceed the 2025 targets set in February 2023, with current portfolio alone (including sales of Avodart® and Combodart®/Duodart®) now expected to deliver Revenue in excess of € 2.4 billion in 2025, sustaining an EBITDA margin of +/- 37%

PROVEN AND SUSTAINABLE BUSINESS MODEL

Unique combination of resilient and cash flow generative branded Specialty & Primary Care business (RX, OTC) alongside a high growth global Rare disease business (US now Group's largest unit)

Best-in-class financial profile with consistent track record of growth at scale

Strong franchises with no material loss of exclusivity exposure

Disciplined R&D focused on targeted late stage rare disease programs

Proven M&A and integration capabilities to complement organic growth

World class management team with strong track record of delivering profitable growth, in line with plans

5

THREE DRIVERS OF GROWTH

1	2	TARGETED	3
	ORGANIC	BD / M&A
	INNOVATION

SPECIALTY	Branded portfolio of flagship RX /				Acquisition and licensing of
&	OTC products​,driven by focused		Line extensions on key OTC		European mature promotion-
promotion and positive underlying			sensitive products and near
PRIMARY		brands
industry trends, with resilient			market opportunities with focus on
CARE
pricing				Cardio, Uro, Gastro
					Acquisitions and partnerships with
RARE	Market penetration driven by	Targeted clinical opportunities	global/local scope focused on near
increasing diagnosis rates and	which we believe we can turn into	market products, also exploring
DISEASES
geographic expansion	commercial success	opportunities post proof of

concept

6

THE EUROPEAN PARTNER OF CHOICE

Specialty & Primary Care

Strong organic growth ahead of relevant markets…

Pharmaceutical Revenue1 FY 2023 vs FY 2022

million Euro

		+8.7%
		+13.6% LFL2 at CER
		1,313.6
1,208.6	+ 3.8%
		365.2
351.8

Cardiovascular	227.4	280.4	+ 23.3%
Urology
203.2	219.3	+ 7.9%
Gastrointestinal
Cough and Cold	125.5	137.1	+ 9.3%
Other
pharmaceuticals	300.6	311.6	+ 3.7%
		FY 2022	FY 2023

1)Excluding Chemicals € 54.0 million in FY 2023 and € 48.9 million in FY 2022

1. Pro-formagrowth calculated excluding FY 2023 revenue of Avodart® and Combodart®/ Duodart®(SPC)
2. IQVIA December YTD Evolution Index on promoted and reminder products

…driven by commercial excellence

• Fully integrated regional player with direct presence in 30+ countries, having significant scope and scale with cost effective and competitive commercial capabilities in every market, resulting into market outperformance with promoted portfolio (103% Evolution Index)3
• Go to partner for promotionally sensitive Established Brands and new near market opportunities in core areas of Cardiovascular, Urology and Gastroenterology, with ~1,500 salespeople
• Focus on local and Regional flagship Brands in OTC to drive organic and inorganic profitable growth balancing digital innovation and clinical advocacy
• Portfolio expected to grow organically mid-singledigit at CER, driven by several growth drivers in RX and OTC4 with a stable core of mature brands and negligible LOE risk

7

4) RX 47% and OTC 16% of FY 2023 revenue

A GLOBAL RARE DISEASES BUSINESS

Rare Diseases

Double-digit growth driven by Endo and Onco…

Revenue FY 2023 vs FY 2022
million Euro	+20.0%
	+14.9% LFL2 at CER

…and by patient and physician awareness

• One of the few truly global rare diseases businesses, with direct presence in key geographies: North America, EU, Japan, Australia/NZ, China, Latin America, South Korea

	595.8
	(634.2)2
	38.4
Oncology	136.0
Endocrinology 1

714.7 + 15.2%

2200.9

+ 41.0%

•	Portfolio of >20 Orphan and Ultra-orphan products across three
	therapeutic areas: Metabolic, Endocrinology and Oncology
•	Plans on track for further geographic expansion (LATAM and rest
	of Asia)

Metabolic

171.9

287.9

242.3

271.6

- 5.7%

• Expect to continue delivering double-digitgrowth at CER, driven

by Endocrinology, Oncology and increased international presence

• Exciting pipeline opportunities to enhance growth beyond 2025,

with Isturisa label extension into Cushing Syndrome and

dinutuximab beta in neuroblastoma in US, REC 0559 in

Neurotrophic Keratitis (Ph2) and pasireotide in Post Bariatric

Hypoglycemia (Ph2)

FY 2022

FY 2023

1)	Of which Signifor® and Signifor® LAR of € 102.9 million and Isturisa® of € 139.5 million	8
2)	Pro-forma growth calculated adding Q1 2022 revenue of EUSA Pharma (RRD) of €38.4 million

RARE ENDO AND ONCO PORTFOLIO POSITIONED FOR STRONG

GROWTH IN MID-LONG TERM

ENDOCRINOLOGY

Revenue	~500-550
million Euro
300-340

242

172

127

2021	2022	2023		2025	Peak sales
					(excl. PBH)

	ONCOLOGY
Revenue
million Euro					~250-300
					220-250
				201
		174
152	1	136
		38	1
2021		2022		2023	2025	Peak sales

Key drivers

• Isturisa2 increased patient uptake, leveraging long-term efficacy / safety data and maximizing treatment adherence, with also US label extension to Cushing Syndrome
• Signifor LAR second line medical treatment in Acromegaly
• Potential Peak sales: Isturisa on track to exceed €400 million and
  Signifor/Signifor LAR €100-150 million (excluding PBH)
• Pasireotide ph. II opportunity in Chronic condition in post-bariatric surgical patients (PBH); potential additional peak sales of >€150 million3
• Qarziba improved further penetration in EMEA / LAC and ambition to enter the US market in Relapsed / Refractory High-RiskNeuroblastoma patients
• Improving iMCD diagnosis for Sylvant, ensuring long-term retention
• Potential Peak sales: ~€250-300 million, including Qarziba in US
• Potential new indications opportunities under evaluation for both Qarziba and Sylvant

1)	EUSA Pharma results consolidated as of Q2 2022 in Recordati financials	9
2)	Approved in Europe and internationally for Cushing Syndrome, in US for Cushing Disease only
3) PBH peak sales estimates non-risk adjusted

UPCOMING R&D PIPELINE MILESTONES

PROGRAM

EXPECTED TIMELINE

ONGOING

PROGRAMS

ADDITIONAL

OPPORTUNITIES

Osilodrostat	•	Cushing Syndrome US	FDA meeting end of Q2 2024
(	)
Pasireotide	•	Post-Bariatric Hypoglycaemia (PBH)	Phase 2 enrollment completion by end 2024 / early 2025
Dinutuximab beta	•	High Risk relapsed/refractory Neuroblastoma	Further interactions with FDA in H1 2024
(	)		in US
REC 0559 /	•	Moderate/severe Neurotrophic Keratitis	Phase 2 trial top-line data readout in mid-2024
	MT8*
Dinutuximab beta	•	Ewing sarcoma	Under evaluation
(	)
Siltuximab	•	Cytokine response syndrome (CAR-T patients)	Under evaluation
(	)

	Legend
ENDO	ONCO	META

Filing dates planning estimates, subject to study read outs and regulatory feedback	10
* In-licensed from MimeTech