An International Specialty Pharmaceutical Group

March 2021

Company profile

Recordati today

An international specialty pharmaceutical group (€ 1,448.9 million sales in 2020 and > 4,300 employees)

Specialty & Primary care ~78% 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 ~22% of revenue

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

2020 Group financial highlights

  • Revenue € 1,448.9 million, -2.2% (+0.4% CER)
  • EBITDA(1) € 569.3 million or 39.3% of sales, up
    4.7%
  • Operating income (EBIT) € 469.0 million or 32.4% of sales, up 0.8%
  • Adjusted Net income(2) € 410.4 million or 28.3% of sales, up 7.3%
  • Net debt € 865.8 million (pro-forma Net debt/EBITDA 1.5 - 1.6 x)
  1. Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, and non-recurring items
  2. Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, and non-recurring items, net of tax effects

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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

TREATMENTS FOR RARE DISEASES

22% of revenue* 26% of EBITDA*

A worldwide business

SPECIALTY & PRIMARY CARE

78% of Revenue* 74% of EBITDA*

Focus on Europe

Subsidiaries and direct selling organizations

Countries where Recordati products are sold (under license or export)

Subsidiaries and direct presence of orphan drug representatives

Commercial agreements and direct delivery

*Revenue and EBITDA percentages are those in FY 2020

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

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1 Source: Third-party consulting firm

Geographical breakdown of pharmaceutical* revenue

Other international sales 14.4%

(sales to licensees, exports, sales in ROW)

North Africa 2.9%

Other W. Europe 6.5%

Other CEE 6.5%

Portugal 3.1%

Turkey 5.7%

Spain 6.0%

U.S.A. 8.7%

Italy 19.0%

France 10.3%

Germany 9.7%

Russia, other CIS and

Ukraine 7.2%

* Excluding sales of pharmaceutical chemicals which

are € 48.9 million, up by 6,1% and represent 3.4% of

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total revenue.

Data: Full year 2020

Pharmaceutical revenue (excluding Pharma Chemical) € 1,399.9 m

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Disclaimer

Recordati S.p.A. published this content on 25 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 April 2021 14:47:09 UTC.