Presentation of 2007 Results 15th F e b rua ry 2008 CONT E NT - PowerPoint PPT Presentation

Presentation of 2007 Results 15th F e b rua ry 2008

CONT E NT S 1 | PCAS GROUP 2 | 2007 RE SUL T S 3 | PHARMACE UT ICAL SYNT HE SIS 4 | F INE SPE CIAL IT Y CHE MICAL S 5 | RE SE ARCH & DE VE L OPME NT 6 | OUT L OOK PCAS – F e b rua ry 2008 | 2

1 | PCAS GROUP

PCAS GROUP A c le ar position c e ntr e d on 2 ac tivitie s Phar mac e utic al F ine Spe c iality Synthe sis Che mic a ls Manufacturer of complex, very high-added value molecules, sold around the world and applying leading-edge technology PCAS – F e b rua ry 2008 | 4

PCAS An inte r national Gr oup Site s loc ation 4 Pha rma c e utic a l Synthe sis site s (a ll F DA inspe c te d) 2 po lyva le nt site s (Bo urg o in a nd Co ute rne : I SO 9001) 2 F ine Spe c ia lity Che mic a ls site s (Sa int Je a n I SO 9001) He a dq ua rte r situa te d in L o ng jume a u (ne a r Pa ris) PCAS – F e b rua ry 2008 | 5

PCAS GROUP An inte r national Gr oup Sale s br e ac kdown 2007Ne t Sa le s : 185.3 M€ Othe rs 2.6% Asia- Pac ific 17.0% Franc e 34.3% North Ame ric a 10.3% Europe 35.8% Phar mac e utic al Synthe sis : 109.4M€ F ine Spe c iality Che mic als: 75.9M€ PCAS – F e b rua ry 2008 | 6

PCAS GROUP An e xc e ptional por tfolio of c lie nts Pharmaceutical Synthesis PCAS – F e b rua ry 2008 | 7

PCAS GROUP An e xc e ptional por tfolio of c lie nts Perfumery-Aroma-Cosmetics Performane Chemicals New Technologies PCAS – F e b rua ry 2008 | 8

PCAS GROUP Histor y PCAS c re a te d b y 2 F re nc h e ntre pre ne urs � 1962 PCAS jo ins Sta uffe r Che mic a ls the n Akzo No b e l � 1982 he Dyna c tion Group a c quire s PCAS fo r 8.3 M€ � 1992 T Ac q uisitio n o f Sa int- Je a n Photoc himie ( Que b e c ) � 1993 Introduc tion o n the « se c o nd ma rc hé » o f the Pa ris sto c k e xc ha ng e va luing PCAS a t 23 M€ � 1995 SBS c re a te d, spe c ia lising in the pro duc tio n o f a c role in de riva tive s � 1996 1998 Ac q uisitio n o f Se lo c F ra nc e ( L ima y ) spe c ia lising in Pha rma c e utic a l Synthe sis (no w me rg e d � with PCAS) 1999 Ac q uisitio n o f PCF (Mine ra l Che mic a ls) a nd o f Ve rno la b � 2001 Ac q uisitio n o f E inland a nd o f Cre a pha rm � xpansia, of PCAS F Sa le o f Ve rno la b to the SGS Gro up – 85% purc ha se o f VL G Che m (Sa no fi-Ave ntis ma inta ining � 2004 15% o f the c a pita l) – PCAS Ame r ic a Inc c re a te d 2005 Sa le o f Cre a pha rm � PCAS Biosolution c re a te d – inte re st ta ke n in Pro té us (6%)– Sa le o f a ma jo rity sta ke in PCF to � 2006 ma na g e me nt 2007 I nte re st in Proté us c a pita l inc re a se d to 32% - I nte re st in PCF c a pita l re duc e d to 19.9% � PCAS – F e b rua ry 2008 | 9

PCAS GROUP Shar e holding Capital distribution Source : TPI 31st December 2007 Dyna c ti o n Ma na g e me nt Pub l ic T re a sury sto c ks 1,65% 29,61% 0,95% 67,79% Other information I sin c o de F R 0000053514 – PCA As o f 31st Ja nua ry 2007 : Numb e r o f sha re s 13 003 882 Ma rke t c o mpa rtme nt E uro ne xt C Pric e 4,10 € Ma rke t va lue 53,3 M€ PCAS – F e b rua ry 2008 | 10

PCAS GROUP L e gal str uc tur e St Je an Photoc himie St-Je an/Ric he lie u Site Soc ié té Bé ar naise (Canada) VL G c he m de Synthè se Site de Ville ne uve - la-Gare nne 100 % Mo ure nx Site Site (Hauts de Se ine ) (Pyré né e s Atlantique s) 85 % 100 % (Sano fi Ave ntis 15 %) PCAS SA Phar mac ie Ce ntr ale de F ranc e L o ng jume au (E sso nne ) E xpansia L a Vo ulte / Rhô ne Site Co ute rne (Orne ) Aramo n Site (Ardè c he ) Bo urg o in (I sè re ) (Gard) 19,9 % L imay (Yve line s) 100 % (Manag e me nt 80,1 %) Site s PCAS Biosolution PCAS Ame ric a Inc ( L o ng jume au and de Nîme s site s ) (Sale s Org anisatio n - 50 % USA) (Pro té us 50 %) 100 % 50 % Pr oté us PCAS F inland Oy (Nîme s) T urku Site (F inlande ) 32 % 100 % PCAS – F e b rua ry 2008 | 11

PCAS GROUP Or ganisation c har t Chairman Huma n Re so urc e s Ge ne r al Dir e c tor Pharma c e utic al F ine Spe c iality Synthe sis Che mic als Suppor t F unc tions Sa le s & Ma rke ting Sa le s & Ma rke ting Administr ation Ville ne uve E ur ope Coute rne Pe r for manc e IT & F inanc e L a Gare nne Asie c he mic als Re se ar c h & L ima y Bour g oin- Ja llie u De ve lopme nt Sa le s & Ma rke ting Sa le s & Ma rke ting USA F r agr anc e - Non e xc lusive F lavour s- Cosme tic s Ar amon Moure nx Purc hasing Sa le s & Ma rke ting Quality Assur anc e Sa le s & Ma rke ting T urku USA SJPC Ne w T e c hnologie s Re gulatory Affair s (F INL AND) E xc lusive (CANADA) PCAS – F e b rua ry 2008 | 12 Co mité E xé c utif

2 | 2007 RE SUL T S

2007 RE SUL T S 2007 Signific ant E ve nts Project launch to Major cooperation implement new ERP agreement signed in Interest in Protéus capital software (JD Edwards). the field of organic increased to 32%. 1.7 M€ investment. photovoltaïcs. Possibility to increase to around 50% (BSA). January 2007 June 2007 October 2007 December 2007 1 st January 2008 Interest in PCF capital reduced to New debt structure : 19.9% • 36 M€ loan over 6 years • 20 M€ OBSAR Start up of new ERP software (JD Edwards) PCAS – F e b rua ry 2008 | 14

2007 RE SUL T S All financ ial indic ator s ar e at gr e e n Ne t sale s : Ne t de bt re duc e d fro m 79.0 M€ . + 3.9 % a t 185.3 M€ to 70.1 M€ . + 5.3 % a t a c o nsta nt e xc ha ng e ra te Re sults stro ng ly inc re a sing a nd c o nfo rming to o b je c tive s : Obje c tive s : . E BI T : +51.9 % to 12.0 M€ ROC : 8 % of ne t sale s . E BI T DA : + 22.4 % to 26.8 M€ E BIT DA : 15 % of ne t sa le s PCAS – F e b rua ry 2008 | 15

2007 RE SUL T S 2007 Ne t Sale s + 3.9 % (+ 5.3 % at a constant exchange rate) 185,3 178,3 I n millio ns o f e uro s 2007 2006 185.3 178.3 Ne t sa le s 100 % 100 % 109.4 109.9 Phar mac e utic al Synthe sis 59.1% 61.7% 75.9 68.4 F ine Spe c iality Che mic als 40.9% 38.3% 11% g ro wth in ne t sa le s fo r the F ine Spe c ia lity Che mic a ls po le � Bo o ste d b y the Pe rfume ry-Aro ma -Co sme tic s a nd Pe rfo ma nc e Che mic a ls a c tivitie s � Pha rma c e utic a l Synthe sis po le ’ s ne t sa le s a re sta b le � PCAS – F e b rua ry 2008 | 16

2007 RE SUL T S 2007 E BIT and E BIT DA Greatly increasing profitability – first effects of actions carried out : . margin improvement . cost reduction + 22.4 % + 51.9 % 26,8 21,9 12,0 7,9 EBIT EBITDA PCAS – F e b rua ry 2008 | 17

NE W DE BT ST RUCT URE Re payme nt of 58.8 M€ syndic ate loan � Re payme nt of the 2007 due amount re garding our forme r syndic ate d loan for 4.8 M€ � A ne w syndic a te loa n for 36 M€ ove r 6 ye a rs � An OBSAR issue (Bonds with e quity wa rra nts a tta c he d) for a ne t a mount of 19.3 M€: � - 11.3 % No mina l unit va lue : 600 e uro s � Numb e r o f OBSAR : 33 333 79,0 � Numb e r o f BSAR : 3 333 300 70,1 � E xpiry : 31st De c e mb e r 2012 � I nte re st’ s ra te : 5,25% � Re pa yme nt pric e : 606 e uro s � BSAR e xe rc ise pric e : 6.90 e uro s � BSAR e xe rc ise pe rio d: a t a ny time up to the 31st De c e mb e r 2012 Conforming to c urre ntly e nforc e d IF RS rule s, this hybride de bt inte g ra te s a de bt pa rt a nd a n e quity pa rt whic h rise to 17.6 million e uros a nd 1.3 million e uros (ta king a c c ount de ffe re d ta xe s) a s of 31st De c e mbe r 2007, re spe c tive ly. PCAS – F e b rua ry 2008 | 18

2007 RE SUL T S Ke y F igur e s I n millio ns o f e uro s 2007 2006 2005 Ne t sale s 185.3 178.3 170.6 E BI T DA 26.8 21.9 18.4 c e ntage of ne t sale s as a pe r 14.5 % 12.3% 10.8% EBITDA : + 22.4 % De pre c ia tio n a nd pro visio ns (14.8) (14.0) (14.0) ating inc ome (1) Cur r e nt ope r 12.0 7.9 3.9 as a pe r c e ntage of ne t sale s 6.2 % 4.4% 2.31% ROC : + 51.9 % Othe r o pe ra ting inc o me and e xpe nse s (2) (3.0) (0.8) (0.5) Ne t inte re st e xpe nse o n de b t (4.7) (4.0) (3.9) Ne t pr ofit 2.7 1.2 (2.5) Ne t pr ofit – exc luding impac t of fr e e shar e s 4.7 1.2 (2.5) I nve stme nts 10.0 9.2 9.1 Ne t de b t 70.1 79.0 82.5 E q uity 75.3 69.1 68.9 Ge ar ing 0.93 1.14 1.20 (1) Including Research Tax Credit previously known as a reduction in tax charges (2) In 2007 : 2.0M€ for the free share distribution plan and 1.0M€ for restructuring costs In 2006 : restructuring costs In 2005 : tangible fixed assets depreciations PCAS – F e b rua ry 2008 | 19