Rovi Full year 2011 Financial Results Full year 2011 Financial - - PowerPoint PPT Presentation

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Rovi Full year 2011 Financial Results Full year 2011 Financial - - PowerPoint PPT Presentation

Rovi Full year 2011 Financial Results Full year 2011 Financial Results Disclaimer This document has been prepared by Laboratorios Farmacuticos Rovi, S.A. (ROVI or the Company), solely for its use during the attached presentation.


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SLIDE 1

Rovi

Full year 2011 Financial Results Full year 2011 Financial Results

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SLIDE 2

Disclaimer

This document has been prepared by Laboratorios Farmacéuticos Rovi, S.A. (“ROVI” or the “Company”), solely for its use during the attached presentation. The information and each of the opinions and statements contained in this document have not been verified by independent experts and, therefore, no guarantee is provided of the impartiality, accuracy, completeness or precision of the information or opinions and statements contained in this presentation. The Company and its advisors do not assume responsibility for any damage or losses that may arise from the use of this document or the information it contains. This document does not constitute an offer or invitation to acquire or subscribe shares, in accordance with the Spanish Securities Market Law of 1988 and its implementing regulations. Moreover, this document does not constitute an offer to purchase, sell or exchange securities, a solicitation of any offer to purchase, sell or exchange securities, a solicitation of any kind of voting rights, or approval in the United States of America or any other jurisdiction. Neither this document nor any part of it are of a contractual nature, and they cannot be used to form part or construe any agreement

  • r any kind of undertaking.

1

  • r any kind of undertaking.

This presentation may contain information and statements or declarations with future projections regarding ROVI. The future projections do not constitute historical facts and are generally identifiable by the use of terms such as “expects”, “anticipates”, “believes”, “intends”, “estimates” and similar expressions. In this regard, although ROVI believes that the expectations contained in such statements are reasonable, the investors and holders

  • f ROVI shares are advised that the information and future projections are subject to risks and uncertainties, a large part of which are

difficult to foresee, and which are, in general, out of ROVI’s control. These risks could cause the results and real development to differ substantially from those expressed, implicit or projected, in the information and future projections. Among these risks and uncertainties include those identified in the documents submitted by ROVI to the Spanish Securities Exchange Commission (Comisión Nacional del Mercado de Valores), which are available to the public. It is recommended that investment decisions not be taken based on the future projections, which refer exclusively to the date on which they were publicised. All the future projections contained below and made by ROVI or any of its directors, managers, employees or representatives are expressly subject to the above warnings. The future projections included in this presentation are based on the information available on the date hereof. Except when legally required, ROVI does not assume any obligation to update its affirmations or review the future projections, even if new data is published or new facts arise.

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SLIDE 3

Operating results

Juan López-Belmonte Chief Executive Officer

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SLIDE 4

121,9 137,2 36,7 47,1 0,1 0,4 158,6 184,7

40 80 120 160 200

Growth driven by recent launches and toll manufacturing business strength…

Total operating revenues (€m) Operating revenues growth by category (€m) +28% +13%

158,6 184,7

80 120 160 200

+16%

40 2010 2011 Specialty pharma Toll manufacturing Royalties

3

  • Operating revenues increased by 16% in 2011 driven by the strength of:

 The specialty pharmaceutical business, where sales rose 13%;  The toll manufacturing business, where sales increased by 28%.

  • Limited impact of the latest austerity measures (August 2011): < €1m in 2012.
  • 2011 operating revenues in line with 2011 guidance, which was upgraded from low double digit to mid teens in

November 2011.

40 2010 2011

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SLIDE 5

17,8 23,7 11,2% 12,8%

5 10 15 20 25 0% 5% 10% 15% 20%

…with high profitability

Recurrent EBITDA (€m) and EBITDA margin (%) Recurrent net profit (€m) +33%

12,8 18,1

5 10 15 20

+42%

0% 2010 2011

Recurrent EBITDA Recurrent EBITDAmargin

4 Note: Recurrent EBITDA and net profit exclude the one-off profit of 11.8 million euros, registered in the first half of 2010.

2010 2011

  • Recurrent EBITDA increased by 33% to €23.7m in 2011, excluding the impact of a one-off profit of €11.8m in Q2 2010

caused by the Frosst Ibérica integration.  This 33% increase includes a profit of €5.6m related to Fitoladius sale to a third part, registered in Q2 2011.  Excluding the impact of the Fitoladius sale, EBITDA increased by 2% in 2011, considering no Fitoladius sales from its sale to a third part in 2011. Considering that ROVI maintained the product in 2011, EBITDA increased by 8% in 2011.

  • Recurrent net profit increased by 42% to €18.1m in 2011.

 Excluding the impact of the Fitoladius sale, recurrent net profit remained stable in 2011, considering no Fitoladius sales from its sale to a third part in 2011. Considering that ROVI maintained the product in 2011, recurrent net profit increased by 8% in 2011.

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SLIDE 6

31,1 35,4 12,8 15,1 43,9 50,5

20 30 40 50 60

Bemiparin, leading the growth

Prescription-based pharma products sales (€m) Bemiparin sales (€m) +15%

87,7 100,5

40 60 80 100 120

+15%

31,1

10 2010 2011 Spain International

5

  • Sales of prescription-based pharmaceutical products increased by 15% in 2011.

 Excluding the impact of the new measures to reduce pharmaceutical expenditure, sales of prescription-based pharmaceutical products increased by around 4 additional percentage points.

  • Bemiparin sales increased by 15% in 2011.

 Sales in Spain rose 14%.  International sales rose by 18% due to the increased presence in countries where it was already present and by the launch of the product in 4 new countries: Bolivia, Byelorussia, Russia and Bahrain.

20 2010 2011

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SLIDE 7

Good performance of the product portfolio

Corlentor sales (€m) Osseor sales (€m)

5,1 7,1

2 4 6 8

+40%

6,6 7,1

2 4 6 8

+7%

6

  • In February 2012, Corlentor has been approved by

the European Commission for the treatment of patients with chronic heart failure1.

  • Sales of Exxiv, a selective COX-2 inhibitor from

MSD, decreased by 3% to €8.0m mainly due to a slight deceleration of the COX-2 market. Contrast imaging agents (€m)

2010 2011 2010 2011

21,0 21,9

5 10 15 20 25 2010 2011

+5%

Note: Corlentor is a specialty product for stable angina and chronic heart failure1 from Laboratoires Servier. Osseor is a specialty product for the treatment of postmenopausal osteoporosis from Laboratoires Servier.

  • 1. EMA announcement
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SLIDE 8

Recent launches sales

Thymanax sales (€m) Absorcol and Vytorin sales (€m)

3,1 8,6

2 4 6 8 10

5,7

2 4 6

+2,7x

7

  • Sales of Thymanax, an innovative antidepressant from Servier, launched in March 2010, increased by 2,7x

to €8.6m in 2011.

  • Sales of Absorcol and Vytorin, the first of the five licenses of MSD launched in January 2011, reached

€5.7m in 2011.

3,1

2010 2011 2010 2011

Note: Thymanax is an innovative antidepressant from Laboratoires Servier. Vytorin and Absorcol are the first of the five licenses of MSD..

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SLIDE 9

Value added toll manufacturing services

Toll manufacturing sales (€m)

  • Toll manufacturing sales increased by 28% in 2011

as a result of the implementation of the MSD manufacturing and packaging agreement, which was effective on 31 March 2010.  Revenues from the MSD agreement amounted to €32.2m in 2011. 36,7 47,1

20 30 40 50

+28%

8

amounted to €32.2m in 2011.

  • 40% of spare capacity in the Frosst Ibérica plant.

 New contract with Farmalíder, signed in January 2011.

10 2010 2011

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SLIDE 10

Focus on drug release platform

Platform Product Potential indication Current situation Pre- Clínical I II III Expected milestones

  • Disclosed Ph I results

Phase 2 start in 2H 2012

Phase 1 start 2H 2013 Risperidone, monthly Schizophrenia Olanzapine, Schizophrenia

Phase 1 start 2H 2013

Phase 1 start 1H 2013

Phase 2 finalised. Disclosed Ph II results 9 Glycomics Bemiparin (LMWH) Small Cell Lung Cancer (*) ISM Letrozole, quarterly Brest Cancer Olanzapine, monthly Schizophrenia Paliperidone, monthly Schizophrenia

* Currently looking for a strategic partner to go on further clinical development

Phase 1 start 1H 2013

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SLIDE 11

Guidance 2012

Operating revenues 2011

€184.7m

Operating revenues 2012

high single digit – low double digit

Specialty pharma Toll manufacturing

Our main strategic pillars to lead growth

10

Specialty pharma

  • Bemiparin
  • Vytorin and Absorcol
  • Recent launches such as

Thymanax and Bertanel

  • Existing portfolio (Corlentor,

Osseor, Exxiv…)

  • New in-licensed products to be

launched Toll manufacturing

  • 50% of spare capacity in the

injectable plant

  • 40% of spare capacity in the
  • ral compounds plant
  • New customers to be acquired

in both plants

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SLIDE 12

Financial results

Javier López-Belmonte Chief Financial Officer

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SLIDE 13

97,3 118,7 61,3% 64,3%

20 40 60 80 100 120 20% 40% 60% 80%

Gross margin positively impacted by the Fitoladius sale and other income

  • 2011 gross margin impacted by:

 Fitoladius product sale to a third part.

  • Excluding Fitoladius sale impact, gross

margin increased to 63.2% in 2011 from 61.3% in 2010.  Other income (subsidies)

  • Excluding the impact of other income,

gross margin increased to 61.2% in 2011 from 60.4% in 2010, mainly due Gross profit (€m) & Gross margin (%) +22%

0% 2010 2011

Grossprofit Grossmargin

12

2011 from 60.4% in 2010, mainly due to the contribution of the Frosst Iberica plant for 12 months in 2011 vs 9 months in 2010.  In 2011, ROVI continued to buy Bemiparin raw material at around €40 per million of international units and it expects that this stable trend continues during 2012.

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SLIDE 14

8,5 8,4

2 4 6 8 10

Investment effort in human capital to generate growth

R&D expenses (€m) SG&A expenses (€m) +16%

  • 1%

71,0 86,6 71,0 82,6

20 40 60 80 100 2010 2011 13

  • R&D expenses decreased by 1% reflecting ROVI investments in products that are under development.
  • SG&A expenses increased by 22% in 2011 as a result of:

 MSD agreement implementation, which was effective on 31 March 2010; and  Launch of Vytorin and Absorcol.

  • SG&A expenses increased by 16% in 2011, excluding the impact of the MSD toll manufacturing agreement in

Q1 2011.  This 16% SG&A increase reflected ROVI investment effort in human capital to address primary care, main target of Vytorin and Absorcol products.

2010 2011

SG&A SG&A(wo Frosst in Q1 2011)

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SLIDE 15

17,8 23,7 11,2% 12,8%

5 10 15 20 25 5% 10% 15% 20%

29,6 23,7 18,7% 12,8%

5 10 15 20 25 30 35 5% 10% 15% 20%

EBITDA

EBITDA (€m) and EBITDA margin (%) Recurrent EBITDA (€m) and EBITDA margin (%)

  • 20%

+33%

0% 2010 2011

Recurrent EBITDA Recurrent EBITDAmargin

5 0% 2010 2011

EBITDA EBITDAmargin

14

  • EBITDA impacted by a one-off profit of €11.8m in Q2 2010 caused by the Frosst Ibérica integration.
  • Excluding one-off profit in 2010, EBITDA increased by 33% in 2011 vs 2010.
  • This 33% increase includes a profit of €5.6m related to Fitoladius sale, registered in Q2 2011.
  • Excluding the impact of the Fitoladius sale, EBITDA increased by 2% in 2011, considering no Fitoladius sales from its

sale to a third part in 2011. Considering that ROVI maintained the product in 2011, EBITDA increased by 8% in 2011.

  • Excluding the impact of the Fitoladius sale and the impact of the austerity measures, EBITDA increased by 22% in 2011

vs 2010.

Note: Recurrent EBITDA excludes the one-off profit of 11.8 million euros, registered in the first half of 2010.

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SLIDE 16

14,2 19,0 9,0% 10,3%

5 10 15 20 4% 6% 8% 10% 12%

26,0 19,0 16,4% 10,3%

10 15 20 25 30 5% 10% 15% 20%

EBIT

EBIT (€m) and EBIT margin (%) Recurrent EBIT (€m) and EBIT margin (%)

  • 27%

+34%

5 0% 2% 2010 2011

Recurrent EBIT Recurrent EBIT margin

5 0% 5% 2010 2011

EBIT EBIT margin

15

  • Depreciation and amortisation expenses increased by 31% in 2011 as a result of the MSD agreement

implementation and the new PP&E and intangible assets purchases made during 2011.

  • EBIT impacted by the same factors as EBITDA.

Note: Recurrent EBIT excludes the one-off profit of 11.8 million euros, registered in the first half of 2010.

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SLIDE 17

12,8 18,1

5 10 15 20

24,6 18,1

10 15 20 25

Net profit

Net profit (€m)

  • 26%

Recurrent net profit (€m) +42%

5 2010 2011 5 2010 2011

16

  • Net profit impacted by the same factors as EBITDA.
  • Effective tax rate of 4.2% in 2011 vs 5.2% in 2010.

 Frosst Ibérica had negative tax bases of €76.5m as of 31December 2010; €6.4m used in 2011.  According to the new law (August 2011), ROVI has to pay taxes on Frosst Ibérica profits as this company can only offset its profits by 50% of the tax bases of the group during the period 2011- 2013.

  • 2011 recurrent net profit above the single digit growth guidance provided for 2011.

Note: Recurrent net result excludes the one-off profit of 11.8 million euros, registered in the first half of 2010.

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SLIDE 18

5,6 8,4

2 4 6 8 10

Capital expenditure

Capex (€m) FCF (€m) +50%

21,0

5 10 15 20 25 2010 2011

17

  • €8.4m of capex invested in 2011.

 €2.4m of investment capex related to the Alcalá facility (Frosst Ibérica) vs €1.1m in 2010.  €1.3m of investment capex related to the injectables facility.  €4.7m of maintenance capex vs €4.5m in 2010.

  • FCF amounted to €21.0m in 2011 mainly due to the contracting of €25m of short term bank deposits in 2010 which

were sold in 2011.

  • 2,9
  • 5

2010 2011

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SLIDE 19

Financial debt

Debt breakdown by source (%) €50.7 million Maturities by year (€m)

  • 91% of the debt is 0% interest rate debt
  • Debt with public administration represented 67% of total debt
  • Gross cash position of €61.7m as of 31 December 2011 vs €59.8m as of 31 December 2010
  • Net cash position of €11.0m as of 31 December 2011 vs €7.9m as of 31 December 2010
  • High level of financial flexibility
  • ROVI will propose to the Shareholders General Meeting a dividend of €0.1269 per share on 2011 earnings

18

Note: consolidated accounts under IFRS

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SLIDE 20

Newsflow 2012

  • Additional new in-licensing products to be launched

Specialty pharma

  • New contracts to be announced
  • FDA inspection for the injectables facility

Toll manufacturing

19

  • FDA inspection for the injectables facility
  • Start of ISM-Risperidone Phase II

R&D

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SLIDE 21

For further information, please contact:

Juan López-Belmonte Chief Executive Officer +34 913756235 jlopez-belmonte@rovi.es www.rovi.es Javier López-Belmonte Chief Financial Officer Chief Financial Officer +34 913756266 javierlbelmonte@rovi.es www.rovi.es Marta Campos Martínez Investor Relations +34 912444422 mcampos@rovi.es www.rovi.es