Richter Group H Interim Report, H July 2016

Transcription

1 Richter Group Interim Report, 28 July 2016

2 Summary Consolidated sales: 0,0% (EUR), +1,8% (HUF) + sales growth in EU15 region + good growth in Romania (W&R) and in China significant sales decline in other CIS region and in the USA Profit for the period*: -20.7% (EUR), -19.2% (HUF) + One-off reassessment-related income in Other income and expenses + decrease in R&D expenses increase in S&M expenses impact of RUB EUR exchange rate 25.0% depreciation *Net income attributable to owners of the parent 2

3 Key events Q Finox Holding acquisition 29 June 2016 Swiss based biotech company engaged in the development and commercialisation of innovative and cost effective products addressing female fertility Value of acquisition: CHF 190m BEMFOLA biosimilar r-hfsh, for the treatment of infertility Global marketing rights, except for the USA marketing authorization was granted in EU in May 2014 currently sold in more than 20 countries Benefits of the acquisition: complements Richter s existing Women s Healthcare franchise further strengthens Richter s presence in main European markets increases Richter s exposure to biosimilar markets 3

4 Consolidated financial highlights HUF Change % EUR Change % Total revenues 187.3bn m 0.0 Profit from operations 28.0bn (11.5) 89.6m (13.1) Profit for the period* 30.3bn 3bn (19.2) 96.9m 9m (20.7) EPS (diluted) 163 (19.7) 0.52 (21.2) *Net income attributable to owners of the parent 4

5 Geographical composition of Group sales Hungary Hungary Russia 23% 11% Poland 6% Russia 21% 11% 6% Poland Romania Ukraine 2% Ukraine 2% H % 15% Romania Other CIS 9% 10% Other CIS 7% EU10 LatAm 2% 6% 2% 6% 5% EU10 LatAm 5% 13% China 4% China 14% 4% 4% EU15 USA USA EU15 RoW RoW Total: HUF 184.0bn EUR 599.1m + 1.8% (HUF) - 0.0% (EUR) Total: HUF 187.3bn EUR 598.9m 5

6 P&L HUFm Change % EURm Change % Total revenues 187, as % of total revenues Gross profit 111,669 (4.3) (6.0) 59.6 S&M expenses (54,383) 5.8 (173.9) A&G expenses (9,316) 0.9 (29.8) (1.0) 4.9 R&D expenses (19,757) (5.9) (63.2) (7.6) 10.5 Other income and other expenses (212) (93.8) (0.6) (94.6) 0.1 Profit from operations 28,001 (11.5) 89.6 (13.1) 15.0 Net financial income 4,536 (42.7) 14.5 (43.8) 2.4 Profit for the period* 30,295 (19.2) 96.9 (20.7) 16.2 *Profit attributable to owners of the parent 6

7 Decreasing gross profit, gross margin + Increase of turnover in EU15 and in China + Increase of turnover in Russia HUFm in RUB Sales decline in other CIS and in the USA Weakening RUB exchange rate against EUR and HUF (YoY) EUR RUB 25.0% Gross profit Gross margin Increase of share in turnover of W&R % 59.6% 60% 50% 40% 30% 20% 10% 0% 7

8 Decreasing operating margin + One-off reassessment-related income in Other income and expenses + Decreasing R&D expenditures Decreasing gross margin Increase in sales and marketing expenses Impact of RUB EUR exchange rate 25.0% depreciation HUFm % % % 20% 15% 10% 5% 0% Profit from operation Operating margin 8

9 Sales in the Pharmaceutical segment* Sales development contradictory impacts + growth: Hungary, Poland, Romania, EU15, Russia (in RUB), China, Rest of the World + increasing ESMYA sales decreasing overall OC sales decline: other CIS, USA Successful product launches * 87% of turnover originates from outside of Hungary 9

10 Hungary Stable pharmaceutical market Sales increase: 3.1% in HUF HUFbn Turnover * Success of products launched in recent years *Turnover of the pharmaceutical segment 10

11 EU composition of sales* EU15 strengthening g our position in key Western-European markets own Women s Healthcare sales and marketing network 47% 53% *Turnover of the pharmaceutical segment Poland, Romania, EU10 well established in the region for decades own specialized sales network 11

12 EU15 1.8% sales increase in EUR Own S&M network Women s Healthcare products: ESMYA, Lisvy, Richter OC portfolio, acquired OCs Declining oral contraceptive market EURm Turnover* *Turnover of the pharmaceutical segment 12

13 Poland, Romania, EU10 Increasing generic competition Price erosion Poland: 8.7% increase in PLN strong flu epidemic i Groprinosin sales increase Romania: increasing sales levels (8.0% in RON) base period: low level of wholesale stock EURm Turnover* Poland Romania EU10 *Turnover of the pharmaceutical segment 13

14 CIS Sales decline (9.1% in EUR) Russia RUB devaluation (YoY) slowdown of Russian economy 200 EURm Turnover* Ukraine political uncertainty UAH devaluation decreasing purchasing power 0 Russia Ukraine Other CIS *Turnover of the pharmaceutical segment 14

15 Russia Sales increase in RUB (15.9% in RUB; -7.4% in EUR) An average 4% price increase when projected across the entire range of products Growing volumes Weakening of EURRUB exchange rate in : 25.0% (YoY) EURm Turnover* *Turnover of the pharmaceutical segment 15

16 Ukraine, Other republics Ukraine flat sales (USD 14.5m) political and economic turmoil low sales level in the base period UAH devaluation USD UAH: 19.4% (YoY) declining purchasing power Other republics 18.6% increase (EUR) (-18.5% in USD) devaluation of Kazakh Tenge EUR KZT: 83.8% (YoY) USDm Turnover* Ukraine Other CIS *Turnover of the pharmaceutical segment 16

17 USA Sales decline (20.4% in USD) Significant proportion of Women s Healthcare 78% Substantial decrease of revenues resulting from profit sharing agreements USDm Turnover* Cariprazine (Vraylar TM ) royalty income achieved during Q1: USD 1.4m *Turnover of the pharmaceutical segment 17

18 China Sales in : EUR 35.3m Dynamically expanding pharmaceutical market From 2016 GR Rxmidas 100% Richter owned Sales network: 231 medical representatives Higher sales level of Cavinton, Panangin and Escapelle 18

19 Latin America Sales* in : USD 10.4m Regional presence: Brazil Mexico Colombia Ecuador Bolivia Peru Chile Mediplus N.V. Women s Healthcare products in focus Gradual launch of ESMYA *Turnover of the pharmaceutical segment 19

20 Pharmaceutical sales by therapeutic areas Other Central nervous system 17% 15% Muscle relaxants 6% Gastrointestinal 3% 22% Cardiovascular 37% Women s Healthcare Total: EUR 503.0m 20

21 Women s Healthcare sales by region Hungary CIS 24% 5% 11% CEE Ex-Grünenthal portfolio EURm China LatAm 4% 4% 9% 6% 37% EU USA 0 RoW Total: HUF 57.6bn EUR 184.1m Gynaecological sales Non gynaecological g sales 21

22 Sales impact of Ex-Grünenthal portfolio and ESMYA Ex-Grünenthal portfolio sales: EUR 23.8m ESMYA sales: EUR 31.1m Women s Healthcare sales Subtotal: EUR 54.9m Ex-Grünenthal portfolio 13% WH Total: EUR 184.1m 17% 22 ESMYA

23 Sales network staff H CIS CEE Hungary EU15 China 23

24 Wholesale and retail W&R sales contribution is 18% of total sales 75% of the W&R turnover originates in Romania 22.4% sales increase in EUR in Romania 24

25 Ownership structure 30 June 2016 Domestic investors 7.15% 67.60% International investors 25.25% Hungarian State Holding Company 25

26 Thank you for your attention! 26

27 Appendix Exchange rates 27

28 Evolution of currency exchange rates HUF EUR HUF USD HUF

29 Evolution of currency exchange rates EUR EUR RUB

30 Evolution of currency exchange rates HUF 5,25 5,00 4,75 4,50 4,25 4,00 HUF RUB 3,75 3,50 3,25 30

31 Exchange rates At period end EURHUF USDHUF RUBHUF EURRUB EURUSD Average Q M M H EURHUF USDHUF RUBHUF EURRUB EURUSD