Annual Report Merging Italian Creativity with Swiss Tradition

Transcription

1 Annual Report 2013 Merging Italian Creativity with Swiss Tradition

2 Total assets ( /000) Net fixed assets ( /00) EBITDA ( /000) OPERATING INCOME (EBIT) ( /000) NET PROFIT ( /000) ROE ,24% 24,29% 19,74% 20,14%

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5 Annual Report 2013 Gerolamo Induno. Milano, 13 Dicembre Milano, 18 Dicembre 1890 Scuola 800 Lombarda

6 Cav. Lav. Dr. Giuseppe G. Miglio

7 Letter of the Chairman Dear Shareholders, Ladies and Gentlemen: CREATIVITY LEADS TO A BETTER LIFE Another year has passed, and I have the pleasure again to send you an Annual Report on an exciting, yet challenging year was dominated in Italy and specifically its pharmaceutical industry by annoying uncertainties. In many ways it was a "lost year": at a great cost for the country, politicians failed to provide the necessary leadership, and economic activity even fell below the already unexciting level of the previous year. Despite this dismal environment, Mipharm continued its journey towards prosperity successfully: Revenues grew 7.6% to 38.4 mio., and Net Profit at 2.9 mio. exceeded the previous year by even 11.5%. Our Balance Sheet continues to be remarkably healthy. These results are particularly impressive if we bear in mind that 2013 was anything but a normal year for Mipharm. The challenging turnaround of our Quality Assurance and Quality Control operations was in full swing and required a significant degree of Management time and attention, not to mention the heavy financial investments that were necessary of our Manufacturing and related areas. In fact, Manufacturing will be one key focus also in The area will have to cope with a tremendous workload again, and we will make absolutely sure that the Quality of their output remains in the range of excellence. Notwithstanding this challenging goal, Cost Management will also stay in our focus: without rigorously controlling our cash, our financial strength could not be maintained. Effective Cost Management and financial efficiencies continue to be a key objective. Also on the products side, there is promising news: the hormone commonly called "Vitamin D" has gained the medical community's attention around the world. Not just for bone health and muscle strength, as one would expect, but also for other areas, e.g. mental health and blood pressure. Mipharm attempts to play a key role in the manufacturing of Vitamin D. If Mipharm is to continue to grow and prosper, "business as usual" is hardly the recipe. The Company has to rely on the daily commitment, the creativity and the energy of all of its associates. Innovation will continue to occur in larger and smaller steps, but it can only happen in an organization that strives constantly for excellence and a high-performance culture like Mipharm's. My thanks for a difficult, but nevertheless great 2013 go to all our customers, our associates, and our shareholders. Success is always due to a joint effort. I am grateful to all of Mipharm's stakeholders for their continued support in the future. Cav. Lav. Dr. Giuseppe Giampiero Miglio Founder, Chairman and Chief Executive Officer 3

8 Mipharm Board of Directors Giuseppe G. Miglio Max Link Luca Grisotti Vittorio Rizzo Ernst Nikolas Meijnders Founder, Chairman and Chief Executive Officer Director Director Director Director Board of Auditors Ermanno Ramella Laura De Gioia Vittorio Dodi President Auditor Auditor MIPHARM S.p.A. Headquarters: Via Quaranta, Milano Italia Share Capital: 7,669, Milan Registered Company s number and Fiscal code: VAT number:

9 MIPHARM Executive Committee MEC Giuseppe G. Miglio Founder, Chairman and Chief Executive Officer / CEO In the above picture, from your left: Francesco Petrucci CFO Donata Pezzuto Quality Unit Alessandro Cipriani Production Operations Nicola Cadei COO Massimo Prini Technology / Special Services Luca Grisotti General Manager Giovanni Baldelli Human Resources Paola Fazzalari Legal Affairs Mario Ronchetti. Cantù, 10 Marzo

10 Luigi Conconi. Milano, Milano, 1917 Scuola 800 Lombarda Leonardo Bazzaro. Milano, 13 Dicembre 1853 Milano, 2 Novembre 1937 Scuola 800 Lombarda 6

11 New Mipharm Financial Report Period Ending 31 December 2013 (in ) Period Ending 31 December 31 December Revenues % % ,4% EBITDA ,4% ,2% ,5% Operating Income (EBIT) ,9% ,7% ,3% Net Income ,6% ,9% ,4% Primary Cash Flow ,6% Free Cash Flow ROE 20,1% 19,7% 0,4% ROI 11,9% 12,9% -1,0% ROS 11,9% 12,6% -0,7% Equity / Invested capital 37,9% 38,7% -0,8% Giovanni Boldini. Ferrara, 31 Dicembre 1842 Paris (Francia), 11 Luglio 1931 Scuola 800 Toscana 7

12 New Mipharm Income Statement Period Ending 31 December 2013 (in ) Period Ending 31 December December Revenues ,0% ,0% ,4% Operating Costs ,6% ,8% EBITDA ,4% ,2% ,5% Operating Income (EBIT) ,9% ,6% ,3% Financial Costs ,8% ,8% Non-recurrent Income (Expenses) ,8% ,0% Pre-Tax Income (EBT) ,2% Taxes ,3% ,3% Net Income ,6% ,5% ,4% Leonardo Bazzaro. Milano, 13 Dicembre 1853 Milano, 2 Novembre 1937 Scuola 800 Lombarda 8

13 Leonardo Bazzaro. MIlano, 13 Dicembre Milano, 2 Novembre 1937 Scuola 800 Lombarda 9

14 Silvestro Lega. Modigliana, 8 Dicembre 1826 Firenze, 21 Novembre 1895 Scuola 800 Toscana Beppe Ciardi. Venezia, Quinto di Treviso, 1932 Scuola 800 Veneta 10

15 New Mipharm Cash Flow Statement Period Ending 31 December 2013 (in ) 12 Months Period Ending 31 December December 2012 Operating Activities Net Income (Loss) Depreciation of PP&E Amortization of Intangibles Employee Severance Payments Provision for Risk and Charges (Increase) Decrease in Receivables (Increase) Decrease in Inventory (Increase) Decrease in Other Current Assets Increase (Decrease) in Payables Increase (Decrease) in Other Current Liabilities Increase (Decrease) in Other Working Capital Net Cash from Operating Activities Investment Activities Sale of PP&E and Intangibles Increase of Assets for internal work (Purchase) of PP&E and Intangibles Net Cash from Investment Activities Financing Activities Capital increase Payment of Cash Dividends Net Cash from Financing Activities Net Change in Cash & Cash Equivalents

16 New Mipharm Revenues Period Ending 31 December 2013 (in ) Period Ending 31 December 31 December Manufacturing Special Services Total Mario Acerbi. Milano, Pavia, 1982 Scuola 800 Lombarda

17 Comments to Year 2013 Despite a few aftershocks after the eventful previous year, Mipharm ended 2013 in an enviable position - financially remarkably stronger, with a considerably expanded, modernized and more resourceful technology base and well trained, committed associates ready to confront the challenges of the future. With no internal discontinuities or external disruptions along the way, Mipharm stayed focused on an accelerated revenue generation, and, also thanks to rigorous cost controls, remarkably improved its profitability. Mipharm's technical capabilities, ranging all the way from product development to manufacturing as well as Quality Assurance and Quality Control are proof of our unwavering commitment to excellence and our perseverance. Vittorio Matteo Corcos. Livorno, 4 Ottobre Firenze, 8 Novembre 1933 Scuola 800 Toscana 13

18 New Mipharm Profit and Loss Statement Period Ending 31 December 2013 (in /000) Period Ending 31 December 31 December A Value of manufacturing Net Revenues (sales and services) Increase of WIP Other operating income B Cost of production Raw material Salaries and wages Value adjustments a Amortisation of intangible assets b Depreciation of tangible assets c Other adjustments 0 25 Other operating charges Difference between value and cost production C Financial income and charges D Extraordinary income and charges Proft (loss) before income taxes Income taxes Net Profit (loss) for the financial period

19 New Mipharm Balance Sheet, 2013 (in /000) Assets December 31 December A Current Assets Cash or Cash Equivalents Inventories Receivables and other assets Non-Permanent Investments B Fixed Assets Tangible assets Intangible assets Financial assets C Prepaid expenses and deferred charges TOTAL ASSETS Equity and Liabilities A Creditors Banks Other Financiers Accounts Payable Other Creditors B Provision for Risk and Charges C Employee severance payments D Accruals and deferred income E Capital and reserves TOTAL EQUITY AND LIABILITIES

20 Giovanni Carnovali detto il Piccio. Montegrino Valtravaglia, 29 Settembre Coltaro, 5 Luglio 1873 Scuola 800 Lombarda 16

21 Outlook for 2014 While 2013 was a record year by any standard, 2014 started more cautiously but in a nevertheless encouraging mode. By the time it is over, we are confident that we can add another financially successful year to a number of impressive years. In the meantime we stay focused on what we are doing best: patients' needs are at the forefront of our minds while we do everything to remain a reliable supplier to our customers as well as a demanding but fair employer for our associates. And we will attempt to deliver once again an attractive return to our shareholders. To be able to achieve our challenging objectives, we depend on a stable economic and political environment. Continued political instability in Italy in the longer term would have its costs for the economy of the country, including Mipharm. We are confident that our country will return to a more predictable pattern. Gaetano Spinelli. Bitonto, 6 Agosto 1877 Firenze, 4 Marzo 1945 Scuola 800 Toscana 17

22 Domenico Morelli. Napoli, 4 Agosto Napoli, 13 Agosto 1901 Scuola 800 Napoletana 18

23 Rinaldo Agazzi. Mapello, 30 Ottobre Bergamo, 24 Maggio 1939 Scuola 800 Lombarda 19

24 Produced by MIPHARM S.p.A. Italy Printed by: COLORSYSTEM SaS - Italy Milan, Italy March 2014

25 Imagination is more important than knowledge Albert Einstein Michele Gordigiani. Firenze, 29 Maggio Firenze, 7 Ottobre 1909 Scuola 800 Toscana

26 Mipharm S.p.A. Via Quaranta, Milan Italy Phone (39) Fax (39)