Recordati Industria Chimica e Farmaceutica S.p.A.

Good afternoon. This is the Coral School conference operator. Welcome and thank you for joining the Recordati conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Ms. Federica De Medici, Investor Relations and Corporate Communications of Recordati. Please go ahead, madam.

Thank you, Sabrina, and good afternoon or good morning, everyone, and thank you for attending the Recordati conference call today. I'm pleased to be here with our CEO, Rob Cormans, and Luigi Lacorte, our CFO. that will be presenting the 2022 first quarter results. They will be running due to the presentation. As usual, the set of slides is available on our website under the investor section. After that, we will open up for Q&A. I will now give the floor to Rob. Please go ahead.

Thank you, Federica. I'm proud to announce a very strong start of the year for revenues and bottom line performance with continued strong cash flow generation. Overall revenue growth was 9% or 11% in constant exchange rate and reached 419.4 million, reflecting continued post-COVID recovery and good underlying growth of both our businesses. SPC recovers in relevant markets, especially with regards to Coffin Cold and OTC products, and also it improved access to healthcare professionals almost returning to pre-pandemic levels, and also a very robust performance of rare disease, both the endo and the metabolic portfolio in the U.S. and in Europe. In more details, endo increased its revenues by 46.4% versus the first quarter of last year, thanks to the continued new patients acquisition in the U.S., and in the lead European countries. East Teresa is now reimbursed in Germany and Spain and we keep pushing to get that in other European markets. We have a nicely increased contribution from Eligard, 7 million up versus the first quarter of last year. With stabilization of the markets in many countries and actually in some we already start to see which is a very big change from the product we took over with a decline. The new device filling has been accepted by the European Medical Agency with a decision expected in the third quarter of this year. The user pharma acquisition closed on March 16th and the integration is progressing really, really well. Also, the business is tracking nicely ahead of our own expectations. And then we've also had good growth in the quarter in Russia and Ukraine, basically on the back of a very strong cough and cold season and also related to some of the advanced purchases that were made in both countries ahead of the conflict. We see that Russia has brought in 17 million in revenues and Ukraine 4.4 million in the quarter. And what you should note as well is that Russia, the growth has been strong also because of strong destocking in the year before in the same quarter. Our financial results reflect strong top-line performance and efficiency improvements like the SPC rightsizing in our commercial structure and sales force, and also still very limited year-to-date inflation impacts on COX and OPEX. EDHDA 163 million, or at 38.9% of sales, which is up 8.7% versus the first quarter of last year. Adjusted net income 116.3 million, or 27.7% of sales, and up 11.4% versus first quarter last year. And net income at 96.7 million, or 23.1% of sales, up 7.6%. We have continued strong free cash flow generation of 110.3 million. Operating results reflect the impact of 7.1 million of non-recurring costs, mainly related to the user-farmer transition and organizational restructuring. depth of 1.4 billion is around 2.2 times EBITDA pro forma for EUSA Pharma reflecting continued strong cash generation by the business and expected to be around 2.4 post-May dividend payment. Before handing over to Luigi who will provide more details on the financial performance, I would also like to talk briefly about EUSA. The acquisition was driven by our desire to enter into this very appealing rare disease segment of oncology. Rare oncology is a beautiful growth opportunity and fits perfectly to our rare disease business where we see mutual strengthening. The assets that we've acquired are very, very attractive and we see opportunities to continue the strong growth and performance. And also we get people that are strongly committed, very capable, and strongly committed to making impact on disease and on patients, and that is what ultimately drives us in this business very strongly. Twenty-one revenues were just over $150 million ahead of plan, and as we also closed now a little bit earlier than expected, We can also update our expectations for this part of the business for the three quarters of 2022 that we consolidate, quarter two, quarter three, and quarter four. We expect for this three quarters contribution of over 120 million euro in revenues and over 30 million in EBITDA contribution in the last three quarters of this year. with a going margin which is much in line with the rare disease segment. Non-recurring costs in 2022 and 2023 are confirmed to be around 35 million, 28 million of which will happen in 2022 and are related largely to the ongoing manufacturing technology transfer for Sylvan and acquisition and integration related expenses. Total consideration of $707 million with an enterprise value of $750 million net of financial debt of the acquired business and of other adjustments. And financing via an existing liquidity and $650 million of new debt facilities. On the right hand of the slide, I'll give a little bit more color to the integration. We have now integrated the ecology asset into our rare disease unit with three strong business units within rare disease, metabolic, endocrinology, and the oncology assets. Like I said before, the integration is progressing really, really well, and we expect to completely finish integration still this year. There's a lot to do around the new sets of products that we acquire. The performance is really, really fantastic. But what we do with user integration is much more than integrating assets. The key thing here are also really the people that we brought on board with all of their competence and know-how, which is very relevant in this attractive niche oncology market in the rare disease oncology. And with these people and with our own team here, we look at some of the assets where we see additional opportunities that we've indicated in the pipeline part of the slide where we are currently looking at what are the opportunities and bring the business cases for that. Too early to comment on the size of the opportunity and timelines, but we believe there's something there that is really worth spending some time and money on looking at this. And to make all of this happen, People are key, and the integration with users is happening incredibly fast. We are very compatible in culture, and it's very, very good to see how the teams are working together and basically work as one to help and drive our business further and serve even more patients in the time to come. And with that, I'll leave the floor to Luigi for a detailed financial review.