Recordati Industria Chimica e Farmaceutica S.p.A.

Afternoon, this is the Coral School Conference Operator. Welcome and thank you for joining the record at the 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. Please go ahead, madam.

Thank you, Judith, 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 Vigila Corte, our CFO, that will be presenting the 2022 first half results. Then we'll be running you through 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 leave the floor to Tob. Please, go ahead.

Thank you, Federica. I'm happy to announce very strong revenue and profit in the first half of this year for RecordAvi with continued strong cash flow generation. We have a revenue growth of over 15% and a constant exchange rate and adjusted for both the EUSA pharma acquisition and porting accounting of Eligart in 2021 prior to the switch to direct sales, our growth is strong and just under 9% compared to previous year. EBITDA at 334.9 million was up by 11.5% compared to the first half at 37.5% of revenue, reflecting the strong revenue growth and continued cost discipline more than offsetting impact of inflation. Also very strong free cash flow generation of 218.7 million, increasing by 7% versus the same period last year. There is a really strong momentum across both our businesses and continued post-COVID recovery. SPC with high single-digit growth ahead of reference markets. Of course, this level of growth rate is also explained by slightly softer growth first half of 2021, still at that point impacted from COVID. Overall, we're seeing a very strong rebound from the cough and cold segment and OTC, but we see also a very broad growth across the entire portfolio. And our rare disease business shows double-digit growth, driven by both Metabolic and the Endo franchise, with sales of Isteriza and Zicnipor on track with plan. And then our new rare oncology franchise, the former Usa Pharma, results are really above plan, with strong revenue of 46.1 million in quarter two, in part with some favorable phasing of shipments to partners in the quarter. The business is now fully integrated and fully operational and fully in line with our schedule. We've taken multiple actions to offset inflation. price increases across multiple parts of the portfolio wherever possible, and very effective SPC efficiency measures already announced earlier, like the right-sizing of our sales forces. These actions sustain our margins. Year-to-day results are affected by hyperinflation counting in Turkey, which determine revaluation of local assets and minor P&L impacts, resulting in a revenue uplift of around 3 million and a negative effect on operating margins of around 5 million. As expected, and broadly in line with our plan, non-recurring costs of 26.4 million. They're mostly related to the user pharma acquisition, that's about 15 million, and to one-off charges of SPCs rightsizing, and also to the assistance in the Ukraine conflict related to donations. As Luigi will explain later, our reported net income and operating income are impacted by fair value IFRS 3 adjustments related to the user pharma acquisition. And they are expected. And also some effects of volatility affecting our financial expenses. On an adjusted basis, our adjusted net income is $224.8 million, up 7.1% versus previous year. And with that, absorbing the unplanned ethics losses, particularly related to the Russian rule. Then there's also some good news from the ESC site. Our efforts to continue to be recognized by FTSE for good in next series, we are reconfirmed, and an increasing rate from gold to platinum by Ecovadis. Before handing over to Luigi Lacorte, I will give a little bit more detail on the performance of USA Pharmaceuticals. On the next slide, please. Here you see the USA Pharma results and some of the key highlights. Like I said, we are really well on track for the integrations. We've announced a new rare disease organization earlier this month, early July, and we are operating fully integrated with our own co-franchise in place. Sales in the second quarter of this year were 46.1 million, and pro forma first half of 2022 are 84.5 million, a growth of about 15% versus the first half of 2021, mainly driven by sales and performance across all regions and an increased penetration of Carziba in Europe, but also benefiting a little bit from shipments to partners, particularly China in relation to the SILVENT launch. For full year 2022, we expect to close close to 130 million revenue and EBITDA margins of approximately 25 to 30 percent. CARSIVA U.S. discussions with the FDA are ongoing. Target finding is still expected to be in 2024. And also, like we mentioned in first quarter results, We are looking at new indications for Sylvan in the process of evaluating this and should be able to come back later this year with some concrete proposals around it. Then there's very positive news related to the financing of the transaction. This has been finalized as a new five-year variable rate term loan at very competitive rates. which reflects the strong creditworthiness of our group. And finally, as anticipated before, we have finalized the purchase price allocation related to the user pharma acquisition. I will let Luigi explain and address the questions related to this. Luigi, please.