BIOLOGICAL PHARMA L.T.D. BUSINESS PLAN. Economic and financial part

Transcription

1 BIOLOGICAL PHARMA L.T.D. BUSINESS PLAN Economic and financial part

2 SUMMARY PIANO STRATEGICO Company data.. pag. 3 Final balance data.. pag. 4 Input table.. pag. 6 Sales and Production.. pag. 7 Company Staff.. pag. 8 Investment plan.. pag. 9 Asset depreciation sheet.. pag. 12 VAT calculation (years of the plan).. pag. 13 Medium/long term loans.. pag. 14 Finance lease.. pag. 16 Income Statement.. pag. 21 Balance Sheet.. pag. 22 Cash Flow Statement.. pag. 23 Ratios and charts.. pag. 24 Link Income Statement.. pag. 29 Break-even at current proces.. pag. 31 Break-even simulation tables.. pag. 32 BUDGET Operating Budget.. pag. 34 Capital Budget.. pag. 36 Financial Budget.. pag. 40 NEW PROJECT Cost and economic inpacts.. pag. 44 Milestone e Gannt diagram.. pag. 48

3 Business Plan Company name BIOLOGICAL PHARMA Company form L.T.D. Address 51 Harrods Street City Newcastle Share Capital ,00 Phone number 035/ First year of the plan 2013 closing date 1st fiscal year 31/12/2013 Turnover (last year) ,00 Sector Ricambi per moto Activity code (main) 45,40 current situation 3 select: company in start-up company in operation Average num. employees currency 2 Company Shareholders (if applicable) Surname and Name Share number % S. C. 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% total - 0,00% Registr. at Co. House of registration number from Newcastle NW /01/1997 other informations 1 other informations 2 other informations 3 Pagina 3

4 BIOLOGICAL PHARMA Tabella 1 - Final Income Statements Year 2010 Final 2011 Final 2012 Final /000 % /000 % /000 % Sales and services revenues ,6% ,5% ,5% Other income 239 2,1% 227 2,0% 318 2,9% Change in work in progress 0,0% 0,0% 0,0% VALUE OF PRODUCTION SOLD ,8% ,5% ,4% Work performed by entity and capitalised 58 0,5% 53 0,5% 77 0,7% Variation in stocks w. in pr., fin. products (484) (4,3%) 341 3,0% (232) (2,1%) VALUE OF PRODUCTION ,0% ,0% ,0% Purchase of raw material and subsidiary (4.090) (36,0%) (4.578) (40,5%) (4.011) (36,0%) Variation in raw material, consum. and goods (155) (1,4%) 143 1,3% (13) (0,1%) CONSUMPTIONS (4.245) (37,4%) (4.435) (39,3%) (4.024) (36,1%) Outsourced manufacturing (700) (6,2%) (705) (6,2%) (799) (7,2%) Manufacturing costs and services (206) (1,8%) (253) (2,2%) (281) (2,5%) Salling expenses (2.068) (18,2%) (1.583) (14,0%) (1.643) (14,7%) Administrative and general expenses (1.300) (11,4%) (1.102) (9,8%) (985) (8,8%) R&D costs 0,0% 0,0% 0,0% Other expenses (+) revenues(-) (83) (0,7%) (78) (0,7%) (113) (1,0%) SERVICES AND OTHER OPER. COST (4.357) (38,4%) (3.721) (32,9%) (3.821) (34,3%) VALUE ADDED ,3% ,8% ,6% Wages, salaries and social securities (2.002) (17,6%) (2.014) (17,8%) (1.983) (17,8%) Employees benefits (115) (1,0%) (124) (1,1%) (117) (1,1%) Other costs 0,0% 0,0% 0,0% EMPLOYEE COSTS (2.117) (18,6%) (2.138) (18,9%) (2.100) (18,8%) GROSS OPERATING PROFIT (EBITDA) 640 5,6% ,9% ,7% Tangible fixed assed depreciation (330) (2,9%) (295) (2,6%) (323) (2,9%) Intangible fixed assed amortization (122) (1,1%) (99) (0,9%) (93) (0,8%) Current credits depreciations (6) (0,1%) (5) (0,0%) 0,0% Lease expenses (1.565) (13,8%) (1.217) (10,8%) (565) (5,1%) Provisions for risks and charges (126) (1,1%) (86) (0,8%) (75) (0,7%) TOTAL DEPREC./AMORT., FIN. LEASE (2.149) (18,9%) (1.702) (15,1%) (1.056) (9,5%) NET OPERATING PROFIT (EBIT) (1.509) (13,3%) (701) (6,2%) 141 1,3% Financial earning 9 0,1% 12 0,1% 7 0,1% Other revenues from investments 0 0,0% 0 0,0% 0,0% EARNING FROM INVESTMENTS 9 0,1% 12 0,1% 7 0,1% PROFIT (LOSS) BY INVESTED CAPITAL (1.500) (13,2%) (689) (6,1%) 148 1,3% Interest on short-term loans (40) (0,4%) (31) (0,3%) (35) (0,3%) Interest on medium/long-term loans (90) (0,8%) (80) (0,7%) (100) (0,9%) Other financial charges 0,0% 0,0% 0,0% INTEREST AND SIMILAR CHARGES (130) (1,1%) (111) (1,0%) (135) (1,2%) PROFIT/(LOSS) FOR THE YEAR (1.630) (14,3%) (800) (7,1%) 13 0,1% EXTRAORDINARY ITEMS 698 6,1% 0,0% (53) (0,5%) PROFIT/(LOSS) BEFORE TAXATION (932) (8,2%) (800) (7,1%) (40) (0,4%) Income tax of the year 0,0% 0,0% 0,0% Deferred income tax 0,0% 0,0% 0,0% Other tax 71 0,6% 53 0,5% (122) (1,1%) TAX EXPENSES 71 0,6% 53 0,5% (122) (1,1%) NET PROFIT/(LOSS) (861) (7,6%) (747) (6,6%) (162) (1,5%) Pagina 4

5 BIOLOGICAL PHARMA Tabella 2 - Final Balance Sheet Year 2010 Final 2011 Final 2012 Final ' 000 % ' 000 % ' 000 % Liquidity 71 0,6% 112 0,9% ,9% Trade receivables ,0% 941 7,8% 882 6,3% Other receivables ,3% ,6% 872 6,2% Inventory ,1% ,9% ,9% Prepayments and accrued income 951 7,8% 10 0,1% 47 0,3% VAT receivable 0,0% 0,0% 0,0% CURRENT ASSETS ,7% ,4% ,6% Tangible fixed assets ,1% ,1% ,4% Intangible fixed assets 276 2,3% 229 1,9% 191 1,4% Financial fixed assets 728 6,0% 682 5,7% 659 4,7% FIXED ASSET ,3% ,6% ,4% TOTAL ASSETS ,0% ,0% ,0% Banks overdraft and current loans 671 5,5% 425 3,5% 321 2,3% Trade payables ,5% ,9% ,2% Trade payables for purchase of asset 0,0% 0,0% 0,0% Other current payables 609 5,0% 850 7,1% 417 3,0% Accruals and deferred income 6 0,0% 170 1,4% 149 1,1% CURRENT DEBTS ,0% ,9% ,5% Employees' leaving entitlement 605 4,9% 603 5,0% 566 4,0% M/L term loans ,5% ,4% ,0% Provisions for risks and charges 841 6,9% 837 7,0% 957 6,8% Loans from owners 0,0% 0,0% 0,0% Other non current liabilities 0,0% 0,0% 0,0% NON CURRENT DEBTS ,3% ,4% ,8% TOTAL DEBTS ,3% ,2% ,3% Common stock ,6% ,1% ,8% Legal Reserve 300 2,5% 0,0% (1) (0,0%) Other specific reserves 0,0% 0,0% 0,0% Retained Earnings (1.019) (8,3%) (1.580) (13,1%) 0,0% Net income (loss) of the year (861) (7,0%) (747) (6,2%) (162) (1,1%) SHAREHOLDERS' EQUITY ,7% ,8% ,7% TOTAL LIABILITIES ,0% ,0% ,0% Pagina 5

6 BIOLOGICAL PHARMA Tabella 2 Input data 2 Income Statement input 2010 Final 2011 Final 3Years aver Final Yearly variations Variation in turnover (%) n.d. -8% -2% 3% 7% 7% 7% 7% 7% Turnover (000) Absolute values Other operating revenues (000) Variation in work-in-progress orders (000) Work performed by entity and capitalised (000) Service provision, general and admin. expenses (000) (1.300) (1.102) (1.129) (985) (1.129) (1.129) (1.129) (1.129) (1.129) Other operating income and expenses (000) (83) (78) (91) (113) (91) (91) (91) (91) (91) Other personnel costs (000) Lease expenses (000) (1.565) (1.217) (1.116) (565) (565) (565) (565) (565) (565) Other taxes (000) (122) Other revenues from investments (000) Extraordinary items (000) (53) Other financial charges and expenses (000) Impact on production value Raw material and consumables used (%) 37% 39% 38% 36% 38% 38% 38% 38% 38% Outsourced manufacturing (%) 6% 6% 7% 7% 7% 7% 7% 7% 7% Industrial expenses and other industrial services (%) 2% 2% 2% 3% 3% 3% 3% 3% 3% R&D expenses (%) 0% 0% 0% 0% 0% 0% 0% 0% 0% Impact on turnover 0% 0% 0% 0% 0% Uncollectible accounts (%) 0% 0% 0% 0% 0% 0% 0% 0% 0% Selling expenses (%) 18% 15% 16% 15% 15% 15% 15% 15% 15% Provisions for risks and charges (%) 1,1% 0,8% 1% 0,7% Use of risks and charges provision Other Input Average number of employees Average cost per employee, net of share severance 35,12 33,02 33,55 32,51 33,51 33,91 33,91 33,98 33,98 Income taxation 1 (%) 0,0% 0,0% 0,0% 0,0% 27,5% 27,5% 27,5% 27,5% 27,5% Other taxation (%) 0,0% 0,0% 0,0% 0,0% 3,9% 3,9% 3,9% 3,9% 3,9% Share of employees' leaving indemnities (%) 5,7% 6,2% 5,9% 5,9% 5,0% 5,0% 5,0% 5,0% 5,0% Use of employees' leaving entitlement (50) (50) (50) (50) (50) Financial income on bank current accounts (%) 0,5% 0,5% 0,5% 0,5% 0,5% Financial charges on banks overdraft (%) 6,0% 5,7% 7,0% 9,4% 4,5% 4,5% 4,5% 4,5% 4,5% Financial charges on M/L loans 1,4% 1,3% 1,4% 1,6% Inventory of finished and semi fin. products Inventory of raw material and goods Input di Stato Patrimoniale 2010 Final 2011 Final 3Years aver Final Absolute values Other current debts Other current receivables Financial assets Borrowings M/L term Other consolidated liabilities Other specific reserves Impact on production value Prepayments and accrued income 8,4% 0,1% 3,0% 0,4% Accruals and deferred income 0,1% 1,5% 1,0% 1,3% 0,4% 0,4% 0,4% 0,4% 0,4% Other Input Average collection period (in days) Average payment period (in days) Days payable detailed data: Days payable raw materials Days payable asset purchase Days payable jobbing manufacturing Days payable industrial services Days payable general and admin. services Days payable selling services Days payable other Days payable on R&D expenses Days inventory fin. and semi-fin. products Days inventory raw materials and goods Other Input 2010 Final 2011 Final 3Years aver Final Frequency of VAT payments 2 VAT on purchases (%) 21% 21% 21% 21% 21% VAT on sales (%) 21% 21% 21% 21% 21% VAT on other revenues and income (%) 21% 21% 21% 21% 21% Share of profit distributed to shareholders (%) 0% 0% 0,0% 0% 10% 10% 10% 10% 10% Variation in loans from owners (000) - - Variation in Common stock (000) - - Dividends (000) Pagina 6

7 SALES AND PRODUCTION Units of products Forec. Units produced Unit cost of materials Total cost of materials Outsourced manuf. cost h. Internal manuf. Internal manuf. Cost Energia elett. produzione Manufact. costs Cost x unit produced num. Product/Service Product/Service Product/Service Product/Service Product/Service Product/Service Product/Service Product/Service Product/Service Product/Service Total Units of products Unit sold price Units sold Turnover start-up Transport costs Commissions payables Customers bonus Contribution margin % Contribution margin num. % Product/Service % Product/Service % Product/Service % Product/Service % Product/Service % Product/Service % Product/Service % Product/Service % Product/Service % Product/Service % Total % Pagina 7

8 EMPLOYEE COSTS Level Number empl. Gross year salary theo. x employee Gross year salary eff. x employee Social security contribut. Social security contribut. Postemployment benefits Overall costs yearly hours per employee Overall yearly hours Overall yearly hours Working hours (yield) % h h % h Owners/directors 1, , ,00 15,00% , , , % ,32 General and adm. Managers 1, , ,00 15,00% , , , % ,88 Sales and mkt managers 1, , ,00 15,00% , , , % ,88 Technical managers 1, , ,00 15,00% , , , % ,88 White-collars R&S 2, , ,00 35,00% , , , % ,35 White-collars of production 3, , ,00 35,00% , , , % ,35 Manual labor at manufacturing 32, , ,00 35,00% , , , % ,49 Manual labor ausiliary 3, , ,00 35,00% , , , % ,49 White-collars at sales and mkt 5, , ,00 35,00% , , , % ,35 White-collars at admin. 3, , ,00 35,00% , , , % ,83 Totali 52, , , , , Hourly cost Monthly distribution of costs staff (overall costs) Number employ. January February March April May June July August September October November December Total Owners/directors 1,00 - General and adm. Managers 1,00 - Sales and mkt managers 1,00 - Technical managers 1,00 - White-collars R&S 2,00 - White-collars of production 3,00 - Manual labor at manufacturing 32,00 - Manual labor ausiliary 3,00 - White-collars at sales and mkt 5,00 - White-collars at admin. 3,00 - Totali 52,00 - Pagina 8

9 BIOLOGICAL PHARMA Planned investments and relevant depreciation/amortization costs 2013 Amount (Excl. VAT) VAT rate VAT Depreciation, amort. rate Depreciation, amortization Asset description: /000 % /000 % /000 Plant and machinery ,0% 39 15,5% 29 Equipment 23 21,0% 5 25,0% 6 Mould 35 21,0% 7 20,0% 7 Furnitures 45 21,0% 9 20,0% 9 Computers 30 21,0% 6 20,0% 6 Other intangible assets ,0% 21 20,0% 20 Software 30 21,0% 6 20,0% Total Amount (Excl. VAT) VAT rate VAT Depreciation, amort. rate Depreciation, amortization Asset description: /000 % /000 % /000 Plant and machinery 75 21,0% 16 15,5% 12 Equipment ,0% 26 25,0% 31 Mould 40 21,0% 8 20,0% 8 Furnitures 25 21,0% 5 20,0% 5 Computers ,0% 32 20,0% 30 Other intangible assets 45 21,0% 9 20,0% 9 Software Total Amount (Excl. VAT) VAT rate VAT Depreciation, amort. rate Depreciation, amortization Asset description: /000 % /000 % /000 Plant and machinery ,0% 26 15,5% 19 Equipment ,0% 25 25,0% 30 Mould 15 21,0% 3 20,0% 3 Furnitures 15 21,0% 3 12,0% 2 Computers 25 21,0% 5 20,0% 5 Other intangible assets ,0% 32 20,0% 30 Software 25 21,0% 5 20,0% Total Amount (Excl. VAT) VAT rate VAT Depreciation, amort. rate Depreciation, amortization Asset description: /000 % /000 % /000 Pagina 9

10 BIOLOGICAL PHARMA Planned investments and relevant depreciation/amortization costs Plant and machinery ,0% 26 3,0% 4 Equipment ,0% 42 15,5% 31 Mould ,0% 42 25,0% 50 Furnitures 55 21,0% 12 20,0% 11 Computers 15 21,0% 3 12,0% 2 Other intangible assets 15 21,0% 3 20,0% 3 Software ,0% 32 20,0% 30-20,0% Total Amount (Excl. VAT) VAT rate VAT Depreciation, amort. rate Depreciation, amortization Asset description: /000 % /000 % /000 Plant and machinery 3 20,0% 1 3,0% 0 Equipment ,0% 60 15,5% 47 Mould ,0% 25 25,0% 31 Furnitures 60 20,0% 12 20,0% 12 Computers 40 20,0% 8 20,0% 8 Other intangible assets ,0% 32 20,0% 30 Software 25 21,0% 5 20,0% Total Summary table Years /000 /000 /000 /000 /000 Investiments Tangible assets Intangible assets VAT Depr./amort. overall Tangible assets depreciation Intangible asset amortisation Accumulated depreciation Accumulated amortisation Depr./amort. at Income statement Depreciation Ammortisation Pagina 10

11 BIOLOGICAL PHARMA Tables of depreciation/amortization costs NEW INVESTMENTS Gross value of tangible assets Yearly depreciation (47) (131) (190) (288) (368) Accumulated depreciation (47) (178) (368) (656) (1.024) Net value of tangible assets Gross value of intangible asset Yearly ammortization (1) (47) (82) (115) (162) Accumulated amortization (1) (48) (129) (244) (406) Net value of intangible assets PREVIOUS INVESTMENTS Historical cost of tangible assets Yearly depreciation (206) (206) (206) (206) (206) Accumulated depreciation (10.783) (10.988) (11.194) (11.399) (11.605) Net value of tangible assets Historical cost of intangible assets Yearly ammortization (187) Accumulated amortization (1.655) (1.655) (1.655) (1.655) (1.655) Net value of intangible assets Pagina 11

12 ANALYTIC CALCULATION OF HISTORICAL DATA PREVIOUS INVESTMENTS 2012 Final Historical cost of tangible assets Yearly depreciation 0 (206) (206) (206) (206) (206) Accumulated depreciation (10.577) (10.783) (10.988) (11.194) (11.399) (11.605) Net value of tangible assets Historical cost of intangible assets Yearly ammortisation 0 (187) Accumulated amortisation (1.468) (1.655) (1.655) (1.655) (1.655) (1.655) Net value of intangible assets Depreciation Tangible assets Historical Year of Accum. at cost purchase Rate Land 0 0% Building (637) 3% (72) (72) (72) (72) (72) Plant and machinery (1.917) 3% (60) (60) (60) (60) (60) Industrial equipment (6.879) 0% (29) (29) (29) (29) (29) Motorvehicols 656 (570) 3% (16) (16) (16) (16) (16) Office furniture and equipment 720 (574) 4% (28) (28) (28) (28) (28) Total (10.577) (206) (206) (206) (206) (206) Ammortisation Intangible assets Historical Year of Accum. at cost purchase Rate Establishment and enlargement costs 0% R&D, advertising costs 0% Trademarks, concessions and licences 88 (84) 0% Patent rights 570 (536) 20% (34) Other (848) 20% (153) % Total (1.468) (187) Accumulated depreciation Net Values Tangible assets Land Building (637) (709) (781) (853) (925) (997) Plant and machinery (1.917) (1.977) (2.038) (2.098) (2.158) (2.219) Industrial equipment (6.879) (6.908) (6.937) (6.965) (6.994) (7.023) (1) Motorvehicols (570) (586) (603) (619) (636) (652) Office furniture and equipment (574) (602) (630) (658) (686) (714) Totale (10.577) (10.783) (10.988) (11.194) (11.399) (11.605) Accumulated amortisation Net Values Intangible assets Establishment and enlargement costs R&D, advertising costs Trademarks, concessions and licences (84) (84) (84) (84) (84) (84) Patent rights (536) (570) (570) (570) (570) (570) Other (848) (1.001) (1.001) (1.001) (1.001) (1.001) Totale (1.468) (1.655) (1.655) (1.655) (1.655) (1.655) Pagina 12

13 Years /000 /000 /000 /000 /000 Sales Other operating income Costs for materials and services Finance lease Asset purchases VAT credit VAT debt Average rate on purchases 21% 21% 21% 21% 21% Average rate on sales 21% 21% 21% 21% 21% Average rate on other income 21% 21% 21% 21% 21% Pagina 13

14 DETTAGLIO OPERAZIONI DI FINANZIAMENTO A M/L TERMINE PREVISTE NEL PIANO 1st loan loan date: 01/01/2013 Start balance Interest Principal Final balance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,1 0,0 2a operazione loan date: 01/02/2013 Start balance Interest Principal Final balance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,0 105, ,0-0,0 3a operazione loan date: 01/05/2014 Start balance Interest Principal Final balance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,0 525, ,0-0,0 Pagina 14

15 4a operazione loan date: 01/01/2015 Start balance Interest Principal Final balance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,0 35, ,0-5a operazione loan date: 01/01/2016 Start balance Interest Principal Final balance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,0 35, ,0 - SUMMARY OF THE REIMBURSEMENT PROGRAM OF THE LOANS Go to the top Start balance Interest Principal Final balance , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,17 Pagina 15

16 DETTAGLIO OPERAZIONI DI LEASING PREVISTE NEL PIANO LEASE TRANSACTION N. 1 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/05/ Lease term LEASE TRANSACTION N. 1 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 12/03/ Lease term Pagina 16

17 LEASE TRANSACTION N. 1 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 12/04/ Lease term LEASE TRANSACTION N. 4 TICKLER OF THE PAYMENTS X YEAR Canone da versare Importo di competenza type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/01/ Lease term Pagina 17

18 LEASE TRANSACTION N. 5 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/01/ Lease term LEASE TRANSACTION N. 6 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/01/ Lease term Pagina 18

19 LEASE TRANSACTION N. 7 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/01/ Lease term LEASE TRANSACTION N. 8 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/01/ Lease term Pagina 19

20 LEASE TRANSACTION N. 9 TICKLER OF THE PAYMENTS X YEAR Amount to be paid Accrued amount type of asset purchased MACHINERY values in: POUNDS Lease value : Period. payment: Yearly payments: Annual int. Rate: 3,55% Purchase option: Paid in advance: Starting date: 01/01/ Lease term values in: POUNDS Amount to be paid Accrued amount FINANCIAL LEASE FORECAST TICKLER SUMMARY PAYMENTS FOR YEAR Pagina 20

21 BIOLOGICAL PHARMA Table 4 - Income Statement final and forecast Impresa in funzionamento Years 2010 Final 2011 Final 2012 Final 2013 Plan 2014 Plan 2015 Plan 2016 Plan 2017 Plan /000 % /000 % /000 % /000 % /000 % /000 % /000 % /000 % Sales and services revenues ,6% ,5% ,5% ,1% ,9% ,1% ,2% ,4% Other income 239 2,1% 227 2,0% 318 2,9% 318 2,6% 318 2,4% 318 2,3% 318 2,1% 318 2,0% Change in work in progress - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% VALUE OF PRODUCTION SOLD ,8% ,5% ,4% ,7% ,3% ,3% ,4% ,4% Work performed by entity and capitalised 58 0,5% 53 0,5% 77 0,7% 50 0,4% 50 0,4% 50 0,4% 50 0,3% 50 0,3% Variation in stocks w. in pr., fin. products (484) (4,3%) 341 3,0% (232) (2,1%) 114 0,9% 171 1,3% 183 1,3% 196 1,3% 210 1,3% VALUE OF PRODUCTION ,0% ,0% ,0% ,0% ,0% ,0% ,0% ,0% Purchase of raw material and subsidiary (4.090) (36,0%) (4.578) (40,5%) (4.011) (36,0%) (4.113) (33,6%) (5.133) (39,2%) (5.482) (39,2%) (5.856) (39,2%) (6.256) (39,2%) Variation in raw material, consum. and goods (155) (1,4%) 143 1,3% (13) (0,1%) (484) (4,0%) 206 1,6% 220 1,6% 235 1,6% 252 1,6% CONSUMPTIONS (4.245) (37,4%) (4.435) (39,3%) (4.024) (36,1%) (4.596) (37,6%) (4.927) (37,6%) (5.262) (37,6%) (5.621) (37,6%) (6.005) (37,6%) Outsourced manufacturing (700) (6,2%) (705) (6,2%) (799) (7,2%) (877) (7,2%) (940) (7,2%) (1.004) (7,2%) (1.072) (7,2%) (1.146) (7,2%) Manufacturing costs and services (206) (1,8%) (253) (2,2%) (281) (2,5%) (367) (3,0%) (393) (3,0%) (420) (3,0%) (449) (3,0%) (479) (3,0%) Selling expenses (2.068) (18,2%) (1.583) (14,0%) (1.643) (14,7%) (1.762) (14,4%) (1.885) (14,4%) (2.017) (14,4%) (2.159) (14,4%) (2.310) (14,5%) Administrative and general expenses (1.300) (11,4%) (1.102) (9,8%) (985) (8,8%) (1.129) (9,2%) (1.129) (8,6%) (1.129) (8,1%) (1.129) (7,5%) (1.129) (7,1%) R&D costs - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% Other expenses (+) revenues(-) (83) (0,7%) (78) (0,7%) (113) (1,0%) (91) (0,7%) (91) (0,7%) (91) (0,7%) (91) (0,6%) (91) (0,6%) SERVICES AND OTHER OPER. COSTS (4.357) (38,4%) (3.721) (32,9%) (3.821) (34,3%) (4.226) (34,6%) (4.439) (33,9%) (4.662) (33,3%) (4.900) (32,8%) (5.155) (32,3%) VALUE ADDED ,3% ,8% ,6% ,9% ,6% ,1% ,7% ,1% Wages, salaries and social securities (2.002) (17,6%) (2.014) (17,8%) (1.983) (17,8%) (2.044) (16,7%) (2.102) (16,0%) (2.102) (15,0%) (2.141) (14,3%) (2.141) (13,4%) Employees benefits (115) (1,0%) (124) (1,1%) (117) (1,1%) (102) (0,8%) (105) (0,8%) (105) (0,8%) (107) (0,7%) (107) (0,7%) Other costs - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% EMPLOYEE COSTS (2.117) (18,6%) (2.138) (18,9%) (2.100) (18,8%) (2.146) (17,6%) (2.208) (16,8%) (2.208) (15,8%) (2.248) (15,0%) (2.248) (14,1%) GROSS OPERATING PROFIT (EBITDA) 640 5,6% ,9% ,7% ,3% ,7% ,4% ,6% ,1% Tangible fixed assed depreciation (330) (2,9%) (295) (2,6%) (323) (2,9%) (253) (2,1%) (337) (2,6%) (396) (2,8%) (493) (3,3%) (574) (3,6%) Intangible fixed assed amortization (122) (1,1%) (99) (0,9%) (93) (0,8%) (188) (1,5%) (47) (0,4%) (82) (0,6%) (115) (0,8%) (162) (1,0%) Current credits depreciations (6) (0,1%) (5) (0,0%) - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% Lease expenses (1.565) (13,8%) (1.217) (10,8%) (565) (5,1%) (673) (5,5%) (681) (5,2%) (681) (4,9%) (681) (4,6%) (681) (4,3%) Provisions for risks and charges (126) (1,1%) (86) (0,8%) (75) (0,7%) - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% TOTAL DEPREC./AMORT., FIN. LEASE (2.149) (18,9%) (1.702) (15,1%) (1.056) (9,5%) (1.114) (9,1%) (1.064) (8,1%) (1.159) (8,3%) (1.289) (8,6%) (1.416) (8,9%) NET OPERATING PROFIT (EBIT) (1.509) (13,3%) (701) (6,2%) 141 1,3% 147 1,2% 471 3,6% 711 5,1% 897 6,0% ,2% Financial earnings 9 0,1% 12 0,1% 7 0,1% 8 0,1% 2 0,0% 1 0,0% - 0,0% - 0,0% Other revenues from investments - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% EARNING FROM INVESTMENTS 9 0,1% 12 0,1% 7 0,1% 8 0,1% 2 0,0% 1 0,0% - 0,0% - 0,0% PROFIT (LOSS) BY INVESTED CAPITAL (1.500) (13,2%) (689) (6,1%) 148 1,3% 154 1,3% 473 3,6% 712 5,1% 897 6,0% ,2% Interest on short-term loans (40) (0,4%) (31) (0,3%) (35) (0,3%) (7) (0,1%) - 0,0% (12) (0,1%) (101) (0,7%) (172) (1,1%) Interest on medium/long-term loans (90) (0,8%) (80) (0,7%) (100) (0,9%) (260) (2,1%) (328) (2,5%) (307) (2,2%) (346) (2,3%) (188) (1,2%) Other financial charges - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% INTEREST AND SIMILAR CHARGES (130) (1,1%) (111) (1,0%) (135) (1,2%) (267) (2,2%) (328) (2,5%) (320) (2,3%) (448) (3,0%) (360) (2,3%) PROFIT/(LOSS) FOR THE YEAR (1.630) (14,3%) (800) (7,1%) 13 0,1% (113) (0,9%) 146 1,1% 392 2,8% 450 3,0% 793 5,0% EXTRAORDINARY ITEMS 698 6,1% - 0,0% (53) (0,5%) - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% PROFIT/(LOSS) BEFORE TAXATION (932) (8,2%) (800) (7,1%) (40) (0,4%) (113) (0,9%) 146 1,1% 392 2,8% 450 3,0% 793 5,0% Income tax of the year - 0,0% - 0,0% - 0,0% (107) (0,9%) (119) (0,9%) (132) (0,9%) (146) (1,0%) (161) (1,0%) Deferred income tax - 0,0% - 0,0% - 0,0% - 0,0% (40) (0,3%) (108) (0,8%) (124) (0,8%) (218) (1,4%) Other tax 71 0,6% 53 0,5% (122) (1,1%) 1 0,0% 1 0,0% 1 0,0% 1 0,0% 1 0,0% TAX EXPENSES 71 0,6% 53 0,5% (122) (1,1%) (106) (0,9%) (159) (1,2%) (240) (1,7%) (269) (1,8%) (379) (2,4%) NET PROFIT/(LOSS) (861) (7,6%) (747) (6,6%) (162) (1,5%) (219) (1,8%) (13) (0,1%) 153 1,1% 180 1,2% 414 2,6% Pagina 21

22 BIOLOGICAL PHARMA Table 5 - Balance Sheet final and forecast Impresa in funzionamento Years 2010 Final 2011 Final 2012 Final 2013 Plan 2014 Plan 2015 Plan 2016 Plan 2017 Plan /000 % /000 % /000 % /000 % /000 % /000 % /000 % /000 % Liquidity 71 0,6% 112 0,9% ,9% 430 3,5% 473 3,7% - 0,0% - 0,0% - 0,0% Trade receivables ,0% 941 7,8% 882 6,3% ,4% ,7% ,7% ,9% ,3% Other receivables ,3% ,6% 872 6,2% 751 6,1% 751 5,8% 751 5,8% 751 5,5% 751 5,3% Inventory ,1% ,9% ,9% ,1% ,8% ,7% ,2% ,4% Prepayments and accrued income 951 7,8% 10 0,1% 47 0,3% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% VAT receivable - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% CURRENT ASSETS ,7% ,4% ,6% ,2% ,0% ,2% ,6% ,9% Tangible fixed assets ,1% ,1% ,4% ,0% ,0% ,1% ,8% ,2% Intangible fixed assets 276 2,3% 229 1,9% 191 1,4% 133 1,1% 206 1,6% 300 2,3% 350 2,6% 424 3,0% Financial fixed assets 728 6,0% 682 5,7% 659 4,7% 700 5,7% 700 5,4% 700 5,4% 700 5,1% 700 4,9% FIXED ASSET ,3% ,6% ,4% ,8% ,0% ,8% ,4% ,1% TOTAL ASSETS ,0% ,0% ,0% ,0% ,0% ,0% ,0% ,0% Banks overdraft and current loans 671 5,5% 425 3,5% 321 2,3% - 0,0% - 0,0% 548 4,2% ,9% ,7% Trade payables ,5% ,9% ,2% ,4% ,3% ,7% ,7% ,9% Trade payables for purchase of asset - 0,0% - 0,0% - 0,0% 20 0,2% 85 0,7% 75 0,6% 149 1,1% 117 0,8% Other current payables 609 5,0% 850 7,1% 417 3,0% - 0,0% - 0,0% 15 0,1% 18 0,1% 41 0,3% Accruals and deferred income 6 0,0% 170 1,4% 149 1,1% 49 0,4% 52 0,4% 56 0,4% 60 0,4% 64 0,4% CURRENT DEBTS ,0% ,9% ,5% ,0% ,3% ,1% ,2% ,1% Employees' leaving entitlement 605 4,9% 603 5,0% 566 4,0% 618 5,0% 673 5,2% 728 5,6% 785 5,7% 843 5,9% M/L term loans ,5% ,4% ,0% ,7% ,0% ,9% ,2% ,9% Provisions for risks and charges 841 6,9% 837 7,0% 957 6,8% 957 7,8% 957 7,4% 957 7,4% 957 7,0% 957 6,7% Loans from owners - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% Other non current liabilities - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% NON CURRENT DEBTS ,3% ,4% ,8% ,6% ,6% ,9% ,9% ,5% TOTAL DEBTS ,3% ,2% ,3% ,6% ,9% ,0% ,2% ,6% Common stock ,6% ,1% ,8% ,6% ,2% ,0% ,5% ,5% Legal Reserve 300 2,5% - 0,0% (1) 0,0% (1) 0,0% (1) 0,0% (1) 0,0% 7 0,0% 16 0,1% Other specific reserves - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% Retained Earnings (1.019) -8,3% (1.580) -13,1% - 0,0% (162) -1,3% (381) -3,0% (394) -3,0% (264) -1,9% (111) -0,8% Net income (loss) of the year (861) -7,0% (747) -6,2% (162) -1,1% (219) -1,8% (13) -0,1% 153 1,2% 180 1,3% 414 2,9% Dividends to pay - 0,0% - 0,0% - 0,0% - 0,0% - 0,0% (15) -0,1% (18) -0,1% (41) -0,3% SHAREHOLDERS' EQUITY ,7% ,8% ,7% ,4% ,1% ,0% ,8% ,4% TOTAL LIABILITIES ,0% ,0% ,0% ,0% ,0% ,0% ,0% ,0% Pagina 22

23 BIOLOGICAL PHARMA Table 6 - Cash Flow Statement final and forecast Impresa in funzionamento Anni 2011 Cons Cons OPERATING ACTIVITIES /000 /000 /000 /000 /000 /000 /000 Net profit (Loss) from the period (701) Depreciation and amortisation Current credits depreciations 5 Allocations for risks and charges Employees Benefits CASH GENER. FROM OPER. ACTIV. (92) CHANGE IN WORKING CAPITAL: (Increase)/Decrease in trade receivables (1.129) (137) (147) (157) (168) (Increase)/Decrease VAT receivables - (Increase)/Decrease in other receivables (142) (Increase)/Decrease in inventories (484) (377) (403) (432) (462) (Incr)/Decr. prep. and accrued income 941 (37) Increase/(Decrease) in trade payables (846) (95) Incr./(Decr.) in trade payables (assets) (10) 74 (32) Increase/(Decrease) in other payables 241 (433) (417) Increase/(Decrease) in provisions for risks (90) Incr./(Decr.)Accruals and deferred income 164 (21) (100) CASH FLOW FROM OPER. ACTIV (1.245) INVESTMENT ACTIVITIES Net investments tangible assets (610) (428) (78) (340) (300) (595) (468) Investment in intangible assets (52) (55) (130) (120) (175) (165) (235) Investment in financial assets (41) CASH FLOW FROM INVEST. ACTIV. (616) (460) (249) (460) (475) (760) (703) FINANCING ACTIVITIES Increase/(Decrease) in m/l term loans - 46 (9) 617 (739) (3.036) 384 Change in other long-term liabilities - Other revenues from investments - Incr./(Decr.) in retir. funds/empl. benefits (126) (154) (50) (50) (50) (50) (50) Interest on medium/long-term loans (80) (100) (260) (328) (307) (346) (188) Increase in equity - Dividends paid (15) (18) Loans from owners - Variation in specific reserves (0) 0 Extraordinary items - (53) Taxation 53 (122) (106) (159) (240) (269) (379) Other financial charges - Short-term financial income Short-term borrowing costs (31) (35) (7) - (12) (101) (172) Pagina 23

24 BIOLOGICAL PHARMA Table 7 - Financial Ratio Analysis Anni 2010 Cons Cons Cons Growth Ratios % % % % % % % % Variation in Sales n.d. (7,6%) 2,9% 7,0% 7,0% 7,0% 7,0% 7,0% Variation in Capital Invested n.d. (1,7%) 17,2% (13,1%) 5,2% 0,6% 5,7% 4,4% Rate of Return on Investment by Shareholders (ROE) Net profit/total Equity (ROE) (44,8%) (63,7%) (4,9%) (7,0%) (0,4%) 4,7% 5,3% 11,0% Leverage Ratios Total Debt/Total Equity (Debt-to-equity ratio) 537,0% 925,1% 322,4% 293,1% 315,2% 299,9% 302,6% 278,6% Total equity/total Fixed Assets (Self Coverage Ratio) 55,5% 31,8% 89,5% 88,2% 86,0% 89,8% 90,5% 101,3% N-curr. debt+tot. Equity/Total Fix. Assets (Glob. cov. ratio) 279,3% 242,0% 300,7% 312,0% 323,6% 308,7% 221,4% 245,1% Total Equity/Total Assets 15,7% 9,8% 23,7% 25,4% 24,1% 25,0% 24,8% 26,4% Liquidity Ratios Current Assets/Current liabilities (Current ratio) 341,9% 268,1% 358,7% 711,1% 772,6% 513,6% 184,9% 204,8% Current Assets - inventory/current Liabilities (Quick ratio) 122,2% 71,4% 154,6% 260,2% 280,8% 167,2% 59,5% 65,3% Current Assets/Total Liabilities 71,7% 69,4% 73,6% 71,2% 72,0% 72,2% 72,6% 73,9% Gross Working Capital/Value of production 70,5% 77,3% 78,9% 71,1% 69,6% 69,5% 69,5% 69,4% Intangible Assets/Total Equity 14,4% 19,5% 5,7% 4,3% 6,6% 9,2% 10,3% 11,2% Cash Flow/Capital Invested n.d. (0,8%) 5,3% 5,6% 7,4% 10,0% 11,8% 13,9% Solvency Ratios Cash Flow/Sales n.d. 2,7% 24,2% (16,3%) 0,3% (7,6%) (23,7%) 1,9% Finan. Activities/Operat. Activities 8,0% 14,1% (90,8%) (177,1%) (69,1%) (44,8%) (49,9%) (31,2%) Net Financial Position/Total Equity 359,4% 563,8% 119,8% 189,5% 208,8% 209,1% 210,2% 192,6% Net Financial Position/EBITDA 1078,1% 660,6% 334,0% 468,7% 422,1% 362,6% 327,2% 283,3% Financial Charges/EBITDA 20,3% 11,1% 11,3% 21,2% 21,3% 17,1% 20,5% 14,0% EBITDA/Sales 5,5% 9,4% 10,9% 10,7% 12,2% 13,9% 15,2% 16,7% Profitability Ratios EBIT/Total Assets (ROI) (12,3%) (5,8%) 1,0% 1,2% 3,7% 5,5% 6,5% 8,1% EBIT/Sales (ROS) (13,1%) (6,6%) 1,3% 1,2% 3,7% 5,3% 6,2% 7,5% Sales/Total Assets (Turnover) 94,4% 88,8% 77,9% 95,8% 97,5% 103,7% 105,0% 107,7% Profit for the year/net Profit 189,3% 107,1% (8,0%) 51,6% (1109,2%) 257,0% 249,4% 191,4% Profit for the year/turnover (14,1%) (7,5%) 0,1% (1,0%) 1,2% 2,9% 3,1% 5,2% Profit for the year/total Assets (13,3%) (6,7%) 0,1% (0,9%) 1,1% 3,0% 3,3% 5,5% Efficiency Ratios Value Added/Sales 23,4% 28,8% 29,2% 28,2% 29,0% 29,6% 30,1% 30,6% Personnel expenses/sales 18,0% 19,6% 18,6% 17,8% 17,1% 16,0% 15,3% 14,3% Depr.-Amortis.-Finance Lease/Sales 18,2% 15,6% 9,3% 9,2% 8,3% 8,4% 8,8% 9,0% Consumption/Sales 36,0% 40,7% 35,6% 38,1% 38,2% 38,2% 38,2% 38,2% Services and Other Oper. Costs/Sales 37,0% 34,1% 33,8% 35,0% 34,4% 33,9% 33,3% 32,8% Interests and Financial Charges/Sales 1,1% 1,0% 1,2% 2,3% 2,6% 2,4% 3,1% 2,3% Pagina 24

25 8,0% Variation in Sales 20,000% Variation in Capital Invested 6,0% 15,000% 4,0% 10,000% 2,0% 0,0% 5,000% (2,0%),000% (4,0%) -5,000% (6,0%) (8,0%) (10,0%) 2011 Cons Cons ,000% -15,000% 2010 Cons Cons Cons Net profit/total Equity (ROE) Total Debt/Total Equity (Debt-to-equity ratio) 20% 1000% 10% 900% 0% -10% -20% -30% -40% -50% -60% 800% 700% 600% 500% 400% 300% 200% 100% -70% 2010 Cons Cons Cons % 2010 Cons Cons Cons Pagina 25

26 120,0% Total equity/total Fixed Assets (Self Coverage Ratio) 350,0% N-curr. debt+tot. Equity/Total Fix. Assets (Glob. cov. ratio) 100,0% 300,0% 80,0% 250,0% 60,0% 40,0% 20,0% 200,0% 150,0% 100,0% 50,0% 0,0% 2010 Cons Cons Cons ,0% 2010 Cons Cons Cons ,0% Total Equity/Total Assets 900,0% Current Assets/Current liabilities (Current ratio) 25,0% 20,0% 800,0% 700,0% 600,0% 15,0% 10,0% 500,0% 400,0% 300,0% 5,0% 0,0% 2010 Cons Cons Cons ,0% 100,0% 0,0% 2010 Cons Cons Cons Pagina 26

27 Current Assets/Total Liabilities Gross Working Capital/Value of production 75,0% 80,0% 74,0% 78,0% 73,0% 76,0% 72,0% 74,0% 71,0% 72,0% 70,0% 70,0% 69,0% 68,0% 68,0% 66,0% 67,0% 2010 Cons Cons Cons ,0% 2010 Cons Cons Cons ,0% EBIT/Total Assets (ROI) 10,0% EBIT/Sales (ROS) 5,0% 5,0% 0,0% 0,0% (5,0%) (5,0%) (10,0%) (10,0%) (15,0%) 2010 Cons Cons Cons (15,0%) 2010 Cons Cons Cons Pagina 27

28 Consumption/Sales Interests and Financial Charges/Sales 42,0% 3,5% 41,0% 40,0% 39,0% 38,0% 3,0% 2,5% 2,0% 37,0% 36,0% 35,0% 34,0% 1,5% 1,0% 0,5% 33,0% 2010 Cons Cons Cons ,0% 2010 Cons Cons Cons Pagina 28

29 Table 5a - Table of comparison between final and forec. data of Income Statement BIOLOGICAL PHARMA Years 2010 Final 2011 Final 2012 Final /000 /000 /000 /000 /000 /000 /000 /000 Sales and services revenues Other income Change in work in progress - - VALUE OF PRODUCTION SOLD Work performed by entity and capitalised Variation in stocks w. in pr., fin. products (484) 341 (232) VALUE OF PRODUCTION Purchase of raw material and subsidiary (4.090) (4.578) (4.011) (4.113) (5.133) (5.482) (5.856) (6.256) Variation in raw material, consum. and goods (155) 143 (13) (484) CONSUMPTIONS (4.245) (4.435) (4.024) (4.596) (4.927) (5.262) (5.621) (6.005) Outsourced manufacturing (700) (705) (799) (877) (940) (1.004) (1.072) (1.146) Manufacturing costs and services (206) (253) (281) (367) (393) (420) (449) (479) Salling expenses (2.068) (1.583) (1.643) (1.762) (1.885) (2.017) (2.159) (2.310) Administrative and general expenses (1.300) (1.102) (985) (1.129) (1.129) (1.129) (1.129) (1.129) R&D costs - - Other expenses (+) revenues(-) (83) (78) (113) (91) (91) (91) (91) (91) SERVICES AND OTHER OPER. COST (4.357) (3.721) (3.821) (4.226) (4.439) (4.662) (4.900) (5.155) VALUE ADDED Wages, salaries and social securities (2.002) (2.014) (1.983) (2.044) (2.102) (2.102) (2.141) (2.141) Employees benefits (115) (124) (117) (102) (105) (105) (107) (107) Other costs - - EMPLOYEE COSTS (2.117) (2.138) (2.100) (2.146) (2.208) (2.208) (2.248) (2.248) GROSS OPERATING PROFIT (EBITDA) Tangible fixed assed depreciation (330) (295) (323) (253) (337) (396) (493) (574) Intangible fixed assed amortization (122) (99) (93) (188) (47) (82) (115) (162) Current credits depreciations (6) (5) Lease expenses (1.565) (1.217) (565) (673) (681) (681) (681) (681) Provisions for risks and charges (126) (86) (75) TOTAL DEPREC./AMORT., FIN. LEASE (2.149) (1.702) (1.056) (1.114) (1.064) (1.159) (1.289) (1.416) NET OPERATING PROFIT (EBIT) (1.509) (701) Financial earning Other revenues from investments - - EARNING FROM INVESTMENTS PROFIT (LOSS) BY INVESTED CAPITAL (1.500) (689) Interest on short-term loans (40) (31) (35) (7) - (12) (101) (172) Interest on medium/long-term loans (90) (80) (100) (260) (328) (307) (346) (188) Other financial charges - - INTEREST AND SIMILAR CHARGES (130) (111) (135) (267) (328) (320) (448) (360) PROFIT/(LOSS) FOR THE YEAR (1.630) (800) 13 (113) EXTRAORDINARY ITEMS (53) PROFIT/(LOSS) BEFORE TAXATION (932) (800) (40) (113) Income tax of the year (107) (119) (132) (146) (161) Deferred income tax (40) (108) (124) (218) Other tax (122) TAX EXPENSES (122) (106) (159) (240) (269) (379) NET PROFIT/(LOSS) (861) (747) (162) (219) (13) Pagina 29

30 BIOLOGICAL PHARMA Table 5b - Table of comparison Income Statement (variations %) Anni 2011 Final 2012 Final % % % % % % % VALUE OF PRODUCTION SOLD (7,5%) 3,6% 6,8% 6,8% 6,8% 6,8% 6,8% VALUE OF PRODUCTION (0,6%) (1,4%) 9,8% 7,2% 6,8% 6,8% 6,8% CONSUMPTIONS 4,5% (9,3%) 14,2% 7,2% 6,8% 6,8% 6,8% SERVICES AND OTHER OPER. COST (14,6%) 2,7% 10,6% 5,0% 5,0% 5,1% 5,2% VALUE ADDED 13,9% 5,0% 3,3% 9,9% 8,9% 8,8% 8,6% EMPLOYEE COSTS 1,0% (1,8%) 2,2% 2,9% 0,0% 1,8% 0,0% GROSS OPERATING PROFIT (EBITDA) 56,4% 19,6% 5,3% 21,8% 21,8% 17,0% 17,5% TOTAL DEPREC./AMORT., FIN. LEASE (20,8%) (38,0%) 5,5% (4,4%) 8,8% 11,3% 9,9% NET OPERATING PROFIT (EBIT) (53,5%) (120,1%) 3,9% 221,4% 50,9% 26,2% 28,4% EARNING FROM INVESTMENTS 33,3% (41,7%) 10,7% (70,9%) (47,6%) (100,0%) 0,0% PROFIT (LOSS) BY INVESTED CAPITAL (54,1%) (121,5%) 4,2% 206,8% 50,4% 26,0% 28,4% INTEREST AND SIMILAR CHARGES (14,6%) 21,6% 97,9% 22,6% (2,4%) 40,0% (19,7%) PROFIT/(LOSS) FOR THE YEAR (50,9%) (101,6%) (968,8%) (229,0%) 169,3% 14,6% 76,4% EXTRAORDINARY ITEMS (100,0%) 0,0% (100,0%) 0,0% 0,0% 0,0% 0,0% PROFIT/(LOSS) BEFORE TAXATION (14,2%) (95,0%) 182,3% (229,0%) 169,3% 14,6% 76,4% TAX EXPENSES (25,4%) (330,2%) (13,2%) 49,9% 50,9% 12,4% 40,6% NET PROFIT/(LOSS) (13,2%) (78,3%) 35,1% (94,0%) (1261,9%) 18,1% 129,9% Pagina 30

31 BREAK-EVEN POINT CHART AT CURRENT PRICES AND UNIT SALES ACTUAL AND CHANGED B.E.P. Chart at current prices BIOLOGICAL PHARMA Value Number of sales Operating Surplus Variable Costs Fixed Costs Total Costs Business Revenue Breakeven Point Revenue Situation as 1st year of forecast Alternative hypotheses with variation in the number of units sold Pagina 31

32 eturn to the Break Even Analysis page BREAK EVEN TABLES Current Price Breakeven Table Unit Sales Price 2,73 Input Point Variable Costs per Unit 1,74 Number of Sales Business Revenue Variable Costs Fixed Costs Total Costs Operating Surplus Surplus % N/A -44% -4,1% 9% 16% Breakeven Point Revenue Breakeven Point num. of Sales Increased Price Breakeven Table Unit Sales Price 3,13 Input Point Variable Costs per Unit 1,74 Number of Sales Business Revenue Variable Costs Fixed Costs Total Costs Operating Surplus Surplus % N/A -38,0% 3,3% 17,1% 23,9% Breakeven Point Revenue Breakeven Point num. of Sales Decreased Price Breakeven Table Unit Sales Price 2,32 Input Point Variable Costs per Unit 1,74 Number of Sales Business Revenue Variable Costs Fixed Costs Total Costs Operating Surplus Surplus % N/A -57,55% -16,27% -2,51% 4,37% Breakeven Point Revenue Breakeven Point num. of Sales Decrease Current Increase Unit Sales Price 2,32 2,73 3,13 Number of Sales Business Revenue Operating Surplus Pagina 32

33 Optimum Price Breakeven Table Unit Sales Price 3,60 Variable Costs per Unit 1,74 Input Point Number of Sales Business Revenue Variable Costs Fixed Costs Total Costs Operating Surplus Surplus % N/A -38% 7% 22% 29% Breakeven Point Revenue Breakeven Point num. of Sales Optimum Price asks that the actual price will be increased of: 32% Pagina 33

34 OPERATIONAL BUDGET January February March April May June /000 /000 /000 /000 /000 /000 Sales and services revenues Other income Change in work in progress Work perf. by entity and capitalised Variation in stocks w. in pr., fin. Prod. VALUE OF PRODUCTION Purchase of raw material and subs. (343) (343) (343) (343) (343) (343) Var in raw mat., consum. and goods CONSUMPTIONS (343) (343) (343) (343) (343) (343) Outsourced manufacturing (73) (73) (73) (73) (73) (73) Manufacturing costs and services (31) (31) (31) (31) (31) (31) Selling expenses (147) (147) (147) (147) (147) (147) Administrative and general expenses (94) (94) (94) (94) (94) (94) R&D costs Other expenses (+) revenues(-) (8) (8) (8) (8) (8) (8) SERVICES AND OTHER OP. COSTS (352) (352) (352) (352) (352) (352) VALUE ADDED Employee costs (179) (179) (179) (179) (179) (179) GROSS OPERATING PROFIT Deprec.,amort. and provisions (37) (37) (37) (37) (37) (37) Lease expenses (47) (47) (48) (54) (50) (50) NET OPERATING PROFIT (EBIT) Earning from investments Interest and similar charges (19) (18) (19) (19) (19) (19) PROFIT/(LOSS) FOR THE YEAR 236 (6) Extraordinary items PROFIT/(LOSS) BEFORE TAXATION 236 (6) Pagina 34

35 OPERATIONAL BUDGET Sales and services revenues Other income Change in work in progress Work perf. by entity and capitalised Variation in stocks w. in pr., fin. Prod. VALUE OF PRODUCTION Purchase of raw material and subs. Var in raw mat., consum. and goods CONSUMPTIONS Outsourced manufacturing Manufacturing costs and services Selling expenses Administrative and general expenses R&D costs Other expenses (+) revenues(-) SERVICES AND OTHER OP. COSTS VALUE ADDED Employee costs GROSS OPERATING PROFIT Deprec.,amort. and provisions Lease expenses NET OPERATING PROFIT (EBIT) Earning from investments Interest and similar charges PROFIT/(LOSS) FOR THE YEAR Extraordinary items PROFIT/(LOSS) BEFORE TAXATION July August September October November December TOTAL /000 /000 /000 /000 /000 /000 / (343) (343) (343) (343) (343) (344) (4.113) (484) (484) (343) (343) (343) (343) (343) (828) (4.596) (73) (73) (73) (73) (73) (73) (877) (31) (31) (31) (31) (31) (31) (367) (147) (147) (147) (147) (147) (147) (1.762) (94) (94) (94) (94) (94) (94) (1.129) - (8) (8) (8) (8) (8) (8) (91) (352) (352) (352) (352) (352) (354) (4.226) 517 (695) (99) (179) (179) (179) (179) (179) (180) (2.146) 338 (873) (25) (278) (37) (37) (37) (37) (37) (37) (441) (50) (55) (50) (50) (50) (56) (604) 252 (965) (112) 9 9 (371) (19) (161) (19) (19) (21) (21) (369) 233 (1.126) (130) (9) (11) (384) (145) (1.126) (130) (9) (11) (384) (145) Pagina 35

36 BIOLOGICAL PHARMA CAPITAL BUDGET YEAR 2013 Planned investments 2013 January February March Net amount VAT Net amount VAT Net amount VAT Asset description: /000 /000 /000 /000 /000 /000 Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total Planned payments for investments Net amount VAT Net amount VAT Net amount VAT Asset description: ' 000 ' 000 ' 000 ' 000 ' 000 ' 000 Residual debt previous year January February March Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total Pagina 36

37 BIOLOGICAL PHARMA Planned investments 2013 Asset description: Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total CAPITAL BUDGET YEAR 2013 April May June Net amount VAT Net amount VAT Net amount VAT /000 /000 /000 /000 /000 / Planned payments for investments 2013 Asset description: Residual debt previous year Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total April May June Net amount VAT Net amount VAT Net amount VAT ' 000 ' 000 ' 000 /000 /000 / Pagina 37

38 BIOLOGICAL PHARMA Planned investments 2013 Asset description: Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total CAPITAL BUDGET YEAR 2013 July August September Net amount VAT Net amount VAT Net amount VAT /000 /000 /000 /000 /000 / Planned payments for investments 2013 Asset description: Residual debt previous year Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total July August September Net amount VAT Net amount VAT Net amount VAT /000 /000 /000 /000 /000 / Pagina 38

39 BIOLOGICAL PHARMA Planned investments 2013 Asset description: Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total CAPITAL BUDGET YEAR 2013 October November December Total Net amount VAT Net amount VAT Net amount VAT Net amount VAT /000 /000 /000 /000 /000 /000 /000 / Planned payments for investments 2013 Asset description: Residual debt previous year Plant and machinery Equipment Mould Furnitures Computers Other intangible assets Software Total October November December Total Net amount VAT Net amount VAT Net amount VAT Net amount VAT /000 /000 /000 /000 /000 /000 /000 / Pagina 39

40 CASH FLOW ANALYSIS OPERATING ACTIVITIES January February March /000 /000 /000 Cash from previous receivables Cash from turnover of the period Cash from other income TOTAL CASH INFLOW FROM OP. ACT Previous payables Purchase of raw material and subsidiary Purchase of fixed assets Previous lease payments (57) (57) (57) New lease payments Outsourced manufacturing Manufacturing costs and services Selling expenses Administrative and general expenses R&D costs Other expenses Employee expenses VAT balance payment Taxes payment TOTAL CASH EXPENDITURES FROM OP. ACT. (536) (609) (960) BALANCE OPERATING ACTIVITIES EXTRAORDINARY ACTIVITIES Extraordinary cash inflows Extraordinary cash outflows BALANCE EXTRAORDINARY ACTIVITIES FINANCING ACTIVITIES Cash inflow of Loans Cash inflow of Loans from owners Cash inflow of Debenture bonds Variation in Common stock Dividens by parent companies TOTAL FINANCIAL INFLOWS Loans payments Dividends payments TOTAL FINANCIAL OUTFLOWS BALANCE FINANCING ACTIVITIES NET CASH FLOW Pagina 40

41 CASH FLOW ANALYSIS OPERATING ACTIVITIES Cash from previous receivables Cash from turnover of the period Cash from other income April May June /000 /000 / TOTAL CASH INFLOW FROM OP. ACT. Previous payables Purchase of raw material and subsidiary Purchase of fixed assets Previous lease payments New lease payments Outsourced manufacturing Manufacturing costs and services Selling expenses Administrative and general expenses R&D costs Other expenses Employee expenses VAT balance payment Taxes payment TOTAL CASH EXPENDITURES FROM OP. ACT. BALANCE OPERATING ACTIVITIES (57) (57) (57) (1.727) (1.369) (1.369) EXTRAORDINARY ACTIVITIES Extraordinary cash inflows Extraordinary cash outflows BALANCE EXTRAORDINARY ACTIVITIES FINANCING ACTIVITIES Cash inflow of Loans Cash inflow of Loans from owners Cash inflow of Debenture bonds Variation in Common stock Dividens by parent companies TOTAL FINANCIAL INFLOWS Loans payments Dividends payments TOTAL FINANCIAL OUTFLOWS BALANCE FINANCING ACTIVITIES NET CASH FLOW Pagina 41

42 CASH FLOW ANALYSIS OPERATING ACTIVITIES Cash from previous receivables Cash from turnover of the period Cash from other income July August September /000 /000 / TOTAL CASH INFLOW FROM OP. ACT. Previous payables Purchase of raw material and subsidiary Purchase of fixed assets Previous lease payments New lease payments Outsourced manufacturing Manufacturing costs and services Selling expenses Administrative and general expenses R&D costs Other expenses Employee expenses VAT balance payment Taxes payment TOTAL CASH EXPENDITURES FROM OP. ACT. BALANCE OPERATING ACTIVITIES (57) (57) (57) (1.215) (1.201) (1.115) EXTRAORDINARY ACTIVITIES Extraordinary cash inflows Extraordinary cash outflows BALANCE EXTRAORDINARY ACTIVITIES FINANCING ACTIVITIES Cash inflow of Loans Cash inflow of Loans from owners Cash inflow of Debenture bonds Variation in Common stock Dividens by parent companies TOTAL FINANCIAL INFLOWS Loans payments Dividends payments TOTAL FINANCIAL OUTFLOWS BALANCE FINANCING ACTIVITIES NET CASH FLOW Pagina 42

43 CASH FLOW ANALYSIS OPERATING ACTIVITIES Cash from previous receivables Cash from turnover of the period Cash from other income TOTAL CASH INFLOW FROM OP. ACT. Previous payables Purchase of raw material and subsidiary Purchase of fixed assets Previous lease payments New lease payments Outsourced manufacturing Manufacturing costs and services Selling expenses Administrative and general expenses R&D costs Other expenses Employee expenses VAT balance payment Taxes payment TOTAL CASH EXPENDITURES FROM OP. ACT. BALANCE OPERATING ACTIVITIES October November December Total /000 /000 /000 / (1.587) (3.731) (388) (57) (57) (58) (684) (213) (707) (370) (1.776) (797) (187) (2.146) (726) (1.079) (1.121) (1.011) (13.312) (797) EXTRAORDINARY ACTIVITIES Extraordinary cash inflows Extraordinary cash outflows BALANCE EXTRAORDINARY ACTIVITIES FINANCING ACTIVITIES Cash inflow of Loans Cash inflow of Loans from owners Cash inflow of Debenture bonds Variation in Common stock Dividens by parent companies TOTAL FINANCIAL INFLOWS Loans payments Dividends payments TOTAL FINANCIAL OUTFLOWS BALANCE FINANCING ACTIVITIES (1.689) (88,6) - - NET CASH FLOW (885) Pagina 43

44 RESEARCH PROJECT, PRE-COMPETITIVE DEVELOPMENT, INTERNATIONALIZATION ACTIVITIES COSTS FOR SEMESTER Duration 5% 5% 1 semester 2 semester 3 semester 4 semester 5 semester 6 semester 7 semester 8 semester 9 semester 10 semester 11 semester 01/01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /06/ /12/ /06/ /12/ /06/ /12/ /06/ /12/ /06/ /12/ /06/2018 Activity 1 01/01/ /04/2013 Cost of R & D Personnel Employees 3 Hours for employee 2 2 Average cost for hour 66,06 Cost assigned Cost of Technical Advices Activity 2 01/03/ /07/ /06/ /07/2013 Cost of R & D Personnel Employees 2 2 Hours for employee Average cost for hour 66,06 66,06 Cost assigned Cost of Technical Advices Activity 3 01/07/ /12/2013 Cost of R & D Personnel Employees Hours for employee 200 Average cost for hour 66,06 Cost assigned Costo delle consulenze tecniche euro Activity 4 01/01/ /06/2014 Cost of R & D Personnel Employees 2 2 Hours for employee Average cost for hour 66,06 Cost assigned Costo delle consulenze tecniche euro Activity 5 01/01/ /07/ /06/ /07/2014 Cost of R & D Personnel Employees 2 2 Hours for employee Average cost for hour 66,06 66,06 Cost assigned Costo delle consulenze tecniche euro Pagina 44

45 Activity 6 01/01/ /07/ /01/ /06/ /12/ /01/2015 Cost of R & D Personnel Employees Hours for employee Average cost for hour 66,06 66,06 69,36 Cost assigned Costo delle consulenze tecniche euro Activity 7 01/07/ /01/ /12/ /05/2015 Cost of R & D Personnel Employees 2 3 Hours for employee Average cost for hour 66,06 69,36 Cost assigned Costo delle consulenze tecniche euro Activity 8 01/01/ /07/ /06/ /09/2015 Cost of R & D Personnel Employees 3 2 Hours for employee Average cost for hour 69,36 66,06 Cost assigned Cost of Technical Advices Activity 9 01/07/ /01/ /12/ /03/2016 Cost of R & D Personnel Employees 2 2 Hours for employee Average cost for hour 66,06 66,06 Cost assigned Cost of Technical Advices Pagina 45

46 TOTAL COSTS ASSIGNED 1 semester 2 semester 3 semester 4 semester 5 semester 6 semester 7 semester 8 semester 9 semester 10 semester 11 semester 01/01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /06/ /12/ /06/ /12/ /06/ /12/ /06/ /12/ /06/ /12/ /12/2018 Summary of cost of R & D Personnel Summary of cost of Technical Advices Cost of raw-material and goods used Cost of outsourced manufacturing Depreciation/amortisation expenses attributed Lease payments attributed Spese per deposito brevetti Overhead % assigned on personnel costs Amount assigned Overall costs foreseen for the program Pagina 46

47 ECONOMIC ASSESSMENT OF THE PROJECT 31/12/ /12/ /12/ /12/ /12/ /12/ /12/2019 Increased on sales induced by the project Increased sales Productivity Unproductive hours Average hourly cost 66,06 66,06 67,71 69,41 69,41 71,14 71,14 Total cost Savings Inventory reduction Riduzione giacenze in euro % Interest rate to apply to reduced value - Reduction in production reject Value of production % production rejects Cost of production rejects - Savings Reduction on sales returns Sales revenue % sales returns Cost of sales returns - Value of reduction on sales returns Revenues/costs reduction Costs/Investiments of the project EBIT of the project On the base of seven years of forecast from the project start, it emerges that its carrying out it produces positive effects for the company equal to: Pagina 47

48 RESEARCH PROJECT, PRE-COMPETITIVE DEVELOPMENT, INTERNATIONALIZATION Operating activities Start End Duration R&S per miglioramento prestazioni 1 prototipo 01/01/ /04/ Studio nuovo layout 01/03/ /07/ Realizzazione del layout 01/08/ /12/ Ingegnerizzazione prodotto: scheda tecnica-distinta base 03/01/ /06/ Prove e campionature su primi prototipi 18/01/ /07/ Avvio di un impianto pilota: produzione serie prototipali 01/06/ /01/ Test, collaudi e interventi di modifica 01/09/ /05/ Disseminazione risultati e politiche di marketing 01/06/ /09/ Prima produzione di serie e lancio sul mercato 01/09/ /03/ Allinea Grafico GANTT DIAGRAM OF THE PROJECT gen-13 mar-13 mag-13 lug-13 set-13 nov-13 dic-13 mar-14 apr-14 giu-14 ago-14 ott-14 dic-14 feb-15 apr-15 giu-15 ago-15 ott-15 dic-15 feb-16 apr-16 giu-16 R&S per miglioramento prestazioni 1 prototipo Studio nuovo layout Realizzazione del layout Ingegnerizzazione prodotto: scheda tecnica-distinta base Prove e campionature su primi prototipi Avvio di un impianto pilota: produzione serie prototipali Test, collaudi e interventi di modifica Disseminazione risultati e politiche di marketing Prima produzione di serie e lancio sul mercato Pagina 48