Presentation of the 2011 results

Transcription

1 Presentation of the 2011 results 22 February 2012

2 PCAS mission statement To offer the best response to the global challenges and specific expectations of our clients with secure, competitive, innovative and sustainable industrial solutions. 2

3 The Group 3

4 The Group PCAS sales by market PCAS sales by geographic zone 13,19% 10,50% 14,30% 41,58% Pharmaceutical Synthesis, Custom Synthesis and Pharma Chemicals Pharmaceutical Synthesis Generics Performance Fine Chemicals Fragrance, Flavors, Cosmetics 10,10% 16,76% 2,95% 33,95% France Europe North America Asia Pacific Other 20,43% New Technologies 36,24% 4

5 Health PCAS is one of the world's leaders in the production and marketing of Active Pharmaceutical Ingredients (APIs) for the generics market. PCAS offers solutions and services for the development and marketing of new therapeutic molecules. Photo Source : site PCAS 5

6 Well-being PCAS is a leading player in the production of olfactory molecules using distinctive technologies, molecules derived from renewable raw materials and active ingredients for cosmetics and polymers for excipients Photo Source : site PCAS 6

7 Renewable energies New materials Photo Source : PCAS ile:tuebingen-sporthalle.jpg contributes to the design and production of active ingredients whose properties are used on the industrial lubricants and microelectronics markets, or for special polymers. 7 BY-SA 3.0) Photo: Björn Appel, 2005 (CC

8 DYNACTION: shareholders Ownership of share capital 4.81% 15.64% Public Christian Moretti Anblan SA Eximium Adroit Priv ate Equity Public Treasury stocks 39.89% 7.66% 21.70% 10.30% Other information Isin code FR DYTA On 17 February 2012: Number of shares 3,295,842 Market compartment Euronext C 8 Share price 5.98 Market capitalization 19.7M 8

9 PCAS: shareholders Ownership of share capital 26.05% Dynaction Eximium Management 1.56% Public Treasury stocks 3.37% 5.37% 63.65% Other information Isin code FR PCA On 17 February 2012: Number of shares 13,705,865 Market compartment Euronext C Share price Net assets per share 5.05 Market capitalization 27.4M 9

10 2011 results 10

11 PCAS Group Highlights of 2011 A strong recovery of the Pharmaceutical Synthesis activities Restructuring of the Group's main debts, finalized in July 2011 Syndicated credit facilities A 13.2 million loan on 31 December 2011 EURIBOR + a 4.2% margin per year, adjustable according to the leverage ratio Repayments over a period of 5 years, ending in July 2016 A 3.2 million loan on 31 December % OSEO guarantee OSEO commission i of 1.4% per year EURIBOR + a fixed margin of 2.8% per year Repayments over a period of 5 years, ending in July 2016 OBSAR Nominal amount of 20 million Annual rate of 8%, paid quarterly Reimbursement of 21 million on 31 December

12 PCAS Group Revenue as of the end of December 2011 (in thousands of euros) % change First Quarter ,3% including Pharmaceutical Synthesis ,0% including Fine Specialty Chemicals ,0% Second Quarter ,1% including Pharmaceutical Synthesis ,8% 58% 31th including Fine Specialty Chemicals ,0% Third Quarter ,5% including Pharmaceutical Synthesis ,2% including Fine Specialty Chemicals ,6% Fourth Quarter ,1% including Pharmaceutical Synthesis ,2% including Fine Specialty Chemicals ,6% Total as of 31 December ,8% including Pharmaceutical Synthesis ,7% including Fine Specialty Chemicals ,6% Pharmaceutical Synthesis Over the first five months of the year, business was affected by the planned reduction in the contribution from the new contract between PCAS and Sanofi, effective since May, Excluding this contract, the Exclusive and Non-Exclusive Pharma businesses increased by 13.1% over Fine Specialty Chemicals The Fine Specialty Chemicals business has continued its th d i th f th t being 12.6% higher than the same period in 2010, giving a full-year growth of 5.6% for 2011 compared with including Fine Specialty Chemicals % growth during the fourth quarter 12

13 PCAS Group 2011 Key Figures In millions of euros Revenue up by 3.8% on 2010 Net sales 158,5 164,5 including Pharmaceutical Synthesis 99,4 102,1 Including Fine Speciality Chemicals 59,1 62,4 EBITDA (*) 16,1 16,5 EBITDA margin 10,2% 10,0% Current Operating Income (*) 3,4 5,4 Other Operating income and expense -2,2-1,7 Financial Result -4,2-3,6 Taxes (**) -0,9-3,1 Share of profit/loss of associates -0,1 0,2 Net Result -4,0-2,8 Net Result (exluding depreciation of deferred tax asset) -4,0 0,2 Equity 71,6 69,2 Net debt 47,5 53,6 Gearing 0,66 0,77 Net asset per share 5,2 5,1 (*) of which research tax credit (CIR): 2.8 million euros in 2011 and 2.7 in 2010 (**) including a depreciation of deferred tax asset for an amount of 3 M in 2011 Audit procedures have been performed and auditor s report is in progress of being issued. EBITDA grew by 60% to 5.4 million, compared with 3.4 million in The 2011 net result was affected by a non-recurring depreciation of deferred tax assets of 3 million (without any impact on cash) due to the effects of the French amending tax law for 2011 relating to the conditions for future use of loss carry forwards. Excluding this non-recurring item, the net profit for 2011 stood at 0.2 million, compared with 4 million in

14 Balance sheet as of 31 december 2011 in millions of euros Total equity 71,6 69,2 It Intangible fixed assets 19,8 20,1 Tangible fixed assets 62,4 61,4 Provisions for liabilities and charges 6,8 7,2 Deferred tax assets 8,1 5,1 Long-term debt 32,9 38,2 Other non-current assets 1,0 1,0 Other non-current liabilities 2,2 2,4 Total non-current assets 91,3 87,6 Total non-current liabilities 41,9 47,8 Inventories 39,5 44,3 Current portion for liabilities and charges 2,8 1,3 Accounts receivable 24,7 28,6 Short-term debt and current portion of long-term debt 17,9 17,5 Other current assets 8,9 12,0 Accounts payable 19,0 22,0 Cash and cash equivalents 3,3 2,1 Other current liabilities 14,5 16,8 Total current assets 76,4 87,0 Total current liabilities 54,2 57,6 Total assets 167,7 174,6 Total liabilities 167,7 174,6 14

15 PCAS Group 2011 cash flow In millions of euros Cash flow Changes in work ing capital 0,3 (6.5) Income taxe (0.8) (0.9) Operating activities Property, plant & equipement and intangibles (8.1) (8.3) Financial assets (2.6) - Investing activities iti (10.7) (8.3) Net interest expense on debt (2.8) (2.9) Net debt variation (4.0) (1.0) Financing activities Net change in cash and cash equivalents (*) of which 2.4 of research tax credit in 2011 (6.8) (3.9) (5.3) (6.7) 15

16 Outlook for

17 General trends Continued strong Fine Specialty Chemicals activity, it especially in New Technologies and Performance Fine Chemicals. Pressure on prices from low-cost supply sources affecting certain activities, such as Fragrance. Recovery of the molecule pipelines in the last phases of clinical development in the USA and Japan, and with Biotechs in general. strong demand for the outsourcing of PCAS' expertise in the scaling and manufacture of complex molecules for large, medium and emerging pharmaceutical companies. Strong growth in the European and worldwide generics market increased distrust amongst customers toward active ingredients coming from Asia, which has been strengthened by recent events revealing the weaknesses of our regulatory systems Sharp rise in raw materials prices in 2011, more moderate in

18 2012 strategic plan for growth Improve profitability in the short-term Target: to save 5 million in the full year Fine Pharmaceutical Chemicals (Custom and Generics) Custom: continue the "preferred supplier" strategy focused on outsourcing and partnerships, from the big Pharmaceutical companies to Biotechs Generics: develop / speed up "non-exclusive" and "generic" product ranges Geographical extension of the group's sales branches in North America and Asia Fine Specialty Chemicals Development of partnerships with leading customers in their markets as part of a scale-up process Development p of own-brand product ranges and technologies Green Chemicals platform and sustainable development with Protéus Geographical development in BRIC 18

19 Exclusive Pharmaceutical Chemicals (Custom and Pharmachemicals) 2011 revenue: 68.5m Custom Manufacturing on proprietary technological platforms: API: Preparation of two US NDAs as part of a contract for Corcept Therapeutics and big pharmaceutical companies Custom ISO: Ramp-up of several RSMs, including diabetes phase III API for J&J and Tanabe Biomaterials: Medical device for diabetes and EXPANSORB platform Clinical services: APIs, including two fast-track for Biotech Contract with Sanofi: renewed for 3 more years NDA: New Drug Approval RSM: Regulatory Starting material 19

20 Non-exclusive Pharmaceutical Chemicals (Generics) 2010 revenue: 34.9m 2011 revenue: 33.6m International growth driven by the BRIC countries, with a partnership in China. Ongoing development of several active ingredients for the generics market on innovative indications and administrations and with high added value (ophthalmology, injectable, patch). Launch of a PPI inhibitor in 2011 and several successful market authorizations for our customers in more than 20 European countries. Industrialization in progress for 2012 Urology: Successful NDA at the end of 2011 for auscustomer for a patch to treat incontinence. Preparation of the launch with the production of the active ingredient in Muscle relaxant: Clinical phase II successfully completed in 2011 in the US by our customer for a new indication Phase III to follow in 2012 NDA: New Drug Approval ANDA: Abbreviated New Drug Approval 20

21 Specialty Chemicals 2011 revenue: 62.4m High-performance polymer for aerospace and medical device for medical implant applications Developments in high-performanceh chemicals, new contract t for food-compatible lubricants Bio-sourced fragrance and cosmetic molecules Polymer compatibiliser for the paper and cosmetics markets and with a broad spectrum of industrial use Semiconductor polymers for organic photovoltaics and printed electronics 21

22 Financial targets More selective growth of revenue in favour of more robust and profitable activities, based on the development of proprietary products and technologies 185M by 2015 Significant improvement of profitability current EBITDA totalling 15% of revenue by

23 Plans for growth 23 J.L. Girod

24 Main strategic projects Arkema/OPM PEKK partnership Fine Specialty Chemicals Pilot Industrialization Marketing Annual potential 10m Commercial molecule in development phase 3 Exclusive Fine Pharmaceutical Chemicals ANDA application in USA Marketing of a new therapeutic application Generics Blockbuster PPI inhibitor generic Regulatory file and market authorization Commercial launch Multi-ton production 10m 10m ENERSENS Group technological platform 10m Kilo-lab (multi kg) Partner in JV Investment in multi-ton pilot

25 Thank you for listening 25