Recordati (REC) Investor Update summary

Strategic Vision and Growth Targets

• Aims to double revenue by 2030, maintaining at least a 38% EBITDA margin, driven by organic growth, disciplined business development, and M&A.

• 2027 targets reaffirmed: €3.0–€3.2 billion revenue, EBITDA margin of at least 38%, and adjusted net income of €770–820 million, with a CAGR of 11.8% (2024–2027).

• Growth strategy leverages a diversified business model across specialty primary care (SPC) and rare diseases (RRD), with no single product exceeding 10% of total revenues.

• U.S. exposure remains below 20%, with most growth and sales from outside the U.S., providing a natural hedge against regional risks.

• No major mergers are planned; growth is expected from current portfolio, lifecycle management, and targeted acquisitions.

Group Overview and Business Model

• Operates a resilient, diversified pharmaceutical business with global reach in over 150 countries and 4,450+ employees.

• Revenue in FY 2024 reached €2,341.6M, up 9.2% YoY, with strong EBITDA and net income margins.

• Specialty & Primary Care (SPC) accounts for 64% of revenue, Rare Diseases (RRD) for 36%, both with high margins.

• Business model emphasizes disciplined M&A, robust financial focus, and experienced management.

Specialty & Primary Care (SPC) Segment

• SPC delivers mid-single digit organic growth (CAGR ~3.5–4.5% at CER), led by urology, OTC, and strong brand equity.

• Urology is a key growth driver, with main products like Eligard, Urorec, and Avodart showing strong performance.

• Cardiovascular sales remain stable, supported by targeted promotion and resilient brands post-LOE.

• OTC brands drive growth in gastrointestinal, cough & cold, and other pharma segments.

• SPC’s growth is supported by geographic and therapeutic diversification, with a resilient supply chain and cost-effective operations.