Annual Report Merging Italian Creativity with Swiss Tradition

Transcript

1 Annual Report 2012 Merging Italian Creativity with Swiss Tradition

2 Mipharm at a glance Total assets (e/000) Net fixed assets (e/000) 34,670 34,579 34,806 22,208 22,345 22,883 33,634 20, EBITDA (e/000) Operating Income EBIT (e/000) 6,313 5,359 5,446 5,441 4,493 4,494 4,039 2, (*) adjusted (*) adjusted Net Profit (e/000) Free Cash Flow (e/000) 3,101 3,285 2,750 2,662 2,596 2,353 1, (*) adjusted (*) adjusted Note: 2012 was heavily influenced by a total revamp of the QA/QC area, demanding heavy investments in Assets and People.

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5 Annual Report 2012 Imagination is more important than knowledge Albert Einstein

6 Cav. Lav. Dr. Giuseppe G. Miglio

7 Letter of the Chairman Dear Shareholders, Ladies and gentlemen: It is with pleasure and pride that I am sending you this letter at the beginning of We are starting this year financially strong, a promising pipeline and renewed confidence. Because 2012 was not easy neither for the pharmaceutical industry in Italy in general nor for Mipharm. The political instability in Italy and the virtual shrinking of the pharmaceutical industry in our country required our full attention day by day. On the other hand, new opportunities emerged in the field of generics and Supergenerics the most important fields our activities. As a consequence and despite the dismal environment, Mipharm closed 2012 with revenues of 35.7 million (+3,5% over the previous year) and a Net Profit of 2.6 million (7,3% of Revenues). While this is 16.1% below the previous year (or 3.1 million), one has to bear in mind that unavoidable and costly reorganizations and streamlining of processes required a substantial amount of financial resources (and management time!). But our cash generation remained strong and allowed us to implement all the necessary investments to keep our equipment state-of-the-art. The Company s Balance Sheet continues to be robust. We are proud that our joint effort produced such magnificent results. The major challenge for us, however, was a thorough review of our Quality Assurance and Quality Control operations. After an incident caused by human error in the early summer, I felt compelled to revamp our total activities in this area. I am proud to say that now we have the right systems and the right people in place. In fact, our QA/QC area has become a key asset for the Company. And not only this: The People of Mipharm without exception are fully aware of the importance of QA/QC, and constant training in the future will minimize the possibility of other errors. The implementation of the highest standards are my personal priority number one. The imminent reorganization of our QA/QC activities would not have been possible without the unconditional and decisive support which Novartis Basel gave us during many months. That we can continue to serve our customers as a reliable supplier does not only help Novartis as our largest client but, if fact, all of Mipharm s customers. I am deeply grateful to Novartis and their leadership for their generous help, particularly their Chief Executive Officer, Mr. Joe Jimenez. Last but not least, my sincere thanks go to the People of Mipharm. They made Mipharm what it is and stands for today: a successful, fully integrated pharmaceutical company in Italy with a bright promising future. Cav. Lav. Dr. Giuseppe Giampiero Miglio Founder, Chairman and Chief Executive Officer 3

8 Mipharm Board of Directors Giuseppe G. Miglio Max Link Luca Grisotti Vittorio Rizzo Ernst Nikolas Meijnders Founder, Chairman and Chief Executive Officer Director Director Director Director Board of Auditors Ermanno Ramella Laura De Gioia Vittorio Dodi President Auditor Auditor MIPHARM S.p.A. Headquarters: Via Quaranta, Milano Italia Share Capital: e 7,669, Milan Registered Company s number and Fiscal code: VAT number:

9 MIPHARM Executive Committee MEC Giuseppe G. Miglio Founder, Chairman and Chief Executive Officer / CEO In the above picture, from your left: Francesco Petrucci CFO Donata Pezzuto Quality Unit / Q.P. Alessandro Cipriani Production Operations Nicola Cadei COO Massimo Prini Technology / Special Services Luca Grisotti General Manager Giovanni Baldelli Human Resources Paola Fazzalari Legal Affairs 5

10 Giovanni Carnovali, detto il Piccio (Montegrino Valtravaglia, 29 settembre 1804 Coltaro, 5 luglio 1873) Giovanni Carnovali, detto il Piccio, nato a Montegrino Valtravaglia (VA), si trasferì in tenera età ad Albino in provincia di Bergamo. Ben presto mise in luce le sue doti d artista, tanto che un aneddoto racconta che dipinse un mazzo di chiavi sulla porta di una villa che in molti presero per vere. La famiglia capì che la strada del piccolo era segnata, ed a soli 11 anni venne accolto presso l Accademia Carrara di Bergamo, sotto l ala protettrice del pittore neoclassico Giuseppe Diotti. Dimostrò fin dall inizio le sue capacità, dipingendo con colori vaporosi e morbidi, sullo stile del romanticismo, in modo assolutamente autodidatta. Assunse presto il soprannome il Piccio (il piccolo ), che lo accompagnò in tutta la sua vita artistica e non solo. Intraprese, dall età di 27 anni, una serie di viaggi volti allo studio dei grandi maestri del XVII secolo che lo portarono a Parma e Roma nel 1831 e Cremona dal 1832 al 1835, fino a stabilirsi definitivamente, nel 1836, nella città di Milano. Altri viaggi lo portarono successivamente a Parigi (dove ebbe contatti con Delacroix), nel 1845, con l amico Trécourt, quindi nuovamente a Roma e Napoli. Amava viaggiare a piedi, camminare a lungo e sentire la terra, ma anche nuotare a lungo. Fu famoso anche per il suo carattere molto particolare e stravagante: si raccontano in tal senso curiosi aneddoti tra cui quello che lo vide protagonista di un viaggio al paese d origine al fine di rivedere i suoi parenti. Dopo aver percorso parecchie miglia a piedi, giunse a destinazione in piena notte. Vide che la casa dei suoi era illuminata, e si avvicinò riconoscendo le voci dei parenti. Diede un occhiata dalla finestra e, dopo aver appurato che tutti stavano bene ed erano sereni, ritornò da dove era venuto. Giovanni Carnovali morì il 5 luglio 1873 per un malore mentre stava nuotando nel Po. L artista Lo stile del Carnovali è strettamente legato alla tradizione lombarda del rinascimento ed è riconoscibile per una spiccata luminosità delle opere. Questa caratteristica crea nei dipinti atmosfere quasi trasparenti con tonalità molto accese, richiamando in qualche modo i grandi artisti del XVIII secolo tra cui Tiepolo e Zuccarelli. Le sue principali opere riguardano scene bibliche, mitologiche e della storia di Roma. Molto rinomati sono inoltre i suoi paesaggi ed i numerosi ritratti di personaggi dell aristocrazia e borghesia del tempo. Definito come bizzarro ed inquieto, ha sempre avuto un tocco originale. La sua pennellata sciolta, a tocchi ed a macchie, ha sempre mantenuto un grande realismo capace di trasmettere le immagini direttamente alla coscienza, e lo rese uno tra gli artisti significativi dell Ottocento, forse il primo interprete di una pittura moderna che approderà alla Scapigliatura e al Divisionismo, dandogli un carattere originale ed anticonformista. Anche per questo non fu apprezzato dai contemporanei, spesso ritenuto o troppo antico o troppo moderno. Al suo tempo la classicità dei soggetti non era apprezzata, senza contare che l uso del non finito agli occhi dei suoi contemporanei sembrò un oltraggio alla buona pittura. Soltanto nel 1909, durante una mostra tenutasi a Milano, le sue opere vennero riscoperte dalla critica e rivalutate. Citazioni «Se vuole, ci mette tutti nel sacco» (Hayez) 6

11 New Mipharm Financial Report Period Ending 31 December 2012 (in ) Period Ending 31 December 31 December Net Sales 35,701, % 34,501, % 1,199, % EBITDA 5,441, % 6,313, % 872, % Operating Income (EBIT) 4,493, % 5,359, % 865, % Net Income 2,662, % 3,101, % 439, % Primary Cash Flow 3,609,488 4,055, , % Free Cash Flow 2.353,232 3,284, , % ROE 19.7% 24.3% 4.6% ROI 12.9% 15.9% 3.0% ROS 12.6% 15.5% 2.9% Equity / Invested capital 38.7% 38.0% 0.8% V.A. / Employee 61,225 64,490 3, % Giovanni Carnovali detto il Piccio Testa di bambino, olio su tela. 7

12 New Mipharm Income Statement Period Ending 31 December 2012 (in ) Period Ending 31 December 31 December Revenues 35,701, % 34,501, % 1,199, % Operating Costs 30,260, % 28,188, % 2,072,149 EBITDA 5,441, % 6,313, % 872, % Operating Income (EBIT) 4,493, % 5,359, % 865, % Financial Costs 271, % 237, % 34,195 Non-recurrent Income (Expenses) 17, % 243, % 225,680 Pre-Tax Income (EBT) 4,204,192 4,878, , % Taxes 1,542, % 1,777, % 235,052 Net Income 2,662, % 3,101, % 439, % 8

13 Giovanni Carnovali detto il Piccio Salmace e Ermafrodito, olio su tela, 60x46 cm, datato

14 Giovanni Carnovali detto il Piccio Ritratto di nobiluomo cremonese, olio su tela, 43x55 cm Giovanni Carnovali detto il Piccio Ritratto del conte Borromeo di Vaprio d Adda, olio su tela, 50x62 cm 10

15 New Mipharm Cash Flow Statement Period Ending 31 December 2012 (in ) 12 Months Period Ending 31 December 31 December Operating Activities Net Income (Loss) 2,662,025 3,101,216 Depreciation of PP&E 840, ,717 Amortization of Intangibles 81,533 84,337 Employee Severance Payments 279,945 12,551 Provision for Risk and Charges 259, ,820 (Increase) Decrease in Receivables 145, ,739 (Increase) Decrease in Inventory 492, ,689 (Increase) Decrease in Other Current Assets 139,771 1,213,308 Increase (Decrease) in Payables 200, ,791 Increase (Decrease) in Other Current Liabilities 925, ,955 Increase (Decrease) in Other Working Capital 23,564 44,226 Net Cash from Operating Activities 3,259,700 4,345,319 Investment Activities Sale of PP&E and Intangibles 10,010 36,940 Increase of Assets for internal work 0 0 (Purchase) of PP&E and Intangibles 970,645 1,097,585 Net Cash from Investment Activities 960,635 1,060,645 Financing Activities Capital increase 54,167 0 Payment of Cash Dividends 2,498,376 2,700,096 Net Cash from Financing Activities 2,444,209 2,700,096 Net Change in Cash & Cash Equivalents 145, ,578 11

16 New Mipharm Revenues Period Ending 31 December 2012 (in ) Period Ending 31 December 31 December Manufacturing 34,601,956 33,206,054 Special Services 1,059,543 1,262,615 Business Development 40,000 33,000 Total 35,701,499 34,501, Giovanni Carnovali detto il Piccio Bambino disegno a matita

17 Comments to Year 2012 Mipharm continues its healthy development and concluded 2012 in a position of strength, although the economic and political environment posed challenges at a historic level. The biggest hurdle, however and quite frankly, was homemade. A single incident in the QA/QC area created havoc throughout the organization! It was a wakeup call for the whole Company, and no stone remained unturned to uproot the cause. In fact, it lead to a radical reorganization of our QA/QC area and the realization that everything we do has a QA/QC component that has to be taken into consideration. Mipharm may serve as an excellent example how a big problem handled correctly can become a big opportunity. Giovanni Carnovali detto il Piccio Paesaggio disegno a matita 13

18 New Mipharm Profit and Loss Statement Period Ending 31 December 2012 (in /000) Period Ending 31 December 31 December A Value of manufacturing 36,134 34,792 Net Revenues (sales and services) 35,701 34,502 Increase of Assets for internal work 0 0 Other operating income B Cost of production 31,640 29,433 Raw material 13,333 12,221 Salaries and wages 9,955 9,870 Value adjustments a Amortisation of intangible assets b Depreciation of tangible assets c Other adjustments Other operating charges 7,405 6,388 Difference between value and cost production 4,494 5,359 C Financial income and charges D Extraordinary income and charges Proft (loss) before income taxes 4,204 4,878 Income taxes 1,542 1,777 Net Profit (loss) for the financial period 2,662 3,101 14

19 New Mipharm Balance Sheet, 2012 (in /000) Assets December 31 December A Current Assets 11,859 11,219 Cash or Cash Equivalents Inventories 2,861 2,368 Receivables and other assets 4,097 4,103 Non-Permanent Investments 4,585 4,503 B Fixed Assets 22,883 22,345 Tangible assets 22,305 22,246 Intangible assets Financial assets C Prepaid expenses and deferred charges TOTAL ASSETS 34,806 33,634 Equity and Liabilities A Creditors 19,281 18,257 Banks 8,743 8,187 Other Financiers Accounts Payable 7,483 7,683 Other Creditors 2,646 1,721 B Provision for Risk and Charges C Employee severance payments 1,624 1,904 D Accruals and deferred income E Capital and reserves 13,483 12,766 TOTAL EQUITY AND LIABILITIES 34,806 33,634 15

20 Giovanni Carnovali detto il Piccio Busto di Donna olio su tela ovale 16

21 Outlook for 2013 In 2013, the very favorable, impressive trend continues and even accelerates. Growth in Revenues and Net Profits was catapulted to a considerably higher level. Due to constant efforts to deliver peak performance day after day, we are confident that the Company once again will show impressive results. Our permanent focus on true market needs and growth opportunities, our unconditional commitment to tight cost management, our constant upgrading of our facilities and equipment to the most modern standards, and or Permanent Education program for the People of Mipharm make us what we always have been: FINANCIALLY STRONG, TECHNOLOGICALLY INNOVATIVE, and with PROVEN LEADERSHIP. 17

22 New Mipharm Key Figures Period Q Q % change /000 /000 cc Net Revenues 9, % 8, % % Operating Income (EBIT) 1, % % % Net Income % % % Primary Cash flow ,9% Free Cash flow % 18 Giovanni Carnovali detto il Piccio Donne con infanti disegno a matita

23 Giovanni Carnovali detto il Piccio Autoritratto, olio su tela ovale Giovanni Carnovali detto il Piccio Lettera datata 22 maggio

24 Produced by MIPHARM S.p.A. Italy Printed by: ERA Comunicazione S.r.l. Milan, Italy May 2013

25 Giovanni Carnovali detto il Piccio Vergine orante, disegno a matita

26 Mipharm S.p.A. Via Quaranta, Milan Italy Phone (39) Fax (39)