Annual Report Milan Italy

Transcript

1 Annual Report 2006 Milan Italy

2 Mipharm at a glance Total assets ( /000) Net fixed assets ( /000) 45,271 42,848 42,083 27,468 26,119 26, EBIT ( /000) EBITDA ( /000) 4,325 6,690 5,458 2,479 4,594 1, Cash Flow ( /000) Free Cash Flow ( /000) 4,758 5,452 3,987 3,364 2,549 2,

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4 Annual Report 2006 Ho voluto colorare questa edizione del nostro Annual Report 2006 con una serie di dipinti di Giovanni Carnovali detto il Piccio. Quest anno, 2007, si festeggia il bicentenario della nascita dell artista (1804) con una bella mostra internazionale a Cremona. Il mio è un atto di affetto e di ricordo. Sono un erede del Carnovali, ramo materno, sponda Lago Maggiore, alture di Luino. Tengo parecchio a questa discendenza. Al Piccio, sono certo!, l IDEA Mipharm sarebbe sicuramente piaciuta! Cav. Lav. Dr. Giuseppe Giampiero Miglio Milano, Aprile 2007 Milan Italy

5 Piccio, ultimo e primo Piccio, ultimo o primo dei romantici? Nella nozione critica di romanticismo artistico si è soliti fare coincidere due tendenze che, nella comune propensione a sviluppare una nuova poetica in cui l esaltazione dell elemento sentimentale gioca un ruolo determinante, sono in realtà distinguibili e non sempre sovrapponibili. Una tendenza è maggiormente rivolta al rinnovamento dei contenuti espressi, l altra al rinnovamento delle modalità espressive attraverso le quali certi contenuti vengono trasmessi. Nel primo Ottocento, ancora fortemente condizionato dal peso del neoclassicismo e del magistero accademico, è la prima tendenza a prevalere; nel secondo, che avverte la necessità del moderno e la sviluppa in chiave anti-accademica, è la seconda a prendere il sopravvento. Francesco Hayez, punto di svolta fondamentale del rinascimento lombardo e nazionale, è perfetta manifestazione della prima tendenza. Il Piccio, che vive prevalentemente nel primo Ottocento, è invece artista romantico da seconda metà del secolo, di cui anticipa molte istanze formali. In questo senso, se da una parte Carnovali può essere visto come l ultimo artista italiano, e forse non solo, del primo romanticismo, dall altra, con pretese altrettanto legittime, dovrebbe essere ritenuto il primo del secondo romanticismo, quando ancora esso si trovava in fase di piena gestazione. Il Piccio, quindi, come anomalia virtuosa, outsider in relazione mutevole col proprio tempo, fra continuità e discontinuità da uomo di provincia che, come talvolta accade nella storia, sfrutta al meglio la sua emancipazione fisiologica dai centri motori della cultura, proponendo direttrici diverse rispetto alle loro. Una formazione tradizionale, presso l ancora giovane Accademia Carrara di Bergamo, sotto l ala protettrice di Giuseppe Diotti, da cui scaturisce però una cultura artistica assai più mobile e variegata di quanto non si possa riscontrare negli artisti lombardi suoi contemporanei, certamente cosciente della lezione di Appiani, senza dubbio disposta ad accogliere il nuovo indirizzo sentimentale di Hayez con cui il linguaggio classicistico andava rinnovandosi, ma anche, con insolito coraggio, assai aperta a cio che il neoclassicismo aveva maggiormente represso: l anti-disegno, l anti-idealismo, l anti-classicismo del colorismo rococò. È questo il carattere decisivo della figura del Piccio: se in altri il legame fra due secoli, il Settecento pre-classicistico e l Ottocento post-neoclassico, è impossibile, per Carnovali non solo non è contraddittorio, ma necessario. Il Piccio capisce che il romanticismo in pittura, per essere davvero novità non può non essere evoluzione linguistica. Un evoluzione che deve rimandare storicamente a quanto di più innovativo, dal punto di vista strettamente pittorico, si era manifestato prima dell Ottocento. Come ormai viene comunemente ammesso, non è con David o Ingres, né tanto meno con Delacroix o Géricault, con Corot o Courbet, che ha origine il primato della pittura francese, ma con il rococò. Un rococò che aveva attinto a piene mani da ciò che l Italia e Venezia in particolare avevano proposto, con una serie di epigoni aggiornati di Tiziano e Tintoretto che vanno dai Ricci a Tiepolo e Pellegrini, da Bellucci a Balestra e Amigoni, dalla Carriera ai Diziani, fino a Guardi. Pittori itineranti per mezza Europa o abituati a lavorare per committenti stranieri, che concepiscono uno stile internazionale in grado di essere recepito in qualunque corte europea, forse di dimensione eccessivamente privata e disimpegnata, da art pour l art, aereo, bozzettistico, compiaciuto della propria raffinatezza fino alla leziosità ma dotato di un lirismo sensuale e coinvolgente come mai si era visto prima, musicale, crepitante di vitalità interiore, ultima propaggine dell estetismo dell ancien régime. Il Piccio capisce che quello stile e quel discorso, svecchiati, disincrostati della loro aristocraticità, rinforzati da un nuovo, borghese senso della sostanza, avevano ancora tanto da dire a un artista dell Ottocento che volesse esprimere cose realmente nuove. Il Piccio, soprattutto, capisce che gli artisti italiani potevano essere i più moderni d Europa se avessero guardato nel giusto modo ai loro compatrioti settecenteschi, invece di liquidarli facilmente come pessimi disegnatori. Ossia a quella stessa radice coloristica che, dopo la Rivoluzione e la pausa neoclassica, stava risucchiando irresistibilmente i pittori francesi, anche quando non ne erano troppo consapevoli. È il colore il vero, grande medium del sentimento, base fondante di ogni linguaggio espressivo che voglia parlare al cuore, limitando al minimo il ruolo della convezione, come già avevano intuito durante il Settecento. Nella storia dell arte, il colore ha una tradizione padana, chiara, indiscutibile.veneta nella sua matrice più riconoscibile, naturalmente, ma diffusasi poi nell entroterra padano per essere rielaborata in modo diverso da contesto a contesto locale, con innumerevoli varianti. Giuseppe Bazzani, pittore al quale il Piccio è stato certamente attento, è un colorista mantovano. Ho sempre sentito il Piccio come un pittore padano per eccellenza, malgrado i suoi natali non siano i più ortodossi per considerarlo tale. L ho sempre interpretato come esponente di un ductus artistico padano che ha per prodromo Bastianino, il Bastianino che sfocava Michelangelo, e per esito più coerente la scapigliatura di Tranquillo Cremona, con imprevedibili anticipazioni che talvolta sembrano rimandare a Redon. Il Piccio è disinteressato al racconto, alla composizione ben costruita, alla storia, vuole rendere la densità materiale di luoghi che sono sempre riconoscibili, precisi, ma alterati come se fossero visti da un vetro appannato, o da un miope privo degli occhiali. La bellezza non proviene dalla natura in sé e per sé, ma dalla complessità fisica e spirituale, dell atmosfera in cui la natura è immersa. È questo il punctum della lettura romantica proposta dal Piccio, il nuovo modo di vedere che corrisponde al modo di sentire. Se Hayez è stato il romanticismo della retorica altisonante, dantesco, il Piccio è il romanticismo della lirica pura, petrarchesco. Ma nei paesaggi, meglio che in qualunque altro genere, il Piccio rivela anche la propria interiorità tormentata. La contemplazione della natura non genera serenità nello spirito del rinascimento, ma uno stato di spleen, una sospensione malinconica, alla Torquato Tasso, che provoca disagio esistenziale. Nel Po, fonte primaria d ispirazione, il Piccio sarebbe tornato per sempre, perdendovi la vita. Da ultimo, o primo, dei romantici. Vittorio Sgarbi 2

6 Giovanni Carnovali detto il Piccio ( ), Autoritratto di profilo con il pennello in mano, 1872 circa, olio su tela, 48,5 x 40 cm, collezione privata. Provenienza: Giannino Steiner, Bergamo. Esposizioni: Bergamo

7 Cav. Lav. Dr. Giuseppe G. Miglio

8 Letter of the Chairman A successful innovation strategy has to focus on what will come next. Peter Drucker Ladies and Gentlemen, It is with pride and satisfaction that I present to you Mipharm s 9th Annual Report. The outstanding performance in 2006 is the fruit of our relentless technological innovation, product quality, and market strategy as well as an intense customer focus. Our strategy has produced the results we hoped for: Olux, in the first year of its launch and thanks to its Versafoam technology, has revolutionized the topical corticosteroids market; Hedrin, another product of our pipeline, thus representing a real alternative to the traditional chemical treatments, reached the market on 7 February This product is the first clinically proven, effective anti-lice product containing no chemical insecticides and represents the only valid alternative to the traditional treatments. The never ending organizational evolution of Mipharm responds to the needs of the market and reflects the development of our product mix, giving a high priority to the size and quality of our own Field Force. Needless to say that Management has all our attention in order to secure an efficient and professional execution of our strategies. I am convinced that we are on the right path to sustain and improve our performance in 2007 and beyond. My warmest thanks go to the people of Mipharm who have made these results possible, but also to our friends, customers and stakeholders outside the company who have supported us and contributed to the company s success. Cav. Lav. Dr. Giuseppe Giampiero Miglio Founder, Chairman and CEO 5

9 MIPHARM Board of Directors Giuseppe G. Miglio Max Link Luca Grisotti Vittorio Rizzo Andreas Rummelt Founder, Chairman and Chief Executive Officer Director Director Director Director Board of Auditors Ermanno Ramella Carlo Andreis Gianluca Nicolini President Auditor Auditor MIPHARM S.p.A. Headquarters: Via Quaranta, Milano Italia Share Capital: 7,627, Milan Registered Company s number and Fiscal code: VAT number:

10 MIPHARM Executive Committee MEC Giuseppe G. Miglio Founder, Chairman and Chief Executive Officer In the above picture, from your left: Massimo Prini Gianluigi Dognini Paola Fazzalari Luca Testorelli Mirella Franci Luca Grisotti Augusto Vaccari Massimo Quattrini Enzo Lucherini Technology / Special Services Manager Quality Assurance Manager Legal Affairs Manager Marketing Manager / Skin Manager Regulatory Affairs Manager General Manager Pharma Manufacturing Manager Pharmacy Line Manager Commercial Director 7

11 2006: Mipharm in its 9th year Giovanni Carnovali detto il Piccio ( ), Ritratto di un ragazzo con berretto rosso, 1845 circa, olio su tela, 50,5 x 42,5 cm, firmato in basso a destra Piccio, collezione privata, courtesy Studio Francesco Maspes, Saronno. Provenienza: Paolo Stramezzi, Crema; Ludovico Cartotti, Lessona. Esposizioni: Milano 1948; New York 1949, n. 6; Varese 1952, n. 15; Bergamo 1952, n

12 2006: Mipharm in its 9th year Highlights 2006 Profitability increased sharply; Net Result went from 0 in 2005 to 2.4 mio. in 2006 (5.7% of revenues); EBIT in 2006 was at 10.2% and EBITDA at 15.8% of revenues; Working capital stayed at historically low level; Personnel costs are under tight control; while the management team was reinforced; BU1 closed 2006 with a result below expectations, but without consequence for the future; new customers were acquired and profitability remained at a satisfactory level; BU2 achieved an impressive result, both in terms of revenues and EBIT (break-even); sales growth, pushed by the launch of Olux, reached 6.4% and more than offset three price cuts imposed by the Italian Health Ministry; BU2 s pipeline underwent a strategic review, bringing it a clearer focus; At a level of 1.1 mio., investments in 2006 were mostly for manufacturing equipment improvements (gels and cream). The total investment volume, since Mipharm s inception, is 41.7 mio.; Net debt was further reduced significantly, by over 2.6 mio. 9

13 2006: Mipharm in its 9th year 2006 Consolidation and Relaunch After several turnaround years, the key focus in 2006 was the profitability of the company by better managing the costs on the one hand and improve the margins on the other. As a consequence, EBITDA rose from 5.5 mio. to 6.7 mio. and EBIT from 2.5 mio. to 4.3 mio., an improvement of +75%. In the meantime, Mipharm restructured the customer portfolio in BU1 and realigned the product pipeline in BU2. The launch of Olux was an impressive success, and the launch of Hedrin in February 2007 was actively prepared. Giovanni Carnovali detto il Piccio ( ), Paesaggio a Brembate sotto, , olio su tela, 46 x 61 cm, Piacenza, Galleria d Arte Moderna Ricci Oddi (inv. n. 125). Provenienza: Gaetano Goltara, Bergamo; Luigi Goltara, Bergamo; Vittorio Goltara, Bergamo. Esposizioni: Milano 1909, Il Cairo 1949; Varese 1952; Bergamo 1952; Como 1954; Bergamo

14 2006: Mipharm in its 9th year The intended overall result in 2006 in terms of profitability was reached. On the revenue side, the outstanding accomplishments of BU2 were hampered by the transitory recession of BU1 which, however, came after a brilliant performance in 2005 with a revenue growth of 13%. Results were further substantially improved, and the net result gives us the opportunity for the first time since the company foundation to distribute a dividend to the shareholders. Giovanni Carnovali detto il Piccio ( ), Ritratto di Gina Caccia (La collana verde), 1862, olio su tela, collezione privata. 11

15 2006: Mipharm in its 9th year Net equity ( /000) 9,092 9,423 11,816 Balance Sheet The year ending 31 December 2006 closed with a net result of 2,392,935. Depreciation of property and equipment and amortization grew to 2,364,942. Cash flow amounted to 4,757,877. Total net sales in 2006 reached 42,317,683. Investments in 2006 amounted to 1,133, Net income 2,392, ,816 Between its inception in 1998 and 2006, the Company invested 41.7 mio. This investment reflects a growth in size as well as in the quality of the assets. These substantial investments were mainly financed with the company s own funds, i.e mio. out of a capital increase and cash flow, while for the difference of 9.5 mio. the Company financed with debt. On 31 December 2006, net debt reached 21,735,011 which is 2,642,690 less than prior year. The productive investments as well as those in trademarks, licences, and research and development justify the level of debt of our Company. Equity as per 31 December 2006 amounted to 11,815,738. This represents an increase over prior year of 2,392,935 due to the impact of the net result. 51, Investments ( /000) Investments 1,657 1,273 1,133 The total amount of investments of 1,133,341 in 2006 breaks down as follows: Plant and equipment 543,588 Buildings 255,250 Licenses, know-how, R&D 244,759 Information Technology 89,744 Total 1,133,

16 2006: Mipharm in its 9th year From 1998 to 2006, total investments amounted to 41.7 mio. Investments Net investments 1998/2006 as per 31 Dec ( mio.) ( mio.) Plant and equipment * Buildings * Licenses, know-how,r&d Information Technology Total * Includes revaluation of equipment of 3,903,000 (Legislation no. 342 of November 21, 2000) and revaluation of building of 1,000,000 (Legislation no. 266 of December 23, 2005), and revaluation of building of 2,500,000. Investments (percentage on revenues) Revenues Amortization (percentage on revenues, /000) Revenues in our different businesses developed as follows (in /000): Change Change% (2006/05) (2006/05) Manufacturing 24,646 25,448 22, Promotion 15,099 14,195 14, Special Services 1,716 1,495 1, Licensing out 857 1, Total 42,318 42,303 38, = BU1 Manufacturing suffered a temporary setback mainly due to a single US customer but also because of the negative impact of the strong versus Swiss franc (Supplies to Novartis are invoiced in Swiss franc), but with a revenue increase on the Italian Market thanks to the acquisition of new customers ,343 2,702 2,365 On the positive side, the Health Ministry granted Mipharm the authorization to produce cream and gel formulations as well as for clinical trials productions (Dec. 2006). 13

17 2006: Mipharm in its 9th year Business segments (Percentage on total revenues, /000) The Lean Manufacturing Project was rigorously implemented with the aim to fully exploit the benefits of a much improved Production and Quality Assurance organization, mainly for small batches BU2 Promotion achieved a growth of 6.4% despite three price cuts imposed by the Health Ministry in its attempt to contain health care costs ,113 42,303 42,318 Manufacturing Special Services Promotion Licensing out BU2 was particularly successful in its launch of Olux, a new psoriasis treatment: the product, based on cortisone active principles, is superior to competitive products thanks to the integration of the new Versafoam technology. Remarkable results were also reached by Milice (lice treatment) and Pancrex (treatment of pancreatitis). Last but not least, the launch of Hedrin in early 2007 was prepared, a new anti-lice product which is not an insecticide and therefore competing against chemical based products. BU3 Special Services (specialized in galenical and analytical development and Trial Logistics Management) enjoyed an expansion of 14.8%. BU3 developed galenical and analytical studies for Italian and European customers. Particularly successful was the Logistic Support for Trials with over 180 clinical studies with more than 32,000 patients. Also accomplished was the completion of Nidrox, a new thermosensitive mousse based on aluminum salts for the treatment of hyperidrosis (unmet clinical need). BU4 Licensing out is currently in the building phase. In 2006, suitable partners were identified, mainly in Southern European countries. An important objective for 2007 is to hire a professional BU4 manager. 14

18 2006: Mipharm in its 9th year EBIT and EBITDA ( /000) EBIT +4,325 +2,479 +1,220 EBITDA +6,690 +5,458 +4,594 The improvement in EBIT and EBITDA is due to the improvement of the productivity of the Business Unit Manufacturing (BU1), as well as to the higher volume of the New Products with a higher profitability in the Business Unit Promotion (BU2) and an increase in profitability of Business Unit Special Services (BU3) and Licensing (BU4). Cash Flow Statement ( /000) Cash Flow (Percentage on sales, /000) Net Income 2, Depreciation/Amortization 2,365 2,702 2,344 Write-Off 1, Total 4,758 3,987 3,364 Cash Flow as % of sales ,364 3, ,758 15

19 2006: Mipharm in its 9th year Free cash flow in 2006 was used mainly to reduce financial debt. / A. Cash-in Net Result AT 2, Amortis./depreciat. 2,365 2,702 2,344 Current assets variation: Inventories Receivables ,196 Short term fin. assets Cash and equivalents B. Cash-out Investments 1,133 1,273 1,657 Current liabilities variation: Deferred payments Trade accounts payable Other debts C. Free cash flow 5,452 2,871 2,549 Employees Financial Situation Total debt, net of marketable securities, decreased by 2,642,693 particularly due to investments lower than depreciation and a higher cash flow. Human Resources Headcount on 31 December 2006 was 190 associates (185 in 2005). The BU2 Field Force includes 5 Area Managers, who are all associates, and 45 representatives (sole agents). 16

20 2006: Mipharm in its 9th year Giovanni Carnovali detto il Piccio ( ), Ritratto di bambina con bambola, 1863, olio su tela, 55 x 45,5 cm, firmato e datato in basso a destra Piccio 1863, collezione privata. Provenienza: Ludovico Cartotti, Biella. 17

21 2006: Mipharm in its 9th year Outlook for 2007 First Quarter Revenues The new year started positively, and all the BUs contributed to the favourable result. /000 1 st Quarter 07 1 st Quarter 06 Variance Actual Actual 07/06 Revenues 9,875 9, % BU 1 Production BU1 seems to go back to its historic growth pattern (+4% in 1st quarter 07), to be soon further enhanced by the imminent start of the new gel/cream manufacturing and new incoming transfers from Novartis. New facilities for cream, gel and ointment manufacturing and packaging were installed. The facilities have been inspected by the Italian Agency for Medicinal Product (AIFA) and approved, providing additional capability to the manufacturing operations in Mipharm. Two Customers will represent an upside if compared with 2007 budget: Sandoz generici S.p.A. will complete the transfer to Mipharm of some products, including Nimesulide and Ticlopidine based products, some creams (both Sandoz and Hexal labelled). The development of a new generic cream, based on an exclusive contract, will be also carried out, with the objective to manufacture the new product in Via Quaranta. Valeant: today we manufacture for Valeant Migranal Nasal Spray in bulk vials. We are working to complete the production process in Mipharm, including also the packaging activities. As the final packed product has a high price, the increase in the revenues could be important. The activities regarding the new artwork and the layout have already started. It is possible to complete this process starting with July orders. On the efficiency/efficacy side, we will further exploit the benefits of the Lean Production Project, while improving our production planning system. 18

22 2006: Mipharm in its 9th year BU 2 Promotion After intense pre-marketing, we will initiate with Nidrox, a new activity within Project Skin to treat hyperhidrosis, which excessive sweating can be a social embarrassment. The VersaFoam technology will play an important role. At the same time, our Pharmaceutical Line will bring to the market Ketoil in the spring, an innovative oil shampoo with double action to control dandruff and fragile hair. BU3 and BU4 will continue to build upon their strengths. Finance On June 30, 2007, the first dividend in the short history of Mipharm will be distributed to shareholders. This is a very important step in the less than appealing and complex Italian environment. We will continue our strike for excellence at all levels, profitability, working capital, bank debt reduction. The 2007 investments are planned at about 2 mio., part for Production maintenance activities and part for products or rights acquisitions (Hedrin ). During 2006 total debt, net of marketable securities, decreased by an amount of 2,642,693 from 24,377,012 to 21,735,011. Human Resources In the Budget 2007 period, we will take a close look at our organizational structure. While a rejuvenation of our management is overdue, a reinforcement of BU3 and BU4 is also necessary to execute our Business Plans. The same will occur in BU2 (External Sales Force and individualization of new targets). Company organization Under the leadership of the Chairman/CEO, the strengthening and rejuvenation of the Management team is a priority of the first order. 19

23 2006: Mipharm in its 9th year Giovanni Carnovali detto il Piccio ( ), Salmace ed ermafrodito, 1871, olio su tela, 60 x 46 cm, firmato e datato in basso a destra Piccio 1871, collezione G.G. Miglio. 20

24 Balance Sheet and Profit & Loss Statement Profit and Loss Statement Dec. 31 Dec. /000 /000 A Value of manufacturing 42,632 42,786 Net turnover (sales and services) 42,318 42,303 Other operating income B Cost of production 38,307 41,360 Raw material and goods purchased for resale 15,403 16,098 Salaries and wages 7,900 8,205 Value adjustments 2,430 3,559 a Amortization of intangible assets 1,286 1,402 b Depreciation of tangible assets 1,079 1,300 c Other adjustments Other operating charges 12,934 13,498 Difference between value and cost of production 4,325 1,426 C Financial income and charges D Extraordinary income and charges Profit (loss) before income taxes 4, Income taxes 1, Profit (loss) for the financial period 2,

25 Balance Sheet and Profit & Loss Statement Assets Dec. 31 Dec. /000 /000 B Fixed assets* 26,884 26,119 I Intangible assets 6,216 7,877 II Tangible assets* 20,668 18,242 C Current assets 14,872 16,380 I Inventories 2,421 3,008 II Accounts receivables and other assets 7,018 7,430 III Investments which are not permanent 4,850 5,683 IV Cash on hand and banks D Prepaid expenses and deferred charges TOTAL ASSETS 42,083 42,848 * Value after revaluations 2005/2006 fixed assets (law no. 342 of 21 November 2000 and law no. 266 of 23 December 2005 and revaluation 2006). 22

26 Balance Sheet and Profit & Loss Statement Equity and liabilities Dec. 31 Dec. /000 /000 A Capital and reserves 11,816 9,423 B Provision for risks and charges C Employee severance indemnity 2,796 2,877 D Creditors 27,167 30,319 Amounts owed to other financiers 5,450 5,731 Banks 10,551 13,724 Accounts payable 9,269 8,968 Other creditors 1,897 1,896 E Accruals and deferred income 1 6 TOTAL EQUITY AND LIABILITIES 42,083 42,848 23

27 Produced by MIPHARM S.p.A. Italy Printed by: Centro Stampa S.n.c. Milan, Italy April 2007

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29 Milan Italy MIPHARM S.p.A. Via Quaranta, Milan Italy Phone (39) Fax (39)