Annual Report 2012 - Acino

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14 ACINO | PerfOrmANCe rePOrt Contribution margin (in eUr million) BtC 17.7 BtB 26.2 tm 4.0 Prod (10.3) Group 37.6 Less: items not contained in contribution margin per segment (page 43) (28.7) EBIT 8.9 Contribution margin per segment 17.6% 30.0% 5.9% n.m. BtC BtB tm Prod ⁄⁄ Contribution margin of the Group up by 33% In total, the contribution margin of the Group amounted to eUr 37.6 million (2011: eUr 28.2 million): • BtC: high market development efforts temporarily dampen profitability. In 2012, the first partial year of managing the combined businesses, the contribution of the Operating Segment BtC amounted to eUr 17.7 million (or 17.6% of revenue). the profitability was influenced by numerous integration-related efforts which were underway throughout the year. While higher promotional and distribution costs are inherent to any direct marketing approach, extraordinary costs incurred for additional field force training, rebranding campaigns, and customer retention measures supporting the transition of the international business from mepha to Acino. the high number of local new product registrations poses a special challenge to Acino’s drug regulatory activities and time consuming procedures have delayed new product introductions on several occasions. Acino expects a gradual margin improvement as synergies are starting to materialize and new products reach the market. • BtB remains the strongest earnings contributor to the Group. the Operating Segment BtB achieved a contribution margin of eUr 26.2 million (2011: eUr 20.0 million) or 30.0% of sales (2011: 22.0%). Ahead of the patent expiry in most markets in November 2012 and supported by an optimization of production processes, the top-selling product oxycodone recorded a very positive margin development. Also margin enhancing was the lower amortization on development projects. Overall, these effects overcompensated the steady price erosion and resulted in a strong profitability improvement of the BtB segment. • technology marketing with high capacity utilization but temporarily lower margins. While revenue increased strongly, the contribution margin of the operating segment declined to eUr 4.0 million (2011: eUr 7.6 million) or 5.9% of sales (2011: 18.8%). the margin erosion is attributable to contract manufacturing orders gained, albeit with low margin products, in the wake of the acquisition of the mepha/Cephalon businesses. Also weighing on the profitability is the continued price pressure on fentanyl patches and the production of penicillin/cephalosporin products at the manufacturing site in Liesberg (Switzerland), which will be terminated by the end of 2013 as part of the continued effort to optimize the product mix. • Production influenced by acquisition-related one-time item. the Operating Segment Production recorded a negative contribution of eUr – 10.3 million of which eUr 8.0 million were due to the transaction-related recognition of goods acquired from mepha/ Cephalon at market value. Deduction of items not contained in the contribution margin per segment, such as employee benefits and other operating expenses (for cross segment and not-production-related activities), resulted in the operating profit (eBIt) of eUr 8.9 million (2011: eUr 6.7 million).
net profit increase by 65% to EuR 9.4 million, supported by tax credit The net financial result of EUR –2.5 million (2011: income of EUR 0.7 million) contains foreign exchange items, one time charges in connection with the syndicate loan and the capital increase, and running interest expenses. In 2012, another unrealized tax loss carryforward of about EUR 7.7 million (related to the acquisition of the iclaprim business in 2009) could be applied. Together with a deferred income tax gain in connection with the step-up inventory this resulted in a net income tax credit of EUR 2.9 million (2011: tax burden of EUR 1.2 million). Overall, the Group increased net profit significantly to EUR 9.4 million (2011: EUR 5.7 million), up 65% year on year. Cash flows are a reflection of the high investment activity The acquisition of the Mepha/Cephalon operations influenced nearly every position of the cash flow statement. Cash flow from operating activities increased to EUR 24.4 million (2011: EUR 8.9 million; included substantial clopidogrel-related settlement payments). Cash flows from investing and financing activities mirror the cash payment for the acquired businesses (approx. EUR 90 million), the share capital increase (approx. EUR 20 million) and the capital expenditure for the new plant in Miesbach (Germany). Overall, the high investment activity resulted in a negative free cash flow of EUR –3.3 million (2011: EUR –22.7 million). Over the course of the year, liquid funds increased markedly by EUR 13.3 million to EUR 17.7 million (2011: cash outflow by EUR 16.1 million to EUR 4.4 million at year-end). Strong balance sheet albeit reduced equity ratio The magnitude of the Mepha/Cephalon transaction increased the company’s balance sheet total by year-end to EUR 505.8 million (December 31, 2011: EUR 330.4 million). Working capital increased significantly to EUR 149.0 million (December 31, 2011: EUR 58.2 million). With significant new assets – primarily the new site in Aesch (Canton Baselland, Switzerland) and the new manufacturing plant in Miesbach (Germany) – belonging to the Group, property, plant and equipment expanded to EUR 159.4 million by the end of 2012 (December 31, 2011: EUR 102.5 million). The syndicate loan to finance the acquisition and the postponed purchase price entailed a rise in total financial liabilities to EUR 117.9 million at year-end (December 31, 2011: EUR 13.0 million). After the authorized share capital increase by a total of EUR 20.3 million (implemented on February 2, 2012), shareholders’ equity rose to EUR 279.5 million (December 31, 2011: EUR 257.4 million) in the period under review. The acquisition-related high investment activity reduced Acino’s equity ratio to 55% by the end of the period under review (December 31, 2011: 78%) which is still at a high level and allows for financing growth of the Group going forward. Also as a result of the acquisition the indebtedness of the company increased to a net debt level of EUR 100.1 million. The net debt to EBITDA ratio amounted to 2.7. ACINO | PERFORMANCE REPORT net profit Group (in EUR million) 5.7 9.4 +65% 2011 2012 Key ratios (December 31, 2012) Equity ratio 55% Net debt to EBITDA ratio 2.7 15
Page 1 and 2: Acino Annual Report 2012 Business R
Page 3 and 4: Operating Segments • BtC (Busines
Page 5 and 6: ACINO Annual Report 2012 BuSInESS R
Page 7 and 8: ACINO | LETTER TO SHAREHOLDERS Dear
Page 9 and 10: The coming month will see a change
Page 11 and 12: ACINO Performance report of Managem
Page 13: EBITDA up 43% - exceptional integra
Page 17 and 18: • Synergies enhancing EBITDA. The
Page 19 and 20: ACINO | OUR BUSINESSES Acino - Tech
Page 21 and 22: BtB: Out-licensing innovative produ
Page 23 and 24: Expanding the business scope - worl
Page 25 and 26: ACINO | OUR TECHNOLOGIES Acino - De
Page 27 and 28: Acino - Europe’s No. 2 for transd
Page 29 and 30: Turning technologies into innovativ
Page 31 and 32: Aesch, Pfeffingerring (Switzerland)
Page 33 and 34: ACINO | CORPORATE GOVERNANCE Govern
Page 35 and 36: ACINO Leadership Team Board of Dire
Page 37 and 38: ACINO GROUP Financial Report Financ
Page 39 and 40: ACINO GROUP Consolidated statement
Page 41 and 42: ACINO GROUP Consolidated cash flow
Page 43 and 44: 3 Exchange rates for the most impor
Page 45 and 46: ACINO HOLDING AG Income statement A
Page 47 and 48: ACINO HOLDING AG Appropriations of
Page 49 and 50: ACINO Investor information Strategy
Page 51 and 52: ACINO 5-year review ACINO | INvestO
Page 53 and 54: Acino | imPRinT Editorial: Acino Ho

Annual Report 2012 - Acino

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