Recordati Industria Chimica e Farmaceutica

Earnings Release • Nov 8, 2022

2022 First Nine Months Results

Milano, 08th November 2022

First nine months 2022 key highlights

• Very strong YTD operating performance, with Revenue and EBITDA ahead of expectations
• Net Revenue of €1,377.5 million, +19.1% overall, with organic growth at CER(1) of +10.4%:
• Continued strong momentum in SPC, ahead of relevant markets, driven by Cough & Cold, GI, OTC & Eligard®
• Legacy RRD continuing to grow double digit, with strong growth of both endo and metabolic franchise (minimal US Gx impact)
• Rare Oncology franchise revenue contribution in Q2-Q3 of €91.1 million from EUSA Pharma acquisition, ahead of plan
• EBITDA(2) of €516.2 million is +15.2% vs PY, with margin of 37.5% remaining strong despite dilutive effect of Turkey hyperinflation accounting (YTD uplift on reported revenue of ~€5 million, negative effect on operating income and EBITDA of ~€7 million)
• Adjusted Net Income(3) of €355.9 million is +13.5% vs PY, absorbing higher financing expenses and FX losses incurred in 1H
• Continued strong Free cash flow(4) €346.3 million, with Net Debt(5) just below 2x EBITDA
• Reported results reflect IFRS3 accounting adjustments related to EUSA Pharma acquisition, planned non-recurring expenses (EUSA and SPC rightsizing) and impact of FX volatility in 1H of the year
• Important milestones achieved supporting our key growth platforms
• new Eligard® device approved by Reference Member State (Germany) , national registration and transition planning ongoing
• Transfer from Novartis of key Signifor® LAR microparticles production steps successfully completed
• ESG effort further recognized, with MSCI rating A confirmed, upgrade to "Robust" level in ESG overall score provided by Moody's ESG Solutions in September and "Platinum" rating from EcoVadis

4) Operating cash flow excluding financing items, milestones, dividends, purchases of treasury shares net of proceeds from exercise of stock options

5) Cash and cash equivalents, less bank debts and loans, which include the measurement at fair value of hedging derivatives

2

¹⁾ Revenue excluding newly acquired rare oncology franchise (EUSA Pharma) and considering like for like sales treatment for Eligard® in 2022 vs 2021 (pre SOTC transition)

²⁾ Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

³⁾ Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3) and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects

Key Rare Diseases franchises performance

Strong growth of Endo and Oncology franchises, on track with longer term ambitions

(million Euro)

3

Main products sales

(million Euro)	9M 2022	9M 2021	Change %
(1) Zanidip® and Zanipress® (lercanidipine+enalapril)	131.9	138.5	(4.7)
Seloken®/Seloken® ZOK/Logimax® (metoprolol/metoprolol+felodipine)	72.5	73.0	(0.7)
(2) Eligard®	78.6	59.4	32.5
Urorec® (silodosin)	46.2	45.3	2.0
Livazo® (pitavastatin)	35.7	31.8	12.1
Other corporate products (3)	230.7	198.1	16.5
Drugs for rare diseases	429.8	279.4	53.8
o/w Endo franchise(4)	126.6	90.5	39.9
o/w Onco franchise	91.1	n.a.	n.a.

€5.4 million revenue impact of Turkey hyperinflation not allocated

1) of which Zanidip® € 103.4 million in 9M 2022 and € 107.2 million in 9M 2021

2) Eligard® net revenue includes margins booked as net revenue until transfer of market authorizations and distribution (mostly 2021)

3) Includes the OTC corporate products for an amount of € 94.3 million in 9M 2022 and € 79.3 million in 9M 2021

4) Endo franchise includes net revenue for Signifor® and Signifor® LAR of € 66.8 million and Isturisa® of € 59.8 million in 9M 2022

A diversified product portfolio

Data: First nine months 2022 Total revenue € 1,377.5 million

Composition of revenue by geography

(million Euro)	9M 2022	9M 2021	Change %
Italy	206.8	195.8	5.6
U.S.A.	190.7	127.5	49.6
France	126.2	112.2	12.4
Germany	123.9	111.7	10.9
Spain	104.5	85.9	21.8
Portugal	40.7	33.5	21.4
Turkey	59.9	53.5	12.0
Russia, other CIS countries and Ukraine	88.7	63.4	39.8
Other CEE countries	94.8	80.3	18.1
Other W. Europe countries	99.8	75.9	31.5
North Africa	28.7	27.3	4.8
Other international sales	176.9	153.7	15.1
TOTAL PHARMACEUTICALS	1,341.7	1,120.8	19.7
CHEMICALS	35.9	35.4	1.3

(In local currency, millions)	9M 2022	9M 2021	Change %
U.S.A. (USD)	202.9	152.5	33.0%
Turkey (TRY)	906.7	478.7	89.4%
Russia (RUB)(1)	5,210.0	4,040.3	29.0%

Geographical breakdown of pharmaceutical^¹ revenue

Data: First nine months 2022 Pharmaceutical (1) revenue € 1,341.7 million

7

First nine months 2022 results

(million Euro)	9M 2022	9M 2021	Change %
Revenue	1,377.5	1,156.2	19.1
Gross Profit	954.7	843.2	13.2
as % of revenue	69.3	72.9
Adjusted Gross Profit(1)	990.4	843.2	17.5
as % of revenue	71.9	72.9
SG&A Expenses	411.8	347.1	18.6
as % of revenue	29.9	30.0
R&D Expenses	155.7	119.7	30.1
as % of revenue	11.3	10.4
Other Income (Expense), net	(31.4)	(3.5)	n.m.
as % of revenue	(2.3)	(0.3)
Operating Income	355.9	372.9	(4.6)
as % of revenue	25.8	32.3
Adjusted Operating Income(2)	423.7	375.0	13.0
as % of revenue	30.8	32.4
Financial income/(Expenses), net	(46.2)	(22.2)	n.m.
as % of revenue	(3.4)	(1.9)
Net Income	241.5	296.4	(18.5)
as % of revenue	17.5	25.6
Adjusted Net Income(3)	355.9	313.4	13.5
as % of revenue	25.8	27.1
EBITDA(4)	516.2	447.9	15.2
as % of revenue	37.5	38.7

1) Gross profit adjusted from impact of non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

2) Net income before income taxes, financial income and expenses, non-recurring items, and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3) 3) Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3) and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects

4) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising

from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

8

First nine months 2022 results

Operating Segments

Treatments for rare diseases 31.2%

Specialty and primary care 68.8%

REVENUE EBITDA (1)

Treatments for rare diseases 36.4%

Specialty and primary care 63.6%

Margin on Sales:

Treatments for rare diseases: EBITDA (1) 43.7% Specialty and primary care: EBITDA (1) 34.6%

1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

First nine months 2022 cash flow

(million Euro)	9M 2022	9M 2021	Change
EBITDA (1)	516.2	447.9	68.3
Movements in working capital	(40.2)	12.8	(53.0)
Changes in other assets & liabilities	(5.8)	(14.6)	8.8
Interest received/(paid)	(13.3)	(11.3)	(2.0)
Income Tax Paid	(56.0)	(61.6)	5.6
Other	(39.2)	(5.1)	(34.1)
Cash flow from Operating activities	361.7	368.1	(6.4)
Capex (net of disposals)	(15.4)	(15.2)	(0.2)
Free cash flow (2)	346.3	352.9	(6.6)
Acquisition of subsidiaries(3)	(653.8)	-	(653.8)
Increase in intangible assets (net of disposals)	(67.2)	(61.4)	(5.8)
Dividends paid	(120.0)	(109.4)	(10.6)
Purchase of treasury shares (net of proceeds)	(30.0)	(29.0)	(1.0)
Other financing cash flows (4)	626.7	0.6	626.1
Change in cash and cash equivalents	102.0	153.7	(51.7)

1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

3) Net of acquired cash and cash equivalents from EUSA Pharma for € 53.2 million.

4) Opening of financial debts net of repayments and currency translation effect on cash and cash equivalents. 2022 amount also includes loan from EUSA Pharma, repaid for € 78.2 million

Net financial position

Net debt / EBITDA at end September just below 2x

(million Euro)	30 SEPT 2022	31 DEC 2021	Change
Cash and cash equivalents	346.6	244.5	102.1
Short-term debts to banks and other lenders	(5.7)	(8.7)	3.0
due within one year(1) Loans and leases –	(287.0)	(221.5)	(65.5)
due after one year(1) Loans and leases –	(1,390.8)	(750.8)	(640.0)
NET FINANCIAL POSITION (2)	(1,336.9)	(736.5)	(600.4)

1) Includes the fair value measurement of the relative currency risk hedging instruments (cash flow hedge) 2) Cash and cash equivalents, less bank debts and loans, which include the measurement at fair value of hedging derivatives

2022 Financial projections

	FY 2021 Actual	FY 2022 Target Old New		Key assumptions
Revenue yoy growth %	1,580 +9.1%	1,720 - 1,780 +10.8%	+/- 1,860 +17.7%	• and EBITDA(1) Revenue ahead of original target thanks to: - Strong underlying performance across both BU and key growth platforms - Marginally positive year on year FX, with USD and RUB strength offset by TRY devaluation - Proactive actions to sustain margins
EBITDA (1) margin on sales yoy growth %	602.3 38.1% +5.8%	630 - 660 +/-37% +7.1%	+/- 670 +/-36% +11.2%	• EBITDA(1) margin of 36% reflects roughly -0.7% dilutive effect of TRY hyperinflation (expected impact of +€15 million on Revenue and -€8 million on EBITDA), targeted incremental investments in Q4 behind growth drivers and phasing of R&D related payments • Financial expenses now expected at around €60 million, due to enduring strength of RUB (limited recovery of 1H FX losses),
Adjusted Net Income (2) margin on sales yoy growth %	424.6 26.9% +3.5%	450 - 470 +/-26% +8.3%	+/- 460 +/-25% +8.3%	with €10 million of net monetary losses from IAS 29 • Adjusted Net Income(2) expected in middle of target range, with higher operating results offset by higher financial expenses • Guidance for non-recurring costs and charges from Purchase Price Allocation of EUSA acquisition unchanged vs Q2 estimates

1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

12 2) Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3) and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects

Appendix

First nine months 2022 results – Details

Reconciliation of Net income to EBITDA(1)

(million Euro)	9M 2022	9M 2021	Change %
Net income	241.5	296.4	(18.5)
Income taxes	68.3	54.4
Financial income/(expenses), net	46.2	22.2
(2) o/w net FX losses	18.2	6.8
o/w net monetary gains/losses from application of IAS 29 (Turkey)	5.6	-
Non-recurring expenses	32.2	2.1
Non-cash charges from PPA inventory uplift	35.6	-
Adjusted Operating Income(3)	423.7	375.0	13.0
Depreciation, amortization and write downs of assets	92.4	72.9
o/w EUSA Pharma	13.1	-
EBITDA(1)	516.2	447.9	15.2

Reconciliation of Reported Net income to Adjusted Net income (4)

(million Euro)	9M 2022	9M 2021	Change %
Net income	241.5	296.4	(18.5)
Amortization and write-downs of intangible assets (exc. software)	71.5	52.7
o/w EUSA Pharma	12.3	-
Non-cash charges from PPA inventory uplift	35.6	-
Non-recurring expenses	32.2	2.1
Net monetary gains/losses from application of IAS 29 (Turkey)	5.6	-
Tax effects	(30.6)	(11.6)
Non-recurring tax items	-	(26.2)
Adjusted net income(4)	355.9	313.4	13.5

Summary of key items

• Sharp appreciation of RUB (and USD) results in €18.2 million unrealized FX losses and consolidation adjustments in first nine months (mostly 1H)
• Net monetary losses of €5.6 million from application of IAS 29 (Turkey) in 9M22
• Non-recurring costs of €32.2 million, of which around €19.2 million from EUSA Pharma acquisition and €11.1 million SPC rightsizing
• Non-cash charges arising from Purchase Price Allocation (IFRS 3) of EUSA Pharma:
• €35.6 million in 9M at the level of gross margin (from unwind of inventory revaluation)
• €12.3 million for intangible amortization
• Net income of €241.5 million (-18.5% vs PY) reflects:
• Amortization increase of around €19 million
• Net monetary losses of €5.6 million
• No non-recurring tax benefit in 2022 (+€26.2 million in 2021)
• Adjusted net income of €355.9 million, an increase of +13.5%

1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

2) FX losses and FX driven consolidation adjustments

3) Net income before income taxes, financial income and expenses, non-recurring items, and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3)

14 4) Net income excluding amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory (IFRS 3) and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects

Questions & Answers

Company declarations, disclaimers and profile

DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL REPORTS

The manager responsible for preparing the company's financial reports Luigi La Corte declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.

Statements contained in this presentation, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements.

All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.

Recordati, established in 1926, is an international pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), with a total staff of more than 4,300, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered in Milan, Italy, Recordati has operations in Europe, Russia and the other C.I.S. countries, Ukraine, Turkey, North Africa, the United States of America, Canada, Mexico, some South American countries, Japan and Australia. An efficient field force of medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in several therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati is a partner of choice for new product licenses for its territories. Recordati is committed to the research and development of new specialties with a focus on treatments for rare diseases. Consolidated revenue for 2021 was €1,580.1 million, operating income was €490.2 million and net income was €386.0 million.

Offices: Recordati S.p.A. Via M. Civitali 1 20148 Milano, Italy Investor Relations: Federica De Medici +39 02 48787146 demedici.f@recordati.it Investor Relations: Lucia Abbatantuoni +39 02 48787213 abbatantuoni.l@recordati.it Website: www.recordati.com