Recordati Industria Chimica e Farmaceutica

Investor Presentation • Oct 29, 2020

2020 First nine months results

CONFERENCE CALL – 29 OCTOBER 2020

First nine months 2020 highlights

• • Resilient performance across the Group despite challenging environment, with Net Revenue of € 1,093.8 million or ‐ 0.6% continuing to reflect COVID‐19 impact on market and significant FX headwind of ‐1.7% YTD (‐3.9% in Q3)
• • First nine months profitability remains strong thanks to cost discipline and improved product mix:
  • ‐ EBITDA(1) € 438.8 million or 40.1% of sales, +7.1%
  • ‐ Net Income € 274.1 million or 25.1% of sales, +8.1%
  • ‐ Adjusted Net Income(2) € 317.5 million or 29.0% of sales, +12.3%
• • Continued strong progress of Signifor® and Signifor® LAR and of Isturisa® launch, contributing € 53.8 million of Net Revenue YTD. Isturisa® now on the market in the US, France and Germany with sales on track with objectives.
• • Cystadrops® (cysteamine ophthalmic solution) 0.37% now launched in the U.S. following FDA approval, providing an important treatment option for patients with corneal cystine crystal deposits
• • Exclusive license agreement signed with ARS Pharmaceuticals for ARS‐1, an epinephrine nasal spray in late‐stage development for the emergency treatment of severe allergic reactions that can lead to anaphylaxis. Agreement grants commercialization rights in EU, UK, Russia/CIS, Turkey, Middle East and other markets
• • Net debt at € 845.9 million, compared to net debt of € 902.7 million at 31 December 2019, reflecting strong cash generation of around € 267 million, before milestones, net share repurchases, and dividends paid
• • On 1st October Recordati's Board of Directors approved the proposed incorporation through reverse merger of FIMEI S.p.a. and Rossini Investimenti S.p.a. in Recordati S.p.a., subject to shareholder approval. There will be no change to the respective share ownership in Recordati of its majority shareholder and other shareholders. There will be no change to Recordati's financial position, strategy or capital allocation policy.

(1) Net income before financial (income) expense, provision for taxes, depreciation, amortization and write down of property, plant and equipment,

2intangible assets and goodwill, and non‐recurring items.

(2) Net income excluding amortization and write‐down of intangible assets (except software) and goodwill, and non‐recurring items, net of tax effects.

Main product sales

Corporate products including drugs for rare diseases account for 68.9% of revenue

( l l ) i io Eu m n ro	9 2 0 2 0 m o s	9 2 0 9 1 m o s	h C % a n g e
d ® ( l d ) i i i i i Z a n p e r a n p n e c	1 0 6 1	1 0 2. 2	3. 8
( ) ® l d l l Z i i i i i +e a n p r e s s e r c a n p n e n a a p r	3 8 2	4 4 4	( ) 1 3. 8
( ) ® l d U i i r o r e c s o o s n	8 5 5	8 2. 7	( ) 2 9. 3
® ( ) L i i i t t t v a z o p a v a s a n	4 2 5	4 0. 0	6. 1
®/ / l k l k ® ® i S S Z O K L e o e n e o e n o g m a x ( / ) l l l l f l d i i t t + m e o p r o o m e o p r o o e o p n e	7 7 7	7 2. 5	7. 2
( ) 1 h d O t t t e r c o r p o r a e p r o u c s	1 9 8 7	2 2 5. 5	( ) 1 1. 9
( ) 2 f d i D r u g s o r r a r e s e a s e s	2 3 2 4	1 7 7. 1	3 2 1.

(1) Include the OTC corporate products for an amount of € 78.4 million in 2020 and € 84.7 million in 2019 (‐7.5%)

(2) Includes revenue related to Signifor®, Signifor® LAR and Isturisa® of € 53.8 million in first nine months 2020 and none in first nine months 2019

A diversified product portfolio

Data: First nine months 2020 Total revenue € 1,093.8 m

4

Composition of revenue by geography

( l l ) i io Eu m n ro	9 2 0 2 0 m o s	9 2 0 1 9 m o s	h % C a n g e
l I t a y	2 0 2 9	2 1 5. 1	( ) 5. 7
F r a n c e	1 0 9 1	1 1 7. 0	( ) 6. 7
G e r m a n y	0 0 6 1	1 0 1. 5	( ) 0. 9
U S. A	8 9 4	7 8. 3	1 4 1
h d k R i C I S i U i t t u s s a, o e r c o u n r e s a n r a n e	6 9 1	8 3. 6	( ) 1 7. 3
S i p a n	6 3 1	6 9. 4	( ) 9. 1
k T r e u y	6 2 4	6 3 5.	( ) 4 4
l P t o r g a u	3 2 6	3 3. 0	( ) 1. 3
h O C i E E t t e r c o n r e s u	6 7 1	6 0. 0	1 1. 8
h O W i E t t e r r o p e a n c o n r e s u u	6 6 9	9 5 5.	1 9. 6
h f N A i t o r r c a	3 3 4	3 0. 3	1 0. 2
h l l O i i t t t e r n e r n a o n a s a e s	9 3 1 5	1 5 6. 9	1. 6
( ) 1 T O T A L P H A R M A C E U T I C A L S	1, 0 5 5 9	1, 0 6 6. 4	( ) 1. 0

( lo l c l l ) i io In ca ur re nc y, m ns	9 2 0 2 0 m o s	9 2 0 1 9 m o s	h C % a n g e
i ( 2) R ( ) R U B u s s a	4, 2 7 6 8	4, 8 2 4 1	( ) 1 1. 4
k ( 2) T ( ) T R Y u r e y	4 5 0 3	3 9 3. 0	1 4 6
U S. A ( ) U S D	1 0 0 6	8 8. 0	1 4 3

(1) Both years include sales as well as other income and exclude sales of pharmaceutical chemicals for an amount of € 37.9 million in the first nine months 2020 and € 34.1 million in the first nine months 2019 (+11.3%)

(2) Net revenues in local currency in Russia and in Turkey exclude sales of products for rare diseases.

5

Geographical breakdown of pharmaceutical* revenue

Data: First nine months 2020 Pharmaceutical* revenue € 1,055.9 m

* Excluding sales of pharmaceutical chemicals which are € 37.9 million, up by 11.3% and represent 3.5% of total revenue.

First nine months 2020 results

( ) l l i io Eu m n ro	9 2 0 2 0 m o s	9 2 0 9 1 m o s	h C % a n g e
R e v e n u e	1, 0 9 3 8	1, 1 0 0. 4	( ) 0. 6
f i G P t r o s s r o	7 8 5 6	7 7 1. 3	1. 8
f % a s o r e v e n u e	7 1. 8	7 0. 1
S G & A E x p e n s e s	3 1 0 3	3 2 2 5.	( ) 6 4
f % a s o r e v e n u e	2 8. 4	2 9. 5
& R D E x p e n s e s	1 0 6 3	9 1. 6	1 6. 1
f % a s o r e v e n u e	9. 7	8. 3
( ), h O I E t t e r n c o m e x p e n s e n e	( ) 4 9	( ) 1. 1	n. s.
f % a s o r e v e n u e	( ) 0. 4	( ) 0. 1
i O I t p e r a n g n c o m e	3 6 4 0	3 5 3. 5	3. 0
f % a s o r e e n e v u	3 3. 3	3 2. 1
N I t e n c o m e	2 1 7 4	2 5 3. 7	8. 1
f % a s o r e e n e v u	2 5. 1	2 3. 1
( ) 1 d d A j I N t t u s e e n c o m e	3 1 7 5	2 8 2. 8	1 2. 3
f % a s o r e v e n u e	2 9. 0	2 5. 7
( ) 2 I A E B T D	4 3 8 8	4 0 9. 6	1 7.
f % a s o r e v e n u e	4 0. 1	3 7. 2

(1) Net income excluding amortization and write‐down of intangible assets (except software) and goodwill, and non‐recurring items, net of tax effects.

7 (2) Net income before financial (income) expense, provision for taxes, depreciation, amortization and write down of property, plant and equipment, intangible assets and goodwill, and non‐recurring items.

First half nine months results

Net financial position

( l l ) i i E m o n u r o	3 0 S 2 0 2 0 e p	3 2 0 9 1 D 1 e c	h C a n e g
h d h f l i i i C t‐ t t t a s a n s o r e r m n a n c a n v e s m e n s	2 7 7 6	1 8 7. 9	8 9. 7
k d f d h l B t t‐ t a n o v e r r a s a n s o r e r m o a n s	( ) 1 4 7	( ) 1 3. 4	( ) 1. 3
* d l d h L i i t o a n s a n e a s e s u e w n o n e y e a r –	( ) 2 1 9 9	( ) 1 4 9. 8	( ) 7 0. 1
d l d f * L t o a n s a n e a s e s u e a e r o n e y e a r –	( ) 8 8 8 9	( ) 9 2 7. 4	3 8. 5
N E T F I N A N C I A L P O S I T I O N	( ) 8 4 5 9	( ) 9 0 2. 7	5 6. 7

* Includes change in fair value of the relative currency risk hedging instruments (cash flow hedge)

Full year 2020 outlook

10

Still expect EBITDA and Adjusted Net Income near lower end of 2020 guidance range despite increased FX and COVID‐19 headwinds

• • Expect full year revenue marginally below prior year, due to:
  • • Second wave of COVID‐19 lock downs continuing to impact demand also into Q4
  • • Strong FX headwinds, impact of ‐2%/‐3% expected for the year (primarily TRY and RUB)
• • Signifor®, Signifor® LAR and Isturisa® reported net revenue* on track to deliver € 80 million in the year, of which Isturisa® sales expected > € 10 million
• • COVID‐19 lockdown impact on activity spend expected to continue off‐setting lower revenue and incremental investment in US behind early US Isturisa® launch
• • Expect tax rate to be 22%‐23%, thanks to slightly better country mix and higher on‐going patent box benefit
• • Dividend payout policy confirmed at 60% of reported net income. Interim 2020 dividend of € 0.50 per share to be distributed

* Only margins on sales of Signifor® and Signifor® LAR booked until marketing authorization transfer from Novartis to Recordati

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 throughout the whole of Europe, including Russia, 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 a number of 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 2019 was € 1,481.8 million, operating income was € 465.3 million and net income was € 368.9 million.

Contact Information Offices:Recordati S.p.A.Via M. Civitali 120148 Milano, Italy

Investor Relations: Marianne Tatschke +39 02 48787393 tatschke.m@recordati.it

Website: www.recordati.com