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JANUARY 23, 2014 OJSC «VEROPHARM» ANNOUNCES FINANCIAL RESULT S OF 9 MONT HS OF 2013January 23, 2014, MOSCOW - OJSC «VEROPHA RM» [RTS:VRPH, MICEX:VFRM] announces its unaudited financial results for 9 months of 2013 in accordance with the International Financial Reporting Standards (IFRS).
SALESo Sales for 9 months of 2013 amounted to RUR 3,578.1 mln. The share of product segments in OJSC "Veropharm" sales is as follows:
Group of pharmaceutical products Rx drugs sales amounted to RUR 2,596.7 mln. The Rx drugs sales made 72.6% of total sales of the Company;
OTC drugs sales amounted to RUR 569.2 mln. The OTC drugs sales made 15.9% of total sales of the Company.
Traditional drugs sales amounted to RUR 12.5 mln. The traditional drugs sales made
0.3% of total sales of the Company.
Group of non-pharmaceutical products Non-pharmaceutical products sales made RUR 399.7 mln, which corresponds to
11.2% of total sales of the Company.
o Under the Federal Reimbursement Program (FRP) Veropharm's sales amounted to
RUR 27.1 mln according to the results of 9 months of 2013, which corresponds to
0.8% of the Company's total sales.
o The Russian Federation is the main market and ensures 94.0% of the Company's sales. During 9 months of 2013 the Company has exported 6.0% of its products.
119530, Mos cow, Rus s ia, Ochakovskoe shosse, 10-2-1, tel.: (+7495) 792 53 30
PROFITo For 9 months of 2013 the gross profit of OJSC "Veropharm" amounted to RUR 2,222.0 mln. The gross profit ratio 9 months of 2013 made 62.1%. The gross profit ratio of the segments of OJSC "Veropharm" is as stated:
Group of pharmaceutical products In relation to Rx drugs it made 62.3% for 9 months of 2013;
In relation to OTC drugs it made 67.0% for 9 months of 2013;
In relation to traditional products it made 44.8% for 9 months of 2013.
Group of non-pharmaceutical products In relation to non-pharmaceutical products it made 54.1% for 9 months of
2013.
o For 9 months of 2013 EBITDA amounted to RUR 951.3 mln. EBITDA margin made
26.6%.
o Operating profit for 9 months of 2013 made RUR 857.9 mln. Operating profit margin made 23.9% for 9 months of 2013.
o Net profit for the reporting period amounted to RUR 465.4 mln. Net profit margin made 13.0%.
FACILITIES INVESTMENTSo For 9 months of 2013 the amount of investments assigned for modernization and equipment of the main production facilities of the Company made RUR 1,976 mln.
DEBTo A s at September 30, 2013 the debt of OJSC "Veropharm" amounted to RUR 2,529.8 mln, which makes no more than 25% of the Company's net assets value.
RUR mln Segment sales Gross profit
9m2013 9m2012 % growth 9m2013 9m2012 % growth
Pharmaceutical products 3,178 3,413 -6.9% 2,006 2,491 -19.5%
Non-pharmaceutical
products 400 738 -45.9% 216 489 -55.8%
Total 3,578 4,151 -13.8% 2,222 2,980 -25.4%
119530, Mos cow, Rus s ia, Ochakovskoe shosse, 10-2-1, tel.: (+7495) 792 53 30
For further information please call OJSC "Veropharm":
Maksutova Nadiya,
Chief Financial Officer
maksutova.nadiya@veropharm.rutel. (+7 495) 792 53 30
Or visit the web-site of the Company www.veropharm.ru
Notes to the Editor:
VEROPHARM OJSC is one of the largest Russian pharmaceutical manufacturers.
Shares of the Company are traded at MICEX (ticker: VFRM). Market capitalization of the Company as of
December 23, 2013 totaled RUR 9,350 billion (according to RTS).
The charter capital of the Company makes 10 million ordinary shares.
VEROPHARM OJSC is the market leader in Russia for production of plasters and oncological medicines. The
Company's production facilities comprise 3 pharmaceutical plants in Belgorod, Voronezh and Pokrov. The Company's product portfolio includes more than 300 items. VEROPHARM OJSC employs more than 1,700 people.
In the annual research conducted by the portal SuperJob.ru among Russian companies OJSC "VEROPHARM" is recognized as one of the most attractive employers in the labor market and is awarded the sta tus of "Attractive employer-2012".
According to IMS Health, following the results of 9 months of 2013 Veropharm occupies the 6th position in the
rating "Russian pharmaceutical manufacturers in production volume terms".
According to IMS Health, following the results of 9 months of 2013, as compared to the same period of the previous year, Veropharm takes the following positions among Russian and foreign manufacturers in the rating "Oncology drugs manufacturers":
o 8th place in monetary terms
o 1st place in physical terms (occupies the leading position).
THIS DOCUMENT IS NOT AN ADVERTISEMENT OF SECURITIES IN THE RUSSIAN FEDERATION, AND IS NOT AN OFFER TO SELL, OR AN INVITATION TO MAKE OFFERS TO PURCHASE, ANY SECURITIES IN THE RUSSIAN FEDERATION.
NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.
This document may include statements that are "forward-looking statements", including future operating results of the Company. These forward-looking statements involve risk and uncertainty regarding implementation of future activities. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements. The Company undertakes no obligation to change these statements to reflect actual results.
This document does not contain a public offer to purchase securities in the US. The securities referred to herein have not be en and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to US persons.
This communication is being distributed only to and is directed only at (a) persons outside the United Kingdom, (b) persons w ho have professional experience in matters relating to investments, i.e., investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), and (c) high net worth companies, unincorporate d associations and other bodies to whom it may otherwise lawfully be communicated in accordance with Article 49 of the Order (all su ch persons together being referred to as "relevant persons"). The securities are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be available only to or will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.
119530, Mos cow, Rus s ia, Ochakovskoe shosse, 10-2-1, tel.: (+7495) 792 53 30
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veropharm
OJSC ''VEROPHARM" CONSOLIDATED INCOME STATEMENT FOR 9 MONTHS OF 2013 | |||
(in milfions of Russian Roubfes) | 9m.2013 | 9m.2012 | |
REVENUE | 3,578 | 4,151 | |
COST OF SALES | (1.356) | (1.171) | |
GROSS PROFIT | 2,222 | 2,980 | |
SELLING. GENERAL ANO ADMINISTRATIVE EXPENSES | (1.364) | (1.732) | |
OPERARING PROFIT | 858 | 1,248 | |
INTEREST EXPENSE/(INCOME) | (86) | 39 | |
FOREIGN CURRENCY EXCHANGE GAIN/(LOSS) | (90) | (66) | |
PROFIT BEFORE INCOME TAX | 682 | 1,221 | |
INCOME T.AX EXPENSE | (216) | (283) | |
PROFIT FOR THE YEAR | 465 | 938 |
119530.Moscow.Russia.Ochakovskoe shosse. 10·2·1, tel.:(•7495) 792 53 30
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veropharm
OJSC "VEROPHARM" CONSOLIDATED B.AJ..ANCE SHEET AT 30 SEPTEMBER 2013
(in millions of Russian Roubles) 30.09.2013 31.12.2012
ASSETS
NON.QJRRENT ASSETS:
Totalcurrent liabilities 3,3:11 1,999
TOTAL LIABILITIES 4,223 3,025
TOTAL EQUilY ANO LIABILITIES 13,184 11,469
119530.Moscow.Russia.Ochakovskoe shosse. 10·2·1, tel.:(•7495) 792 53 30
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veropharm
OJSC ''VEROPHARM"
CONSOUDAlED STAlEMENT OF CASH FLOWS FOR 9 MONTHS OF 2013
n millions of sSan Roubles)
OPERATING ACTIVITIES: Profrt for the year
Adjullmentsto profltfor theyear: Incorre tax
lnlerest expense
lnlerest income
Depreciation and amortization
Loss on disposai of other inlangible assets and property. plani and equipmenl
Change in allawance for doubtful debts Change in invenlory obsolescence allowance Foreign currency exc hange (gain)/loss. net Unused employmenl benefits
Profit before movementsin worl
Movementsin womng capitai: lncrease in inventories lncrease in!rade receivables
Decrease/Qncrease) in other recei>lables and prepaid expenses
Decrease/Qncrease) intrade payables lncrease in other payables and taxes pay able
Cash generated1tom operations
lnlerest paid
Incorre taxes paid
Net calil generated by operating activities
INVESTING ACTIVITIES:
9m2013 9m.2012
465 938
216 283
137 78 (51) (117)
93 104
4 (1)
26 15
28 63
90 66
1,008 1,429
(89) (113)
278 401
267 (559)
427 (701) (463) (454)
1,4211 3
(149) (99) (39) (148)
1,240 (244)
Purthase of property. plani. equipment
(1.976)
(623)
Proceeds li'om disposal of property. plani. equipment
5
5
Purthase of inlangible assets
(357)
(20)
Proceeds li'om repaymenl of loans given
27
Net calil used ininvelling activities
(2,3211)
(611)
FINANCING ACTIIITIES:
Proceeds li'om borrawings
1.785
2.220
Repaymenl of borrowings and obligations under finance leases
(f5'l}
(1.124)
Net calil used infinandng activities
1,033
1,096
NET INCREASE/IDECREASEIIN CASH ANO CASH EOOIVALENTS
(54)
241
Effect of exchanges in baiance of c ash held in foreign c urrenc ies
(5)
CASH AND CASH EQUIVALENTS. beginning of period
308
80
CASH AND CASH EQUIVALENTS. end of period
249
322
119530.Moscow.Russia.Ochakovskoe shosse. 10·2·1, tel.:(•7495) 792 53 30
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