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Annual Report 2013
Merging Italian Creativity with Swiss Tradition
Annual Report 2013
Total assets
Net fixed assets (€/00)
( /000)
23.568
38.171
22.883
22.208
34.579
22.345
34.806
33.634
2010
2011
2012
2013
EBITDA (€/000)
5.446
2010
6.313
5.441
2010
2011
5.359
5.525
4.494
4.493
2011
2012
3.101
2.750
2010
2013
2010
2011
Merging Italian Creativity with Swiss Tradition
2012
2013
19,74%
20,14%
2012
2013
24,29%
2.913
2012
4.554
ROE
2.662
2011
2013
OPERATING INCOME (EBIT) (€/000)
NET PROFIT (€/000)
Mipharm® S.p.A.
Via Quaranta, 12
20141 Milan – Italy
Phone (39) 02 53548.1
Fax (39) 02 53548.010
e-mail: info@mipharm.it
www.mipharm.it
2012
22,24%
2013
2010
2011
“
Imagination is more
important than knowledge
”
Albert Einstein
Michele Gordigiani. Firenze, 29 Maggio 1835 - Firenze, 7 Ottobre 1909
Scuola ‘800 Toscana
“
Imagination is more
important than knowledge
”
Albert Einstein
Michele Gordigiani. Firenze, 29 Maggio 1835 - Firenze, 7 Ottobre 1909
Scuola ‘800 Toscana
Annual
ual Report 2013
Gerolamo Induno.
Milano, 13 Dicembre 1825 - Milano, 18 Dicembre 1890
Scuola ‘800 Lombarda
Cav. Lav. Dr. Giuseppe G. Miglio
“CREATIVITY LEADS TO A BETTER LIFE”
Letter of the Chairman
Dear Shareholders,
Ladies and Gentlemen:
Another year has passed, and I have the pleasure again to send you an Annual Report on an
exciting, yet challenging year.
2013 was dominated in Italy and specifically its pharmaceutical industry by annoying uncertainties. In many ways it was a "lost year": at a great cost for the country, politicians failed to provide
the necessary leadership, and economic activity even fell below the already unexciting level of the
previous year.
Despite this dismal environment, Mipharm continued its journey towards prosperity successfully:
Revenues grew 7.6% to € 38.4 mio., and Net Profit at € 2.9 mio. exceeded the previous year by
even 11.5%. Our Balance Sheet continues to be remarkably healthy.
These results are particularly impressive if we bear in mind that 2013 was anything but a normal
year for Mipharm. The challenging turnaround of our Quality Assurance and Quality Control
operations was in full swing and required a significant degree of Management time and attention,
not to mention the heavy financial investments that were necessary of our Manufacturing and
related areas.
In fact, Manufacturing will be one key focus also in 2014. The area will have to cope with a
tremendous workload again, and we will make absolutely sure that the Quality of their output
remains in the range of excellence. Notwithstanding this challenging goal, Cost Management will
also stay in our focus: without rigorously controlling our cash, our financial strength could not be
maintained. Effective Cost Management and financial efficiencies continue to be a key objective.
Also on the products side, there is promising news: the hormone commonly called "Vitamin D"
has gained the medical community's attention around the world. Not just for bone health and
muscle strength, as one would expect, but also for other areas, e.g. mental health and blood
pressure. Mipharm attempts to play a key role in the manufacturing of Vitamin D.
If Mipharm is to continue to grow and prosper, "business as usual" is hardly the recipe.
The Company has to rely on the daily commitment, the creativity and the energy of all of its
associates. Innovation will continue to occur in larger and smaller steps, but it can only happen in
an organization that strives constantly for excellence and a high-performance culture like
Mipharm's.
My thanks for a difficult, but nevertheless great 2013 go to all our customers, our associates, and
our shareholders. Success is always due to a joint effort. I am grateful to all of Mipharm's
stakeholders for their continued support in the future.
Cav. Lav. Dr. Giuseppe Giampiero Miglio
Founder, Chairman and Chief Executive Officer
3
Mipharm ® Board of Directors
Giuseppe G. Miglio
Founder, Chairman
and Chief Executive Officer
Max Link
Luca Grisotti
Vittorio Rizzo
Ernst Nikolas Meijnders
Director
Director
Director
Director
Board of Auditors
Ermanno Ramella
Laura De Gioia
Vittorio Dodi
President
Auditor
Auditor
MIPHARM® S.p.A.
Headquarters:
Share Capital:
Milan Registered
Company’s number
and Fiscal code:
VAT number:
4
Via Quaranta, 12 – 20141 Milano – Italia
7,669,056.00
10036820156
12304990158
MIPHARM® Executive Committee – MEC
Giuseppe G. Miglio
Founder, Chairman
and Chief Executive Officer / CEO
In the above picture, from your left:
Francesco Petrucci
CFO
Donata Pezzuto
Quality Unit
Alessandro Cipriani
Production Operations
Nicola Cadei
COO
Massimo Prini
Technology / Special Services
Luca Grisotti
General Manager
Giovanni Baldelli
Human Resources
Paola Fazzalari
Legal Affairs
Mario Ronchetti.
Cantù, 10 Marzo 1922
5
Merging Italian Creativity with Swiss Tradition
Luigi Conconi.
Milano, 1852 - Milano, 1917
Scuola ‘800 Lombarda
Leonardo Bazzaro.
Milano, 13 Dicembre 1853
Milano, 2 Novembre 1937
Scuola ‘800 Lombarda
6
Merging Italian Creativity with Swiss Tradition
“New Mipharm”
Financial Report – Period Ending 31 December 2013 (in €)
Period Ending
Revenues
31 December
2013
38.359.072
100%
14,4%
11,9%
7,6%
31 December
2012
35.701.499
100%
14,2%
11,7%
6,9%
2013-2012
2.657.573
EBITDA
5.525.192
Operating Income (EBIT)
4.553.652
Net Income
2.913.526
Primary Cash Flow
3.885.066
3.609.488
275.578
-503.927
2.353.232
-2.857.159
20,1%
11,9%
11,9%
37,9%
19,7%
12,9%
12,6%
0,4%
-1,0%
-0,7%
-0,8%
Free Cash Flow
ROE
ROI
ROS
Equity / Invested capital
5.441.090
4.493.627
2.662.025
38,7%
84.102
60.025
251.501
7,4%
1,5%
1,3%
9,4%
7,6%
Giovanni Boldini.
Ferrara, 31 Dicembre 1842
Paris (Francia), 11 Luglio 1931
Scuola ‘800 Toscana
7
Merging Italian Creativity with Swiss Tradition
“New Mipharm”
Income Statement – Period Ending 31 December 2013 (in €)
Period Ending
Revenues
31 December
2013
38.359.072 100,0%
31 December
2012
2013-2012
35.701.499 100,0%
2.657.573
7,4%
Operating Costs
32.833.880
85,6%
30.260.409
84,8%
2.573.471
EBITDA
5.525.192
14,4%
5.441.090
15,2%
84.102
1,5%
Operating Income (EBIT)
4.553.652
11,9%
4.493.627
12,6%
60.025
1,3%
–322.872
–0,8%
–271.615
–0,8%
-51.257
318.260
0,8%
–17.820
–0,0%
336.080
Financial Costs
Non-recurrent Income (Expenses)
Pre-Tax Income (EBT)
4.549.040
4.204.192
344.848
Taxes
–1.635.707
–4,3%
–1.542.167
–4,3%
-93.540
Net Income
2.913.333
7,6%
2.662.025
7,5%
251.308
8,2%
9,4%
Leonardo Bazzaro.
Milano, 13 Dicembre 1853
Milano, 2 Novembre 1937
Scuola ‘800 Lombarda
8
Merging Italian Creativity with Swiss Tradition
Leonardo Bazzaro. MIlano, 13 Dicembre 1853 - Milano, 2 Novembre 1937
Scuola ‘800 Lombarda
9
Merging Italian Creativity with Swiss Tradition
Silvestro Lega.
Modigliana, 8 Dicembre 1826
Firenze, 21 Novembre 1895
Scuola ‘800 Toscana
Beppe Ciardi.
Venezia, 1875 - Quinto di Treviso, 1932
Scuola ‘800 Veneta
10
Merging Italian Creativity with Swiss Tradition
“New Mipharm”
Cash Flow Statement – Period Ending 31 December 2013 (in €)
12 Months – Period Ending
31 December
2013
31 December
2012
2.913.526
2.662.025
Depreciation of PP&E
865.302
840.930
Amortization of Intangibles
106.238
81.533
Employee Severance Payments
–85.777
–279.945
Provision for Risk and Charges
-112.643
–259.675
371.871
1.557.192
-1.951.528
–1.904.235
-916.517
–139.771
-1.200.274
–200.548
Increase (Decrease) in Other Current Liabilities
641.639
925.758
Increase (Decrease) in Other Working Capital
-88.426
–23.564
543.411
3.259.700
29.606
10.010
Increase of Assets for internal work
0
0
(Purchase) of PP&E and Intangibles
–1.136.527
–970.645
–1.106.921
–960.635
59.583
54.167
–2.540.624
–2.498.376
Net Cash from Financing Activities
–2.481.041
–2.444.209
Net Change in Cash & Cash Equivalents
-3.044.551
–145.144
Operating Activities
Net Income (Loss)
(Increase) Decrease in Receivables
(Increase) Decrease in Inventory
(Increase) Decrease in Other Current Assets
Increase (Decrease) in Payables
Net Cash from Operating Activities
Investment Activities
Sale of PP&E and Intangibles
Net Cash from Investment Activities
Financing Activities
Capital increase
Payment of Cash Dividends
11
Merging Italian Creativity with Swiss Tradition
“New Mipharm”
Revenues – Period Ending 31 December 2013 (in €)
Period Ending
31 December
2013
31 December
2012
Manufacturing
37.244.988
34.601.956
Special Services
1.114.084
1.099.543
38.359.072
35.701.499
Total
Mario Acerbi. Milano, 1887 - Pavia, 1982
Scuola ‘800 Lombarda
12
Merging Italian Creativity with Swiss Tradition
Comments to Year 2013
Despite a few aftershocks after the eventful previous year, Mipharm ended 2013
in an enviable position - financially remarkably stronger, with a considerably
expanded, modernized and more resourceful technology base and well trained,
committed associates ready to confront the challenges of the future.
With no internal discontinuities or external disruptions along the way, Mipharm
stayed focused on an accelerated revenue generation, and, also thanks to rigorous
cost controls, remarkably improved its profitability. Mipharm's technical capabilities, ranging all the way from product development to manufacturing as well as
Quality Assurance and Quality Control are proof of our unwavering commitment
to excellence and our perseverance.
Vittorio Matteo Corcos. Livorno, 4 Ottobre 1859 - Firenze, 8 Novembre 1933
Scuola ‘800 Toscana
13
Merging Italian Creativity with Swiss Tradition
“New Mipharm”
Profit and Loss Statement – Period Ending 31 December 2013 (in €/000)
Period Ending
31 December
2013
31 December
2012
38.757
36.134
35.084
34.289
3.275
1.412
398
433
B Cost of production
34.203
31.640
Raw material
13.699
13.332
Salaries and wages
11.364
9.955
Value adjustments
971
948
A Value of manufacturing
Net Revenues (sales and services)
Increase of WIP
Other operating income
a Amortisation of intangible assets
106
82
b Depreciation of tangible assets
865
841
0
25
c Other adjustments
Other operating charges
Difference between value and cost production
C Financial income and charges
D Extraordinary income and charges
Proft (loss) before income taxes
Income taxes
Net Profit (loss) for the financial period
14
8.169
7.405
4.554
4.494
–323
–272
318
–18
4.549
4.204
–1.636
–1.542
2.913
2.662
Merging Italian Creativity with Swiss Tradition
“New Mipharm”
Balance Sheet, 2013 (in € /000)
Assets
2013
31 December
2012
31 December
14.442
11.859
152
6.224
3.230
4.836
317
4.272
2.685
4.585
23.568
22.883
22.244
274
1.050
22.305
78
500
161
64
38.171
34.806
21.853
19.281
11.974
308
6.283
3.288
8.743
408
7.483
2.647
B Provision for Risk and Charges
243
355
C Employee severance payments
1.538
1.624
D Accruals and deferred income
71
63
E Capital and reserves
14.466
13.483
TOTAL EQUITY AND LIABILITIES
38.171
34.806
A Current Assets
Cash or Cash Equivalents
Inventories
Receivables and other assets
Non-Permanent Investments
B Fixed Assets
Tangible assets
Intangible assets
Financial assets
C Prepaid expenses and deferred charges
TOTAL ASSETS
Equity and Liabilities
A Creditors
Banks
Other Financiers
Accounts Payable
Other Creditors
15
Merging Italian Creativity with Swiss Tradition
Giovanni Carnovali “detto il Piccio”.
Montegrino Valtravaglia, 29 Settembre 1804 - Coltaro, 5 Luglio 1873
Scuola ‘800 Lombarda
16
Merging Italian Creativity with Swiss Tradition
Outlook for 2014
While 2013 was a record year by any standard, 2014 started more cautiously but
in a nevertheless encouraging mode. By the time it is over, we are confident that
we can add another financially successful year to a number of impressive years.
In the meantime we stay focused on what we are doing best: patients' needs are at
the forefront of our minds while we do everything to remain a reliable supplier to
our customers as well as a demanding but fair employer for our associates. And
we will attempt to deliver once again an attractive return to our shareholders.
To be able to achieve our challenging objectives, we depend on a stable economic
and political environment. Continued political instability in Italy in the longer
term would have its costs for the economy of the country, including Mipharm.
We are confident that our country will return to a more predictable pattern.
Gaetano Spinelli.
Bitonto, 6 Agosto 1877
Firenze, 4 Marzo 1945
Scuola ‘800 Toscana
17
Merging Italian Creativity with Swiss Tradition
Domenico Morelli. Napoli, 4 Agosto 1826 - Napoli, 13 Agosto 1901
Scuola ‘800 Napoletana
18
Merging Italian Creativity with Swiss Tradition
Rinaldo Agazzi. Mapello, 30 Ottobre 1857 - Bergamo, 24 Maggio 1939
Scuola ‘800 Lombarda
19
Produced by
MIPHARM S.p.A. – Italy
Printed by:
COLORSYSTEM SaS - Italy
Milan, Italy – March 2014
“
Imagination is more
important than knowledge
”
Albert Einstein
Michele Gordigiani. Firenze, 29 Maggio 1835 - Firenze, 7 Ottobre 1909
Scuola ‘800 Toscana
Mipharm® S.p.A.
Via Quaranta, 12
20141 Milan – Italy
Phone (39) 02 53548.1
Fax (39) 02 53548.010
e-mail: info@mipharm.it
www.mipharm.it