Annual Report 2012
Mipharm at a glance
Total assets
Net fixed assets
(e/000)
34,806
34,670 34,579
EBITDA
2010
2011
22,208 22,345
22,883
20,703
33,634
2009
(e/000)
2012
2009
2010
2011
2012
Operating Income EBIT (e/000)
(e/000)
6,313
5,359
4,493
5,441
5,446
4,039
4,494
2,294
2009
2010
(*) adjusted
Net Profit
2011
2012
2009
(*) adjusted
2010
Free Cash Flow
(e/000)
2012
(e/000)
3,285
3,101
2,750
2011
2,662
2,596
2,353
1,861
786
Mipharm® S.p.A.
Via Quaranta, 12
20141 Milan – Italy
Phone (39) 02 53548.1
Fax (39) 02 53548.010
e-mail: [email protected]
www.mipharm.it
2009
(*) adjusted
Merging Italian Creativity with Swiss Tradition
2010
2011
2012
2009
(*) adjusted
2010
2011
2012
Note: 2012 was heavily influenced by a total revamp of the QA/QC area,
demanding heavy investments in Assets and People.
Annual Report 2012
Mipharm at a glance
Total assets
Net fixed assets
(e/000)
34,806
34,670 34,579
EBITDA
2010
2011
22,208 22,345
22,883
20,703
33,634
2009
(e/000)
2012
2009
2010
2011
2012
Operating Income EBIT (e/000)
(e/000)
6,313
5,359
4,493
5,441
5,446
4,039
4,494
2,294
2009
2010
(*) adjusted
Net Profit
2011
2012
2009
(*) adjusted
2010
Free Cash Flow
(e/000)
2012
(e/000)
3,285
3,101
2,750
2011
2,662
2,596
2,353
1,861
786
Mipharm® S.p.A.
Via Quaranta, 12
20141 Milan – Italy
Phone (39) 02 53548.1
Fax (39) 02 53548.010
e-mail: [email protected]
www.mipharm.it
2009
(*) adjusted
Merging Italian Creativity with Swiss Tradition
2010
2011
2012
2009
(*) adjusted
2010
2011
2012
Note: 2012 was heavily influenced by a total revamp of the QA/QC area,
demanding heavy investments in Assets and People.
Giovanni Carnovali “detto il Piccio” · “Vergine orante”, disegno a matita
Giovanni Carnovali “detto il Piccio” · “Vergine orante”, disegno a matita
Annual Report 2012
“
Imagination is more
important than knowledge
”
Albert Einstein
Cav. Lav. Dr. Giuseppe G. Miglio
Letter of the Chairman
Dear Shareholders,
Ladies and gentlemen:
It is with pleasure and pride that I am sending you this letter at the beginning of 2013.
We are starting this year financially strong, a promising pipeline and renewed confidence.
Because 2012 was not easy – neither for the pharmaceutical industry in Italy in general nor
for Mipharm. The political instability in Italy and the virtual shrinking of the pharmaceutical
industry in our country required our full attention day by day. On the other hand, new
opportunities emerged in the field of generics and Supergenerics – the most important
fields our activities.
As a consequence and despite the dismal environment, Mipharm closed 2012 with revenues
of € 35.7 million (+3,5% over the previous year) and a Net Profit of € 2.6 million (7,3%
of Revenues). While this is 16.1% below the previous year (or € 3.1 million), one has to
bear in mind that unavoidable and costly reorganizations and streamlining of processes
required a substantial amount of financial resources (and management time!).
But our cash generation remained strong and allowed us to implement all the necessary
investments to keep our equipment state-of-the-art. The Company’s Balance Sheet continues
to be robust. We are proud that our joint effort produced such magnificent results.
The major challenge for us, however, was a thorough review of our Quality Assurance
and Quality Control operations. After an incident caused by human error in the early
summer, I felt compelled to revamp our total activities in this area. I am proud to say that
now we have the right systems and the right people in place. In fact, our QA/QC area has
become a key asset for the Company. And not only this: The People of Mipharm without
exception are fully aware of the importance of QA/QC, and constant training in the future
will minimize the possibility of other errors. The implementation of the highest standards
are my personal “priority number one”.
The imminent reorganization of our QA/QC activities would not have been possible
without the unconditional and decisive support which Novartis Basel gave us during many
months. That we can continue to serve our customers as a reliable supplier does not only
help Novartis as our largest client but, if fact, all of Mipharm’s customers. I am deeply
grateful to Novartis and their leadership for their generous help, particularly their Chief
Executive Officer, Mr. Joe Jimenez.
Last but not least, my sincere thanks go to the People of Mipharm. They made Mipharm
what it is and stands for today: a successful, fully integrated pharmaceutical company in
Italy with a bright promising future.
Cav. Lav. Dr. Giuseppe Giampiero Miglio
Founder, Chairman and Chief Executive Officer
3
Mipharm® Board of Directors
Giuseppe G. Miglio
Max Link
Luca Grisotti
Vittorio Rizzo
Ernst Nikolas Meijnders
Founder, Chairman
and Chief Executive Officer
Director
Director
Director
Director
Board of Auditors
Ermanno RamellaPresident
Laura De GioiaAuditor
Vittorio DodiAuditor
MIPHARM® S.p.A.
Headquarters:
Via Quaranta, 12 – 20141 Milano – Italia
Share Capital:
e 7,669,056.00
Milan Registered
Company’s number
and Fiscal code:10036820156
VAT number:12304990158
4
MIPHARM® Executive Committee – MEC
Giuseppe G. Miglio
Founder, Chairman
and Chief Executive Officer / CEO
In the above picture, from your left:
Francesco PetrucciCFO
Donata Pezzuto
Quality Unit / Q.P.
Alessandro Cipriani
Production Operations
Nicola CadeiCOO
Massimo Prini
Technology / Special Services
Luca Grisotti
General Manager
Giovanni Baldelli
Human Resources
Paola Fazzalari
Legal Affairs
5
Merging Italian Creativity with Swiss Tradition
Giovanni Carnovali, detto il Piccio
(Montegrino Valtravaglia, 29 settembre 1804 –
Coltaro, 5 luglio 1873)
Giovanni Carnovali, detto il Piccio, nato a Montegrino
Valtravaglia (VA), si trasferì in tenera età ad Albino in provincia
di Bergamo. Ben presto mise in luce le sue doti d’artista, tanto che
un aneddoto racconta che dipinse un mazzo di chiavi sulla porta
di una villa che in molti presero per vere. La famiglia capì che
la strada del piccolo era segnata, ed a soli 11 anni venne accolto
presso l’Accademia Carrara di Bergamo, sotto l’ala protettrice
del pittore neoclassico Giuseppe Diotti. Dimostrò fin dall’inizio
le sue capacità, dipingendo con colori vaporosi e morbidi, sullo
stile del romanticismo, in modo assolutamente autodidatta.
Assunse presto il soprannome il Piccio (il “piccolo”), che lo
accompagnò in tutta la sua vita artistica e non solo.
Intraprese, dall’età di 27 anni, una serie di viaggi volti allo
studio dei grandi maestri del XVII secolo che lo portarono a
Parma e Roma nel 1831 e Cremona dal 1832 al 1835, fino a stabilirsi definitivamente, nel 1836,
nella città di Milano. Altri viaggi lo portarono successivamente a Parigi (dove ebbe contatti con
Delacroix), nel 1845, con l’amico Trécourt, quindi nuovamente a Roma e Napoli.
Amava viaggiare a piedi, camminare a lungo e “sentire la terra”, ma anche nuotare a lungo.
Fu famoso anche per il suo carattere molto particolare e stravagante: si raccontano in tal senso
curiosi aneddoti tra cui quello che lo vide protagonista di un viaggio al paese d’origine al fine
di rivedere i suoi parenti. Dopo aver percorso parecchie miglia a piedi, giunse a destinazione
in piena notte. Vide che la casa dei suoi era illuminata, e si avvicinò riconoscendo le voci dei
parenti. Diede un’occhiata dalla finestra e, dopo aver appurato che tutti stavano bene ed erano
sereni, ritornò da dove era venuto.
Giovanni Carnovali morì il 5 luglio 1873 per un malore mentre stava nuotando nel Po.
L’artista
Lo stile del Carnovali è strettamente legato alla tradizione lombarda del rinascimento ed
è riconoscibile per una spiccata luminosità delle opere. Questa caratteristica crea nei dipinti
atmosfere quasi trasparenti con tonalità molto accese, richiamando in qualche modo i grandi
artisti del XVIII secolo tra cui Tiepolo e Zuccarelli.
Le sue principali opere riguardano scene bibliche, mitologiche e della storia di Roma. Molto
rinomati sono inoltre i suoi paesaggi ed i numerosi ritratti di personaggi dell’aristocrazia e
borghesia del tempo.
Definito come bizzarro ed inquieto, ha sempre avuto un tocco originale. La sua pennellata
sciolta, a tocchi ed a macchie, ha sempre mantenuto un grande realismo capace di trasmettere le
immagini direttamente alla coscienza, e lo rese uno tra gli artisti significativi dell’Ottocento, forse
il primo interprete di una pittura moderna che approderà alla Scapigliatura e al Divisionismo,
dandogli un carattere originale ed anticonformista.
Anche per questo non fu apprezzato dai contemporanei, spesso ritenuto o troppo antico o troppo
moderno. Al suo tempo la classicità dei soggetti non era apprezzata, senza contare che l’uso del non
finito agli occhi dei suoi contemporanei sembrò un oltraggio alla “buona pittura”. Soltanto nel 1909,
durante una mostra tenutasi a Milano, le sue opere vennero riscoperte dalla critica e rivalutate.
Citazioni
«Se vuole, ci mette tutti nel sacco» (Hayez)
6
Merging Italian Creativity with Swiss Tradition
New Mipharm
Financial Report – Period Ending 31 December 2012 (in €)
Period Ending
31 December
31 December
2012
20112012-2011
Net Sales35,701,499 100.0%
34,501,669 100.0%
1,199,830
3.5%
EBITDA
5,441,090 15.2%6,313,409
18.3%–872,319
–13.8%
Operating Income (EBIT)
4,493,627 12.6%5,359,355
15.5%–865,728
–16.2%
Net Income2,662,025
Primary Cash Flow
7.5%
3,101,216
9.0%
–439,191 –14.2%
3,609,488
4,055,270
–445,782
–11.0%
Free Cash Flow2.353,232
3,284,674
–931,442 –28.4%
ROE 19.7%
24.3% –4.6%
ROI 12.9%
15.9% –3.0%
ROS 12.6%
15.5% –2.9%
Equity / Invested capital
38.7%
38.0%
V.A. / Employee
0.8%
61,225 64,490 –3,265
–5.1%
Giovanni Carnovali
“detto il Piccio”
“Testa di bambino”,
olio su tela.
7
Merging Italian Creativity with Swiss Tradition
New Mipharm
Income Statement – Period Ending 31 December 2012 (in €)
Period Ending
31 December
31 December
2012
20112012-2011
Revenues
35,701,499100.0% 34,501,669100.0% 1,199,830 3.5%
Operating Costs
30,260,40984.8% 28,188,26081.7% 2,072,149
EBITDA
5,441,09015.2% 6,313,40918.3% –872,319
–13.8%
Operating Income (EBIT)
4,493,62712.6% 5,359,35515.5% –865,728
–16.2%
Financial Costs
Non-recurrent Income (Expenses)
–271,615–0.8%
–17,820
–0.0%
–237,420–0.7%
–34,195
–243,500
225,680
–0.7%
Pre-Tax Income (EBT) 4,204,192
4,878,435
–674,243
–13.8%
Taxes
–1,542,167–4.3% –1,777,219–5.2%
Net Income
2,662,0257.5% 3,101,2169.0% –439,191
–14.2%
8
235,052
Merging Italian Creativity with Swiss Tradition
Giovanni Carnovali “detto il Piccio” · “Salmace e Ermafrodito”, olio su tela, 60x46 cm, datato 1871
9
Merging Italian Creativity with Swiss Tradition
Giovanni Carnovali
“detto il Piccio”
“Ritratto di nobiluomo
cremonese”,
olio su tela, 43x55 cm
Giovanni Carnovali
“detto il Piccio”
“Ritratto
del conte Borromeo
di Vaprio d’Adda”,
olio su tela, 50x62 cm
10
Merging Italian Creativity with Swiss Tradition
New Mipharm
Cash Flow Statement – Period Ending 31 December 2012 (in €)
12 Months – Period Ending
31 December
2012
31 December
2011
Operating Activities
Net Income (Loss)
2,662,025
3,101,216
840,930
839,717
81,533
84,337
Employee Severance Payments
–279,945
–12,551
Provision for Risk and Charges
–259,675
–354,820
145,576
788,739
(Increase) Decrease in Inventory
–492,619
–820,689
(Increase) Decrease in Other Current Assets
–139,771
1,213,308
Increase (Decrease) in Payables
–200,548
121,791
Increase (Decrease) in Other Current Liabilities
925,758
–659,955
Increase (Decrease) in Other Working Capital
–23,564
44,226
Depreciation of PP&E
Amortization of Intangibles
(Increase) Decrease in Receivables
Net Cash from Operating Activities
3,259,7004,345,319
Investment Activities
Sale of PP&E and Intangibles
10,010
36,940
Increase of Assets for internal work
0
0
(Purchase) of PP&E and Intangibles
–970,645
–1,097,585
Net Cash from Investment Activities
–960,635–1,060,645
Financing Activities
Capital increase
Payment of Cash Dividends
Net Cash from Financing Activities
Net Change in Cash & Cash Equivalents
54,167
0
–2,498,376
–2,700,096
–2,444,209–2,700,096
–145,144584,578
11
Merging Italian Creativity with Swiss Tradition
New Mipharm
Revenues – Period Ending 31 December 2012 (in €)
Period Ending
Manufacturing
Special Services
Business Development
Total
31 December
31 December
20122011
34,601,95633,206,054
1,059,543
1,262,615
40,000
33,000
35,701,49934,501,669
Giovanni Carnovali “detto il Piccio” · “Bambino” disegno a matita
12
Merging Italian Creativity with Swiss Tradition
Comments to Year 2012
Mipharm continues its healthy development and concluded 2012 in a position of
strength, although the economic and political environment posed challenges at a
historic level.
The biggest hurdle, however and quite frankly, was homemade. A single incident
in the QA/QC area created havoc throughout the organization! It was a wakeup
call for the whole Company, and no stone remained unturned to uproot the cause.
In fact, it lead to a radical reorganization of our QA/QC area and the realization
that everything we do has a QA/QC component that has to be taken into
consideration. Mipharm may serve as an excellent example how a big problem –
handled correctly – can become a big opportunity.
Giovanni Carnovali “detto il Piccio” · “Paesaggio” disegno a matita
13
Merging Italian Creativity with Swiss Tradition
New Mipharm
Profit and Loss Statement – Period Ending 31 December 2012 (in €/000)
Period Ending
31 December
2012
31 December
2011
A Value of manufacturing
36,134
34,792
Net Revenues (sales and services)
35,701
34,502
Increase of Assets for internal work
0
0
Other operating income
433
290
B Cost of production
31,640
29,433
Raw material
13,333
12,221
Salaries and wages
9,955
9,870
Value adjustments
947
954
a Amortisation of intangible assets
b Depreciation of tangible assets
c Other adjustments
81
84
841
840
25
30
Other operating charges
7,405
6,388
Difference between value and cost production
4,494
5,359
C Financial income and charges
–272
–237
D Extraordinary income and charges
–18
–244
Proft (loss) before income taxes
4,204
4,878
Income taxes
–1,542
–1,777
Net Profit (loss) for the financial period
2,662
3,101
14
Merging Italian Creativity with Swiss Tradition
New Mipharm
Balance Sheet, 2012 (in €/000)
Assets
A Current Assets
Cash or Cash Equivalents
Inventories
Receivables and other assets
Non-Permanent Investments
20122011
31 December 31 December
11,859
317
2,861
4,097
4,585
11,219
246
2,368
4,103
4,503
B Fixed Assets
22,883
22,345
Tangible assets
Intangible assets
Financial assets
22,305
78
500
22,246
98
0
64
70
34,806
33,634
19,281
18,257
C Prepaid expenses and deferred charges
TOTAL ASSETS
Equity and Liabilities
ACreditors
Banks
Other Financiers
Accounts Payable
Other Creditors
8,743
408
7,483
2,646
8,187
666
7,683
1,721
B Provision for Risk and Charges
355
615
C Employee severance payments
1,624
1,904
63
93
E Capital and reserves
13,483
12,766
TOTAL EQUITY AND LIABILITIES
34,806
33,634
D Accruals and deferred income
15
Merging Italian Creativity with Swiss Tradition
Giovanni Carnovali “detto il Piccio” · “Busto di Donna” olio su tela ovale
16
Merging Italian Creativity with Swiss Tradition
Outlook for 2013
In 2013, the very favorable, impressive trend continues and even accelerates.
Growth in Revenues and Net Profits was catapulted to a considerably higher
level. Due to constant efforts to deliver peak performance day after day, we are
confident that the Company once again will show impressive results.
Our permanent focus on true market needs and growth opportunities, our
unconditional commitment to tight cost management, our constant upgrading
of our facilities and equipment to the most modern standards, and or Permanent
Education program for the People of Mipharm make us what we always have been:
FINANCIALLY STRONG, TECHNOLOGICALLY INNOVATIVE,
and with PROVEN LEADERSHIP.
17
Merging Italian Creativity with Swiss Tradition
New Mipharm
Key Figures
Period
Q1 2013
€/000
Net Revenues9,489 100.0%
Operating Income (EBIT)
Net Income
1,103 11.6%
6416.8%
Q1 2012
€/000
8,044100.0%
738
% change
€cc
+1.445+18.0%
9.2%
3554.4%
+365+49.5%
+286+80.4%
Primary Cash flow877 589
+288
+48,9%
Free Cash flow–4.890–3.530
–1.360
–38.5%
Giovanni Carnovali “detto il Piccio” · “Donne con infanti” disegno a matita
18
Merging Italian Creativity with Swiss Tradition
Giovanni Carnovali
“detto il Piccio”
“Autoritratto”,
olio su tela ovale
Giovanni Carnovali
“detto il Piccio”
Lettera datata
22 maggio 1828
19
Produced by
MIPHARM S.p.A. – Italy
Printed by:
ERA Comunicazione S.r.l.
Milan, Italy – May 2013
Giovanni Carnovali “detto il Piccio” · “Vergine orante”, disegno a matita
Annual Report 2012
Mipharm at a glance
Total assets
Net fixed assets
(e/000)
34,806
34,670 34,579
EBITDA
2010
2011
22,208 22,345
22,883
20,703
33,634
2009
(e/000)
2012
2009
2010
2011
2012
Operating Income EBIT (e/000)
(e/000)
6,313
5,359
4,493
5,441
5,446
4,039
4,494
2,294
2009
2010
(*) adjusted
Net Profit
2011
2012
2009
(*) adjusted
2010
Free Cash Flow
(e/000)
2012
(e/000)
3,285
3,101
2,750
2011
2,662
2,596
2,353
1,861
786
Mipharm® S.p.A.
Via Quaranta, 12
20141 Milan – Italy
Phone (39) 02 53548.1
Fax (39) 02 53548.010
e-mail: [email protected]
www.mipharm.it
2009
(*) adjusted
Merging Italian Creativity with Swiss Tradition
2010
2011
2012
2009
(*) adjusted
2010
2011
2012
Note: 2012 was heavily influenced by a total revamp of the QA/QC area,
demanding heavy investments in Assets and People.