RECORDATI ANNOUNCES SALES AND MARGIN GROWTH IN THE FIRST QUARTER 2018. REVENUES +7.2%, OPERATING INCOME +12.4%, NET INCOME +10.3%

• Consolidated revenues € 366.5 million, +7.2%.
• EBITDA ⁽¹⁾ € 134.4 million, +14.2%

Operating income € 120.5 million, +12.4%.

Net income € 86.6 million, +10.3%.

Net financial position ⁽²⁾:  net debt of € 484.6 million.

Shareholders' equity € 933.1 million.

Milan, 8 May 2018 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first quarter of 2018 prepared in accordance with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim reporting. These financial statements will be available today at the company's offices and on the company's website www.recordati.com and can also be viewed on the authorized storage system 1Info (www.1Info.it).

Financial highlights

• Consolidated revenues in the first quarter of 2018 are € 366.5 million, up by 7.2% compared to the same period of the preceding year. International sales grow by 8.4%.
   
• EBITDA ⁽¹⁾, at 36.7% of sales, is € 134.4 million, an increase of 14.2% over the same period of the preceding year.
   
• Operating income, at 32.9% of sales, is € 120.5 million, an increase of 12.4%.
   
• Net income, at 23.6% of sales, is € 86.6 million, an increase of 10.3% over the first quarter of 2017.
   
• Net financial position ⁽²⁾ at 31 March 2018 records a net debt of € 484.6 million compared to net debt of € 381.8 million at 31 December 2017. During the period own shares were purchased for an overall disbursement of € 169.8 million. Shareholders' equity is € 933.1 million.

⁽¹⁾ Operating income before depreciation, amortization and write down of both tangible and intangible assets.
⁽²⁾ Cash and short-term financial investments less bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives.

Management Comments

"The financial results obtained in the first quarter of the year confirm the continued growth of the Group, with further improvement of its profitability", declared Andrea Recordati, CEO. "At the beginning of April an agreement with Mylan for the acquisition of the rights to Cystagon® (cysteamine bitartrate), indicated for the treatment of proven nephropathic cystinosis in children and adults, for Europe and other territories, was concluded. The product was previously commercialized by Orphan Europe (a Recordati group company) under license from Mylan. The definitive acquisition of the rights allows us to continue offering this life-saving treatment to patients," continued Andrea Recordati. "The growth of Group's business continued during April and for the full year 2018, we confirm the objective to achieve sales ranging from € 1,350 million to € 1,370 million, EBITDA of between € 490 and € 500 million, EBIT of between € 430 and 440 million and net income of between € 310 and 315 million."