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PPaaggee 11 ooff 44DocuSign Envelope ID: 4775481F-CD21-45E0-821B-18ADB8E9BFEE
Julphar
inlin,l,
a_4_11gaJI ciLci it
Gulf Pharmaceutical Industries
The operational performance of the Company has shown a
strong and continued positive trend while overcoming
geopolitical challenges which is evident by the increase in net
Summary of operational performance during sales as compared to Q2 2021.
the financial period Q2 2022 production output remained strong with the
highest level in first half of the year in comparison with the
last 4 years evidencing the strong progress towards strategic
roadmap
Key figures Q2 2022 Q2 2021*
Net sales (mAED) 419.9 220.0
Gross margin (%) 34% 48%
Net profit (mAED) 5.2 73.4
EBITDA from continuing 44.2 89.4
operations (mAED)
EBITDA from continuing 44.2 47.6
operations - normalized
(mAED)
Summary of profit and loss during the financial
Plant Pharmacies LLC (“Planet”) financial results were fully
period
consolidated in Julphar Group from 1 July 2021. During Q2
2022, Planet contributed 239.1 mAED. The Group’s gross
margins were affected by Planet’s lower gross margin on
distribution business. However, the gross margins continued
to be sustained and reached 34% in Q2 2022 as compared to
48% in Q2 2021 (if normalized, the gross margins were 35%
in Q2 2021 after eliminating the one-time events).
*after reclassification of Julphar Ethiopia as ‘discontinued
operations’.
The total equity of the Group decreased by 3.8 mAED and
reaching to 960.0 mAED. The decline was due to foreign
currency translation reserve by 24.4 mAED and fair value
Summary of financial position as at the end of
reserve by 1.6 mAED. The decline is supported by the
the financial period
increase in cashflow hedge reserve by 15.1 mAED.
No significant changes in the financial position of the Group
compared to the year-end 2021.
Cashflow used in operating activities reached -1.2 mAED
Summary of cash flows during the financial
during the period from January to June 2022 as compared to
period
-29.7 mAED in 2021. The cashflow from investing activities
Page 2 of 4DocuSign Envelope ID: 4775481F-CD21-45E0-821B-18ADB8E9BFEE
has also contributed 6.4 mAED which is also supported by
cashflow from financing activities of 17.5 mAED.
Net sales 419.9 mAED
Main performance indicators Net profit 5.2 mAED
EBITDA from continuing operations 44.2 mAED
The size of the pharmaceutical market in Middle East &
North Africa is valued at USD 44.8 bn in 2021 and is
expected to reach USD 56 bn in 2025. The pharma market is
expected to grow at a CAGR of 5.7%.
Generics are showing about 9.5% CAGR in the private
Expectations for the sector and the company's segment of the key markets, while the total market is
role in these expectations growing by 7.4% CAGR in the private segment of key
markets (UAE, KSA, Egypt, Algeria, Tunisia, Jordan, Kuwait
and Lebanon). It is expected that the generics market will
maintain higher growth for reasons like public budgetary
pressures, the support for the local manufacturers and patent
expiry. (Source IQVIA Data)
UAE witnessed a 2.2% real GDP growth in 2021. Continued
government stimulus, a gradual easing of the pandemic
impact, Expo 2020, etc., are helping the economy to revert to
Expectations regarding the economy and its
its pre-COVID-19 crisis level, with full recovery expected by
impact on the company and the sector
2022. The economy is expected to grow by 4.2% in 2022.
Source: Oxford economics, Reuters, IMF, Bloomberg,
Moody’s, ENBD, Central Bank UAE
The future plans for growth of the Company are as follows:
1. Focus on strategic areas of business as the company
has divested from non-core subsidiaries.
2. Continue retail pharmacies expansion in UAE and KSA
3. Strengthen sales organization in core markets and
increase market share with existing portfolio.
Future plans for growth and changes in
4. New alliances and partnerships to strengthen the
operations in future periods
product portfolio of the company.
5. Launch new products in core therapeutic areas and
new therapeutic areas.
6. Invest in capital expenditure to increase production
capacity and new manufacturing technologies and
improve operations efficiency.
Page 3 of 4DocuSign Envelope ID: 4775481F-CD21-45E0-821B-18ADB8E9BFEE
The Group continues to invest in capital expenditure for
achieving targeted growth and sustained performance by:
1. Expanding the product portfolio with investing in new
product dossiers, including signing of exclusive license
The size and impact of current and projected
and production agreement with Quantum Genomics
capital expenditures on the company
for Firibastat
2. Continuing upgrading the existing production facilities
3. Redesigning current processes to address new
requirements from government authorities
The implementation of the following projects have been
The developments of the implementation of
discussed in the Board of Directors’ meetings:
projects, plans and transactions and deals that
1. Growth strategy 2030
were discussed by the company's board of
2. New products launch to add in the product portfolio
directors in the report for the previous fiscal
3. License agreement for co-development of products
year
4. Divestment of non-core areas of business
The name of the chairman of the company or
Sheikh Saqr Humaid AlQasimi
the authorized signatory
DocuSigned by:
Signature and Date 11 August 2022
-
. 3D4BD08AC252475...
Company’s Seal
Page 4 of 4

Sentiment: positive