Laboratorio Reig Jofre, S.A. (RJF) Earnings Call Transcript & Summary

Welcome to the results presentation for 2020 of the pharmaceutical company Reig Jofre. This is being broadcast live in Spanish and English. So we would like to welcome everyone who is following this webcast. Presentation will be carried out by our CEO, Ignasi Biosca, and our Financial Director. At the end of the presentation, we will answer the questions that will come in over the platform. Without any further ado, I'm going to give the floor to our CEO.

Good morning, and thank you very much for joining us for this results presentation. 2020 was clearly a very unusual year, unusual for all, obviously, but also very unusual for the 1,109 people, 58% women and 42% men, that make up our employees at Reig Jofre. An unusual year because everyone involved in this project has become aware of the real meaning of our work. I think that's been true of the whole pharmaceutical sector, but we've really experienced it in Reig Jofre, and unusual because we've made available to the Spanish, European and global health services all of our knowledge and expertise to help manage the exit from the pandemic. Reig Jofre closed 2020 as our sixth year as a listed company in the Spanish stock market, and that in a very unusual context, as I said, but also in a very positive financial position. As you can see, our main metrics reflect the effort that we've been making for several years in our strategic plan focused on growth. Sales at the close of the year were EUR 230 million, that's 15% up versus the previous year. EBITDA, EUR 26.5 million, that's 35% up, which reflects the increasing profitability of the strong investments that we made over the last 5 years. Net profit at EUR 5.7 million, that's 15% up in the year. And debt-to-EBITDA ratio of 2.1x. And so you can see that we've really been able to finance our growth through debt, but at the same time, we have been lowering our debt ratios to very comfortable levels. This year, 2020, our investment is still significant, EUR 16 million, although it's a lower level than in previous years where we had those significant investment efforts. By business units, Reig Jofre has 3 business units: Pharmaceutical Technologies. That's a business that brings in 48% of our total revenue. That's a B2B area. Our customers are mostly other pharmaceutical companies that distribute the drugs that we manufacture and have developed in Spain or in other European countries or elsewhere in the world. Basically, that's pharmaceutical technologies such as penicillin-derived antibiotics, basic products that clearly require segregated manufacturing processes as well as more technology-intensive products like injectables, including freeze-dried products, which is a more advanced technology in the pharmaceutical sector. And that division has experienced a 12% year-on-year growth with EUR 111.7 million in sales. Our second division, Specialty Pharmacare, is the division that produces dermatology products and also products for osteoarticular pain. This is focused on medical professionals, hospitals, health professionals in general. And that has grown 29% in the year -- or 28% in the year. And that's where our perimeter has grown in 2020, and that has brought in an additional EUR 16 million with the merger of the osteoarticular business, which was integrated into Reig Jofre in summer 2019. So the first semester of 2020 was new perimeter. So if it wasn't for the inorganic growth, this division would have seen a slight drop in its sales in the traditional business areas due to the pandemic. Consumer Healthcare, our third division, that's 23% of our total revenues, up 7%, has 2 aspects, the OTC business, chemists, disinfection and also care of the ear, nose and throat as well as our food supplements range, and then Forté Pharma brand, which, as we will see, have had a diverse performance. The Pharmaceutical Technologies business, that's division that represents about half our business, has had a 12% increase in the year, and there's 12% growth in our sales. In the year, a combination of drugs that were deemed to be essential drugs and, therefore, had to be supplied to hospitals in Spain, Europe and most of the world from our Reig Jofre plants during the pandemic in order to guarantee that intensive care units, both the existing ones and the newly created ones, would have the essential medicines they would need in order to keep the patients that were intubated alive. The negative side is the fact that the antibiotics market dropped in 2020. Because with social distancing and widespread use of masks, there were fewer bacterial infections. And so we've seen a shrinking of the antibiotic market, which has been clearly offset by the growth of the essential medicines part, which were mostly manufactured in other parts of the world like Asia in other [ years ] but which had problems with guarantee in supply during the pandemic, since a lot of countries had to close their borders during the worst part of the pandemic. And so European countries had to resort to European manufacturers exclusively. So our efforts to increase the capacity of our plants in Spain in the last few years has really paid off because we have been able, particularly during the first half of the pandemic, to work side by side with Spanish and European officials and some embassies in order to try and adapt their manufacturing by changing shifts and on weekends and day and night manufacture these medicines that were needed in all of our hospitals in Europe. Business development has continued in spite of the limitations on traveling due to COVID restrictions, but we've continued to develop products internationally, continue with our strategy of developing and registering and marketing drugs all over the world. Spain represents 39% of our total business in this division; Europe, 38% of our total business; and the rest of the world represents 23% growing. In 2020, we have seen the completion and commissioning of the new Toledo plant and the completion of the construction of the new plant in Sant Joan Despí, which we'll talk about later in Barcelona. As for the Specialty Pharmacare division, as I said before, growth in sales was due to the integration in our perimeter of the osteoarticular pain and care business. This growth, inorganic growth, offset the drop we experienced this year in our most usual prescription business, particularly, dermatology. Due to the pandemic, people focused less on skin problems and visited their doctors less for those reasons. But in parallel, there's been a significant development of our osteoarticular business internationally, particularly in Northern Europe and Eastern Europe, where there's been a very significant level of interest in all of these products and developments for osteoarticular pain. Our new launches have been impacted by the pandemic restrictions, particularly that has meant a big change in our promotion model since we've had to go from face-to-face personal promotion to remote promotion, and that's had to happen during the pandemic. In this division, Spain contributes a very significant part of the business with 71%; Europe has -- the rest of Europe, mostly Sweden and the Nordic countries, 28%; and the rest of the world still relatively small with just the 1% contribution. Finally, our Consumer Healthcare business, 2 aspects, OTC products and nutritional [ supplements ] have had diverse performances. Disinfections, of course, alcohols and chlorhexidines and other related products for disinfecting hands and bodies have shown significant growth. The fact that we were able to manufacture our own alcohols in our plants in Barcelona have really driven this market. But at the same time, we've also seen a significant growth in nutritional supplements, vitamins, immune-boosting products and other products with the aim of reinforcing consumers' defenses. A drop in this case has been experienced by the [ ORL ] or weight control ranges, since there's been fewer and also [ near ] products for sore throat and cold-related symptoms. So the beauty, [ solar ] and weight control ranges have also been impacted as well as our cold relief products. I mentioned also that during 2020, we've significantly developed our online channel. We had a very low level penetration, just single digit in previous years, and now we're close to double digit already in our sales. And then we anticipate that the growth of the online channel for our Consumer Healthcare product ranges will continue to grow, and we're strongly focused on that. Geographically, I should mention that this business, 71% of it comes from Europe. Basically, it's a very big business in France and Belgium. Spain represents 26% of the total, and the rest of the world, 3%, but it has significant growth potential. Internationally, I would say once again that Reig Jofre Spain represents 45% of our turnover; the rest of Europe is 42%; and 13% and growing significantly year-on-year is the rest of the world. And we're still working hard to get this international growth in the rest of the world to continue and to accelerate. We are present in 70 countries, of which in 7 countries we have direct sales with our own teams, marketing and reaching the products -- a big market with our own products. And in the other countries, we are present through 130 business partners with a turnover of EUR 89 million versus direct sales of our own products globally, which are EUR 141 million at the close of 2020. And finally, I'd like to mention the team, the people, especially this year, 2020. I really want to recognize everyone at Reig Jofre, all the men and women in our staff. It's been a very difficult year for everyone, for those who are unable to stay home and for those who had to stay home, our salespeople. As you can see on the slide, the sales conventions in France. Of course, all had to be done 100% online. People who are used to go to visit pharmacies and health centers had to work from home. And on the other hand, all the people who were involved in the manufacturing of essential medicines and antibiotics, as you can see, our quality assurance team in Barcelona on the top left, our manufacturing team of essential antibiotics, bottom right, in Toledo, and particularly, the people in our distribution center also in Toledo, who were there at all hours, Saturday, Sundays driving vans, trucks and even taxis in order to deliver the drugs that -- to the hospitals that needed them, working side by side in this distribution with the European authorities, but particularly the Spanish authorities. And I should mention the Spanish drug agency, which at different times worked very closely with us in order to guarantee the supply to all the hospitals and all the regions of these essential medicines at different times during the pandemic. We are now going to move on to the financial part of the presentation. I'm going to give the floor to our CFO, who is going to go over the different metrics.

Thank you very much, Ignasi. We're going to briefly go over the company's numbers in 2020 and look in more detail at those areas that Ignasi has reviewed in his presentation. Looking first at our P&L account. What we can see is this 15% increase in our sales. That's about EUR 30 million increase in our turnover in 2020. And approximately half of that revenue increase is due to the integration of the osteoarticular portfolio in 2019. And in 2020, we already have a full year revenues from that business. And the other half is due to organic growth with a constant perimeter of Reig Jofre due, particularly, to the sale of essential medicines but also to our international growth. In our margins, if we look at the trends, we see a slight drop in our margin, discounting the cost of materials from 63% to 61%. And the main impact behind this is the impact of essential medicines, which have a lower margin than other Reig Jofre products but, of course, which were crucially necessary during this pandemic much more than other drugs. If we look at the following 2 items, which include the activation of R&D projects as well as other expenses, if we combine both, we see our expenses are down EUR 1 million year-on-year approximately. And this is due to fewer R&D projects connected to a slowing down of some projects, which do not at all compromise their medium-term goals but which are due in 2020 because of the social distancing measures have experienced some delays in their execution. As for operating expenses, in 2020, we can see they're up 5%. And so here, you can see that our sales grew 15%. Expenses only grew 5%, which means better efficiency and, therefore, better profitability. If we look at our 2 different expense types, you can see that personnel expenses, on the one hand, are up 16%. This increase is due, once again, to the incorporation of the sales force for the osteoarticular business, which we cannot see in this year-on-year comparison but also the fact that we're gradually also incorporating technical personnel due to the coming online of the new injectable plant in Barcelona, which will happen this year in 2021, but we had already started recruiting last year. Other operating expenses, you can see a significant drop of 6%. And this is in part due to the fact that in 2019, there was a one-off effect, which we explained in this presentation last year, connected to the acquisition of the osteoarticular business. At that point, we had EUR 2.3 million in extraordinary expenses connected to the fees [ in the accumulation ] of that acquisition as well as a capital increase of EUR 24 million that took place that year. And EUR 2.3 million clearly were a nonrecurring expense, which in 2020 means that we have an improvement in this item. And then there's another effect, which Ignasi Biosca mentioned when he was speaking about our sales and marketing activities, which is that the lower mobility of our sales force and the change in our promotion activities with fewer events. [indiscernible] events mostly has meant a reduction in the expenses related to those sales and marketing activities. As a result, our EBITDA is at EUR 26.6 million, which versus EUR 19.7 million in 2019 means a 35% increase. However, if we do a like-for-like comparison with 2019, we would subtract the extraordinary expenses last year, which would have meant an EBITDA, operating recurrent EBITDA of EUR 22 million last year, which, versus EUR 26 million this year, is still a 21% increase and, therefore, exceeding the increase in sales very significantly. If we move down the P&L below, the EBITDA of EUR 26.5 million, which is already 11.5% of our sales and, therefore, puts us on track to improving not just our company's revenues but also the bottom line, you can see below that line that we have depreciation and amortization that's shown significant growth this year. You can see they're up 29%. And this is due partly to the effect of the amortization of intangible assets in the acquisition of the osteoarticular business. That's an additional EUR 2.5 million that are amortized full year in 2020 versus 2019. And the rest of this increase is due to the activation of industrial investments, basically machinery and facilities, which are already beginning their operational life and, therefore, their amortizations. As a result, our operating income is up significantly with EUR 9.2 million, 46% higher than in 2019. And you can see there's a significant increase in our financial expenses, which, as you can see, has more than doubled. And here, we should mention that, of course, our financial debt has grown, and this larger debt is the result of the investment plan that we've deployed in the last few years and so our investment expenses are up. But this difference is mostly due to a view of the variable price that we had to apply in the acquisition of the osteoarticular business because there were 2 price reviews that were set for the following 2 years after the acquisition. And the impact that we see here is that first review, which has happened this year 2020, although, theoretically, that means also a higher valuation of the investment made in 2019. Due to the impact of the IFRS accounting standard, you have to reflect that in the P&L in the financial expenses line. With that, our profit before tax is still 21% higher than in 2019. And without the tax effect in 2020, our tax rate -- our effective tax rate was approximately 12%, just over 12% on our profit before tax, which means that our net consolidated profit is EUR 5.7 million that's 15% up with respect to the previous year, and therefore, in line with the growth in our sales. We move on now to the balance sheet. And instead of giving you a detailed review, I'm going to try and simplify so that we can analyze management aspects in the balance sheet. As you can see in the graph on the right, you can see that the total size of our balance sheet is pretty similar to last year. And on the left, you can see the composition of the balance sheet is also similar to previous years. Of these EUR 300 million approximately in our balance sheet, approximately 1/3 are intangible assets connected to the businesses that we have been incorporating in the last few years and the 2 main businesses that have impacted these assets are the Forté Pharma integration in 2015 and the acquisition of the osteoarticular business in 2019 as well as the activation of the R&D projects. The second main section is the property, plant and equipment part. These are our industrial assets for manufacturing, EUR 85 million. And a small part or relatively small part of this, which are the other noncurrent assets, which are basically the fiscal credits due to negative tax basis -- taxable basis from the acquisition of Forté Pharma and also tax credits due to the R&D generated by the company, which will be offset in future profit, without this amount being fully reflected in the balance sheet because we also have other fiscal assets, which are not in the balance sheet, which can also be used by the company in coming years. As for current assets, which is the other 1/3 of our balance sheet, basically, stocks and clients and treasury, that's the total of our assets. And as for our liabilities, as you can see, approximately 60% of our liabilities, the company's equity, other noncurrent liabilities, very small part of subsidies, provisions and deferred taxes. And then the financial debt of the company, EUR 67 million, of which -- which we will talk about in more detail in previous -- in the next slides. And other current liabilities, short-term liabilities, which are actually part of our working capital. If I may simplify this balance sheet even further to see the evolution of the different items, we're going to show company with EUR 216 million noncurrent assets and EUR 44 million in working capital, which add up to the stocks and customers, subtracting all the credit from suppliers and creditors. And in the liabilities, we're going to see the evolution of net equity, nonfinancial liabilities and net financial debt, EUR 55 million in net financial debt, which reflects our gross debt, which is EUR 67 million minus available cash in the company. And as we mentioned, Reig Jofre has ended the year with a cash flow of EUR 11.5 million, which is over EUR 1 million higher than in 2019. If we look at the evolution of our assets, in fact, you can see that this year, noncurrent assets have decreased in net value by EUR 1 million, so at very similar level to last year. This is due to the fact that the investments carried out in the year, EUR 12 million, was the capitalization of our R&D investments. These other 4 are practically offset by amortizations in the year. So that's almost a neutral effect. And it's interesting in this analysis to see where we have invested these EUR 12 million in 2020. And as you can see on the chart on the right, of these EUR 12 million, EUR 5.5 million are investments in the new injectables plant in Barcelona, and that basically completes the investments committed to this new plant of about EUR 30 million between 2018, '19 and '20. So this would complete this project with CapEx in -- more recurrent CapEx and capacity of EUR 3 million, and that's basically investment in technology and upgrades of facilities and machinery and increases in capacity in our Malmö, Toledo and Barcelona plants. Moving on to the bottom of the slide, so you can see how we've managed in this year, in which our sales have grown significantly 15%, how we've managed our working capital. You can see that our working capital management has improved in absolute terms and also in relative terms because our working capital is EUR 44 million, that's EUR 3 million less than the previous year. And it means that our working capital over sales ratio is at 19%, when in 2019 it was 24%. The right-hand side shows this improvement with working capital down 7% as our sales grew 15%. So we're also very happy with this successful management of our working capital in a year of significant sales growth, which has required an additional management effort. As for our liabilities and how they've evolved, there aren't very significant changes in our equity beyond the incorporation of the profit of the year and other smaller effects. Nonfinancial liabilities is EUR 21 million at the closing of the year, down EUR 13 million versus the previous year, basically because of one of the deferred payments, the variable price for the acquisition of the osteoarticular business. That payment was made in July 2020 and, therefore, that has subtracted from this item, leaving on our liabilities the next deferred payment for July 2021. And if we move to the next item, which is our net financial debt, EUR 55 million, that's slightly up EUR 2.5 million with respect to the previous year. And on the right-hand side, you can see what's behind this increase, basically the incorporation of new bank loans for a total of EUR 15 million, to which we will subtract the repayment at maturity of bank loans this year, 2020, EUR 6.6 million, a reduction of liabilities due to the impact of the international accounting standard 16, that's EUR 2.4 million. It's an accounting effect. And finally, there's the drop in the use of revolving credit, which is down to almost 0 at the end of the year and an increase in our cash position of EUR 1.5 million, as I said, which offsets this amount and puts our net financial debt at EUR 55 million. How does this compare with the previous year with EUR 52 million? It's a slight increase. And since our EBITDA has significantly increased, we have been able to improve our debt-to-EBITDA ratio. We closed 2019 with 2.7x and we've now closed 2020 with only 2.1x, which is an evolution that also demonstrates the very solid balance sheet at Reig Jofre. And on the right-hand side, if we look at our gross financial debt, that is, if we do not subtract the cash position effect from this EUR 55 million, we would be speaking about gross financial debt of EUR 66.7 million, of which EUR 10.4 million is the application of IFRS 16. I'm not going to go into that. That's just an accounting effect. But in the other item, debt with banks and other institutions, that's where we have an active management on the part of the company. And this EUR 56 million debt is basically 20% financial leases, 61% (sic) [ 63% ] loans, 17% that's increasing of loans awarded by public institutions for R&D projects and industrial investment projects, and a small use of revolving credit facilities. Just to give a bit more detail about this debt and structure, average maturity for this debt is 4 years, and it's 71% fixed rate in order to minimize potential fluctuations and impacts with changing interest rates on our expenses and profit. I should mention that the cost of the financial debt in 2020 was just above 1.2% in interest, which is relatively contained and also hedged against changes in interest rates, since most of it is fixed rate. So we've been managing our balance sheet very carefully in order to adapt our working capital on our debt structure in a way which will align the debt repayment with the payback of our investments unless obtaining very positive profit figures. Without going into any further details, I'm going to give the floor back to Ignasi so he can go through the rest of the presentation.

Thank you very much, Roser, for this review of our financial metrics. And now I'd just like to go through the key highlights of the year with respect to the context of the COVID-19 pandemic and how we're positioned with respect to the coming years. As I mentioned, 2020 was a year in which everyone at Reig Jofre has felt very aware of the importance of our work to make sure that responders could successfully approach the pandemic. And we, second line of defense, have concentrated on supplying those medicines and also protective equipment and so on, which were not always available, particularly at the beginning of the pandemic. And so with all our efforts, we tried to make sure that supply was guaranteed to hospitals in Europe and elsewhere -- and Spain. From spring 2020 until the summer, we were working all out in order to guarantee the supply of essential COVID-related medicines. And in the very early stages, probably, say, in April, the Spanish Drug Agency, which, as we said before, worked very closely with us throughout and realized that Reig Jofre was building a new plant for injectables, high-capacity, high-throughput, high-quality manufacturing with zero human contact between the product and people and that it would be up and running at the end of 2020, beginning of 2021. With those facts in mind, we started to work with them on the possibility of making our facility available to the different companies that were beginning to develop some of the COVID vaccine projects to make that capacity available to them to manufacture potential vaccines. So in the first half of the year, we were working mostly on essential medicines, but we're also already getting ready in order to put this capacity at the service of manufacturing needs. And as I said, the drug agency and the Ministry of Health, the European Commission, Minister Illa himself, who was then our Health Minister, were aware of these possibilities. And we were constantly in contact with them to see whether we could provide additional capacity for vaccine manufacturing. So throughout the year, we've been working with them on that. We've been in contact with the different companies that have developed and registered vaccines. And I'd like to mention that the COVID vaccine development process has been very arduous in the sense that in a year or in under a year, there were 4 phases happening simultaneously, each of which would normally have required between 1 and 4 years. Phase I, of course, is the scientific development. And of course, not all pharmaceutical companies were ready scientifically to be able to develop a vaccine candidate against COVID. So only companies that have been working on projects with adenovirus and messenger RNA had the technology that was needed in order to carry out a scientific development so quickly and to have a vaccine candidate. And secondly, during the last 12 months, we have seen different clinical trial phases. That's where you test the vaccines to make sure that they're safe and effective, and that also happened during this year. And thanks to the fact that the disease was so prevalent through these phases, we were able to recruit patients very quickly and move much faster than we would have expected. And finally, the third major phase of development is the industrial phase, which is where we have been involved. And that's where you scale up the production of the vaccine from a test tube to a liter, hundreds of liters, thousands of liters and then hundreds of thousands of liters so that you can deliver the billions of vaccine doses that are needed by the global population. And that is the fourth significant phase. That's the logistics, the distribution of those vaccines globally, which is what will enable the global population to acquire immunity against the virus and be protected so that we can finally all be safe. As the European Commission has said repeatedly, no one will be safe until everyone is safe in this pandemic. So it's not about protecting certain countries, it's about protecting the whole world. And so in this context, Reig announced in December 2020 that there was an agreement with Johnson & Johnson for the technology transfer of the Janssen vaccine candidate then, now already registered in the U.S. and presumably also to be registered by the European Drug Agency in the coming weeks. But we reached agreement with them at that time in order to manufacture in our facilities in Spain their vaccine candidate, the Janssen vaccine. The signing of the agreement is what we're working on now day and night. And we are very much aligned with the Johnson & Johnson teams so that we can start manufacturing the vaccines, and we've been working on via security aspects. We're talking about gene therapy, genetically modified organisms, temperature control and the process. The industrial scale since we're getting ready to manufacture, if necessary, manufacture very relevant quantities of the vaccine. The agreement is to manufacture for Janssen. So the distribution of the vaccines will be Janssen's responsibility globally. Reig Jofre will manufacture the vaccines for Janssen, and then Janssen will distribute these vaccines to all the countries globally based on their existing agreements. Reig Jofre is still working based on the same time line that we agreed with Janssen back in December when we reached the technology transfer agreement. So we are on the agreed timeline that we committed to with the company. And so we are getting ready to manufacture vaccines that will be needed when Janssen decides that we should start doing so. Going back to our strategic plan at Reig Jofre, where we are and where we're going, you can see that we are still implementing the strategic plan that we designed initially. There was a 2015 to 2020 plan in which the Board decided to focus on strategic investments in brands by focusing on nonorganic growth, acquiring the osteoarticular business and then developing it internationally, also manufacturing capacity, both for essential antibiotics and for injectables and freeze-dried products, which is what has enabled us to play a very active role in the management of the pandemic, and finally, investment in R&D. All of this was a 5-year plan. And so 2020 was a transition year in which we started our new strategic plan 2020-2025, in which we're going to focus on increasing the profitability of these investments, and we are already actually seeing that impact on our figures. If we look at the time series of our sales, you can see that over the last 7, 8 years, Reig Jofre's sales have been growing consistently year-on-year. As for EBITDA, you can see that over the last 5 years, our EBITDA has shown that investment effort, but that in 2020, we are beginning to see significant growth in our EBITDA, which we expect will continue to increase in the coming years with the different projects that are ongoing in our strategic plan. In R&D, our investment increased during those 5 years of the investment phase. It is now stabilizing in 2020. The number was slightly lower, but that was mostly due to some of the delays experienced due to the limitations surrounding the pandemic. And as for investments, as you can see, it was about EUR 12 million this year, so back to the level of 2016 and significantly down below the peaks of the last few years. Our investments in the 3 main business areas and organic growth in brands, there was a EUR 54 million increase in the last 5 years. The profitability horizon starts this year, 2020. We've already seen that increase in the company's EBITDA with the 2020-2023 horizon. We've invested in the last 5 years EUR 14 million in manufacturing capacity, new technologies. And you can see that in 2020, but particularly, in 2021, we will see a significant increase in the profitability of that area. We've already seen an increase in the profitability in the essential medicines area. And in 2021, we will see the growth connected to vaccines and other injectables and advanced therapies. And finally, in R&D projects, EUR 59 million, that's more of a medium-term horizon, but it is the way to guarantee the future profitability of the company, which has a 90-year history and hopes to have at least a 90-year future. As for our development pipeline, I'd like to focus on the bottom part of the slide, the Specialty Pharmacare products in dermatology, osteoarticular pain, but also products to reinforce the immune system in order to react effectively to potential infections if immunity is compromised. And so in this context, we have several projects at different stages, which will be reaching the market in a few years. In Pharmaceutical Technologies, I should mention the projects that we have in biosimilars with a joint venture that we announced 3 years ago called Syna, where we're developing biologicals and developing all the expertise we need to develop the analytical technologies and development of these products so that we can provide this expertise for our own manufacturing as well as for third parties. Our investment in industrial capacity is being developed through investments in our plants in Toledo and in Barcelona. Our industrial investment strategy is always based, first, on building demand, and that means coming up with the products and the contracts, internationally open the markets, getting the registration, having the distributors or the clients so that we can then build that demand and have the capacity ready to supply that demand. That's always been our strategy, and that's the phase we're in. And we're moving to the third phase, which is where we obtain profit and recoup our investment. The Barcelona plant, which is currently being completed, it's an investment that was decided back in 2017, which the Board approved between 2017 and '18. Work began in 2019, continued during 2020, and it will come online in 2021. In fact, it will begin manufacturing with the manufacturing of the COVID vaccine and for a company like Janssen, which is part of the Johnson & Johnson Group, which is one of the biggest pharmaceutical companies in the world, which obviously had a lot of choices for potential manufacturers for their vaccine and which nevertheless chose a manufacturer in Spain. And that's something that we are very proud of and really makes us feel that our strategic vision was the right one and that the quality of the manufacturing and the service that we can offer is clearly valued by these large pharmaceutical companies. As for our vision beyond 2021, we'll continue to work in parallel with our short-term focus. Of course, the short-term focus will be manufacturing the vaccine, but we will also continue with our plans for the plant and our own projects. But in the medium term, our vision is still to continue to focus on these technologies because we think that both the traditional chemical-based products as well as the biological-based products, whether they're innovative products in partnership with other companies or biosimilars, for all new treatments or advanced treatments, gene therapy, cell therapy, all of these technologies, which during the pandemic have made enormous progress, both from the regulatory point of view and from the experience point of view, are areas that we expect will grow very significantly in the innovative pharma sector globally. And we would like to be part of those trends. You know that we have a significant industrial commitment. That makes us different because we're able to balance our understanding and expertise in manufacturing technologies with the needs of new therapies, whether they're biological or gene therapy or chemicals or vaccines, so that we can support the scientific and manufacturing trends globally, which we think the pandemic has accelerated. And in parallel with that, of course, there's our own antibiotic projects, antibiotic resistance -- antibiotic multi-resistants. These are projects that we have been spending a lot of time and effort on since we think it's a very pressing problem, which could one day become as problematic as our current struggle against the virus. And finally, we would like to make a few comments about our stock performance in 2020. We're very proud of the way our stock has performed in the year since -- in a year where the IBEX fell 15.7%, our shares were amongst the top 10 stocks with the greatest level of earnings in the market in Spain, up 74.2%. Beyond this, RJF, I'd like to mention the fact that there was an increase in the daily trading volume 5x in 2020, and we think this increased volume is probably the result of the visibility that we obtained because of the pandemic. I mean, bigger trading volume. Bigger trading volume means better price evolution. And so we think that the current share price better reflects the value of the company at this stage in which we are beginning to see the profitability of the investments made in the past as we will continue to see in 2021. And so now I think that the share price reflects the value of the company. And so we're very happy and proud of that. And I'd just like to mention that in 2020, Reig Jofre made a scrip dividend, which is a model that was chosen by the Board. And for 2021, the Board hasn't yet come to a final decision, but we will probably follow a similar model of remuneration for this next year with a capital increase charged to reserves. And now we can start the Q&A session. I think some questions have been coming in already, so I'd like to ask Roser to please start reading out those questions. And of course, if the questions are for you, you can answer them yourself. And if not, I will answer them.

Okay. We're not going to be able to answer all the questions because there's a huge number of questions that have come in, and we're very grateful for that. We will answer them in writing, those that we won't be able to answer live. Let me just group a few of the questions that are on similar topics. For Ignasi, there's set of questions that are all about whether, given our very solid financial position, we're considering additional inorganic growth opportunities, M&A opportunities. And another question around the same topic is, what do we think will happen these next years after a few years of strong investments?

Well, thank you very much, Roser, for reading out that question. As for our financial position and potential M&A opportunities, Reig Jofre, of course, is always alert to possible opportunities that would bring inorganic growth and are in line with our 3 business areas and which would allow us to create value for our shareholders. So anything in the area of consumer health care in Europe or industrial assets in the area of our specialty manufacturing are areas that we will keep an eye on, definitely. And so we will always study potential opportunities carefully, although as we've said, we are at a stage in which we are consolidating the investments already made. So we are in no hurry to make additional investments unless they really had an amazing strategic fit. As for the evolution in the coming years, I think I've already said at the end of my presentation, we expect that over the next years we will see an evolution of our fundamentals, both EBITDA and attributable profit that will be very positive as a result of the investments made and, therefore, of our increased business capacity, not just in our total sales, which is an important figure, but also in our EBITDA-to-sales ratio. This year, we're already 11.3% when we had been at around 10%, and we aspire to be closer to about 15% or so in that ratio.

Continuing with the questions. I'm going to combine a few more questions that have come in, that are asking whether the manufacturing of the vaccine will hinder other projects for the plan. And connected to that, there's also a question saying which proportion of our total manufacturing capacity is going to be allocated to the vaccine.

Okay. The vaccine manufacturing project is still just a project. It will, obviously, have an impact on our activities. It's a company-wide project in which we're all engaged at every level very intensively. Our main commitment right now is towards people, patients all over the world and particularly our client, Janssen, which is making every effort to supply to the world's population a vaccine, which is a single-dose vaccine and with -- which is stable at a normal refrigeration temperature and, therefore, an excellent alternative for health authorities in their efforts to vaccinate everyone. And so it does have an impact on our activities. But does that mean we are going to leave some projects of our own by the wayside? Well, we've studied all the projects that were on a critical path, and we will be combining the different phases of the projects in our plan A so that we will not endanger any of the projects that had specific milestones and deadlines so that we can make both activities compatible. As for which proportion of our manufacturing capacity is going to be allocated to the vaccine, it is too early to say. We don't know how many vaccine doses we will be manufacturing. We have earmarked about 80% of our capacity to manufacture vaccines. And that is our commitment. But depending on how demand from Janssen evolves over the coming months, we will adapt our manufacturing capacity, accordingly, depending on what society, the authorities and particularly our client, Janssen, requires.

Okay. Let me -- one last question that we will answer live, and we will answer the others in writing. I'm going to read it out in English as it's come in and then Ignasi -- and we have translation for the questions so you can answer it, too. The question says, [ vaccine ], is it considered an isolated project? Or will it generate other future opportunities that can be more transformational for Reig Jofre?

Well, I don't know whether I should answer in English or in Spanish. Okay in Spanish, I'm told, since we have translation. All right. I think that the project to manufacture the vaccines, as I said before, it fits within Reig Jofre's strategic vision, which we designed in 2017. So it will be a transformational project for Reig but not just because of the manufacturing of the vaccines but because of the decision we made in 2017 to invest on developing a plant to manufacture injectables and advanced therapies for acquiring the scientific and the industrial knowledge and expertise and the regulatory expertise necessary in order to manufacture and supply these new products and therapies. And so yes, we are experiencing a transformational phase in the company's development. That's obvious. But I don't think it's really so much about the manufacturing of the vaccine itself. It's just the confirmation that -- of the fact that our strategic vision that the Board came up with back then has been demonstrated to be the right one. So that's really the important point. And as we said before, we think that for a company like Janssen, for such a critical project, for their own reputation as this one, supplying to the world a vaccine that can help really put a stop to this pandemic, that they should have trusted in someone like Reig Jofre is really something that we feel is a turning point for the company. And it's something that we're very happy and proud to be experiencing, and we'll proceed accordingly. And with that, I am afraid that we've run out of time to continue with this webcast, and so we'll just leave it there, and we will answer your remaining questions in writing. We really hope that this year will be the year in which we will see an end to the COVID-19 pandemic. We hope that the pharmaceutical sector will play the role that it deserves in this effort to develop the vaccines, which are really, at this point, our only hope to get back to normal life.