Almirall Sa · BME:ALM
Almirall Sa — FY2016 Earnings Presentation
39 slides from Almirall Sa's earnings presentation, Feb 27, 2017
Slide 1: FY 2016 Financial Results and Business Update
FY 2016 Financial Results and Business Update February 27th 2017
Slide 2: Disclaimer
Disclaimer This document has been prepared by Almirall, S.A. (the “Company”) exclusively for use during the presentation. This document includes only summary information and does not intend to be comprehensive. This document may not be disclosed or published nor used by any person or entity or any r
Slide 3: Agenda: FY 2016 Financial Results
Agenda: FY 2016 Financial Results FY 2016 Highlights Eduardo Sanchiz, Chief Executive Officer Financial review David Nieto, Executive Vice President, Finance, CFO Alfonso Ugarte, Executive Vice President, Global Derma review Commercial Strategy R&D evolution Thomas Eichholtz, Executive Vice Presiden
Slide 4: FY 2016 Highlights
FY 2016 Highlights Eduardo Sanchiz CEO 4
Slide 5: Strong performance in 2016
Strong performance in 2016 Operational outperformance 8 deals completed during the year • Results above Guidance • Dermatology driving sales growth • Successful integration of Poli & Thermi • Resource reallocation Successful product rollouts Growing Dermatology pipeline • 11 programs in Discovery •
Slide 6: Strong growth in Dermatology and Aesthetics
Strong growth in Dermatology and Aesthetics Execution on Dermatology • Dermatology growth +32% • Strong growth in Aesthetics +62%* (Thermi) and Dermatology Rx growing at +19% • Dermatology accounts for 51% of Net Sales Positive performance while managing headwinds • Dermatology Rx Europe +23% driven
Slide 7: 2016 Financial highlights
2016 Financial highlights David Nieto CFO 7
Slide 8: FY 2016 – Strong performance continues
FY 2016 – Strong performance continues FY 2016 Guidance* Total Revenues +11.7% Net Sales +11.6% EBITDA +10.6% * FY Guidance given in Feb. 2016: Total Revenue, Net Sales, EBITDA all growing at high single digit 8
Slide 9: FY 2016 – P&L
FY 2016 – P&L Strong growth driven by Dermatology following Polichem / ThermiGen acquisitions and new product launches in US Rx Favorable product mix driving +150bps gross margin improvement Investment to support R&D pipeline in Dermatology following Polichem, Patagonia, Nuevolution and Mercachem pr
Slide 10: SG&A – Reinvesting productivity in growth products
SG&A – Reinvesting productivity in growth products Investment in launch of Veltin™, Altabax™ and behind Aesthetics business 10 10
Slide 11: FY 2016 – Balance Sheet
FY 2016 – Balance Sheet Goodwill increases on the acquisitions of Polichem Group and ThermiGen. Intangible assets also include the license from Sun Pharma deal on psoriasis. Lower Cash following M&A / BD activities, helped by Mexico divestment and CF from operating activities. Senior Notes to be rep
Slide 12: Senior Notes Redemption & Revolving Credit Facility
Senior Notes Redemption & Revolving Credit Facility Positive cash impact in 2017 Interest Rate Amount Senior Notes 4.625% €324 Mn Revolving Credit Facility Below 1.0% (*) €250 Mn Accretive from the second Impact half of 2017 * Revolving Credit Facility with fixed interest rates over a 4 year period
Slide 13: Dermatology
Dermatology Alfonso Ugarte Executive Vice President Global Commercial Strategy 13
Slide 14: 2016 driven by Dermatology Rx and Aesthetics
2016 driven by Dermatology Rx and Aesthetics Operational outperformance Strong entry into Aesthetics • Total Dermatology growing at +32% • ThermiGen: Rapid growth year-on- • Dermatology accounts for 51% of year: + 62% Net Sales vs 43% in 2015 • Rollout in EU starting Q1 2017 EU Rx Dermatology Strong
Slide 15: 2016 Dermatology sales performance
2016 Dermatology sales performance YTD YTD % var vs € thousand Dec 2016 Dec 2015 LY Europe 179,025 145,107 +23.4% US 165,147 150,010 +10.1% RoW 7,209 - n.m Dermatology Rx 351,380 295,117 +19.1% Thermi 38,467 - n.m Total Dermatology 389,847 295,117 +32.1% 15
Slide 16: Geographical breakdown of Dermatology Rx sales
Geographical breakdown of Dermatology Rx sales YTD YTD % var vs Europe € thousand Dec 2016 Dec 2015 LY Solaraze® 36,974 36,554 +1.1% Ciclopoli® 33,946 - n.m Decoderm® 24,378 23,163 +5.2% Other EU 83,727 85,380 (1.9%) Total 179,025 145,107 +23.4% YTD YTD % var vs US € thousand Dec 2016 Dec 2015 LY Ac
Slide 17: Aesthetics: From strategy to execution
Aesthetics: From strategy to execution New strategic Gathering insights into aesthetics market: Advisory Boards, Market research, KOL interviews….. direction for Almirall Business development : To build up aesthetics portfolio 2015 2016 2017 Equity Silhouette Investment Thermi direct license for in
Slide 18: Thermi key highlights - US market 2016
Thermi key highlights - US market 2016 Continued rapid increase of Thermi user base • More than 2,000 users • More than 150,000 procedures performed Strengthened sales organization • Launched team of Practice Development Partners – working with users to generate business for their clinics • More tha
Slide 19: Thermi 2017 - European & RoW markets
Thermi 2017 - European & RoW markets First steps towards a strong direct presence in Europe • EMEA Commercial Ops Director based out of Barcelona • Gradual build up of our own sales organization for Thermi in Spain, France and UK • Thermi warehouse and order desk out of Barcelona Rest of the World •
Slide 20: DMF (dimethyl fumarate) LAS41008: Psoriasis
DMF (dimethyl fumarate) LAS41008: Psoriasis Oral treatment for adults with moderate-to-severe chronic plaque psoriasis which will allow us to bring a new oral therapeutic alternative in the treatment of psoriasis in Europe Oral therapies like acitretin, methotrexate and ciclosporin are widely us
Slide 21: Tildrakizumab IL23p19: Psoriasis
Tildrakizumab IL23p19: Psoriasis Additional Phase 3 data to be presented at the American Academy of Dermatology (AAD) Patient surveys report that lower frequency of injections (one per quarter) and a high maintenance of efficacy are important attributes for their therapies We expect tildrakizu
Slide 22: R&D
R&D Thomas Eichholtz Executive Vice President Research & Development, CSO 22
Slide 23: R&D achievements in 2016
R&D achievements in 2016 • Approval for ADP 18998 (Actikerall®) • Incorporated Polichem Pipeline small field treatment line extension • Started EU Phase III programs • External innovation: Patagonia, • Prepared the US Phase III programs NuEvolution, Bicosome & Mercachem 23
Slide 24: Pipeline progression: Products in clinical phase
Pipeline progression: Products in clinical phase Project Indication Early Development Phase II Phase III Registration LAS41008 (DMF) Psoriasis Tildrakizumab Psoriasis P3058 Onychomycosis P3073 Nail Psoriasis P3074 Androgenetic Alopecia PAT001 Ichthyosis ADP31415 Pemphigus vulgaris ADP13612 Rosacea 2
Slide 25: Products in late clinical phase
Products in late clinical phase Estimated Indication Year First Estimated Key Project Peak Sales Highlights Active Ingredient / MOA Launch • Oral treatment for adult Psoriasis patients with moderate to LAS41008 2017 > 50€ severe chronic plaque DMF (Fumaric Acid Ester) psoriasis • Convenient dosing P
Slide 26: Development Pipeline – external innovation
Development Pipeline – external innovation Congenital ichthyosis is a family of rare skin disorders affecting around 160,000 and 100,000 patients in the European Union and the United States, respectively PAT-001 is starting Phase II and has been granted an Orphan Drug Designation by the FDA (Foo
Slide 27: Discovery Pipeline – external innovation
Discovery Pipeline – external innovation Almirall has obtained exclusive rights to Almirall has obtained rights to Nuevolution’s Mercachem’s cytokine blockers program RORyt inhibitor program to identify and to identify and develop novel small develop novel small molecule therapeutics molecule th
Slide 28: Discovery: Focus on Dermatology indications
Discovery: Focus on Dermatology indications Rosacea 2 Acne Psoriasis 1 4 11 programs in Discovery 1 2 Others Atopic 1 dermatitis Actinic Keratosis 28
Slide 29: Takeaways and Outlook
Takeaways and Outlook Eduardo Sanchiz CEO 29
Slide 30: Wrap-up 2016
Wrap-up 2016 • 2016 results outperform guidance, showing significant improvement at gross margin level, and high sustained EBITDA margin • Delivering on stated strategy: reallocation of resources, performed meaningful transactions • Very good progress of R&D pipeline; 1 project in registration & 1 i
Slide 31: Delivering on our strategy
Delivering on our strategy WIN >2018 GROW Mid 2016-2018 BUILD Till Mid 2016 - Deliver on extended portfolio - Manage and deliver pipeline of - In-licensing and M&A of innovative products innovative risk assets - Leading - R&D: progress with Dermatology - Deliver on existing portfolio, innovative ass
Slide 32: Positive Outlook for 2017
Positive Outlook for 2017 • Top-line growth will be driven primarily by products such as Veltin™, Altabax™, Ciclopoli® and Thermi • Soft spots: Acticlate™, Cordran™, Solaraze®, legacy products • Continue to invest in R&D to support promising pipeline • Anticipating approval and launch of DMF in mid-
Slide 33: Financial guidance 2017 vs 2016
Financial guidance 2017 vs 2016 (1) Revenues (2) Grow at low to mid single digit Net Sales Grow at low to mid single digit EBITDA Grow at mid single digit Top line growth drivers Veltin™, Altabax™, Ciclopoli®, Thermi Challenges Acticlate™, Cordran™, Solaraze®, legacy products Reinvesting Opex saving
Slide 34: Financial Appendixes
Financial Appendixes 34
Slide 35: P&L 2016
P&L 2016 eer ~ a _ YTD YTD € Million Dec 2016 Dec 2015 % var ‘a Total Revenues 859.3 769.0 11.7% Net Sales 764.4 685.0 11.6% Other Income 94.9 84.0 13.0% Cost of Goods (227.5) (214.5) 6.1% Gross Profit 536.9 470.5 14.1% % of sales 70.2% 68.7% R&D (98.3) (66.3) 48.3% % of sales (12.9%) (9.7%) SG&A (4
Slide 36: Cash Flow 2016
ry Cash Flow 2016 e uv a” Cash Flow Statement Dec 2016 Dec 2015 (€ Million) YTD YTD Profit Before Tax 92.6 172.6 Depreciation and amortisation 100.3 74.3 Change in working capital 8.7 (23.3) Restructuring payments (23.7) (23.3) Other adjustments (54.1) 25.7 Tax Cash Flow (18.7) (65.1) Cash Flow from
Slide 37: Sales breakdown by Region
Sales breakdown by Region 37 37
Slide 38: Breakdown of the core business
Breakdown of the core business Proprietary products In-licensing products 38 38
Slide 39: For further information, please contact
For further information, please contact: Pablo Divasson del Fraile Corporate Comms. & Investor Relations Tel. +34 93 291 3087 [email protected] Or visit our website: www.almirall.com