Ipsen Sa · EURONEXT:IPN
Ipsen Sa — 12ème Forum Midcaps Santé Gilbert Dupont 2014
35 slides from Ipsen Sa's conference presentation, May 2014
Slide 1: 2013 Financial Results and Q1 2014 Sales
Ipsen 2013 Financial Results and Q1 2014 Sales 12ème Forum Midcaps Santé Gilbert Dupont – Mai 2014 IPSEN pour nom de la société - 07/04/2011 / page 1
Slide 2: Disclaimer
Disclaimer This presentation includes only summary information and does not purport to be comprehensive. Forward-looking statements, targets and estimates contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such statements involve known an
Slide 3: Safe Harbor
Safe Harbor The Group operates in certain geographical regions whose governmental finances, local currencies or inflation rates could be affected by the current crisis, which could in turn erode the local competitiveness of the Group’s products relative to competitors operating in local currency, an
Slide 4: Agenda
Agenda 1 2013 overview 2 2013 performance and Q1 2014 sales 3 US update 4 2014 outlook 4 12ème Forum Midcaps Santé Gilbert Dupont – Mai 2014
Slide 5: 2013 operating margin above guidance, despite sales headwinds
2013 operating margin above guidance, despite sales headwinds 2013 initial 2013 revised 2013 actuals guidance(1) guidance(2) Specialty Care - Drug sales(*) [6.0% ; 8.0%] ~ +3.0% +3.0% Primary Care - Drug sales(*) [-8.0% ; -6.0%] ~ (1.0)% (0.1%) Recurring Adjusted(**) operating margin ~ 16.0% ~ 1
Slide 6: 2013, acceleration of transformation and major clinical successes
2013, acceleration of transformation and major clinical successes Four Phase III programs delivered Enhanced R&D delivery and focus Major step forward in toxin research and Intellectual Property with Syntaxin acquisition and Harvard partnership Christel Bories appointed Deputy CEO Acceleration of Sp
Slide 7: In 2013, Ipsen delivered four Phase III on Dysport and Somatuline
In 2013, Ipsen delivered four Phase III on Dysport® and Somatuline® Clinical development phase Data published Molecule/Drug Phase III Full results Dysport® Next Generation – CD – Europe Phase III Full results Dysport® AUL Spasticity Phase III Full results Somatuline® in NET tumor control – WW –
Slide 8: 2013 performance: Above EBIT
2013 performance Above EBIT
Slide 9: Specialty care sales growth affected by Decapeptyl performance and Increlex shortage
Specialty care sales growth affected by Decapeptyl® performance and Increlex® shortage Drug sales – FY 2013 in million euros – % excluding foreign exchange impact ® Decapeptyl (1.9%) 298.6 ® Somatuline +11.1% 246.9 Specialty care ® Specialty care Dysport +7.0% 242.2 €871.1m Nutropin ® +5.7% 56.3 +3.
Slide 10: 2013 sales driven by international primary care and specialty care
2013 sales driven by international primary care and specialty care GROUP SALES growth: +0.4% (incl. Drug related sales) FY sales in million euros At constant currency: +2.2% Specialty FX International care(1) (20.8) French PC PC Increlex® 39.8 (27.1) 26.8 (14.8) Primary care Specialty care 1,219.5 1
Slide 11: Specialty care volume growth driven by Somatuline and Dysport
Specialty care volume growth driven by Somatuline® and Dysport®, affected by Decapeptyl® performance 2013 volume and value growth 2013 geographic distribution 11.5% Somatuline® 11.1% Somatuline® 51% 14% 13% 22% 9.4% 11.1% Dysport® 7.0% Dysport® 20% 9% 48% 23% 2.6% 0.2% Decapeptyl® -1.9% Decapeptyl®
Slide 12: Dynamic international growth, France now down to 30% of primary care sales
Dynamic international growth, France now down to 30% of primary care sales Evolution of Primary care sales 100% International 75% 2005-2013 CAGR(1): +9% 70% 50% France 25% 2005-2013 CAGR(1): (12%) 30% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Primary care 384 390 393 383 380 364 368 325 320 sa
Slide 13: Ipsen growth fuelled by a differentiated emerging market footprint
Ipsen growth fuelled by a differentiated emerging market footprint, soon to be supported by the US Ipsen largest affiliates Ipsen geographical split 2010 2013 1 France France Developed 2 China China RoW 3 Italy Russia 14% 4 Spain Italy 41% G5(1) 5 Russia Germany 6 Germany UK Emerging(2) 40% 7 US Spa
Slide 14: Tight Opex control allowed to finance R&D while growing EBIT margin
In the context of 2013 lower sales growth, tight Opex control allowed to finance R&D while growing EBIT margin Recurring adjusted(3) EBIT margin Growth (%)(1) 15% 17.0% 13.3% 16.3% 10% 5.6% 6.6% 5% 5.4% 4.4% R&D costs(2) 5.1% 2.5% 0.4% Sales 0% (2.0%) OPEX costs (excl. R&D) -5% FY 2011 FY 2012 FY 20
Slide 15: From reported to Recurring adjusted Operating Income
From reported to Recurring adjusted Operating Income FY 2012 21.5 In million euros 2.4 62.1 198.3 117.1 Reported Restructuring Impairment Other Recurring EBIT adjusted EBIT +5.2% +62.9% Recurring As reported adjusted 5.1 12.6 0.2 208.6 190.7 FY 2013 Reported Restructuring Impairment Other Recurring
Slide 16: 2013 performance: Below EBIT
2013 performance Below EBIT
Slide 17: P&L summary
P&L summary FY 2012 in m€ FY 2013 Change restated* Net sales 1,219.5 1,224.8 +0.4% Other revenues 57.9 57.0 (1.5)% Revenue 1,277.4 1,281.8 +0.3% Cost of goods sold (254.3) (253.4) (0.4)% Research and development expenses (248.2) (259.1) +4.4% Selling expenses (473.0) (451.3) (4.6)% General and admin
Slide 18: Main P&L items: Below operating income
Main P&L items: Below operating income Financial Result (€m) Effective tax rate Reported Recurring Reported Recurring adjusted(1) adjusted(1) 20.6% 23.3% 21.8% 20.6% 5.4 (9.0) FY 2012 FY 2013 FY 2012 FY 2013 Net income from discontinued operations (€m) EPS (€) Reported Recurring Adjusted(1): FY 2012
Slide 19: Balance sheet evolution
Balance sheet evolution ASSETS LIABILITIES FY 2012 FY 2012 in m€ FY 2013 in m€ FY 2013 Restated Restated Goodwill 298.2 310.7 Capital and reserves 902.5 971.5 Investments in associates 0.0 0.0 Minority interest 2.0 2.2 Property, plant and 281.8 287.5 Total equity 904.5 973.7 equipment Other intangib
Slide 20: Solid cash flow generation
Solid cash flow generation FY 2012 in m€ FY 2013 Restated Consolidated net profit (27.5) 153.1 Non cash and non operating items 177.6 56.2 of which Depreciation, amortization, provisions 70.2 25.7 of which Impairment losses 123.1 12.6 of which Change in deferred taxes (24.1) 8.2 Cash flow from opera
Slide 21: 2013: Key financial achievements
2013: Key financial achievements Group sales up 2.2%(1) Strong Recurring Adjusted(2) Operating margin of 17%(3) Net profit of €153.1m versus a (€27.5m) loss in 2012 Robust Recurring Adjusted(2) EPS of €1.85, up 5.1% year-on-year Sound operating cash flow generation Closing cash balance of €125.4m Pr
Slide 22: Q1 2014 sales
Q1 2014 sales
Slide 23: Q1 2014 strong specialty care performance driven by Somatuline
In Q1 2014, strong specialty care performance driven by Somatuline® and return to growth of Decapeptyl® Drug sales – Q1 2014 in million euros – % excluding foreign exchange impact ® Decapeptyl +5.9% 73.8 ® Somatuline +13.0% 68.5 Specialty care ® Specialty care Dysport +6.3% 60.8 €225.3m Nutropin ® +
Slide 24: US update
US update
Slide 25: Increasing US presence, a strategic priority
Increasing US presence, a strategic priority Global Pharma Market(*) Ipsen 2013 sales Developed G5(1) RoW Developped RoW 15% 14% 21% 41% G5(1) 34% United 40% 30% Emerging(2) States Emerging 5% United States US under-represented in Ipsen sales Reaching critical mass in the US is key to drive Group pr
Slide 26: Somatuline well positioned in the US to seize significant NET opportunity
Somatuline® well positioned in the US to seize significant NET opportunity Favorable competitive position Potential addressable market (2013) Differentiated NET data package Acromegaly with CLARINET® c.$100m (2) Strong position gained in acromegaly(1) Ipsen addressable market with ~ 50% market share
Slide 27: Ipsen to launch Somatuline in NET indication in the US
Ipsen to launch Somatuline® in NET indication in the US to capture full value Rationale Impact Secure long term value Secure Ipsen US strategic presence Expected maximum incremental annual cost of €[30-40]m Build long term presence in US oncology US breakeven(1) postponed to Maintain full contro
Slide 28: Cynthia Schwalm to manage US operations and secure Somatuline NET launch
Cynthia Schwalm to manage US operations and secure Somatuline® NET launch Cynthia Schwalm Key challenges 30 years of experience in oncology and neurology Build US oncology sales force In-depth knowledge of the American pharmaceutical market Secure Somatuline® GEP NET label Appointed Head of Ip
Slide 29: 2014 outlook
2014 outlook
Slide 30: 2014 financial objectives
2014 financial objectives Specialty care – Drug sales Growth of +4.0% to +6.0%, year-on-year – Driven by normalization of situation in China, in a context of continued pricing pressure and uncertainty on Increlex® US resupply Primary care – Drug sales Decline of -2.0% to 0.0%, year-on-year – Excludi
Slide 31: Moving parts to impact 2014 EBIT
Moving parts to impact 2014 EBIT Illustrative chart Evolution of EBIT margin at constant currency Cost saving R&D Full year Full year initiatives investment impact of US impact of restructuring Cost France PC inflation NET restructuring Contribution investment topline growth In the US FY13 FY14 EBIT
Slide 32: Major R&D and regulatory milestones to come in 2014
Major R&D and regulatory milestones to come in 2014 H1 2014 H2 2014 2015 Tasquinimod mCRPC TasQ maintenance study PhIII results (PFS and OS data) PhIIa (POC) results Dysport® NDO Tasquinimod (HCC, RCC, Gastric & Ovarian) Full PhII data PhII results(1) R&D Dysport® NG Dysport® PLL Dysport® PUL PhIII
Slide 33: In 2014, continued business development efforts to complement organic growth
In 2014, continued business development efforts to complement organic growth Areas of focus In-licensing or acquisition of marketed drugs Commercial deals Acquisition of small companies Various geographies targeted, notably the US Late stage compounds (Phase III) in various therapeutic areas
Slide 34: Significant increase in free float with Mayroy's sale of 7% of Ipsen's share capital
Significant increase in free float with Mayroy’s sale of 7% of Ipsen’s share capital to finance exit of Véronique Beaufour Ipsen share capital before placement Ipsen share capital(1) after placement Other Other c.2% c.3% Mayroy SA c.67% c.30% Free float Free float c.40% c.58% Mayroy SA Véronique Bea
Slide 35: Key takeaways
Key takeaways Strong operating performance and major 2013 clinical successes setting the stage for future growth TasQ phIII clinical results, preparation of NET US launch 2014 and continued operating efficiencies 35 12ème Forum Midcaps Santé Gilbert Dupont – Mai 2014
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