H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Shareholder Meeting (March 2024)
48 slides from H. Lundbeck A/s Class A's shareholder meeting presentation, Mar 20, 2024
Slide 1: H. Lundbeck A/S Annual General Meeting
H. Lundbeck A/S Annual General Meeting 20 March 2024
Slide 2: Welcome
Welcome LARS RASMUSSEN Chair of the Board of Directors 2 Lundbeck
Slide 3: Board of Directors 2023
Board of Directors 2023 LARS SØREN LENE SKOLE- SANTIAGO JEFFREY LARS ERIK DOROTHEA RASMUSSEN SØRENSEN ARROYO BERKOWITZ HOLMQVIST WENZEL Chair Deputy Chair JAKOB JEREMY MAX DORTE LASSE CAMILLA GRAM HOSSEIN RIIS LEVIN CLAUSEN SKIBSBYE ANDERSSON ARMANDI Elected by the employees for the period 2022 - 20
Slide 4: Executive Management from April 2024
Executive Management from April 2024 Joins 1 April CHARL LARS THOMAS DIANNE VAN ZYL BANG GIBBS HOL President & CEO Executive Vice President, Executive Vice President, Executive Vice President, Product Development & Supply Head of Lundbeck U.S. People & Organization Joins 1 April JOERG JOHAN MICHALA
Slide 5: Annual General Meeting
ANNUAL GENERAL MEETING Jørgen Kjergaard Madsen
Slide 6: Agenda
Agenda In accordance with Article 8.1 of the Articles of Association 1. Report of the Board of Directors on the Company’s activities during the past year 2. Presentation and adoption of the annual report 3. Resolution on the appropriation of profit or loss as recorded in the adopted annual report 4.
Slide 7: Item 1: Report from the Board of Directors
ITEM 1: REPORT FROM THE BOARD OF DIRECTORS Lars Rasmussen
Slide 8: People with brain diseases are always at the center of what we do
People with brain diseases are always at the center of what we do We serve Enric Yoshifumi Kobayashi more than Living with Alzheimer's Living with depression 8 million patients daily He Wei Ronetta Stokes Living with Parkinson’s Living with migraine 8
Slide 9: Support for the people of Ukraine continues
Support for the people of Ukraine continues Red Cross’ mental health support activities in Ukraine with a grant of DKK 5 million • Assistance to 12,000 children and adults affected by the ongoing conflict in Ukraine • The funding supports psychological first aid, creating child-friendly spaces, and
Slide 10: Three focused strategic areas complementing our pipeline
Three focused strategic areas complementing our pipeline to build long-term sustainable business Build upon our Reinforce Establish psychiatry core neuro-specialty position neuro-rare franchise Specialist-treated Existing pipeline programs Specialist-treated Focus on chronic chronic conditions condi
Slide 11: Lundbeck's B-share has increased +26%
Lundbeck’s B-share has increased +26% since January 2023 29-Dec-2023 Traded volume Index Last trading day 2023 (million shares) 02-Jan-2023 Share price: DKK 32,76 150 10 First trading day 2023 HOPE trial Share price: DKK 26,56 HLR PTSD 140 HLR 9 130 Rexulti® AADAD 8 +26% FDA approval Anti-PACAP PoC
Slide 12: Very efficient 2023 with multiple milestones and record revenue of DKK 20bn
Very efficient 2023 with multiple milestones and a record-breaking revenue of DKK 20bn Strong revenue performance and Achieved key R&D pipeline improved profitability milestones DKK 20bn Most productive year for R&D ever Reported revenue FDA approvals of Rexulti AADAD and Abilify Asimtufii +8% (Stra
Slide 13: Strong revenue and profit growth
Strong revenue and profit growth Key figures DKKm Growth FY 2023 FY 2022 Growth (CER)1 Revenue 19,912 18,246 9% 8% Gross margin 77.5% 78.3% (0.8pp) Sales and distribution (S&D) 7,482 6,610 13% 18% Administrative expenses 1,293 1,079 20% 21% Research and development (R&D) 3,457 3,754 (8%) (7%) EBITDA
Slide 14: Strong improvement in net profit
Strong improvement in net profit Net profit & adjusted net profit DKKm +20% +13% DKK 2,290m DKK 4,192m DKK 3,712m DKK 1,916m Adjusted Net profit Net profit 2022 2023 2022 2023 14 Lundbeck
Slide 15: Dividend payout increased by 21% versus last year
Dividend payout increased by 21% versus last year Dividend payout Dividend per share (DKK) DKKm 1.0 DKK 2023 2022 Share +21% 0.70 DKK Net profit for the year 2,290 1,916 0.58 0.5 Proposed dividends for the year 697 578 30% Carried forward as retained earnings 1,593 1,338 70% Proposed dividend per sh
Slide 16: Financial guidance for 2024
Financial guidance for 2024 Total revenue growth Adjusted EBITDA growth (CER) (CER) 7% – 10% 10% – 16% Total revenue growth reported1: Adjusted EBITDA growth reported1: Around 4%-points lower than CER Around 9%-points lower than CER CER: Constant Exchange Rates Guidance FY 2024 based on organic deve
Slide 17: Our sustainability key figures
Our sustainability key figures 1Estimated patient years, based on 2023 sales data for Lundbeck products, excluding partner products 2Targets are set annually based on expected production volume and mix 3Scope has been expanded to include all employees globally in 2023. 2022 and 2021 rates cover prod
Slide 18: Update from the CEO
UPDATE FROM THE CEO Charl van Zyl
Slide 19: Impact society through innovation
Impact society through innovation We aspire to become a focused innovator developing transformative treatments in neuroscience for patients with high unmet needs while delivering profitable sustainable long-term growth PATIENTS PEOPLE Nicole Living with migraine SOCIETY
Slide 20: Our people are the most important assets in Lundbeck
Our people are the most important assets in Lundbeck Lundbeck
Slide 21: Great execution across regions – strategic brands
Great execution across regions – strategic brands support our ambition to be a leader in neuroscience Growth in regional revenue DKK Growth (CER) (CER) United States +11% 4.5bn +20% Europe +11% International Markets +2% 4.3bn +5% 3.2bn +10% 1.7bn +74% CER: Constant Exchange Rates 21
Slide 22: Vyepti growth accelerates in the U.S. supported by global roll-out
Vyepti growth accelerates in the U.S. supported by global roll-out Revenue (DKKm, CER growth) +74% 2022 +66% Full investment behind the brand continues to DKK 1,697m 2023 DKK 1,578m drive growth • Global roll-out on track: - With 12 launches during 2023, Vyepti is now DKK 1,004m DKK 982m available i
Slide 23: Rexulti delivers strong performance in 2023
Rexulti delivers strong performance in 2023 driven by growing demand in the U.S. Revenue (DKKm, CER growth) +20% Continued growth driven by increased +19% 2022 DKK 4,525m 2023 penetration in the AADAD indication DKK 4,206m DKK 3,890m • Together with our partner Otsuka, continue investing in DKK 3,64
Slide 24: Double-digit growth across key regions
Double-digit growth across key regions Revenue (DKKm, CER growth) +5% 2022 Strong momentum in Europe and International DKK 4,324m DKK 4,277m 2023 Markets +14% • Mainly driven by Europe growing 16%, ~8 years after launch DKK 2,892m DKK 2,627m -10% • Continued strong growth across Europe and DKK 1,650
Slide 25: Solid performance across all regions driven by Abilify LAI franchise
Solid performance across all regions driven by the Abilify LAI franchise performance in the U.S. Revenue (DKKm, CER growth) +10% Delivering double-digit growth driven by strong 2022 DKK 3,187m 2023 performance DKK 2,964m +7% • Strong performance in most markets DKK 2,005m • Large market shares in ke
Slide 26: Building a robust, focused, and de-risked pipeline
Building a robust, focused, and de-risked pipeline Substantial transformation Biology Project Area Phase I Phase II Phase III Filing/Launch 1 Hormonal / Eptinezumab (anti-CGRP mAb) Migraine prevention 2 SUN-studies SUN-studies 2 PROMISE 1 & neuropeptide signaling 1 Eptinezumab (anti-CGRP mAb) Cluste
Slide 27: Several immediate focus points to become a focused innovator
Several immediate focus points to become a focused innovator and drive long-term sustainable growth We aim to provide medicines Focusing investments on strategic brands that transform the lives Secure stable mid-term growth Organic pipeline to deliver growth opportunities of people living with Progr
Slide 28: Three strategic horizons require strategic resource allocation
Three strategic horizons require strategic resource allocation Several key short-, mid- and long-term actions 2024-26: Focus 2027-29: Scale 2030-33: Accelerate Grow strategic brands Migraine & neuro-rare Organic pipeline franchise breakthroughs Disciplined Partnerships Ongoing capital allocation pro
Slide 29: Item 2: Approval of the Annual Report
ITEM 2: APPROVAL OF THE ANNUAL REPORT
Slide 30: Item 3: Resolution on the Appropriation of Profit or Loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS
Slide 31: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2023 Share Net profit for the year 2,290 Proposed dividends for the year 697 30% Carried forward as retained earnings 1,593 70% Proposed dividend per share (DKK) 0.70 31
Slide 32: Item 4: Remuneration Report
ITEM 4: PRESENTATION OF AND ADVISORY VOTE ON THE REMUNERATION REPORT
Slide 33: Presentation of and advisory vote on the remuneration report
Item 4: Presentation of and advisory vote on the remuneration report The Board of Directors recommends the report to be approved. 33 Lundbeck
Slide 34: Item 5: Election of Members to the Board of Directors
ITEM 5: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS
Slide 35: Members of the Board of Directors elected at the 2023 AGM
Item 5: Members of the Board of Directors - elected at the 2023 Annual General Meeting Remuneration & Nomination Audit Scientific Members Independent Committee Committee Committee 1. Lars Søren Rasmussen, Chair Yes ✓Chair ✓ 2. Lene Skole-Sørensen, Deputy Chair No ✓ ✓ 3. Santiago Arroyo Yes ✓ 4. Jeff
Slide 36: Election of members to the Board of Directors
Item 5: Election of members to the Board of Directors LARS SØREN LENE SKOLE- SANTIAGO JEFFREY RASMUSSEN SØRENSEN ARROYO BERKOWITZ LARS ERIK JAKOB DOROTHEA HOLMQVIST RIIS WENZEL 36
Slide 37: Board of Directors 2024
Item 5: Board of Directors 2024 LARS SØREN LENE SKOLE- SANTIAGO LARS ERIK DOROTHEA RASMUSSEN SØRENSEN ARROYO HOLMQVIST WENZEL JEFFREY JAKOB DORTE LASSE CAMILLA GRAM HOSSEIN BERKOWITZ RIIS CLAUSEN SKIBSBYE ANDERSSON ARMANDI Employee representatives 2022 – 2026 37
Slide 38: Item 6: Approval of Remuneration for the Board of Directors
ITEM 6: APPROVAL OF REMUNERATION FOR THE BOARD OF DIRECTORS FOR THE CURRENT FINANCIAL YEAR
Slide 39: Approval of remuneration – unchanged from 2023
Item 6: Approval of remuneration – unchanged from 2023 Approval of remuneration for the Board of Directors for the current financial year Board of Directors Current Proposal DKK Members of the Board 400,000 400,000 Supplement to members of the Board with permanent residence outside of Europe 400,000
Slide 40: Item 7: Election of State Authorized Public Accountants
ITEM 7: ELECTION OF STATE AUTHORIZED PUBLIC ACCOUNTANTS
Slide 41: Election of state authorized public accountants
Item 7: Election of state authorized public accountants In accordance with the recommendation submitted to the Board of Directors by the Audit Committee, the Board of Directors proposes that PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab should be re- elected as auditor for the Comp
Slide 42: Item 8: Proposals from Shareholders or the Board
ITEM 8: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS
Slide 43: Proposal by the Board of Directors: treasury shares
Item 8: Proposal by the Board of Directors 8.1. Acquisition of treasury shares The Board of Directors proposes to authorize the Board of Directors until the next annual general meeting to allow the Company to acquire treasury shares of a total nominal value of up to 10% of the share capital. The pur
Slide 44: Proposal by the Board of Directors: indemnification scheme
Item 8: Proposal by the Board of Directors 8.2. Proposal from the Board of Directors to adopt an updated indemnification scheme 8.2.1. The Board of Directors proposes to amend the Articles of Association to reflect the adoption of the updated indemnification scheme for the Board of Directors. 8.2.2.
Slide 45: Shareholder proposal
Item 8: Shareholder proposal 8.3. Shareholder proposal regarding meals after the general meeting Shareholder Kjeld Beyer proposes that shareholders attending the general meeting in person shall not be treated less favourably than the staff employed at the headquarters regarding meals after the gener
Slide 46: Proposal by the Board of Directors: filing of resolutions
Item 8: Proposal by the Board of Directors 8.4. Filing of the resolutions passed at the annual general meeting for registration with the Danish Business Authority The Board of Directors proposes to authorize the Chair of the annual general meeting to make such amendments and additions to the resolut
Slide 47: Item 9: Any Other Business
ITEM 9: ANY OTHER BUSINESS
Slide 48: Thank you and goodbye
THANK YOU AND GOODBYE