Csl Limited · ASX:CSL
Csl — H1 FY2015 Earnings Presentation
30 slides from Csl's earnings presentation, Feb 11, 2015
Slide 1: CSL Limited 2015 Half Year Result
CSL Limited 2015 Half Year Result 11 February 2015
Slide 2: Legal Notice
Legal Notice Forward looking statements The materials in this presentation speak only as of the date of these materials, and include forward looking statements about CSL Limited and its related bodies corporate (CSL) financial results and estimates, business prospects and products in research, all o
Slide 3: Reported Financials
Reported Financials Sales US$2.7 billion, up 7% (up 8% @CC1) EBIT2 US$878 million, up 7% (up 9% @CC) NPAT2 US$692 million, up 7% (up 9% @CC) EPS US$1.46, up 10% (up 12% @CC) Cashflow from operations US$656 million, up 28% Interim dividend increased to US$0.58 (unfranked) • Converted to AUD ~$0.74, u
Slide 4: Operational Highlights
Operational Highlights Agreement to acquire Novartis’ global influenza vaccine business Hizentra® - EMA & U.S. FDA approve flexible dosing CSL 654 (rIX-FP) – BLA submitted to US FDA CSL 112 (rHDL) – global phase IIb clinical trial commenced Kankakee albumin facility expansion receives US FDA approva
Slide 5: Acquisition of the Novartis influenza vaccines business
Acquisition of the Novartis influenza vaccines business* CSL’s first major acquisition in a decade #2 position in global influenza vaccine industry Significant value creation potential for CSL • Global scale and reach • Innovation • Broad portfolio of products Integration planning advancing ahead of
Slide 6: Outlook for FY2015 @ FY14 exchange rates
Outlook for FY2015 @ FY14 exchange rates Financial Outlook NPAT growth tempered to ~10% @ CC, prior to inclusion of integration costs EPS > NPAT growth Notable items Novartis integration costs up to US$20m* New market entrants & competitive market place Outlook statements are subject to: The success
Slide 7: Group Revenue 1H15 US$2.8b
Group Revenue 1H15 US$2.8b IPL Product 3% Pharma & Groupings Vaccines 9% Specialty Products Other IVIG 27% 16% 9% Peri-op 7% SCIG 9% Albumin 12% Hyper pd Coag rFVIII IG 4% 11% 9% 7
Slide 8: Broad Sales Reach
Broad Sales Reach 1H15 US$2.7Bn ROW 13% North bioCSL America 9% 38% Asia 10% Europe 30% 8
Slide 9: Business Unit Performance
Business Unit Performance CSL
Slide 10: CSL Behring Sales up 8% @ CC
CSL Behring Sales up 8% @ CC US$M US$2,492m 2,500 US$2,357m Specialty Products 2,000 1,500 Immunoglobulins 1,000 Albumin 500 pdCoag Helixate 0 Dec 13 Sales for the 6 month period Dec 14 10
Slide 11: Immunoglobulins Sales up 5% @ CC
Immunoglobulins Sales up 5% @ CC US$M 1,200 US$1,122m US$1,085m Highlights 1,000 Normal IG Volume up 11% 800 • Global market conditions IVIG robust but competitive 600 • Strong growth in Europe following CIDP approval in 400 2013 • Geographic mix affect on 200 SCIG ASP • Market segmentation Specific
Slide 12: Albumin Sales up 16% @ CC
Albumin Sales up 16% @ CC US$M 400 US$358m 350 Highlights US$313m 300 • Ongoing strong global growth 250 • China growth 200 particularly strong 150 • Uniquely broad manufacturing footprint 100 and product offering 50 0 Dec 13 Dec 14 Sales for the 6 month period 12
Slide 13: Haemophilia Sales up 3% @ CC
Haemophilia Sales up 3% @ CC US$M Highlights 600 US$558m US$550m PdFVIII 500 • Successful tenders – pdCoag including Poland, Turkey & 400 Czech Republic • New ITT patients 300 200 Helixate® Helixate • Modest growth 100 • EUHASS study released • New competitor entrants 0 Dec 13 Dec 14 • Successful EU
Slide 14: Specialty Products Sales up 13% @ CC
Specialty Products Sales up 13% @ CC 500 US$M US$443m Highlights 450 US$403m +16% Wound Healing Up 16% @ CC, excl. wound 400 healing 350 Other Kcentra® (US) Specialty 300 Products • Launch of surgery indication • Add-on payment extended 250 Berinert® P 200 • Self administration label 150 driving new
Slide 15: bioCSL Sales up 15% @ CC
bioCSL Sales up 15% @ CC A$M 300 A$276m Highlights 250 A$238m Influenza sales A$116m Pharma 200 & vaccines • Severe US influenza season 150 • Shift to CSL distribution in the US 100 Gardasil* Influenza • Conclusion of male 50 Vaccine catch up program in Australia 0 Dec 13 Dec 14 Sales for the 6 mont
Slide 16: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Segment Revenue $92m, down 9% @CC HPV royalties $64m • Registration of 9-valent vaccine in US by Merck CSL362 (anti-IL-3Ra mAb) • Exclusive worldwide license with Janssen Biotech Inc to develop and commercialise CSL362 • Phase I trial in acute myeloid leukemia in
Slide 17: R&D Update
R&D Update rIX-FP (rec fusion protein linking factor IX with albumin) • rIX-FP Phase III efficacy data supports 7-14 day dosing • BLA submitted to FDA in December • MAA (Europe) submission planned Q2 2015 rVIII-SingleChain • Phase I/III study supports twice weekly dosing • BLA submission planned fir
Slide 18: R&D Update
R&D Update Kcentra® (4-Factor Prothrombin Complex Concentrate) • FDA approval for expanded indication to include urgent warfarin reversal in patients undergoing surgery (in addition to major bleeding) Beriplex® • Commencement of BeriplexTM Japan Phase III study Berinert® • Pivotal Phase III subcutan
Slide 19: Financials
Financials CSL
Slide 20: Margin Development
Margin Development % 45 40 EBITDAR&D* Margin 35 Margin 30 25 EBIT Margin 20 * Earnings before interest, taxes, depreciation, amortisation and research & development 20
Slide 21: Financial Discipline
Financial Discipline Cash control 1H14 1H15 Cashflow from operations $513m $656m +28% Capital Investment $189m $177m Days receivable 54 54 Cash conversion 80% 90% Optimising the cost of capital $M A$950m buyback 11% complete 800 Maturity Profile 600 €350m private placement complete 400 200 • Weighte
Slide 22: Economic Currency Exposures
Economic Currency Exposures Inflows Outflows $5.5bn $4.1bn CHF CHF 4% GBP 1% 10% 4% Other 10% CNY USD USD 5% 45% AUD 42% AUD 15% 11% EUR EUR 24% 29% • Removal of CHF currency cap – impact modest in FY15 • USD/CHF transaction FX largely offset by translation FX in FY15 Charts refer to FY14 cashflows
Slide 23: Financial Statements Simplification
Financial Statements Simplification Effective FY2015 The credit quality of financial assets that are neither past due, nor impaired is as follows: For the year ended 30 June 2014 Financial Institutions US$m Governments US$m Hospitals US$m Buying Groups US$m Other US$m Total US$m Cash and cash equiva
Slide 24: Commercial Capabilities and Opportunities
Commercial Capabilities and Opportunities
Slide 25: Commercial Capabilities & Opportunities
Commercial Capabilities & Opportunities Understanding of orphan/rare conditions and specialty markets New product innovation and differentiation (eg Hizentra®, Kcentra®) Lifecycle management of key brands (eg Berinert®, Privigen®) Comprehensive coagulation portfolio and recombinant pipeline Expansio
Slide 26: CSL Limited 2015 Half Year Result
CSL Limited 2015 Half Year Result 11 February 2015
Slide 27: Group Results
Group Results US Dollars Six months ended Dec Dec Dec Dec Change US$ Millions 2013 2014 2014 % Reported Reported at CC1 Sales 2,574 2,744 2,789 8.3% Other Revenue / Income 117 97 96 Total Revenue / Income 2,691 2,841 2,885 7.2% Earnings before Interest, Tax, 912 969 985 8.0% Depreciation & Amortisat
Slide 28: CSL Behring Sales
CSL Behring Sales US Dollars Half year ended December 1H14 1H15 1H15 Change USD$M USD$M USD$M % CC1 rFVIII 249 250 254 2% pdCoag 301 308 315 5% Albumin 313 358 364 16% Immunoglobulins 1,085 1,122 1,138 5% Specialty Products 403 443 454 13% - Peri-operative bleeding 183 208 213 17% - Other specialty
Slide 29: Notes
Notes Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current period’s results at the prior comparable period’s rates. This is done in two parts: (a) by converting the current period net profit of entities in the group that have reporting
Slide 30: Business Growth
Business Growth Biotech mAbs in core therapeutic segments CSL112 New treatment paradigm in ACS High margin contributor Recombinant Coagulation Factors rIX-FP, rVIII-SC, rVIIa-FP, rVWF Specialty Products Multiple high margin contributors: RiaSTAP ®, Kcentra™, CytoGam®, Berinert®, Zemaira® Core Produc