Ucb S.a. · EURONEXT:UCB

Ucb — FY2013 Earnings Presentation

44 slides from Ucb's earnings presentation, Feb 26, 2014

  1. Slide 1: UCB: 2013 full year results

    UCB: 2013 full year results London, 26 February 2014

  2. Slide 2: Disclaimer and safe harbor

    2 Disclaimer and safe harbor Forward-looking statements: This presentation contains forward-looking statements based on current plans, estimates and beliefs of management. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, includ

  3. Slide 3: UCB FY 2013 information flow

    3 UCB FY 2013 information flow ‫ ן‬Welcome and introduction • Roch Doliveux, CEO ‫ ן‬Performance update: Cimzia , Vimpat , Neupro + Keppra ® ® ® ® • Jean-Christophe Tellier, President Biopharma Brands and Solutions ‫ ן‬Financial performance • Detlef Thielgen, CFO ‫ ן‬R&D update • Ismail Kola, CSO ‫

  4. Slide 4: UCB FY 2013 financial highlights

    4 UCB FY 2013 financial highlights Growth of core medicines – a strong foundation actual constant rates rates Revenue € 3.4 billion -1% +2% • Continued sales growth of the core medicines: Cimzia®, Vimpat® and Neupro® • Keppra® generic erosion in Europe • Adverse exchange rate impacts Total operating

  5. Slide 5: Superior and sustainable value

    5 UCB’s growth prospects confirmed Superior and sustainable value Cimzia®, Vimpat®, Neupro® Emerging markets Mature product portfolio Schematic picture

  6. Slide 6: UCB's five strategic growth priorities (FY 2013)

    6 UCB’s five strategic growth priorities (FY 2013) ‫ ן‬1. Grow Cimzia , Vimpat and Neupro ® ® ® • “CVN” combined sales: € 1 187 million (+27%) ‫ ן‬2. Build emerging markets and Japan • BRICMT1 +13%; Japan -8% (+130% excl. allergy and currency effects) ‫ ן‬3. Advance UCB’s rich late-stage pipeline •

  7. Slide 7: Performance update: Cimzia, Vimpat, Neupro + Keppra

    Performance update: Cimzia®, Vimpat®, Neupro® + Keppra® Jean-Christophe Tellier, President Biopharma Brands and Solutions

  8. Slide 8: Cimzia performance

    8 Cimzia ® performance Reaching more patients € million FY 2013 FY 2012 Actual Constant North America 379 321 18% 22% Europe 168 133 26% 28% Japan 20 - >100% >100% BRICMT1 6 1 >100% >100% Rest of the World 22 12 83% 92% Total Cimzia® 594 467 27% 32% U.S. EU • Crohn’s disease (CD) • Rheumatoid arthri

  9. Slide 9: Cimzia RA in-market performance (Dec. 2013)

    9 Cimzia® RA in-market performance (Dec. 2013) U.S. - Cimzia® RA growth U.S. - Cimzia® RA – R3M TRx Share 12% 5,0% 10% • In-Market growth and share 4,8% based on TRx 8% market share • Shares calculated based on RA 4.7% 4,6% Anti-TNF market U.S. 6% • In-market growth is calculated 9,9% for MAT Dec’13

  10. Slide 10: Cimzia offers unique solutions for the U.S. market

    10 Cimzia® offers 2 unique solutions for the U.S. market Lyophilized formulation and prefilled syringe Lyophilized formulation accounts for approx. Consistent and continued growth of prefilled 20% of U.S. Cimzia® sales measured in IMS syringe as measured in IMS dollarized sales dollarized sales +21%

  11. Slide 11: Vimpat performance

    11 Vimpat® performance New indication to come € million FY 2013 FY 2012 Actual Constant North America 314 251 25% 29% Europe 87 76 15% 16% BRICMT1 4 2 55% 58% Rest of the World 6 5 25% 33% Total Vimpat® 411 334 23% 27% Epilepsy POS² • Adjunctive therapy: When monotherapy is no longer enough Monother

  12. Slide 12: Vimpat in-market performance (Dec. 2013)

    12 Vimpat® in-market performance (Dec. 2013) U.S. - Vimpat® growth U.S. - Vimpat® - R3M TRx Share 30% 3,0% 25% • In-Market growth and share 2,8% based on TRx 20% • In-market growth is calculated for market share 2,6% MAT Dec’13 vs. MAT Dec’12 3.0% U.S. 15% • Market share is calculated for 24,8% 2,4%

  13. Slide 13: Neupro performance

    13 Neupro® performance Strong, on-going performance € million FY 2013 FY 2012 Actual Constant North America 40 15 >100% >100% Europe 129 114 13% 14% Japan 9 1 >100% >100% BRICMT1 2 1 64% 66% Rest of the World 3 2 50% 53% Total Neupro® 182 133 37% 39% Parkinson’s disease (PD) • Impact across the moto

  14. Slide 14: Neupro in-market performance (Dec. 2013)

    14 Neupro® in-market performance (Dec. 2013) U.S. - Neupro® PD growth U.S. - Neupro® PD – R3M TRx Share 16% 10,0% 14% • In-market growth and share 9,0% based on TRx 12% market share • Shares calculated based on PD 10% 8.6% Key Competitors markets 8,0% U.S. 8% 14,9% • In-market growth is calculated f

  15. Slide 15: UCB delivers growth

    15 UCB delivers growth Cimzia®, Vimpat® and Neupro® driving company growth Expected peak sales at least € 1.5 billion1 Inflammatory arthritis indications and Crohn’s disease ■ Japan: RA launched (March 2013) ■ U.S.: PsA & AS launched (Sep. & Oct. 2013) ■ EU: AxSpA & PsA launched (Oct. & Nov. 2013) E

  16. Slide 16: Keppra performances

    16 Keppra® performances FY 2013 net sales -15% € million FY 2013 FY 2012 Actual Constant North America 223 236 -5% -2% Europe 315 451 -30% -30% Japan 62 47 32% 67% BRICMT1 71 64 12% 16% Rest of the World 40 41 -2% 2% Total Keppra® 712 838 -15% -12% Loss of exclusivity • U.S. - November 2008 (Keppra®

  17. Slide 17: UCB: Building emerging markets and Japan

    17 UCB: Building emerging markets and Japan Double digit growth and a specialty focus Emerging markets UCB's emerging markets* growth net sales 2013: +13% (+17% at constant rates) Keppra®: € 71m (+12%) Acquisition in Brazil (May 2012) Agreement with Biogen Idec to commercialize multiple sclerosis an

  18. Slide 18: Financial Performance

    Financial Performance Detlef Thielgen, CFO

  19. Slide 19: FY 2013 net sales

    19 FY 2013 net sales € 3 049 million (-1%; +3% at constant rates) € million 0 250 500 750 1.000 medicines Cimzia® Core Vimpat® Total core products sales € 1 187 million (+ 27%; +31%) Neupro® Keppra® Zyrtec® Mature products Xyzal® omeprazole Total mature products sales € 1 862 million (-13%; -9%) Met

  20. Slide 20: Recurring EBITDA

    20 Recurring EBITDA Lower marketing and selling, stable R&D expenses Actual Variance FX € million 2013 2012* Actual Constant Revenue 3 411 3 462 -1% 2% Net sales 3 049 3 070 -1% 3% Royalty income and fees 172 168 2% 5% Other revenue 190 224 -15% -12% Gross profit 2 297 2 378 -3% 2% Marketing and sel

  21. Slide 21: Net profit

    21 Net profit Actual Variance FX € million 2013 2012* Actual Constant Recurring EBIT 441 444 -1% 12% Impairment charges -29 -10 >-100% >-100% Restructuring expenses -32 -40 18% 17% Gain on disposals 23 31 -28% -28% Other non-recurring income 0 -7 n.m. n.m. Total non-recurring income / expenses (-) -

  22. Slide 22: Core earnings per share (EPS)

    22 Core earnings per share (EPS) Actual Variance FX € million 2013 2012* Actual Constant Net profit attributable to UCB 207 2491 -17% -4% shareholders + After-tax non-recurring items and 37 33 9% 17% financial one-offs - Profit / loss (-) from discontinued -5 -17 74% 74% operations + After-tax amort

  23. Slide 23: Debt maturity schedule

    23 Debt maturity schedule Status: December 2013 (€ million) 800 742 697 24 3003 4302 5741 350 100 500 225 350 150 250 176 99 75 Cash 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 beyond Belgian Commercial Paper Belgian retail bond Convertible bond Institutional eurobond Perpetual bond EIB loan O

  24. Slide 24: 2013 net debt walk

    24 2013 net debt walk € million Change in net debt: -242m Post conversion of convertible bond: +164m -1 602 397 (99) Convertible bond: 406* -1 766 (353) 69 (134) -2 008 (122) Net debt CF from Taxes paid Capex Dividends & Net interest FX and other 1 Net debt @ 31 Dec '12 Operations Treasury Shares @

  25. Slide 25: IFRS 10 impact on 2013

    25 IFRS 10 impact on 2013 IFRS 10 – effective 1 January 2014 • Concept of control whether an entity should be included within consolidated financial statements • UCB will consolidate two additional entities which manage clinical trials Expected impact (un-audited) • Higher R&D expenses • Lower net p

  26. Slide 26: 2014 financial outlook

    26 2014 financial outlook Full year 2014 expected dynamics Guidance 2014 (considers application of IFRS 10) (vs. 2013 pro-forma; un-audited) • Cimzia®, Vimpat®, Neupro® growth Revenue ~€ 3.5 – 3.6 billion 2.6% - 5.5% • Growth in emerging markets + Japan • Keppra® continued generic erosion Recurring

  27. Slide 27: R&D update

    R&D update Ismail Kola, CSO -_ Bia Bernadette, liVifgawith lupus.2 © 4 VN Inspired by patients. wed Driven by science.

  28. Slide 28: UCB's development pipeline: Immunology

    28 UCB's development pipeline Immunology Phase 1 Phase 2 Phase 3 Filing Cimzia® (certolizumab pegol) Filed (Feb. 2013) AxSpA1 (U.S.) epratuzumab Phase 3 results Q1 2015 systemic lupus erythematosus Cimzia® (certolizumab pegol) Phase 3 results H2 2014 juvenile idiopathic arthritis romosozumab (sclero

  29. Slide 29: UCB's development pipeline: CNS

    29 UCB's development pipeline Central Nervous System (CNS) Phase 1 Phase 2 Phase 3 Filing Vimpat® (lacosamide) Filed (Oct. 2013) epilepsy POS1 / monotherapy (U.S.) Vimpat® (lacosamide) Phase 3 results Q4 2014 epilepsy POS1 / monotherapy (EU) brivaracetam Phase 3 results H2 2014 epilepsy POS1 / adj.

  30. Slide 30: UCB's promising early pipeline

    30 UCB’s promising early pipeline Early pipeline holds breakthrough potential Three Phase 1 compounds with significant differentiation potential: • 2 NBEs:  CDP7657 (anti-CD40L) in systemic lupus erythematosus first results in H2 2014  UCB4940, immunological diseases • 1 NCE:  UCB5857, immunologi

  31. Slide 31: UCB NewMedicines

    31 UCB NewMedicines™ Strategy to deliver future breakthroughs 1. Deliver innovative first-in-class molecules 2. Increase success rates 3. Implement extreme networking and open innovation 4. Enhance scientific excellence 5. Increase efficiency 6. Strategic asset partnering

  32. Slide 32: Drivers of success in R&D

    32 Drivers of success in R&D R&D Productivity: What matters?* Indicators Evidence at UCB Scientific excellence Improving publication record Mean impact factor # publications 2010 2011 2012 2010 2011 2012 Truth seeking • Robust decision-making criteria • Pick winners and kill early mentality Tenure o

  33. Slide 33: Integrated Drug Discovery

    33 Integrated Drug Discovery Unique competitive edge at UCB UCB NCEs UCB NBEs NBEs informing NCE discovery? • Cimzia® Antibodies informing small • Keppra® molecule discovery • Vimpat® • epratuzumab • Neupro® • romosozumab • brivaracetam • CDP7657 • UCB5857 • UCB4940 Biology Chemistry Antibodies Smal

  34. Slide 34: Super network of scientific creativity and innovation

    34 Super network of scientific creativity and innovation Drug discovery Five Prime, Oxford University, Harvard University, Oncodesign, Lieber Institute for Brain Research, Crelux Genetics Birmingham University, Duke University, Innocentive Biomarker discovery MJ Fox Asset co-development Vectura Taxo

  35. Slide 35: Conclusion

    Conclusion Roch Doliveux, CEO

  36. Slide 36: Superior and sustainable value

    36 UCB’s growth prospects confirmed Superior and sustainable value Cimzia®, Vimpat®, Neupro® Emerging markets Mature product portfolio Schematic picture

  37. Slide 37: Appendix

    Appendix VN Inspired by patients. wed Driven by science.

  38. Slide 38: Upcoming expected R&D milestones

    38 Upcoming expected R&D milestones 2014 2015 2016 2017 Vimpat® UCB5857 epratuzumab romosozumab epilepsy POS - immunology SLE PMO Ped. adj. ther. - phase 1 results phase 3 results phase 3 results phase 3 results Vimpat® Cimzia® epilepsy POS - Cimzia® Juvenile IA adj. ther. (Asia) - C-Early™ results

  39. Slide 39: UCB's Patient Solution Organisation

    39 UCB's Patient Solution Organisation romosozumab Discovery epratuzumab brivaracetam research and … pipeline Biopharma Development NewMedicines™ Solutions Value for Patients Biopharma Established Brands and Brands, Solutions Solutions and Supply Keppra® Cimzia® Xyzal® Vimpat® Zyrtec® Neupro® …

  40. Slide 40: UCB: reinventing itself, leveraging a solid heritage

    40 UCB: reinventing itself, leveraging a solid heritage to deliver sustainable and superior value for patients 1928: Emmanuel 1990s: approval of 2006: UCB acquires Janssen establishes Keppra®, German pharma UCB in Brussels a novel Today company Schwarz anti-epileptic Pharma 2005: UCB divests non-pha

  41. Slide 41: Geographic and therapeutic breakdown

    41 Geographic and therapeutic breakdown 2013 net sales : € 3 049 million Europe 36%

  42. Slide 42: Shareholder structure (January 2014)

    42 Shareholder structure (January 2014) Stable shareholder base, free float of 60% “Free float” investors by region Source: Shareholder identification analysis (November 2011), 2012 and 2013 notifications and UCB underlying ownership analysis

  43. Slide 43: Attrition rates of failed Phase 3 candidates

    Attrition rates of failed Phase 3 candidates reveals P.O.C. Paradigm benefits 42% of Phase 3 trials fail H OBJECTIVITY AND ROBUSTNESS OF REGISTERABLE ENDPOINT High Biomarker Desired Quadrant for Most of Portfolio Low P.O.C. Attrition rate 63% Attrition rate 25% Least Desirable Quadrant for Portfolio

  44. Slide 44: Your UCB Investor Relations team

    44 Your UCB Investor Relations team ‫ ן‬Antje Witte, Vice President Investor Relations • Phone: +32 2 559 9414 • E-mail: [email protected] ‫ ן‬Alexandra Deschner, Investor Relations Director • Phone: +32 2 559 9683 • E-mail: [email protected] ‫ ן‬Isabelle Ghellynck, Investor Relations Pro

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