Almirall Sa · BME:ALM
Almirall Sa — H1 2017 Earnings Presentation
29 slides from Almirall Sa's earnings presentation, Jul 24, 2017
Slide 1: H1 2017 Financial Results and Business Update
H1 2017 Financial Results and Business Update July 24th 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: H1 2017 Highlights
H1 2017 Highlights Eduardo Sanchiz CEO 3
Slide 4: H1 2017 Introduction
H1 2017 Introduction • We reiterate the recent Guidance provided on 10th July 2017 • Implemented decisive actions regarding the situation in the US • We retain strong confidence in Thermi despite a slow start to the year • Business remains on track in Europe and RoW • Approval of Skilarence® in all
Slide 5: US Market situation update
US Market situation update Inventory rebalancing Savings Cards/Coupons • No further change to our expectation of • New processes related to use of inventory reduction impact of c. €25 Patient Assistance Programs (PAP) Million having the expected effect Acticlate™ generic • Market actions implemented
Slide 6: H1 2017 - Financial Highlights
H1 2017 - Financial Highlights David Nieto CFO 6
Slide 7: H1/2017 - Financial highlights
H1/2017 - Financial highlights Highlights • EU Dermatology performance +2% Challenges • Polichem acquisition performing well (i.e. • Net Sales (-15%) negatively impacted by Ciclopoli up +35%) a combination of factors in our US Dermatology business • Strong cost control while investing in key R&D pro
Slide 8: H1/2017 - Net Sales drivers (€mn)
H1/2017 - Net Sales drivers (€mn) 13,1 388,3 -15,4 0,3 328,5 -50,9 -1,9 -5,0 Europe and RoW performance, especially Spain and Germany Inventory reduction of c. €25 Million and sharp increase of PAP cost YTD Jun Existing Generics US Thermi Mexico Fx rate effect YTD June 2016 impact (*) Aqua 2017 (*)
Slide 9: H1/2017 – Summarized P&L
H1/2017 – Summarized P&L Other Income higher than the same period last year due to AZ performance Gross margin impacted by reduction in sales in higher margin geographies Low comparable in H1/2016 Low comparable in H1/2016 and investment in Skilarence® launches 9 9
Slide 10: H1/2017 – EBITDA to Normalized Net Income
H1/2017 – EBITDA to Normalized Net Income Divestments of Mexican operations in 2016 Mainly related to one time cost linked to the integration of Poli Driven by Aqua goodwill write-off (non cash impact) 10 10
Slide 11: H1/2017 – Balance Sheet
H1/2017 – Balance Sheet Decrease of Goodwill is mainly due to the impairment of Aqua Includes the fair value of milestones and royalties from AZ deal Increase (vs. 2016) due to AZ milestone reclassification to current assets Revolving credit facility replaced Senior Notes in April Net cash position:
Slide 12: H1/2017 Cash Flow
H1/2017 Cash Flow Includes adjustment of impairments and financial expenses partially offset by AZ financial update, deferred up front payments and exchange differences Mainly due to milestone payment to Sun Pharma and upfront payment to Symatese Includes senior notes coupon payment on March 31st an
Slide 13: Dermatology
Dermatology Eduardo Sanchiz CEO Alfonso Ugarte Executive Vice President Global Commercial Strategy 13
Slide 14: Aqua
Aqua • Diverse portfolio of Dermatology products • Important platform from where to access the largest and most profitable Dermatology market worldwide • A specialist salesforce with nationwide coverage of key prescribers • Strong reputation and well-developed network of influencers • 3-year cumulat
Slide 15: Evolution of US PAP Cost – Key Events
Evolution of US PAP* Cost – Key Events In $ millions • Veltin & Altabax introduction • Marked increase in number of improper adjudications New PAP saving card and control measures in place 2016 2017 (*) Patient Asssitance Program 15
Slide 16: Savings Card – Costs per prescription
Savings Card – Costs per prescription Cost per Rx (Weekly Trend) 100 90 Acticlate 80 Veltin 70 Cordran Last 10 weeks (up to mid July) 17
Slide 17: Total number of US Rx prescriptions (by quarter)
Total number of US Rx prescriptions (by quarter) +23% vs 2016 YTD Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 16
Slide 18: Aqua - Action Plan implemented
Aqua - Action Plan implemented We have reinforced our supply chain management We have implemented a new Savings Card program and improved processes We built visibility with a new system, key controls and team in place. We initiated legal action against certain pharmacies Total prescriptions
Slide 19: Thermi
Thermi THERMI STRATEGY • Recognized technology and commercial platform in the energy-based medical device segment with significant growth potential in multiple indications • Body Shaping & Skin Tightening market is forecasted to achieve €1b in 2018 WW • In excess of 2,000 users in US and more than 1
Slide 20: Skilarence update
Skilarence® update • Recent approval of Skilarence® in all EU Member states • It is indicated as a first-line induction and long-term treatment for adults with moderate-to-severe chronic plaque Psoriasis • Strong support of Skilarence®, cost effective, oral treatment welcomed by KOL and payers • Ski
Slide 21: Closing remarks
Closing remarks Eduardo Sanchiz CEO 21
Slide 22: Wrap-up H1 2017
Wrap-up H1 2017 • Strong set of actions to deal with the challenges in the US • Expected growth in Thermi for full year, despite a slow start • Solid performance in Europe and rest of the world • Skilarence® approved and to be launched in Europe in Q3 • Tildrakizumab registration process moving ahea
Slide 23: Financial Appendixes
Financial Appendixes 23
Slide 24: 2017 New Guidance and Update
2017 New Guidance and Update Total Revenues Low double digit decline vs. 2016 Net Sales Low double digit decline vs. 2016 EBITDA Between EUR140-170 mn Previous Guidance 24
Slide 25: H1 2017 Dermatology sales performance
H1 2017 Dermatology sales performance YTD YTD % var vs € thousand Jun 2017 Jun 2016 LY Europe 91,828 90,308 +1.7% US 23,149 72,722 (68.2%) RoW 5,262 3,632 +44.9% Dermatology Rx 120,240 166,663 (27.9%) Thermi 14,976 16,468 (9.1%) Total Dermatology 135,216 183,131 (26.2%) and Aesthetics 25
Slide 26: Geographical breakdown of Dermatology sales
Geographical breakdown of Dermatology sales YTD YTD % var vs Europe € thousand June 2017 June 2016 LY Ciclopoli® 21,432 15,908 +34.7% Solaraze® 17,410 18,468 (5.7%) Decoderm® 12,427 12,400 +0.2% Other EU 40,560 43,533 (6.8%) Total 91,828 90,308 +1.7% YTD YTD % var vs US € thousand June 2017 June 201
Slide 27: Sales breakdown by Region
Sales breakdown by Region YTD YTD € thousand % var vs LY Jun 2017 Jun 2016 Europe * & Middle East 150,488 134,075 12.2% Spain 104,249 101,442 2.8% America, Africa & Asia Pacific 62,403 140,242 (55.5%) Others 11,339 12,534 (9.5%) Total 328,479 388,293 (15.4%) (*) Excluding Spain 27 27
Slide 28: Top 10 ranking
Top 10 ranking pat YTD YTD % var vs Jun 2017 Jun 2016 LY Ebastel and other (ebastine) 35,504 38,813 (8.5%) Ciclopoli (ciclopirox) 23,782 17,413 366% Tesavel & Efficib (sitagliptine) 23,431 23,254 0.8% Solaraze (diclofenac sodium) 17,549 18,640 (5.9%) Decoderm and other (flupredniden) 12,512 12,467 0
Slide 29: 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