Csl Limited · ASX:CSL
Csl — FY2014 Earnings Presentation
29 slides from Csl's earnings presentation, Aug 13, 2014
Slide 1: CSL Limited FY14 Full Year Result
CSL Limited FY14 Full Year Result 13 August 2014
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 Revenue US$5.5 billion, up 8% (up 9% @CC1) EBIT US$1,637 million, up 11% (up 10% @CC) NPAT US$1,307 million, up 8% (up 8% @CC) • Result includes one-off US antitrust class action settlement R&D investment US$466 million, up 9% (up 11% @CC) EPS US$2.701, up 11% (up 11% @CC) Final
Slide 4: Operational Highlights
Operational Highlights Strong growth in Hizentra®, Albumin & specialty products • Hizentra® – U.S. flexible dosing approval • Kcentra® – U.S. surgical use approval • Facilities expansion to support growth CSL 362 (AML) – license agreement bioCSL – business turnaround progress Capital Management • A$
Slide 5: Facilities Expansion: Investing for Growth
Facilities Expansion Investing for Growth Recombinant • New biotech manufacturing facility opened in Melbourne • New rCOAG manufacturing plant to be constructed in Lengnau, CH Plasma • Commercial start up of Broadmeadow’s Privigen facility in 2016 • Multisite albumin & base fractionation capacity ex
Slide 6: Group Revenue FY14 US$5.5b
Group Revenue FY14 US$5.5b IPL Product 3% Groupings Pharma & Vaccines 7% Specialty Products Other 7% IVIG 30% 15% Peri-op 8% Albumin 13% SCIG 9% pd Coag Hyper rFVIII IG 4% 10% 9% 6
Slide 7: Broad Sales Reach
Broad Sales Reach FY14 US$5.3b North America 41% bioCSL 7% Asia 10% Europe 29% ROW 13% 7
Slide 8: Outlook for FY15
Outlook for FY15 @ FY14 exchange rates Financial outlook • Revenue growth ~ 8% @CC • Reported EBIT growth ~ 15% @CC • Reported NPAT growth ~ 12% @CC (FY14 profit includes US antitrust class action settlement) • EPS growth will exceed NPAT growth driven by past and current capital management initiati
Slide 9: CSL Behring Product Sales up 10% @ CC
CSL Behring Product Sales up 10% @ CC US$M US$4,926m 5,000 US$4,491m 4,500 Specialty Products 4,000 3,500 3,000 Immunoglobulins 2,500 2,000 1,500 Albumin 1,000 pdCoag 500 Helixate 0 Jun 13 Sales for the 12 month period Jun 14 9
Slide 10: Immunoglobulins Sales up 12% @CC
Immunoglobulins Sales up 12% @CC US$M Highlights 2,500 US$2,320m Normal IG up 13% @ CC US$2,081m 2,000 IVIG • US • Hizentra differentiated 1,500 IVIG • Competitive pressure • Europe • New CIDP indication 1,000 positive for demand SCIG • Introduction of flexible dosing 500 option in the US SCIG • Ong
Slide 11: Albumin Sales up 16% @ CC
Albumin Sales up 16% @ CC US$M US$694m 700 Highlights US$602m China 600 • Ongoing strong demand 500 Albumin • Improving penetration into Tier 1 & Tier 2 cities 400 Europe • Solid demand continues 300 • Boosted by cautionary HES 200 statements by regulators RoW 100 • Broad strong demand • Brazil 0 Ju
Slide 12: Haemophilia Sales down 4% @ CC
Haemophilia Sales down 4% @ CC US$M Highlights 1,200 US$1,089m US$1,064m PdFVIII 1,000 • Tender markets tend to be pdCoag ‘lumpy’ 800 • Growth in EEMEA markets • Conclusion of treatment of 600 several EU ITT patients Helixate® 400 • Movement in sales mix Helixate • Multiple clinical trials in new 20
Slide 13: Specialty Products Sales up 18% @CC
Specialty Products Sales up 18% @CC US$M 900 US$848m Highlights 800 Kcentra® US$719m • Strong demand in US following 700 Other approval & launch Specialty • Orphan drug status 600 Products Berinert® P 500 • Self administration label driving 400 new patient take-up. 300 Zemaira® Peri- • New patient a
Slide 14: bioCSL Sales down 4% @CC
bioCSL Sales down 4% @CC A$M 500 450 A$435m A$433m Highlights 400 Pharma Business turnaround underway 350 & vaccines 300 Influenza sales A$125m 250 • Increased US demand • Growing US commercial 200 operations 150 • EU antigen sales down after partner exits market 100 Influenza 50 Vaccine MMR vaccine
Slide 15: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Segment Revenue US$145m HPV royalties US$119m V503, 9-valent vaccine, BLA submitted by Merck & Co. CSL362 (anti-IL-3Ra mAb) • Phase I trial in AML in progress • Exclusive worldwide license with Janssen Biotech Inc to develop and commercialise CSL362 • Collaborativ
Slide 16: R&D Update
R&D Update rIX-FP (rec fusion protein linking factor IX with albumin) • Pivotal Phase III study enrolment complete • Pharmacokinetic data supports 14 day treatment interval rVIII-SingleChain • Phase I/III study supports twice weekly dosing • First patient enrolled in pivotal Phase III paediatric stu
Slide 17: 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) Zemaira® • Efficacy data from Phase III/IV study submitted in EU and US Berinert® • Pivotal Phase
Slide 18: Business Performance FY14 Financial Detail
Business Performance FY14 Financial Detail
Slide 19: Notable Items
Notable Items US antitrust class action settlement • US$64m or US$39m after tax ETR 18.5% up from 17.1% • Further IP transfer anticipated in FY15 Natural currency hedges minimise FX related volatility • Net FX impact on FY14 NPAT $3.3m AASB 119 – accounting standard change • Defined pension benefit
Slide 20: EBITDAR&D Margin
EBITDAR&D* Margin % 45 40 EBITDAR&D Margin 35 30 25 Pre-reinvestment margin 20 All R&D investment expensed 15 R&D expected to grow in line with business opportunities 10 5 0 * Earnings before interest, taxes, depreciation, amortisation and research & development 20
Slide 21: Reported EBIT Margin
Reported EBIT Margin % 35 30 25 EBIT Margin Influencing Margin Investing in the Future 20 Currency & Timing R&D growth supported 15 Sales mix Expanding commercial footprint Improved efficiencies 10 Plasma collections Manufacturing efficiencies 5 0 21
Slide 22: Financial Discipline
Financial Discipline Cashflow from operations $1.36 billion Capital expenditure $402m Working Capital FY13 FY14 • Cash cycle (days) 285 281 • Inventory turnover 1.46x 1.58x • Free cashflow $767m $961m Financial Efficiency FY13 FY14 • Cash on hand $762m $609m • Net debt $917m $1,282m • Undrawn debt $
Slide 23: Balance Sheet Management
Balance Sheet Management X Gearing 1.5 ~ Target • Buyback 93% Complete 1.0 • Accumulated effect of buybacks since 2005 on 0.5 Net Debt / current period EPS 0.0 EBITDA ~19% • Gearing @FY14 0.7x -0.5 • Gearing target range ~1x Net debt/EBITDA -1.0 -1.5 FY09 FY10 FY11 FY12 FY13 FY14 23
Slide 24: bioCSL
bioCSL Influenza Logistics business • U.S. distribution of Afluria® • Two new customers signed back to bioCSL® • New registrations in Europe Efficiency initiatives • Pharmajet registration • Targeted headcount reduction • Outsourcing non-core In-licensing functions • Immucor distribution agreement •
Slide 25: 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
Slide 26: CSL Limited FY14 Full Year Result
CSL Limited FY14 Full Year Result 13 August 2014 Contact - Mark Dehring Head of Investor Relations Telephone: +613 9389 2818 Email: [email protected]
Slide 27: Group Results
Group Results US Dollars Full year ended June Jun Jun Jun Change US$ Millions 2013 2014 2014 % Reported Reported at CC1 Sales 4,950 5,335 5,375 8.6% Other Revenue / Income 150 169 170 Total Revenue / Income 5,100 5,504 5,546 8.7% Earnings before Interest, Tax, 1,681 1,832 1,823 8.4% Depreciation & A
Slide 28: CSL Behring Sales
CSL Behring Sales US Dollars Full year ended June FY13 FY14 FY14 Change USD$M USD$M USD$M % CC1 rFVIII 485 491 480 -1% pdCoag 604 573 566 -6% Albumin 602 694 699 16% Immunoglobulins 2,081 2,320 2,324 12% Specialty Products 719 848 856 18% - Peri-operative bleeding 317 414 407 28% - Other specialty p
Slide 29: Notes
Notes (#)Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current year’s results at the prior year’s rates. This is done in two parts: (a) by converting the current year net profit of entities in the group that have reporting currencies oth