Ucb S.a. · EURONEXT:UCB

Ucb — Investor Presentation (September 2014)

40 slides from Ucb's investor presentation, September 2014

  1. Slide 1: UCB presentation

    UCB presentation September 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: Inspired by patients. Driven by science.

    3 Inspired by patients. Driven by science. Focus: Central Nervous System & Immunology R&D expenses 2013: 25% of € 3.4 bn revenue Over 584 000 patients treated with UCB’s core medicines, “CVN” Operations in more than 40 countries Approximately 8 700 employees globally

  4. Slide 4: Superior and sustainable value

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

  5. Slide 5: UCB's five strategic growth priorities (HY 2014)

    5 UCB’s five strategic growth priorities (HY 2014) Continuing our growth path ‫ ן‬1. Grow Cimzia®, Vimpat® and Neupro® • “CVN” combined sales: € 672 million (+25%; +29% CER1) • Strategic collaboration with Dermira for Cimzia® in dermatology ‫ ן‬2. Build emerging markets and Japan • Emerging markets2

  6. Slide 6: Cimzia performance

    6 Cimzia ® performance Reaching more patients € million HY 2014 HY 2013 Actual CER North America 214 174 23% 29% Europe 106 78 36% 37% Japan 19 8 >100% >100% Emerging markets1 3 3 -22% -15% Rest of the World 12 9 28% 36% Total Cimzia® 353 272 30% 35% • Psoriasis: strategic collaboration with Dermira

  7. Slide 7: Cimzia in-market performance (May 2014)

    7 Cimzia® in-market performance (May 2014) U.S. - Cimzia® Rheumatology growth U.S. - Cimzia® Rheumatology – R3M TRx Share 7% 4.0% 6% 3.8% • In-Market growth and share 5% based on TRx TRx market • Shares calculated based on Anti- 4% share 3.6% 3.6% TNF market U.S. 6.6% • In-market growth is calculate

  8. Slide 8: Vimpat performance

    8 Vimpat® performance New indication to come € million HY 2014 HY 2013 Actual CER North America 158 139 13% 19% Europe 52 42 25% 25% Emerging markets1 2 2 56% 72% Rest of the World 4 2 69% 83% Total Vimpat® 217 185 17% 21% Phase 2 Phase 3 Filing Monotherapy (EU) Monotherapy (U.S.) Q4 2014 Oct. 2013

  9. Slide 9: Vimpat in-market performance (May 2014)

    9 Vimpat® in-market performance (May 2014) U.S. - Vimpat® growth U.S. - Vimpat® - R3M TRx Share 25% 3.5% 20% 3.3% • In-Market growth and share TRx market based on TRx 15% 3.1% share 3.0% • In-market growth is calculated for U.S. MAT May ’14 vs. MAT May ’13 10% 21.3% 2.9% • Market share is calculated

  10. Slide 10: Neupro performance

    10 Neupro® performance On-going performance € million HY 2014 HY 2013 Actual CER North America 24 16 50% 56% Europe 67 60 11% 11% Japan 8 2 >100% >100% Emerging markets1 1 1 12% 24% Rest of the World 2 1 >100% >100% Total Neupro® 102 80 27% 29% • Parkinson’s disease (PD) • Restless leg’s syndrome (R

  11. Slide 11: Neupro in-market performance (May 2014)

    11 Neupro® in-market performance (May 2014) U.S. - Neupro® PD growth U.S. - Neupro® PD – R3M TRx Share 20% 7.0% • In-market growth and share 15% 6.5% based on TRx TRx market • Shares calculated based on PD share 6.1% Key Competitors markets U.S. 10% 6.0% • In-market growth is calculated for Current

  12. Slide 12: UCB delivers growth

    12 UCB delivers growth Core medicines tracking well towards peak sales targets Expected peak sales at least € 1.5 billion1 Inflammatory arthritis indications and Crohn’s disease ■ Total net sales of € 353 million (+30%) Expected peak sales at least € 1.2 billion1 Epilepsy partial onset seizures ■ To

  13. Slide 13: Keppra performances

    13 Keppra® performances Sizeable franchise € million HY 2014 HY 2013 Actual CER North America 97 112 -13% -9% Europe 141 162 -13% -13% Japan 39 26 48% 66% Emerging markets1 44 40 12% 23% Rest of the World 18 22 -16% -13% Total Keppra® 339 361 -6% -2% Status of exclusivity: • Japan - exclusivity unti

  14. Slide 14: UCB: Building emerging markets and Japan

    14 UCB: Building emerging markets and Japan FX headwind and a specialty focus Emerging markets • UCB’s emerging markets* net sales HY 2014: -11% (-1% CER) • Keppra®: € 44 million (+12%) • Agreement with Biogen Idec to develop and commercialize multiple sclerosis and hemophilia therapies in Asia UCB

  15. Slide 15: UCB HY 2014 financial highlights

    15 UCB HY 2014 financial highlights Good top-line performance driving growth Actual CER Revenue € 1 757 million • Continued sales growth of core medicines +6% +10% • Adverse exchange rate impacts Total operating expenses € 920 million -4% -2% • Continuous improvement and constantly striving for impr

  16. Slide 16: HY 2014 net sales

    16 HY 2014 net sales € 1 562 million (+7%; +11% CER) € million 0 100 200 300 400 medicines Cimzia® Core Vimpat® Total core products sales Neupro® € 672 million (+25%; +29% CER) Keppra® Zyrtec® Mature products Metadate™ CD Xyzal® Total mature products sales € 890 million (-4%; 0% CER) Nootropil® omep

  17. Slide 17: 2014 financial outlook confirmed

    17 2014 financial outlook confirmed Full year 2014 expected dynamics Guidance 2014* Revenue ~€ 3.5 – 3.6 billion • Cimzia®, Vimpat®, Neupro® growth Recurring • Strong early and late-stage pipeline ~€ 740 - 770 million EBITDA • Continued cost efficiencies Core EPS ~€ 1.90 – € 2.05 • ~192 million shar

  18. Slide 18: UCB's development pipeline

    18 UCB's development pipeline Pipeline filled with new molecular entities Phase 1 Phase 2 Phase 3 Filing brivaracetam Submission: early 2015 epilepsy POS1 / adj. therapy epratuzumab Phase 3 results: H1 2015 systemic lupus erythematosus (Partner: Immunomedics) romosozumab Phase 3 results: H1 2016 ost

  19. Slide 19: UCB's promising early pipeline

    19 UCB’s promising early pipeline Early pipeline holds breakthrough potential Discovery: • Breakthrough innovation collaboration with Sanofi • Discovery and development of innovative anti-inflammatory small molecules • Selected biologic agents to be replaced with small molecules • Potentially treati

  20. Slide 20: Appendix

    Fiat Inspired by patients. kw. 4 Driven by science.

  21. Slide 21: UCB: reinventing itself, leveraging a solid heritage

    21 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 company Schwarz anti-epileptic Pharma Today 2005: UCB divests non-pha

  22. Slide 22: Recurring EBITDA

    22 Recurring EBITDA Growth despite FX headwinds HY 2014 HY 2013 Variance € million Actual (restated)1 Actual CER Revenue 1 757 1 657 6% 10% Net sales 1 562 1 466 7% 11% Royalty income and fees 81 85 -5% -6% Other revenue 114 106 8% 9% Gross profit 1 195 1 139 5% 10% Marketing and selling expenses -3

  23. Slide 23: Net profit

    23 Net profit HY 2014 HY 2013 Variance € million Actual (restated)1 Actual CER Recurring EBIT 274 178 54% 74% Impairment charges -26 -8 >-100% >-100% Restructuring expenses -14 -11 -28% -30% Gain on disposals 11 8 19% 14% Other non-recurring income -18 -8 >-100% >-100% Total non-recurring income / e

  24. Slide 24: Core earnings per share

    24 Core earnings per share HY 2014 HY 2013 Variance € million Actual (restated)1 Actual CER Net profit attributable to UCB 137 59 >100% >100% shareholders + After-tax non-recurring items and 46 14 >100% >100% financial one-offs - Profit / loss (-) from discontinued -1 -3 58% 58% operations + After-t

  25. Slide 25: Debt maturity schedule (@ 30 June 2014)

    25 Debt maturity schedule (@ 30 June 2014) Convertible bond early redeemed in March (€ million) 800 640 658 3001 574 350 100 500 225 350 150 250 176 84 75 40 Liquid 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 beyond assets Belgian Commercial Paper Belgian retail bond Institutional eurobond Per

  26. Slide 26: HY 2014 net debt walk

    26 HY 2014 net debt walk € million Change in net debt: + 271 m 281 387 -1,729 -2,000 (107) (91) (175) (24) Net debt @ CF from Taxes paid Capex Dividends & Net interest FX, Convertible Net debt @ 01.01.2014 Operations Treasury share bond, and other1 30.06.2014 issuance 1 Includes: foreign exchange fl

  27. Slide 27: Geographic and therapeutic breakdown

    27 Geographic and therapeutic breakdown HY 2014 net sales : € 1 562 million Europe France 5% 36% Germany Vimpat® 7% 217 Cimzia® Italy 14% 353 5% Neupro® 23% Spain 102 North 6% America 4% U.K. & 43% Ireland Immunology - 4% Allergy Europe Keppra® 141 others 339 9% 11% 22% Other 333 Japan 21% Emerging

  28. Slide 28: Workforce distribution

    28 Workforce distribution Total headcount @ 30 June 2014: 8 851 employees Employees by function Employees by region Rest of the World Japan 2% 4% R&D 13% Belgium 22% Emerging market 26% France Marketing & 1% Sales Manufacturing Germany 52% 26% 8% UK & Italy Ireland 1% North America 8% 20% Europe - G

  29. Slide 29: Upcoming expected R&D milestones

    29 Upcoming expected R&D milestones 2014 2015 2016 2017 brivaracetam romosozumab Vimpat® CDP7657 UCB4940 epilepsy POS - Osteoporosis in post- epilepsy POS - SLE psoriatic arthritis adj. therapy menopausal women Ped. adj. ther. - phase 2 results phase 2 results submission phase 3 results phase 3 resu

  30. Slide 30: UCB's development pipeline: life cycle management

    30 UCB's development pipeline Life cycle management Phase 2 Phase 3 Filing Monotherapy (EU) Monotherapy (U.S.) Q4 2014 Oct. 2013 Adj. therapy (Asia) Epilepsy POS1 H1 2015 Ped. adj. therapy 2017 Adj. therapy Epilepsy PGTCS2 Start early 2015 AxSpA3 (U.S.) Feb. 2013 Psoriatic arthritis H1 2015 Juvenile

  31. Slide 31: Cimzia offers unique solutions for the U.S. market

    31 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 Rapi

  32. Slide 32: Access to Cimzia in the U.S.

    32 Access to Cimzia® in the U.S. Lives in preferred or co-preferred position 163 159 150 143 Covered lives in millions 122 125 118 114 32 37 38 29 Jan-12 Jan-13 Jan-14 Jul-14 Total lives with Cimzia® (certolizumab pegol) in preferred or co-preferred position in the U.S. Source: Preferred lives from

  33. Slide 33: Cimzia path to at least €1.5 billion peak sales

    33 Cimzia® path to at least € 1.5 billion peak sales Phase 3 Filing Launch U.S. EU Japan Crohn’s disease (CD) Apr 2008 C-Early™ H1 2016 Rheumatoid arthritis (RA) May 2009 Oct 2009 Mar 2013 Exxelerate™ H2 2016 Psoriatic arthritis (PsA) Sep 2013 Nov 2013 Ankylosing spondylitis (AS) Oct 2013 Oct 2013 U

  34. Slide 34: Vimpat path to at least €1.2 billion peak sales

    34 Vimpat® path to at least € 1.2 billion peak sales Phase 3 Filing Launch U.S. EU Japan Epilepsy POS1 Asia H1 2015 Adjunctive therapy May 2009 Sep 2008 Pediatric 2017 EU U.S. Monotherapy Q4 2014 Oct. 2013 Epilepsy PGTCS² Phase 3 Adjunctive therapy Start early 2015 1 Partial onset seizures 2 Primary

  35. Slide 35: Neupro path to at least €400 million peak sales

    35 Neupro® path to at least € 400 million peak sales Phase 3 Filing Launch U.S. EU Japan Parkinson’s disease (PD) Early stage May 2009 Feb 2006 Feb 2013 Advanced stage Jul 2012 Jan 2007 Feb 2013 Restless legs Jul 2012 Jun 2009 Feb 2013 syndrome (RLS) 1 Partial onset seizures 2 Primary generalized to

  36. Slide 36: Brivaracetam clinical development path

    36 Brivaracetam clinical development path A potential new option for people living with epilepsy Phase 1 Phase 2 & 3 10 studies 4 studies 30 studies 7 studies completed completed in completed ongoing (adults and children other with focal and generalized epilepsy) indications Exposure • > 3 000 peopl

  37. Slide 37: Brivaracetam Phase 3 development program

    37 Brivaracetam Phase 3 development program New treatment option for patients with uncontrolled seizures 1 274 patients 768 patients (aged 16-70) (aged 16-80) Efficacy + safety Tolerability + safety Efficacy + safety Duration 12 weeks 16 weeks 12 weeks N01252 N01253 N01254 N01358 Dosing placebo, 20,

  38. Slide 38: Positive Topline Results: Submission early 2015

    38 Positive Topline Results: Submission early 2015 Seizure reduction in treatment resistant patients Key characteristics and headline results High unmet medical need in ~1/3 of treated • One of the largest Phase 3 programs seen in epilepsy epilepsy patients • 50% of particiants were resistant to 5+

  39. Slide 39: Shareholder structure (July 2014)

    39 Shareholder structure (July 2014) Stable shareholder base with free-float of 64% Total number of shares: 194.5 million Weighted average shares outstanding: 192 million “Free float” investors by region Source: Shareholder identification analysis (November 2013), 2012 and 2013 notifications and UCB

  40. Slide 40: Your UCB Investor Relations team

    40 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 Man

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