Sanofi Sa · EURONEXT:SAN
Sanofi Sa — Sanofi-Aventis — H1 2004 Earnings Presentation
36 slides from Sanofi Sa's earnings presentation, Aug 31, 2004
Slide 1: Conference call 2004 First Half Results Acomplia in obesity
Conference call 2004 First Half Results Acomplia in obesity
Slide 2: Important Information
Important Information In connection with the proposed acquisition of Aventis, Sanofi-Aventis (formerly Sanofi-Synthelabo) has filed a registration statement on Form F-4 (File no. 333-112314), including a prospectus and a prospectus supplement relating to the revised offer, and will file additional d
Slide 3: Important Information
Important Information The French Offer, the U.S. Offer and the German Offer are being made on substantially the same terms and completion of these offers is subject to the same conditions. It is intended that the subsequent offering periods in each of these three offers will expire at the same time.
Slide 4: Important Information: Forward-Looking Statements
Important Information Forward-Looking Statements. This communication contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-Looking statements are statements that are not historical facts. These statemen
Slide 5: Explanatory Notes
Explanatory Notes Unless otherwise stated, all figures in this communication are in French GAAP. In this communication, we refer to our historical sales as "reported" sales. In addition to reported sales, we also present and discuss two other non-GAAP indicators that we believe are useful measuremen
Slide 6: Explanatory Notes: Adjusted net income
Explanatory Notes Adjusted net income: Sanofi-Aventis believes that investor understanding of Sanofi-Aventis' performance will be enhanced by disclosing "adjusted net income" for Sanofi-Aventis' core business. Sanofi-Aventis defines "adjusted net income", a non-GAAP financial measure, as net income
Slide 7: Explanatory Notes
Explanatory Notes Management intends to use adjusted net income to manage and to evaluate Sanofi-Aventis' performance and believes it is appropriate to disclose this non-GAAP financial measure, as a supplement to its French GAAP reporting, to assist investors with their analysis of the factors and t
Slide 8: 2004 First Half Results
2004 First Half Results Jean-Claude LEROY Senior Vice President, Chief Financial Officer
Slide 9: Very strong consolidated sales growth
Very strong consolidated sales growth * Consolidated sales growth on a comparable basis : + 18.9% Currency impact : - 4.5% Of which US Dollar : - 3.1% Consolidated sales growth on a reported basis : + 14.3% * On a comparable basis H1 2002 H1 2003 H1 2004 Est 3680 3903 4460 +6.1% (+14.4%*) +14.3% (+1
Slide 10: Progression of 1.3 percentage point in Gross Profit ratio
H1 2002 H1 2003 H1 2004 Est 2974 3153 3660 Progression of 1.3 percentage point in Gross Profit ratio Progression of 1.3 percentage point in Gross Profit ratio to 82,1% Products mix and productivity improvement Increase of Plavix(r) and Avapro(r) US royalties At 2003 exchange rate, growth of 1.6 perc
Slide 11: Improvement of 3.3 percentage points in Operating Margin
Improvement of 3.3 percentage points in Operating Margin Research & Development: +13.4% (+16.6% at 2003 exchange rate) 15.8% of sales Phase III + Life Cycle Management Financing of the entire cost of developing Arixtra(r), idraparinux and other oligosaccharides Selling & General Expenses: +12.6% (+1
Slide 12: Operating Profit by region
Operating Profit by region* * 2 468 Eur m (excluding non-allocated expenditure: 735 Eur m) A balanced geographic spread of Operating Profit Europe U.S.A Autres pays CA 1012 1116 340 USA 1 116 m euros + 30,2% Other Countries 340 m euros + 24,1% 45% 14% Europe 1 012 m euros + 9,8% 41%
Slide 13: Net Profit
Net Profit* In million euros Improvement of 1.2 percentage point in Net Margin Financial Income: 22 m euros (vs. 63 Eur m in H1 2003) Net Financial Income: +18 Eur m (+30 Eur m in H1 2003) Impact of hedging policy: +29 Eur m (+53 Eur m in H1 2003) Mark to market adjustment of stock option plans 25 E
Slide 14: Strong EPS growth continues
EPS before exceptional items and goodwill amortization: 1,63 euro +21.6% (at 2003 exchange rate: +32.8%) EPS: 1.63 euro +21.6% Strong EPS* growth Continues :+ 21,6% * before exceptional items and goodwill amortization Earning Per Share* In euro H1 2002 H1 2003 H1 2004 Est 1.13 1.34 1.63 +18.6% +21.6
Slide 15: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account * + 18,9% on a comparable basis, after eliminating the impact of changes in Group structure and currency fluctuations H1 2004 H1 2004 H1 2004 H1 2003 H1 2003 H1 2003 Var. in million euros Eur m % Sales % Sales Eur m % Sales % Sales NET SALES 4 460 100.0% 100.0% 3 9
Slide 16: Consolidated Profit & Loss Account (continued)
H1 2004 H1 2004 H1 2003 H1 2003 Var. in million euros Eur m % Sales Eur m % Sales PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS 1 690 37.9% 1 388 35.6% + 21.8% Exceptional items 9 1 - Income taxes (576) (458) + 25.8% Share in profits of equity associates 21 19 + 10.5% Goodwill amortization (4) (4) - Minor
Slide 17: Simplified consolidated statement of cash flows
in million euros H1 2004 H1 2003 Operating cash flow 1 396 1 114 Change in working capital (630) (355) CASH FLOW PROVIDED BY OPERATING ACTIVITIES 766 759 Capital expenditure (201) (187) Proceeds from disposals 15 6 CASH FLOW USED IN INVESTING ACTIVITIES (186) (181) Changes in financial debts and oth
Slide 18: Simplified consolidated balance sheet
in million euros 30/06/04 31/12/03 30/06/04 31/12/03 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES AND SHAREHOLDERS' EQUITY Fixed assets 3 083 2 712 Shareholders' equity 6 834 6 323 Defered taxes 410 472 Minority interests 16 18 Inventories, receivables and others 3 846 3 187 Other long-te
Slide 19: Acomplia in obesity
AcompliaTM in obesity Gerard LE FUR Senior Executive Vice President Scientific Affairs
Slide 20: RIO-Europe study design
ACOMPLIA(tm) (rimonabant) in obesity RIO-Europe study design Treatment period : 2 years Double-blind Placebo n=305 Acomplia(tm) 5mg/day n=603 Acomplia(tm) 20mg/day n=599 Placebo D -28 D -1 ? Inclusion (Randomisation 1/2/2) D 728 Placebo run-in Single-blind Mild Hypocaloric diet : - 600 kcal/day Pati
Slide 21: RIO-Lipids study design
ACOMPLIA(tm) (rimonabant) in obesity RIO-Lipids study design Treatment period : 1 year Double-blind Placebo n=334 Acomplia(tm) 5mg/day n=340 Acomplia(tm) 20mg/day n=344 Placebo D - 28 D 1 ? Inclusion (Randomisation 1/1/1) D 364 Placebo run-in Single-blind Mild Hypocaloric diet : - 600 kcal/day Patie
Slide 22: RIO-Europe and RIO-Lipids results (1/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (1/8) Placebo Acomplia 5 mg Acomplia 20 mg % decrease at 1-yr vs. baseline -0.212 -0.307 -0.535 Metabolic syndrome(1): Percent decrease at 1-year vs. baseline - ITT population RIO-Europe 20mg vs placebo: p<0.001 Placebo Acomplia 5 mg Acompl
Slide 23: RIO-Europe and RIO-Lipids results (2/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (2/8) Weight change (kg; mean+-SEM) by visit (week) and LOCF(1) - ITT population RIO-Lipids Donnees a completer 5mg vs placebo: p<0.001 20mg vs placebo: p<0.001 (1) LOCF: Last Observation Carried Forward RIO-Europe 5mg vs placebo: p=0.001 2
Slide 24: RIO-Europe and RIO-Lipids results (3/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (3/8) Waist circumference change (cm; mean+-SEM) by visit (week) and LOCF(1) - ITT population (1) LOCF: Last Observation Carried Forward RIO-Lipids RIO-Europe 5mg vs placebo: p=0.029 20mg vs placebo: p<0.001 5mg vs placebo: p=0.016 20mg vs
Slide 25: RIO-Europe and RIO-Lipids results (4/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (4/8) HDL-cholesterol: Percent change (mean+-SEM) by visit (week) and LOCF(1) - ITT population RIO-Lipids Placebo Acomplia(tm) 5mg Acomplia(tm) 20mg RIO-Europe (1) LOCF: Last Observation Carried Forward 5mg vs placebo: p=0.025 20mg vs place
Slide 26: RIO-Europe and RIO-Lipids results (5/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (5/8) Triglycerides: Percent change (mean+-SEM) by visit (week) and LOCF(1) - ITT population RIO-Lipids Placebo Acomplia(tm) 5mg Acomplia(tm) 20mg RIO-Europe 5mg vs placebo: ns 20mg vs placebo: p<0.001 (1) LOCF: Last Observation Carried For
Slide 27: RIO-Europe and RIO-Lipids results (6/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (6/8) Fasting insulin (µIU/mL): Mean change from baseline (+-SEM) after 1 year - ITT population placebo n = 272 AcompliaTM 5 mg n = 551 AcompliaTM 20 mg n = 534 RIO-Europe placebo n = 305 AcompliaTM 5 mg n = 307 AcompliaTM 20 mg n = 309 RIO
Slide 28: RIO-Europe and RIO-Lipids results (7/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (7/8) Insulin (µIU/mL) - OGTT test: Insulin 2 hr after 70g of glucose Mean change from baseline (+-SEM) after 1 year - ITT population * p<0.001 vs placebo * placebo n = 189 AcompliaTM 5 mg n = 391 AcompliaTM 20 mg n = 397 * p=0.016 vs place
Slide 29: RIO-Europe and RIO-Lipids results (8/8)
ACOMPLIA(tm) (rimonabant) RIO-Europe and RIO-Lipids results (8/8) Cumulative study discontinuation rates 0 3 6 9 12 0.0 0.1 0.2 0.3 0.4 0.5 0 3 6 9 12 0.0 0.1 0.2 0.3 0.4 0.5 0 3 6 9 12 0 3 6 9 12 Cumulative Withdrawal rate 0.0 0.1 0.2 0.3 0.4 0.5 0.0 0.1 0.2 0.3 0.4 0.5 0 3 6 9 12 0.0 0.1 0.2 0.3 0
Slide 30: Acomplia: ten most frequently reported adverse events at 20mg
ACOMPLIA(tm) (rimonabant) - The ten most frequently reported adverse events at 20mg
Slide 31: Sanofi-Aventis: events related to the Aventis offer
SANOFI-AVENTIS: events related to the Aventis offer August 11, 2004: Announcement of a public offer for 20% of the capital of Aventis Pharma Limited India Subsidiary 50.01% owned by Hoechst AG August 12, 2004: Final results of the offers 95.47% (1) of the capital and 95.52% (1) of the voting rights
Slide 32: Sanofi-Aventis: events related to the Aventis offer
SANOFI-AVENTIS: events related to the Aventis offer August 23, 2004: Announcements related to Hoechst AG Announcement by sanofi-aventis of a mandatory public offer for the 1.91% of the capital of Hoechst AG not held by sanofi-aventis Announcement by Aventis of its intention to acquire the shares of
Slide 33: Sanofi-Aventis: towards a swift and effective integration
SANOFI-AVENTIS: towards a swift and effective integration June 21, 2004: Announcement of the future Management Committee July 2004: Establishment of Integration Committee August 30, 2004: First meeting of the sanofi-aventis Board of Directors September 2004: Implementation of the new organizational
Slide 34: Sanofi-Aventis: a healthy outlook
SANOFI-AVENTIS: a healthy outlook Confirmation that deal will be accretive from 2004 Based on sanofi-aventis pro forma net adjusted income per share (1) Confirmation of projected amount and timing of synergies 1.6bn euros in 2006, of which 10% in 2004 and 60% in 2005 2005 guidance for the new group:
Slide 35: Questions & Answers
Paris - August 31%, 2004 if Questions & Answers
Slide 36: Conference call 2004 First Half Results Acomplia in obesity
Conference call 2004 First Half Results Acomplia in obesity