CSL Limited · ASX:CSL
CSL — H1 2009 Earnings Presentation
28 slides from CSL's earnings presentation, Feb 18, 2009
Slide 1: CSL Limited 2008/09 Half Year Result
CSL Limited 2008/09 Half Year Result 18 February 2009
Slide 2: Disclaimer
Disclaimer Forward looking statements The materials in this presentation speak only as of the date of these materials, and include forward looking statements about our financial results and estimates, business prospects and products in research that involve substantial risks and uncertainties, many
Slide 3: Highlights
Highlights Total revenue $2.35bn up 25% (14% at constant currency*) • HPV royalties $82m EBIT $626m up 25% (18% at constant currency) Effective tax rate 21.6% NPAT $502m up 44%, underlying** up 24% R&D Investment increased to $153m Strong balance sheet Operating cashflow $445m up 52% EPS 85.4 cents
Slide 4: Talecris
Talecris Regulatory process remains on track • The parties have submitted their documents and information to the US FTC and have certified ‘substantial compliance’ with the Second Request • CSL is working diligently to assist the US FTC in their review of the acquisition Finance secured • Equity fin
Slide 5: Global Financial Crisis
Global Financial Crisis Vigilance regarding potential impact from Global Financial Crisis (GFC) Little to no impact to-date consistent with majority of products in portfolio being life saving in nature Potential GFC risk to outlook • Healthcare spending pressures • Debtors risk • FX volatility • Ong
Slide 6: Reported Outlook for FY2009
Reported Outlook for FY2009 Revenue $4.6bn – $4.7bn R&D $300m – $310m Net profit after tax* $1,020m - $1,060m Est. foreign currency NPAT impact** ~$170m Reported outlook excludes impacts of Talecris transaction closure Outlook statements are subject to: Material price and volume movements on core pl
Slide 7: Human Health Business Unit Performance
Human Health Business Unit Performance • CSL Behring • Other Human Health - CSL Bioplasma - CSL Biotherapies - CSL Research & Development
Slide 8: CSL Behring
CSL Behring • Sales US$1,405m (A$1,804m) • Up 19% in $US, up 18% at constant currency • December 2008 boosted by timing of sales • EBITDA US$460m, EBITDA margin ~33% • Strong contribution from core and specialty products • Optimizing product mix • 30% of IVIG now Privigen® & European liquid • Privig
Slide 9: CSL Behring – Sales up 19% in $US
CSL Behring – Sales up 19% in $US US$1,405m 1,400 Other US$1,182m 1,200 Immuno- globulins 1,000 800 Wound H Critical 600 Care 400 pdCoag 200 Helixate 0 Dec 07 Sales for the 6 month period Dec 08 9
Slide 10: Immunoglobulins
Immunoglobulins Highlights 600 US$530m • Growth in Cytogam®, 500 Rhophylac® & Vivaglobin® Specific IG US$402m • Global growth in IVIG arising 400 equally from product mix, price and volume strength 300 Immuno - globulins • IVIG volume up 11% 200 • Privigen® – IgLab Module 1 • FDA approval anticipate
Slide 11: Critical Care
Critical Care 300 US$268m Highlights 250 • Albumin growth arising US$214m Specialty equally from price & 200 Critical Care volume 150 • Strong contribution and growth in specialty 100 products such as, Albumin Haemocomplettan® P, 50 Beriplex® P/N and Berinert® P 0 • FDA approves RiaSTAP™ Dec 07 Dec
Slide 12: Haemophilia
Haemophilia 600 Highlights 500 US$480m US$453m PD Coagulation • Moderate sales growth 400 pdCoag • Beriate® up 12% 300 • Haemate® P /Humate-P® ITT patient treatment conclusions 200 • Monoclate® restocking in 2H09 100 Helixate Helixate® • Up 11% 0 Dec 07 Dec 08 • Canadian & UK tenders Sales for the 6
Slide 13: CSL Behring Outlook for FY2009
CSL Behring Outlook for FY2009 Sales growth in USD approx. ~15% at const. currency • Continued demand growth for IVIG • Supply / demand balance • Continued transition to Privigen® • Sales of ~3m grams Privigen® • Continued focus on subcutaneous • Vivaglobin® patient numbers • IG 20% formulation deve
Slide 14: CSL Bioplasma
CSL Bioplasma Sales A$151m up 23% (19% at constant currency) • Strong Albumin demand and improved pricing in China • Increased sales in SE Asia • Australian sales up 5% • Biostate® approved for von Willebrands disease in Australia • 10% IVIG clinical trials completed 14
Slide 15: CSL Biotherapies
CSL Biotherapies Sales A$251m down 6% (5% at constant currency) GARDASIL® Australia / New Zealand • GARDASIL® sales $84m (1H08 $143m) • 1H08 included strong initial take up of 18-26yo cohort • New Zealand included for first time Northern Hemisphere influenza sales $74m • US sales of 3.5m – 4.0m dose
Slide 16: Merck's GARDASIL
Merck’s GARDASIL® New indications submitted for FDA review • Efficacy in women ages 27 - 45 years • Efficacy in males - submitted to FDA in December 2008 R&D: 9-Valent HPV Vaccine, 5 additional oncogenic HPV types • Cover 87-92% cervical cancer • Anticipate filing BLA in 2012 New US patent expires 2
Slide 17: R&D progress since December 2008 briefing
R&D progress since December 2008 briefing R&D Investment 1H09 - $153m, FY2009 outlook ~$300m - $310m Influenza Data monitoring committee reviewed data and determined a second year of clinical end point study is required. Additional $21m 1H09 Replacement Therapies Berinert® P (C1 esterase inhibitor)
Slide 18: Financial Detail
Financial Detail
Slide 19: NPAT 1H09 – up 44% on 1H08
NPAT 1H09 – up 44% on 1H08 600 $502m Notable items 500 FX +$26m Reported NPAT $502m Non op. 400 NPAT at constant currency $476m $349m $432m 1H09 NPAT non operational items: 300 +24% - Net ‘Talecris’ financing $7m - FX gains on Hedges $13m 200 - Tax ‘one-offs’ $24m $44m 100 NPAT underlying $432m 0 De
Slide 20: Strong Financial Fundamentals
Strong Financial Fundamentals • Cashflow from operations $445m (up 52%) • Cash on hand $2.7bn • Interest bearing liabilities $835m • Net interest income $13.6m • Capital expenditure $133m 20
Slide 21: Effective Tax Rate
Effective Tax Rate Effective tax rate 1H09 21.6% Forecast Effective tax rates 2H09 ~25% Effective tax rate FY2009 ~23% 21
Slide 22: FY2009 outlook
FY2009 outlook Reported NPAT $1,020 - 1,060m 1,200 $1,020 NPAT at CC* $850 – 890m to 1,060m 1,000 FX Non operational items ~$170m - Net ‘Talecris’ financing $9m Non – op. 800 - FX gains on Hedges $13m $702m - Tax ‘one-offs’ $24m $810m +15% to 850m ~$45m 600 (CC excl. to 21% NPAT at CC one-offs) excl
Slide 23: Net Talecris Financing – FY 2009
Net Talecris Financing – FY 2009 AUD Forecast interest on US$1.5bn $35m Less Bridging facility $8m Commitment fee $6m Borrowing amortisation $3m Net Talecris financing $18m Tax $9m Financing post tax $9m 2H09 interest income on US$1.5bn to attract current US interest rates ie <1% pa 23
Slide 24: Talecris Transaction Impact
Talecris Transaction Impact P&L (pre tax) Close Does not close Break Fee Nil US$75m Transaction costs Capitalised US$25-30m Integration provision US$120m Nil Cash FX Gain Nil ~A$550m* * If exchanged into AUD as at December 2008. 24
Slide 25: Appendix
Appendix
Slide 26: Group Results
Group Results Half year ended December December December Change 2008 2007 % A$m A$m Sales 2,206.7 1,750.1 Other Revenue 139.1 125.6 Total Revenue 2,345.7 1,875.7 25% Earnings before Interest, Tax, Depreciation & Amortisation 701.5 572.8 22% Depreciation/Amortisation 75.3 72.9 Earnings before Interes
Slide 27: CSL Behring Sales
CSL Behring Sales Half year ended December 1H08 1H09 Change USD$M USD$M % rFVIII 199 220 11 pdCoag 254 260 2 Specialty Critical Care 111 133 22 Albumin 104 133 28 Wound Healing 48 55 15 Immunoglobulins 340 453 33 Specific IG 62 77 24 Other 64 74 16 Total Sales 1,182 1,405 19% 27
Slide 28: Foreign Currency Benefit FY2009
Foreign Currency Benefit FY2009 Foreign Exchange (post tax) $m FY Fcst Translation ~160 Transaction ~0-10 Total ~170 Translation Sensitivity 2H09 NPAT only (ie 6 months) 2H09* 1% chg • AUD/USD** 0.67 +/- $1.6m 1% movement in • AUD/EUR 0.52 +/- $1.9m key currency pairs • AUD/CHF 0.78 +/- $2.0m * Rate