Slide 1: FY 2019 Results
FY 2019 Results February 13, 2020 Aymeric Le Chatelier, CEO & CFO
Slide 2: Disclaimer & Safe Harbor
Disclaimer & Safe Harbor This presentation includes only summary information and does not purport to be comprehensive. Forward-looking statements, targets and estimates contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such statements in
Slide 3: Agenda
Agenda 01 Excellent 2019 operating performance including sound financial structure 02 Setback in palovarotene development program 03 Strong business fundamentals and strategy 04 Solid 2020 guidance / Updated 2022 outlook 05 Conclusion/ Q&A
Slide 4: FY 2019 Financial Performance
01 FY 2019 Financial Performance
Slide 5: Delivering strong 2019 operating performance and sound financial structure
Delivering strong 2019 operating performance and sound financial structure Top line Bottom line Financial structure Group sales exceeded €2.5bn Core Operating Income growth of +18.6% Sound financial structure with net debt at and margin expansion to 30.4% €1.1 billion after acquisition of Clementia
Slide 6: FY 2019 sales growth driven by Specialty Care
FY 2019 sales growth driven by Janice Living with cervical dystonia Specialty Care Tennessee, USA Group sales Net sales of key products in FY 2019 in million euros – % excluding foreign exchange impact €2,576.2m Specialty Care sales +14.8%1 Somatuline® 1,032 +18% Decapeptyl® 407 +9% Cabometyx® 242 +
Slide 7: FY 2019 Commercial highlights
FY 2019 Commercial highlights Wade Living with acromegaly, Salt Lake City, USA Oncology Neuroscience Consumer Healthcare +20% growth driven by strong +10% growth of strong sustainable Sales down -1.2% performance across all major products and neurotoxin franchise with sales growth +0.9% in H2 2019 g
Slide 8: Investments focused on pipeline and commercial support
Investments focused on pipeline and commercial support In €m FY 2019 FY 2018 % Change COGS: Improvement from positive mix effect of Net sales 2,576.2 2,224.8 +15.8% growing Specialty Care business offset by higher Cabometyx royalties Other Revenues 116.5 123.6 -5.7% Selling expenses: Limited growth
Slide 9: Operating leverage driving core operating margin expansion
Operating leverage driving core operating margin expansion Further Core Operating Income margin expansion exceeding 30.0% of net sales -0.9pts Group margin expansion driven by Specialty Consumer -0.4pts Care growth despite dilutive impact of Healthcare palovarotene development costs Unallocated +3.0
Slide 10: Core Operating Income to Consolidated Net Profit
Core Operating Income to Consolidated Net Profit In €m FY 2019 FY 2018 Change Operating Income Core Operating Income 782.6 659.9 +122.8 Impairment loss of €669 million before tax related to the recent setbacks in the palovarotene development Core operating margin 30.4% 29.7% +0.7pts program Amortiza
Slide 11: Strong cash flow generation and sound financial structure
Strong cash flow generation and sound financial structure 2019 Free Cash Flow at €468m (+2.2% vs. 2018) Full refinancing in 2019 with an EBITDA of €873m (+22%), limited increase in working to increase debt capacity for future business development, extend capital and increased capital expenditure the
Slide 12: Palovarotene Update
02 Palovarotene Update
Slide 13: Setback in palovarotene development program
Setback in palovarotene development program • FDA partial clinical hold for patients below 14 years in FOP and MO studies Dosing discontinued in this population; FDA letter received by end of December What • IDMC informed Ipsen that Phase 3 MOVE trial reached pre-specified second interim futility ha
Slide 14: Commitment to FOP and to build successful Rare Diseases franchise
Commitment to FOP and to build successful Rare Diseases franchise Marin Living with fibrodysplasia ossificans progressiva Hamilton, Canada FOP: Ultra-rare and severely-disabling bone disorder with no therapeutic treatment options Palovarotene • Most advanced clinical program for the treatment of FOP
Slide 15: Strong Business Fundamentals and Strategy
03 Strong Business Fundamentals and Strategy
Slide 16: Confirming strong business fundamentals and strategy
Confirming strong business fundamentals and strategy Sound financial Diversified Strong Specialty Disciplined business structure and Advancing R&D geographical Care franchise built development attractive cash flow pipeline footprint over the years strategy conversion 16
Slide 17: Leading global biopharma focused on innovation and Specialty Care
Leading global biopharma focused on innovation and Specialty Care Sales by therapeutic area Sales by geography FY 2019 sales by therapeutic area FY 2019 sales by geographical area North Neuroscience America Rare Diseases 15% Europe 30% Specialty EU5 3% Care Consumer Healthcare 11% 89% 33% 11% 19% 72
Slide 18: Strong Specialty Care franchise built over the years
Strong Specialty Care franchise built over the years Ronny Living with neuroendocrine tumors Ringwood, UK Oncology Neuroscience Rare Diseases Established niche presence Leading player Establishing niche presence Somatuline: Best-in-class SSA with Leading neurotoxin Dysport Proven capabilities and pa
Slide 19: Advancing solid pipeline across strategic TAs
Advancing solid pipeline across 3 strategic TAs with several significant Phase 3 / registrational trials Preclinical Phase I Phase II Phase III Registration 177Lu-IPN-01072 68Ga-IPN-01070 Longer-acting neurotoxin (Satoreotide Tetraxetan) (Satoreotide Trizoxetan) Palovarotene Dysport mrBoNT/A GEP-NET
Slide 20: Delivering key R&D milestones in 2020
Delivering key R&D milestones in 2020 Long-acting neurotoxin (A) Fast-acting neurotoxin BLU-782 Program Phase 1/2 Phase 2 Phase 2 advancements Spasticity and aesthetics Glabellar lines FOP Top-line Cabometyx Dysport Decapeptyl results Phase 3 CheckMate 9ER Phase 2 Phase 3 1L RCC combo w/Opdivo Hallu
Slide 21: Driving disciplined business development strategy for long-term sustainability
Driving disciplined business development strategy for long-term sustainability Core therapeutic Type of investments Funding and management of areas targeted investments Oncology Full maturity spectrum: Strong Free Cash Flow generation to Differentiated, best-in-class assets in Early and mid-stage as
Slide 22: 2020 Guidance Updated 2022 Outlook
04 2020 Guidance Updated 2022 Outlook
Slide 23: 2020 guidance
2020 guidance Sales growth High single-digit sales growth for Specialty Care Including impact of octreotide generic on Somatuline in EU and lower sales for Onivyde >+6.0% at constant currency Mid single-digit sales decline for Consumer Healthcare Considering challenging competitive environment in Ch
Slide 24: Updated 2022 financial outlook
Updated 2022 financial outlook Group Net Sales >€2.8bn Core Operating Margin >28.0% (assuming current level of exchange rates) (as % of net sales) 2019 2020 2021 2022 • Existing portfolio, assumes no approval of additional meaningful products or indications • No sales assumed for palovarotene • Assu
Slide 25: Specialty Care: Solid product portfolio
Solid product portfolio Brand/ asset Geographies Major indications Growth / Peak sales Neuroendocrine Tumors (NET) Double-digit volume growth until potential impact of Global Acromegaly lanreotide generic Mid single-digit growth in all territories Ex-U.S. and Japan Prostate Cancer (assuming no gener
Slide 26: Conclusion Q&A
Conclusion Q&A SIPSEN
Slide 27: 2020 Objectives
2020 Objectives Growth Pipeline Culture • Maximize growth, value and market share • Increase value of internal pipeline by • People: Continue transformation through worldwide for differentiated best-in-class transforming R&D organization and leadership and people Specialty Care products prioritizing
Slide 28: Q&A
Q&A SIPSEN Snoeaon fr coe ore
Slide 29: Thank You
Marin Living with fibrodysplasia ossificans progressiva Hamilton, Canada Thank You
Slide 30: From consolidated net profit to core net profit
From consolidated net profit to core net profit Palovarotene Actual 2019 Actual 2019 In €m impairment Before Reported impacts Impairment Consolidated net profit -50.2 448.8 398.6 Amortization of intangible assets 83.8 - 83.8 (excl. software) Other operating income and expenses 35.8 - 35.8 Restructur
Slide 31: Positive impact of foreign exchange in FY 2019
Positive impact of foreign exchange in FY 2019 61% of sales in non-EUR currencies Sales by geography USD now 32% of sales 2019 sales by currency1 Average rates change (2019 vs. 2018) … 7% Other 2% 19% 1% GBP 4% EUR 39% -3% CNY 6% -7% 32% USD RUB CNY BRL TRY USD Positive impact on Sales of +2.1% main
Slide 32: Free Cash Flow generation of €468mn strengthening Balance Sheet
Free Cash Flow generation of €468mn strengthening Balance Sheet In €m +873 +31 -173 -264 -84 -1,1127 -242 -188 -1,1116 -243 Free Cash Flow: €468m +58 Net debt as of IFRS 16 EBITDA Change in Net Restructuring, Dividends Net Share Net debt as of December 2018 working capex Financial, Tax & investments
Slide 33: Oncology ongoing clinical trial highlights
Oncology ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Addressable populaton in Ipsen territories Cabometyx 1L RCC 638 ▪ Arm 1: cabozantinib + nivolumab ▪ Primary: PFS Data expected early 2020 ~30K patients Phase 3 CheckMate 9ER ▪ Arm 2: sunitinib ▪ Secondary: O
Slide 34: Oncology ongoing clinical trial highlights
Oncology ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Satoreotide trizoxetan GEP-NET 25 ▪ Satoreotide trizoxetan ▪ Primary: Difference in Recruiting 68Ga-IPN-01070 relative lesion counts Phase 2 ▪ Secondary: Difference in NCT03220217 image quality IPN01087 NTSR
Slide 35: Neuroscience ongoing clinical trial highlights
Neuroscience ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Addressable populaton in Ipsen territories Dysport Hallux valgus 165 ▪ Dysport (AbobotulinumtoxinA) ▪ Primary: Change from Recruiting ▪ High prevalence Phase 2 (foot bunions) baseline in daily worldwide:
Slide 36: Rare Diseases ongoing clinical trial highlights
Rare Diseases ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Addressable populaton in Ipsen territories Palovarotene FOP (chronic) 90 ▪ Palovarotene - 5 mg once daily and upon ▪ Primary: Change in HO Dosing paused after ~9K WW Phase 3 MOVE flare-up, 20 mg once da