Slide 1: Ipsen FY 2017 Results
Ipsen FY 2017 Results February 15, 2018
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 2017 Overview David Meek, CEO 02 2017 Financial Performance/ Aymeric Le Chatelier, CFO 2018 Financial Guidance 03 R&D Update & Conclusion David Meek, CEO 3
Slide 4: 2017 Overview
01 2017 Overview David Meek Chief Executive Officer 4
Slide 5: Vision to be a leading global biopharmaceutical company focused on innovation and Specialty Care
Vision to be a leading global biopharmaceutical company focused on 01 innovation and Specialty Care Growth story ▪ Fast-growing Specialty Care franchise Top ▪ Significant established Oncology business with two major new products line ▪ World-class Neurotoxin business gaining market share ▪ Synergies
Slide 6: Execution against 2017 objectives
01 Execution against 2017 objectives Specialty Consumer Core Care Healthcare Operating Exceeded Financial Performance sales sales Income 2017 guidance +25.9%1 +1.4%1 +38.4% Acquisition Dysport® Somatuline® Cabometyx® Business Execution and & Onivyde® Growth in integration of Market share aesthetics
Slide 7: Oncology exceeding €1bn in sales, representing >60% of total sales
01 Oncology exceeding €1bn in sales, representing >60% of total sales North America fast growing and Specialty Care led business representing 25% of sales FY 2017 sales by therapeutic area FY 2017 sales by geographical area Neurosciences Rare Diseases North America Specialty 4% Consumer 17% Healthca
Slide 8: Somatuline exceptional momentum
01 Somatuline ® exceptional momentum Sales growth (2015 – 2017) Positive market dynamics in the U.S. and Europe Ipsen reported ▪ U.S. driving 3/4 of Somatuline® growth sales (€m) €703m ▪ Continued strong momentum with average +32% quarter over quarter growth of ~+10% €538m +35% ▪ Volume growth drivi
Slide 9: Cabometyx solid RCC 2L launch and positive R&D developments
01 Cabometyx ® solid RCC 2L launch and positive R&D developments 2L RCC launch well underway Total volume (units) of Cabometyx ® ▪ Reimbursement established in all EU5 countries 2 000 ▪ Additional launches expected in rest of Europe, Canada and Australia in 2018 ▪ Dedicated & experienced teams in co
Slide 10: Onivyde accelerated ramp up expected in 2018
01 Onivyde ® accelerated ramp up expected in 2018 • First/only FDA-approved therapy in post-gemcitabine mPDAC • Novel formulation with superior PK profile and selective accumulation at Differentiated tumor site product • Category 1 evidence in NCCN guidelines • Positive leading indicators with >10%
Slide 11: Financials
02 Financials Aymeric Le Chatelier Chief Financial Officer 11
Slide 12: FY 2017 sales growth driven by Specialty Care business
02 FY 2017 sales growth driven by Specialty Care business Group sales Net sales FY 2017 in million euros – % excluding foreign exchange impact €1,908.7m Somatuline® 703 +32% +21.1% Specialty Care Decapeptyl® 349 +4% Onivyde® 57 Specialty Care Cabometyx® €1,591.9m 52 +25.9% Dysport® 328 +15% Nutropin
Slide 13: 2017 performance highlights for key products
02 2017 performance highlights for key products Established Specialty Care Specialty Care new products Consumer Healthcare Somatuline® Cabometyx® ▪ Business back to growth with • Continued strong momentum and • Reimbursement established in successful OTx strategy market share expansion in the U.S. a
Slide 14: Limited impact of foreign exchange in 2017 but increasing USD exposure
Limited impact of foreign exchange in 2017 02 but increasing USD exposure More than 50% of sales in non-EUR Limited evolution of USD and rebound of some currencies emerging markets currencies in 2017 H1 2017 sales by currency Average rates change (FY2017 vs. FY2016) … Other(1) 11% 7% 16% EUR GBP 4%
Slide 15: Investments focused on pipeline development and commercial support for launches
Investments focused on pipeline development and commercial support 02 for launches of new products COGS (€m) R&D (€m) 385.6 351.1 265.8 231.3 22.2% 20.2% 14.6% 13.9% (1) (1) FY 2016 FY 2017 FY 2016 FY 2017 Positive mix effect from growing Specialty Care business Pipeline programs and growing medical
Slide 16: Operating leverage driving significant margin expansion
02 Operating leverage driving significant margin expansion Core Operation margin evolution (as % of sales) +0.4 pt -0.1 pt +0.0 pt FX Cabometyx®(1) Onivyde®(1) +3.1 pts 26.4% Base business performanc 23.0% e 2016 2017 Specialty Care driving margin expansion and Consumer Healthcare margin reflecting
Slide 17: Core Operating Income to EPS
02 Core Operating Income to EPS In million euros 2017 2016 Change % Change Core Operating Income +38.4% Net sales 1,908.7 1,584.6 +324.1 +20.5% • Strong Specialty Care sales growth Core Operating Income 503.6 363.9 +139.7 +38.4% • Increased commercial investments for Core Operating margin 26.4% 23.0
Slide 18: Growing free cash flow and strong balance sheet
02 Growing free cash flow and strong balance sheet Free cash flow: €309m In €m -95 -5 -53 +548 -86 Opening -71 Closing net net cash* debt* 69 -789 -463 +19 December EBITDA Change in Net Tax, financial Dividends BD & Share Decembe Restructuring 2016 working capital capex & other milestones buy back r
Slide 19: 2018 Financial objectives
02 2018 Financial objectives FY 2018 guidance Sales growth > +16.0% at constant currency • Fueled by strong double-digit growth of Specialty Care and low single-digit growth of Consumer Healthcare • Based on the current level of exchange rates, sales growth should be negatively impacted by approxima
Slide 20: Key 2017 financial takeaways
02 Key 2017 financial takeaways ▪ Group sales growth at +21%(1) driven by the strong performance of the Specialty Care business ▪ Core Operating Income growing by +38% and margin reaching 26.4%, up 3.4 pts ▪ Solid cash flow conversion with free cash flow growing by +35% ▪ Dividend increase from €0.8
Slide 21: R&D update / Conclusion
03 R&D update / Conclusion David Meek Chief Executive Officer 21
Slide 22: 2017 R&D Achievements
03 2017 R&D Achievements Approvals Adult Upper Carcinoid Limb spasticity Carcinoid syndrome (U.S.) (U.S.) syndrome diarrhea (EMA) Program advancements Positive Phase 3 results in 2L HCC Phase 2 in 1L (CELESTIAL New Immuno- pancreatic & 1L RCC Oncology 2L SCLC study) filing (EMA) combination studies
Slide 23: Building sustainable R&D pipeline
03 Building sustainable R&D pipeline Preclinical Phase I Phase II Phase III Registration 3BP-227 3BP-227 (PRRT) (PRRT) PRRT (GEP NET) Somatuline® PRF Cabometyx® Dysport® solution (liquid) GEP NET 2L HCC cervical dystonia Long acting Long acting toxin toxin Cabometyx® Decapeptyl 3M Cabometyx® rBoNT/A
Slide 24: Accelerated transformation of R&D model
03 Accelerated transformation of R&D model To build an innovative and sustainable pipeline Internal development capabilities Externally sourcing innovation ▪ Ongoing assessment of pipeline to prioritize ▪ Active business development efforts resource allocation ▪ Focus on key therapeutics areas: ▪ Ac
Slide 25: 2018 Ipsen roadmap
03 2018 Ipsen roadmap ▪ Accelerate growth of Specialty Care sales through established products and successful new product launches ▪ Build sustainable and innovative pipeline through transformation of R&D and external innovation model ▪ Leverage and expand capabilities through business development ▪
Slide 26: MERCI
MERCI 26