Csl Limited · ASX:CSL
Csl — Shareholder Meeting (October 2008)
29 slides from Csl's shareholder meeting presentation, Oct 15, 2008
Slide 1: Chairman's Address and Managing Director's Presentation
For personal use only 15 October 2008 To: The Manager Companies Company Announcements Office Australian Securities Exchange Dear Sir/Madam Chairman’s Address and Managing Director’s Presentation Please find attached copies of the Chairman’s Address and Managing Director’s presentation slides to be p
Slide 2: Chairman's Address
CSL Limited Chairman’s Address Annual General Meeting – 15 October 2008 For personal use only “I am very pleased to be able to report that continuing demand for our plasma products and the strong uptake of the GARDASIL® vaccine against cervical cancer in Australia and on international markets have c
Slide 3: Chairman's Address: R&D and Talecris
“Investing in research and development is an essential part of our strategy for growth and increased by 18% this year to $225 million. In 2008-2009, we expect our R&D investment to increase to between $265 and $275 million. For personal use only “The Managing Director will go into greater detail on
Slide 4: Chairman's Address: Funding and Share Purchase Plan
“In order to protect the Company against currency risk, the proceeds from the institutional equity placement in mid August was converted to US dollars at an average rate of 87 cents. “Your Board was also very pleased with the result of the Shareholder Share Purchase Plan which was announced to the A
Slide 5: Chairman's Address: Climate change
the direct emissions from our facilities are well below the levels that will trigger the need for greenhouse gas permits. “Indirect effects of the Scheme and other related policy changes are likely to result in modest increases in energy prices, supply costs and environmental management fees. The Co
Slide 6: Outlook
“Shareholders will be kept informed about the progress of this initiative. OUTLOOK “At the end of the first quarter of the current financial year, I am pleased For personal use only to advise the Company performance is consistent with our expectations. “At the time of announcing our full year’s resu
Slide 7: Board changes
‘As part of that transition, human resource policies and initiatives have been of vital importance, and as Chairman of the Human Resources Committee his role and the execution of it has been very important. “So Ken, may I offer you my personal thanks as well as those of the Board for your very valua
Slide 8: CSL Limited Annual General Meeting October 2008
For personal use only CSL Limited Annual General Meeting 15 October 2008
Slide 9: Highlights - Financial
Highlights - Financial For personal use only • Total revenue $3,794m up 15% • GARDASIL® royalty of $167m • Australian GARDASIL® sales $227m • NPAT $702m up 30% • Includes adverse currency impact of $78m • NPAT at constant currency* up 45% Global Revenue $3.8bn • R&D expenditure of $225m up 18% North
Slide 10: Human Health Business Unit Performance
For personal use only Human Health Business Unit Performance • CSL Behring • Other Human Health - CSL Bioplasma - CSL Biotherapies - CSL Research & Development
Slide 11: CSL Behring
CSL Behring For personal use only Sales US$2,526m (A$2,822m) • Up 22% in $US or 15% at constant currency • Volume growth ~10% EBITDA US$799m, EBITDA margin ~32% • Strong contribution from core and specialty products • Strong growth in intercontinental sales • Optimizing product mix 4
Slide 12: Immunoglobulins sales
Immunoglobulins sales - Up 28% in $US Up 23% at Constant FX For personal use only 1,000 US$868m 900 Highlights 800 Specific Ig US$681m • IVIG product mix, price and 700 volume strength 600 • Launch of Privigen® in US 500 Immuno- • First full period of Cytogam® globulins 400 sales 300 • Strong growth
Slide 13: Critical Care Sales
Critical Care Sales - Up 26% in $US Up 16% at Constant FX For personal use only 600 US$461m 500 Highlights US$366m Haemostatics • Albumin price growth 400 Inhibitors • Strong contribution and Other 300 growth in specialty products such as, 200 Haemocomplettan® P, Albumin Beriplex® P/N and 100 Berine
Slide 14: Haemophilia sales
Haemophilia sales - Up 18% in $US Up 10% at Constant FX For personal use only 1,000 Highlights US$932m 900 US$790m Haemate® P /Humate-P® 800 700 • US patient uptake 600 pdCoag • Increasing ITT sales in 500 Europe 400 300 • Helixate® 200 Helixate • US patient growth 100 • UK contract win back 0 Jun 0
Slide 15: CSL Bioplasma
CSL Bioplasma For personal use only Sales A$253m up 20% • Strong Albumin sales in China • Taiwanese Toll fractionation commenced • 7% increase in plasma collected by ARCBS for fractionation in Australia • Biostate® approved for vWD in New Zealand • Recommended for approval by ADEC & TGA in Australia
Slide 16: CSL Biotherapies
CSL Biotherapies For personal use only Sales A$481m up 52% GARDASIL® Strong GARDASIL ® sales in Australia - $227m • ‘Catch-up’ program well advanced • NZ program expected to commence in September 2008 Influenza Vaccine – US Launch Approval and launch of US Influenza vaccine - Afluria® • US Phase IV
Slide 17: R&D Investment
R&D Investment Growth in new product and market development For personal use only $Am FY2009 ~$265m - 250 $225 $275m 200 $191 New Product Development $161 150 Market development 100 Life Cycle Management 50 0 FY2006 FY2007 FY2008 10
Slide 18: R&D Highlights – New Products
R&D Highlights – New Products For personal use only Replacement Therapies • Privigen – approved by the EMEA on April 25 • IgPro20 - subcutaneous 20% IgPro – phase III’s ongoing • Berinert® P (C1 Esterase Inhibitor) – BLA submission • Beriplex® P/N approved in Western Europe • Fibrinogen – BLA submis
Slide 19: R&D Highlights – New Products
R&D Highlights – New Products For personal use only Immunomodulators (ISCOMATRIX® Adjuvant) • December 2007 – Merck added 2 additional licences • Clinical programs continuing • Influenza ISCOMATRIX® Vaccine – Phase IIa completed Therapeutic Proteins • CSL360 mAb for Acute Myeloid Leukaemia - Phase I
Slide 20: Acquisition of Talecris Biotherapeutics Holdings Corp.
For personal use only CSL Limited Acquisition of Talecris Biotherapeutics Holdings Corp. Enhancing a World Leading Plasma Therapeutics Business
Slide 21: Acquisition Summary
Acquisition Summary For personal use only • Agreement signed to acquire Talecris, a leading manufacturer and marketer of plasma-derived protein therapies, from current owners, Cerberus and Ampersand • Cash purchase price of US$3,100m (A$3,483m)(1) less any net debt that may be assumed by CSL • Exten
Slide 22: Talecris Historical Sales
Talecris Historical Sales For personal use only Talecris Sales Evolution(1) Talecris Sales by Geography US$m (US$1,219m in CY2007) 1,400 Acquired by Cerberus and 6% Ampersand on 1 April 2005 1,200 11% 1,000 Other Revenue 800 Other Albumin 600 Alpha1-PI IVIG 400 83% 200 North America Europe RoW 0 CY2
Slide 23: Strategic Rationale
Strategic Rationale For personal use only • Improved patient access to plasma products through increased supply Substantial Benefits • Enhanced focus on R&D to Patients • Improved market reach, service and support leading to earlier identification, diagnosis and treatment of patients • Reduction of
Slide 24: Profit Improvement Initiatives
Profit Improvement Initiatives For personal use only Overview Breakdown of Synergies Plasma • Creating a more efficient combined • Detailed integration plan developed Collection (1/3) plasma collection network • Synergies expected to be realised progressively over three years • Optimise manufacturin
Slide 25: Funding
Funding For personal use only • Up-front cash purchase price and transaction costs funded through mix of equity ~50%, available cash ~11% and new debt ~39% • Institutional equity placement raised A$1,747m • Share purchase plan raised A$145m • Proceeds from equity raising used to purchase US$1,600m (
Slide 26: Regulatory Process
Regulatory Process For personal use only • Merger between two of the larger global manufacturers of plasma therapies • The transaction will require regulatory approvals including, among others, approval by the US Federal Trade Commission (FTC) which has requested additional information about the tra
Slide 27: Group Outlook for FY2009
Group Outlook for FY2009 For personal use only Foreign Exchange (post tax) FY09 Est. Translation* +ve $125m-$160m at 13 October 08 rates Transaction Nil USD/CHF ~1.11 Total +ve $125m – $160m Net profit after tax NPAT FY2009 at constant currency** $810m - $850m Est. foreign currency NPAT impact +ve $
Slide 28: Annual General Meeting Appendix
For personal use only CSL Limited Annual General Meeting Appendix
Slide 29: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Translation sensitivity to 1% movement in key currency pairs For personal use only Translation impact - 9 months to June ‘09 NPAT 13 Oct 1% rate change Rates 9 months to June ‘09 • AUD/USD* 0.68 +/- $2.2m • AUD/EUR 0.50 +/- $2.6m • AUD/CHF 0.77 +/- $2.1m $6.9m Translatio