Ipsen Sa · EURONEXT:IPN
Ipsen Sa — FY2012 Earnings Presentation
36 slides from Ipsen Sa's earnings presentation, Feb 28, 2013
Slide 1: Ipsen 2012 Financial Results
Ipsen 2012 Financial Results Full Year 2012 Results - JP Morgan Paris Roadshow - February 28, 2013 IPSEN pour nom de la société - 07/04/2011 / page 1
Slide 2: Disclaimer
Disclaimer 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 involve known an
Slide 3: Safe Harbor
Safe Harbor The Group operates in certain geographical regions whose governmental finances, local currencies or inflation rates could be affected by the current crisis, which could in turn erode the local competitiveness of the Group’s products relative to competitors operating in local currency, an
Slide 4: Agenda
Agenda 1 2012, healthy performance in a challenging year 2 2012 detailed financial performance 3 Business and strategy update 4 2013 financial objectives and closing remarks 4 Ipsen – FY 2012 Results - JP Morgan Paris Roadshow - February 28, 2013
Slide 5: 2012, healthy performance in a challenging year
2012, healthy performance in a challenging year Marc de Garidel, Chairman & CEO
Slide 6: In 2012, Ipsen beat sales and profitability objectives
In 2012, Ipsen beat sales and profitability objectives 2012 guidance 2012 actuals Specialty Care - Drug sales* ~ +10.0% +11.3% Primary Care - Drug sales* ~ (15.0%) (13.2%) Recurring Adjusted** operating margin ~ 15.0% 16.1% The above objectives were set at constant currency Strong operating pe
Slide 7: In 2012, strong specialty care performance, up 11.3%
In 2012, strong specialty care performance, up 11.3% Drug Sales - FY 2012 in million euros - % excluding foreign exchange impacts ® +5.9% ® +13.9% Specialty care €862.5m Specialty care ® +17.1% +11.3% ® +4.5% ® Drug sales +5.1% €1,187.0m ® +3.4% ® +6.6% Primary care Primary care ® -18.5% French prim
Slide 8: A successful franchise-based organization showing accelerating growth
A successful franchise-based organization showing accelerating growth Franchise y-o-y growth at constant perimeter +13.5% +11.3%+13.9% +5.9% +8.5% +5.0% * ** Specialty care up 11.3% with all franchises delivering strong and sustainable volume growth All figures exclude foreign exchange impacts *Excl
Slide 9: Group's sales growth driven by all regions
Group’s sales growth driven by all regions G5 growth hampered by French primary care decline GROUP SALES growth : +5.1% (incl. Drug related sales) In million euros At constant currency : +3.3% ROW Strong volume growth across the region 1,219.5 1,159.8 North America +18.2% +14.1% Continued penetr
Slide 10: Growth driven by emerging markets
Growth driven by emerging markets Growth • Very successful OTC campaign on Smecta® and Tanakan® Russia c.+20% • Very strong performance of Decapeptyl® and Dysport®, market leader Brazil • Very strong performance of Dysport® both in c.+23% therapeutic and aesthetic indications, market leader • Strong
Slide 11: Focus on Russia
Focus on Russia Ipsen outperforming Russian pharma Ipsen Russia showing fast and accelerating market growth Net sales at constant FX rate [Meur] Base 100 comparison Ipsen Russia growth vs market Ipsen Russia 134 +18% CAGR +14% 10-12 75.7 +16 pts 64.1 +14% 56.3 122 SC 114 Russian pharma market 111 PC
Slide 12: In 2012, an outstanding performance in Europe, up 7.6% excluding Primary care France
In 2012, an outstanding performance in Europe, up 7.6% excluding Primary care France Examples Growth in Nordic countries: c.+14% Growth : c.+14% Supported by very strong Supported by strong performance of performance of Decapeptyl® and Decapeptyl® and Somatuline® Somatuline® Growth : c.+21% Poland:
Slide 13: Sales growth in 2012: Ipsen performs well in the pharma and biotech markets
Sales growth in 2012: Ipsen performs well in the pharma and biotech markets 20% 18% Big Pharmas 15% Peers&Biotechs Ipsen 11% 10% 9% 8% 7% 7% 7% 7% 5% 5% 5% 3% + 4,4% 3% 0% -2% - 3,7% -5% -3% -3% -4% -7% -8% -10% -10% -11% -15% -17% -17% -20% Ipsen FY12 growth at constant currency 3.3% 13 Ipsen – FY
Slide 14: Key clinical development milestones achieved in 2012
Key clinical development milestones achieved in 2012 Clinical development phase Progress Molecule/Drug Phase I Initiated and completed BN 82451 Huntington Disease Phase II Initiated Tasquinimod 4 POCs (hepato-cellular, ovarian, renal cell and gastric carcinomas) Phase II Initiated Tasquinimod
Slide 15: Ipsen adapting to a challenging environment in French primary care
Ipsen adapting to a challenging environment in French primary care French primary care sales down 29.7% French primary care restructuring in 2012 plan (29.7)% >175 positions, mainly commercial € 175.7m Price €(14.4)m Volume (c.2/3 of total French primary care €(37.8)m sales force) € 123.5m FY 2011
Slide 16: Exit of hemophilia franchise
Exit of hemophilia franchise OBI-1 + Milford facility IB1001 Asset Purchase Agreement* (APA) signed with APA signed with Cangene Baxter International Transaction closed Deal terms: Deal terms: – $50 million upfront – $5.9 million upfront – Up to $135 million in potential additional – Up to
Slide 17: Transformation progressed with new orientation in French primary care and sale of hemophilia
In 2012, transformation progressed with new orientation in French primary care and sale of hemophilia 2011 2012 2013 2014 2015 Define strategy R&D « PoC » machine Somatuline® New TASQ filed in Inspiration option Merge R&D implemented device rolled out globally Europe assessment Reinforce onc
Slide 18: 2012 detailed financial performance
2012 detailed financial performance Susheel Surpal, CFO
Slide 19: 2012: Strong operating performance in light of French primary care headwind
2012: Strong operating performance in light of French primary care headwind Dynamic and sustained specialty care sales growth of +11.3%1 Strong French primary care sales decrease (-29.7%) Reported Operating Income impacted by new organization of French primary care commercial operations Recurring Ad
Slide 20: Other Revenues
Other Revenues (*) In million euros Other Revenues Evolution: : +14.9% €57.9m Royalties Received €50.4m 11.9 Increased royalties from the Group’s partners +30.8% 9.1 Milestones +6.8% Stemming from the Group’s main partnerships (Medicis, Galderma, Menarini…) 25.1 23.5 Other revenues Increased r
Slide 21: Main P&L items: above operating income
Main P&L(*) items: above operating income R&D (€m) +5.9% COGS (€m) +2.2% 248,6 234.6 Industrial +14,9% 3.4%(1) development 3.0%(1) 249.2 254.8 +3.9% 16.6%(1) 16.4%(1) Drug related 21.5%(1) R&D 20.9%(1) 2011 2012 2011 2012 Sales & Marketing costs (€m) G&A (€m) +11.6% -0.6% 473.5 424.4 +10.9% 4.2%(1)
Slide 22: From reported to Recurring adjusted Operating Income
From reported to Recurring adjusted Operating Income (*) 2011 3.4 In million euros 85.2 197.5 3.1 36.5 3.5 72.6 Reported ExCom Restructuring PPA Impairment Others Recurring EBIT adjusted EBIT + 58.3% -0.7% As reported Recurring adjusted 2.4 19.8 0.7 63.1 196.0 114.8 2012 Reported Restructuring PPA I
Slide 23: Main P&L items: Below operating income
Main P&L(*) items : Below operating income Financial Result (€m) Effective tax rate Recurring Reported Recurring Reported adjusted adjusted 19.3% 20.3% 23.2% -0.7 5.5 -2.6% 2011 2012 2011 2012 Net income from discontinued operations (€m) Consolidated result (€m) 2011 2012 EPS2: €1.85 (5.9)% EPS2: €1
Slide 24: Balance sheet evolution
Balance sheet evolution ASSETS LIABILITIES 2011 2012 2011 2012 Goodwill 299,5 298,2 Capital and reserves 1 012,8 924,2 Investments in associates 0,0 0,0 Minority interest 2,6 2,0 Property, plant and 271,7 281,8 Total equity 1 015,4 926,3 equipment Other intangible assets 135,6 129,2 Other financial
Slide 25: Cash flow generation
Cash flow generation (*) In million euros 2011 2012 Cash flow from operating act. before changes in working cap. 189.5 175.3 Net change in other operating assets & liabilities (20.7) (10.3) Net cash flow generated by operating activities 168.8 165.0 Purchase of tangible and intangible assets (95.2)
Slide 26: 2012: Strong operating performance in light of French primary care headwind
2012: Strong operating performance in light of French primary care headwind Dynamic and sustained specialty care sales growth of +11.3%1 Strong French primary care sales decrease (-29.7%) Reported Operating Income impacted by new organization of French primary care commercial operations Recurring Ad
Slide 27: Business and Strategy update
Business and Strategy update Marc de Garidel, Chairman & CEO
Slide 28: Business and Strategy update on 2013 milestones
Business and Strategy update on 2013 milestones Sustainable franchise and geographical growth A Accelerate 2013 strategy D milestones B US potential execution C Replenish early-stage and execute on late-stage pipeline 28 Ipsen – FY 2012 Results - JP Morgan Paris Roadshow - February 28, 2013
Slide 29: A: Levers to drive franchise and geographical growth
A: Levers to drive franchise and geographical growth Uro- Oncology Endocrinology Neurology • New indications/Innovation • Geographic expansion • Life cycle management • Partnerships Leverage franchises through external acquisitions/in-licensing 29 Ipsen – FY 2012 Results - JP Morgan Paris Roadshow -
Slide 30: B: US operations to drive Group profitability
B: US operations to drive Group profitability By end of 2013 Checkpoint: time Assessment of transformation progress 2015/2016 Leveraging structure with new indications May 2012 FY 2012 2014/2015 New US Dysport® still challenging Expected breakeven* organization Endocrinology Business Imple
Slide 31: C: Critical clinical data expected in 2013/2014
C: Critical clinical data expected in 2013/2014 Clinical development Expected phase Expected data timing Molecule/Drug Phase III Topline results H2 2013 Dysport® Next Generation – CD – Europe Phase III PFS data Q4 2013 Tasquinimod in mCRPC Phase III Topline results Q4 2013 Somatuline® Functioning NE
Slide 32: D: Appointment of Christel Bories as Deputy CEO
D: Ipsen gears up to accelerate strategy execution with the appointment of Christel Bories as Deputy CEO A true expertise and significant experience in company transformation External view on the company and the industry Shares Ipsen values Motivation, curiosity, open-mindedness 32 Ipsen – FY 2012 R
Slide 33: 2013 Financial objectives & closing remarks
2013 Financial objectives & closing remarks Marc de Garidel, Chairman & CEO
Slide 34: 2013 financial objectives
2013 financial objectives Specialty care – Drug sales Growth of +6.0% to +8.0%, year-on-year – Driven by continued and solid volume growth, in a context of increased pricing pressure and uncertainty on Increlex® supply as of today Primary care – Drug sales Decline of -8.0% to -6.0%, year-on-year – F
Slide 35: 2013, accelerating the execution of our strategy
2013, accelerating the execution of our strategy 2011 Definition and implementation of new strategy 2012 Robust performance in a challenging environment Accelerating the execution of our strategy 2013 to achieve our 2020 ambitions 35 Ipsen – FY 2012 Results - JP Morgan Paris Roadshow - February 28,
Slide 36: Thank You
Thank You