Clinigen Group plc

Clinigen — FY2020 Earnings Presentation

41 slides from Clinigen's earnings presentation, Sep 17, 2020

  1. Slide 1: Double Digit Organic EBITDA Growth Delivered

    CLINIGEN DOUBLE DIGIT ORGANIC EBITDA GROWTH DELIVERED PLATFORM IN PLACE FOR ACCELERATED GROWTH 17 SEPTEMBER 2020

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to,

  3. Slide 3: Scalable Platform Tapping into Underserviced Markets

    SCALABLE PLATFORM TAPPING INTO UNDERSERVICED MARKETS Supporting delivery of sustainable growth Pharmaceutical and Exclusive global client Owned Licensed biotech clients supply agreements products products ‘HCPs’ are Healthcare Professionals. Number of pharmaceutical and biotech clients for year ende

  4. Slide 4: © Copyright Clinigen Group plc. All rights reserved

    © Copyright Clinigen Group plc. All rights reserved

  5. Slide 5: © Copyright Clinigen Group plc. All rights reserved

    © Copyright Clinigen Group plc. All rights reserved

  6. Slide 6: © Copyright Clinigen Group plc. All rights reserved

    © Copyright Clinigen Group plc. All rights reserved

  7. Slide 7: Pipeline opportunities = Assets

    Note: Pipeline opportunities = Assets © Copyright Clinigen Group plc. All rights reserved

  8. Slide 8: 'Joining-the-Dots' in Practice

    ‘JOINING-THE-DOTS’ IN PRACTICE © Copyright Clinigen Group plc. All rights reserved

  9. Slide 9: Continuing Strong Track Record of Growth

    CONTINUING STRONG TRACK RECORD OF GROWTH 65.6p (+20%) 54.4p 22% CAGR GROWTH IN EPS (+20%) 45.4p 41.3p (+10%) (+24%) 33.4p (+30%) 25.6p 22.8p (+12%) (+30%) 17.5p (+31%) 13.4p FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CAGR growth covers the eight year period between IPO in FY12 and FY20. © Copyrigh

  10. Slide 10: Organic Net Revenue Growth Guidance and Assumptions

    ORGANIC NET REVENUE GROWTH GUIDANCE AND ASSUMPTIONS Net revenue (£m) Assumptions ▪ Proleukin revitalisation within new indications would lead to above upper end growth guidance achieved ▪ Onboarding of Erwinase commencing in FY21 with revenues from FY22 ▪ Revenue synergies across the Group leading t

  11. Slide 11: Right Medicine | Right Patient | Right Time

    GLINIGEN RIGHT MEDICINE | RIGHT PATIENT | RIGHT TIME

  12. Slide 12: Adapted Strategies to Mitigate COVID-19 Risk

    ADAPTED STRATEGIES TO MITIGATE COVID-19 RISK © Copyright Clinigen Group plc. All rights reserved

  13. Slide 13: Full Digitisation: A Critical Strategic Focus

    FULL DIGITISATION: A CRITICAL STRATEGIC FOCUS © Copyright Clinigen Group plc. All rights reserved

  14. Slide 14: Proleukin: Potential Opportunities

    PROLEUKIN: POTENTIAL OPPORTUNITIES Patient numbers refer to 2019 in the US. Source: Kantar CancerMPact data and management information. © Copyright Clinigen Group plc. All rights reserved

  15. Slide 15: Erwinase: Maximising Potential

    ERWINASE: MAXIMISING POTENTIAL ▪ Indicated for paediatric patients with Acute Lymphoblastic leukaemia (ALL) who have developed hypersensitivity to E. coli-derived asparaginase ▪ Estimated population of ALL patients eligible for Erwinase treatment of 3,500 (c.1,000 in US) ▪ Established commercial pro

  16. Slide 16: Financial Highlights

    FINANCIAL HIGHLIGHTS Year ended 30 June % Growth Adjusted results1 2020 2019 Reported Constant Organic6 (£m) (£m) currency5 Gross revenue 504.3 456.9 10% 10% 4% Net revenue2 466.2 407.0 15% 15% 8% Gross profit3 220.0 182.3 21% 21% 10% EBITDA4 131.0 100.8 30% 31% 13% EBITDA4 as % of net revenue 28.1%

  17. Slide 17: Divisional Analysis

    DIVISIONAL ANALYSIS Year ended 30 June 2020 (£m) Commercial Unlicensed Clinical Adjusted results1 Medicines Medicines Services Central Group Gross revenue 156.7 197.0 162.2 (11.6) 504.3 Growth % 42% (4)% 15% 10% Net revenue2 156.7 158.9 162.2 (11.6) 466.2 Reported growth % 42% 2% 15% 15% Organic6 gr

  18. Slide 18: Cash Flow Materially Improved in H2

    CASH FLOW MATERIALLY IMPROVED IN H2 131.0 Uses of cash flow (0.6) £m Product acquisitions 58.4 Capex 23.0 (34.9) Dividend 9.2 Acquisition & restructuring costs 4.3 3.5 64.8 (23.9) Other (0.1) (10.3) Total 94.8 Financed by: Free cash flow 64.8 Increase in net debt 30.0 Total 94.8 Adjusted Joint Worki

  19. Slide 19: Healthy Liquidity, Focused on Debt Paydown

    HEALTHY LIQUIDITY, FOCUSED ON DEBT PAYDOWN Working capital Net debt to end-FY21 at similar level to FY20 after peaking in Net debt (pre IFRS 16) H1 post $89.5m CSM pay out £361m Net debt (pre IFRS 16) inc CSM consideration £305m Indicative range (as at 17 September 2020 £252m £288m £192m Small degre

  20. Slide 20: FY21 Guidance

    FY21 GUIDANCE Organic net revenue ▪ Lower end of medium term target range of 5% – 10% due to COVID-19 and Foscavir generic. Growth growth expected to be H2 weighted given COVID-19 impact and timing of new programs and product shipments ▪ Clinical Services outlook improved with H1 trending well H1 im

  21. Slide 21: Double Digit Delivery; Platform in Place for Accelerated Growth

    DOUBLE DIGIT DELIVERY; PLATFORM IN PLACE FOR ACCELERATED GROWTH ▪ Good execution leading to strong organic growth, in spite of COVID -19 ▪ Current trading in line with market expectations ▪ Strong pipeline of opportunities in Clinical Services and Unlicensed Medicines ▪ Moving further to broaden onl

  22. Slide 22: © Copyright Clinigen Group plc. All rights reserved

    © Copyright Clinigen Group plc. All rights reserved

  23. Slide 23: Clinical Services: Continued Investment for Future Performance

    CLINICAL SERVICES: CONTINUED INVESTMENT FOR FUTURE PERFORMANCE FY20 Highlights £m 2020 2019 Reported Organic Net revenue 162.2 141.7 15% 1% ▪ New EVP appointed, further steps on integration post earnout Gross profit 39.2 33.2 18% (4)% ▪ Direct-to-patient model in CSM a key differentiator EBITDA 22.6

  24. Slide 24: Unlicensed Medicines: Focus on BD Pipeline and Digitisation

    UNLICENSED MEDICINES: FOCUS ON BD PIPELINE AND DIGITISATION FY20 Highlights £m 2020 2019 Reported Organic Net revenue 158.9 156.0 2% 3% ▪ Excellent growth in GA. Clinigen EU to maximise GA ‘on-demand’ opportunity established Gross profit 66.7 69.7 (4)% (3)% ▪ Organic net revenue and GP growth ex-Spe

  25. Slide 25: Commercial Medicines: Diversified Portfolio Mitigating Risk

    COMMERCIAL MEDICINES: DIVERSIFIED PORTFOLIO MITIGATING RISK FY20 Highlights £m 2020 2019 Reported Organic Net revenue 156.7 110.3 42% 29% ▪ Proleukin on-label usage stabilised Q3 before COVID-19 impact. Improved performance from June Gross profit 116.5 79.3 47% 29% ▪ Proleukin development ongoing wi

  26. Slide 26: Appendices

    Cue RIGHT MEDICINE | RIGHT PATIENT | RIGHT TIME APPENDICES

  27. Slide 27: Footnotes

    FOOTNOTES Adjusted results exclude amortisation of acquired intangibles and products, and other non-underlying items relating to acquisitions. Results are for the year ended 30 June. 1. Adjusted results exclude amortisation of acquired intangibles and products, and other non-underlying items relatin

  28. Slide 28: © Copyright Clinigen Group plc. All rights reserved

    © Copyright Clinigen Group plc. All rights reserved

  29. Slide 29: Strong Track Record of Growth

    STRONG TRACK RECORD OF GROWTH Adjusted net revenue Adjusted EBITDA CSM PRODUCT CORPORATE iQone ACQUISITIONS ACQUISITIONS PROLEUKIN IMUKIN £466M 41% CAGR GROWTH IN NET REVENUE (ROW) 54% CAGR GROWTH IN EBITDA QUANTUM £407M LINK IMMC TOTECT £301M £266M £271M SAVENE IDIS CARDIOXANE ETHYOL £164M GROUP LI

  30. Slide 30: Organic Summary

    ORGANIC SUMMARY Net revenue by operation Year ended 30 June 2019 FX impact Acquisitions Organic 2020 Reported Constant Organic £m £m £m £m £m currency Commercial Medicines 110.3 (0.9) 15.2 32.1 156.7 42% 42% 29% Unlicensed Medicines 156.0 (1.1) 0.0 4.0 158.9 2% 3% 3% Clinical Services 141.7 1.1 18.7

  31. Slide 31: Foreign Currency Analysis

    FOREIGN CURRENCY ANALYSIS Split by currency AUD Other AUD GBP AUD ZAR ZAR GBP ZAR NET GROSS ADMIN REVENUE PROFIT USD EUR EXPENSES GBP EUR USD EUR USD © Copyright Clinigen Group plc. All rights reserved

  32. Slide 32: Foreign Currency Rates During the Year

    FOREIGN CURRENCY RATES DURING THE YEAR FX rates 30 June Average FX Rates 2019 2020 Change FX Rates 2019 2020 Change USD / GBP 1.27 1.23 (3)% USD / GBP 1.29 1.26 (3)% EUR / GBP 1.12 1.10 (2)% EUR / GBP 1.13 1.14 1% ZAR / GBP 17.83 21.37 20% ZAR / GBP 18.34 19.74 8% AUD / GBP 1.81 1.79 (1)% AUD / GBP

  33. Slide 33: Adjustments to Profit Relate to Amortisation and Acquisitions

    ADJUSTMENTS TO PROFIT RELATE TO AMORTISATION AND ACQUISITIONS Reconciliation of adjusted PBT to reported PBT Year ended 30 June 2020 2019 £m £m Adjusted profit before tax 108.5 88.3 AMORTISATION Adjustments Relating to acquired intangibles (£30.4m) and product licenses (£15.0m) Amortisation of acqui

  34. Slide 34: Effective Tax Rate of 19.8%

    EFFECTIVE TAX RATE OF 19.8% Taxation Year ended 30 June 2020 2019 Reported Adjusted Reported Adjusted £m £m £m £m £m Profit before tax 22.6 108.5 12.3 88.3 Taxation (8.9) (21.5) (7.1) (17.7) Profit after taxation 13.7 87.0 5.2 70.6 Effective tax rate 19.8% 20.0% Given the increasing proportion of ex

  35. Slide 35: Adjusted Earnings per Share Up 20%

    ADJUSTED EARNINGS PER SHARE UP 20% Basic earnings per share Year ended 30 June 2020 2019 Change Adjusted earnings £87.0m £70.6m 23% Weighted average number of shares 132.7m 129.8m 2% Adjusted basic earnings per share 65.6p 54.4p 20% Reported basic earnings per share 10.3p 4.0p Memo Shares in issue a

  36. Slide 36: Dividend

    DIVIDEND Year ended 30 June 2020 2019 Change Interim dividend 2.15p 1.95p 10% Final dividend 5.46p 4.75p 15% Total dividend 7.61p 6.7p 14% Represents cash payment of £10.1m £8.9m The final dividend will be payable on 2 December 2020 to shareholders on the register on 6 November 2020 © Copyright Clin

  37. Slide 37: Net Debt at £311.9m (2.3x Adjusted EBITDA)

    NET DEBT AT £311.9M (2.3X ADJUSTED EBITDA) Balance sheet analysis 30 Jun 30 Jun 2020 2019 £m £m GOODWILL & INTANGIBLES Goodwill & intangibles 788.3 811.9 £376.1m relates to goodwill, £208.4m to products, £172.5m relates to acquisitions and £24.6m to software Property, plant & equipment 33.8 13.6 INV

  38. Slide 38: Amortisation

    AMORTISATION Year ended 30 June 2020 2019 Change Software £4.2m £1.1m >100% Internally developed product licenses £0.5m £0.4m 25% Amortisation included in adjusted results £4.7m £1.5m >100% Acquired intangibles on business combinations £30.4m £31.1m (2)% Acquired product licenses £15.0m £6.7m >100%

  39. Slide 39: IFRS 16 Impact

    IFRS 16 IMPACT Estimated impact on P&L £m FY19 FY20 FY21 FY22 Administrative expenses 3.7 4.0 3.9 3.7 EBITDA 3.7 4.0 3.9 3.7 Depreciation (3.2) (3.4) (3.8) (3.5) Operating profit 0.5 0.6 0.1 0.2 Finance costs (0.5) (0.6) (0.7) (0.6) Profit before tax 0.0 0.0 (0.6) (0.4) Estimated impact on balance s

  40. Slide 40: Capital Allocation Framework

    CAPITAL ALLOCATION FRAMEWORK Formalisation of capital allocation policy Reinvest for organic Maintain a progressive growth dividend policy Maintain strong Aim to prioritise use of cash balance sheet and maximise shareholder whilst building value global scale and capabilities To paydown and maintain

  41. Slide 41: Strategy for Growth

    STRATEGY FOR GROWTH Global market leader in specialist supply, labelling, packaging, distribution and management of quality-assured comparator medicines and services to clinical trials and Investigator Initiated Trials (IITs) Three strategic pillars: 1. Establish Clinigen with customer compounds ear

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