Csl Limited · ASX:CSL
Csl — H1 2011 Earnings Presentation
26 slides from Csl's earnings presentation, Feb 16, 2011
Slide 1: CSL Limited 2010/11 Half Year Result
CSL Limited 2010/11 Half Year Result 16 February 2011
Slide 2: Disclaimer
Disclaimer Forward looking statements The materials in this presentation speak only as of the date of these materials, and include forward looking statements about CSL’s financial results and estimates, business prospects and products in research, all of which involve substantial risks and uncertain
Slide 3: Highlights - Financial
Highlights - Financial Total sales $2.1 billion (Underlying1 growth 7%) NPAT $500 million • Includes $47 million FX headwind2 R&D expenditure $143m EBIT $636 million Cashflow from operations $408 million On market share buyback 33% complete Cash on hand $719 million EPS 91.5 cents Interim dividend 3
Slide 4: Highlights - Operational
Highlights - Operational New large scale biotech facility under construction in Australia Berinert® - now licensed in 30 countries Privigen® • Solid demand - transition from Carimune® well advanced Hizentra® • US FDA approval to extend shelf life to 24 months • Transition from Vivaglobin® well progr
Slide 5: Outlook for FY2011
Outlook for FY2011 Affirming guidance at top of previous guidance range At current exchange rates* • Net profit after tax $900m - $950m At FY 09/10 exchange rates • Net profit after tax* $980m - $1,030m (Growth ~10% on FY10 operational profit) Outlook statements are subject to: Material price and vo
Slide 6: Human Health Business Unit Performance
Human Health Business Unit Performance • CSL Behring • CSL Biotherapies • Intellectual Property Licensing • CSL Research & Development
Slide 7: CSL Behring
CSL Behring Sales US$1,611m (A$1,742m) up 8% at CC* EBITDA margin ~36% in USD Optimizing product mix • Transition to Privigen® & Hizentra® advanced • Privigen now ~60% of IG portfolio US FDA approval to extend shelf life of Hizentra ® from 18 to 24 months Capacity expansion for Hizentra® & Privigen®
Slide 8: CSL Behring – Product sales up 8% in CC terms
CSL Behring – Product sales up 8% in CC terms $M US$1,611m US$1,545m Immuno- globulins Wound H Critical Care pdCoag Helixate Dec 09 Sales for the 6 month period Dec 10 8
Slide 9: CSL Behring – Product sales, Geographic split
CSL Behring – Product sales, Geographic split* Sales for the 6 Month period ended Dec 10 – US$1,611m RoW 11% Japan 7% USA 45% Europe pdCoag 37% Helixate * Excludes CSL Behring products sold in Asia by CSL Biotherapies 9
Slide 10: Immunoglobulins
Immunoglobulins US$686m Highlights US$574m Immunoglobulin up 22% at CC Growth arising from: • Volume ~half • Privigen® demand Liquid • France • Competitor withdrawal • Sales mix ~quarter SCIG • Transition to Privigen® • SCIG ~quarter Dec 09 Dec 10 Sales for the 6 month period • Hizentra® demand * In
Slide 11: Critical Care
Critical Care US$M US$351m US$358m Highlights Asia Up 5% at CC, incl. Asian sales* Albumin Albumin • US & Canada volume growth • Southern European market dynamics Specialty Critical Specialty Critical Care Care • US growth with Berinert® P launched Dec 09 Dec 09 Dec 10 Sales for the 6 month period *
Slide 12: Haemophilia
Haemophilia Highlights 600 US$530m Down 2% at CC US$496m 500 PdCoag • Volume up 5% 400 pdCoag • Inventory reduction in US • Europe – end of several ITT 300 patient programs • Price pressure - Europe 200 Helixate Helixate® 100 • US & European growth • Canada Safety Stock build 0 included in PCP Dec 0
Slide 13: CSL Biotherapies
CSL Biotherapies Sales A$375m Prior period included $160m H1N1 sales GARDASIL® • Aust. & NZ catch up programs drawn to a close • Australian TGA approval for males up to age 26 for the prevention of external genital lesions Influenza sales $82m flat at CC • US delays and non-participation in paediatr
Slide 14: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Segment Revenue $50m HPV royalties $45m ISCOMATRIX ® adjuvant • Broad research license and option agreement finalised with Pfizer CAM3001 (GM-CSFRa) • Medimmume/AstraZeneca commenced Phase II study in Rheumatoid Arthritis Feb 2010 Periodontal disease vaccine • Res
Slide 15: R&D Regulatory Update
R&D Regulatory Update Privigen® • IgLab Module2 - submitted to US FDA Q4 2010 • European Phase III study in CIDP initiated Hizentra® (IgPro20 sc) • Review in progress: EMA, Switzerland, Canada RiaSTAP™ (Fibrinogen) • Positive European MRP completion in July 2010 Berinert® P (C1 esterase inhibitor) •
Slide 16: Financial Detail
Financial Detail
Slide 17: 1H 2011 Underlying Profit
1H 2011 Underlying Profit FX impact $663m H1N1 $547m Reported NPAT $500m FX Foreign currency* -ve $47m NPAT at constant currency $547m Underlying $531m Notable items H1N1 sales Gardasil® Health care reform Competitor withdrawal Dec 09 Dec 10 NPAT for the 6 month period * Based on 1H10 exchange rates
Slide 18: Strong Financial Fundamentals
Strong Financial Fundamentals 1H10 1H11 Cashflow from operations $491m $408m Net interest income $15m $11m Capital expenditure $120m $84m Jun 10 Dec 10 Cash & Equivalents $1,001m $720m Interest bearing liabilities $459m $384m Inventory turns 1.5 1.6 Days debtors 69 63 18
Slide 19: Capital Management On Market Buyback
Capital Management On Market Buyback $900m on-market share buyback* Commenced 13 September 2010 • 12 month window to complete As at 16 February 2011 • ~8.9 million shares repurchased for $300 million • ~33% complete * CSL reserves the right to suspend, terminate or extend the buyback at any time 19
Slide 20: FX Impact on FY2011 Guidance
FX Impact on FY2011 Guidance* Foreign Exchange (post tax) FY10 Est. Translation ~ $(60)m Transaction ~ $(20)m Total ~ $(80)m Net profit after tax outlook NPAT FY2011 at constant currency $980m - $1,030m Growth ~10% on FY10 underlying operational profit Est. foreign currency NPAT impact ~ $(80)m NPAT
Slide 21: FY2011 Outlook in Constant Currency
FY2011 Outlook in Constant Currency Underlying Profit Growth ~10% $187m $122m FY2011 considerations FY2010 FY2011 • Growth in immunoglobulin and albumin NPAT Forecast $980m • Continued transition to Privigen ® & $931m to Growth (H1N1)* Hizentra® $1,050 ~10% • Continued growth in specialty products U
Slide 22: CSL Overview
CSL Overview Core Business Other Value-Creating Businesses Breakthrough Specialty Vaccine technologies Medicines Products Influenza vaccine Immuno- Haemophilia globulins Products
Slide 23: Appendix
Appendix
Slide 24: Group Results
Group Results Half year ended December Dec Dec Dec Dec Change 2010 $ Millions 2009 2009 2010 % CC** Reported Underlying* Reported Sales 2,317.4 2,157.3 2,116.3 2,300.4 7.0% Other Revenue / Income 97.6 97.6 74.6 78.2 Total Revenue / Income 2,415.0 2,254.9 2,190.9 2,378.6 Earnings before Interest, Tax
Slide 25: CSL Behring Sales
CSL Behring Sales Half year ended December 1H10 1H11 1H11 USD$M USD$M USD$M CC rFVIII 247 238 250 pdCoag 283 258 271 Specialty Critical Care 161 165 174 Albumin 147 143 144 Wound Healing 50 50 47 Immunoglobulins 574 686 699 Other Product Sales 42 34 34 Total Product Sales 1,504 1,574 1,622 Other sal
Slide 26: Foreign Exchange Translation Sensitivity 2H11
Foreign Exchange Translation Sensitivity 2H11 NPAT FY2011 at current FX rates ~$950m • 1% movement in key currency pairs impacts guidance as follows - Current 1% chg AUD/USD* 1.00 +/- $0.7m AUD/EUR 0.74 +/- $1.6m AUD/CHF 0.97 +/- $2.5m • Table shows full 6 month impact * Includes HPV Royalties 26