Csl Limited · ASX:CSL
Csl — H1 2010 Earnings Presentation
29 slides from Csl's earnings presentation, Feb 17, 2010
Slide 1: CSL Limited 2009/10 Half Year Result
CSL Limited 2009/10 Half Year Result 17 February 2010
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 $2.3 billion EBIT $796 million (up 37% at constant currency) Effective tax rate 24% NPAT $617 million up 23% (up 32% at constant currency) R&D investment $147m Operating cashflow $491 million up 10% Strong balance sheet On market share buyback 86% complete EPS 106.
Slide 4: Highlights - Operational
Highlights - Operational Australian Fractionation Agreement to 2017 Berinert® • US FDA marketing approval • European MRP complete • Australian TGA & Health Canada approval Hizentra™ - application to US FDA Afluria • US FDA approves for use in paediatric population • Agreement with Merck & Co., Inc.,
Slide 5: Outlook for FY2010 - no change
Outlook for FY2010 - no change At current exchange rates • Net profit after tax $970m - $1,070m At FY 08/09 exchange rates • Revenue $4.9bn – $5.2bn • R&D ~$320m - $340m • Net profit after tax* $1,160m - $1,260m (Up 14-24% on FY2009 underlying operational profit) Outlook statements are subject to: M
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$1,545m (A$1,789m) up 10% at CC* EBITDA margin ~35% Optimizing product mix – take up of Privigen® & Vivaglobin® Growth in emerging markets & specialty products Agreement with GSK for distribution of plasma therapies in Russia US FDA approves prophylaxis use of Helixate® for child
Slide 8: CSL Behring – Product sales up 10% in CC terms
CSL Behring – Product sales up 10% in CC terms US$1,545m 1,600 US$1,406m Other 1,400 Immuno- 1,200 globulins 1,000 Wound H 800 Critical 600 Care 400 pdCoag 200 Helixate 0 Dec 08 Sales for the 6 month period Dec 09 8
Slide 9: CSL Behring – Product sales, Geographic split
CSL Behring – Product sales, Geographic split Sales for the 6 Month period ended Dec 09 – US$1,545m RoW 12% Japan 6% USA 42% Europe pdCoag 40% Helixate 9
Slide 10: Immunoglobulins
Immunoglobulins 650 US$574m 600 Highlights US$531m 550 500 Immunoglobulin up 9% at CC 450 Immuno - Growth 400 350 globulin • Mix – Privigen®, Vivaglobin® 300 • Vol - Privigen®, Vivaglobin®, 250 Rhophylac® 200 • Growth in Canada, EU and 150 Brazil 100 50 Specific IG 0 Dec 08 Dec 09 Sales for the 6 mo
Slide 11: Critical Care
Critical Care 350 Highlights US$307m 300 US$280m Up 8% at CC Specialty Albumin growth 250 Critical Care Volume across geographies 200 Strong contribution and growth in 150 specialty products such as, Haemocomplettan® P, 100 Albumin Berinert® P and Beriplex® P/N 50 0 Dec 08 Dec 09 Sales for the 6 mon
Slide 12: Haemophilia
Haemophilia 600 Highlights US$530m US$480m Up 10% in CC terms 500 PdCoag 400 pdCoag • Strong US demand for Humate • Central European ITT increase 300 • Canada tender ramp up Helixate® 200 Helixate • Strong demand in US 100 • Western European tender wins • Canada tender ramp up 0 Dec 08 Dec 09 Sales
Slide 13: Plasma Proteins Strategy
Plasma Proteins Strategy Specialty Products Extend and develop new registrations and new markets: Other • Berinert® P Inf ram • Zemaira® arg C1 Est. • Riastap® ina REVENUE PER LITRE* lP • Cytogam® rod Fibrinogen uc • Beriplex® P/N • Rhophlylac® ts PCC • Identify new plasma-derived opportunities Fact
Slide 14: CSL Behring Outlook for FY2010
CSL Behring Outlook for FY2010 Sales growth in USD approx. ~10% at const. currency • Leverage the three product IG portfolio • Hizentra™ (SCIG 20%) US FDA action date 1H 2010 • US IG sales impacted by market dynamics US Healthcare reform – watching brief 14
Slide 15: CSL Biotherapies - Financial
CSL Biotherapies - Financial Sales A$528m up 31% Revenues from H1N1 $160m GARDASIL® Australia • Successful conclusion of catch-up programs • Ongoing Australian/NZ cohort ~$30-35m pa Influenza sales $91m, up 22% • Growth in US and Germany 15
Slide 16: CSL Biotherapies - Operational
CSL Biotherapies - Operational Australian domiciled businesses merged to form CSL Biotherapies Aust. Fractionation Agreement to 31 December 2017 Afluria® distribution agreement with Merck in USA Pandemic Influenza vaccine (H1N1), Panvax® • Successful development and registration of vaccine • Signifi
Slide 17: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Segment EBIT $52m HPV royalties $58m • Merck submits data to the US FDA related to the use of GARDASIL® in women aged 27 – 45 • Outlook for HPV royalties FY 2010 ~$120m CAM3001 (GM-CSFRα) • Phase I in Rheumatoid Arthritis complete • Medimmume/AstraZeneca to commen
Slide 18: R&D Regulatory Progress
R&D Regulatory Progress Privigen® - plant approved Berinert® P (C1 esterase inhibitor) • US & Australian approval • Canada – application under review Beriate® approved in Russia RiaSTAP™ - US & German approval Hizentra (IgPro20) • US submitted in April, Action date Q1 2010 • EMEA submission 1H 2010
Slide 19: Financial Detail
Financial Detail
Slide 20: 1H 2010 Operational Profit – up 46% on 1H09
1H 2010 Operational Profit – up 46% on 1H09 FX impact $663m +46% Reported NPAT $617m Foreign currency* -ve $46m Non op. NPAT at constant currency $663m $454m H1N1 sales HPV royalties Australian Gardasil® programs Dec 08 Dec 09 NPAT for the 6 month period * Based on 1H09 exchange rates 20
Slide 21: Strong Financial Fundamentals
Strong Financial Fundamentals 1H10 1H09 % Cashflow from operations $491m $445m +10% Net interest income $ 15m $ 14m Capital expenditure $120m $133m Dec 09 Jun 09 Cash & Equivalents $956m $2,528m Interest bearing liabilities $459m $ 718m Inventory turns 1.5 1.6 Days debtors 63 60 21
Slide 22: Capital Management
Capital Management On Market Buyback Commenced 23 June 2009 • 12 month window to complete • Up to 54.9m shares, ~ 9% of issued capital As at 17 February 2010 • ~47 million repurchased for ~$1.5 billion • ~86% complete 22
Slide 23: FX Impact on FY2010 Guidance
FX Impact on FY2010 Guidance* Foreign Exchange (post tax) FY10 Est. Translation -ve $100m Transaction -ve $80m – $90m Total -ve $180m – $190m Net profit after tax NPAT FY2010 at constant currency $1,160m - $1,260m Up 14-24% on FY09 underlying operational profit Est. foreign currency NPAT impact -ve
Slide 24: Phasing 1H v 2H
NPAT Phasing Phasing 1H v 2H Panvax® (H1N1) CSL Behring sales pull forward Influenza vaccine seasonality R&D phasing Behring transaction FX 24
Slide 25: CSL Growth Strategy
CSL Growth Strategy Market Royalties & Novel Development Licensing Products HPV Biotech Influenza H1N1 rCoag Privigen® Pro20 ISCOMATRIX® CSL 360 Specialty products adjuvant Plasma RiaSTAP™ Zemaira® Technology rHDL Cytogam® vWF partnering Beriplex® etc Expanded geographies Global Specialty Bio- pharm
Slide 26: Appendix
Appendix
Slide 27: Group Results
Group Results Half year ended December December December Change 2009 2008 % A$m A$m Sales 2,317.4 2,206.7 Other Revenue 97.6 158.2 Total Revenue 2,415.0 2,364.9 2% Earnings before Interest, Tax, Depreciation & Amortisation 874.4 701.5 25% Depreciation/Amortisation 78.3 75.3 Earnings before Interest
Slide 28: CSL Behring Sales
CSL Behring Sales Half year ended December 1H09 1H10 1H10 Change USD$M USD$M USD$M % CC rFVIII 220 247 246 12 pdCoag 260 283 282 8 Specialty Critical Care 146 161 156 7 Albumin 133 147 144 8 Wound Healing 43 50 46 7 Immunoglobulins 451 494 492 9 Specific IG 80 80 80 - Other Product Sales 21 42 41 -
Slide 29: Foreign Exchange Translation Sensitivity 2H10
Foreign Exchange Translation Sensitivity 2H10 NPAT FY2010 at current FX rates $970m - $1,070m • 1% movement in key currency pairs impacts guidance as follows - Current 1% chg AUD/USD* 0.90 +/- $1.2m AUD/EUR 0.60 +/- $2.0m AUD/CHF 0.92 +/- $1.6m • Table shows full 6 month impact * Includes HPV Royalt