Chugai Pharmaceutical Co., Ltd. · TSE:4519

Chugai Pharmaceutical — Investor Presentation (January 2013)

49 slides from Chugai Pharmaceutical's investor presentation, Jan 30, 2013

  1. Slide 1: New Mid-Term Business Plan ACCEL 15

    New Mid-Term Business Plan “ACCEL 15*” CHUGAI PHARMACEUTICAL CO., CO LTD LTD. President & COO Tatsuro Kosaka 2013.1.30/31 ＊ACCEL15: Accelerate Continuous Creation and Evolution Leading to “Top Pharmaceutical Company”

  2. Slide 2: Forward-Looking Statements

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Forward-Looking g Statements This presentation may include forward-looking statements pertaining to the business and prospects of Chugai Pharmaceutical Co., Ltd. (the “Company”). T

  3. Slide 3: Sunrise 2012 Results

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Sunrise 2012 Results JGAAP (Japan Generally Accepted Accounting Principal) Targets in Sunrise Comparison p 2012 final year with FY 2012 391 2 billion JPY 391.2 460.0 [-68.8 billion

  4. Slide 4: Business Results During 10 Years of Strategic Alliance

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Business Results During g 10 Years of Strategic g Alliance JGAAP (Japan Generally Accepted Accounting Principal) Performance has been growing steadily since the start of the strat

  5. Slide 5: Cost Structure Since the Alliance

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Cost Structure Since the Alliance JGAAP (Japan Generally Accepted Accounting Principal) Reduction of expense ratio in response to increasing COGs Increase in expenses and headcoun

  6. Slide 6: Achievements from Strategic Alliance (R&D)

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Achievements from Strategic g Alliance(R&D) ( ) Annual sales P3～Application over 20 billion JPY (NMEs) (FY2012) Avastin j Perjeta* ((filed)) Oncology Herceptin T-DM1 (filed) area R

  7. Slide 7: Chugai's Current Strength

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Chugai’s g Current Strength g Establishment of a platform that creates seamless generation and efficient delivery of innovative drugs, based on the strategic alliance with Roche R

  8. Slide 8: Positioning of New Mid-Term Business Plan

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Positioning g of New Mid-Term Business Plan IFRS (International Financial Reporting Standards)  Period of major change for early realization of “A Top Japanese Pharmaceutical Comp

  9. Slide 9: Agenda in ACCEL 15 for Value Creation

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Agenda g in ACCEL 15 for Value Creation Further enhancing the flow of value creation by evolving and linking Chugai’s current strength Creation of value for all stakeholders < All

  10. Slide 10: Strategic Policy 1: Increase of Marketing Productivity

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Strategic g Policy y 1: Increase of Marketing g Productivity y 【Current Strengths】 【Strengths to be Further Enhanced】 High market share in strategic areas + α value addition to pro

  11. Slide 11: Main Growth Drivers during ACCEL 15

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Main Growth Drivers during g ACCEL 15 • Demonstration of superiority by ADACTA study A t Actemra • Approval for 1st line indication (DMARDs US (DMARDs-IR) IR) for RA in • Filed for

  12. Slide 12: Strategic Policy 2: Acceleration of Global Development

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Strategic g Policy y 2: Acceleration of Global Development p 【Current Strengths】 【Strengths to be Further Enhanced】 Rich Pipelines at Chugai & Roche Global Development Capability •

  13. Slide 13: Smooth Progress in Both Development and Submissions

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Smooth Progress in Both Development and Submissions Development and submissions for approval progressing smoothly Accelerated global development by multiple multinational studies

  14. Slide 14: Strategic Policy 3: Continuous Generation of Innovative Projects

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Strategic Policy 3: Continuous Generation of Innovative Projects 【Current Strengths】 【Strengths to be Further Enhanced】 World Class Innovative Drug Focus Resources on Discovery Tec

  15. Slide 15: High Productivity in Research Activities

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” High g Productivity y in Research Activities Balanced portfolio between in-house and Roche originated projects Majority of projects based on PHC concept Two projects utilizing i

  16. Slide 16: Strategic Policy 4: Further Strengthening of Management Infrastructure

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Strategic Policy 4： Further Strengthening of Management Infrastructure 【Current Strengths】 【Strengths to be Further Enhanced】 Top-Class Efficiency Among Peers More Efficient and Fl

  17. Slide 17: Strategic CF Management (Investment)

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Strategic g CF management g ((Investment)) Making aggressive investments to explore future business opportunities while aiming to grow existing strategic areas Current strength Ch

  18. Slide 18: Strategic Cash Flow Management (Return to Shareholders)

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ New Mid-Term Business Plan “ACCEL 15” Strategic cash flow management (Return to shareholders) IFRS (International Financial Reporting Standards)  Execute active investment, while increasing shareholder return  Proper

  19. Slide 19: FY2012 Consolidated Financial Overview

    FY2012 Consolidated Financial Overview CHUGAI C G PHARMACEUTICAL C C CO CO., LTD. Executive Vice President CFO Yoshio Itaya January 30/31, 2013

  20. Slide 20: Summary

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Summary  Increase in Revenues and Profits  Revenues 391.2 billion JPY (+4.7%), Operating Income 76.4 billion JPY (+22.4%) ( 22.4%)  Domestic sales increased offsetting the NHI

  21. Slide 21: Financial Overview Jan - Dec

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Year on Year Financial Overview Jan - Dec (Billion JPY) (Billion JPY) 2011 2012 Growth  Sales excl. Tamiflu As % of As % of Jan-Dec Revenues Jan-Dec Revenues % Domestic +5.6 Reve

  22. Slide 22: Sales (excl. Tamiflu) Jan - Dec

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Year on Year Sales (excl (excl. Tamiflu) Jan - Dec Sales (excl. Tamiflu) (Billion JPY) 363 2 (+8.3, 363.2 ( 8 3 +2.3%) 2 3%) 354.9 42 3 42.3 Epogin E i Mi Mircera 39.6 Overseas -1

  23. Slide 23: Tamiflu Sales Performance

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Tamiflu Sales Performance Fiscal Term Sales (Billion JPY) FY2005.12 FY2006.12 FY2007.12 FY2008.12 FY2009.12 FY2010.12 FY2011.12 FY2012.12 FY2013.12 Cases per Seasonal sentinel* Ja

  24. Slide 24: Operating Income Jan - Dec

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Year on Year Operating Income Jan - Dec (Billion JPY) 2011 2012 (Billion JPY) Growth Jan-Dec Jan-Dec % Revenues 373.5 391.2 +17.7 +4.7 Decrease in R&D exp. exp Cost of Sales 157.5

  25. Slide 25: Financial Overview Oct - Dec

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Year on Year Financial Overview Oct - Dec (Billion JPY) 2011 2012 (Billion JPY) Growth  Sales excl. Tamiflu +9.1 As % of As % of Oct-Dec Revenues Oct-Dec Revenues % Revenues 97.5

  26. Slide 26: Financial Overview Jan - Dec vs. Forecast

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview vs. Forecast Financial Overview Jan - Dec Actual Forecast on Feb. 1 (Billion JPY) 2012 2012 Achiev. Jan-Dec Jan-Dec +/- % Actual Forecast on Feb. 1 Sales excl. Tamiflu 363.2 394.1

  27. Slide 27: Impact from Foreign Exchange

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview vs. Forecast Impact from Foreign Exchange FX impact Jan - Dec FX rate to the JPY 1CHF 1EUR (Billion JPY) (vs. Forecast on Feb. 1) Assumption Jan – Dec 85.00 109.00 (as of Feb 1) -

  28. Slide 28: Balance Sheet Items (Assets)

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Actual 2012 Balance Sheet Items (Assets) (Billion JPY)  Cash and deposits +3.7 Accounts Inventories Cash and receivable -0.6  Marketable securities +40.0 +3.9 -1.9 deposits Incr

  29. Slide 29: Balance Sheet Items (Liabilities)

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Actual 2012 Balance Sheet Items (Liabilities) (Billion JPY) Income taxes payable Others Accounts  Accounts payable +24.3 payable -2.3 +1.2  Income taxes payable -2.3 +24.3 Payme

  30. Slide 30: Cash Flow Statement Jan - Dec

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview Actual 2012 Cash Flow Statement Jan - Dec (Billion JPY) Investing In esting  Cash flow from operating activities +77 3 +77.3 Operating activities activities Income before taxes a

  31. Slide 31: FY2012 Core Results

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview IFRS ＜Pro forma＞ FY2012 Core Results 2012 2012 2012 (Billion JPY) Variance Non-Core (Billion JPY) JGAAP IFRS Core Revenues 391.2 -4.6 386.6 386.6 Revenues Sales 375.2 - 375.2 375.

  32. Slide 32: 2013 Forecast Jan - Dec

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview 2013 Forecast (IFRS) 2013 Forecast Jan - Dec Actual ((Core)) Forecast ((Core)) G Growth th (Billion JPY) 2012 2013 Jan-Dec As % of Jan-Dec As % of % Revenues Revenues Revenues 386

  33. Slide 33: Sales (excl. Tamiflu) vs. 2012 Actual

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview 2013 Forecast (IFRS) Sales (excl. (excl Tamiflu) vs vs. 2012 Actual Oncology Sales (excl. Tamiflu) Avastin +11 1 +11.1 (Billion JPY) 385.5 (+22.3, +6.1%) Xeloda +3.0 Overseas 363

  34. Slide 34: Dividend Policy

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview 2013 Forecast (IFRS) Dividend Policy Policy Aiming to ensure stable profit for all shareholders and a consolidated dividend payout ratio of 50% on average to Core EPS, taking acc

  35. Slide 35: Appendix

    Appendix

  36. Slide 36: Differences in FY2012 P/L

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview ＜Pro forma＞ Differences in FY2012 P/L FY2012 Operating Profit: IFRS＜JGAAP due to up-front income (Billions of JPY) IFRS JGAAP Diff. Major causes (Impact on IFRS profit) Revenues 3

  37. Slide 37: Major Differences in FY2012 P/L -1

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview ＜Pro forma＞ Major Differences in FY2012 P/L -1 1 ①－⑤：refer to the next page Diff. in Reclassification*1 Measurement*2 (Billions of JPY) IFRS JGAAP total *1 & others*2 Revenues 386

  38. Slide 38: Major Differences in FY2012 P/L -2

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview ＜Pro forma＞ Major Differences in FY2012 P/L -2 2 Impact on IFRS Major JGAAP IFRS Contents profit (JPY) reclassification R&D Phase 4/post-marketing surveillance expenses -9.3bn Ope

  39. Slide 39: Core Operating Profit in FY2012

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview ＜Pro forma＞ Core Operating Profit in FY2012 Intangible Other IFRS (Billions of JPY) IFRS assets & eliminated Core Non-Core items business 1. Intangible/acquisition accounting item

  40. Slide 40: Opening Balance and Year-end Balance of 2012 IFRS BS - Assets

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview ＜Pro forma＞ Opening Balance and Year-end Year end Balance of 2012 IFRS BS - Assets (Billions of JPY) 1 Jan 2012 31 Dec. 2012 Change Non-current assets Property, plant and equipmen

  41. Slide 41: Opening Balance and Year-end Balance of 2012 IFRS BS - Liabilities and Net Assets

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ FY2012 Consolidated Financial Overview ＜Pro forma＞ Opening Balance and Year-end Year end Balance of 2012 IFRS BS – Liabilities and Net Assets (Billions of JPY) 1 Jan. 2012 31 Dec. 2012 Change Non-current liabilities Lo

  42. Slide 42: Overview of Development Pipeline

    Overview of Development Pipeline CHUGAI PHARMACEUTICAL CO., LTD. Senior Vice President Head of Project & Lifecycle Management Unit Yutaka Tanaka January 30/31, 2013

  43. Slide 43: Projects under Development

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ Overview of Development Pipeline P j t under Projects d Development D l t (as of 30 Jan. 2013) Phase I Phase II Phase III Filed CIF/RG7167 AF802/RG7853 RG435/Avastin RG435/Avastin - solid tumors - NSCLC (PI/II) - aBC -

  44. Slide 44: Development Status - Oncology

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ Overview of Development Pipeline D Development l t St Status t - Oncology O l In- In licensed RG3638 / onartuzumab (MetMab) : Expected Indication: Non-Small Cell Lung Cancer Started Global P3 in November 2012 In- licen

  45. Slide 45: Development Status - Autoimmune, Others

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ Overview of Development Pipeline D Development l t St Status t - Autoimmune, A t i Others Oth In- In house MRA / Actemra (sc) (Overseas) : Expected Indication: Rheumatoid Arthritis Filed in December 2012 In- house CSG4

  46. Slide 46: Projected Submissions

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ Overview of Development Pipeline P j t dS Projected Submissions b i i (Post PoC products and NMEs )  Seamless filings every year NME line extension in-house AVASTIN in-licensed BC Adj. trastuzumab emtansine RG3638 (T-

  47. Slide 47: RG7652 - Mode of Action

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ Overview of Development Pipeline RG7652 - Mode M d off Action A ti  RG7652 inhibits the interaction PCSK9 RG7652 between LDLR and PCSK9, which leads to LDLR degradation and lowers LDL-C level byy facilitating g LDLR r

  48. Slide 48: Update on the Development Requests for Unapproved Drugs/Indications

    Aiming to become a “top pharmaceutical company” ~Innovation all for the patients~ Overview of Development Pipeline Update on the Development Requests for Unapproved Drugs/Indications  Review Committee of Development Request for Unapproved Drugs/Indication  8 products d t (9 outt off 10 indications

  49. Slide 49: Contacts: Corporate Communications Dept.

    Contacts: Corporate Communications Dept. Corporate Communications Group Tel: +81 81 (0)3 (0)3-3273-0881 3273 0881 Fax: +81 81 (0)3 (0)3-3281-6607 3281 6607 e-mail: pr@chugai-pharm.co.jp Hitoshi Aikawa, Koichi Kawahara, Kae Miyata, Hiroshi Araki Investor Relations Group Tel:l +81 (0)3 T (0)3-3273-055

Chugai Pharmaceutical — Investor Presentation (January 2013) on 6ix