Slide 1: Ipsen FY 2018 Results
Ipsen FY 2018 Results February 14, 2019
Slide 2: Disclaimer & Safe Harbor
Disclaimer & Safe Harbor 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 in
Slide 3: Agenda
Agenda 01 FY 2018 Overview David Meek Chief Executive Officer 02 FY 2018 Financial Performance/ Aymeric Le Chatelier 2019 Financial Guidance Chief Financial Officer 03 Conclusion David Meek Chief Executive Officer 04 Q&A David Meek Aymeric Le Chatelier 3
Slide 4: FY 2018 Overview
01 FY 2018 Overview David Meek Chief Executive Officer 4
Slide 5: Excellent execution in FY 2018 to deliver growth strategy
01 Excellent execution in FY 2018 to deliver growth strategy ▪ Group sales growth of +20.1%1 driven by Specialty Care growth of +24.7%1 ✓ Top line ▪ Somatuline® achieved blockbuster status with continuing momentum ▪ Strong performance across all major products and geographies ▪ Core Operating Income
Slide 6: Being a leading global biopharmaceutical company focused on innovation and Specialty Care
Being a leading global biopharmaceutical company focused on 01 innovation and Specialty Care Specialty Care representing North America sales growing by +38% 87% of sales and representing 28% of sales FY 2018 sales by therapeutic area FY 2018 sales by geographical area Neuroscience Rare Diseases Nort
Slide 7: Oncology representing 68% of sales, growing by +29.9% with Somatuline, new launches and expanding pipeline
Oncology representing 68% of sales, growing by +29.9% 1 with 01 Somatuline ®, new launches and expanding pipeline Commercial highlights Pipeline highlights Somatuline® Recent approvals: ▪ Achieved blockbuster status in 2018 ▪ Cabometyx® EMA approval for treatment of 2L HCC ▪ Strong global momentum a
Slide 8: Neuroscience leadership position with strong pipeline and Dysport double-digit growth
Neuroscience leadership position with strong pipeline and 01 Dysport ® double-digit growth at +12.6% 1 Commercial highlights Pipeline highlights ▪ Double-digit growth for Therapeutics and Aesthetics Mid-stage programs ▪ Total in-market sales under Dysport® brand >€500 million ▪ Two Phase 2 trials fo
Slide 9: Building sustainable R&D pipeline in Oncology, Neuroscience and Rare Diseases with promising NCEs
Building sustainable R&D pipeline in Oncology, Neuroscience 01 and Rare Diseases with promising NCEs Preclinical Phase I Phase II Phase III Registration Longer-acting toxin 177Lu-IPN-01072 68Ga-IPN-01070 Cabometyx® Somatuline® mrBoNT/A (Satoreotide Tetraxetan) (Satoreotide Trizoxetan) RCC 1L combina
Slide 10: Developing leading systemic radiation therapy program
01 Developing leading systemic radiation therapy program Systemic Radiation Therapy (SRT) Early-stage theranostic programs Site-directed targeted therapeutic strategy using Satoreotide (SRT for NET) – Phase 1/2 development radiolabeled peptides or other molecules to deliver • Potential best-in-class
Slide 11: Accelerating internal and external innovation model
01 Accelerating internal and external innovation model Ambition ▪ Build an innovative and sustainable pipeline in all phases of clinical development ▪ Deliver at least one new molecular entity/meaningful indication every year ▪ Optimize portfolio management and accelerate priority programs ▪ Focus o
Slide 12: Financials
02 Financials Aymeric Le Chatelier Chief Financial Officer 12
Slide 13: FY 2018 sales growth driven by Specialty Care business
02 FY 2018 sales growth driven by Specialty Care business Group sales Net sales of key products in FY 2018 in million euros – % excluding foreign exchange impact €2,225m +20.1% Somatuline® 847 +24% Specialty Care Decapeptyl® 373 +8% Cabometyx® 148 +188% Specialty Care sales Onivyde® 109 +101% €1,925
Slide 14: FY 2018 performance highlights for key products
02 FY 2018 performance highlights for key products Established Specialty Care Specialty Care launches Consumer Healthcare Somatuline® Cabometyx ® ▪ Smecta® growth driven by the • Significant volume growth and market • Growing sales and market good performance in France share expansion in the U.S. (+
Slide 15: Significant impact of foreign exchange in 2018
02 Significant impact of foreign exchange in 2018 57% of sales in non-EUR currencies USD representing more than 30% of sales Currency evolution in 2018 2018 sales by currency Average rates change (2018 vs. 2017) … Other1 -1% -2% -4% 16% EUR GBP 4% 43% -11% CNY 6% -16% USD 30% GBP CNY USD BRL RUB Neg
Slide 16: Investments focused on pipeline strategy and commercial launch support
02 Investments focused on pipeline strategy and commercial launch support COGS (€m) R&D (€m) 385.6 454.2 265.8 302.1 20.2% 20.4% 13.6% 13.9% FY 2017 FY 2018 FY 2017 FY 2018 Positive mix effect from growing Specialty Care business Advancement of pipeline programs offset by higher Cabometyx® royalties
Slide 17: Operating leverage driving significant margin expansion
02 Operating leverage driving significant margin expansion -0.0pt -1.1pts Consumer Healthcare +0.0pts Unallocated FX +4.4pts 29.7% Specialty 26.4% Care 2017 2018 Group margin expansion driven by Specialty Care sales growth and operating leverage No impact of currencies after hedging strategy on marg
Slide 18: Core Operating Income to EPS
02 Core Operating Income to EPS In €m FY 2018 FY 2017 Change % Change Net sales 2,224.8 1,908.7 +316.1 +16.6% Sales growth at +16.6% (+20.1% excluding negative Core Operating Income 659.9 503.6 +156.3 +31.0% impact of currencies) Core operating margin 29.7% 26.4% +3.3 pts Core Operating Income +31.0
Slide 19: Growing Free Cash Flow greater than €450m and strong balance sheet
02 Growing Free Cash Flow greater than €450m and strong balance sheet Free cash flow: €458m In €m 9 +713 -120 -463 -438 -143 -84 -463 -120 -34 -242 December EBITDA Change in Net Restructuring, Dividends Net Share Financial, Tax December 2017 working capex investments buyback & Other 2018 capital & O
Slide 20: FY 2019 guidance
02 FY 2019 guidance Sales growth > +13.0% at constant currency • Driven by the continued growth of Specialty Care • Limited impact from currencies of approximately +1.0% based on the current level of exchange rates Core Operating margin ~31.0% as % of sales • Excluding incremental investments in pip
Slide 21: Key FY 2018 financial takeaways
02 Key FY 2018 financial takeaways ▪ Group sales growth at +20.1%1 driven by the strong performance of the Specialty Care business ▪ Core Operating Income growing by +31.0% and Core Operating Margin reaching 29.7% of sales, up +3.3 pts ▪ EPS growing by +42.7% and proposed dividend at 1.00€/share2 ▪
Slide 22: Conclusion
03 Conclusion David Meek Chief Executive Officer 22
Slide 23: 2019 R&D Milestones
03 2019 R&D Milestones Satoreotide IPN 60090 Fast-acting neurotoxin Fast-acting neurotoxin Program Phase 1 (MD Anderson) Phase 2 Phase 2 advancements Non-NET Phase 1 Glabellar lines Spasticity Onivyde® Satoreotide Onivyde® Cabometyx® Top-line Phase 2 Phase 2 Phase 2 Phase 3 results 1L PDAC GEP-NET 2
Slide 24: 2019 Objectives
03 2019 Objectives Growth Pipeline Culture Identify, execute Maximize growth and integrate Continue Leverage successful and market Increase value Drive further Consumer commercial business share worldwide of the pipeline transformation and Healthcare capabilities and development for differentiated b
Slide 25: MERCI
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