H. Lundbeck A/s Class A · OMXCOP:HLUN_A

H. Lundbeck A/s Class A — FY2020 Earnings Presentation

72 slides from H. Lundbeck A/s Class A's earnings presentation, Feb 4, 2021

  1. Slide 1: Financial results & business update FY 2020

    Financial results & business update FY 2020 4 FEBRUARY, 2021

  2. Slide 2: Company Disclaimer

    COMPANY DISCLAIMER This presentation contains forward-looking statements that provide our expectations or forecasts of future events such as new product introductions, product approvals and financial performance. Such forward-looking statements are subject to risks, uncertainties and inaccurate assu

  3. Slide 3: FY 2020 Highlights

    FY 2020 – HIGHLIGHTS Robust financial performance for 2020 despite the pandemic and currency headwinds FY 2020 Q4 2020 Sales growth, y/y 4% -3% • Revenue: +4% to DKK 17.7 billion in line with guidance Core EBIT margin 25.1% 16.9% • Core EBIT: DKK 4.4 billion, a margin of 25.1% Free cash flow DKK 3,3

  4. Slide 4: Underlying performance for major strategic brands remains strong

    FY 2020 – PRODUCT PERFORMANCE Underlying performance for major strategic brands remains strong Brintellix/Trintellix Rexulti Abilify Maintena (DKKm and L.C. growth) (DKKm and L.C. growth) (DKKm and L.C. growth) 4,000 3,000 3,000 +17% +13% +25% +17% 3,000 +26% +20% 2,000 2,000 2,000 +32% +21% +5% +23

  5. Slide 5: Vyepti once again doubles demand compared to previous quarter

    FY 2020 – PRODUCT PERFORMANCE Vyepti once again doubles demand compared to previous quarter • Q4 vial demand doubles compared to Vyepti demand Q3 (weekly - vials) • Very positive testimonials from both patients and HCPs • ASP, on which practice reimburse- ment is determined, reflected in the January

  6. Slide 6: Vyepti global roll-out brings significant growth potential

    FY 2020 – PRODUCT PERFORMANCE Vyepti global roll-out brings significant growth potential • The market for prophylactic migraine treatments in value is expected to grow considerably in the Prevalent cases of migraine coming years Region Migraine • Approved in three and currently submitted for prevale

  7. Slide 7: Top-5 products add DKK 1.2 billion in incremental sales in 2020

    FY 2020 – FINANCIAL PERFORMANCE Top-5 products add DKK 1.2 billion in incremental sales in 2020 2020 Sales Growth in DKKm vs. 2019 Y/Y growth (DKKm) Brintellix/Trintellix 3,102 +10% Revenue Rexulti 2,620 +15% DKK 17.7 billion Cipralex/Lexapro 2,380 +3% +4% Northera 2,553 +10% Abilify Maintena 2,271

  8. Slide 8: Healthy underlying performance in 2020 as Lundbeck invests in its future

    FY 2020 – FINANCIAL PERFORMANCE Healthy underlying performance in 2020 as Lundbeck invests in its future DKKm FY 2020 Δ% y/y Q4 2020 Δ% y/y Revenue 17,672 +4% 4,275 -3% Robust revenue growth of 4% Gross margin 76,4% - 76.1% - Operational expenses 11,457 +20% 2,815 +6% Solid core EBIT margin of 25.1%

  9. Slide 9: 2021 will be impacted by depreciation of main currencies

    FY 2020 – FINANCIAL PERFORMANCE 2021 will be impacted by depreciation of main currencies 2020 sales by currency Main currencies (1 January 2020 = index 100) Other EUR • In 2020 effects from hedging 106 20% 17% reach a gain of DKK 5m vs a loss of DKK 322m in 2019 102 • 83% of sales in non-EUR CAD 4%

  10. Slide 10: Strong cash flow reduces NIBD by DKK 2.5bn or 37%

    FY 2020 – FINANCIAL PERFORMANCE Strong cash flow reduces NIBD by DKK 2.5bn or 37% Free cash flow (DKKm) Net cash & Net debt/EBITDA (DKKm & “x”) 3,370 3,074 9,000 1.0 2,789 2,215 6,635 6,000 0.5 3,677 3,000 0.0 326 0 -0.5 -3,000 Leverage (r.h.s.) -3,250 Net cash/debt (l.h.s.) -4,106 -1.0 -6,000 -6,56

  11. Slide 11: 2021 financial guidance

    FY 2020 – FINANCIAL PERFORMANCE 2021 financial guidance FY 2021 financial guidance FY 2021 considerations DKKm FY 2020 FY 2021 COVID-19 pandemic continues to inject uncertainty Actual Guidance Revenue Revenue 17,672 16.3 ̶ 16.9bn • Continued solid growth of Abilify Maintena, Brintellix/Trintellix an

  12. Slide 12: R&D progression

    FY 2020 – RESEARCH & DEVELOPMENT R&D progression Vyepti • ALLEVIATE: Phase III clinical study in episodic cluster headache initiated • European MAA submission accepted. To be submitted in approximately 10 markets during 2021 • Approved in UAE (December 2020) and Canada (January 2021) Rexulti • Plann

  13. Slide 13: Rexulti 2 mg/day potential in Alzheimer's agitation

    FY 2020 – RESEARCH & DEVELOPMENT Data from the two studies suggest that Rexulti 2 mg/day has the potential to be an efficacious, safe, and well-tolerated treatment for AAD Study 283: Fixed dose study Study 284: Flexible dose study (post hoc) Fast Track designation granted February Mean change from b

  14. Slide 14: R&D – Investing for a premier neuroscience pipeline

    FY 2020 – RESEARCH & DEVELOPMENT R&D – Investing for a premier neuroscience pipeline Project Biology Area Phase I Phase II Phase III Filing Eptinezumab (anti-CGRP mAb) Migraine prevention Hormonal / Eptinezumab (anti-CGRP mAb) neuropeptide Episodic cluster headache signalling Lu AG09222 (PACAP mAb)

  15. Slide 15: Committed to do our part towards the Sustainable Development Goals

    FY 2020 – ESG UPDATE Committed to do our part towards the Sustainable Development Goals (SDGs) - How Lundbeck makes an impact Committed to carbon neutrality New Science-Based targets approved FY 2020 reduction in CO2 emissions in spite of increased production volumes ❑ 14% cut in carbon emissions fr

  16. Slide 16: Lundbeck Sustainability Report 2020

    FY 2020 – ESG UPDATE Lundbeck Sustainability Report 2020 • Lundbeck has significantly improved its ESG ratings in 2020 • New reporting format to increase our disclosure of relevant sustainability information for investors • Task Force on Climate-related Financial Disclosures (TCFD) Reference Index *

  17. Slide 17: Progress made on our 'Expand and Invest to Grow' journey

    FY 2020 – CORPORATE STRATEGY Progress made on our ‘Expand and Invest to Grow’ journey has informed our future indication focus… Lundbeck’s historical indication focus Lundbeck’s future indication focus Specialist and broad indications Specialist indications addressing high unmet need Substantial com

  18. Slide 18: Our future medicines will provide a step-change in outcomes

    FY 2020 – CORPORATE STRATEGY Our future medicines will provide a step-change in outcomes to patients with difficult to treat brain diseases… 2020 Future focus Four biological clusters, Refined operating space: enabling wide disease area reach and innovation Targeted indications Indication groups 201

  19. Slide 19: Our ambition - To be #1 in Brain Health

    FY 2020 – SUM-UP Our ambition - To be #1 in Brain Health Providing transformative outcomes to patients in the highly attractive commercial areas of niche and rare disease neurology and niche psychiatry • Recognized as #1 in Brain Health by patients and other stakeholders globally • Premier neuroscie

  20. Slide 20: Key news flow

    FY 2020 – SUM-UP Key news flow H1 2021 • Canada approval of Vyepti achieved • Vyepti approval in Australia • Planned interim analysis using Rexulti in Alzheimer’s agitation (phase III) due Q2 H2 2021 • Phase II planned to commence for Lu AF82422 (MSA) • Phase II planned to commence for Lu AG09222 (m

  21. Slide 21: Q&A

    Q&A

  22. Slide 22: Diverse portfolio across products and regions

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Diverse portfolio across products and regions with geographical footprint well aligned to global CNS market Lundbeck product diversity Lundbeck geographic split* Global CNS market split** Sales by product (FY 2020) Sales by region (FY 2020) Sales by region

  23. Slide 23: Product distribution of revenue – Q4 2020 and FY 2020

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Product distribution of revenue – Q4 2020 and FY 2020 DKKm FY 2020 FY 2019 Q4 2020 Q4 2019 Growth Growth in local % of total currencies TOTAL: Abilify Maintena 2,271 1,961 542 504 8% 12% 13% Brintellix/Trintellix 3,102 2,826 794 803 (1%) 6% 19% Cipralex/Lexap

  24. Slide 24: Five strategic brands added DKK 1.3 billion in additional revenue

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Five strategic brands added DKK 1.3 billion in additional revenue in 2020 Strategic brands’ growth (FY 2020 – DKKm and L.C. growth) • Strategic brands*: Up 13% in 2020 (16% in L.C.) to DKK 10,639 million representing 60% of total revenue Rexulti/Rxulti +17% •

  25. Slide 25: Continued excellence in commercial execution for the strategic brands

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Continued excellence in commercial execution for the strategic brands; H2 impacted negatively by COVID-19 and FX 1,000 800 North America +26% -1% North America +25% -5% 800 Europe+Int. Markets Europe+Int. Markets 600 600 400 400 200 200 0 0 Q4.17 Q4.18 Q4.19

  26. Slide 26: Solid volume growth in the U.S. for our strategic brands

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Solid volume growth in the U.S. for our strategic brands 125,000 +8% 800,000 +17% -3% +14% 100,000 +20% +26% 600,000 75,000 400,000 50,000 200,000 25,000 0 0 Q4.17 Q4.18 Q4.19 Q4.20 Q4.17 Q4.18 Q4.19 Q4.20 300,000 +4% 15,000 +20% -1% +8% +29% 12,000 -1% 200,0

  27. Slide 27: Total molecule sales (gross) - USDm

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Total molecule sales (gross) - USDm 1.250 1.600 1.000 +46% 1.200 750 +67% 800 500 250 400 0 0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 • Abilify Maintena: U.S. approval (Feb. 2013); EU approval (Nov. 1.200 2013) 800 • Brintellix/Trintellix:

  28. Slide 28: Solid financial performance driven by strategic brand portfolio

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Solid financial performance driven by strategic brand portfolio Strategic brands’ sales Core revenue and EBIT (FY - DKKm) (FY - DKKm) 3,200 18,117 17,672 17,234 17,036 2,800 15,634 14,464 2,400 13,468 Strategic brands 2,000 CAGR: +71% 1,600 1,200 6,158 Abilif

  29. Slide 29: Trintellix and Rexulti show signs of recovering to pre-COVID-19 levels

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Trintellix and Rexulti show signs of recovering to pre-COVID-19 levels when ”normal” promotional activity is feasible Trintellix demand (U.S.)* Rexulti demand (U.S.)* (weekly - NRx) (weekly - NRx) 28,000 12,000 27,000 11,500 26,000 11,000 25,000 10,500 24,000

  30. Slide 30: Brintellix/Trintellix: 13% growth

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Brintellix/Trintellix: 13% growth – solid underlying performance continues to confirm the efficacy of its profile • Grew 10% (13% in L.C.) to DKK 3,102 Brintellix/Trintellix sales per region Brintellix/Trintellix sales million in 2020 (Quarterly - DKKm) (FY -

  31. Slide 31: Rexulti: Growing 17%

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Rexulti: Growing 17% – an effective drug that is meeting patient needs in several new markets • Grew 15% (17% in L.C.) to DKK 2,620 Rexulti sales per region*** Rexulti sales*** million in 2020 (Quarterly - DKKm) (FY - DKKm) • Growth in Q3 and Q4 negatively 80

  32. Slide 32: Northera: Growing 12%

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Northera: Growing 12% - solid growth in sales despite seasonality of U.S. buying patterns • Grew 10% (12% in L.C.) to DKK Northera sales Northera sales 2,553 million in 2020 (Quarterly - DKKm) (FY – DKKm) • Growth in Q3 and Q4 900 3,000 negatively impacted by

  33. Slide 33: Abilify Maintena: Sales up by 17%

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Abilify Maintena: Sales up by 17% - LAI market continues solid growth • Grew 16% (17% in L.C.) to DKK 2,271 Abilify Maintena sales per region*** Abilify Maintena sales*** million in 2020 (Quarterly - DKKm) (FY - DKKm) • Growth in Q4 negatively impacted by FX

  34. Slide 34: Mature brands: Strong performing products

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Mature brands: Strong performing products that effectively serve patients in emerging market countries • Declined 11% to DKK 6,537 million in Mature brands’ sales per region Mature brands’ sales 2020, mainly due to U.S. mature brands (Quarterly - DKKm) (FY -

  35. Slide 35: Cipralex/Lexapro

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Cipralex/Lexapro • Grew 3% (7% in L.C.) to DKK Cipralex/Lexapro Cipralex/Lexapro 2,380 million in 2020 (Quarterly - DKKm) (FY – DKKm) • Declined 3% (+3% in L.C.) to DKK 900 3,000 North America 487 million in Q4 2020 Int. Markets -3% +3% Europe • Main growth d

  36. Slide 36: Other pharmaceuticals

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Other pharmaceuticals • Declined 12% (9% in L.C.) to Other pharmaceuticals Other pharmaceuticals DKK 2,738 million in 2020 (Quarterly - DKKm) (FY – DKKm) • Around 15 mature products 1,200 3,600 included -12% • Biggest products are Azilect, 900 2,700 -23% Cipr

  37. Slide 37: Other revenue

    FY 2020 – APPENDIX – PRODUCT PERFORMANCE Other revenue • Declined 26% (25% in L.C.) to Other revenue Other revenue DKK 491 million in 2020 (Quarterly - DKKm) (FY – DKKm) • Q4 2020 impacted by quarterly 300 750 fluctuations in shipments -26% • Mostly contract manufacturing to -40% utilize excess capa

  38. Slide 38: Continued growth in all regions

    FY 2020 – APPENDIX – REGIONAL PERFORMANCE Continued growth in all regions Regional growth Sales by region# • North America impacted by generic erosion and impact from (FY 2020 – DKKm and in L.C. %) (FY 2020) COVID-19 • International Markets shows North America +4% solid growth driven by e.g. 19% Aus

  39. Slide 39: Robust growth across all three regions

    FY 2020 – APPENDIX – REGIONAL PERFORMANCE Robust growth across all three regions considering impact from pandemic and currency headwind North America revenue International Markets revenue Europe revenue (FY - DKKm) (FY - DKKm) (FY - DKKm) +2% 10,000 5,000 4,000 Other products +4% +3% 8,000 13% 4,000

  40. Slide 40: Aripiprazole 2-Month formulation

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Aripiprazole 2-Month formulation: Potential to further maximize M the franchise Aripiprazole 2-Month formulation: • PK-based bridging approach to establish similar exposure between aripiprazole 2- Month Ready to Use (RTU) formulation and Abilify Maintena •

  41. Slide 41: Agitation affects >50% of patients with dementia

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Agitation affects >50% of patients with dementia and is an important predictor of institutionalization Delusions, hallucinations, aggression, and agitation ~80% of AAD patients are in the community setting, affect >50% of patients with Alzheimer’s disease

  42. Slide 42: PTSD offers an exciting opportunity for Rexulti

    FY 2020 - APPENDIX – RESEARCH & DEVELOPMENT PTSD offers an exciting opportunity for Rexulti PTSD PoC study* Post-traumatic Stress Disorder (PTSD) epidemiology Rexulti (with placebo) as monotherapy ~8.6m U.S. adults affected, but or combination therapy in adults with >8m – U.S. prevalence ~80% estima

  43. Slide 43: Both studies in Rexulti pivotal programme in PTSD ongoing

    FY 2020 - APPENDIX – RESEARCH & DEVELOPMENT Both studies in Rexulti pivotal programme in PTSD ongoing Two studies initiated in the pivotal programme (phase III) Study objective1 Rexulti (fixed 2, 3mg and flexible dose up to 3mg) in To evaluate the efficacy, safety, and combination with sertraline to

  44. Slide 44: Borderline Personality Disorder offers an opportunity for Rexulti

    FY 2020 - APPENDIX – RESEARCH & DEVELOPMENT Borderline Personality Disorder offers an exciting opportunity for Rexulti BPD epidemiology Borderline Personality Disorder (BPD) ~5m – U.S. prevalence Dysfunctions in the serotoninergic and dopaminergic (1.6%, but likely higher)1) systems is considered as

  45. Slide 45: Rexulti PoC study in Borderline Personality Disorder ongoing

    FY 2020 - APPENDIX – RESEARCH & DEVELOPMENT Rexulti PoC study in Borderline Personality Disorder ongoing Study objective1 Phase II To evaluate the efficacy and safety Rexulti (flexible dose 2-3mg) and placebo of 12-week Rexulti for the treatment of subjects diagnosed with Primary endpoint: Zanarini

  46. Slide 46: Migraine prevention represents a large and under served market

    FY 2020 – APPENDIX - EPTINEZUMAB Migraine prevention represents a large and under served market Migraine is divided into two major categories, episodic Addressable population and chronic depending on the frequency of headaches (major countries1) ~134m – Migraine prevalence 1-14 headache days >14 hea

  47. Slide 47: Launching Vyepti in the U.S.

    FY 2020 - VYEPTI - EPTINEZUMAB Launching Vyepti in the U.S. Migraine prevention market: 13.9m1, 2 Diagnosed, 47% untreated Breakout of 27% treated group Untreated, Preventive Treatment % of Use3 undiagnosed Botox 10% people with migraine Anti-CGRPs 5% Diagnosed & preventively Other preventive treatm

  48. Slide 48: Two large pivotal studies demonstrated sustained efficacy

    FY 2020 - VYEPTI - EPTINEZUMAB Two large pivotal studies including ~2,000 patients demonstrated sustained efficacy and good tolerability PROMISE 1 PROMISE 2 Powerful ≥50%, ≥75% and in episodic migraine patients in chronic migraine patients 100% reductions in migraine days (N=888) (N=1,072;) • Primar

  49. Slide 49: PROMISE 1: Phase III study in frequent episodic migraine

    FY 2020 - VYEPTI - EPTINEZUMAB PROMISE 1: A phase III study to evaluate the efficacy and safety of Vyepti for prevention of frequent episodic migraine • Vyepti reaching statistical significance for the primary and all key secondary endpoints • Migraine day prevalence dropped over 50% on Day 1 and re

  50. Slide 50: PROMISE 2 results in chronic migraine

    FY 2020 - VYEPTI - EPTINEZUMAB Vyepti achieved meaningful reductions in migraine activity as early as Day 1 that were sustained through Week 12: results from PROMISE 2 phase III trial in chronic migraine Day 1 Reductions from baseline in ≥75% Migraine Responder Rates (RR) • In subjects with chronic

  51. Slide 51: HIT-6 is a widely used patient-reported outcome measure

    FY 2020 - VYEPTI - EPTINEZUMAB HIT-6 is a widely used patient-reported outcome measure in headache and migraine research • General measure of impact of headache on daily life1 • Six-item scale (severe pain, limits daily activities, lie down, too tired, felt fed up or irritated, limits concentration)

  52. Slide 52: PROMISE-2 sub-group analysis in medication-overuse headache

    FY 2020 – APPENDIX – RESEARCH AND DEVELOPMENT Vyepti: Data from sub-group analysis of PROMISE-2 in patients with medication-overuse headache presented at AHS 2020 Vyepti reduced mean days of acute headache medication use - including triptans specifically - by ~50% over Weeks 1–12 in patients with ch

  53. Slide 53: Positive headline results from the Vyepti RELIEF study

    FY 2020 – APPENDIX – RESEARCH AND DEVELOPMENT Positive headline results from the Vyepti RELIEF study* Vyepti demonstrated… • statistical significance on the co-primary endpoints • all secondary endpoints were also statistically significant, including: • proportion of patients with pain freedom, and…

  54. Slide 54: Vyepti: Phase IIIb study, DELIVER

    FY 2020 – APPENDIX – RESEARCH AND DEVELOPMENT Vyepti: Phase IIIb study, DELIVER, commenced in June 2020 Study objective: • Evaluate Vyepti in the prevention of migraine in patients with unsuccessful prior preventive treatments • Documented evidence of treatment failure in the past 10 years of 2-4 di

  55. Slide 55: Vyepti: Phase III study for cluster headache

    FY 2020 – APPENDIX - RESEARCH & DEVELOPMENT Vyepti: Phase III study for treatment of cluster headache, a crippling pain with few effective medications currently available Cluster headache affects approximately one in 1,000 ALLEVIATE phase III study to evaluate Vyepti in people across the world episo

  56. Slide 56: Success for Vyepti is a marathon, not a sprint

    FY 2020 – VYEPTI (EPTINEZUMAB) Success for Vyepti is a marathon, not a sprint LOE ~2035 China + Japan Europe ~2025 Selected regions in Int. Markets Eptinezumab PDUFA Date – Feb. 2020 ~2022 Other indications currently 2021 under evaluation; clinical activity RELIEF study – Nov. 2019 to commence by th

  57. Slide 57: Lu AF82422 for Parkinson's disease or other synucleinopathies

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Lu AF82422: Potential disease modifying antibody e.g. for Parkinson’s disease or other synucleopathies Pathological alpha-synuclein is Pathogenesis of Parkinson’s Ongoing phase I study3: released to extracellular space upon • Healthy non-Japanese and cell

  58. Slide 58: Lu AG09222: PACAP inhibitor mAb for migraine

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Lu AG09222: Potential to build a migraine franchise in the future with early-stage PACAP2 inhibitor mAb A differentiated approach to Phase I study4: migraine prevention • Determine the safety, tolerability • Highly potent and selective and pharmacokinetics

  59. Slide 59: Lundbeck La Jolla biology platform exploring serine hydrolases

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Lundbeck La Jolla has access to an exciting biology platform exploring serine hydrolases starting with the endocannabinoid system Access to world class MAG-lipase development candidates to bolster our portfolio “Pipeline in a drug” – many potential indicat

  60. Slide 60: Broad MAGLipase programme initiated

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Broad MAGLipase programme initiated Lu AG06466 Lu AG06479 • Inhibitor of the monoacylglycerol lipase • MAGL inhibitor (MAGL) and selective modulator of the endocannabinoid system Ongoing phase I study3 Ongoing phase Ib study in PTSD1 • Single-ascending ora

  61. Slide 61: Lu AF28996: A potentially new oral treatment for Parkinson's

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Lu AF28996: A potentially new oral treatment for Parkinson’s patients experiencing motor fluctuations D1/D2-type agonists Lu AF28996 Phase I studies: • Single- and sequential- Known to be highly efficacious A highly potent agonist at the D1- ascending-dose

  62. Slide 62: Alzheimer's project with new MoAs in clinical development

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Alzheimer’s project with new MoAs in clinical development Lu AF87908 • Tau mAb • Binding to and inhibition of pathological seeding form of Tau • Specific and pathology directed mAb • Retaining the capacity to mediate active clearance of Tau Ongoing phase I

  63. Slide 63: Focus research in four biology clusters

    FY 2020 – APPENDIX – RESEARCH & DEVELOPMENT Focus research in four biology clusters where the science has the most potential to deliver innovative therapies… Circuitry / neuronal Protein aggregation, biology folding and clearance Targeting neurotransmission / synaptic dysfunction to restore Targetin

  64. Slide 64: Core operating profit maintained at robust level

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Core operating profit maintained at robust level FY 2020 2020 core EBIT reconciliation (DKKm) 4,436 59 • Core EBIT reached DKK 4,436 million in FY 2020 839 • Core EBIT margin reached 25.1% as COVID-19 1,548 related cost avoidance mitigate increased 1,990 in

  65. Slide 65: Cash flow impacted by lower EBIT

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Cash flow impacted by lower EBIT, but solid cash generation still provides flexibility • Net cash flow: A positive cash flow of DKK 976 million in 2020, an improve- Net cash flow ment of DKK 1.6bn compared to 2019 (Quarterly - DKKm) 1,800 • FY 2021: Cash fl

  66. Slide 66: Cash position, funding and debt maturity

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Cash position, funding and debt maturity • A diversified and long term balanced debt portfolio is a priority to Debt maturity profile Lundbeck (EURm equivalent) • This includes access to various funding sources as well as a 1,500 (4+1+1+1)* balanced maturit

  67. Slide 67: Evolution in Lundbeck's main currencies

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Evolution in Lundbeck’s main currencies Main currencies Spot Lundbeck’s Average Average (1 January 2020 = index 100) 27/01/21 hedging H1 2020 H2 2020 106 rate 104 USD 613.96 648.01 677.47 630.52 102 CAD 481.79 475.46 496.60 478.50 100 CNY 94.88 91.71 96.34

  68. Slide 68: Cash generation

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCEE Cash generation DKKm Q4 2020 FY 2020 FY 2019 FY 2018 Cash flows from operating activities 1,060 3,837 2,609 5,981 Cash flows from investing activities (211) (467) (7,755) (2,907) Cash flows from operating and investing 849 3,370 (5,146) 3,074 activities (f

  69. Slide 69: Balance sheet and dividend

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Balance sheet and dividend DKKm 31.12.2020 31.12.2019 Dividend (DKK) Intangible assets 22,738 26,255 15 5% Other non-current assets 3,186 2,840 Dividend 12 4% Current assets 10,105 9,038 Yield (r.h.s.) 9 3% Assets 36,029 38,133 Equity 16,973 16,782 6 2% Non

  70. Slide 70: Costs – Full year figures

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Costs – Full year figures DKKm 2020 2019 2018 2020 (∆%) 2019 (∆%) Revenue 17,672 17,036 18,117 4% (6%) Cost of sales 4,166 3,840 3,911 8% (2%) Sales & Distribution costs 5,946 5,514 5,277 8% 4% Administrative expenses 966 899 762 7% 18% R&D costs 4,545 3,11

  71. Slide 71: Clear growth ambition based on current brand portfolio

    FY 2020 – APPENDIX – FINANCIAL PERFORMANCE Lundbeck has a clear growth ambition and further possibility to grow based on current brand portfolio Lundbeck revenue 1999 – 2021e (mid-point) (FY - DKKm) Expected growth drivers: • Rexulti: Continued strong growth including LCM activities (e.g. Alzheimer’

  72. Slide 72: For more information, please contact Investor Relations

    INVESTOR RELATIONS For more information, please contact Investor Relations • Listed on the Copenhagen Stock Number of shares1 199,148,222 IR contact Exchange since 18 June 1999 Treasury shares1 435,019 (0.06%) Palle Holm Olesen Insider holdings1 114,000 (0.07%) VP; Head of Investor Relations • Deuts

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