Csl Limited · ASX:CSL
Csl — FY2012 Earnings Presentation
34 slides from Csl's earnings presentation, Aug 22, 2012
Slide 1: CSL Limited 2012 Full Year Result
CSL Limited 2012 Full Year Result 22 August 2012
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 Limited and its related bodies corporate (CSL) financial results and estimates, business prospects and products in research, all of
Slide 3: Financials
Financials Reported total sales A$4.4 billion, up 12% at constant currency1 (CC) Reported EBIT A$1,215 million, up 14% at CC Reported NPAT A$983 million, up 16% at CC • Foreign currency headwind $108 million • NPAT US$1,024 million2 Reported EPS A189.2¢, up 21% at CC R&D investment A$355 million, up
Slide 4: Moving to US dollar reporting in FY2013
Moving to US dollar reporting in FY2013 - Profit growth in US dollars1 FY07 to FY12 Reported NPAT Trend Excluding One Offs (US$'m) 1200 $2.50 NPAT EPS EPS CAGR 5yr EPS = 21% CAGR = 21% 1000 5yr NPAT CAGR = 19% $2.00 NPAT CAGR = 19% 800 US$'m EPS US$ NPAT US$M $1.50 600 NPAT $1.00 400 $0.50 200 0 $-
Slide 5: Operational Highlights (1)
Operational Highlights (1) CSL Behring • Immunoglobulin sales US$1.7 billion, up 15% • Strong demand for Privigen ® & Hizentra ® • Privigen® - European Phase III study in CIDP completed • Hizentra ® – clinical trial commenced for subcutaneous CIDP • Albumin sales US$448 million, up 15% (includes Asi
Slide 6: Operational Highlights (2)
Operational Highlights (2) Recombinant haemophilia pipeline • rIX-FP • Commencement of phase II/III pivotal trial • US FDA grants orphan drug status • rVIII-SingleChain – Commencement of phase I/III trial • rVIIa - FP • US FDA grants orphan drug status • Commencement of phase I trial Gardasil* recom
Slide 7: CSL Group FY2012 Sales US$4.6 Billion
CSL Group FY2012 Sales US$4.6 Billion Key Products Pharma & Global plasma Specialty vaccines 9% Sales* US$4.2Bn Products 14% Other sp Liquid IG 24% 6% Peri-op 6% Wound 2% Lyo IG 6% Albumin 10% SCIG 7% pd Coag 13% rFVIII 11% Hyper IG 4% * Includes CSL Behring & Broadmeadows
Slide 8: Broad Geographic Sales Reach
Broad Geographic Sales Reach ROW FY2012 7% US$4.6Bn Australia 11% North Asia 9% America 42% Europe 31%
Slide 9: Outlook for FY2013
Outlook for FY2013 @ 11/12 exchange rates US dollar reporting commencing FY2013 Board to consider a further on-market share buyback1 of up to A$900m Operational integration of Broadmeadows facility with CSL Behring Financial outlook • Revenue growth ~ 10% @ CC • R&D investment growth ~15% @ CC • Net
Slide 10: Human Health Business Unit Performance
Human Health Business Unit Performance • CSL Behring • Other Human Health - CSL Biotherapies and CSL Research & Development • Intellectual Property Licensing 10
Slide 11: CSL Behring product sales up 12% in USD terms
CSL Behring product sales up 12% in USD terms US$M 4,000 US$3,713m +12% 3,500 US$3,313m Specialty Products 3,000 2,500 Immunoglobulins 2,000 1,500 Albumin 1,000 pdCoag 500 Helixate® 0 Jun 11 Sales for the 12 month period Jun 12 11
Slide 12: Immunoglobulins
Immunoglobulins US$M Highlights 1,800 US$1,722m +15% 1,600 IVIG US$1,494m Other Growth 1,400 Volume • US, Canada, France & UK. 1,200 • US ‘Privigen Promise’ guaranteeing supply 1,000 IVIG SCIG demand Privigen • US PID patient demand 800 • Migration to Hizentra® from 600 Vivaglobin® Other growth driv
Slide 13: Albumin
Albumin 500 US$M US$448m 450 +15% Asia* Highlights 400 US$391m 350 Growth • Continuing strong demand 300 in Asia US$314m 250 US$286m • US Hospital demand • Germany clinical usage re- 200 evaluation 150 100 50 0 Jun 11 Jun 12 Sales for the 12 month period * CSL Behring albumin sold in Asia by CSL Bio
Slide 14: Haemophilia
Haemophilia US$M 1,200 +5% US$1,058m Highlights US$1,012m 1,000 Growth PdFVIII 800 pdCoag • Volume up 15% • Haemate demand for ITT 600 patient treatment in Europe • Mix shift to Beriate® in lower 400 priced emerging markets Helixate® Helixate • Demand growth in USA 200 0 Jun 11 Jun 12 Sales for the
Slide 15: Specialty Products
Specialty Products US$M US$618m +18% 600 Highlights US$522m Other 500 Specialty Peri-operative Bleeding Products • Growing awareness of changing treatment paradigm for POB 400 • BleedingHaemocomplettan® / RiaSTAP® - EU demand 300 • Corifact ® - Launch in US Peri- • Beriplex® - Launch in Canada Opera
Slide 16: Facilities Development
Facilities Development Bern • IgLab Module 2 online increasing capacity Marburg • Filling facilities modernised and extended • Facilities for purification and formulation of recombinant proteins opened Kankakee • Albumin and base fractionation capacity expansion at Kankakee Plasma collection fleet •
Slide 17: Other Human Health – CSL Biotherapies
Other Human Health – CSL Biotherapies A$M A$685m 900 A$627m +10% Highlights A$813m 800 A$735m Albumin demand growth in Asia 700 Asia# Broadmeadows plasma therapy 600 sales A$266m 500 Aust. Influenza sales A$141m following Plasma solid US and European demand 400 Gardasil* sales in Aust. & NZ of 300 P
Slide 18: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Revenue A$137m, up 43% Gardasil* (HPV royalties A$107m) • Label expansion to cover anal cancer in Australia • Australian vaccination program expanded to 12-13 yr old boys • Japanese rollout commenced Mucopolysaccharidosis (A$20m) • One-off sale of IP associated wi
Slide 19: Commitment to Research & Development
Commitment to Research & Development US$M 400 350 USD CAGR 300 20% 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 R&D Investment 19
Slide 20: R&D Regulatory Update
R&D Regulatory Update Hizentra® (20% subcutaneous immunoglobulin) • Additional approvals in Europe and Canada Privigen® (10% intravenous immunoglobulin) • Dossier submitted in Europe for CIDP Berinert ® (C1 Esterase Inhibitor) • US approved label expansion for self administration and laryngeal attac
Slide 21: R&D Highlights
R&D Highlights Immunoglobulins Berinert ® (C1 esterase inhibitor) Breakthrough Specialty medicines Products • Phase II study of high concentration subcutaneous formulation Haemophilia Products Hizentra ® • Commencement of Phase III study in CIDP rIX-FP (rec fusion protein linking factor IX with albu
Slide 22: Financial Detail
Financial Detail 22
Slide 23: FY 2012 Net Profit after Tax up 16% at CC
FY 2012 Net Profit after Tax up 16% at CC 1200 +16% A$1,091m FX impact 1000 A$108m FX Reported NPAT A$983m A$941m Foreign currency* -ve A$108m 800 NPAT at CC A$1,091m Reported Reported 600 NPAT NPAT in USD US$1,024m NPAT 400 Notable items MPS royalty – one-off sale of IP 200 Gardasil** pipeline stoc
Slide 24: CSL Behring - Reported EBIT Margin
CSL Behring - Reported EBIT Margin % 34 32.5% 32.7% 32 FX Foreign Exchange 30 Reported EBIT • FX masks operational 31.5% 28 Margin margin • Swiss Franc strengthening 26 against the USD 24 22 20 Jun 11 Jun 12 24
Slide 25: Financial Discipline
Financial Discipline FY11 FY12 Cashflow from operations A$1,018m A$1,160m Capital Investment A$212m A$311m Cash cycle - days 146 131 Cash conversion % 97.3 103.8 25 - Balance Sheet Strength -
Slide 26: Debt Maturity Profile
Debt Maturity Profile A$M 350 300 250 200 150 100 50 0 Private Placement Bank Debt Leases 26
Slide 27: Capital Management
Capital Management Cash on hand A$1,155 million Debt Refinancing • US$750 million private placement in the US • ~A$800 million in new lines of credit - Undrawn A$448m Current A$900m On-Market Buyback* • Commenced 18 Oct 2011, 12 months to complete • ~20 million shares repurchased, ~77% complete Boar
Slide 28: Looking forward
Looking forward NPAT growth ~12% at CC (FY2012 NPAT US$1,024m) • Note forward looking statement disclaimer – slide 2 US dollar reporting commencing fiscal 2013 • 1H12 & FY12 financials provided in USD Nov 2012 • 5 years of historical key financials Operational integration of Broadmeadows facility wi
Slide 29: CSL Growth Strategy
CSL Growth Strategy Biotech AML, RA Specialty products New Plasma RiaSTAP ®, Beriplex ®, Fractions Cytogam ®, Berinert®, rHDL Zemaira ® Immunoglobulins Privigen® Hizentra ® Recombinant Coagulation Emerging markets Factors Albumin, FVIII rIX-FP, rVIIa-FP, rVIII-SingleChain Market growth All products
Slide 30: Appendix
Appendix 30
Slide 31: Group Results
Group Results Australian dollars Twelve months ended June Jun Jun Jun Change A$ Millions 2011 2012 2012 % Reported Reported CC1 Sales 4,188 4,433 4,673 11.6% Other Revenue / Income 134 191 198 Total Revenue / Income 4,322 4,624 4,871 Earnings before Interest, Tax, Depreciation & 1,357 1,386 1,524 12
Slide 32: Group Results
Group Results US dollars Twelve months ended June Jun Jun Change US$ Millions 2011 2012 % Reported Reported Sales 4,097 4,616 12.7% Other Revenue / Income 131 197 Total Revenue / Income 4,228 4,813 Earnings before Interest, Tax, Depreciation & 1,324 1,446 9.2% Amortisation Depreciation/Amortisation
Slide 33: CSL Behring Sales
CSL Behring Sales US dollars Full year ended June FY11 FY12 FY12 Change USD$M USD$M USD$M % CC rFVIII 486 502 501 3% pdCoag 527 557 557 6% Albumin (excludes Asian sales) 286 314 312 9% Immunoglobulins 1,494 1,722 1,719 15% Specialty Products 520 618 610 17% - Wound healing 94 98 94 --% - Peri-operat
Slide 34: Notes
Notes Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current year’s results at the prior year’s rates. This is done in two parts: a) by converting the current year net profit of entities in the group that have reporting currencies other t