H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — Shareholder Meeting (March 2019)
42 slides from H. Lundbeck A/S Class A's shareholder meeting presentation, Mar 26, 2019
Slide 1: 2019 Annual General Meeting H. Lundbeck A/S
2019 ANNUAL GENERAL MEETING H. LUNDBECK A/S 26 March 2019
Slide 2: Welcome
Welcome LARS SØREN RASMUSSEN Chairman of the Board of Directors 2
Slide 3: Executive Management
Executive Management PETER LARS ANDERS DEBORAH JACOB JOHAN KELD ANASTASIOU BANG GÖTZSCHE DUNSIRE TOLSTRUP LUTHMAN FLINTHOLM JØRGENSEN 3
Slide 4: Board of Directors
Board of Directors LARS SØREN LENE SKOLE- RIKKE KRUSE LARS ERIK RASMUSSEN SØRENSEN ANDREASEN HOLMQVIST JEREMY MAX HENRIK LUDOVIC JEFFREY HENRIK LEVIN SINDAL TRANHOLM BERKOWITZ ANDERSEN JENSEN OTTERBEIN 4
Slide 5: Agenda
Agenda 1. Report of the Board of Directors on the Company's activities during the past year 2. Presentation and approval of the annual report 3. Resolution on the appropriation of profit or loss as recorded in the adopted annual report 4. Election of members to the Board of Directors 5. Approval of
Slide 6: Report from the Board of Directors and 2018 Annual Report
Item 1 and 2: Report from the Board of Directors and 2018 Annual Report LARS SØREN RASMUSSEN Chairman of the Board of Directors 6
Slide 7: Best financial results in the history of Lundbeck
Best financial results in the history of Lundbeck 7
Slide 8: Solid growth in key products and geographic split
Solid growth in key products and geographic split Key products Revenue distribution* (2018 vs. 2017 – DKKm) (regional split) 12,500 Europa +18% 17% 10,000 (+6%) 1,723 Europa (-3 %) 7,500 3,165 20% Int. Markeder International Markets (+3%) Nordamerika 5,000 1,806 (+2 %) (+6 %) 63% (+1%) North America
Slide 9: Share price development in 2018
Share price development in 2018 500 Results for Lu AF35700 450 Publication of Q1 results Dividend 400 350 2018 300 61% of net result Publication of Q2 results 250 2019 200 30 – 60% of net result 150 100 50 0 9
Slide 10: Achievements in 2018 – marketed products
Achievements in 2018 – marketed products FDA approved two Approved in the EU Launched for Market exclusivity label expansions for the indication of bipolar in the US, prolonged in Japan Schizophrenia Canada and until 2021 Trintellix filed in Approved in Saudi Australia Japan Arabia for Became #1 in
Slide 11: Achievements in 2018 – Lundbeck's pipeline
Achievements in 2018 – Lundbeck’s pipeline Well conducted phase III study Acquisition of Prexton with LU AF35700 for treatment Therapeutics and addition of resistant schizophrenia did not foliglurax for the treatment of demonstrate superiority vs. Parkinson’s disease conventional therapy Initiation
Slide 12: Stellar execution on 2016 corporate strategy to restore profitability
Stellar execution on 2016 corporate strategy to restore profitability Long-term financial targets Operating profit Net cash from February 2016 2018: 2018: DKK 5.3bn DKK 6.6bn 2018 Target EBIT margin 29.3% 25% ✓ ROIC 48.6% 25% ✓ Cash to earnings 117.6% >90% ✓ 2015: DKK -0.2bn* 2015: DKK -2.2bn *) Adj
Slide 13: Our purpose
Our purpose Tirelessly dedicated to restoring brain health, so every person can be their best 13
Slide 14: Our strategic imperatives
Our strategic imperatives 14
Slide 15: We will build on our strong heritage and expertise in neuroscience
We will build on our strong heritage and expertise in neuroscience Our strong heritage and extensive neuroscience experience provide us with a competitive advantage and enable us to expand our focus to help people living with a broader range of brain diseases. 15
Slide 16: Capitalize on our competitive edge
Capitalize on our competitive edge We have a competitive edge as a fully integrated global pharmaceutical company with a strong global footprint helping people living with brain diseases. Drug discovery Global presence Creating high quality drug molecules, A strong global medical, antibodies and vac
Slide 17: Leverage our reputation as partner of choice in brain disease
Leverage our reputation as partner of choice in brain disease .Our strong track record in successful collaborations makes us an attractive partner for third parties. 17
Slide 18: We will grow Lundbeck to create value for all our stakeholders
Our strategic goal We will grow Lundbeck to create value for all our stakeholders 18
Slide 19: 2018 financial performance aligned with expectations
2018 financial performance aligned with expectations Guidance Reported Reported Index 2018 2018 2017 DKKbn DKKm DKKm Revenue 17.7 – 18.1 18,117 17,234 105 EBIT 5.1 – 5.4 5,301 4,408 120 EBIT margin 29.3% 25.6% 19
Slide 20: Financial results
Financial results DKKm 2018 2017 Index Revenue 18,117 17,234 105 Cost of sales 3,456 3,881 89 Sales and distribution costs 5,277 5,649 93 Administrative expenses 762 833 91 Research and development costs 3,277 2,705 121 Other operating items, net (44) 242 N/A Profit from operations (EBIT) 5,301 4,40
Slide 21: Cash flow
Cash flow DKKm 2018 2017 Cash flows from operating activities 5,981 4,045 Cash flows from investing activities (2,907) (1,830) Cash flows from operating and investing activities (free cash flow) 3,074 2,215 Cash flows from financing activities (1,607) (2,235) Net cash flow for the year 1,467 (20) Ca
Slide 22: Balance sheet and interest-bearing cash
Balance sheet and interest-bearing cash DKKm 2018 2017 Intangible assets 8,023 7,565 Other non-current assets 3,339 3,347 Current assets 11,649 8,844 Assets 23,011 19,756 Equity 14,251 12,181 Non-current liabilities 1,184 1,096 Current liabilities 7,576 6,479 Equity and liabilities 23,011 19,756 Cas
Slide 23: 2019 financial outlook
2019 financial outlook DKKbn 2017 2018 2019 Growth guidance Revenue 17.2 18.1 16.1 – 16.7 (11) – (8)% EBIT 4.4 5.3 4.2 – 4.6 (21) – (13)% EBIT margin 25.6% 29.3% ~25-29% - Dividend (% of net result) 61% 61% 30-60% - 23
Slide 24: Item 2: Approval of the annual report
ITEM 2: APPROVAL OF THE ANNUAL REPORT 24
Slide 25: Item 3: Resolution on the appropriation of profit or loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS 25
Slide 26: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2018 Share Profit for the year 3,907 Transfer to distributable reserves 1,518 39% Proposed dividends for the year 2,389 61% Proposed dividend per share (DKK) 12.00 26
Slide 27: Item 4: Election of members to the Board of Directors
ITEM 4: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS 27
Slide 28: Members of the Board of Directors - elected at the 2018 AGM
Members of the Board of Directors - elected at the 2018 AGM Remuneration Audit Scientific Members Independent Committee Committee Committee Lars Søren Rasmussen, Chairman Yes √C √ Lene Skole-Sørensen, Deputy Chairman No √ √ Henrik Andersen Yes √C Lars Erik Holmqvist No √ Jeremy Max Levin Yes √C Jeff
Slide 29: Members of the Board of Directors - proposed for election at the 2019 AGM
Members of the Board of Directors - proposed for election at the 2019 AGM Members Independent Lars Søren Rasmussen Yes Lene Skole-Sørensen No Henrik Andersen Yes Lars Erik Holmqvist No Jeremy Max Levin Yes Jeffrey Berkowitz Yes Henrik Sindal Jensen Members elected by the Ludovic Tranholm Otterbein e
Slide 30: Election of board members
Item 4: Election of board members LARS SØREN LENE SKOLE- LARS ERIK JEFFREY HENRIK JEREMY MAX RASMUSSEN SØRENSEN HOLMQVIST BERKOWITZ ANDERSEN LEVIN 30
Slide 31: Item 5: Approval of remuneration
ITEM 5: APPROVAL OF REMUNERATION 31
Slide 32: Approval of remuneration
Item 5: Approval of remuneration Approval of remuneration for the Board of Directors for the current financial year Board of Directors Current Proposal DKK Members of the Board 350,000 350,000 Supplement to members of the Board with permanent residence outside of Europe 0 350,000 Deputy Chairman 700
Slide 33: Item 6: Election of State-Authorized Public Accountants
ITEM 6: ELECTION OF STATE-AUTHORIZED PUBLIC ACCOUNTANTS 33
Slide 34: Election of State-Authorized Public Accountants
Item 6: Election of State-Authorized Public Accountants Deloitte, Statsautoriseret Revisionspartnerselskab Erik Holst Jørgensen Sumit Sudan State-Authorized Public Accountant State-Authorized Public Accountant 34
Slide 35: Item 7: Proposals from shareholders or the Board of Directors
ITEM 7: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS 35
Slide 36: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.1. Acquisition of own shares It is proposed to authorise the Board of Directors until the next annual general meeting to allow the Company to acquire own shares of a total nominal value of up to 10% of the share capital. The purchase pr
Slide 37: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.2. Amendment of Remuneration Guidelines for Executive Management and the Board of Directors The Board of Directors proposes to adopt the amended Remuneration Guidelines for the Board of Directors and the Executive Management of H. Lundb
Slide 38: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.3. Removal of the age limit for members of the Board of Directors The Board of Directors proposes to remove the age limit for members of the Board of Directors and thereby amend Article 5.1 of the Company’s Articles of Association It is
Slide 39: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.4. Reduction of prices on the medicine sold by the Company if the return on equity exceeds 7% Proposal from the shareholder Kritiske Aktionærer (a Danish association) that if the return on equity in the Company exceeds 7%, then the Comp
Slide 40: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.5. Registration of the adopted amendments The Board of Directors proposes to authorise the Chairman of the general meeting to make such amendments and additions to the resolutions passed by the general meeting and the application for re
Slide 41: Item 8: Any other business
ITEM 8: ANY OTHER BUSINESS 41
Slide 42: Thank you and goodbye
THANK YOU AND GOODBYE SEE YOU AT NEXT YEAR’S ANNUAL GENERAL MEETING 42