Ipsen SA · EURONEXT:IPN
Ipsen SA — H1 2007 Earnings Presentation
24 slides from Ipsen SA's earnings presentation, Aug 29, 2007
Slide 1: Half year 2007 results
Ipsen’s Half Year 2007 Results Half year 2007 results August 29, 2007
Slide 2: Disclaimer
Ipsen’s Half Year 2007 Results Disclaimer 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. S
Slide 3: An innovation driven International Specialty Pharma Group
Ipsen’s Half Year 2007 Results An innovation driven International Specialty Pharma Group > 100 countries. c.4,000 employees, founded in 1929. A world-class Group 2006 Sales: €862 m. 2006 operating income: €187 m Market capitalisation (as of August 1, 2007): ~€3.3 bn A longstanding A diversifie
Slide 4: A market leader in our Targeted Therapeutic Areas
Ipsen’s Half Year 2007 Results A market leader in our Targeted Therapeutic Areas GnRH analogue - 3 months formulation – longer Sustained Release Formulations (“SRF”) under development Decapeptyl® n°1 or n°2 in most Ipsen markets Long lasting relationships with target audiences and EU urology o
Slide 5: First Half 2007 highlights
Ipsen’s Half Year 2007 Results First Half 2007 highlights Jean-Luc Bélingard Chairman & Chief Executive Officer
Slide 6: A sound performance in the first half 2007
Ipsen’s Half Year 2007 Results A sound performance in the first half 2007 Group Sales Volume of drugs sold +7.6% +9.3% Specialist care products sales Sales outside Major Western European countries +10.6% +16.2% First half 2007/2006 growth rates 5
Slide 7: Year-to-date roundup
Ipsen’s Half Year 2007 Results Year-to-date roundup The main foundations for future growth are now in place 9 Increased effort in self-financed R&D 9 Collaboration with Tercica fully operational: Increlex® to be marketed in Europe from October by Ipsen and Somatuline® expected to be approved for mar
Slide 8: First half 2007 results
Ipsen’s Half Year 2007 Results First half 2007 results Claire Giraut Chief Financial Officer
Slide 9: Sales evolution
Ipsen’s Half Year 2007 Results Sales evolution H1 2006 and 2007 sales by therapeutic area H1 2006 and 2007 sales by region +7.6% 463.2 +7.6% 463.2 430.6 430.6 +10.6% 245.3 221.8 +2.7% 283 275.7 In million euros +13.7% +3.8% 106.1 194.4 201.9 93.3 +20.1% +10.9% 61.6 74.1 14.4 16.0 H1 2006 H1 2007 H1
Slide 10: Other revenues evolution
Ipsen’s Half Year 2007 Results Other revenues evolution 46.6 (23.8)% Royalties received 35.5 Kogenate® royalties up 13.1% 13.9 (78.6)% In million euros 3.0 Milestone payments and licensing agreements 10.8 (21.3)% 8.5 Roche, Medicis and Recordati partnerships +9.6% Others No more billings
Slide 11: Cost of goods sold evolution
Ipsen’s Half Year 2007 Results Cost of goods sold evolution Price cuts (€6.9 million) 21.2% Negatives mechanically reduce COGS ratio Strong increase of in-licensed In % of sales products 20.6% Fast growing targeted therapeutic Positives areas (favourable “mix effect”) H1 2006 H1 2007 Product
Slide 12: SG&A costs evolution
Ipsen’s Half Year 2007 Results SG&A costs evolution marketing expenses Contained Marketing & Sales costs +6.1% Other sales & increase - below sales growth level 199.6 188.0 +6.4% G&A 39.8 Increase in royalties paid to third In million euros 37.4 parties (up 12.8%) partly offset by lower tax on s
Slide 13: R&D expenses evolution
Ipsen’s Half Year 2007 Results R&D expenses evolution Drug-related R&D Major R&D projects: Preparation of US filing for +5.4% 88.4 83.8 Strategic Dysport® 2.9 development (1.9)% Clinical trials of long acting Triptorelin 3.0 In million euros Industrial +32.6% 13.5 development Strengthening of
Slide 14: Operating Income evolution
Ipsen’s Half Year 2007 Results Operating Income evolution Sustained price pressure 27.1% 116.7 Lower “other revenues”, especially R&D 24.4% Non rebilling (BIM 51077) and co-promotion recurring items 112.9 112.9 revenues (Zoxan®) 25.2% Strong sales of in-licensed products and drug 108.4 related
Slide 15: Income Tax evolution
Ipsen’s Half Year 2007 Results Income Tax evolution In the first half 2007, the Group’s effective tax 2 7 .3 % rate amounted of 27.3%, Impacted by a reduction in the value of 2 5 .0 % deferred tax assets in Netherlands following Non recurring a tax rate cut in this country items 18 .7 % In the
Slide 16: Net income evolution
Ipsen’s Half Year 2007 Results Net income evolution Net profit from continuing activities 85.3 88.5 Tercica (5.8) Lower other revenues (no BIM51077 R&D rebilling) and impact 79.6 In million euros increased self-financed R&D Return to normative tax rate Impact (1) of Tercica H12006 H12007 (1):
Slide 17: Outlook
Ipsen’s Half Year 2007 Results Outlook Jean-Luc Bélingard Chairman and Chief Executive Officer
Slide 18: A rich newsflow expected short term
Ipsen’s Half Year 2007 Results A rich newsflow expected short term Dopastatin Phase I initiation in Q4 Dysport®: Cervical dystonia Preparation of filing by Ipsen with the FDA ongoing Reloxin®: Glabellar lines Preparation of filing by Medicis with the FDA ongoing Somatuline® Autogel®: Acromegal
Slide 19: Financial objectives confirmed - translating confidence
Ipsen’s Half Year 2007 Results Financial objectives confirmed - translating confidence March 19, 2007 objectives New objectives 6.5 to 7.5% growth 6.5 to 7.5% growth Sales ® excluding the price cut on Tanakan including the price cut on Tanakan® 4.0 to 5.0% growth 4.0 to 5.0% growth Total revenues ex
Slide 20: Appendix
Ipsen’s Half Year 2007 Results Appendix
Slide 21: Main P&L impacts of Tercica in IFRS
Ipsen’s Half Year 2007 Results Main P&L impacts of Tercica in IFRS In € millions H1 2007 Comments • Change in fair value of warrant • Change in fair value of conversion option of Note • Interests on Convertible Note Change in fair value of the Convertible note, warrant, Impact on financial income
Slide 22: Cash flow statement
Ipsen’s Half Year 2007 Results Cash flow statement H1 2006 H1 2007 H1 2006 benefited for important in million euros milestone payments from Medicis Cash Flow before change in working capital 89.6 112.6 (Increase) / Decrease in working capital 40.6 (65.3) Net cash flow generated by operating activi
Slide 23: Balance sheet evolution
Ipsen’s Half Year 2007 Results Balance sheet evolution in million euros Assets in million euros Liabilities 31-dec-06 30-jun-07 31-dec-06 31-jun-07 Goodwill 188.8 188.8 Equity 726.5 756.8 Property, plans & equipments 198.2 199.7 Minority interests 1.4 1.7 Intangible assets 68.2 71.3 Long-term financ
Slide 24: Milestones cashed in but not yet recognised as revenues
Ipsen’s Half Year 2007 Results Milestones cashed in but not yet recognised as revenues Milestones cashed in before June 30, 2007 but not yet recognised as revenues (in million euros) June 30, 2007 June 30, 2006 Total cashed in : 192.7 94.3 These payments will be recognised in time as follows: H2 200