Slide 1: Ipsen H1 2018 Results
Ipsen H1 2018 Results July 26, 2018
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 H1 2018 Overview David Meek Chief Executive Officer 02 H1 2018 Financial Performance/ Aymeric Le Chatelier 2018 Financial Guidance Chief Financial Officer 03 Conclusion David Meek Chief Executive Officer 04 Q&A 3
Slide 4: H1 2018 Overview
01 H1 2018 Overview David Meek Chief Executive Officer 4
Slide 5: Execution in H1 2018 to deliver our growth strategy
01 Execution in H1 2018 to deliver our growth strategy ▪ Group sales growth of +21.5%1 driven by Specialty Care growth of +26.7%1 Top line ▪ Strong Somatuline® momentum with market share gains worldwide ▪ Increasing contribution from Cabometyx® and Onivyde® launches ▪ Core Operating Income growth of
Slide 6: Somatuline outstanding performance worldwide
01 Somatuline ® outstanding performance worldwide Sales (€m) +26%1 Other +14%1 EU5 +13%1 N. America +41%1 U.S. - Driving 70%+ of global product growth H1 2016 H1 2017 H1 2018 Europe - Maintained sequential growth rate - Double-digit growth - Volume growth driven by increased - Increasing penetration
Slide 7: Focus on Oncology launch execution
01 Focus on Oncology launch execution Cabometyx® Onivyde® ▪ Successful launch with average 20%+1 ▪ Double-digit sequential growth in the U.S. sequential growth in H1 2018 ▪ Steadily increasing market share in 2L and ▪ Positioned as TKI of choice in 2L RCC with number of treatment cycles in 2L/3L inc
Slide 8: Dysport double-digit growth and gaining market share
01 Dysport ® double-digit growth and gaining market share Attractive botulinum toxin market: ▪ ~10% growth annually in both therapeutics and aesthetics markets for foreseeable future ▪ High barriers to entry with specialized and highly-regulated biologic and technical manufacturing process Therapeut
Slide 9: Building sustainable R&D pipeline
01 Building sustainable R&D pipeline Preclinical Phase I Phase II Phase III Registration 68Ga-IPN1070 (OPS202/ 68Ga-IPN1070 (OPS202/ Onivyde® Cabometyx® Cabometyx® Satoreotide Trizoxetan) and Satoreotide Trizoxetan) and PDAC 1L RCC 1L combination with HCC 2L 177Lu-IPN1072 (OPS201) 177Lu-IPN1072 (GEP
Slide 10: Key mid to late-stage life-cycle management programs
01 Key mid to late-stage life-cycle management programs Cabometyx® Onivyde® Dysport® 2L Hepatocellular Carcinoma (HCC) 1L metastatic pancreatic cancer Two new indications with no current ▪ EMA submission - March 2018 ▪ Phase 2 trial ongoing with top-line botulinum toxin or other therapeutic ▪ Regula
Slide 11: Early-stage pipeline highlights
01 Early-stage pipeline highlights Satoreotide (PRRT for NET) IPN1087 (TRT for PDAC) Fast/ long-acting neurotoxins • Potential best-in-class theranostic • Radiopharmaceutical theranostic • Fast-acting neurotoxin is first radiopharmaceutical for NET targeting tumors expressing published recombinant t
Slide 12: Externally sourcing innovation
01 Externally sourcing innovation H1 2018 Business Development Venture Capital achievements and incubator collaborations New Chief Business Officer and VC fund in Cambridge, strengthened team Massachusetts Strong balance sheet and cash flow generation with significant firepower Ambition ▪ Build inno
Slide 13: Financials
02 Financials Aymeric Le Chatelier Chief Financial Officer 13
Slide 14: H1 2018 sales growth driven by Specialty Care business
02 H1 2018 sales growth driven by Specialty Care business Group sales Net sales H1 2018 in million euros – % excluding foreign exchange impact €1,064.5m Somatuline® 403 +26% +21.5% Specialty Care Decapeptyl® 183 +9% Cabometyx® 62 Specialty Care Onivyde® 49 €920.2m +26.7% Dysport® 173 +13% Nutropin®
Slide 15: H1 2018 performance highlights for key products
02 H1 2018 performance highlights for key products Established Specialty Care Specialty Care launches Consumer Healthcare Somatuline® Cabometyx ® ▪ Smecta® growth driven by the • Continued volume growth and market • 20% sequential growth good performance in France, share expansion in the U.S. • Grow
Slide 16: Significant impact of foreign exchange in H1 2018
02 Significant impact of foreign exchange in H1 2018 54% of sales in non-EUR currencies Currency evolution in H1 2018, including USD now 29% of sales USD devaluation of -11% H1 2018 sales by currency Average rates change (H1 2018 vs. H1 2017) … Other1 -2% -4% 15% EUR GBP 4% -11% CNY 6% 46% -13% -17%
Slide 17: Investments focused on pipeline development and commercial support for launches
Investments focused on pipeline development and commercial support 02 for launches COGS (€m) R&D (€m) 216.4 189.0 126.1 141.6 126.1 141.6 20.6% 20.3% 13.3% 13.7% 1 1 H1 2017 H1 2018 H1 2017 H1 2018 Positive mix effect from growing Specialty Care business and Etiasa® Advancement of pipeline programs
Slide 18: Operating leverage driving significant margin expansion
02 Operating leverage driving significant margin expansion -0.1pt -0.8pts +0.7pts Consumer Healthcare Unallocated FX +4.3pts 30.3% Specialty 26.2% Care HY 2017 HY 2018 Specialty Care margin enhancement driven by Somatuline® growth, Cabometyx® and Onivyde® at Group margin Positive impact of currencie
Slide 19: Core Operating Income to EPS
02 Core Operating Income to EPS In €m H1 2018 H1 2017 Change % Change Net sales 1,064.5 919.5 +145.0 +15.8% Sales growth at +15.8% (+21.5% excluding negative impact of currencies) Core Operating Income 322.5 240.5 +82.0 +34.1% Core operating margin 30.3% 26.2% +4.1 pts Core Operating Income +34.1% A
Slide 20: Growing free cash flow and strong balance sheet
02 Growing free cash flow and strong balance sheet Free cash flow: €165m In €m -463 -438 -52 +348 -48 -1 -84 -83 -43 -13 December EBITDA Change in Net Restructuring Tax, BD & Share Dividends June 2018 2017 working capital capex Financial & Milestones buyback Other & Other Strong free cash flow of €1
Slide 21: FY 2018 guidance upgraded
02 FY 2018 guidance upgraded Previous FY 2018 Updated FY 2018 guidance guidance Sales growth at constant currency > +16.0% > +19.0% • Based on the strong momentum of the Specialty Care business • Sales growth should still be negatively impacted by approximately 4.0% based on the current level of exc
Slide 22: Key H1 2018 financial takeaways
02 Key H1 2018 financial takeaways ▪ Group sales growth at +21.5%1 driven by the strong performance of the Specialty Care business ▪ Core Operating Income growing by +34.1% and Core Operating Margin reaching 30.3% of sales, up +4.1 pts ▪ Solid cash flow conversion with free cash flow growing by +73%
Slide 23: Conclusion
03 Conclusion David Meek Chief Executive Officer 23
Slide 24: Ipsen roadmap well on track to deliver 2018
03 Ipsen roadmap well on track to deliver 2018 ▪ Accelerate growth of Specialty Care sales through established products and successful new product launches ▪ Build sustainable and innovative pipeline through transformation of R&D and external innovation model ▪ Leverage and expand capabilities throu
Slide 25: MERCI
MERCI 25