Slide 1: H1 2019 Results
H1 2019 Results July 25, 2019 Marin Living with fibrodysplasia ossificans progressiva Hamilton, Canada
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 2019 Overview David Meek Chief Executive Officer 02 H1 2019 Financial Performance/ Aymeric Le Chatelier 2019 Financial Guidance Chief Financial Officer 03 Conclusion David Meek Chief Executive Officer 04 Q&A David Meek Aymeric Le Chatelier 3
Slide 4: H1 2019 Overview
01 H1 2019 Overview David Meek Chief Executive Officer
Slide 5: Delivering on growth strategy in H1 2019
Delivering on growth strategy in H1 2019 ▪ Group sales growth of +14.3%1 driven by Specialty Care growth of +16.9%1 ✓ Top line ▪ Strong performance across all major Specialty Care products and geographies ▪ Core Operating Income growth of +20.1% and margin expansion to 31.5% ✓ Bottom line ▪ Sales gr
Slide 6: Leading global biopharma focused on innovation and Specialty Care
Leading global biopharma focused on innovation and Specialty Care Sales by therapeutic area Sales by geography H1 2019 sales by therapeutic area H1 2019 sales by geographical area Neuroscience Rare Diseases North 15% America Specialty 3% Consumer 29% Care Healthcare Europe 11% 11% EU5 89% 35% 72% 19
Slide 7: Oncology representing 72% of sales, growing by +20.7%
Oncology representing 72% of sales, growing by +20.7% 1 ▪ Strong global momentum and new patient market share ▪ TKI of choice in 2L RCC, growing market share in 2L+ growing worldwide 9 countries reimbursed for 1L RCC, 5 countries launched in 2L HCC ▪ New delivery system approved in the U.S. in Q2 20
Slide 8: Neuroscience: Dysport growth of +6.8% and advancing pipeline
Neuroscience: Dysport ® growth of +6.8% 1 and advancing pipeline Commercial highlights Pipeline highlights Therapeutics Mid-stage programs ▪ Strong momentum in the U.S. with more targeted ▪ Two Phase 2 trials for new indications with significant approach and commercial partnership unmet need and no
Slide 9: Rare Diseases franchise strengthened with palovarotene
Rare Diseases franchise strengthened with palovarotene Transaction highlights Regulatory highlights Clementia transaction closed 17 April, adding strong Regulatory submission for palovarotene for episodic anchor asset palovarotene to Rare Diseases portfolio FOP on track for H2 2019 ▪ Regulatory deci
Slide 10: Multiple value-driving and differentiated pipeline opportunities
Multiple value-driving and differentiated pipeline opportunities Five new chemical entities in the clinic - Nine regulatory submissions planned from 2019 to 2022 Preclinical Phase I Phase II Phase III Registration 177Lu-IPN-01072 68Ga-IPN-01070 Longer-acting toxin (Satoreotide Tetraxetan) (Satoreoti
Slide 11: 2019 R&D milestones
2019 R&D milestones IPN 60090 Fast-acting neurotoxin Fast-acting neurotoxin Satoreotide Program (MD Anderson) Phase 2 Phase 2 Phase 1 advancements Phase 1 Glabellar lines Spasticity Non-NET ✓ Top-line Onivyde® Phase 2 Onivyde® Satoreotide 1L PDAC Phase 2 Phase 2 GEP- results NET (interim) ✓ 2L SCLC
Slide 12: Financials
02 Financials Aymeric Le Chatelier Chief Financial Officer
Slide 13: H1 2019 sales growth driven by Specialty Care
H1 2019 sales growth driven by Specialty Care Group sales Net sales of key products in H1 2019 in million euros – % excluding foreign exchange impact €1,230m Somatuline® +15% +14.3%1 479 Specialty Care Decapeptyl® 198 +8% Cabometyx® 112 +80% Specialty Care sales Onivyde® 74 +42% €1,100m +16.9%1 Dysp
Slide 14: H1 2019 highlights for key products
H1 2019 highlights for key products Established Specialty Care Specialty Care launches Consumer Healthcare (CHC) Somatuline® Cabometyx® Smecta® ▪ +20% growth in North America driven ▪ Growing sales and market ▪ Lower sales in Q2 due to the by volume and market share share in Europe in 2L RCC and new
Slide 15: Positive impact of foreign exchange in H1 2019
Positive impact of foreign exchange in H1 2019 59% of sales in non-EUR currencies Currency evolution in H1 2019, including USD now 33% of sales USD revaluation of +7% H1 2019 sales by currency Average rates change (H1 2019 vs. H1 2018) … 7% Other1 1% 1% EUR GBP 17,0% -3% 4,3% -5% 40,8% CNY 5,0% USD
Slide 16: Investments focused on pipeline and commercial support
Investments focused on pipeline and commercial support COGS (€m) R&D (€m) +9.5% +24.5% 176.3 216.4 236.9 141.6 20.3% 19.3% 13.3% 14.3% H1 2018 H1 2019 H1 2018 H1 2019 Positive mix effect from growing Specialty Care business Significant investment to support advancement of internal pipeline offset by
Slide 17: Operating leverage driving margin expansion
Operating leverage driving margin expansion -1.2pts -0.2pts -0.2pts +3.7pts Clementia Consumer Unallocated Healthcare -0.9pts FX 31.5% Specialty Care1 30.3% H1 2018 H1 2018 SC Base SC Clementia Consumer Unallocated FX H1 H12019 2019 Business Healthcare Group margin expansion driven by Specialty Care
Slide 18: Core Operating Income to EPS
Core Operating Income to EPS In €m H1 2019 H1 2018 Change % Change Net sales 1,229.6 1,064.5 +165.1 +15.5% Sales growth at +15.5% (+14.3% at constant currency and consolidation scope) Core Operating Income 387.5 322.5 +65.0 +20.1% Core operating margin 31.5% 30.3% +1.2pts Core Operating Income +20.1
Slide 19: H1 2019 Net debt at €1.5 billion after acquisition of Clementia
H1 2019 Net debt at €1.5 billion after acquisition of Clementia In €m -1,058 -28 -431 Free Cash Flow: €101m 1,500 -188 +430 -84 -104 -96 -129 243 Net Restructuring, Dividends Net Share June December IFRS 16 EBITDA Change in Financial, Tax & working capex investments buyback 2018 Other & Other1 2019
Slide 20: Upgraded 2019 guidance based on strong performance of Specialty Care
Upgraded 2019 guidance based on strong performance of Specialty Care Sales growth > +14.0% at constant currency and consolidation scope (from > +13.0%) ▪ Impact of currencies estimated at +1.5% based on the current level of exchange rates ▪ Impact of consolidation scope reflecting the consolidation
Slide 21: Key H1 2019 financial takeaways
Key H1 2019 financial takeaways ▪ Group sales growth at +14.3%1 driven by the strong performance of the Specialty Care business ▪ Core Operating Income growing by +20.1% and Core Operating margin reaching 31.5% of sales, up +1.2 pts ▪ Net Income increased by +11.8% ▪ Net Debt at €1.5 billion after a
Slide 22: Conclusion
03 Conclusion David Meek Chief Executive Officer
Slide 23: 2019 Objectives
2019 Objectives Growth Pipeline Culture Identify, execute Maximize growth and integrate and market share Continue Leverage Increase value of Drive further successful business worldwide for Consumer commercial the pipeline by transformation and development differentiated Healthcare capabilities and a
Slide 24: MERCI
MERCI Marin Living with fibrodysplasia ossificans progressiva Hamilton, Canada 24