Csl Limited · ASX:CSL

Csl — H1 FY2018 Earnings Presentation

28 slides from Csl's earnings presentation, Feb 14, 2018

  1. Slide 1: Half Year Result 2018

    For personal use only For immediate release 14 February 2018 1 Half Year Result 2018 CSL Limited (ASX:CSL; USOTC:CSLLY) today announced a reported net profit after tax (NPAT) of $1,086 million for the six months ended 31 December 2017, up 35% or 31% on a constant currency (CC) 2 basis. Earnings per

  2. Slide 2: Innovation and Efficiency

    For personal use only Page 2 14 February 2018 Innovation • Privigen® (10% liquid IVIG) approved for CIDP in US • Hizentra® (SCIG) positive CHMP recommendation for CIDP in the EU • Proprietary stem cell gene therapy platform - Calimmune acquisition • Transplant franchise expanding – Vitaeris collabor

  3. Slide 3: Outlook (at FY17 exchange rates)

    For personal use only Page 3 14 February 2018 “Seqirus continues to progress as planned. The Holly Springs facility, which produces a unique cell culture seasonal influenza vaccine, quadrupled the number of FLUCELVAX® doses produced this season. While significant work remains, our strategy for Seqir

  4. Slide 4: Capital Management and Further Information

    For personal use only Page 4 14 February 2018 CAPITAL MANAGEMENT Capital management During the first half of FY18, CSL completed a US private placement raising approximately US$700 million for general corporate purposes, as part of the company’s overall capital management program. FURTHER INFORMATIO

  5. Slide 5: Group Results

    For personal use only Page 5 14 February 2018 Group Results Half year ended Dec Dec Dec Dec Change US$ Millions 2016 2017 2017 Reported Reported at CC 5 %5 Sales 3,553 3,999 3,941 11% Other Revenue / Income 124 148 147 Total Revenue / Income 3,677 4,147 4,088 11% Earnings before Interest, Tax, 1,226

  6. Slide 6: 2018 Half Year Results

    For personal use only 2018 Half Year Results 14 February 2018 Paul Perreault CEO & MD David Lamont CFO

  7. Slide 7: Legal Notice

    For personal use only Legal Notice 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 produ

  8. Slide 8: Delivering on Strategy

    For personal use only Delivering on Strategy Growth Innovation People & Culture • Privigen® approved for CIDP in US • Appointments • Ig sales up 13% on trailing period @ CC1 ‒ Bill Campbell – Commercial • Exceptionally strong HAEGARDA® launch • Hizentra® positive CHMP • IDELVION® fast becoming stand

  9. Slide 9: Growth: CSL Behring Revenue 1H18

    For personal use only Growth CSL Behring Revenue – 1H18 Therapeutic Group Region PCP1 TP1 Therapy 1H18 vs 1H18 vs 21% 1H17 2H17 EM Immunoglobulins 7.4% 12.6% 8% Haemophilia 5.1% 5.6% 11% Asia Pac Albumin 3.9% 8.3% 17% North 7% Specialty 20.4% 19.4% US$3.4b America 46% Other (23.3)% (40.0)% Total 8.1

  10. Slide 10: Strong Ig Growth

    For personal use only Growth Strong Ig Growth • Strong Ig growth, especially the US ‒ Up 13% on TP @ CC1 SCIG market leader (atypical market conditions 1H17) 7 years and 51 countries • CIDP is largest Ig indication 90,000 patient years ‒ Privigen® approved for CIDP in US ~5m exposures ‒ Hizentra® CI

  11. Slide 11: Haemophilia

    For personal use only Growth Haemophilia US IDELVION® PATIENT GROWTH 450 400 400 Wk 83 • Launched in 13 countries: exceptional growth 350 • Market leadership in a number of countries 300 Patient Counts 300 Wk 64 • Japan exceeding patient expectations 250 following 2 week prescription limit removed 2

  12. Slide 12: Specialty Products

    For personal use only Growth Specialty Products Very successful chronic drug launch in • Up 32% on PCP in US the US • Warfarin still in high use • Transformational product • Continued significant use of fresh • Natural C1-INH replacing missing or frozen plasma for reversal of bleeding dysfunctional

  13. Slide 13: Efficiency

    For personal use only Efficiency Efficiency Plasma Collections • Unparalleled growth in collection centre openings – on track • Latent efficiency gains in fleet as new centres mature • New Donor Management System rolled out • Plasma supply tightness continues Major capital projects - start-up phase

  14. Slide 14: Innovation

    For personal use only Innovation Innovation TRANSPLANT CIDP OTHER DEVELOPMENTS • Emerging franchise • Privigen® approved • Proprietary stem cell gene in US therapy platform - • High unmet need • Hizentra® Calimmune acquisition • Leverages existing products ‒ positive EU • CSL112 - Phase 3 study reco

  15. Slide 15: Seqirus Revenue 1H18

    For personal use only Influenza Seqirus Revenue – 1H18 $m By presentation @CC1 Region 800 700 EM 600 (37%) 500 Other Asia Pac Fluad 14% 400 TIV 300 QIV 68% 15% EU1H18 12% North 200 Pandemic US$0.8b America 100 70% 0 1 1H17 1H18CC Switch to QIV & Fluad creating revenue growth 1. Growth shown at const

  16. Slide 16: Seqirus – Operational Highlights

    For personal use only Influenza Seqirus – Operational Highlights • Approval of FLUAD in the UK ‒ The only recommended vaccine for 65+ in 2018/19 season • First use of cell-specific virus seed in production of FLUCELVAX • Holly Springs cell culture facility – output up four fold • Submission of cell-

  17. Slide 17: Financials

    For personal use only Financials David Lamont - CFO 12 | Driven by Our Promise™

  18. Slide 18: Financial Highlights - NPAT

    For personal use only Financial Highlights - NPAT 1,200 NPAT $1,086m +35% FX $31m NPAT $1,055m @CC1 $806m 800 +31% US$m @CC¹ 1H18 1H17 400 0 1 Constant Currency (CC) removes the impact of exchange rate movements facilitating comparability of operational performance. See end note for further detail.

  19. Slide 19: Financial Highlights - Group

    For personal use only Financial Highlights - Group Half year ended Dec 1H17 1H18 1H18 Change US$ Millions Reported Reported at CC1 % Total Revenue 3,677 4,147 4,088 11%1 EBIT 1,095 1,476 1,437 31%1 EBIT margin 29.8% 35.6% 35.1% NPAT 806 1,086 1,055 31%1 Cashflow from Ops 664 840 - 27% ROIC2 31.2% 32

  20. Slide 20: Financial Highlights - Segments

    For personal use only Financial Highlights - Segments CSL Behring Seqirus US$ 1H17 1H18 Change US$ 1H17 1H18 Change Millions Reported Reported % at CC1 Millions Reported Reported % at CC1 Sales 2,976 3,289 9% Sales 577 710 22% Other Rev. 81 67 (16%) Other Rev. 43 81 86% Total Rev. 3,057 3,356 8% Tot

  21. Slide 21: Margin Growth

    For personal use only Margin Growth % Margin drivers 50 • Ig mix shift 40 EBITDA Margin • Transition of Haemophilia portfolio 30 • Growth in speciality products 20 ‒ Haegarda® & Kcentra® • Uneven expenditure phasing 10 • Strong seasonal Seqirus performance 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 16 | D

  22. Slide 22: Debt Maturity Profile

    For personal use only Debt Maturity Profile $m 800 Private Placement New Private Placement New US$700m private placement 600 Bank Debt • Completed October 2017 • Weighted average fixed rate of 3.36% 400 • Average life of 13.1 years Total debt portfolio 200 • Weighted average rate of ~2.7% 0 FY18 FY1

  23. Slide 23: Outlook for FY18

    For personal use only Outlook for FY181 Innovation 2H1 NPAT updated to range ~$1,550m to $1,600m @ CC2,3 • Business environment expectations 2H18 CSL112 Phase 3 – Continued strong demand for plasma therapy products commencing – Transitioning of Haemophilia portfolio Hizentra® CIDP – Uneven expenditu

  24. Slide 24: Financial Appendix

    For personal use only Financial Appendix 19 | Driven by Our Promise™

  25. Slide 25: CSL Behring Sales

    For personal use only CSL Behring Sales Half year ended December Dec Dec Dec Change Growth US$ Millions 2016 2017 2017 %1 CC1 Efficiency Immunoglobulins 1,426 1,558 1,532 7% Albumin 433 452 450 4% Haemophilia Influenza - Recombinants 234 260 254 8% - Plasma 282 297 288 2% Specialty 588 717 708 20% I

  26. Slide 26: Seqirus Sales

    For personal use only Seqirus Sales Growth Half year ended December Dec Dec Dec Change US$ Millions 2016 2017 2017 %1 CC1 Efficiency QIV 51 308 308 504% TIV 317 171 168 -47% Influenza Adjuvanted 56 131 129 130% Pandemic 41 60 59 44% Other / In-licence 155 121 120 -23% Innovation Total Revenue 620 79

  27. Slide 27: Notes

    For personal use only Notes (#) Constant currency removes the impact of exchange rate movements to facilitate comparability of operational performance for the Group. This is done in three parts: a) by converting the current year net profit of entities in the group that have reporting currencies othe

  28. Slide 28: CSL Limited Contact

    For personal use only CSL Limited Contact: Mark Dehring VP Investor Relations Ph: +61 3 9389 3407 E: mark.dehring@csl.com.au 23 | Driven by Our Promise™

CSL — H1 FY2018 Earnings Presentation on 6ix