Sanofi Sa · EURONEXT:SAN
Sanofi Sa — Q4 2020 Earnings Presentation
30 slides from Sanofi Sa's earnings presentation, Feb 5, 2021
Slide 1: Q4 and Full Year 2020 Results
Q4 and Full Year 2020 Results Play to Win February 5, 2021
Slide 2: Forward looking statements
Forward looking statements This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlyin
Slide 3: Agenda
Agenda Introduction Paul Hudson Chief Executive Officer Bill Sibold Specialty Care Thomas Triomphe Vaccines Business update Olivier Charmeil General Medicines Julie Van Ongevalle Consumer Healthcare Financial results Jean-Baptiste de Chatillon Chief Financial Officer Q&A session 3
Slide 4: 'Play to Win' strategy sets off expected new growth phase
‘Play to Win’ strategy sets off expected new growth phase Company sales growth Key sales drivers in 2020 3.3% • Dupixent® now #1 Sanofi product by sales, +74% • Influenza vaccine sales crossed €2bn mark, +38% €36bn • Growth across all Specialty Care franchises, +22% • China VBP and COVID lowered Gen
Slide 5: Q4 financial performance fueled by core growth drivers
Q4 financial performance fueled by core growth drivers Sales and EPS growth Dupixent® sales strong Vaccines up double-digit Record flu sales Company Sales +4.2% €982m Q4 2020 €9,382m €2,060m +15% €1,908m Q4 2019 €9,608m Flu €679m +54% +25% Business EPS +9.8% Q4 2020 €1.22 Q4 2019 €1.22 Q4 2019 Q4 20
Slide 6: Dupixent – €1.5bn of sales added in one year
Dupixent® – €1.5bn of sales added in one year Global Dupixent® quarterly sales (€m) • Outstanding Q4 performance despite COVID-19 €3.5bn Ex-U.S. • In-office patient visits not at pre-COVID levels U.S. COVID environment 982 • U.S. patient visits continue to be ~80%(1) pre-COVID levels 918 €2.1bn 858
Slide 7: Dupixent – consistent quarterly growth among leading dermatology biologics
Dupixent® – impressive and consistent quarter after quarter growth among leading dermatology biologics in 2020 U.S. quarterly reported sales in USD(1) • Powerful commercial execution and agility • Unique and well-established profile Dupixent • Selectively blocks IL-4 and IL-13 signaling • Type 2 pat
Slide 8: Specialty Care – double-digit growth driven by Dupixent
Specialty Care – double-digit growth driven by Dupixent® Specialty Care Q4 2020 sales growth (+18%) by franchise • Dupixent® strong growth across current indications • Oncology performance driven by new launches Dupixent® +54% • Rare Blood Disorder supported by sales to Sobi Oncology +25% • Rare Dis
Slide 9: Vaccines – broad portfolio secured Q4 double-digit growth
Vaccines – broad portfolio secured Q4 double-digit growth Q4 2020 Vaccine sales • Continued strong growth of influenza sales, +25% • PPH (+20%) due to Hexaxim® geographic expansion €2,060m +15% €1,908m and favorable phasing of polio sales €338m, -16% Meningitis / Travel / Adult Booster / Other(2) €4
Slide 10: Differentiated flu vaccines sets up a new standard
Differentiated flu vaccines sets up a new standard Flu Vaccines sales 2016-2020 • 2020 record influenza sales of €2.5bn, up 38% • >250 million doses shipped worldwide, up >20% +13% €2,472m • Fluzone® HD QIV launched in the U.S. CAGR • Europe up 94% due to coverage rate acceleration and 100% conversi
Slide 11: General Medicines – China returned to growth in Q4
General Medicines – China returned to growth in Q4 Successful China VBP bidding strategy • China General Medicines sales up 4% in Q4 Plavix®/CoAprovel® volume up >60% (millions of boxes) • VBP products, Plavix® and Aprovel® family, up 7% • Toujeo® launched in November 2020 +78% • Global Diabetes sal
Slide 12: CHC – Allergy, Digestive and Nutritional grew in the U.S.
CHC – Allergy, Digestive and Nutritional grew in the U.S. Q4 2020 CHC sales by category • U.S. Allergy franchise sales up 13% €1,029m, -3% • Allegra® (+12%) and Xyzal® (+17%) €145m -2% Other • Global Digestive franchise sales up 9% Allergy, Cough & €220m • Essentiale® (+31%) and Dulcolax® (+21%) Col
Slide 13: Sanofi pioneers sustainable finance in the pharma sector
Sanofi pioneers sustainable finance in the pharma sector First sustainability-linked revolving credit facilities for a total amount of €8 billion Affordable access R&D for unmet needs Efficiency&Sustainability Beyond the work place • Contribute to Polio • Reduce Sanofi’s carbon eradication footprint
Slide 14: BOI grew 990 basis points in Q4
BOI grew 990 basis points in Q4 €m % Change Q4 2020 Q4 2019(1) (CER) Q4 earnings drivers Net Sales 9,382 9,608 +4.2% • Top-line growth drives BOI margin Other revenues 354 409 -7.1% improvement Gross Profit 6,298 6,560 +2.5% • Lower gross margin due to U.S. diabetes Gross margin % 67.1% 68.3% true-u
Slide 15: 2020 BOI margin up 120bps, trending towards 2022 target
2020 BOI margin up 120bps, trending towards 2022 target €m FY 2020 FY 2019(1) % Change (CER) Net Sales 36,041 36,126 +3.3% Other revenues 1,328 1,505 -9.5% Gross Profit 25,265 25,658 +1.7% Gross margin % 70.1% 71.0% R&D (5,529) (6,018) -6.8% SG&A (9,390) (9,883) -2.4% Operating Expenses 14,919 15,90
Slide 16: 60% of €1.7 billion total savings reinvested in 2020
60% of €1.7 billion total savings reinvested in 2020 €1bn target €1bn target Target remaining Additional €500m target to COVID related be reinvested Efficiencies realized in FY 2020 €500m target €230m Over- achieved Achieved €386m in 2020 in 2020 (€564m) Prioritization Smart spending Operational exc
Slide 17: Free Cash Flows grew to €7.0bn in 2020
Free Cash Flows grew to €7.0bn in 2020 Free Cash Flow(1) evolution +71% Free Cash Flow(1) growth drivers €7.0bn €6.0bn • Business performance • Smart spending initiatives One-off benefits • €512m increase in asset disposals(2) €4.1bn • - €486m impact from foreign currency FY 2018 FY 2019 FY 2020 (1)
Slide 18: Proposal for 27th consecutive increase in annual dividend
Proposal for 27th consecutive increase in annual dividend Evolution of dividend(1) • Proposed dividend of €3.20 represents a €3.20 €0.05 per share increase over 2019 • Implies a dividend yield of 4.0%(2) and pay-out ratio of 54.6%(3) 1993 2020 Progressive dividend growth is a core part of our value
Slide 19: FY 2021 business EPS guidance
FY 2021 business EPS guidance High Business EPS single-digit at CER(1,2) growth FX impact Approximately -4.5% to -5.5%(3) on business EPS based on January 2021 average exchange rates (1) Compared to FY2020 and barring major unforeseen adverse events (2) Base for FY 2020 Business EPS growth is €5.86
Slide 20: Q&A session
Q&A session Paul Hudson Jean-Baptiste de Chatillon CEO CFO Olivier Charmeil Karen Linehan General Medicines Legal Affairs and General Counsel Julie van Ongevalle John Reed Consumer Healthcare R&D Bill Sibold Thomas Triomphe Specialty Care Vaccines 20
Slide 21: Financial appendices
Financial appendices Q4-FY 2020 Results February 5, 2021
Slide 22: Q4 sales and EPS impacted by weakening U.S. dollar and Emerging Markets currencies
Q4 sales and EPS impacted by continued weakening of U.S. dollar and Emerging Markets currencies Currency impact Company sales(1) Business EPS -€628m -€0.12 -6.6% -9.8% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2019 2020 2019 2020 (1) Main currency impact on Company Sales in Q4 2020: US Dollar (-€279m), Brazilia
Slide 23: Net debt evolution in FY 2020
Net debt evolution in FY 2020(1) €489m €822m €3,937m -€6,982m -€10,370m €15,107m €5,786m €8,789m Net Debt Sale of Acquisitions Dividend Share Other(6) Free Cash Net Debt December 31, Regeneron & Licences(5) buybacks Flow(7) December 30, 2019(2,3) Shares(4) 2020(2) (1) Credit ratings reaffirmed: Mood
Slide 24: 2021 currency sensitivity and Q4 2020 currency exposure
2021 currency sensitivity and Q4 2020 currency exposure 2021 Business EPS Currency Sensitivity Currency Variation Business EPS Sensitivity U.S. Dollar + 0.05 USD/EUR - EUR 0.13 Japanese Yen + 5 JPY/EUR - EUR 0.02 Chinese Yuan + 0.2 CNY/EUR - EUR 0.02 Brazilian Real + 0.4 BRL/EUR - EUR 0.01 Russian R
Slide 25: R&D appendices
R&D appendices Q4-FY 2020 Results February 5, 2021
Slide 26: Expected 2021 R&D key timelines
Expected 2021 R&D key timelines Achieved Product Milestones Comment / Missed(1) avalglucosidase alfa U.S. regulatory decision, PDUFA May 18 (Pompe disease) Fast track designation, BTD, Priority review Libtayo®(2) U.S. regulatory decision, PDUFA Feb 28 (1L NSCLC PD-L1 >50%) Priority review Libtayo®(2
Slide 27: R&D Pipeline – Phase III & Registration
R&D Pipeline – Phase III & Registration Registration Phase III Name Description Indication Name Description Indication amcenestrant(7) SERD + palbociclib 1L Metastatic Breast Cancer Libtayo®(1) Anti-PD-1 mAb monotherapy 1L NSCLC Libtayo®(1) Anti-PD-1 mAb + chemotherapy 1L NSCLC Libtayo®(1) Anti-PD-1
Slide 28: R&D Pipeline – Phase I & II
R&D Pipeline – Phase I & II Phase I Phase II Name Description Indication Name Description Indication SAR439459 Anti-TGFb mAb Advanced Solid Tumors R amcenestrant(1) SERD Metastatic Breast Cancer 2/3L SAR440234 T cell engaging multi specific mAb Leukemia amcenestrant(1) SERD Early Breast Cancer SAR44
Slide 29: Additional Indications
Expected submission timelines(1) venglustat ADPKD amcenestrant(4) SP0253(5, 13) rilzabrutinib fitusiran(13) NMEs 2/3L mBC COVID-19 Pemphigus Hemophilia A/B tusamitamab olipudase alfa mRNA vaccine(6, 13) efanesoctocog alfa(7) nirsevimab(9) tolebrutinib(8) itepekimab(3) ravtansine(12) ASMD ad+ped COVI
Slide 30: COVID-19 vaccine candidates to start studies in Q1 2021
COVID-19 vaccine candidates to start studies in Q1 2021 Platform Updates and expected upcoming milestones • Phase 1/2 study interim results published as a preprint(3) • Phase 2 to start in February 2021 Recombinant • Phase 3 to start Q2 2021 1 protein approach(1) • Regulatory submissions expected to