H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Shareholder Meeting (March 2018)
36 slides from H. Lundbeck A/s Class A's shareholder meeting presentation, Mar 20, 2018
Slide 1: 2018 Annual General Meeting H. Lundbeck A/S
2018 ANNUAL GENERAL MEETING H. LUNDBECK A/S 20 March 2018
Slide 2: Welcome
Welcome LARS SØREN RASMUSSEN Chairman of the Board of Directors 2
Slide 3: Executive Management
Executive Management ANDERS ANDERS GERSEL PETER JACOB TOLSTRUP LARS BANG GÖTZSCHE PEDERSEN ANASTASIOU 3
Slide 4: Update regarding appointment of new CEO
Update regarding appointment of new CEO Kåre Schultz resigned as CEO in September 2017 and left Lundbeck in October 2017 Anders Götzsche was appointed interim CEO per November 2017 The search for a new CEO is ongoing and will be concluded as soon as possible 4
Slide 5: Board of Directors
Board of Directors LARS SØREN LENE SKOLE- JEREMY MAX LEVIN MONA ELISABETH RASMUSSEN SØRENSEN ELSTER LARS ERIK HENRIK SINDAL JØRN MØLLER JENS JESPER OVESEN HOLMQVIST JENSEN MAYNTZHUSEN 5
Slide 6: Newly elected employee representatives
Newly elected employee representatives LUDOVIC TRANHOLM RIKKE KRUSE JØRN MØLLER OTTERBEIN ANDREASEN MAYNTZHUSEN 6
Slide 7: Agenda
Agenda 1. Report of the Board of Directors on the Company's activities during the past year 2. Presentation and approval of the annual report 3. Resolution on the appropriation of profit or loss as recorded in the adopted annual report 4. Election of members to the Board of Directors 5. Approval of
Slide 8: Report from the Board of Directors and 2017 Annual Report
Item 1 and 2: Report from the Board of Directors and 2017 Annual Report LARS SØREN RASMUSSEN Chairman of the Board of Directors 8
Slide 9: Best financial results in the history of Lundbeck
Best financial results in the history of Lundbeck 9
Slide 10: Solid growth in key products and geographic split
Solid growth in key products and geographic split Key products Revenue distribution* (2017 vs. 2016 - DKKm) (regional split) 10,000 +36% 1,247 7,500 Europe (-3%) 3,022 5,000 Int. Markets North 1,644 (+2%) America (+17%) 2,500 1,662 1,331 0 2014 2015 2016 2017 *) Excluding Other revenue Rexulti North
Slide 11: Lundbeck's value chain
Lundbeck’s value chain 1. Research 5. Sales 2. Drug development 4. Marketing 3. Production 11
Slide 12: Research & Development in Lundbeck
Research & Development in Lundbeck Innovation focused across four key disease areas Depression Schizophrenia Alzheimer’s disease Parkinson’s disease 12
Slide 13: Global disease burden
Global disease burden 21 million 6 million people worldwide are living with people worldwide are living with schizophrenia Parkinson’s disease 300 million 50 million people worldwide are living with people worldwide are living with depression Alzheimer’s disease and other dementias 13
Slide 14: 50 million patients
Lundbeck’s patient footprint Lundbeck’s legacy portfolio of invented products helps 50 million patients Lundbeck Generics 14
Slide 15: 2017 financial performance aligned with expectations
2017 financial performance aligned with expectations Guidance Reported Reported Index 2017 2017 2016 DKKbn DKKm DKKm Revenue 16.9 - 17.4 17,234 15,634 110 EBIT 4.3 - 4.6 4,408* 2,292 192 EBIT margin 25.6%* 14.7% *Includes gain from divestment of properties of DKK 242 million. Excluding this, the EBI
Slide 16: Financial results
Financial results DKKm 2017 2016 Index Revenue 17,234 15,634 110 Cost of sales 3,881 4,082 95 Sales and distribution costs 5,649 5,488 103 Administrative expenses 833 805 103 Research and development costs 2,705 2,967 91 Other operating income 242 0 N/A Profit from operations (EBIT) 4,408 2,292 192
Slide 17: Cash flow
Cash flow DKKm 2017 2016 Cash flows from operating activities 4,045 3,126 Cash flows from investing activities (1,830) (337) Cash flows from operating and investing activities (free cash 2,215 2,789 flow) Cash flows from financing activities (2,235) (2,006) Net cash flow for the year (20) 783 Cash,
Slide 18: Balance sheet and net interest-bearing cash
Balance sheet and net interest-bearing cash DKKm 2017 2016 Intangible assets 7,565 8,839 Other non-current assets 3,347 3,847 Current assets 8,844 7,524 Assets 19,756 20,210 Equity 12,181 9,694 Non-current liabilities 1,096 2,740 Current liabilities 6,479 7,776 Equity and liabilities 19,756 20,210 C
Slide 19: 2018 financial outlook
2018 financial outlook DKKbn 2016 2017 2018 guidance Growth Revenue 15.6 17.2 17.2 - 18.0 0-5% EBIT 2.3 4.4 4.8 - 5.2 9-18% EBIT margin 14.7% 25.6%* ~27-30% - *) Adjusted for gains from divestment of properties of DKK 242 million, the EBIT margin was 24.2% 19
Slide 20: Long-term financial targets
Long-term financial targets EBIT margin ROIC Cash to earnings 25% 25% >90% 2017: 24.2%* 30.8% 141.8% *Excluding gain from divestment of properties 20
Slide 21: Item 2: Approval of the annual report
ITEM 2: APPROVAL OF THE ANNUAL REPORT 21
Slide 22: Item 3: Resolution on the appropriation of profit or loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS 22
Slide 23: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2017 Share Profit for the year 2,624 Transfer to distributable reserves 1,032 39% Proposed dividends for the year 1,592 61% Proposed dividend per share (DKK) 8.00 23
Slide 24: Item 4: Election of members to the Board of Directors
ITEM 4: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS 24
Slide 25: Members of the Board of Directors - elected at the 2017 AGM
Members of the Board of Directors - elected at the 2017 AGM Remuneration Audit Scientific Members Independent Committee Committee Committee Lars Søren Rasmussen, Chairman Yes √C √ Lene Skole-Sørensen, Deputy Chairman No √ √ Jens Jesper Ovesen Yes √C Lars Erik Holmqvist No √ Jeremy Max Levin Yes √C H
Slide 26: Members of the Board of Directors - proposed for election at the 2018 AGM
Members of the Board of Directors - proposed for election at the 2018 AGM Members Independent Lars Søren Rasmussen Yes Lene Skole-Sørensen No Henrik Andersen Yes Lars Erik Holmqvist No Jeremy Max Levin Yes Jeffrey Berkowitz Yes Ludovic Tranholm Otterbein Members elected by the Rikke Kruse Andreasen
Slide 27: Election of board members
Item 4: Election of board members LARS SØREN LENE SKOLE- HENRIK ANDERSEN RASMUSSEN SØRENSEN LARS ERIK HOLMQVIST JEREMY MAX LEVIN JEFFREY BERKOWITZ 27
Slide 28: Item 5: Approval of remuneration
ITEM 5: APPROVAL OF REMUNERATION 28
Slide 29: Approval of remuneration
Item 5: Approval of remuneration Approval of remuneration for the Board of Directors for the current financial year Board of Directors Current Proposal DKK Members of the Board 350,000 350,000 Deputy Chairman 700,000 700,000 Chairman 1,050,000 1,050,000 Committees Current Proposal DKK Members of the
Slide 30: Item 6: Election of state-authorized public accountants
ITEM 6: ELECTION OF STATE-AUTHORIZED PUBLIC ACCOUNTANTS 30
Slide 31: Election of State-Authorized Public Accountants
Item 6: Election of State-Authorized Public Accountants Deloitte, Statsautoriseret Revisionspartnerselskab Erik Holst Jørgensen Sumit Sudan State-Authorized Public Accountant State-Authorized Public Accountant 31
Slide 32: Item 7: Proposals from shareholders or the Board of Directors
ITEM 7: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS 32
Slide 33: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.1. Acquisition of own shares - It is proposed to authorise the Board of Directors until the next annual general meeting to allow the Company to acquire own shares of a total nominal value of up to 10% of the share capital in accordance
Slide 34: Proposals from shareholders or the Board of Directors
Item 7: Proposals from shareholders or the Board of Directors 7.2. Registration of the adopted amendments - The Board of Directors proposes to authorise the Chairman of the general meeting to make such amendments and additions to the resolutions passed by the general meeting and the application for
Slide 35: Item 8: Any other business
ITEM 8: ANY OTHER BUSINESS 35
Slide 36: Thank you and goodbye
THANK YOU AND GOODBYE See you at next year’s Annual General Meeting 2018 ANNUAL GENERAL MEETING H. LUNDBECK A/S 20 March 2018