Roche Holding Ltd · SIX:RO
Roche — FY2022 Earnings Presentation
34 slides from Roche's earnings presentation, Feb 2, 2023
Slide 1: Forward-looking statements
This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other things, str
Slide 2: 2022 results – Media Conference
Roche 2022 results – Media Conference Basel, 2 February 2023
Slide 3: Group – Severin Schwan, CEO
Group Severin Schwan Chief Executive Officer
Slide 4: Good sales growth in both divisions despite COVID-19 headwinds
2022: Good sales growth in both divisions despite COVID-19 headwinds 2022 2021 Change in % CHFbn CHFbn CHF CER Pharmaceuticals Division 45.6 45.0 1 2 Diagnostics Division 17.7 17.8 0 3 Roche Group 63.3 62.8 1 2 CER=Constant Exchange Rates; totals may include differences due to rounding 4
Slide 5: 2022: Guidance achieved
2022: Guidance achieved Targets for 2022 FY 2022 Group sales growth1 Stable- to low-single digit +2% Core EPS growth1 Low- to mid-single digit +5% Dividend outlook Further increase dividend in Swiss francs2 CHF 9.50 1 At constant exchange rates (CER); 2 2022 dividend as proposed by the Board of Dire
Slide 6: Quarterly sales performance: COVID-19 sales declining
Quarterly sales performance: COVID-19 sales declining 15% 14%* 13% 12% 11% 10% 9% 9% 7% 7% 7% 6% 6% 6% 6% 6% 8% 8% 7% 4% 5% 4% 6% 5% 5% 4% 4% 1% 3% 3% 3% 1% 0% 0% -5% -4% -6% -10% AHR1 impact -15% COVID-19 impact Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 7: Pharma and Diagnostics underlying business driving growth
2022: Pharma and Diagnostics underlying business driving growth CHFm +2% at CER Diversification of Roche business +273 2017 2022 + 3’356 -801 -1,883 + 903 CHF 53.3bn CHF 63.3bn -457 -911 AHR Total COVID-19 sales decline equals roughly 1bn AHR 62’801 63’281 Diagnostics Oncology Other pharma Immunolog
Slide 8: 2023: Upcoming newsflow
2023: Upcoming newsflow Pharma Diagnostics Tiragolumab + Tecentriq in 1L PDL1+ NSCLC Glofitamab + GemOx in 2L+ DLBCL Modular transportation system, integrated CCM Vertical into existing cobas connection modules Tiragolumab + Tecentriq + chemo in 1L Lunsumio + Polivy in 2L+ DLBCL* Esophageal Flexible
Slide 9: 2023 sales outlook
2023 sales outlook Sales drivers1 Pharma: Key products with strong growth and momentum from ongoing launches Diagnostics: Base business with solid growth Group sales growth1 Low single digit decline COVID-19 sales for Diagnostics and Pharma expected to decline by roughly CHF 5bn AHR2 sales expected
Slide 10: 2023 outlook
2023 outlook Group sales growth1 • Low single digit decline Core EPS growth1 • Broadly in line with sales decline Dividend outlook • Further increase dividend in Swiss francs 1 At Constant Exchange Rates (CER) 10
Slide 11: Pharmaceuticals Division – Thomas Schinecker
Pharmaceuticals Division Thomas Schinecker CEO Roche Pharmaceuticals
Slide 12: Two new Corporate Executive Committee Members
Two new Corporate Executive Committee Members CEO of Roche Pharmaceuticals and Chief Medical Officer Teresa Graham Levi Garraway CEO Roche Pharmaceuticals CMO & Head Global Product Development 12
Slide 13: Pharmaceuticals Division sales growth
2022: Pharmaceuticals Division sales growth New products compensate for loss-of-exclusivity and COVID-19 sales decline 2022 2021 Change in % CHFm CHFm CHF CER Pharmaceuticals Division 45,551 45,041 1 2 United States 23,322 22,505 4 -1 Europe 8,143 8,876 -8 -2 Japan 4,949 4,506 10 26 International 9,
Slide 14: Portfolio diversification accelerating
2022: Portfolio diversification accelerating Currently 16 blockbusters, with Vabysmo and Phesgo emerging Ocrevus 17% Hemlibra 27% Vabysmo n/a Evrysdi 87% Tecentriq 14% Phesgo 121% Ronapreve 17% Polivy 85% Alecensa 15% Perjeta 5% Xolair 9% Kadcyla 7% Enspryng 93% Xofluza >500% Gazyva 9% Tamiflu 80% U
Slide 15: Polivy in 1L DLBCL: First new treatment in >20 years
Polivy in 1L DLBCL: First new treatment in >20 years Included in NCCN guideline as category 1*; NICE reimbursement obtained** Ph III (POLARIX) results PFS strongly predicts OS outcomes1 PFS • Updated Ph III (POLARIX) results: median follow-up 39.7 months demonstrated sustained PFS benefit in Pola-R-
Slide 16: Lunsumio & glofitamab: Expanding into earlier lines of treatment
Lunsumio & glofitamab: Expanding into earlier lines of treatment Off-the-shelf, fixed duration with durable responses and manageable safety Product profile Key clinical trials Regimen Indication Ph I Ph II Ph III • High CR rate and durable responses Lunsumio 3L+ FL US/EU approved • Favorable tolerab
Slide 17: Ophthalmology: Adding new indications
Ophthalmology: Adding new indications Positive Ph III results to be presented at Angiogenesis Vabsymo in RVO Susvimo in DME Susvimo in DR Ph III (BALATON/COMINO) Ph III (PAGODA) Ph III (PAVILION) Week Day 1 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 Arm A Faricimab 6.0 mg 6x Q4W followed by
Slide 18: SRP-9001 in DMD: Pivotal Ph III results expected at year-end
SRP-9001 in DMD: Pivotal Ph III results expected at year-end First and potential best-in-class gene therapy Delandistrogene moxeparvovec Clinical trial program overview Study DMD subgroup Ph I Ph II Ph III Comment 101 Ambulatory, 4-7 yrs. US filing by Sarepta 102 Ambulatory, 4-7 yrs. US filing by Sa
Slide 19: Diagnostics Division – Matt Sause
Diagnostics Division Matt Sause CEO Roche Diagnostics
Slide 20: Diagnostics Division sales
2022: Diagnostics Division sales Sales increase of +3% driven by base business offsetting COVID-19 testing decline 2022 2021 Change in % CHFm CHFm CHF CER Diagnostics Division 17,730 17,760 0 3 Core Lab1 7,775 7,560 3 6 Point of Care1 3,589 3,134 15 17 Molecular Lab1 3,450 4,174 -17 -15 Diabetes Car
Slide 21: Diagnostics Division highlights
2022: Diagnostics Division highlights Strong growth despite a high base in 2021 CHFbn YoY CER growth • Immunodiagnostics (+7%) Core Lab1,3 +6% • Clinical Chemistry (+9%) • Custom biotech (-7%) • POC Immunodiagnostics (+22%) Point of Care3 +17% • POC Molecular3 (+22%) • Virology (-20%) Molecular Lab3
Slide 22: Diagnostics Division sales growth by quarter
Diagnostics Division sales growth by quarter Strong base business growth Diagnostics Division sales growth 55% Base business sales growth 1 48% 28% 31% 24% 18% 17% 18% 9% 10% 8% 5% 7% 2% 3% 1% -2% 11% -5% 8% -4% 0% -9% -17% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 0.1b
Slide 23: FDA emergency use authorization for the mpox assay
FDA emergency use authorization for the mpox assay Running on cobas® 6800/8800 high throughput platforms Throughput • May 2022: Launch of LightMix® modular virus kits for the detection cobas® 6800 cobas® 8800 of the mpox virus (on LightCycler instruments) • November 2022: Received FDA EUA for the mp
Slide 24: STRONG-HF trial stopped early due to superior efficacy
STRONG-HF1 trial stopped early due to superior efficacy2 Significant reduction of hospitalizations or mortality in heart failure Evaluate the efficacy and safety of rapid up‐titration of oral HF therapy, supported by NT-proBNP monitoring2,3,4 Disease burden Study set up6 6 tests per patient of NT-pr
Slide 25: Elecsys Amyloid Plasma Panel clinical results
Elecsys® Amyloid Plasma Panel clinical results Received FDA approval for Elecsys ® CSF AD assays pTau /Abeta 42 1 2 3 Triage Confirmation Therapy Patients undergoing initial evaluation Patients referred for amyloid Patients identified for future for non-specific cognitive decline1 confirmatory testi
Slide 26: Finance – Alan Hippe, CFO
Finance Alan Hippe Chief Financial Officer
Slide 27: 2022: Group performance
2022: Group performance Sales growth of +2%, Core Operating profit up +3%, Core EPS growth of +5% 2022 2021 Change in % CHFm CHFm CHF CER Sales 63,281 62,801 1 2 Core operating profit 22,173 21,897 1 3 as % of sales 35.0 34.9 Core net income 17,530 18,071 -3 -1 as % of sales 27.7 28.8 Core EPS (CHF)
Slide 28: Pharma and Diagnostics underlying business driving growth
2022: Pharma and Diagnostics underlying business driving growth CHFm +2% at CER Diversification of Roche business +273 2017 2022 + 3’356 -801 -1,883 + 903 CHF 53.3bn CHF 63.3bn -457 -911 AHR Total COVID-19 sales decline equals roughly 1bn AHR 62’801 63’281 Diagnostics Oncology Other pharma Immunolog
Slide 29: 2022: Group operating performance
2022: Group operating performance Core operating profit growth of +3% 2022 2022 vs. 2021 CHFm abs. CER CER growth Sales 63,281 +1,391 2% Royalties & other op. inc. 3,145 +83 3% Cost of sales -18,075 -204 1% M&D -9,546 -159 2% R&D -14,053 -367 3% G&A -2,579 -4 0% Core operating profit 22,173 +740 3%
Slide 30: 2022: Core EPS development
2022: Core EPS development Operations growth and accretion effect from share repurchase are main drivers for higher Core EPS +4.8% CHF 2021 1 4 2022 3 2 At Constant Exchange Rates (CER); 1 Core operating profit excluding impacts from Ultomiris patent settlement and Profit Sharing Income from Regener
Slide 31: 2022: Group Operating Free Cash Flow
2022: Group Operating Free Cash Flow OFCF -8% driven by movements in NWC and higher investments in IA CHFm +209 -1,611 +93 -231 -198 19’411 17’673 OFCF lower by -8%/+1,540m at CER 2021 OP, net of cash NWC Investments Investments Foreign 2022 adjustments movement in PP&E in IA exchange CER = Constant
Slide 32: Balance sheet December 2022
Balance sheet 31 December 2022 Equity ratio at 36% (31 Dec 2021: 31%) and net debt to assets at 18% (31 Dec 2021: 20%) % change in CER vs % change in CER vs CHFbn 31 Dec 2021 31 Dec 2021 92.3 92.3 88.2 -2% 88.2 -2% Cash and 13.0 14% 9.8 -21% marketable 11% Current securities 38.4 27.2 -27% 22.6 liab
Slide 33: 2023 outlook
2023 outlook Group sales growth1 • Low single digit decline Core EPS growth1 • Broadly in line with sales decline Dividend outlook • Further increase dividend in Swiss francs 1 At Constant Exchange Rates (CER) 33
Slide 34: Doing now what patients need next
Doing now what patients need next