Slide 1: Correction to Half Year Results Announcement and Analyst Briefing
For personal use only 17 February 2016 Australian Securities Exchange Correction to Half Year Results Announcement and Analyst Briefing There is an error in the Basic EPS amount for the Half Year ending 31 December 2014 in the Group Results Table. The amount of US$1.43 should have been US$1.46. This
Slide 2: Half Year Result 2016: CSL Delivers Exceptional Performance
For personal use only For immediate release 16 February 2016 Half Year Result 2016 CSL Delivers Exceptional Performance • Double-digit sales growth in all plasma therapy groups • 1 shipment of Privigen from new facility st ® • Seqirus formed – No.2 global influenza vaccines manufacturer CSL Limited
Slide 3: Operational highlights
For personal use only Page 2 16 February 2016 Operational • Product Portfolio o Double digit sales growth in all plasma therapy groups o CSL 654 (rIX-FP) – license under review in the U.S. and EU o CSL 627 (rVIII-SC) – license under review in the U.S. o Respreeza® approved in the EU o CSL 362 (AML)
Slide 4: Outlook
For personal use only Page 3 16 February 2016 northern and southern hemispheres. Overall, CSL is well positioned for sustainable growth and continuing to deliver value to shareholders.” OUTLOOK Commenting on CSL’s outlook, Mr. Perreault said, “2016 is an exciting year for CSL. The licenses for our n
Slide 5: Operating Review
For personal use only Page 4 16 February 2016 OPERATING REVIEW CSL Behring sales of US$2.5 billion grew 10% in constant currency terms when compared to the prior comparable period. Immunoglobulin product sales of US$1,181 million grew 13% in constant currency terms. Intravenous immunoglobulin (IVIG)
Slide 6: Respreeza launch and manufacturing expansion
For personal use only Page 5 16 February 2016 Following marketing authorization being granted for Respreeza® in Europe, this product was launched in Germany with plans for rollout in other European countries later this year. Respreeza® is a maintenance treatment for severe Alpha-1 Antitrypsin Defici
Slide 7: Balance sheet and changes to CSL Board
For personal use only Page 6 16 February 2016 CSL’s balance sheet remains very sound and only modestly geared. Cash and cash equivalents totalled US$1,092 million at 31 December 2015. During the first half of fiscal 2016 the company accessed the private placement market and raised the equivalent of
Slide 8: Group Results
For personal use only Page 7 16 February 2016 Group Results US Dollars Six months ended December Dec Dec Dec Dec Dec 2015 US$ Millions 2014 2015 2015 2015 Underlying8 Change 7 8 Reported Reported NVS-IV Underlying at CC# % Sales 2,744 3,056 294 2,762 2,996 9.2% Other Revenue / Income 96 80 4 76 79 T
Slide 9: Constant currency definition
For personal use only Page 8 16 February 2016 (#) Constant currency removes the impact of exchange rate movements to facilitate comparability of operational performance. This is done in three parts: (a) by converting the current period net profit of entities in the group that have reporting currenci
Slide 10: CSL Limited 2016 Half Year Result
For personal use only CSL Limited 2016 Half Year Result 16 February 2016 1
Slide 11: Legal Notice
Legal Notice For personal use only 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
Slide 12: Reported Financials
Reported Financials For personal use only Sales US$3.1 billion, up 11% • Underlying1 sales up 9% @CC2 NPAT US$719 million, up 4% • Underlying NPAT up 7% @CC EPS US$1.55, up 6% • Underlying EPS up 9% @CC Cashflow from operations US$705 million, up 8% Interim dividend US$0.58, unfranked • Converted to
Slide 13: Operational Highlights: Product Portfolio
Operational Highlights Product Portfolio For personal use only • Double digit sales growth in all plasma therapy groups • CSL 654 (rIX-FP) - license under review in U.S. & EU • CSL 627 (rVIII-SC) - license under review in U.S. • Respreeza® approved in EU • CSL 362 (AML) – licensee (Janssen) commence
Slide 14: Operational Highlights: Business Development
Operational Highlights Business Development For personal use only Operations • New Privigen® manufacturing facility approved by U.S. FDA • First shipment December 2015 • New sales office opened in Russia Influenza • Novartis influenza vaccines acquisition closed 31 July 2015 • ‘Seqirus’ Launched – N
Slide 15: Group Sales
Group Sales For personal use only CSL 1H16 Sales US$3.1B $1,181M Immunoglobulin Immunoglobulin $509M Haemophilia Haemophilia $466M Specialty Seqirus Specialty Products $376M Albumin Albumin $519M Seqirus Products Broad portfolio of products 6
Slide 16: Broad Sales Reach
Broad Sales Reach For personal use only CSL 1H16 Sales US$3.1B North North America $1,456M America $844M Europe Asia Europe $452M ROW ROW $304M Asia 7
Slide 17: Business Unit Performance
For personal use only Business Unit Performance 8
Slide 18: CSL Behring Product Sales up 10% @CC
CSL Behring Product Sales up 10% @CC For personal use only US$M US$2,492m US$2,537m 2,500 2,000 Immunoglobulins 1,500 Haemophilia 1,000 Specialty 500 Albumin 0 Dec 14 Dec 15 Reported sales for the 6 month period 9
Slide 19: Immunoglobulins Sales up 13% @CC
Immunoglobulins Sales up 13% @CC For personal use only US$M US$1,181m Highlights 1,200 US$1,122m IVIG Privigen® up 13% 1,000 • Ig IsoLo™ step added to manufacturing process IVIG 800 North America • Strong demand in the Specialty 600 Pharmacy segment Europe • CIDP indication driving strong 400 Privig
Slide 20: Albumin Sales up 10% @CC
Albumin Sales up 10% @CC For personal use only US$M Highlights 400 US$376m US$359m China • 17% volume growth • Successful market penetration 300 into Tier 2 & Tier 3 cities US • Solid demand 200 • Expansion of IDNs and large hospital contracts contributing to majority of growth 100 0 Dec 14 Dec 15 R
Slide 21: Haemophilia Sales up 2% @CC
Haemophilia Sales up 2% @CC For personal use only US$M 600 US$558m Highlights US$509m 500 Recombinant (Helixate®) • Volumes declined as broader Helixate® market transitions to new 400 generation products 300 Plasma Derived Beriate® volume up 31% 200 pd Coag • Growth driven by Poland & Germany 100 •
Slide 22: Specialty Sales up 14% @CC
Specialty Sales up 14% @CC For personal use only US$M 500 US$466m US$443m Highlights AATD 400 Zemaira® / Respreeza® • Launched in EU HAE 300 Berinert® P • New patient starts in the US up 24% 200 Kcentra® / Beriplex® Acquired • Ongoing demand growth Bleeding • Sales up ~40% 100 • Increasing brand awa
Slide 23: Seqirus
Seqirus For personal use only US$M 600 Seqirus Highlights US$519m Integration 500 • Novartis influenza vaccines acquisition completed 31 July 2015 • Seqirus launched November 2015 400 NVS-IV1 • Corporate office and global bioCSL leadership team established 300 US$252m Operational • U.S. FDA approval
Slide 24: Business Turnarounds
Business Turnarounds For personal use only % bioCSL 15 EBIT margin 10 5 bioCSL was formed in 2013 to 0 improve focus on operational -5 efficiency and drive growth -10 initiatives -15 1H14 2H14 1H15 2H15 1H16 % CSL Behring CSL Behring was acquired in 40 EBIT margin 2004 30 20 CSL is experienced turni
Slide 25: CSL Intellectual Property
CSL Intellectual Property For personal use only Segment Revenue $64m, down 29% @CC • Decline in revenue arising from license payment relating to CSL 362 included in prior period HPV royalties $63m • Registration of 9-valent HPV vaccine in US by Merck CSL 362 (anti-IL-3Rα mAb) • Exclusive worldwide l
Slide 26: R&D Update
R&D Update rIX-FP For personal use only • rIX-FP Phase III efficacy data supports 7-14 day dosing • Adult and pediatric indications under review by EMA and FDA • Health Canada approval received in Jan 16 rVIII-SingleChain • Phase I/III data supports twice weekly prophylaxis • BLA accepted for review
Slide 27: R&D Update
R&D Update For personal use only Beriplex® • Phase III study in Japan nearing completion • Exploring utility in treating bleeding patients receiving NOACs Berinert® • CSL 830 (subcut) pivotal Phase III study recruitment completed • Anti-FXIIa mAb pre-clinical development in HAE completed Zemaira®/Re
Slide 28: Financials
19 For personal use only Financials
Slide 29: 1H16 Profit Growth
1H16 Profit Growth For personal use only US$M 1,000 NVS-IV2 Gain on 800 +7% $738m acquisition $176m One off $788m items Operational FX $69m $692m ($64m) FX $69m NPAT ($62m) 600 $669m $719m 400 200 1H15 1H16 1H16 Reported Reported Reported NPAT Underlying NPAT NPAT1 0 1. Underlying excludes financial
Slide 30: Effective Capital Management
Effective Capital Management For personal use only Shares on issue x shares m Net debt/EBITDA 700 1.5 600 Target ~1x 1 500 0.5 400 0 300 -0.5 200 100 -1 0 -1.5 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY09 FY10 FY11 FY12 FY13 FY14 FY15 US$ 3.5 EPS • 27% of shares repurchased 3.0 2.5 over the last 10 years
Slide 31: Debt Maturity Profile
Debt Maturity Profile For personal use only US$M 1,400 ~US$500m private placement completed 1,200 October 2015 • weighted average fixed rate of 1.43% 1,000 • average life of 9.4 years New Bank Debt Facilities 800 • ~US$1.25b with maturity of 5 years 600 400 200 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 F
Slide 32: Continued Investment
Continued Investment1 For personal use only Selling & Marketing up 18% @CC2 • Expansion of commercial +$43m operations • Expanding geographic sales reach Research & Flat @CC • 1H / 2H phasing Development Depreciation & Up 12% @CC • Multi-site capacity expansion Amortisation +$11m Net financing costs
Slide 33: Capital Expenditure
Capital Expenditure For personal use only US$M 700 Estimate 600 Seqirus 500 400 Growth Growth 300 56% 58% CSL Ex-Seqirus 200 Maintenance Maintenance 100 44% 42% 0 FY14 FY15 FY16 24
Slide 34: Outlook for FY16
Outlook for FY161 For personal use only CSL2 NVS-IV3 (11 Months) Revenue growth ~7% @CC4 Revenue ~US$360m5 NPAT growth ~5% @CC4 NPAT ~(US$90-120m) • CSL2 guidance reaffirmed • NVS-IV gain on acquisition • EPS growth will exceed NPAT less acquisition related growth driven by past and one-off costs ~U
Slide 35: CSL Strategy for Profitable Growth
CSL Strategy for Profitable Growth For personal use only • CSL 112 – new treatment paradigm in ACS • CSL 830 – HAE Future Growth Pipeline • Pipeline antibodies • Targeted business development • Drive Seqirus business to profitability Seqirus • Successfully launch pipeline vaccines Sustained Growth F
Slide 36: Contact - Mark Dehring
For personal use only CSL Limited 2016 Half Year Result 16 February 2016 Contact - Mark Dehring Head of Investor Relations Telephone: +613 9389 3407 Email: mark.dehring@CSL.com.au 27
Slide 37: Group Results Adjusted for NVS-IV
Group Results Adjusted for NVS-IV For personal use only Half year ended December Dec Dec Dec Dec Dec 2015 Change US$ Millions 2014 2015 2015 2015 Underlying1 % Reported Reported NVS-IV2 Underlying1 at CC3 Sales 2,744 3,056 294 2,762 2,996 9.2% Other Revenue / Income 96 80 4 76 79 Total Revenue / Inc
Slide 38: CSL Behring Sales
CSL Behring Sales For personal use only Half year ended December Dec Dec Dec Change US$ Millions 2014 2015 2015 % CC1 Immunoglobulins 1,122 1,181 1,269 13.2% Albumin 359 376 395 10.1% Haemophilia 558 509 569 2.0% - Recombinants 250 203 221 (11.5%) - Plasma 308 306 348 12.9% Specialty 443 466 506 14.
Slide 39: Financial Appendix
Financial Appendix1 For personal use only CSL2 NVS-IV3 (11 months) Full Year ended June FY15 FY16 FY16 US$ Millions Actual Guidance Guidance Total Revenue 5,613 ~7% @CC4 ~3605 Reported Net Profit after Tax 1,379 ~(90-120) NVS-IV gain on acquisition ~90 less acquisition related one-off costs Adjusted
Slide 40: Notes
(#) Notes Constant currency removes the impact of exchange rate movements to facilitate comparability of operational performance. This is done in three parts: (a) by converting the current period net profit of entities in the group that have reporting currencies other than US Dollars at the rates th