Amgen Inc. · NASDAQ:AMGN
Amgen — Investor Presentation (April 2016)
24 slides from Amgen's investor presentation, Apr 29, 2016
Slide 1: April 2016 Investor presentation
APRIL 2016 Investor presentation
Slide 2: Safe harbor statement
Safe harbor statement This presentation contains forward-looking statements that are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described. All statements, o
Slide 3: Executive Summary
Executive Summary Business Update Delivering on our long-term strategic commitment Exciting pipeline and growth opportunity Implementing a business transition to position us well for the future Overview of Amgen’s Corporate Governance Corporate governance best practices Focus on shareholders Overvie
Slide 4: Amgen's Business
AMGEN’S BUSINESS
Slide 5: One of the world's leading biotechnology companies
One of the world’s leading biotechnology companies $21.7B revenue, $8.0B adjusted net income*, ~$120B market capitalization Global scale: Presence in more than 100 countries Deep portfolio of novel medicines that address serious illness 15 marketed products across key therapeutic areas Strong pipeli
Slide 6: In 2015 we made substantial progress in every element of our strategy
In 2015 we made substantial progress in every element of our strategy 1 Developing innovative medicines focused on serious illnesses in six therapeutic areas 2 Expanding our global geographic reach 3 Advancing branded biosimilars 4 Transitioning to next-generation biomanufacturing 5 Delivering impro
Slide 7: Advancing innovative medicines across six areas of therapeutic focus
Oncology/Hematology Inflammation Bone Health Romosozumab† Nephrology Parsabiv™ (etelcalcetide) BIOSIMILARS Adalimumab Infliximab BIOSIMILARS Rituximab Bevacizumab Trastuzumab Cetuximab Neuroscience CNP520‡ (BACE) AMG 334‡ Cardiovascular Omecamtiv mecarbil* AMG 899 (CETPi) AMG 157** AMG 181** BACE =
Slide 8: Expanding global geographic reach
Expanding global geographic reach Expanded from ~50 to over 100 countries in the last 5 years In 2015, regained rights to Prolia®, XGEVA® and Vectibix® in 48 countries Recent approval of Repatha® in Japan 80 product/country launches expected in 2016 Amgen has unique capabilities in development, manu
Slide 9: Transitioning to next-generation biomanufacturing
Transitioning to next-generation biomanufacturing Dramatically reduce scale and costs of making biologics while maintaining reliable, high-quality, compliant supply of medicines 1/4 of the capital costs and 1/3 of the operating expense vs. a conventional plant Final preparations underway for licensu
Slide 10: Key 2018 Commitments
Key 2018 Commitments Status as of December 31, 2015 Double-digit adjusted EPS* growth, on average, through 2014–2018 On track; 19% growth in 2015 Adjusted operating margin* of 52%–54% vs. 38% in 2013 On track; 10-point improvement to 48% margin $1.5B gross cost savings, $800M net of reinvestment On
Slide 11: Investing for long-term growth and capital allocation to shareholders
In 2015, Amgen invested approximately $4B in internal research and development and completed several business development transactions to capture external innovation and drive long-term growth Our strong cash flows and balance sheet allow us to simultaneously return significant capital to shareholde
Slide 12: Corporate Governance
Corporate Governance
Slide 13: Highlighting Corporate Governance Best Practices
Highlighting Corporate Governance Best Practices Effective Board Leadership and Independent Oversight 13 of 14 directors are independent Five new directors in the last four years Average board tenure of ~7.7 years is substantially less than the S&P 500 average Lead Independent director with robust r
Slide 14: Board Leadership
"BOARD.LEADERSHIP 4 nae A “a > s&
Slide 15: Experienced leaders with the right skills for Amgen
Experienced leaders with the right skills for amgen Blue outline indicates board members added in the past four years Average director tenure ~ 7.7 Years Diverse Independent Director Perspectives *Dr. Vance D. Coffman will serve as lead director through the 2016 Annual Meeting of Stockholders on May
Slide 16: Compensation practices
Compensation practices
Slide 17: Received ~97% FOR Say on Pay in 2015
Received ~97% FOR Say on Pay in 2015 Compensation aligned with shareholder value Alignment of executive and shareholder incentives; 74% of CEO and 68% of other NEO target compensation is based solely on company performance Long-term incentive equity award grants are primarily performance-based Clawb
Slide 18: Compensation is long-term and performance-based
Compensation is long-term and performance-based Pay Element Pay Philosophy Base Salary (11% of target for CEO; 19% for NEOs) Reflects job responsibilities as well as competitive market conditions and provides a degree of financial certainty that helps retain talent Annual Cash Incentive Awards (16%
Slide 19: Commitment to corporate responsibility
Commitment to corporate responsibility
Slide 20: Commitment to patient access and sustainability
Amgen is committed to assisting patients with no or limited drug coverage access the medicines they need. We believe patients should have access to medicines regardless of their ability to pay. We strive to balance the price of our medicines with local economic constraints, taking into account patie
Slide 21: Reconciliations
TRECONGENDN A . - s&
Slide 22: Reconciliations of GAAP to Adjusted Measures
Amgen Inc. Reconciliations of GAAP to Adjusted Measures ($ In millions) (Unaudited) Year ended Year ended December 31, 2015 December 31, 2013 GAAP operating income $8,470 $5,867 Adjustments to operating income: Acquisition-related expenses (a) 1,377 986 Certain charges pursuant to our restructuring
Slide 23: Reconciliation of Future GAAP to Adjusted Financial Measures
Amgen Inc. Reconciliation of Future GAAP to Adjusted Financial Measures Management has presented herein certain forward-looking statements about the Company’s future financial performance that include non-GAAP (or “as-adjusted”) operating margin, operating expense, net income and earnings per share
Slide 24: April 2016
APRIL 2016 Investor presentation