Ipsen Sa · EURONEXT:IPN
Ipsen Sa — H1 2009 Earnings Presentation
28 slides from Ipsen Sa's earnings presentation, Aug 28, 2009
Slide 1: First half 2009: confirming Ipsen's specialist care globalisation
First half 2009: confirming Ipsen’s specialist care globalisation August 28, 2009
Slide 2: Disclaimer
Disclaimer This presentation includes only summary information and does not purport to be comprehensive. Forward-looking statements, targets and estimates contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such statements involve known an
Slide 3: Objectives for today
Objectives for today 1 First half 2009 achievements 2 First half 2009 detailed financials 3 CEO update 4 Progress on the remaining milestones and outlook 3 FIRST HALF 2009 RESULTS
Slide 4: First half 2009 achievements
First half 2009 achievements Jean-Luc Bélingard Chairman & CEO
Slide 5: A rigorous execution of key milestones
A rigorous execution of key milestones Adenuric® Decapeptyl® 6 Months Partnership(s) and Approval launches BIM-23A760 Phase II initiation 9 Toremifene Citrate 80 mg 9 Primary care products In-licensing deal(s) European filing OBI-1 Azzalure® 9 Azzalure® 9 Phase III initiation Approval in Europe Laun
Slide 6: A strong commercial performance in the first half 2009
A strong commercial performance in the first half 2009 6.3% Drug sales growth, in line with our full-year objective A solid 11.5% specialist care sales growth, with endocrinology up 32.7% year-on-year Stabilisation in Eastern Europe, with Q2 sales up 1.0% year-on-year Dynamic growth in the US, with
Slide 7: A strong profitability and cash generation
A strong profitability and cash generation 25.0% operating margin pre-goodwill allocation A ‘clean operating margin’* of 18.0%, compared with 21.6% a year ago €147 m generated by operating activities, versus €124 m a year ago €139 m net cash position as at June 30, 2009, post €203 m net cashed-out o
Slide 8: Detailed financial performance
Detailed financial performance Claire Giraut Chief Financial Officer
Slide 9: Main products performances
Main products performances Sales in € million Decapeptyl 126.5 +0.9% Dysport 76.1 +3.7% Somatuline 68.3 +18.3% SPECIALIST CARE NutropinAq 19.3 +30.0% +11.5% DRUG Increlex 10.2 n.m. SALES Apokyn 3.2 n.m. +6.3% Tanakan 56.4 +2.8% Smecta 52.2 (2.6)% PRIMARY CARE Nisis/co 27.7 (2.6)% (0.8)% Forlax 25.9
Slide 10: Top line evolution
Top line evolution Sales by therapeutic area Sales by region +4.8% +4.8% At constant currency : +5.1% At constant currency : +5.1% +9.5% +0.8% 278.1 304.5 283.4 +11.5% 281.2 (8.1)% 114.5 124.6 197.8 +0.8% 199.4 20.6 2.1 (0.8)% 89.5 +14.8% 102.7 (19.5)% +12.5% H1 2008 H1 2009 H1 2008 H1 2009 Others P
Slide 11: P&L – above EBIT
P&L – above EBIT COGS (% of sales) Research & Development (0.6) bp +4.8% 22.7% 22.1% Industrial 12.6 development 8.4 +49.3% Drug-related R&D 78.9 78.9 H1 2008 H1 2009 H1 2008 H1 2009 Sales & Marketing G&A +12.9% +9.8% 21.5 Royalties paid 19.4 4.6 Taxes 6.1 +14.8% 160.0 Selling 139.3 expenses 44.8 (1
Slide 12: P&L - EBIT
P&L - EBIT In € million (14.2)% as reported Excluding goodwill allocation in connection 145.9 with US acquisitions AND income from Bayer Land Sale 1,6 13.7 125.2 €94.1 m 18.0% Ginkor Fort Kogenate® 23.1 36.4 Excluding goodwill allocation in connection with US acquisitions ‘Clean’ ‘Clean’ EBIT (12.5)
Slide 13: P&L – below EBIT
P&L – below EBIT Financial result (€m) Effective tax rate (% of PBT) 3.4 21.9% 1.4 18.2% 2.0 H1 2008 H1 2009 Non-cash. Tercica Interest convertible bonds -4.7 income and warrant-related H1 2008 H1 2009 Income from Associates (€m) Consolidated result (€m - group share) 110.8 98.7 H1 2008 H1 2009 Sale
Slide 14: Balance Sheet evolution
Balance Sheet evolution - In million of euros Assets - In million of euros Liabilities 31 Dec 08 30 Jun 09 31 Dec 08 30 Jun 09 (*) 290.8 (*) 885.0 Goodwill 290.8 Equity 928.4 Property. plans & equipments 237.9 244.7 Minority interests 1.6 1.8 (*) 232.9 (*) 886.6 Intangible assets 239.3 Total equity
Slide 15: Cash flow statement
Cash flow statement 30 Jun 08 30 Jun 09 Comments - In million of euros Deferred revenues net increase: Cash Flow before change in working capital 141.3 121.5 €+56.7m (Medicis / Galderma) - Increase / Decrease in working capital (17.1) 25.7 Receivables, payables, inventory Net cash flow generated
Slide 16: CEO update
CEO update Jean-Luc Bélingard Chief Executive Officer
Slide 17: A productive and unique R&D
A productive and unique R&D Some major projects moving through the pipeline appear to have significant and higher-than-expected market potential GH+IGF-I BN-83495 BIM-23A760 OBI-1 combination therapy in 4 indications + An extremely limited attrition: Over the past 5 years, few major R&D project have
Slide 18: North America: timely acquisitions
North America: timely acquisitions + Positive feedbacks received for Dysport®: opportunity in therapeutic use could be larger than anticipated: probable acceleration of launch and intensification of sales & marketing efforts + Differentiated and competitive products addressing significant markets dr
Slide 19: Primary care: toward opportunities
Primary care: toward opportunities Forlax® : Smecta® : Mitigation strategy currently in force Capitalising on the strength of the brand + Ipsen’s primary care products: Strong brands, strong recognition, significant market potential + Strong sales networks, with significant presence in emerging mark
Slide 20: Ipsen is moving up toward a reinforced profile, with enhanced growth potential
Ipsen is moving up toward a reinforced profile, with enhanced growth potential A strong potential in A unique R&D the US Primary care A strong financial opportunities situation 20 FIRST HALF 2009 RESULTS
Slide 21: Outlook and progress on the remaining milestones
Outlook and progress on the remaining milestones Jean-Luc Bélingard Chief Executive Officer
Slide 22: A rigorous execution of key milestones
A rigorous execution of key milestones Adenuric® IGF-I+GH combo Decapeptyl® 6 Months Partnership(s) and Phase II results Approval launches BIM-23A760 Toremifene Citrate 80 mg Primary care products Phase II initiation European filing In-licensing deal(s) OBI-1 Azzalure® Azzalure® Phase III initiation
Slide 23: Delivering on our key objectives…
Delivering on our key objectives… IGF-I + GH combo Adenuric® Decapeptyl® 6 Months Phase II pediatric results In final negotiation stage First approvals expected on September 12-15 at Partnership expected before year-end before year-end LWPES/ESPE OBI-1 Phase III initiation in December BN-83495 Phase
Slide 24: Outlook
Outlook 2009 financial objectives confirmed Drug sales growth of 7.0 to 9.0% Operating margin pre-Kogenate royalty and before goodwill allocation of around 14.0% 24 FIRST HALF 2009 RESULTS
Slide 25: Appendices
Appendices
Slide 26: Cash flow generation
Cash flow generation Cash generation and utilisation (Jan 1, 09– June 30, 09) In €m 32.4 147.2 64.2 150.0 2.8 237.3 139.1 Opening Net Cash from Cash Used by Dividends & LT borrowings Other Closing Net Cash* at Operating other Investing Share Cash* 01/01/09 Activities Activities Buybacks 26 FIRST HAL
Slide 27: Allocation of the Tercica purchase price accounting
Allocation of the Tercica purchase price accounting Other intangible assets (IGF-1 licence) + € 69.0 m Current assets (stock revaluation & others) €(0.4) m Contingent liabilities €(7.6) m Deferred tax assets* + €18.0 m Equity (revaluation of the share previously held) €(18.1) m Total of th
Slide 28: Milestones Cashed in but not yet Recognised as Revenues
Milestones Cashed in but not yet Recognised as Revenues - In million of euros 30 Jun 08 30 Jun 09 Payments recognised as revenues in year N+1 11.2 12.1 Payments recognised as revenues in years N+2 and beyond 205.7 195.2 Total Milestones cashed in but not yet recognised as revenues 216.9 207.3 Decrea