Slide 1: CSL Limited 2019 Full Year Results
For personal use only CSL Limited 2019 Full Year Results Paul Perreault, CEO and MD 14 August 2019 David Lamont, CFO
Slide 2: Legal Notice
LEGAL NOTICE Forward looking statements After struggling for The materials in this presentation speak only as of the date of these materials, and include years to get an accurate forward looking statements about CSL Limited and its related bodies corporate (CSL) financial diagnosis, hereditary resul
Slide 3: FY19 Performance
FY19 Performance For personal use only A strong year for CSL with revenue up 11%1 and profit after tax up 17%1 reflecting: • Continued strong growth in our core immunoglobulin and CSL BEHRING SEQIRUS albumin therapies • PRIVIGEN® sales +23%1 • Influenza vaccine sales +19%1 • High patient demand for
Slide 4: Delivering on Strategy
Delivering on Strategy For personal use only Innovation • CSL112 phase III progressing Efficiency • 30 new US plasma collection centres • Saline facility purchased, supporting • CSL312 phase II study in patients plasma collection with HAE enrolled • New ERP systems • New research facility in Melbour
Slide 5: CSL Behring Sales FY19
CSL Behring Sales FY19 For personal use only Sales Change1 REGION Therapy $m % 17% Immunoglobulins 3,543 16% - IVIG 2,375 15% ROW 7% - SCIG 985 22% Albumin 1,018 15% North 11% Asia Pac America Haemophilia 1,051 (3%) 10% 17% 48% US$7.2b - Recombinants 563 7% 11% - Plasma 488 (12%) Specialty 1,572 6%
Slide 6: Immunoglobulins
Immunoglobulins Substantial above market growth: sales up 16%1 For personal use only Demand drivers • 23% growth1 • Increased usage for chronic therapies • 22% growth1 • Increased awareness & • Only SCIG with diagnosis CIDP label • CIDP indication • Expanding usage for SID CARIMUNE® Phased out 1. Gr
Slide 7: Albumin
Albumin Sales up 15%1 Transition to For personal use only Good Supply Practices (GSP) license in China2 • Strong growth in 2H driven by China & EU • FY19 China albumin sales up 14%1 Benefits phasing in over the next 6 to 12 months • China approval for Kankakee • Improved participation in value AlbuR
Slide 8: Haemophilia
Haemophilia Sales down 3%1 For personal use only Plasma Coagulation Factors • 40% growth1 • 85% growth1 • Competitive pressures • Continued patient • Simplicity of • Tender volatility switching replacement therapy • Additional countries • Successful portfolio still to launch transition HELIXATE® pha
Slide 9: Specialty Products
Specialty Products Sales up 6%1 For personal use only • 61% growth1 • New referrals and • 14% growth1 patients starts each • Continued month in the US growth in Peri- hospitals Operative Bleeding Other • Product profile Specialty very appealing $1,572m Wound • Sales normalised Healing • Supply inter
Slide 10: Plasma Collections
Plasma Collections Continued growth in plasma collection network For personal use only 30 new centres opened in the US Total centres – 221 in the US, 8 in Germany, 3 in Hungary and 5 in China Planning to open ~40 new centres in FY20 Achieved continued efficiencies in both labour and yield Liquid sal
Slide 11: Innovation Update
Innovation Update For personal use only CSL112 CSL312 CSL964 Early Portfolio • Phase III study • Factor XIIa • Phase II/III study in • Phase I complete: underway: antagonist Phase II prevention of GvHD • CSL 346 • 44 countries study in patients with with AAT initiated (anti VEGF-B) actively enrollin
Slide 12: Seqirus Revenue FY19
Seqirus Revenue FY19 Revenue up 12%1 For personal use only Sales % REGION $m Change1 35% QIV 430 26% Seasonal TIV 69 (63%) Influenza ROW vaccines 4% Adjuvanted 300 117% +19%1 North 9% Other / In-licence 219 (2%) America 4% Asia Pac 61% Total Product Sales 1,018 14% 19% US$1,196m Pandemic 133 18% 12%
Slide 13: Seqirus
Seqirus Operating Highlights Looking Forward… For personal use only • Ongoing shift in portfolio to differentiated products • Real world data provides new insight into the effectiveness of cell- based influenza vaccine. • FLUCELVAX® market expansion: - FLUCELVAX® Quadrivalent was 36% more effective
Slide 14: Financials
Financials David Lamont, CFO For personal use only 14 | Driven by Our Promise™
Slide 15: Financial Highlights
Financial Highlights NPAT For personal use only +17% $2,015m @CC1 @CC1 FX $96m $1,919m $1,729m +11% $1,161m 1H19 FY18 FY19 1. Growth percentages shown at constant currency to remove the impact of exchange rate movements, 15 | Driven by Our Promise™ facilitating comparability of operational performan
Slide 16: Financial Highlights: CSL Group
Financial Highlights CSL Group For personal use only Full year ended Jun FY18 FY19 FY19 Change US$ Millions Reported Reported at CC1 % Total Revenue 7,915 8,539 8,757 11%1 Gross Profit 4,384 4,777 4,896 12%1 GP margin 55.4% 55.9% 55.9% EBIT 2,380 2,504 2,579 8%1 EBIT margin 30.1% 29.3% 29.4% NPAT 1,
Slide 17: Financial Highlights: Segments
Financial Highlights Segments For personal use only CSL BEHRING SEQIRUS FY18 FY19 Change FY18 FY19 Change US$ Millions US$ Millions Reported Reported % at CC1 Reported Reported % at CC1 Sales 6,678 7,187 11% Sales 910 1,018 14% Other Other 149 156 4% 178 178 3% Revenue Revenue Total Total 6,827 7,34
Slide 18: Financial Highlights: Reported Expenses
Financial Highlights Reported Expenses For personal use only FY19 Change at CC1 $m $m % Research & Development 832 150 21 CSL112 phase III trial Sales & Marketing 867 99 13 General & Admin 575 65 13 Facilities expansion & new technology • Total D&A up $79m (2/3’s G&A, 1/3 COGS) Finance (Net) 163 14
Slide 19: Inventory Management
Inventory Management For personal use only $M Key 3,500 100% Insights 3,000 80% 2,500 • Continue to produce for 60% demand 2,000 • Inventory as a 1,500 40% percentage of revenue steady 1,000 20% • Seqirus inventory mix 500 impacted by strain 0 0% notification 2016 2017 2018 2019 Raw Materials Work i
Slide 20: Capital Expenditure
Capital Expenditure Investment to Support Demand Key For personal use only Projects $M Capex $B Sales 1,500 9 • New manufacturing capacity at all sites • New collection centers 1,000 6 • New ERP systems 500 3 • FY20 ~ $1.3 billion ̵ Two thirds growth projects 0 0 Maint Growth Sales 20 | Driven by Ou
Slide 21: Outlook for FY20
Outlook for FY201 For personal use only • Continued strong demand for plasma and recombinant products FY20 NPAT ̵ One-off effect on albumin sales arising from ~$2,050m to $2,110m @CC2 transition to new distributor model in China (up ~7 - 10% on FY19) Revenue growth ~6%2 • Slight margin growth from p
Slide 22: Contact
CSL Limited Contact For personal use only Mark Dehring VP Investor Relations +61 3 9389 3407 mark.dehring@csl.com.au Bernard Ronchi Senior Manager, Investor Relations +61 3 9389 3470 bernard.ronchi@csl.com.au
Slide 23: Appendix: Direct Distribution Model – China
Appendix For personal use only DIRECT DISTRIBUTION MODEL – CHINA1 • One-off financial effect in FY20 • Group albumin sales reduced by ~$340-370 million • No impact on the availability of albumin to patients • Profit effect in line with historical CSL Behring margin • Modest impact on cashflow • Annu
Slide 24: Notes
Notes (#) Constant currency removes the impact of exchange rate movements to facilitate comparability of operational performance for the Group. This is done in three parts: a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars, at