Chugai Pharmaceutical Co., Ltd. · TSE:4519
Chugai Pharmaceutical — FY2009 Earnings Presentation
33 slides from Chugai Pharmaceutical's earnings presentation, Feb 3, 2010
Slide 1: Aiming to Become a Top Japanese Pharmaceutical Company
Aiming g to Become a Top p Japanese p Pharmaceutical Company - Review of 2009 and Plans for 2010 - CHUGAI PHARMACEUTICAL CO., LTD. President and CEO Osamu Nagayama February 3/4, 2010
Slide 2: Forward-Looking Statements
Aiming to Become a Top Japanese Pharmaceutical Company F Forward-Looking d L ki St Statements t t This presentation may include forward-looking statements pertaining to the business and prospects of Chugai Pharmaceutical Co., Ltd. (the “Company”). These statements reflect fl t the th Company’s C ’ c
Slide 3: 2009 Full Year Results
Aiming to Become a Top Japanese Pharmaceutical Company 2009 Full Year Results Record-high Record high performance with strong growth drivers （billions of yen） 2005 2008 2009 YoY Revenues 327.2 326.9 428.9 31.2% Sales ex. Tamiflu 292.0 313.4 342.9 9.4% Operating income 79.2 51.6 82.6 60.1% % revenues
Slide 4: Review of 2009
Aiming to Become a Top Japanese Pharmaceutical Company Review of 2009 Solid S lid growth h off ex-Tamiflu T ifl sales: l +9.4％ 9 4％ Launch of RoActemra in Europe Approval of Avastin in lung cancer 5 filings for marketing approval Initiation of P1 studies for 4 projects Solid foundation for
Slide 5: Divisional Achievements in 2009
Aiming to Become a Top Japanese Pharmaceutical Company Divisional Achievements in 2009 R&D Strengthened R&D foundation ・Enhanced drug discovery technology ・Good progress in projects of new development areas (diabetes, CNS) ⇒ Enriched pipeline 9 global development projects on-going 4 new projects ent
Slide 6: Domestic Sales excluding Tamiflu
Aiming to Become a Top Japanese Pharmaceutical Company Domestic Sales excluding Tamiflu (Billion JPY) 334.6 309.3 5.5％ 279.9 70.8 21.2% 259 8 259.8 263 1 263.1 1 2％ 1.2％ 67 1 67.1 -9.1％ 21.7% 66.3 Others 0.0％ 72.9 23.7% -2.8% 59.3 72.9 17.7% 28.1% 8. % 27.7% -0.5% 0.5% 61.0 19.7% -11.9% 61.3 21.9% 1
Slide 7: FY2010 Targets
Aiming to Become a Top Japanese Pharmaceutical Company FY2010 Targets A year of challenge to become a top pharmaceutical company in Japan Late 2010s top pharmaceutical company in i JJapan 2012 2010 Sunrise 2012 Revenues: ¥460.0 ¥460 0 billion Revenues: ¥418.5 billion OP: ¥80.0 billion OP: ¥70.0 bill
Slide 8: Challenges in Sales and Marketing
Aiming to Become a Top Japanese Pharmaceutical Company Challenges in Sales and Marketing Oncology Contribute to treatment as a leading company in Oncology gy 2010 domestic sales targets Establish position as standard treatment by treatment area Bone and Joints Others Actemra: establish a solid posit
Slide 9: Challenges in R&D
Aiming to Become a Top Japanese Pharmaceutical Company Challenges in R&D Filings g for 4 p products ((2 p projects) j ) to g gain additional indications Accelerate development in new target areas (diabetes, CNS) Strengthen drug-discovery capabilities - enhance research network centering g on F
Slide 10: Actemra: for Further Growth
Aiming to Become a Top Japanese Pharmaceutical Company Actemra: for Further Growth Global rollout：launched in more than 25 countries US launch Approved A d on 8 JJan., llaunched h d iin the h week k off 18 JJan. Expansion in Europe Germany: better-than-expected penetration > 10% market sha
Slide 11: FY2009 Consolidated Financial Overview
FY2009 Consolidated Financial Overview CHUGAI PHARMACEUTICAL CO., LTD. Executive Vice President and CFO Ryuzo Kodama F b February 3/4 2010 3/4,
Slide 12: Summary
FY2009 Consolidated Financial Overview Summary Significant increase in both Revenues and Profits (Year on Year) Revenues: +31.2%, Sales excl. Tamiflu: +9.4% • Solid domestic sales Oncology sales: +20.9% (#1 share in the domestic market*) • Overseas sales: Stable despite the impact of strong yen
Slide 13: Financial overview Jan-Dec
Year on Year FY2009 Consolidated Financial Overview Financial overview J - Dec Jan D (Billion JPY) 2008 2009 (Billion JPY) Variance Sales excl. Tamiflu +29.5 Jan-Dec Revenues Jan-Dec Revenues As % of As % of % Sales of Tamiflu* +67.8 Revenues 326.9 428.9 +102.0 +31.2 Sales 321 8 321.8 419 1 419.
Slide 14: Sales (Excl. Tamiflu)
Year on Year FY2009 Consolidated Financial Overview Sales (Excl. (Excl Tamiflu) J - Dec Jan D Left : Disease field (Billion JPY) Sales (Excl.▲Tamiflu) 18 ▲8 g : Variance Year on0.0 Right Year 5.0 10.0 Actual () : FY2009 15.0 342.9 +29.5, +9.4% Neutrogin Avastin -4.6 (Overseas) (21.3) (34.9) +14.8 31
Slide 15: Tamiflu performance
Year on Year FY2009 Consolidated Financial Overview T ifl sales Tamiflu l performance f Fiscal Term Sales (Billion JPY) FY2005.12 FY2006.12 FY2007.12 FY2008.12 FY2009.12 FY2010.12 Num ber of Seasonal P ti e n ts* Pa t * Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec
Slide 16: Operating Income
Year on Year FY2009 Consolidated Financial Overview Operating Income Jan - Dec 2008 2009 (Billion JPY) Variance (Billion JPY) Jan-Dec Jan-Dec (%) Increase Revenues 326.9 428.9 +102.0 +31.2 Other in SG & A Operating (excl. R&D) Cost of Sales 127.0 192.9 +65.9 +51.9 Revenues exp. Increase in R&D exp e
Slide 17: Financial Overview Oct-Dec
Year on Year FY2009 Consolidated Financial Overview Financial Overview Oct - Dec (Billion JPY) 2008 2009 (Billion JPY) Variance Oct-Dec Revenues Oct-Dec Revenues As % of As % of % Sales excl. Tamiflu +5.0 R Revenues 97 3 97.3 119 2 119.2 +21 9 +21.9 +22 5 +22.5 Avastin +3.3 Sales 97.0 115.7 +18.7
Slide 18: Financial Overview vs. Forecast
vs. Forecast FY2009 Consolidated Financial Overview Financial Overview Jan - Dec (Billion JPY) Revised Forecast Actual Oct. 7 Variance (Billion JPY) 2009 2009 Jan-Dec As % of Jan-Dec As % of Achiev. Sales excl. Tamiflu -2.3 Revenues R Revenues R (% ) Revenues 420.0 428.9 +8.9 102.1 Neutrogin (Over
Slide 19: Impact from Foreign Exchange Rate
vs. Forecast FY2009 Consolidated Financial Overview Impact from Foreign Exchange Rate Exchange rate assumption vs. Exchange rate (Billion JPY) CHF : 85.00JPY EUR : 125.00JPY assumption +1.0 Cost of Roche products -4.7 Price review Revenues Neutrogin (Overseas) +0.8 Purchase price variance Actemr
Slide 20: Balance Sheet Items (Assets)
Actual 2009 FY2009 Consolidated Financial Overview Balance Sheet Items (Assets) (Billion JPY) Cash and deposits +36.2 Tangible fixed assets Marketable securities -2.5 +5.9 -4.6 Others Inventories +13.9 +13.1 Increase in stock of new products Accounts +13.9 receivable Stockpiling for manufactur
Slide 21: Balance Sheet Items (Liabilities)
Actual 2009 FY2009 Consolidated Financial Overview Balance Sheet Items (Liabilities) (Billion JPY) Accrued income taxes +10.7 Accrued Others expenses +2.1 Accounts payable +5.5 +2.2 +3.9 Increase in purchase of Tamiflu +5.5 Accrued consumption Accounts taxes Accrued consumption +10.7 payable t
Slide 22: Cash Flow Statement Jan-Dec
Actual 2009 FY2009 Consolidated Financial Overview Cash Flow Statement Jan J - Dec D (Billion JPY) Investing Cash flow from operating activities +66.5 activities Income before taxes and minority interests +89.4 Operating Financing Depreciation and amortization +19.5 activities activities Increase
Slide 23: 2010 Forecast
2010 Forecast FY2009 Consolidated Financial Overview 2010 Forecast J - Dec Jan D Actual Forecast Variance (Billion JPY) 2009 2010 Jan-Dec As % of Jan-Dec As % of % Revenues Revenues Revenues 428 9 428.9 418 5 418.5 -10.4 10 4 -2.4 24 Sales 419.1 414.0 -5.1 -1.2 excl. Tamiflu 342.9 375.3 +32.4 +9.4 T
Slide 24: Sales (Excl. Tamiflu) 2010 Forecast
2010 Forecast FY2009 Consolidated Financial Overview Sales (Excl. (Excl Tamiflu) J - Dec Jan D (Billion JPY) Sales (Excl. Tamiflu) Left : Disease field ▲ 18 ▲8 0 0Year5.0 0.0 Right : Variance Year on 50 10 0 15.0 10.0 () : FY2010 15 0 Forecast 400 375.3 +32.4, +9.4% Herceptin Avastin 342.9 -5.0 (24.
Slide 25: Operating Income 2010 Forecast
2010 Forecast FY2009 Consolidated Financial Overview Operating Income Jan - Dec (Billion JPY) Actual Forecast (Billion JPY) 2009 2010 Variance Jan-Dec Jan-Dec (%) Other Gross Profit Operating Revenues 428.9 418.5 -10.4 -2.4 from Sales Revenues Increase in Cost of Sales 192 9 192.9 184 5 184.5 -8 8.4
Slide 26: Dividend Policy
FY2009 Consolidated Financial Overview Dividend Policy Policy Aiming to ensure stable profit for all shareholders and a consolidated dividend payout ratio of around 40% on average, taking account of strategic funding needs and earnings prospects. • Dividends for FY2009 (Forecast) 40JPY : 17＋17＋6 (
Slide 27: Overview of Development Pipeline
Overview of Development Pipeline CHUGAI PHARMACEUTICAL CO., LTD. Senior Vice President Head of Portfolio Management Unit Yutaka Tanaka February 3/4, 2010
Slide 28: Projects under Development (as of February, 2010)
Overview of Development Pipeline Projects under Development (as ( off February, F b 2010) Phase I Phase II Phase III Filed Oncology CIF/RG7167 MRA/Actemra ‐ PC RG340/Xeloda ‐ GC EPOCH/Epogin ‐ CIA★ ‐ solid tumors TP300 ‐ GC RG435/Avastin RG435/Avastin ‐ BC CKI27/RG7304 RG435/Avastin ‐ aCC RG1415/Tar
Slide 29: Development Status - Oncology (1)
Overview of Development Pipeline Development Status Status－Oncology Oncology (1) In-house Epogin: chemotherapy-induced anemia Filed in Nov. 09 In-house CIF (RG7167, MEK inhibitor): solid tumors Started P1 in Japan in Nov. 09 In-house CKI27 (RG7304): solid tumors Started P1 in Japan in Jan. 10 29
Slide 30: Development Status - Oncology (2)
Overview of Development Pipeline Development Status Status－Oncology Oncology (2) In- Avastin: non-small cell lung cancer licensed Approved in Nov.09 • In combination with standard chemotherapy In- RG1507 (IGF-1R mAb): solid tumor licensed Development suspended • Results from overseas Phase II clinic
Slide 31: Development Status - Bone & Joint, Others
Overview of Development Pipeline Development Status - Bone & Joint, Joint Others In-house ACTEMRA (US): Rheumatoid Arthritis Approved on Jan. 8, 2010 • Approved on the PDUFA DATE • For the treatment of adult patients with moderately to severely active rheumatoid arthritis (RA) who have had an inadeq
Slide 32: Projected Submissions
Overview of Development Pipeline Projected Submissions Fili Filings ffor 4 products d (2 projects) j ) are planned l d iin 2010 NME line extension in-house in-licensed MIRCERA* PEG/COPE AVASTIN AVASTIN Renal Anemia Liver Cirrhosis GC Glioblastoma AVASTIN EPOGIN XELODA PEGASYS pertuzumab ocrelizumab
Slide 33: Contacts: Corporate Communications Dept.
Contacts: Corporate Communications Dept. Corporate Communications Group Tel: +81 (0)3-3273-0881 (0)3 3273 0881 Fax: +81 (0)3 (0)3-3281-6607 3281 6607 e-mail: pr@chugai-pharm.co.jp Masayuki Yamada, Shinichi Hirose, Hiroshi Araki, Kae Maeda Investor es o Relations ea o sG Group oup Tel: +81 (0)3-3273-