Slide 1: H1 2020 Results
H1 2020 Results Innovation for patient care Ju ly 30, 2020 SIPSEN
Slide 2: Disclaimer & Safe Harbor
Disclaimer & Safe Harbor 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 in
Slide 3: Agenda
Agenda 01 H1 2020 Business Overview David Loew Chief Executive Officer 02 H1 2020 Financial Performance Aymeric Le Chatelier Chief Financial Officer 03 Conclusion David Loew Chief Executive Officer 04 Q&A David Loew Aymeric Le Chatelier 3
Slide 4: H1 2020 Business Overview
01 H1 2020 Business Overview
Slide 5: Delivering solid performance in H1 2020 despite impact of COVID-19
Delivering solid performance in H1 2020 despite impact of COVID-19 Top line Bottom line Pipeline Group growth of +3.1%1 , reaching Core Operating Income growth of +5.9%, Advancements in late-stage pipeline, €1,268.3m, driven by Specialty Care reaching €410.2m, and margin of 32.3% resulting in upside
Slide 6: Ipsen's relative resilience during the COVID-19 pandemic
Ipsen’s relative resilience during the COVID-19 pandemic People Commercial portfolio Manufacturing R&D • High level of engagement from ▪ Resilient Oncology portfolio • Adequate level of inventory • Limited disruption to across all products and investigational drug supply for employees ▪ Commercial o
Slide 7: Oncology driving Specialty Care and Group sales growth
Oncology driving Specialty Care and Group sales growth +9.5%1 63 +9.5%1 growth, representing 76% of Group sales and including de-stocking Sales € 74 impact in Q2 2020 in EU countries 137 112 ▪ Somatuline sales +16%1 194 including +20% in North America despite COVID-19 impact, and limited 198 impact
Slide 8: Neuroscience negatively impacted by COVID-19
Neuroscience negatively Janice Living with cervical dystonia impacted by COVID-19 Tennessee, USA -7.4%1 Dysport sales -7.4%1, representing 13% of Group sales Sales € ▪ Negative impact of COVID-19 across most geographies in both the therapeutics and aesthetics markets as treatment centers were closed
Slide 9: Rare Diseases: Palovarotene program progressing
Rare Diseases: Palovarotene program progressing Marin Living with fibrodysplasia ossificans progressiva Hamilton, Canada Rare Diseases sales -12.5%1, representing 2% of Group sales Palovarotene ▪ Ongoing dialogue with the FDA on the appropriate patient population eligible for treatment and a potenti
Slide 10: Consumer Healthcare negatively impacted by COVID-19
Consumer Healthcare negatively impacted by COVID-19 -21.1%1 Consumer Healthcare sales -21.1%1, representing 8% of Group sales Sales € 17 ▪ Smecta sales -34%1 19 Reflecting negative impact of COVID-19 in China and other territories, 12 China hospital central procurement policy and weakness in France
Slide 11: Progressing the Pipeline
Progressing the Pipeline Cabometyx Onivyde Dysport • Decision to opt-in for two ongoing Phase 3 • FDA fast-track designation for 1L • Approval for glabellar lines in trials: PDAC China • CONTACT-01: Cabometyx in combination with • Presentation of Onivyde 1L PDAC • FDA approval to treat upper and ate
Slide 12: H1 2020 Financial Performance
02 H1 2020 Financial Performance
Slide 13: No impact of foreign exchange on sales in H1 2020
No impact of foreign exchange on sales in H1 2020 60% of sales in non-EUR currencies Currency evolution in H1 2020 USD now 34% of sales H1 2020 sales by currency1 Average rate change (2020 vs. 2019) … 2% Other 1 -5% -4% 17% RUB EUR 3% -12% 40% GBP 5% -22% USD BRL RUB AUD TRY 34% USD No impact on Sal
Slide 14: Investments impacted by COVID-19 and focused on pipeline
Investments impacted by COVID-19 and focused on pipeline In €m H1 2020 H1 2019 % Change COGS: Favorable impact of Specialty Care growth Net sales 1,268.3 1,229.6 +3.1% on the product mix partly offset by the increase of royalties paid to partners Other Revenues 38.6 63.3 -38.9% Selling expenses: Ref
Slide 15: Further Core Operating Margin expansion in H1 2020
Further Core Operating Margin expansion in H1 2020 Further Core Operating Income margin expansion exceeding 32% of net sales -1.5pts Group margin expansion driven by Specialty Care growth despite dilutive impact of +0.5pts palovarotene development costs +2.7pts Consumer Healthcare -0.9pts 32.3% Cons
Slide 16: Core Operating Income to Consolidated Net Profit
Core Operating Income to Consolidated Net Profit In €m H1 2020 H1 2019 Change Core Operating Income 410.2 387.5 +5.9% Operating Income Core operating margin 32.3% 31.5% +0.8pts Impairment loss of €82 million before tax mainly related to the recent setbacks in the palovarotene Amortization of intangi
Slide 17: Strong Cash Flow generation and sound financial structure
Strong Cash Flow generation and sound financial structure Strong H1 2020 Free Cash Flow at €233m (+130% versus H1 2019) • Solid EBITDA of €460m (+6,8%) • Good management of working capital • Lower level of capital expenditure due to project delay from COVID-19 Net Debt at €923m at the end of H1 2020
Slide 18: Reinstating guidance for 2020
Reinstating guidance for 2020 Sales growth • Expected impact of -0.5% from currencies based on > +2.0% at constant currency the current level of exchange rates Core Operating margin • Excluding any potential impact of incremental investments in pipeline expansion initiatives > 30.0% of net sales • A
Slide 19: Conclusion
05 Conclusion
Slide 20: Ipsen H1 2020 highlights
Ipsen H1 2020 highlights Resilient performance Reinstated 2020 R&D pipeline advancing through COVID-19 financial guidance pandemic 20
Slide 21: 2020 Objectives
2020 Objectives Growth Pipeline Culture • Maximize growth and value worldwide for • Increase value of internal pipeline by • People: Continue transformation through differentiated best-in-class Specialty Care transforming R&D organization and leadership and people products prioritizing key internal
Slide 22: Q&A
Q&A SIPSEN Snoeaon fr coe ore
Slide 23: Thank You
Marin Living with fibrodysplasia ossificans progressiva Hamilton, Canada Thank You
Slide 24: H1 2020 sales growth driven by Specialty Care
H1 2020 sales growth driven Janice Living with cervical dystonia by Specialty Care Tennessee, USA Net sales of key products in H1 2020 in million euros – % excluding foreign exchange impact Group sales €1,268.3m Specialty Care +3.1%1 Somatuline® +16% Decapeptyl® -2% Cabometyx® +23% Specialty Care On
Slide 25: Advancing solid pipeline across strategic TAs with several significant Phase 3 / registrational trials
Advancing solid pipeline across 3 strategic TAs with several significant Phase 3 / registrational trials Preclinical Phase I Phase II Phase III Registration IPN59011 177Lu-IPN-01072 68Ga-IPN-01070 IPN60120 Longer-acting neurotoxin (Satoreotide Tetraxetan) (Satoreotide Trizoxetan) (Palovarotene) Dysp
Slide 26: Oncology ongoing clinical trial highlights
Oncology ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Addressable population in Ipsen territories Cabometyx 1L RCC 638 ▪ Arm 1: cabozantinib + nivolumab ▪ Primary: PFS Positive top-line results in ~30K patients Phase 3 CheckMate 9ER ▪ Arm 2: sunitinib ▪ Seconda
Slide 27: Oncology ongoing clinical trial highlights
Oncology ongoing clinical trial highlights Trial Population Patients Design Endpoints Status/ Other Onivyde 1L PDAC 750 ▪ Arm 1: Onivyde (nanoliposomal irinotecan) + 5-FU/LV + ▪ Primary: OS Recruiting/ ~28K addressable Phase 3 NAPOLI 3 oxaliplatin ▪ Secondary: PFS, ORR patients in Ipsen territories
Slide 28: Neuroscience ongoing clinical trial highlights
Neuroscience ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Addressable population in Ipsen territories Dysport Vulvodynia 93 ▪ Dysport (AbobotulinumtoxinA) ▪ Primary: Safety, change Recruiting ▪ 6.5%3 of female Phase 2 ▪ Placebo from baseline in vaginal populati
Slide 29: Rare Diseases ongoing clinical trial highlights
Rare Diseases ongoing clinical trial highlights Trial Population Patients Design Endpoints Status Addressable population in Ipsen territories Palovarotene FOP (chronic) 90 ▪ Palovarotene - 5 mg once daily and upon ▪ Primary: Change in HO Dosing paused after ~9K WW Phase 3 MOVE * Dosing flare-up, 20