Csl Limited · ASX:CSL
Csl — Merger or Acquisition (2000)
17 slides from Csl's merger presentation, 2000
Slide 1: Acquisition of Certain Assets of Nabi Plasma
Acquisition of Certain Assets of Nabi Plasm ee
Slide 2: Profit Upgrade
Profit Upgrade
Slide 3: Forecast NPAT of $76m
• Forecast Net Profit After Tax $76m – Increase of 40% over 1999/00 80 70 NPAT (A$m) 60 50 40 76 30 54.4 20 47.4 10 0 1998/99 1999/00 2000/01
Slide 4: Successful integration and performance of ZLB; key drivers
• Successful integration and performance of ZLB • Key Drivers – Launch of ZLB products into US – Favourable US IVIG prices – Control of costs
Slide 5: The Acquisition
The Acquisition
Slide 6: Acquisition terms and assets acquired
• Consideration US$152m (A$292m) • 47 Plasma collection centres in 22 US states – 1.3ML of plasma collection in 2001 • A quantity of normal plasma from 9 Nabi Supply Centres (0.1ML) • Laboratory facilities in Florida • Regulatory approval – FDA approved – British and German regulatory approval on so
Slide 7: Secure plasma supply
• Secure plasma supply – Drives increased volumes and earnings from ZLB • Ensures long-term, reliable supply of source plasma – Consolidating source plasma market • Opportunity to increase sales in US and selected key markets
Slide 8: 2001E plasma collection of 1.3 ML
• 2001E plasma collection of 1.3 ML Plasma Volume Plasma Type (‘000 litres) % Normal plasma 1,088 Tetanus plasma 101 Normal & Tetanus plasma 1,189 91% Specialty plasma 116 9% Total 1,305 100% Source: Nabi estimates • Nabi will retain 9 collection centres – Additional normal production supplied to CS
Slide 9: Major customer contracts assumed
• Major customer contracts assumed – Terms ranging from 2 to 4 years Contracted Volumes (Calendar Year) Year 2001 2002 2003 2004 Contracted Volume 1,230 1,230 790 650 (‘000 litres)
Slide 10: Capacity increased to 3.0ML by 2005
• Capacity progressively increased to 3.0ML of plasma equivalent per annum by 2005 – Current output of 1.8ML per annum
Slide 11: Source plasma and recovered plasma supply
• Source Plasma (paid donors) – Rapidly changing supply dynamics • Perceived scarcity driving consolidation • Recovered Plasma (voluntary donors) – Strong relationships with leading not-for-profit blood collectors
Slide 12: Management, sales and marketing, fractionation
• Management • Sales and marketing – Continue to expand US sales • Fractionation – Expand ZLB capacity
Slide 13: Proposed equity placement of A$320m
• Proposed equity placement of A$320m – Merrill Lynch as Lead Manager and Bookrunner
Slide 14: EPS accretion and goodwill
• Significant pre & post-goodwill EPS accretion in 2003/04 – Broadly earnings neutral in first 2 years – Accretion driven by increase in sales of high margin ZLB plasma products – Further accretion 2004/05+ when additional available plasma is processed • Creates goodwill of US$128m
Slide 15: Summary: earnings upgrade and US plasma acquisition
• Upgrade Earnings Forecast • Acquisition of Leading US Plasma Collection Assets – Secures plasma – ZLB expansion – Increase US sales
Slide 16: Forward looking statements
The forward looking statements included in this announcement involve a subjective judgement and analysis and are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and are unknown to, CSL. In particular, they are subject to significant regulator
Slide 17: Acquisition of Certain Assets of Nabi Plasma
Acquisition of Certain Assets of Nabi Plasm ee