Slide 1: FY 2021 results
FY 2021 results 11 February 2022 1
Slide 2: Disclaimer and safe harbor
Disclaimer and 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 statement
Slide 3: Speakers
Speakers David Loew Aymeric Le Chatelier Howard Mayer Chief Executive Officer Chief Financial Officer Head of Research and Development (for Q&A) 3
Slide 4: Agenda
Agenda 1 FY 2021 business overview 2 FY 2021 financial performance Guidance and outlook 3 Conclusion 4 Questions 4
Slide 5: FY 2021 business overview
FY 2021 business overview David Loew Misha Living with pediatric spasticity © Ipsen 2020 / S Alexandrov / CAPA Pictures Tula, Russia 5
Slide 6: Clear focus on three therapeutic areas
Clear focus on three therapeutic areas A future built on Specialty Care Our vision To be a leading global mid-sized biopharmaceutical company with a focus on transformative medicines in Oncology, Rare Disease and Neuroscience Oncology Rare Disease Neuroscience Strengthening Expanding Excelling and t
Slide 7: FY 2021: headlines
FY 2021: headlines Executing the strategy MAXIMIZE Total sales growth of +12.3% to €2,869m, our brands driven by Specialty Care growth of +12.7% STRENGTHEN Seven external-innovation agreements the pipeline across every therapeutic area DRIVE A record core operating margin of 35.2% efficiencies FOCUS
Slide 8: FY 2021: Oncology sales highlights (Somatuline)
FY 2021: Oncology sales highlights Somatuline Sales (€m) 1,203 • Continued attractive NET market growth 1,145 recovering from the pandemic 2020 2021 • Expanding market share further with a limited impact from generic SSAs in 2021 Global SSA market growth (volume in MEU): rolling three months 10% 202
Slide 9: FY 2021: Oncology sales highlights (Cabometyx)
FY 2021: Oncology sales highlights Cabometyx €m sales 100 FY 2021: +22.8% • Strong volumes across most geographies 50 • TKI of choice in 2L RCC • Combination in 1L RCC launched in Germany. Cabometyx 1L new-patient exit share now at 18% 0 • Reimbursement and launches in 1L RCC Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: FY 2021: Oncology sales highlights (Decapeptyl and Onivyde)
FY 2021: Oncology sales highlights Decapeptyl and Onivyde €m sales 460 • Excellent performance driven by recovery in China 391 • Further market-share gains elsewhere 2020 2021 €m sales 127 • Higher sales to ex-U.S. partner and strong volume 123 growth in the U.S. 2020 2021 • Continued impact from th
Slide 11: FY 2021: Neuroscience sales highlights
FY 2021: Neuroscience sales highlights Dysport €m sales Aesthetics • Strong performance across all key Ipsen and Galderma +26.3% markets • Full recovery from the pandemic • Market growth driven by favorable consumer dynamics 435 353 Therapeutics • Strong performance supported by solid market growth
Slide 12: Strong execution of the external-innovation strategy
Strong execution of the external-innovation strategy Seven transactions completed in 2021 across the three therapeutic areas Accent Therapeutics BAKX Therapeutics Queen’s University METTL3 BKX-001 FLIP-inhibitor program Oncology Preclinical Preclinical Preclinical GENFIT elafibranor Rare Disease Pha
Slide 13: Building a high-value sustainable pipeline
Building a high-value sustainable pipeline Phase I Phase II Phase III Registration Cabometyx + atezolizumab IPN60130 Cabometyx + atezolizumab Cabometyx Solid tumors FOP 1L HCC 2L RR DTC3 IPN59011 mesdopetam Cabometyx + atezolizumab palovarotene Longer-acting neurotoxin PD-LID 2L NSCLC1 FOP Ax IPN102
Slide 14: Company social responsibility: highlights
Company social responsibility: highlights Donation to Employees Communities Environment Females: comprised 42% of Continued support of Halving absolute greenhouse- the GLT in 2021 - on track to International Health Partners gas emissions1 reach gender balance by 2024 by 2030 Ipsen in Motion: support
Slide 15: FY 2021 financial performance, Guidance and outlook
FY 2021 financial performance Guidance and outlook Aymeric Le Chatelier Meeting Boulogne, France © Ipsen 2021 / Hamid FADAVI / Option K 15
Slide 16: FY 2021 financial highlights
FY 2021 financial highlights Operating leverage driving margin growth and strong cash generation Total sales Core operating margin Free cash flow Specialty Care €2.9bn Consumer 35.2% Healthcare of total sales +12.3% +3.2% points1 €807m +24.9%1 Specialty Care +12.7% Focus on efficiency Strong EBITDA
Slide 17: Core P&L: leveraging strong sales growth
Core P&L: leveraging strong sales growth FY 2021 FY 2020 Change €m €m Total Sales 2,868.9 2,591.6 10.7% Other revenue 130.2 94.5 37.8% Other revenue: growth in royalties paid by partners Cost of goods sold (538.0) (490.6) 9.6% Gross profit 2,461.2 2,195.6 12.1% Gross profit margin ratio: % of total
Slide 18: Delivering efficiencies
Delivering efficiencies Improving the ratio of SG&A costs to total sales to 36.1% Total sales (€m) Reducing the ratio by 3.5% pts since 2019, driven by: +11.4% 2,869 2,576 • Efficiency gains from procurement savings, project 2019 2021 prioritization, restructuring and digital initiatives SG&A costs
Slide 19: Strong balance sheet and further cash generation
Strong balance sheet and further cash generation Funding significant potential external innovation €m Net debt to EBITDA of 0.1x +20% Capital allocation prioritized to external innovation +25% Firepower2 for external innovation of €2.1bn at the end of FY 2021 -76%1 All growth rates are at actual exc
Slide 20: Consumer Healthcare: exclusive negotiations with Mayoly Spindler
Consumer Healthcare Exclusive negotiations with Mayoly Spindler Delivering on the strategic roadmap €350m on an enterprise-value basis, including an earnout contingent payment of €50m Expected to complete by the end of Q3 2022 Creation of a global consumer-healthcare platform Supports strategic focu
Slide 21: Core 2021 financials excluding CHC
Core 2021 financials excluding CHC An improvement in the core operating profit margin to 37.1% Total Sales R&D costs ratio SG&A costs ratio As reported €2,869m 14.9% 36.1% Excluding CHC €2,643m 16.1% 34.8% Core operating margin As reported 35.2% Excluding CHC 37.1% 21
Slide 22: FY 2022 guidance, excluding CHC
FY 2022 guidance, excluding CHC Continued top-line growth and a robust core operating margin Total-sales growth greater than 2.0% at constant exchange rates Expected favorable impact of around 2% from currencies based on the level of exchange rates in January 2022 Core operating margin greater than
Slide 23: Update of mid-term 2020-24 outlook
Update of mid-term 2020-24 outlook Financial outlook reflects Specialty Care only1 Total sales Commitment to invest in €3.5bn cumulative CAGR between R&D supported by SG&A remaining firepower by 2024 +4% & +6%2 efficiencies for external innovation Higher R&D costs Based on net debt below At constant
Slide 24: Conclusion
Conclusion David Loew Diana Living with post-stroke spasticity © Ipsen 2019 / Pguimaraes / CAPA Pictures Sintra, Portugal 24
Slide 25: A strong platform for sustainable growth
A strong platform for sustainable growth External innovation Transition post-SSA competition entry Innovative brands Drive growth of core & innovative brands Somatuline Accelerate growth with external innovation sales Core brands Total Time 25
Slide 26: Conclusion
Conclusion Executing in line with our strategy Business Clinical development opportunities Delivery development milestones of strong 2021 results Seven transactions in 2021 Cabometyx + atezolizumab: External innovation: 2L NSCLC Phase III data readout the primary capital-allocation Top-line growth a
Slide 27: Questions
Questions Ronny © Ipsen 2019 / Adam Wiseman/ CAPA Pictures Living with a NET/neuroendocrine tumor Tennessee, USA PAGE 27
Slide 28: Appendix
Appendix Janice © Ipsen 2019 / Matthew Bender/ CAPA Pictures Living with cervical dystonia Tennessee, USA 28
Slide 29: A strong and expanding global footprint
A strong and expanding global footprint NORTH AMERICA EU5 REST OF WORLD 32% 31% 37% of total sales of total sales of total sales Compelling U.S. Attractive China Leveraging a presence; infrastructure, significant strong commercial emerging presence in European platform execution new markets countrie
Slide 30: FY 2021: sales by brand
FY 2021: sales by brand Specialty Care Consumer Healthcare Total Sales: €2,643m Total Sales: €226m €m +12.7% €m +8.1% €m +7.1% +10.1% 1,203 89 +17.5% +5.7% -6.8% +29.1% +26.3% +22.8% +5.1% 460 435 37 36 36 355 +7.2% 28 -11.8% -7.8% 127 32 17 Somatuline Decapeptyl Dysport Cabometyx Onivyde NutropinAq
Slide 31: FY 2021 total sales: adverse impact of fx rates
FY 2021 total sales: adverse impact of fx rates Average rate changes FY 2021 sales by currency (FY 2021 vs. FY 2020) 3% 3% USD: 1.18 Other1 16% -4% -6% RUB -9% 3% EUR CNY 5% 38% GBP 4% -30% 33% USD TRY RUB BRL CNY GBP USD Adverse 1.6% impact: lower USD, TRY, RUB and BRL 1. Includes AUD, BRL, PLN and
Slide 32: Core 2021 financials excluding CHC
Core 2021 financials excluding CHC FY 2021 As reported €m CHC €m Excluding CHC €m Total Sales 2,868.9 225.6 2,643.3 Other revenue 130.2 24.9 105.4 Cost of goods sold (538.0) (98.4) (439.6) Gross profit 2,461.2 152.1 2,309.1 % of total sales 85.8% 67.4% 87.4% R&D expenses (428.4) (3.7) (424.7) % of t
Slide 33: Oncology: key ongoing clinical-trial highlights
Oncology Key ongoing clinical-trial highlights Trial Population Patients Design Endpoints Status PFS primary endpoint Sorafenib met. Interim OS primary Cabometyx or Primary: PFS, OS endpoint not met COSMIC-312 Cabometyx + 1L HCC 740 Secondary: PFS single- Phase III atezolizumab agent Cabometyx arm F
Slide 34: Oncology: key ongoing clinical-trial highlights
Oncology Key ongoing clinical-trial highlights Trial Population Patients Design Endpoints Status Second novel hormonal Primary: OS, PFS Cabometyx therapy (abiraterone and Additional endpoints: ORR, CONTACT-02 Data anticipated 2L CRPC 580 prednisone or enzalutamide) prostate-specific antigen Phase II
Slide 35: Rare Disease: key ongoing clinical-trial highlights
Rare Disease Key ongoing clinical-trial highlights Trial Population Patients Design Endpoints Status H1 2022 Primary: annualized change in Palovarotene - 5mg QD regulatory Palovarotene new HO volume and upon flare-up, resubmission (US) MOVE FOP Secondary: subjects with new HO, 107 20mg QD for 28 day
Slide 36: Neuroscience: key ongoing clinical-trial highlights
Neuroscience Key ongoing clinical-trial highlights Trial Population Patients Design Endpoints Status Levodopa-induced Mesdopetam Change in average daily hours of dyskinesia in Mesdopetam or Data anticipated Phase IIb 140 ON-time1 without troublesome Parkinson’s placebo H2 2022 NCT04435431 dyskinesia
Slide 37: Thank you
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Slide 38: Investor relations contacts
Craig Marks Vice President, Investor Relations +44 7564 349 193 craig.marks@ipsen.com Adrien Dupin de Saint-Cyr Investor Relations Manager +33 6 64 26 17 49 adrien.dupin.de.saint.cyr@ipsen.com 38
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