Slide 1: H1 2019 Financial Results & Business Update
H1 2019 Financial Results & Business Update 29th July 2019
Slide 2: Disclaimer
Disclaimer This document has been prepared by Almirall, S.A. (the “Company”) exclusively for use during the presentation. This document includes only summary information and does not intend to be comprehensive. This document may not be disclosed or published nor used by any person or entity or any r
Slide 3: Agenda
Agenda 1. H1 2019 Highlights & Growth Drivers Peter Guenter, CEO FINANCIAL RESULTS & BUSINESS UPDATE 2. Financial Review David Nieto, CFO 3. R&D Update Bhushan Hardas, CSO 4. Closing Remarks Peter Guenter, CEO Financial Appendices
Slide 4: H1 2019 Highlights & Growth Drivers
H1 2019 Highlights & Growth Drivers 4
Slide 5: H1 2019 Highlights
H1 2019 Highlights • Strong business momentum continues with double-digit growth in Net Sales with substantial operating leverage. Total Revenues €469MM +18%, Net Sales 1 €430MM +17% and EBITDA €166MM +58% • Excellent momentum from our key Growth Drivers: • In Europe, Skilarence® and Ilumetri® conti
Slide 6: Focused Execution in Medical Dermatology
Focused Execution in Medical Dermatology Portfolio of Innovative Launches Recently Launched Tirbanibulin* Lebrikizumab Entering Phase III Pipeline Phase III year-end 2019 Indication Psoriasis Psoriasis Acne Actinic keratosis Atopic Dermatitis (oral) (biologic) (oral) (topical) (biologic) Markets Lau
Slide 7: Growth Drivers
Growth Drivers 7
Slide 8: Growth Drivers Recent Launches
Growth Drivers Recent Launches Gaining momentum following launch with positive initial uptake H1 2019 Net Sales +102% Y/Y • Nearly 80% share in Germany within the Dimethyl €16 Fumarate market (DMF) net sales million growth • 84% year on year unit growth €8 +63% Q/Q • Number of units sold 1,643 (c.80
Slide 9: Skilarence Strong performance
Skilarence® Strong performance Continued good momentum across Europe Growth in units * 37,368 32,672 28,281 21,525 20,294 15,290 7,101 392 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Year-on-year unit Year-on-year net +84% growth +102% sales growth * Source: IQVIA IMS audited Sal
Slide 10: Ilumetri Positive initial uptake
Ilumetri® Positive initial uptake Growth in units* 979 601 Strong quarterly growth 700 700 63 • Solid unit sales performance 600 during Q2 2019, with over 600 +63% quarter-on-quarter unit growth Q4 2018 Q1 2019 Q2 2019 500 500 • Launches continue in H2 with The Netherlands, Austria, 451 Spain, Irela
Slide 11: Seysara Strong Initial Launch
Seysara™ Strong Initial Launch 3,500 3,500 Continues to gain penetration in the OAB market 3,000 3,000 2,500 2,500SeysaraTM TRx vs OAB Brands TRx since launch* 2,000 20,000 2,000 Good payer1,500coverage and sales volume 15,000 1,500 • Number 1 branded 1,000 product in important US oral acne 10,000 1
Slide 12: Financial Review
Financial Review 12
Slide 13: H1 2019 Results: Continued good momentum
H1 2019 Results: Continued good momentum Highlights Challenges • Total Revenues and Net Sales both • Weaker performance of the US legacy growing at +16% at CER*, driven by the products and one time true-up for acquired portfolio in the US and our new government programs (ex-Allergan product launches
Slide 14: Net Sales Evolution
H1 2019 Net Sales Evolution Growth of key products & new launches Million Euros Good contribution from new US products Growth drivers gaining momentum YTD June Existing Generic Launch Almirall US Thermi Other YTD June 2018 Impact (*) Brands (**) (ex. Seysara) Divestment Net Sales 2019 * Includes all
Slide 15: Profit & Loss Breakdown
H1 2019 Profit & Loss Breakdown Growth and favorable product mix delivers strong operating leverage YTD June YTD June % var % var € Million 2019 2018 LY CER LY Net Sales increase vs 2018 boosted by performance of growth products Total Revenues 469.0 398.3 17.8% 15.8% and Almirall US new products Net
Slide 16: SG&A Evolution
H1 2019 SG&A Evolution Important investment in key launches funded by savings and prioritization -1.2% 28.4 Million Euros 145.1 143.4 -7.4 -22.7 H1 2019 SG&A w/o depreciation Savings & New launches Others SG&A w/o depreciation H1 2018 productivity H1 2019 CER -3.0% 14.1 75.8 73.5 -5.2 Q2 -11.2 2019
Slide 17: EBITDA to Normalized Net Income
H1 2019 EBITDA to Normalized Net Income Strong increase of Normalized EPS to €0.44 (+46% versus 2018) YTD June YTD June % var % var € Million 2019 2018 LY CER LY EBITDA 166.2 105.5 57.5% 53.0% EBITDA increase mainly driven by % of sales 38.6% 28.7% net sales performance, improved gross margin and ti
Slide 18: Balance Sheet
H1 2019 Balance Sheet June December € Million Var of BS 2019 2018 Goodwill 316.0 316.0 - Increase mainly due to in-licensing agreements (Dermira, Athenex) Intangible assets 1,171.2 1,121.2 50.0 Property, plant and equipment 113.2 115.2 (2.0) Financial assets 104.5 142.3 (37.8) Other non current asse
Slide 19: Cash Flow
H1 2019 Cash Flow Important improvement of Cash Conversion YTD June YTD June € Million 2019 2018 Profit Before Tax 73.6 59.3 Depreciation and amortization 65.2 40.0 Impairment (reversals) / losses 7.5 - Change in working capital (12.5) 4.5 Other adjustments (9.9) (39.0) Strong Operating Cash-Flow, C
Slide 20: Almirall Capital Allocation
Almirall Capital Allocation 1 • Invest in Product Launches - Build EU Psoriasis and US Acne franchise 2 • Strengthen R&D Pipeline – incl. in-licensing of late stage assets 3 • Secure stable dividend to shareholders 4 • Bolt-on M&A: accretive deals to reinforce our core business Financial Results & B
Slide 21: R&D Update
R&D Update Z A (© almirall
Slide 22: Pipeline Update Reinforcing Late Stage R&D Pipeline Potential
Pipeline Update Reinforcing Late Stage R&D Pipeline Potential Indication New Code (Old) Phase I Phase II Phase III Under registration Geography Actinic keratosis ALM14789 (KX2-391) Androgenic alopecia ALM12845 (P3074) Onychomycosis ALM12834 (P3058) Atopic dermatitis Lebrikizumab R&D Pipeline News Fl
Slide 23: Lebrikizumab Compelling Investment
Lebrikizumab Compelling Investment • Atopic dermatitis is an underserved and growing market Sizeable • Predicted to be as large as approximately $21 billion by 2027* globally market • Need for new, differentiated therapy • Lebrikizumab has a very high affinity for the cytokine IL-13 and has the pote
Slide 24: Lebrikizumab Differentiation Traits
Lebrikizumab Differentiation Traits The two receptors of IL-13 • Lebrikizumab has a very high affinity for IL-13. • Lebrikizumab prevents the signaling of IL-13 through the heterodimeric receptor (IL-4Ra/IL- 13Ra1). • Lebrikizumab allows IL-13 to bind to IL-13Ra2 receptor, postulated to have an anti
Slide 25: Lebrikizumab Compelling Efficacy Profile
Lebrikizumab Compelling Efficacy Profile Phase IIb: Positive Topline Results • All three doses of lebrikizumab met primary endpoint with statistical significance • There was statistically significant improvement in Investigators Global Assessment (IGA)(1); and Eczema Area Severity Index (EASI) 75(2)
Slide 26: Lebrikizumab Innovative Product Opportunity
Lebrikizumab Innovative Product Opportunity Reinforcing Late Stage R&D Pipeline Potential Main milestones of the acquisition • Upfront payment for the option $30 MM (Feb-2019) • Option exercise fee of $50 MM (Jun-2019) • Up to an additional $115 MM of milestones related payments including: • Phase 3
Slide 27: Closing Remarks
Closing Remarks 27
Slide 28: Conclusions
Conclusions • Business continues to progress well: upgrading EBITDA guidance. • While we expect to growth 2019 Total Revenues at low double-digit, we are 1 upgrading our EBITDA guidance to €300-310MM for the full year (from €290-300MM initially) • Excellent momentum from our key Growth Drivers: • In
Slide 29: 2019 Full Year Guidance Upgraded
2019 Full Year Guidance Upgraded (*) Total EBITDA Revenues Between €300-€310 MM Low double-digit (previously between growth €290-€300 MM) * At constant exchange rates. 2019 guidance excludes ThermiGen and includes accounting changes (such as IFRS 16 and US wholesalers 'fee treatment). Financial Resu
Slide 30: Financial Appendices
Financial Appendices 30
Slide 31: Income Statement CER
H1 2019 Income Statement CER YTD June YTD June YTD June % var. % var June € Million var. EURO CER 2019 2019 CER 2019 2019 Actual 2018 CER Actual Total Revenues 461.4 469.0 7.6 398.3 15.8% 17.8% USD 1.21 1.14 CHF 1.17 1.13 Net Sales 424.6 430.3 5.7 367.4 15.6% 17.1% GBP 0.88 0.87 Other Income 36.8 38
Slide 32: Q2 2019 vs Q2 2018
Q2 2019 vs Q2 2018 € Million Q2 2019 Q2 2018 var. Total Revenues 236.8 196.3 20.6% Net Sales 205.9 178.1 15.6% Other Income 30.9 18.2 69.8% Cost of Goods (61.2) (56.2) 8.9% Gross Profit 144.7 121.9 18.7% % of sales 70.3% 68.4% R&D (22.2) (19.6) 13.3% % of sales (10.8%) (11.0%) SG&A (102.5) (91.5) 12
Slide 33: Dermatology sales breakdown
H1 2019 Dermatology sales breakdown YTD June YTD June € Million % var vs LY 2019 2018 Europe 113 95 18.9% Ciclopoli franchise 24 23 4.3% Skilarence 16 8 100.0% Solaraze 15 16 (6.3%) Decoderm franchise 13 13 0.0% Ilumetri 8 - n.m. Others 37 35 5.7% US 79 19 n.m. RoW 4 4 0.0% Total Derma Rx 196 118 66
Slide 34: Net Sales by Geography
H1 2019 Net Sales by Geography YTD June YTD June % var vs € Million 2019 2018 LY Europe 295.9 280.9 5.3% US 83.3 28.8 189.0% Emerging Markets 51.1 57.7 (11.4%) Total 430.3 367.4 17.1% Financial Results & Business Update 34 Financial Appendices
Slide 35: Leading Product Sales
H1 2019 Leading Product Sales YTD June YTD June % var vs € Million 2019 2018 LY Ebastel franchise 40 36 11.2% Aczone 38 - n.m. Efficib/Tesavel 25 25 2.7% Ciclopoli franchise 25 24 4.2% Crestor 17 22 (23.7%) Skilarence 16 8 102.0% Solaraze 15 16 (5.3%) Almax 15 14 4.6% Sativex 15 13 9.8% Decoderm 14
Slide 36: Reconciliations with audited financial statements Gross Margin & EBITDA
Reconciliations with audited financial statements Gross Margin & EBITDA € Million YTD June 2019 YTD June 2018 Revenues (1) 432.6 367.4 ThermiGen Net Sales (3) (2.3) - Net Sales 430.3 367.4 - Procurements (1) (88.8) (82.6) ThermiGen Procurements (3) 1.6 - - Other manufacturing costs (2) Staff costs (
Slide 37: Reconciliations with audited financial statements EBIT & Net Financial income/(expenses)
Reconciliations with audited financial statements EBIT & Net Financial income/ (expenses) € Million H1 2019 H1 2018 EBITDA 166.2 105.5 - Amortization & Depreciation (65.2) (40.0) EBIT 101.0 65.5 € Million H1 2019 H1 2018 Financial income 0.8 0.4 Financial cost (4.8) (2.0) Change to fair value in fin
Slide 38: www.almirall.com
For further information, please contact: Pablo Divasson del Fraile Investor Relations & Corporate Comms. Tel. +34 93 291 3087 pablo.divasson@almirall.com Or visit our website: www.almirall.com