H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Shareholder Meeting (March 2016)
47 slides from H. Lundbeck A/s Class A's shareholder meeting presentation, Mar 31, 2016
Slide 1: 2016 Annual General Meeting
2016 ANNUAL GENERAL MEETING H. LUNDBECK A/S 31 March 2016
Slide 2: Welcome
Welcome HÅKAN BJÖRKLUND Chairman of the Board of Directors 2
Slide 3: Executive Management
Executive Management KÅRE SCHULTZ ANDERS GERSEL PEDERSEN ANDERS GÖTZSCHE JACOB TOLSTRUP LARS BANG STAFFAN SCHÜBERG 3
Slide 4: Board of Directors
Board of Directors HÅKAN BJÖRKLUND LENE SKOLE TERRIE CURRAN MONA ELSTER LARS HOLMQVIST HENRIK JENSEN JØRN MAYNTZHUSEN JESPER OVESEN LARS RASMUSSEN 4
Slide 5: Agenda
Agenda 1. Report of the Board of Directors on the Company's activities during the past year 2. Presentation and approval of the annual report 3. Resolution on the appropriation of profit or loss as recorded in the adopted annual report 4. Election of members to the Board of Directors 5. Approval of
Slide 6: Item 1: Report from the Board of Directors
Item 1: Report from the Board of Directors HÅKAN BJÖRKLUND Chairman of the Board of Directors 6
Slide 7: 2015 – another year of progress
2015 – another year of progress Commercial Research & Development Continuation of the most extensive launch FDA approval of Rexulti® in the US period in Lundbeck’s history (depression & schizophrenia) Growth of our key products Brintellix® sNDA submission in the US Abilify Maintena® (cognition data
Slide 8: 2015 financial performance aligned with expectations
2015 financial performance aligned with expectations Guidance Reported Reported Index 2015 2015 2014 DKKbn DKKm DKKm Revenue ~14 14,594 13,468 108 EBIT ~(6.8) (6,816) 99 N/A Core EBIT ~0.7 847 1,228 69 8
Slide 9: Long-term financial targets
Long-term financial targets EBIT margin ROIC Cash-to-earnings 25% 25% >90% Targets within a 3-5 year period 9
Slide 10: Profitability to increase short-term
Profitability to increase short-term Future EBIT margin improvements 25 Effects from restructuring program EBIT margin (%) 0 Growth in key products with higher margins -25 Erosion of low-margin products such as Azilect® and Xenazine® -50 2010 2011 2012 2013 2014 2015 2016e Long-term target EBIT marg
Slide 11: Strong share price development
Strong share price development DKK 250 200 150 100 01 jan 01 feb 01 mar 01 apr 01 maj 01 jun 01 jul 01 aug 01 sep 01 okt 01 nov 01 dec 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 11
Slide 12: Our vision
Our vision We strive for global leadership in psychiatry and neurology by improving the lives of patients 12
Slide 13: Item 2: 2015 Annual Report
Item 2: 2015 Annual Report KÅRE SCHULTZ President & CEO 13
Slide 14: Stable revenue performance in period of transformation
Stable revenue performance in period of transformation DKKm Revenue 20,000 15,000 14,594 10,000 5,000 0 2011 2012 2013 2014 2015 Key products* Other products 14 *Abilify Maintena®, Brintellix®, Northera®, Onfi®, Rexulti®
Slide 15: Regional sales performance and distribution
Regional sales performance and distribution - significant growth in the important US market 2014 sales distribution 2015 sales distribution Total: DKK 13,468 million Total: DKK 14,594 million 3,758 20% (28%) 3,827 4,144 (26%) 6,353 (31%) (44%) 5,019 3,896 (37%) (27%) US Europe International Markets
Slide 16: 2015 revenue and growth by key product
2015 revenue and growth by key product Revenue Growth (DKKm) (%) 669 220 629 235 1,757 90 475 1,868 117 - 16
Slide 17: Strong revenue growth of our key products in 2015
Strong revenue growth of our key products in 2015 Revenue DKKm 4,000 +171% 3,000 Key products revenue 2,000 grew by 171% in 2015, constituting 1,000 25% of total revenue 0 2011 2012 2013 2014 2015 Rexulti Onfi Northera Brintellix Abilify Maintena 17
Slide 18: Restructuring program well on track
Restructuring program well on track: ~85% of planned headcount reductions carried out Share of gross reductions of around 1,000 Europe Headquarter Outside Europe ~300 ~250 ~450 18
Slide 19: Our vision
Our vision VISION We strive for global leadership in psychiatry and neurology by OUR PRINCIPLES improving the lives of patients STRATEGIC OBJECTIVES 19
Slide 20: Our principles
Our principles We are focused on innovating treatments for depression, schizophrenia, Parkinson’s disease and Alzheimer’s disease while creating value for all our stakeholders VISION We are passionate about helping patients and communities affected by OUR PRINCIPLES psychiatric and neurological diso
Slide 21: Our strategic objectives
Our strategic objectives Four disease areas We will strive for leadership in the treatment of depression, schizophrenia, Parkinson’s disease and Alzheimer’s disease Innovation We will develop innovative treatments that address unmet VISION patient needs Globalization We will expand and optimize our
Slide 22: Depression
DEPRESSION ”If I got up, I knew I would have to pick out some clothes to wear, and that decision was so paralyzing that I would remain in bed.” 350 million people worldwide 65% $210 billion is estimated to be the of people living with RANDI, 56 YEARS, DENMARK are living with depression depression ra
Slide 23: Schizophrenia
SCHIZOPHRENIA ”My curling iron wanted to burn the house down. When I bought cigarettes, the petrol station threatened to explode.” 21 million people worldwide are 36% only of people with 2.5% in the US and 1.5% in the UK MARIA, 23 YEARS, DENMARK suffering from schizophrenia schizophrenia receive is
Slide 24: Alzheimer's disease
ALZHEIMER’S DISEASE ”I chat with my doll in the red velvet dress every morning. She used to have a name. But I don’t remember it.” 48 million people worldwide are 7.7 million new cases of $604 billion is estimated to be the ELEANOR, 85 YEARS, USA living with Alzheimer’s disease dementia every year t
Slide 25: Parkinson's disease
PARKINSON’S DISEASE ”My face has grown expressionless over time. The disease paralyses my facial muscles, so they can no longer move as before. It is like a poker face.” 6 1.6% $25 billion is estimated to be the million people worldwide of the population aged HE WEI, 57 YEARS, CHINA are living with
Slide 26: Our path to category leadership within the four disease areas
Our path to category leadership within the four disease areas Current products Pipeline Research projects Depression Research Schizophrenia Lu AF35700 projects Rexulti Idalopirdine Alzheimer’s Lu AF20513 Research projects Parkinson’s Early clinical Research projects projects 26
Slide 27: Financial results
Financial results DKKm 2015 2014 Index Revenue 14,594 13,468 108 Cost of sales 5,395 4,160 130 Sales and distribution costs 6,706 5,164 130 Administrative expenses 1,160 1,134 102 Research and development costs 8,149 2,911 280 EBIT (6,816) 99 N/A - margin (46.7%) 0.7% Net financials (190) (155) N/A
Slide 28: Balance sheet and cash position
Balance sheet and cash position DKKm 31.12.2015 31.12.2014 Intangible assets 9,794 12,670 Other non-current assets 3,871 3,581 Current assets 7,660 9,386 Assets 21,325 25,637 Equity 8,785 13,526 Non-current liabilities 4,792 4,909 Current liabilities 7,748 7,202 Equity & Liabilities 21,325 25,637 Ca
Slide 29: Cash flow
Cash flow DKKm 2015 2014 Cash flows from operating activities 197 1,610 Cash flows from investing activities (2,842) (3,396) Cash flows from operating and investing activities (2,645) (1,786) Cash flows from financing activities 501 589 Net cash flow for the year (2,144) (1,197) Cash and bank balanc
Slide 30: Item 2: Approval of the annual report
ITEM 2: APPROVAL OF THE ANNUAL REPORT 30
Slide 31: Item 3: Resolution on the appropriation of profit or loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS 31
Slide 32: Item 3: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2015 Share Profit/(loss) for the year (5,694) Transfer to distributable reserves (5,694) 100% Proposed dividends for the year 0 0% 32
Slide 33: Item 4: Election of members to the Board of Directors
ITEM 4: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS 33
Slide 34: Members of the Board of Directors - elected at the 2015 AGM
Members of the Board of Directors - elected at the 2015 AGM Remuneration Audit Scientific Members Independent Committee Committee Committee Håkan Björklund, Chairman YES √C √ Lene Skole, Deputy Chairman NO √ √ Terrie Curran YES √ Lars Holmqvist NO √ Lars Rasmussen YES √ Jesper Ovesen YES √C Mona Eli
Slide 35: Members of the Board of Directors - proposed for election at the 2016 AGM
Members of the Board of Directors – proposed for election at the 2016 AGM Members Independent Lars Rasmussen, Chairman YES Lene Skole, Deputy Chairman NO Terrie Curran YES Lars Holmqvist NO Jesper Ovesen YES Mona Elisabeth Elster Employee representatives elected by Jørn Møller Mayntzhusen the Danish
Slide 36: Item 4: Election of members to the Board of Directors
Item 4: Election of members to the Board of Directors LARS RASMUSSEN LENE SKOLE TERRIE CURRAN LARS HOLMQVIST JESPER OVESEN 36
Slide 37: Item 5: Approval of remuneration
ITEM 5: APPROVAL OF REMUNERATION 37
Slide 38: Item 5: Approval of remuneration
Item 5: Approval of remuneration Approval of remuneration for the Board of Directors for the current financial year Board of Directors Member of the Board DKK 300,000 Deputy Chairman DKK 600,000 Chairman DKK 900,000 Committees Member of the Committee DKK 200,000 Chairman DKK 300,000 38
Slide 39: Item 6: Election of state-authorized public accountants
ITEM 6: ELECTION OF STATE-AUTHORIZED PUBLIC ACCOUNTANTS 39
Slide 40: Item 6: Election of State Authorized Public Accountants
Item 6: Election of State Authorized Public Accountants Deloitte, Statsautoriseret Revisionspartnerselskab Erik Holst Jørgensen Lars Andersen State Authorized Public Accountant State Authorized Public Accountant 40
Slide 41: Item 7: Proposals from shareholders or the Board of Directors
ITEM 7: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS 41
Slide 42: Item 7: Proposals - Amendment of Remuneration Guidelines
Item 7: Proposals from shareholders or the Board of Directors 7.1. Amendment of Remuneration Guidelines - The Board of Directors proposes to adopt the amended Remuneration Guidelines for the Board of Directors and the Executive Management of H. Lundbeck A/S. In 2015 the annual general meeting adopte
Slide 43: Item 7: Amendment of Remuneration Guidelines (cont.)
Item 7: Proposals from shareholders or the Board of Directors 7.1. Amendment of Remuneration Guidelines (cont.) - Possibility of granting the present CEO access to participate in the 2014 Warrant Program on equal terms as the former CEO, which is no longer part of the program. This implies among oth
Slide 44: Item 7: Acquisition of own shares
Item 7: Proposals from shareholders or the Board of Directors 7.2. Acquisition of own shares - It is proposed to authorise the Board of Directors until the next annual general meeting to allow the Company to acquire own shares of a total nominal value of up to 10% of the share capital in accordance
Slide 45: Item 7: Registration of the adopted amendments
Item 7: Proposals from shareholders or the Board of Directors 7.3. Registration of the adopted amendments - The Board of Directors proposes to authorise the Chairman of the general meeting to make such amendments and additions to the resolutions passed by the general meeting and the application for
Slide 46: Item 8: Any other business
ITEM 8: ANY OTHER BUSINESS 46
Slide 47: Thank you and goodbye
THANK YOU AND GOODBYE See you at next year’s Annual General Meeting 2016 ANNUAL GENERAL MEETING H. LUNDBECK A/S 31 March 2016