CSL Limited · ASX:CSL
CSL — H1 2006 Earnings Presentation
23 slides from CSL's earnings presentation, Feb 22, 2006
Slide 1: CSL Limited 2005/2006 Half Year Result
CSL Limited 2005/2006 Half Year Result 22 February 2006
Slide 2: Disclaimer
Disclaimer Forward looking statements The forward looking statements included in these materials involve subjective judgment 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 spe
Slide 3: Highlights
Highlights Financial • Profit upgrade • Reported NPAT $176m • Operating Cashflow $264m • EPS 97cents - successful completion of buyback • Interim Dividend 28 cents (unfranked) Operational • GARDASIL™ accepted for priority review by US FDA • US influenza entry strategy announced • ZLB Behring margin
Slide 4: Financial Performance
Financial Performance Reported(1) Continuing Change 1H06 Operations(2) 1H05 v 1H05 A$M A$M 1H06 Sales 1,393 1,295 8% EBITDA 311 277 13% EBIT 261 216 21% NPAT 176 114 54% EPS 0.97 - - CFO 264 194 36% (1) Results for the six months ended 31 December 2005 are reported in accordance with the AIFRS. The
Slide 5: Human Health Business Unit Performance
Human Health Business Unit Performance - ZLB Behring - Other - Pharmaceutical - CSL Bioplasma - R&D innovation
Slide 6: ZLB Behring
ZLB Behring • Sales A$1,211m (US$911m) • EBITA A$262m • Operations – Strong US$ sales growth +13% • Helixate™ sales up 21% – US market continues to improve – Vivaglobin™ US FDA approval • Launch imminent – 12% Liquid IVIG - US FDA submission imminent – Successful replacement of inventory benefit wit
Slide 7: ZLB Behring - Strong EBITA Margin Expansion
ZLB B - Strong EBITA Margin Expansion $Am 300 EBITA Up 43% 250 Inventory Discount 200 150 Inventory +160% Discount 100 Dec 04 Dec 05 Dec 04 50 AGAAP IFRS IFRS (Excludes inv. (Excludes inv. Disc) Disc) 0 178 183 262 EBITA 7
Slide 8: ZLB Behring Sales
ZLB Behring Sales Movement 1,000 +13% US$911m 900 Other • Strong Helixate™ growth US$803m 800 – Sales up 21% Immuno- 700 globulins • Solid growth in albumin, 600 500 Wound H pdFVIII and speciality Critical 400 Care products 300 pdCoag • Pricing stable across most 200 therapies 100 rFVIII – IVIG pric
Slide 9: ZLB Behring - R&D
ZLB Behring - R&D • Coagulation – FDA approves room temperature storage of Helixate™ FS – Humate-P™ /Haemate™ P volume reduction • approvals – 7 EU countries and USA • Critical Care – Berinert™ P (C1 esterase inhibitor) • Phase III trial active in EU and USA • Immunology – FDA approval of Vivaglobin
Slide 10: CSL Bioplasma
CSL Bioplasma • Sales $92m (-30%) • Australian Business – NBA recombinant policy toward haemophilia • Impact on pdFVIII and pdFIX sales • Kogenate® distribution agreement in place – Plasma Products Agreement • Removal of two tier pricing mechanism introduces a more even revenue stream 1H v 2H • US F
Slide 11: Pharmaceutical
Pharmaceutical • Sales $90m (+14%) – Growth in Northern Hemisphere Influenza Vaccine sales • GARDASIL™ accepted for accelerated review in Australia • New agreement signed with Merck for Australian distribution of vaccines – ZOSTAVAX™, RotaTeq®, ProQuad® 11
Slide 12: Influenza Vaccine - US Entry
Influenza Vaccine - US Entry – Experienced influenza vaccine manufacturer • Registered in 16 countries world wide • Bulk antigen supplied for vaccines sold in 24 countries – US$60m investment in Australian facility • Doubling capacity to 40m doses per season – Plan to supply up to 20m doses to the U
Slide 13: R&D Highlights
R&D Highlights • HPV - GARDASIL™ – Merck’s submission to US Food and Drug Administration is accepted for priority review • FDA indicate review goal date of 8 June 2006 – Merck has also made applications to • European Union, Australia, Mexico, Brazil, Argentina, Taiwan and Singapore • ISCOMATRIX™ adj
Slide 14: Financial Detail
Financial Detail Gail Limited cals for Life
Slide 15: Continuing Operations - NPAT Growth
Continuing Operations - NPAT Growth $Am 200 Goodwill + Other 160 Tax NPAT Up 54% 120 JRH 80 40 Dec 04 Continuing Dec 05 Dec 04 Operations IFRS IFRS Dec 04 AGAAP 0 160 26 56 131 17 114 176 15 NPAT
Slide 16: Continuing Operations - EBITA Growth
Continuing Operations - EBITA Growth $Am 300 EBITA Up 21% 250 Inventory Other JRH Discount 200 Inventory Discount 150 100 50 Dec 04 Dec 04 1H06 Dec 05 IFRS Underlying AGAAP IFRS IFRS Dec 04 0 239 3 242 25 217 264 16 EBITA
Slide 17: Cash Flow from Operations
Cash Flow from Operations – CFO $264m up 38% – Strong working capital management • Improved inventory turns 1.83 • Working capital to sales 42% – Capital Expenditure • 6 months to December 31 $38m – Outlook • CFO approx. $500m • Capital expenditure approx. $90m 17
Slide 18: Capital Expenditure - Investment
Capital Expenditure - Investment • Chromatographic 10% liquid IVIG Bern facility $50m • Influenza manufacturing Melbourne facility $80m • Filling line Bern facility $20m • ISCOMATRIX™ manufacturing Kankakee facility $20m • R&D Investments $10m A$180m 18
Slide 19: A-IFRS Restatement
A-IFRS Restatement – 2004 comparatives restated to A-IFRS – Adjustments consistent with previous announcement – Reconciliation of change in NPAT from AGAAP to A-IFRS A$M NPAT December 2004 AGAAP $160 Less A-IFRS adj (net of tax) Goodwill 24 Misc. 4 Share based payments (1) Non cash tax adj. (56) (29
Slide 20: Group Outlook
Group Outlook Outlook for FY2006 • Sales revenue growth 5-8% • R&D spend approximately $150m • EBITA in region of $500m - $530m • NPAT in region of $335m - $350m – Includes IFRS non cash tax adjustment (approx. $33m) • Dividends not significantly franked * Subject to currency fluctuation and materia
Slide 21: Growth Strategy
Growth Strategy •ISCOMATRIX •Novel Biotech products •Influenza vaccine •Improved •HPV royalties products •Gardasil (Aust) Global Specialty Bio- pharmaceutical Research & Development 21
Slide 22: Appendix
Appendix BSh Limited Biopharmaceuticals for Life
Slide 23: Group Results
Group Results H alf year ended D ecem ber 1H 06 1H 05 $M $M Sales 1,393.1 1,414.1 O ther R evenue 24.9 21.4 T otal R evenue 1,418.0 1,435.5 E arnings before Interest, T ax, D epreciation & A m ortisation 311.2 302.6 D epreciation / A m ortisation 50.3 62.2 N et Interest Expense 9.0 16.1 Tax Expense