Ucb S.a. · EURONEXT:UCB
Ucb — ESG Presentation (November 2022)
50 slides from Ucb's sustainability presentation, November 2022
Slide 1: UCB ESG Presentation
UCB ESG Presentation November 2022
Slide 2: Disclaimer & Safe Harbor
Disclaimer & Safe Harbor Forward-looking statements This presentation contains forward-looking statements, including, without limitation, statements containing the words “believes”, “anticipates”, “expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will”, “continue” and similar expressions.
Slide 3: Agenda
01 Sustainability is an integrated part of UCB Proprietary and Confidential Property of UCB Agenda 02 Creating value for our key stakeholders in society 03 Summary of our performance 3
Slide 4: Sustainability is an integrated part of UCB
01 Sustainability is an integrated part of UCB Proprietary and Confidential Property of UCB 4
Slide 5: UCB key figures
UCB key figures* Our areas of focus Proprietary and Confidential Property of UCB >3.7 million 36 8,561 patients treated presence in employees countries neurology 5.78 billion € 28% 28% immunology revenue R&D/revenue ratio adj. EBITDA/ revenue ratio *As of December 2021 More details in the 2021 UCB I
Slide 6: We are defined by our purpose
We are defined by our purpose: Creating value for patients now and into the future. Proprietary and Confidential Property of UCB And sustainability is at our core, guided by our materiality assessment. 6
Slide 7: Sustainability is at the core of UCB
Sustainability is at the core of UCB Our focus on long term value creation is supported Sustainable value creation in Art. 3.1.1 of by Financiere de Tubize, our reference shareholder the UCB Corporate Governance Charter 3% Proprietary and Confidential Property of UCB 6% Shareholder structure* Financ
Slide 8: UCB Board of Directors
UCB Board of Directors • 14 members o Mandate: 4 year o Age limit: 70 • 5 women (36%) • 8 independent directors (57%) Proprietary and Confidential Property of UCB • 7 nationalities • One executive board member (CEO) • Convincing mix of skills & experience including on sustainability and ESG matters
Slide 9: Our governance supports our commitment to sustainable performance
Our governance supports our commitment to sustainable performance Oversees sustainability as a whole and through BOARD OF its committees DIRECTORS Proprietary and Confidential Property of UCB CEO & EXTERNAL Adviser to CEO and leadership. Provides an annual report to the Board. Own sustainable perfor
Slide 10: UCB External Sustainability Advisory Board
UCB External Sustainability Advisory Board Charlotte ERSBØLL Teresa FOGELBERG Bright SIMONS Founding partner at Hansen & Ersbøll Agenda Founder and President of mPedigree Proprietary and Confidential Property of UCB Background Chair of the UCB ESAB Background Co-founder and Deputy Chief Executive of
Slide 11: Our ethics in action
Our ethics in action 98% of UCB employees completed the Code of Conduct training in 2021* Proprietary and Confidential Property of UCB Yearly ethical culture survey has shown in 2021 that: • 93.5% of respondents agree they have a personal responsibility for making sure UCB behaves ethically • 91% of
Slide 12: Driving sustained growth while making a positive impact on society
Driving sustained growth while making a positive impact on society (as of Dec 2021*) Value for patients >3.7 million patients treated 31% reimbursement for all patients within regulatory labels 55% reimbursement for some patients but not all within regulatory labels 7 late-stage assets in pipeline V
Slide 13: Recognized for our ESG performance across key ESG rating providers
We are recognized for our ESG performance across key ESG rating providers 2020 2021 2022 Industry rank 3/443 25.4 16.8 16.3* of the biotechnology sub-industry Proprietary and Confidential Property of UCB A A AA UCB is a leader (top 24%) in the pharmaceutical industry Top 10% of pharmaceutical & C C+
Slide 14: Linking remuneration to sustainable performance
Linking remuneration to sustainable performance We aim to drive sustainable value creation while fostering a working environment where people can thrive. Proprietary and Confidential Property of UCB Our reward principles serve as a basis Stimulating sustained high performance for what UCB aims to in
Slide 15: Key performance indicators influence executive remuneration
Collective financial and extra-financial key performance indicators influence executive remuneration as of 2022 BONUS LTI – PERFORMANCE SHARES Proprietary and Confidential Property of UCB Individual Corporate Negative • Incentivize the achievement of 3-year revenue performance performance modifier a
Slide 16: Creating value for our key stakeholders in society
02 Creating value for our key stakeholders in society Proprietary and Confidential Property of UCB 16
Slide 17: Creating Value for Patients
Creating Value for Patients Proprietary and Confidential Property of UCB We innovate to bring differentiated solutions with unique outcomes that help diverse patients achieve their life goals. We are committed to improving access to these solutions for all patients who need them in a way which is vi
Slide 18: UCB late-stage pipeline
UCB late-stage pipeline Addressing unmet medical needs and bringing clinically-meaningful improvements to people living with epilepsy and neuroinflammatory & neurodegenerative diseases Peptide inhibiting complement 5 with a rapid response and significant improvements of MG symptoms as seen in pivota
Slide 19: UCB late-stage pipeline
UCB late-stage pipeline Addressing unmet medical needs and bringing clinically-meaningful improvements to people living with severe dermatological and rheumatological diseases Proprietary and Confidential Property of UCB PHASE 1 PHASE 2 PHASE 3 FILING BIMZELX® (bimekizumab; IL-17A&F inhibitor) Pote
Slide 20: Increasing diversity in clinical trials
Working to ensure that participants in UCB clinical trials are reflective of the populations that will ultimately benefit from our new medicines Increasing diversity in clinical trials Race and ethnicity distribution among UCB US trial participants* Key Programs compared with US 2020 CENSUS BUREAU**
Slide 21: We put access to our solutions high on our agenda
We put access to our solutions high on our agenda OUR APPROACH • Integrating access from early development • Engaging with external stakeholders Our goal is that by 2030, all patients who Proprietary and Confidential Property of UCB • Conducting health equity research projects need our medicines in
Slide 22: Working in partnership with healthcare systems to ensure timely access
Working in partnership with healthcare systems to ensure timely access to patients who need our solutions in countries where we operate Access Performance Index 2021* How we calculate UCB Access Performance Index • In a specific country, access is evaluated at decision Proprietary and Confidential P
Slide 23: Patient assistance programs and health equity research projects in the US
Patient assistance programs and health equity research projects to address the needs of under-served populations in the US Patients benefitting from UCB Understanding and addressing health disparities to improve patient assistance programs* experience and health outcomes 120,000 “Hispanic CARE” Rese
Slide 24: Our 1st social business in Mumbai, India for persons with epilepsy
Our 1st social business in Mumbai, India for persons with epilepsy Goal is to improve the situation of persons Number of persons screened and patients enrolled in UCB 1st with epilepsy on a sustainable basis* social business as of October 2022 (per month) 500 447 Proprietary and Confidential Propert
Slide 25: Increasing patient reach and revenues in the US while net prices declined
We are increasing patient reach and revenues in the US while our net prices have declined in the last 2 years Patients* treated by UCB products in the US and US net sales Change in UCB US product portfolio pricing 2017-2021* 450,000 3,500 Proprietary and Confidential Property of UCB 400,000 2,888 3,
Slide 26: Increasing patient reach and revenues including in Low-and-Medium Income Countries
We are increasing patient reach and revenues with our key assets including in Low-and-Medium Income Countries Cimzia® in Brazil UCB assets 2021 Number of Progress in patient Presence in countries available to Revenues in patients reached in reach vs. 2020 (UCB and distributors) In 2021, close to 15,
Slide 27: Creating value for our employees
Creating value for our employees Proprietary and Confidential Property of UCB At UCB, we value and nurture diverse perspectives and backgrounds and show respect and care for each other. We are made stronger because of our culture of innovation and collaboration which allows us to create value for pa
Slide 28: UCB employees see purpose in their work
UCB employees see purpose in their work Proprietary and Confidential Property of UCB Global Engagement Score is the average of responses to: 77% Purpose The work that I do at UCB is meaningful to me. 74/100 Retention I rarely think about looking for a job at a different company. Global Pride I feel
Slide 29: We continue to prioritize health, safety and wellbeing of our people
We continue to prioritize the health, safety and wellbeing of our people 2019 Launch Safety beyond 0 program (securing potential Life Changing Activities) 2020 • Delivery Model definition Proprietary and Confidential Property of UCB • First Health, Safety and Wellbeing Survey 2021 • > 95% of our emp
Slide 30: We measure our progress on health, safety and wellbeing
And we measure our progress on health, safety and wellbeing Health, Safety and Wellbeing Index 2021* Loss time Incident 100% SAFETY Rate (performance vs target) Proprietary and Confidential Property of UCB Annual Global Survey on current HSWB status 81,9% and areas for improvement 74,1% Employee met
Slide 31: We inspire a culture of inclusion
We inspire a culture of inclusion by providing equitable opportunities to all employees, embracing diverse talents and leveraging diversity of thought and experience STRATEGIC DIRECTION FOCUS IN 2022 AMBITION IMPACT Proprietary and Confidential Property of UCB Diversity, Equity and Inclusion (DE&I)
Slide 32: We are on track to deliver on our DE&I aspirations
We are on track to deliver on our DE&I aspirations 2025 Aspirations Our progress towards 2025 8 Employee Resource Groups (ERGs) in 2021* Gender diversity 2021: 37%/63% Gender balance at executive level: 45/55 by 2025 Proprietary and Confidential Property of UCB MEMBERSHIP WORKFORCE Under-represented
Slide 33: Valuing the Planet
Valuing the Planet Proprietary and Confidential Property of UCB We take a long-term view of our business activities. We strive to uncouple our growth from our environmental footprint so that we can protect the planet for future generations. 33
Slide 34: Protecting human health also means safeguarding the health of our planet
It is now clearer than ever that protecting human health also means safeguarding the health of our planet Proprietary and Confidential Property of UCB Source: World Health Organization. Link. 34
Slide 35: Clear targets for becoming carbon neutral by 2030
We set clear targets* for becoming carbon neutral by 2030 and reducing our environmental impact Proprietary and Confidential Property of UCB Reduce CO2e emissions and become Reduce water withdrawal by 20% by Reduce waste production by 25% by carbon neutral for the operations we 2030. 2030. control d
Slide 36: Our path to carbon neutrality by 2030
Our path to carbon neutrality by 2030 Scope 1 & 2 (TCO2e)* Scope 3 “goods and service suppliers”: Key initiatives across scope 1,2 and 3 100,000 % of suppliers (By CO2e emissions) committed to Sciences Based Targets • Move to energy generated from renewable 80,000 sources, purchased or produced on U
Slide 37: Reducing water withdrawal by 20% by 2030
Reducing water withdrawal by 20% by 2030 compared to our 2015 baseline Water (m3)* Key programs 1,200,000 Proprietary and Confidential Property of UCB Reducing 1,000,000 335,539 • Replace existing equipment, processes and behaviors with more ecofriendly equivalents Forecasting “Do Nothing” 800,000 •
Slide 38: Green-by-design approach to minimize waste generation
We follow a green-by-design approach to minimize waste generation Total waste (Tons) Key programs 12,000 10,000 Proprietary and Confidential Property of UCB 9,745 • Reducing fresh raw materials use in new chemical synthesis 8,712 8,000 • Zero domestic plastic in all our sites 7,090 6,970 6,605 6,000
Slide 39: Creating value for our communities
Creating value for our communities Proprietary and Confidential Property of UCB We aim to support people living in the communities where we operate, deepening our local connections and helping to address disparities in health and education amongst under-served populations 39
Slide 40: Committed to create value for communities where we live and work
We are committed to create value for communities where we live and work Supporting underserved populations through philanthropy Proprietary and Confidential Property of UCB Supported 18 organizations in the US that provided STEM* UCB Community Health Fund education opportunities to more 99 projects
Slide 41: Supporting STEM education for more than 20,000 students
Supporting STEM education for more than 20,000 students in 2021 with a focus on K-12 youngsters in underserved populations Proprietary and Confidential Property of UCB 41
Slide 42: UCB Community Health Fund
UCB Community Health Fund Supporting underserved populations in communities where UCB operates Proprietary and Confidential Property of UCB 2020 - 2021 summary. Developed with UCB's Visualization Community 42
Slide 43: Creating value for our shareholders
Creating value for our shareholders Proprietary and Confidential Property of UCB We pay attention to patient insights and societal challenges to guide how we do business, create value and generate sustainable business growth. We aim to deliver long-term value to our shareholders, now and into the fu
Slide 44: Eight Years of Strong Growth
Eight Years of Strong Growth Continued investment in innovation to deliver growth Annual Revenue Adjusted EBITDA +8% CAGR +15% CAGR Proprietary and Confidential Property of UCB € 5.8bn € 1.6bn Ratio € 3.1bn 28% 28% € 0.5bn 17% 2013 Revenue 2014-2020 2021 2013 Revenue 2014-2020 2021 44
Slide 45: 2022 HY Financial Highlights
2022 HY Financial Highlights HY 2022 Actual CER Net Sales € 2 705 million +2% (-1% CER) € 2 925 Revenue Driven by good portfolio growth, compensated by generic erosion to VIMPAT/U.S. and +5% +3% million E KEPPRA/Japan; Other revenue with one-off € 70m Gross margin declined from 75% to 71% due to FIN
Slide 46: Updated Financial Guidance for 2022 - Confirmed
Updated Financial Guidance for 2022 - Confirmed As of 24 June 2022 Revenue expected € 5.30 - 5.40bn Peak sales guidance Proprietary and Confidential Property of UCB Continued core products growth, loss of exclusivity for E KEPPRA® in Japan, for VIMPAT® in the U.S. and the EU, FINTEPLA® sales Adjuste
Slide 47: Guidance 2025
Guidance 2025 At least € 6bn top line Financial guidance Low- to mid-thirties adj. EBITDA margin Improved ESG rating performance Proprietary and Confidential Property of UCB 2025 How We Get There… Topline Evolution Building Blocks Margin BRIVIACT® 2025 NAYZILAM® Adjusted EVENITY® Gross Improving tha
Slide 48: Summary of our performance
03 performance Summary of our 48 Proprietary and Confidential Property of UCB
Slide 49: 2021 UCB performance as reported in our integrated annual report
2021 UCB performance as reported in our integrated annual report Proprietary and Confidential Property of UCB 7 late-stage assets in 1359 jobs created Strong financial 99 projects supported by 7% reduction in CO2 pipeline performance the UCB Community emissions vs. 2020 (and 81.9% for our health, >3
Slide 50: Proprietary and Confidential Property of UCB
Proprietary and Confidential Property of UCB