Slide 1: CSL Limited 2017 Half Year Results
CSL Limited 2017 Half Year Results 15 February 2017 CEO – Paul Perreault CFO – David Lamont
Slide 2: Legal Notice
Legal Notice Forward looking statements The materials in this presentation speak only as of the date of these materials, and include forward looking statements about CSL Limited and its related bodies corporate (CSL) financial results and estimates, business prospects and products in research, all o
Slide 3: Strategic Objectives
Strategic Objectives Maximize portfolio value & deliver new Growth product launches Be the most efficient, highest quality plasma Efficiency player Influenza Deliver on influenza strategy Pursue new opportunities to Innovation diversify portfolio and enhance growth People & Culture Create a culture
Slide 4: Operational Highlights - CSL Behring
Operational Highlights Growth CSL Behring • Product sales up 18% @ constant currency1 • Strong take-up of Idelvion® • Afstyla® approved by EC • CSL 830 (Haegarda®) – BLA accepted by US FDA • CSL 112 – positive results from phase 2b trial • Three new monoclonal antibodies enter phase 1 trials • Licen
Slide 5: Operational Highlights - Seqirus and Capital Management
Operational Highlights Growth Seqirus • Afluria® Quadrivalent approved by US FDA • Fluad® launched in the US • First to market in US for seasonal influenza vaccines Capital Management • New US$550 million private placement completed • New A$500 million share buy-back1 underway • ~11% complete2 1 CSL
Slide 6: Sales Highlights
Sales Highlights Growth Drivers Commentary IMMUNOGLOBULINS • Focussed sales & marketing efforts sales $1,426m +22%1 • CIDP indication in Europe • New patients, increasing home treatment HAEMOPHILIA • Strong patient penetration of Idelvion® in US & EU sales $514m +2%1 • Transition from Helixate® SPEC
Slide 7: Market Share Growth
Market Share Growth Growth M grams 80 US IG Market 70 Hizentra® 60 • SCIG leadership • CIDP indication anticipated 50 in 2018 40 Privigen® • EU label expansion - CIDP 30 Commercial Operations 20 • Enhanced capabilities, skills 10 & focus 0 2011 2012 2013 2014 2015 2016 7 Source: PPTA & CSL
Slide 8: IG – Strategic Imperatives
IG – Strategic Imperatives Growth 8
Slide 9: US Plasma Collection Centres
US Plasma Collection Centres Efficiency centres 600 CSL leading growth Growth • CSL has opened approx. 70 400 centres in the last 3 years Efficiency • Collection centres take 2-3 years to be optimised 200 • Single integrated platform • Donor payments increasing • Plasma market tight 0 2012 2013 2014
Slide 10: Seqirus on track
Seqirus Influenza Seqirus on track FY16 FY18 FY20 Acquisition Breakeven Revenue US$1bn; 20% EBIT • Organisational redesign • Full-year impact of product • Deliver on Holly Springs • Integrated processes launches - Step change in output • Culture change - Flucelvax® QIV - Drive efficiency - Afluria®
Slide 11: Diversifying the Portfolio
Diversifying the Portfolio Innovation R&D Investment FY16 - $614m New Product Development accounted for two thirds of R&D in FY16 • ~7% of sales Protein Science focus Life Cycle New Product • Plasma based Development • Recombinant technology Market Development Three new monoclonal antibodies into Ph
Slide 12: Near Term Products
Near Term Products Innovation 2016 2017 2018 2019 2020 2021 PRIVIGEN® PRIVIGEN® HIZENTRA® HIZENTRA® IsoLo CIDP US CIDP US/EU CIDP Japan PRIVIGEN® Japan PID/SID IDELVION® US AFSTYLA® CSL689 rVIIa-FP EU/Japan Prophylaxis IDELVION® EU CSL689 rVIIa-FP IDELVION® Japan On Demand AFSTYLA® US CSL830 CSL830
Slide 13: R&D Update
R&D Update Innovation Collaboration and License Agreement with Momenta for recombinant Fc mimetic molecules • Neurological indications treated by Ig are mediated by the Fc portion of Ig molecule • M230 is a trimeric Fc construct and a selective immunomodulator of Fc receptors • Plan to start Phase I
Slide 14: Global Workforce
People & Global Workforce Culture 14
Slide 15: Financials
Financials CFO – David Lamont 15
Slide 16: Financial Highlights
Financial Highlights Growth Revenue $3.7 billion, up 17% (up 18% @CC1) EBIT $1,095 million • Underlying2 EBIT up 38% @CC NPAT $806 million • Underlying NPAT up 36% @CC EPS $1.77 • Underlying EPS up 39% @CC Interim dividend increased to $0.64 1 Constant Currency (CC) removes the impact of exchange ra
Slide 17: Margin Development
Margin Development Growth % 50 EBITDA Margin 1H17 40 • Sales growth, especially specialty products 30 • Seqirus – turnaround progress Outlook1 20 • Margin to continue to benefit from transition to rCOAGs 10 • Portfolio mix benefits, especially with specialty product growth 0 • Ongoing Seqirus turnar
Slide 18: Debt Maturity Profile
Debt Maturity Profile Efficiency $m Private Placement Bank Debt New Private Placement 800 New US$550m private placement • Completed October 2016 • Weighted average fixed rate of 3.0% 600 • Average life of 12.5 years New bank debt facility 400 • A$350m with maturity of 3 years Total debt portfolio •
Slide 19: Notable Items
Notable Items Change in presentation of Financial Statements • Alignment with internal reporting • Expands revenue disclosure on face of P&L • New segment disclosure – including gross profit Expenses • Phasing of R&D skewed towards 2H • Borrowing costs up in line with debt levels • Tax - product mix
Slide 20: Outlook for FY17
Outlook for FY171 Growth NPAT growth2 ~ 18-20% @ CC3 EPS growth to exceed NPAT growth Outlook for remainder of FY17 • Continued strong demand for plasma therapy products • Ongoing growth in rCOAGs sales contribution Uneven profit profile between 1H and 2H arising from – • Competitor product supply r
Slide 21: Financial Appendix
Financial Appendix CSL 21
Slide 22: Group Results
Group Results Half year ended December Dec Dec Dec Dec Underlying2 US$ Millions 2015 2015 2016 2016 Change Reported Underlying2 Reported at CC1 % Sales 3,031 3,031 3,553 3,563 17.6% Other Revenue / Income 105 105 123 127 Total Revenue / Income 3,136 3,136 3,677 3,690 17.7% Earnings before Interest,
Slide 23: CSL Behring Sales
CSL Behring Sales Half year ended December Dec Dec Dec 2016 Change US$ Millions 2015 2016 CC1 % Immunoglobulins 1,181 1,426 1,442 22% Albumin 376 433 447 19% Haemophilia - Recombinants 203 232 233 15% - Plasma 306 282 287 (6%) Specialty 466 590 584 25% Total Product Sales 2,532 2,963 2,992 18% Other
Slide 24: FY17 Financial Guidance
FY17 Financial Guidance CSL GROUP Full year ended June FY16 FY17 US$ Millions Actual Guidance1 Reported Net Profit after Tax 1,242 NVS-IV one-offs3 (90) Underlying NPAT 1,152 ~18-20% growth @CC2 FX Impact4 ~(50M) 1 For forward looking statements, refer to Legal Notice on page 2 2 Constant Currency (
Slide 25: Notes
Notes - 1 (#) Constant currency removes the impact of exchange rate movements to facilitate comparability of operational performance for the Group. This is done in three parts: a) by converting the current year net profit of entities in the group that have reporting currencies other than US Dollars,
Slide 26: Business Unit Appendix
4 ¥v —. Business Unit A Appendix Aor 4) CSL
Slide 27: CSL Behring
CSL Behring Product Sales up 18% @CC $M 3,000 $2,963m $2,532m 2,500 2,000 Immunoglobulins 1,500 Haemophilia 1,000 Specialty 500 Albumin 0 Dec 15 Dec 16 Reported sales for the 6 month period 27
Slide 28: Immunoglobulins
Immunoglobulins $M Sales up 22% @CC Highlights 1,500 $1,426m IVIG – Privigen® up 34% • Market growth in hospital segment and non- acute segment $1,181m SCIG • Focussed sales and marketing efforts • Operational capacity 1,000 • Competitor supply constraints • Successful launch in Turkey • CIDP indica
Slide 29: Haemophilia
Haemophilia $M Sales up 2% @CC Highlights 600 $509m $514m rCOAGs up 15% • Strong uptake of Idelvion® in US and EU • Growth offset to some extent by decline in 400 rCOAGs Helixate® pdCOAGs down 6% • Phasing of Russian tender 200 • Lower share of Polish tender pd COAGS • Volatility in surgical and ITT
Slide 30: Specialty
Specialty Sales up 25% @CC $M Highlights $590m 600 Kcentra® / Beriplex® • Restructured and fully established sales $466m Acquired force Bleeding • Deeper penetration into hospital market 400 Berinert® P • Increasing awareness and diagnosis of HAE HAE 200 • Competitor product supply disruption AATD B
Slide 31: Albumin
Albumin $M Sales up 19% @CC 500 Highlights $433m China 400 $376m • 35% sales growth • Enhanced sales, marketing and 300 distribution efforts • Expanded market access into Tier 2 & 3 cities and new hospital listings 200 Solid sales growth in Turkey and Brazil 100 0 Dec 15 Dec 16 Reported sales for th
Slide 32: Seqirus
Seqirus $M Revenue up 14% @CC Highlights 800 • Influenza revenue $464 million $620m • Flucelvax® QIV launched in US 600 $532m • Afluria® QIV approved in US and Australia • First to market in US for influenza 400 Influenza vaccines • Zostavax* launched in public market in Australia 200 Pharma & vacci