Slide 1: 2019 Half Year Result
For immediate release 13 February 2019 2019 Half Year Result Please find attached the presentation and an accompanying media release regarding CSL Limited’s (ASX:CSL; USOTC:CSLLY) 2019 Half Year Results. A briefing for investors and analysts will be held today commencing at 11am Australian Eastern D
Slide 2: Half Year Result 2019
For immediate release 13 February 2019 Half Year Result 20191 CSL continues to deliver double-digit profit growth against a strong comparative period, with standout performance from its Immunoglobulin, Specialty Products and Influenza Vaccines franchises. OPERATING PERFORMANCE 1H19 V 1H18 Reported
Slide 3: Operational highlights and CEO comments
Page 2 13 February 2019 constant currency (CC) basis. Earnings per share grew 7%, or 10% on a constant currency basis. Mr Paul Perreault, CSL’s Chief Executive Officer and Managing Director said, “This is a solid result and particularly pleasing given it follows a very strong comparative period.” “O
Slide 4: Operational highlights continued
Page 3 13 February 2019 FLUCELVAX® real world data indicating greater effectiveness than standard egg- based quadrivalent influenza vaccine in preventing influenza-like illness in the 2017/18 season in the US FLUAD® (adjuvanted influenza vaccine) sales more than doubled with a record 9.8 million
Slide 5: Guidance variables and further information
Page 4 13 February 2019 In compiling the company’s financial forecasts for FY19, a number of key variables that may have a significant impact on guidance have been identified and these have been included in the footnote4 below. FURTHER INFORMATION Additional details about CSL’s results are included
Slide 6: Group Results
Page 5 13 February 2019 Group Results Half year ended Dec Dec Dec Dec Change US$ Millions 2017 2018 2018 Reported Reported at CC5 % Sales 3,999 4,343 4,417 11% Other Revenue / Income 148 162 164 Total Revenue / Income 4,147 4,505 4,581 11% Earnings before Interest, Tax, 1,617 1,719 1,734 7% Deprecia
Slide 7: CSL Limited 2019 Half Year Results
CSL Limited 2019 Half Year Results Paul Perreault, CEO and MD 13 February 2019 David Lamont, CFO
Slide 8: 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 9: Delivering on Strategy
Delivering on Strategy Growth CSL Behring Seqirus • PRIVIGEN® sales +17%1 • Influenza vaccine sales +23%1 • HIZENTRA® sales +14%1 • Holly Springs – FCC 3.0 approved delivering • IDELVION® sales +55%1 future antigen capacity expansion • HAEGARDA® sales more than tripled • FLUCELVAX® - compelling real
Slide 10: Delivering on Strategy
Delivering on Strategy Innovation Efficiency • HIZENTRA® approved for CIDP • New ERP systems in Australia • New research facility in Melbourne • 5 new products into human trials • Major capital projects progressing • Recruitment for CSL 112 People & Culture progressing well CSL named in • Transplant
Slide 11: New Product Launches – CSL Behring
New Product Launches – CSL Behring CIDP CIDP March 16 May 16 June 17 Feb. 18 March 18 5 major launches in 24 months Some of the most successful launches in the industry Significant contribution to the business now…in future R&D Productivity Commercial Excellence 5 | Driven by Our Promise™
Slide 12: CSL Behring Sales 1H19
CSL Behring Sales 1H19 Therapeutic Group 20% ROW Sales % 7% Therapy $m Change1 North 13% Immunoglobulins 1,708 12% Asia Pac America 6% 15% 50% Haemophilia 536 (2%) US$3.5b 8% Albumin 420 (4%) Specialty 803 13% EU 28% Other 1 Total 3,468 8% 4% 1. Growth percentages shown at constant currency to remov
Slide 13: Immunoglobulins
Immunoglobulins Substantial above market growth: sales up 12%1 CIDP label claim approvals FY18: • Early indicators • 17% growth1 • 14% growth1 for demand • Increased diagnosis & • Most used SCIG: positive awareness: ~ 60% new starts - Primary Immune Deficiency ~ 75% of patients naïve to IG CARIMUNE®
Slide 14: Haemophilia
Haemophilia Sales down 2%1 Plasma Coagulation Factors • Launched in 13 countries • Launched in 14 countries • Manufacturing • Exceptional growth +55%1 bottlenecks: • Accelerating adoption – over 500 patients - HUMATE® / BERIATE® • Strong uptake in Japan • MONONINE® to • Transformational product • AF
Slide 15: Albumin
Albumin Sales down 4%1 Volume up 3% CSL’s new • Temporary CHINA constriction in Good Supply Practices import supply for (GSP) license - China China Benefits – phasing in over the next 12 to 18 months • China approval for • Improved participation in value chain CHINA Kankakee AlbuRx® pending • Remove
Slide 16: Specialty Products
Specialty Products Sales up 13%1 • Continued strong demand • Global sales +19%1 • Impacted by launch of - Sales tripled - US +23%1 HAEGARDA® • >50% market share of US • Strong take up in Japan: prophylaxis patients - 800 hospitals WOUND HEALING • Attractive product profile - 2,800 patients • Sales n
Slide 17: Efficiency
Efficiency New Research Facility New ERP Systems • State-of-the-art research facility • New ERP systems being opened in Melbourne implemented across CSL Behring & Seqirus • $46 million facility expands the footprint of the Bio21 Institute by • US/EU rollout completed 5,000 square metres • Asia Pacif
Slide 18: Innovation
Innovation Future CSL Behring Therapeutic Area Framework Immunology and Neurology Haematology and Thrombosis Transplant Respiratory Cardiovascular and Metabolic Plasma Recombinant Gene and Cell Fractionation Technology Therapy 12 | Driven by Our Promise™
Slide 19: Seqirus Revenue 1H19
Seqirus Revenue 1H19 Category Region $m 1,000 +21%1 2% ROW 5% 800 11% Other Asia Pac 10% 22% 600 Fluad North US$949m America TIV 71% 400 EU 21% 53% 14% QIV 200 Pandemic 0 1H18 1H19 Growth in QIV & FLUAD 1. Growth percentages shown at constant currency to remove the impact of exchange rate movements,
Slide 20: Seqirus – Operating Highlights
Seqirus – Operating Highlights • FCC3.0 approval, driving uplift in capacity at Looking forward… Holly Springs • SH 2019: FLUAD® preferred • Real world effectiveness data: FLUCELVAX® recommendation for 65yr+ in Australian more effective than standard egg-based QIV public market in preventing influen
Slide 21: Financials
Financials David Lamont - CFO 15 | Driven by Our Promise™
Slide 22: Financial Highlights – NPAT
Financial Highlights – NPAT $1,196m +10%1 @CC1 FX $35m $1,161m $1,086m +7% REPORTED 1H18 1H19 Strong PCP 1 Constant Currency (CC) removes the impact of exchange rate movements facilitating comparability of operational performance. See end note for further detail. 16 | Driven by Our Promise™
Slide 23: Financial Highlights – CSL Group
Financial Highlights – CSL Group Half year ended Dec 1H18 1H19 1H19 Change US$ Millions Reported Reported at CC1 % Total Revenue 4,147 4,505 4,581 11%1 EBIT 1,476 1,553 1,566 6%1 EBIT margin 35.6% 34.5% 34.2% NPAT 1,086 1,161 1,196 10%1 Cashflow from Operations 840 535 -36% ROIC 32.8% 29.9% - - EPS
Slide 24: CSL Group – Reported Expenses
CSL Group – Reported Expenses Investment in the future Movement • R&D Expense 1H19 $M % • Employee growth R&D 391 48 14 • Ongoing new product support S&M 423 69 19 • Facilities expansion & New G&A 256 71 39 technology - D&A up 17% Finance 93 41 78 One-offs • World Federation of Hemophilia product do
Slide 25: CSL Behring Margin
CSL Behring Margin % Full year margin more 60 HY Gross Margin representative of performance FY Modest increase in plasma 50 costs tempering margin expansion EBITDA Margin 40 HY Uneven expenditure phasing 1H v 2H FY 30 19 | Driven by Our Promise™
Slide 26: Key Capital Projects – Completion Timeline
Key Capital Projects – Completion Timeline FY19 FY20 FY20 FY21 FY22 FY23 FY24 FY25 ERP Systems Tech- nology Enterprise Process Management Kankakee Marburg Base Frac Broadmeadows Other Base Frac Modules Bern IG Marburg Filling Plant Finishing IG Modules Berinert / C1 Precipitate Capacity Increase Len
Slide 27: China – GSP License
China – GSP License Sales recognition – timing adjustment • Currently - sale to 3rd party distributor recognised ex-factory • Transition in FY20: - Sale recognised when made to customer - Multi-month one-off sales timing adjustment in FY20 - No impact on supply to patients 21 | Driven by Our Promise
Slide 28: Outlook for FY19
Outlook for FY191 • Business expectations 2H19: - Continued strong demand for CSL’s Previous guidance therapies FY19 NPAT ~$1,880m to $1,950m2,3 - Expenditure phasing - Seqirus seasonality (loss making 2H) now guiding to around the upper end of range 1. For forward looking statements, refer to Legal
Slide 29: Financial Appendix
Financial Appendix 23 | Driven by Our Promise™
Slide 30: CSL Behring Revenue
CSL Behring Revenue Half Year ended Dec 1H18 1H19 1H19 Change US$ Millions CC1 %1 Immunoglobulins 1,558 1,708 1,746 12% Albumin 452 420 433 (4%) Haemophilia - Recombinants 260 281 282 9% - Plasma derived 297 255 264 (11%) Specialty 717 803 810 13% Other sales (mainly plasma) 4 1 1 Total Product Sale
Slide 31: Seqirus Revenue
Seqirus Revenue Half year ended Dec 1H18 1H19 1H19 Change US$ Millions CC1 %1 QIV 306 419 419 37% Seasonal TIV 175 60 61 -65% Influenza Adjuvanted 131 272 273 109% vaccines +23%1 Other / In-licence 99 123 128 30% Total Product Sales 710 874 881 24% Pandemic 60 65 67 11% Other Income 21 9 9 -56% Tota
Slide 32: Notes
Notes (#) 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, at
Slide 33: CSL Limited Contact
CSL Limited Contact: Mark Dehring VP Investor Relations +61 3 9389 3407 mark.dehring@csl.com.au Bernard Ronchi Senior Manager, Investor Relations +61 3 9389 3470 bernard.ronchi@csl.com.au 27 | Driven by Our Promise™