H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Shareholder Meeting (March 2021)
56 slides from H. Lundbeck A/s Class A's shareholder meeting presentation, Mar 23, 2021
Slide 1: H. Lundbeck A/S 2021 Annual General Meeting
H. Lundbeck A/S 2021 Annual General Meeting 23 March, 2021
Slide 2: Welcome
Welcome LARS SØREN RASMUSSEN Chairman of the Board of Directors 2 Lundbeck
Slide 3: Board of Directors for 2020
THIS IS LUNDBECK Board of Directors for 2020 LARS SØREN LENE SKOLE- HENRIK RIKKE KRUSE RASMUSSEN SØRENSEN ANDERSEN ANDREASEN JEFFREY LARS ERIK JEREMY MAX HENRIK LUDOVIC BERKOWITZ HOLMQVIST LEVIN SINDAL TRANHOLM JENSEN OTTERBEIN 3 Lundbeck
Slide 4: Executive management
THIS IS LUNDBECK Executive management DEBO R AH PET ER LARS AND E RS ELISE KELD JO HAN JACO B DUNSIRE AN AST AS IO U BANG G Ö T ZSCHE HAUG E FLINT HO LM LUT HM AN T O LST RUP JØ RG ENSEN President and CEO Executive Vice Executive Vice Executive Vice Executive Vice Executive Vice Executive Vice Execu
Slide 5: Agenda
Agenda 1. Report of the Board of Directors on the Company’s activities during the past year. 2. Presentation and adoption of the annual report. 3. Resolution on the appropriation of profit or loss as recorded in the adopted annual report. 4. Presentation of and advisory vote on the remuneration repo
Slide 6: Report from the Board of Directors and 2020 Annual Report
Item 1 and 2: Report from the Board of Directors and 2020 Annual Report LARS SØREN RASMUSSEN Chairman of the Board of Directors 6 Lundbeck
Slide 7: Our purpose
Our purpose We are tirelessly dedicated to restoring brain health, so every person can be their best • Brain health conditions impact more than 3bn people worldwide1 • More than 70% of people living with brain disease experience discrimination2 • People living with brain disease live between 10-20 y
Slide 8: Our strategic ambition: To be #1 in Brain Health
CORPORATE STRATEGY Our strategic ambition: To be #1 in Brain Health PROVIDING TRANSFORMATIVE OUTCOMES TO PATIENTS • Recognized as #1 in Brain Health by patients and other stakeholders globally • Premier neuroscience pipeline focused in: • Rare disease neurology • Niche neurology • Niche psychiatry 8
Slide 9: Navigating through COVID-19
Navigating through COVID-19 Two main priorities: The health and well …to continuously being of employees serve the more than 7 million patients that rely on our medicines Focus on continued and uninterrupted medicine production and distribution 9 6 April, 2021 Lundbeck
Slide 10: A big thanks to our employees
A big thanks to our employees for adjusting, coping and being creative in an unprecedented year of change 10 6 April, 2021 Lundbeck
Slide 11: Robust financial performance for 2020 despite the pandemic and currency headwind
FINANCIAL PERFORMANCE Robust financial performance for 2020 despite the pandemic and currency headwind Full Year 2020 Performance in line with expectations Revenue Revenue per region* Guidance Guidance Reported Reported 17.7 DKKbn (6 Feb 2020) (27 Nov 2020) 2020 2019 4,057 9,790 DKK bn DKK bn DKKm D
Slide 12: Impacted by currency depreciation in especially H2 2020
FINANCIAL PERFORMANCE Impacted by currency depreciation in especially H2 2020 2020 sales by currency Main currencies (1 January 2020 = index 100) 106 EUR Other 17% 20% 102 98 CAD 4% CNY 6% 94 90 53% USD USD/DKK CAD/DKK CNY/DKK Other includes JPY, KRW and other currencies Source: Bloomberg – data unt
Slide 13: Healthy underlying performance in 2020 as Lundbeck invests in its future
FINANCIAL PERFORMANCE Healthy underlying performance in 2020 as Lundbeck invests in its future DKKm FY 2020 Δ% y/y Q4 2020 Δ% y/y Robust revenue growth of 4% Revenue 17,672 +4% 4,275 -3% Gross margin 76,4% - 76.1% - SG&A increase to maximise strategic brand Operational expenses 11,457 +20% 2,815 +6%
Slide 14: Strong cash flow reduces NIBD by DKK 2.5bn or 37%
FINANCIAL PERFORMANCE Strong cash flow reduces NIBD by DKK 2.5bn or 37% Free cash flow (DKKm) Net cash & Net debt/EBITDA (DKKm & “x”) 3,370 3,074 9,000 -1.0 6,635 Leverage (r.h.s.) 6,000 Net cash/debt (l.h.s.) -0.5 3,000 0.0 0 0.5 -3,000 -3,250 -4,106 1.0 -6,000 -6,566 -9,000 1.5 -5,146 2018 2019 20
Slide 15: Lundbeck aims to continue delivering on a heritage of growth
FINANCIAL PERFORMANCE Lundbeck aims to continue delivering on a heritage of growth Lundbeck revenue 1999 – 2020 (FY - DKKm) Average revenue growth of more than 7% p.a. over the past two decades LOEs had short term impact, but both internal and external innovations enabled Lundbeck to navigate throug
Slide 16: Expand and Invest to Grow strategy results materializing
CORPORATE STRATEGY The expected results of the Expand and Invest to Grow strategy launched in 2019 are materializing • Executive Management with members bringing new capabilities • Maximizing existing brands • Two key acquisitions in 2019 with integration finalized during 2020 • Abide Therapeutics –
Slide 17: Proposal to expand the Board of Directors
Proposal to expand the Board of Directors Adding additional scientific competencies; Replacement of Henrik Andersen and audit committee chair LARS SØREN LENE SKOLE- RIKKE KRUSE SANTIAGO JEFFREY RASMUSSEN SØRENSEN ANDREASEN ARROYO BERKOWITZ LARS ERIK JEREMY MAX HENRIK LUDOVIC DOROTHEA HOLMQVIST LEVI
Slide 18: Significant progress made on Expand and Invest to Grow strategy
CORPORATE STRATEGY Significant progress made on Expand and Invest to Grow strategy – near term focus, transform the pipeline Transform pipeline for tomorrow: • Refined target indication space • Acceleration through external innovation • Transformed approach in R&D Perform today: ▪ Maintain momentum
Slide 19: COVID impacted our ability to do business in 2020
COVID impacted our ability to do business in 2020 • Affiliates shutting down and employees working from home sequentially starting with China in early Q1, then to Europe and North America, and finally impacting Latin America by late Q2 • Physicians have reduced capacity – both to receive patients an
Slide 20: Underlying performance for major strategic brands remains strong
PRODUCT PERFORMANCE Underlying performance for major strategic brands remains strong Brintellix/Trintellix Rexulti Abilify Maintena Northera (DKKm and L.C.* growth %) (DKKm and L.C.* growth %) (DKKm and L.C.* growth %) (DKKm and L.C.* growth %) 3,000 4,000 3,000 3,000 +17% +12% +22% +13% +25% +17% 3
Slide 21: Vyepti demand doubling quarter-on-quarter since launch
PRODUCT PERFORMANCE Vyepti demand doubling quarter-on-quarter since launch • Approved on time (Feb. 2020) Vyepti demand (weekly - vials) • Launched as planned (April 2020) • Vial demand doubles quarter over quarter • Very positive testimonials from both patients and HCPs • Key reimbursement listings
Slide 22: Vyepti global roll-out and indication expansion
PRODUCT PERFORMANCE Vyepti global roll-out and indication expansion brings significant growth potential • The market for prophylactic migraine treatments Prevalent cases of migraine in value is expected to grow considerably Region Migraine • Approved in three* and currently submitted for prevalence
Slide 23: Our future medicines will provide a step-change in outcomes
CORPORATE STRATEGY Our future medicines will provide a step-change in outcomes to patients with difficult to treat brain diseases 2020 Future focus Four biological clusters, 2019 enabling wide disease area Refined operating space: Expanded disease reach and innovation Targeted indications operating
Slide 24: R&D – Investing for a premier neuroscience pipeline
RESEARCH & DEVELOPMENT R&D – Investing for a premier neuroscience pipeline Project Biology Area Phase I Phase II Phase III Filing Eptinezumab (anti-CGRP mAb) Migraine prevention Hormonal / Eptinezumab (anti-CGRP mAb) neuropeptide Episodic cluster headache signalling Lu AG09222 (PACAP mAb) 1 Migraine
Slide 25: Key news flow
LOOKING INTO 2021 Key news flow H1 2021 • Canada approval of Vyepti achieved • Vyepti approval in Australia • Planned interim analysis using Rexulti in Alzheimer’s agitation (phase III) due Q2 H2 2021 • Phase II planned to commence for Lu AF82422 (MSA*) • Phase II planned to commence for Lu AG09222
Slide 26: 2021 financial guidance
LOOKING INTO 2021 2021 financial guidance FY 2021 financial guidance FY 2021 considerations DKKm FY 2020 FY 2021 COVID-19 pandemic continues to inject uncertainty Actual Guidance Revenue Revenue 17,672 16.3 ̶ 16.9bn • Continued solid growth of Abilify Maintena, EBITDA 4,783 3.5 ̶ 4.0bn Brintellix/Tr
Slide 27: Committed to the global Sustainable Development Goals
FY 2020 – ESG UPDATE Lundbeck is committed to contribute to the global Sustainable Development Goals (SDGs) • We conduct our business activities in a way that support seven • In 2020 we have improved our ESG ratings SDGs from external significantly • Together with our partners, we focus our efforts
Slide 28: Examples of how Lundbeck has made an impact in 2020
FY 2020 – ESG UPDATE Examples of how Lundbeck has made an impact in 2020 Since 2006, CO2 emissions from our production reduced by >70% Diversity, Equality, Inclusion & Belonging Carbon Increase focus globally neutrality no later than 2050 Launched partnership with IHP* on product donations 68% recyc
Slide 29: An imperative for change: Societal and Generational shifts
An imperative for change: Societal and Generational shifts set new agendas and requirements for the workplace Increased focus on Diversity, Equity, Inclusion & Belonging • 3 of 9 Board member are female • Employees globally: 53% female; 47% male • A two-year Diversity & Inclusion plan with recommend
Slide 30: #WeAreLundbeck
#WeAreLundbeck Tireless dedicated to restoring brain health, so every person can be their best PURPOSE BELIEFS A winning team, … making progress … towards being PEOPLE driven by our beliefs … against our strategy … #1 in Brain Health 30 Lundbeck
Slide 31: Item 2: Approval of the annual report
ITEM 2: APPROVAL OF THE ANNUAL REPORT 31
Slide 32: Item 3: Resolution on the appropriation of profit or loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS 32
Slide 33: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2020 Share Profit for the year 1,581 Transfer to distributable reserves 1,083 69% Proposed dividends for the year 498 31% Proposed dividend per share (DKK) 2.50 33 Lundbeck
Slide 34: Item 4: Presentation of and advisory vote on the remuneration report
ITEM 4: PRESENTATION OF AND ADVISORY VOTE ON THE REMUNERATION REPORT 34
Slide 35: Presentation of and advisory vote on the remuneration report
Item 4: Presentation of and advisory vote on the remuneration report • The Board of Directors recommends that the report be approved. 35 Lundbeck
Slide 36: Item 5: Increase the maximum number of board members
ITEM 5: INCREASE THE MAXIMUM NUMBER OF BOARD MEMBERS ELECTED TO THE BOARD OF DIRECTORS 36
Slide 37: Increase the maximum number of board members
Increase the maximum number of board members elected to the Board of Directors • In order to ensure flexibility and that the Board of Directors always has the necessary competencies and knowledge needed for its tasks, it is proposed to allow the annual general meeting to elect up to eight members (c
Slide 38: Item 6: Election of members to the Board of Directors
ITEM 6: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS 38
Slide 39: Members of the Board elected at the 2020 AGM
Members of the Board of Directors - elected at the 2020 AGM Remuneration & Nomination Audit Scientific Members Independent Committee Committee Committee Lars Søren Rasmussen, Chairman Yes ✓C ✓ Lene Skole-Sørensen, Deputy Chairman No ✓ ✓ Henrik Andersen Yes ✓C Lars Erik Holmqvist No ✓ Jeremy Max Levi
Slide 40: Members of the Board proposed for election at the 2021 AGM
Item 6: Members of the Board of Directors - proposed for election at the 2021 AGM Members Independent Lars Søren Rasmussen Yes Lene Skole-Sørensen No Lars Erik Holmqvist No Jeremy Max Levin Yes Jeffrey Berkowitz Yes Santiago Arroyo Yes Dorothea Wenzel Yes Henrik Sindal Jensen Members elected by the
Slide 41: Dorothea Wenzel
ITEM 6: ELECTION OF BOARD MEMBERS Dorothea Wenzel • Dr. Dorothea Wenzel is nominated for election to the Board of Directors of H. Lundbeck A/S in replacement for Henrik Andersen who has decided to step down as member of the Board of Directors. Dorothea Wenzel was born in 1969 and is a German nationa
Slide 42: Dr. Santiago Arroyo
ITEM 6: ELECTION OF BOARD MEMBERS Dr. Santiago Arroyo • Dr. Santiago Arroyo received his medical degree from the Autonomous University of Madrid and his Ph.D. from the University of Barcelona, Spain. He is born on 2 June 1960 and is a US citizen. He is nominated for election to H. Lundbeck A/S’ Boar
Slide 43: Election of board members
Item 6: Election of board members LARS SØREN LENE SKOLE- SANTIAGO RASMUSSEN SØRENSEN ARROYO JEFFREY LARS ERIK JEREMY MAX DOROTHEA BERKOWITZ HOLMQVIST LEVIN WENZEL 43 Lundbeck
Slide 44: Item 7: Approval of remuneration
ITEM 7: APPROVAL OF REMUNERATION 44
Slide 45: Approval of remuneration – unchanged from 2020
Item 7: Approval of remuneration – unchanged from 2020 Approval of remuneration for the Board of Directors for the current financial year Board of Directors Current Proposal DKK Members of the Board 400,000 400,000 Supplement to members of the Board with permanent residence outside of Europe 400,000
Slide 46: Item 8: Election of state authorized public accountants
ITEM 8: ELECTION OF STATE AUTHORIZED PUBLIC ACCOUNTANTS 46
Slide 47: Election of State Authorized Public Accountants
Item 8: Election of StateAuthorized Public Accountants PwC, Statsautoriseret Revisionspartnerselskab Lars Baungaard Torben Jensen State Authorized Public Accountant State Authorized Public Accountant 47 Lundbeck
Slide 48: Item 9: Proposals from shareholders or the Board of Directors
ITEM 9: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS 48
Slide 49: Acquisition of treasury shares
Item 9: Proposals by shareholders or the Board of Directors 9.1. Acquisition of treasury shares • It is proposed to authorize the Board of Directors until the next annual general meeting to allow the Company to acquire treasury shares of a total nominal value of up to 10% of the share capital. The p
Slide 50: Amendment of the Remuneration Policy
Item 9: Proposals by shareholders or the Board of Directors 9.2. Amendment the Remuneration Policy for the Board of Directors and Executive Management • The Board of Directors proposes to adopt the amended Remuneration Policy for the Board of Directors and the Executive Management of H. Lundbeck A/S
Slide 51: Future general meetings held as completely electronic meetings
Item 9: Proposals by shareholders or the Board of Directors 9.3. Assembly of future general meetings to be held as completely electronic meetings • It is proposed to authorize the Board of Directors to assemble future general meetings as fully electronic meetings. The proposal is made to create the
Slide 52: The use of the English language
Item 9: Proposals by shareholders or the Board of Directors 9.4. The use of the English language • H. Lundbeck A/S is an international company with presence in more than 55 countries around the world. The members of the Board of Directors, the management, the employees in the headquarter in Denmark
Slide 53: Filing of resolutions with the Danish Business Authority
Item 9: Proposals by shareholders or the Board of Directors 9.5. Filing of the resolutions passed at the annual general meeting for registration with the Danish Business Authority • The Board of Directors proposes to authorize the Chairman of the annual general meeting to make such amendments and ad
Slide 54: Item 10: Any other business
ITEM 10: ANY OTHER BUSINESS 54
Slide 55: Questions
Questions PSYCHIATRY CEREBROVASCULAR BEHAVIOURAL ANXIETY MOOD STRESS BIOLOGY PERSONALITY & PSYCHOSIS DEMYELINATING DISORDERS NEUROLOGY CNS DEGENERATION/DEMENTIA MITOCHONDRIAL DISORDERS HEADACHE/MIGRAINE DEMYELINATING DISORDERS OTHER NEUROLOGY AND RARE DISORDERS. MOVEMENT DISORDERS ADDICTION NEURO-EN
Slide 56: Thank you and goodbye
THANK YOU AND GOODBYE SEE YOU AT NEXT YEAR’S ANNUAL GENERAL MEETING 56