Csl Limited · ASX:CSL
Csl — H1 2012 Earnings Presentation
29 slides from Csl's earnings presentation, Feb 22, 2012
Slide 1: CSL Limited 2011/12 Half Year Result
CSL Limited 2011/12 Half Year Result 22 February 2012
Slide 2: Disclaimer
Disclaimer Forward looking statements The materials in this presentation speak only as of the date of these materials, and include forward looking statements about CSL’s financial results and estimates, business prospects and products in research, all of which involve substantial risks and uncertain
Slide 3: Financials
Financials Reported total sales $2.2 billion, up 13% at Constant Currency1 (CC) Reported EBIT $607 million, up 14% at CC Reported NPAT $483 million, down 3% • Up 16% at CC • Foreign currency headwind $95 million Reported EPS 92.2 cents, up 1% R&D investment $161 million, up 16% at CC Cashflow from o
Slide 4: Operational Highlights
Operational Highlights Immunoglobulin sales up 21% at constant currency • Strong demand across product range • Privigen® - European Phase III study in CIDP completed Specialty products up 20% at constant currency • RiaSTAP™ - Ph III peri-operative bleeding study initiated in EU • Berinert® - US & EU
Slide 5: Global Revenue $2.3 Billion for 1H12
Global Revenue* $2.3 Billion for 1H12 Australia 10% Asia Europe 32% 9% RoW 7% North America 42% * Revenue based on customer location 5
Slide 6: Outlook for FY2012
Outlook for FY2012 @ 10/11 exchange rates Guidance upgraded • Net profit after tax1 ~$1,060 million • NPAT growth ~13% (previously ~10%) • EPS expected to exceed NPAT growth driven by past and current capital management initiatives2 US Dollar Reporting • Intention to move to reporting in US dollars
Slide 7: Human Health Business Unit Performance
Human Health Business Unit Performance • CSL Behring • Other Human Health - CSL Biotherapies and CSL Research & Development • Intellectual Property Licensing 7
Slide 8: CSL Behring
CSL Behring Product sales US$1,883m up 17% (+13% at CC) Immunoglobulin • Strong demand across IG product range • Privigen® - European Phase III study in CIDP completed • Hizentra® (IgPro20 sc) - Broader approvals in EU and Canada Specialty Products • Berinert® - US & EU approval for self administrat
Slide 9: CSL Behring – Product sales up 13% in CC terms
CSL Behring – Product sales up 13% in CC terms US$M 2,000 US$1,883m +17% 1,800 Specialty US$1,611m Products 1,600 1,400 1,200 Immunoglobulins 1,000 800 600 Albumin 400 pdCoag 200 Helixate 0 Dec 10 Sales for the 6 month period Dec 11 9
Slide 10: Immunoglobulins
Immunoglobulins US$M Highlights 900 US$853m +24% Up 21% in CC terms 800 IVIG Other Growth 700 US$687m Volume • US, Canada, UK, 600 France and Germany 500 IVIG SCIG demand Privigen • New patients 400 • Migration to Hizentra® from Vivaglobin® 300 Other growth drivers • Sales mix 200 • Rhophylac® growt
Slide 11: Albumin
Albumin 250 US$M US$225m +17% Asia* Highlights 200 US$193m Up 14% in CC terms Demand growth in Asia 150 US$157m US$143m 100 50 0 Dec 10 Dec 11 Sales for the 6 month period * CSL Behring albumin sold in Asia by CSL Biotherapies 11
Slide 12: Haemophilia
Haemophilia US$M 600 +8% US$537m Highlights US$495m 500 Up 4% in CC terms 400 pdCoag PdFVIII • ITT patient growth in Europe • Beriate® demand growth in 300 Russia, Poland & Brazil 200 Helixate® Helixate • Demand growth in Canada 100 0 Dec 10 Dec 11 Sales for the 6 month period 12
Slide 13: Specialty Products
Specialty Products 350 US$M US$315m Highlights 300 +27% Other Up 20% in CC terms Specialty US$248m 250 Products Peri-operative Bleeding • Haemocomplettan® / RiaSTAP® 200 changing treatment paradigm for Peri-Operative Bleeding • Corifact ® - Launch in US 150 Peri- • Beriplex® - Launch in Canada Opera
Slide 14: Other Human Health – CSL Biotherapies
Other Human Health – CSL Biotherapies A$M Highlights 450 A$417m Up 13% in CC terms 400 A$375m Asia# Albumin demand growth in Asia 350 +10% A$352m Broadmeadows plasma therapy 300 A$321m sales $125m 250 Influenza sales $93m following 200 solid US and European demand 150 Gardasil* sales growth in 100 A
Slide 15: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Segment Revenue $80m HPV royalties $61m Sale of MPS IP $18m Gardasil* • Recommendation for boys in Australia, Canada, US • Label expansion to cover anal cancer in Australia • Japanese rollout commenced ISCOMATRIX® adjuvant • Major partners continue to advance vacc
Slide 16: R&D Update
R&D Update rIX-FP (rec fusion protein linking factor IX with albumin) • Ph I data presented at GTH • Commencement of phII/III pivotal study in Jan 2012 rVIIa-FP • US orphan drug status rVIII-SingleChain • 1st patient recruited for phase I trial RiaSTAP™ (Fibrinogen) • Ph III peri-operative bleeding
Slide 17: Financial Detail
Financial Detail 17
Slide 18: 1H 2012 Net Profit after Tax up 16% at CC
1H 2012 Net Profit after Tax up 16% at CC FX impact A$578m Reported NPAT $483m A$500m FX Foreign currency* -ve $95m NPAT at constant currency $578m Reported Reported NPAT NPAT Notable items MPS royalty Competitor returning Southern European debtors Dec 10 Dec 11 NPAT for the 6 month period * Based o
Slide 19: CSL Behring - Reported EBIT Margin
CSL Behring - Reported EBIT Margin % 40 33.7% Notable items 35 32.6% FX • Foreign Exchange 30 Reported • Weakening USD against EBIT 25 the Swiss Franc Margin 30.0% • Sales mix 20 • Sales growth of IG into European countries 15 • Southern European debtor 10 provisioning 5 0 Dec 10 Dec 11 19
Slide 20: Financial Discipline
Financial Discipline 1H11 1H12 Cashflow from operations $408m $522m Capital Investment $84m $142m Cash cycle - days 148 139 Cash conversion % 83.7 97.3 20 - Balance Sheet Strength -
Slide 21: Capital Management
Capital Management Cash on hand $1.3 billion Debt Refinancing • US$750 million private placement in the US • ~$800 million in new lines of credit • Undrawn $450 million On Market Buyback $900m on-market share buyback* Commenced 18 October 2011 • 12 month window to complete As at 22 February 2012 • ~
Slide 22: FX Impact on FY2012 Guidance
FX Impact on FY2012 Guidance* Foreign exchange (post tax) FY12 Est. Translation ~ $ (30)m Transaction ~ $ (85)m Total ~ $(115)m Net profit after tax outlook NPAT FY2012 at constant currency ~$1,060m Growth ~13% on FY2011 profit (previously ~10%) Est. foreign currency NPAT impact ~$(115)m NPAT FY2012
Slide 23: CSL Growth Strategy
CSL Growth Strategy Biotech AML, RA Specialty products New Plasma RiaSTAP ®, Beriplex ®, Fractions Cytogam ®, Berinert®, rHDL Zemaira ® Immunoglobulins Privigen® Hizentra ® Recombinant Coagulation Emerging markets Factors Albumin, FVIII rIX-FP, rVIIa-FP, rVIII-SingleChain Market growth All products
Slide 24: Appendix
Appendix 24
Slide 25: Group Results
Group Results Australian dollars Six months ended December Dec Dec Dec Change $ Millions 2010 2011 2011 % Reported Reported CC1 Sales 2,116 2,221 2,401 13.4% Other Revenue / Income 56 88 95 Total Revenue / Income 2,172 2,309 2,496 Earnings before Interest, Tax, Depreciation & 719 689 811 12.9% Amort
Slide 26: Group Results
Group Results Restated in US Dollars1 Six months ended December Dec Dec Change US$ Millions 2010 2011 % Reported Reported Sales 1956 2,324 18.8% Other Revenue / Income 52 91 Total Revenue / Income 2,008 2,414 Earnings before Interest, Tax, Depreciation & 664 720 8.4% Amortisation Depreciation/Amorti
Slide 27: CSL Behring Sales
CSL Behring Sales US Dollars Six months ended December 1H11 1H12 1H12 Change USD$M USD$M USD$M % CC rFVIII 238 257 248 4% pdCoag 258 280 269 4% Albumin (excludes Asian sales) 143 157 152 6% Immunoglobulins 687 853 834 21% Specialty Products 248 315 297 20% - Wound healing 50 54 50 --% - Peri-operati
Slide 28: Foreign Exchange Sensitivity 2H12
Foreign Exchange Sensitivity 2H12 Translation - Ready Reckoner Sensitivity to 1% movement in key currency pairs Current 1% change Rates AUD/USD* 1.07 +/- $1.0m AUD/EUR 0.81 +/- $1.3m AUD/CHF 0.98 +/- $2.9m • Table shows full 6 months impact • Impact to be calculated from NPAT guidance at current FX
Slide 29: Notes
Notes Constant currency removes the impact of exchange rate movements to facilitate comparability by restating the current year’s results at the prior year’s rates. This is done in two parts: a) by converting the current year net profit of entities in the group that have reporting currencies other t