Csl Limited · ASX:CSL
Csl — FY2010 Earnings Presentation
31 slides from Csl's earnings presentation, Aug 18, 2010
Slide 1: CSL Limited 2010 Full Year Result
CSL Limited 2010 Full Year Result 18 August 2010
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 Total sales $4.5 billion up 10% at constant currency (cc) 1 • Global sales and fill & finish activities relating to CSL’s pandemic influenza vaccine (H1N1) totalled $235 million EBIT $1,357 million up 20% 2 at cc NPAT $1,053 million ($1,240m at cc, up 22% 2) • Foreign currency headwind $1
Slide 4: Operational Highlights
Operational Highlights Australian Fractionation Agreement renewed to end of 2017 Privigen® - conversion well underway • ~40% of IG sales by volume Berinert® (C1-Esterase Inhibitor) • US FDA grants marketing approval, product launched • European approvals extended • Australian TGA approval, Notice of
Slide 5: Operational Highlights – cont.
Operational Highlights – cont. Pandemic Influenza Vaccine (H1N1) • Swift response to WHO declared pandemic • Successful development and registration • >40m doses globally • NPAT contribution $122m GARDASIL® • Merck data on use by females aged 27 – 45 • US FDA approval for males aged 9-26 for genital
Slide 6: Capital Management
Capital Management On-Market Buybacks Completed April 2010 • 54.8m shares ~9% of issued capital • $1.8bn returned to shareholders New • $900m on-market share buyback* • ~27m shares at current share price Dividends • Payout ratio increased to ~43% * CSL reserves the right to suspend or terminate the
Slide 7: Human Health Business Unit Performance
Human Health Business Unit Performance • CSL Behring • CSL Biotherapies • Intellectual Property Licensing • CSL Research & Development
Slide 8: CSL Behring
CSL Behring Sales US$2,984m up 10% at cc EBITDA • Up 14% at cc • margin ~35% • Privigen® migration and Vivaglobin ® expansion well underway • Hizentra™ (IgPro20) US FDA approval, launched April 2010 • Encouraging product up-take in Canada & Russia • US FDA approves prophylactic use of Helixate® for
Slide 9: CSL Behring – Product sales up 10% in cc terms
CSL Behring – Product sales up 10% in cc terms US$M US$2,984m Other US$2,695m Immuno- globulins Wound H Critical Care pdCoag Helixate Jun 09 Sales for the 12 month period Jun 10 9
Slide 10: Immunoglobulins
Immunoglobulins US$M US$1,197m Highlights US$1,063m Up 12% in cc terms Growth IG* Sale mix • Migration to liquid - Privigen® SCIG demand - Vivaglobin® • Hizentra® launch Liquid Volume • European demand strong • Canada expansion SCIG • Rhophylac® growth Jun 09 Jun 10 Sales for the 12 month period * I
Slide 11: Critical Care
Critical Care US$690m US$M US$624m Asia Highlights Asia Up 5% in cc terms Critical • 9% incl. Asian sales* Care Albumin growth • Volume in US Albumin Critical Care products growth • Haemocomplettan® P and Berinert® P • Beriplex® price competition Jun 09 Jun 10 Sales for the 12 month period * CSL: Be
Slide 12: Haemophilia
Haemophilia US$M Highlights US$1,033m Up 8% in cc terms US$951m PdCoag pdCoag • Volume growth in lower priced markets • Beriate® launch in Russia • US demand for Humate® Helixate Helixate® • Strong demand in US • Western European contracts Jun 09 Jun 10 • Canadian growth Sales for the 12 month perio
Slide 13: CSL Biotherapies - Financial
CSL Biotherapies - Financial Sales A$958m up 21% at cc Revenues from H1N1 vaccine $235m Strong albumin sales to China Increased ARCBS plasma collection volumes GARDASIL® Australia & NZ $47m (PCP $185m) • Successful conclusion of catch-up programs in Aust. • Ongoing Australian/NZ cohort ~$30-35m pa I
Slide 14: CSL Biotherapies - Operational
CSL Biotherapies - Operational Australian businesses merged to form CSL Biotherapies Australian Fractionation Agreement to 31 Dec. 2017 EVOGAM ® • 16% Chromatographic SCIG • Registration dossier submitted to TGA TGA approves Berinert ® Pandemic influenza vaccine (H1N1) • Successful development and r
Slide 15: CSL Intellectual Property Licensing
CSL Intellectual Property Licensing Segment EBIT $96m HPV royalties $102m (down 26% at cc) • Merck data on use by females aged 27 – 45 • US FDA approval for males 9-26 for genital warts • Data to TGA for males 9-26 for external genital lesions and infections CAM3001 (GM-CSFRa) • Medimmune/AstraZenec
Slide 16: R&D Highlights
R&D Highlights Product Approvals Hizentra® (IgPro20 sc) • US FDA approval and US product launch April 2010 RiaSTAP™ (Fibrinogen) • EU MRP approval Dec 2009 Berinert® (C1 esterase inhibitor) • US FDA approval Oct 2009 Pre-clinical Development Recombinant Factor IX-FP • Successful preclinical studies,
Slide 17: R&D Investment
R&D Investment Growth in new product development $Am $343 $312 FX* $317 $240 New Product Development FX* $225 Market Development Life Cycle Management * Foreign currency impact using FY2009 exchange rates 17
Slide 18: Financial Detail
Financial Detail
Slide 19: Underlying operational profit up 22% @ CC
Underlying operational profit up 22% @ CC +22% $187m $126m FX Non Op* $1,020m $1,240m FY2009 Underlying Operational Profit FY209 FY2010 Reported Reported Profit Profit $1,146m $1,053m Jun 09 Jun 10 * One-off non-operational items, as previously disclosed, relating to the discontinuation of the Talec
Slide 20: Performance V guidance
Performance V guidance $126m $1,070m FY2010 FX Ready Adjusted $1,053m Reckoner Profit FY2010 NPAT FY2010 $1,040m FY2010 Guidance FY2010 NPAT Reported NPAT Profit Actual Range $970m Guidance FX Adj. $940m FY209 Reported Profit $1,146m $1,053m ------ NPAT Guidance FY2010 ----------- Actual “…We expect
Slide 21: G&A Expense – no significant movement
G&A Expense – no significant movement General & Admin $M FY2009 407 Less merger discontinuation* 134 FY09 273 FY2010 238 Add FX 25 CC adj. FY10 263 * Refer note 3(i) in financial statements for detail 21
Slide 22: Strong Financial Discipline
Strong Financial Discipline Cashflow from operations $1.2 billion (up 14%) Capital expenditure $265m Working Capital 2009 2010(@cc) • Days debtors 60 63 • Inventory turns 1.6 1.5 • Inventory $1,522m $1,595m Financial Leverage 2009 2010 • Cash on hand $2,528m $1,001m • Debt $718m $462m 22 - Balance S
Slide 23: Capital Management
Capital Management On-Market Buybacks • $900m on-market share buyback* • ~27m shares at current share price • Timing subject to 10/12 limit Dividends • Payout ratio increased to ~43% * CSL reserves the right to suspend or terminate the buyback at any time 23
Slide 24: NPAT Phasing & non recurring items
NPAT Phasing & non recurring items Phasing 1H v 2H Foreign currency Pandemic influenza vaccine H 1N1 sales CSL Behring customer ordering Influenza vaccine seasonality R&D phasing HPV royalties 2H >1H after adjusting for phasing and non recurring items 24
Slide 25: FX Headwind - $187m NPAT FY2010
FX Headwind - $187m NPAT FY2010 Translation* FY09 FY10 % AUD/USD 0.74 0.88 19% AUD/EUR 0.54 0.63 17% AUD/CHF 0.85 0.93 9% Transaction FY09 FY10 % USD/CHF 1.15 1.06 8% USD/EUR 0.73 0.72 1% * Includes GARDASIL Royalties 25
Slide 26: FY2011 Outlook in Constant Currency
FY2011 Outlook in Constant Currency Underlying Profit Growth of up to ~10% FY2011 considerations $187m $122m • CSL Behring sales growth of high FY2010 FY2011 NPAT Forecast single digit at const. FX $980m Growth • Ongoing to products medical demand for $931m (H1N1)* $1,050 Up to ~10% • Continued tran
Slide 27: CSL Growth Strategy
CSL Growth Strategy Market Royalties & Novel Development Licensing Products HPV Biotech Influenza rCoag Privigen® Hizentra ® ISCOMATRIX® CSL 360 Specialty products adjuvant Plasma Expanded geographies Technology rHDL partnering Global Specialty Bio- pharmaceutical Company Plasma sector growth Global
Slide 28: Appendix
Appendix
Slide 29: Group Results
Group Results Full year ended June June June June June Change Adj.* 2010 % $ Millions 2009 2009 2010 Reported Underlying CC** Reported Sales 4,622.4 4,622.4 4,455.8 5,079.7 10% Other Revenue / Income 416.0 190.1 226.9 171.2 190.3 Total Revenue / Income 5,039.4 190.1 4,849.3 4,627.0 5,270.0 Earnings
Slide 30: CSL Behring Sales
CSL Behring Sales Year ended June FY09 FY10 FY10 Change USD$M USD$M USD$M % CC rFVIII 434 489 486 12 pdCoag 517 544 540 4 Specialty Critical Care 285 313 305 7 Albumin* 267 279 275 3 Wound Healing 84 90 84 0 Immunoglobulins 1,063 1,197 1,191 12 Other Product Sales 45 72 72 60 Total Product Sales 2,6
Slide 31: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity FY2011 - Full year impact Translation Sensitivity to 1% movement in key currency pairs FY10 1% rate change Rates impact on FY11 • AUD/USD* 0.88 +/- $1.9m • AUD/EUR 0.63 +/- $3.9m • AUD/CHF 0.93 +/- $4.3m Transaction Full year impact estimate +ve $10m – $20m * Includes HP