Ucb S.a. · EURONEXT:UCB
Ucb — Q1 2017 Earnings Presentation
37 slides from Ucb's earnings presentation, Apr 24, 2017
Slide 1: UCB 3 months interim report
UCB Inspired by patients. Driven by science. 3 months interim Report Brussels, 24 April 2017 Carolin, living with epilepsy and axial spondyloarthritis
Slide 2: Disclaimer and safe harbor
2017 3M interim report 2 Disclaimer and safe harbor Forward-looking statements This presentation contains forward-looking statements, including, without limitation, statements containing the words “believes”, “anticipates”, “expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will”, and “con
Slide 3: Environment evolution
2017 3M interim report 3 Environment evolution Patients are waiting for solutions to their health issues Technology Empowered Cost contained maturity patients healthcare budgets Increasing demand for value based differentiation
Slide 4: UCB's Patient Value Strategy
2017 3M interim report 4 UCB's Patient Value Strategy We deliver highly differentiated solutions to specific populations, striving for a unique experience for each patient. Hüseyin, living with RA Shareholder value Value for patients
Slide 5: UCB's strategic growth path
2017 3M interim report 5 UCB’s strategic growth path True differentiation drives leadership and sustainability Breakthrough phase Growth expansion Growth by the next wave expansion of products Briviact® + Strong growth Evenity™ Cimzia®, Vimpat®, Neupro® + Keppra® 2015 2019 Evenity™ is the trade name
Slide 6: UCB is progressing on its growth path
2017 3M interim report 6 UCB is progressing on its growth path Priorities – Achievements Q1 2017 Grow Cimzia®, Vimpat® and Neupro® Combined net sales: € 629 million (+17%) Combined net sales of main products (CVNKB): € 853 million (+20%) Advance and prepare launch of next wave Briviact® (brivaraceta
Slide 7: 3 months 2017 key financial highlights
2017 3M interim report 7 3 months 2017 key financial highlights On track to deliver FY 2017 guidance *2016 figures have been restated reflecting IFRS 15 implementation in 2017 Numbers may not add due to rounding CER: constant exchange rate
Slide 8: Evenity (romosozumab)
2017 3M interim report 8 Evenity™ (romosozumab) An innovative investigational bone-building therapy Uniquely increases bone formation and decreases bone resorption ™ Opportunity to build bone in high-risk osteoporosis patients, especially post-fracture Under regulatory review in U.S., Canada and Jap
Slide 9: R&D milestones
2017 3M interim report 9 R&D milestones H1 2017 H2 2017 > 2018 rozanolixizumab / Cimzia® Cimzia® bimekizumab Cimzia® UCB7665 psoriasis / psoriatic psoriasis psoriasis nr axSpA (U.S.) myasthenia gravis arthritis - Phase 3 Phase 3 results Phase 2b results Phase 3 results Phase 2a start results (Japan)
Slide 10: 10 NMEs in clinical development with important read-outs in 2017
2017 3M interim report 10 10 NMEs* in clinical development to deliver breakthrough solutions with important read-outs in 2017 Learn phase – POC1 Confirm phase Filing Phase 1 Phase 2 Phase 3 padsevonil / UCB0942 (PPSI) Phase 2a results: Feb. 2017 highly drug resistant epilepsy dapirolizumab pegol (CD
Slide 11: 2017 financial outlook
2017 3M interim report 11 2017 financial outlook …and mid-term targets confirmed 2017 Financial Targets Guidance beyond 2017 Revenue € 4.25 - 4.35 billion rEBITDA / revenue ratio 30% • Continued strong growth: Cimzia®, Vimpat®, in 2018 Neupro®, Briviact® • No nitrates, venlafaxine ER sales after div
Slide 12: UCB's value proposition: The patient preferred biopharma
2017 3M interim report 12 UCB’s value proposition: The patient preferred biopharma Ready to take advantage of a changing environment Patient Shareholder value value
Slide 13: Further facts and figures
Further facts and figures Fa Inspired by patients. kd Driven by science.
Slide 14: Strong Cimzia performance across all regions
2017 3M interim report Strong Cimzia® performance across all regions 14 Cimzia® Net sales1 • Crohn’s disease € million 3M 2017 3M 2016 Act CER • rheumatoid arthritis • psoriatic arthritis U.S. 200 175 14% 10% • axial spondyloarthritis / Europe 84 79 6% 8% ankylosing spondylitis Japan 10 10 4% -1% 20
Slide 15: Vimpat performance
2017 3M interim report 15 Vimpat® performance Robust growth in all markets, launch in Japan Vimpat® Net sales1 epilepsy POS2 € million 3M 2017 3M 2016 Act CER U.S. 186 146 27% 23% 2022 patent expiry Europe 40 34 16% 16% (U.S. & EU) 2024 (Japan) Japan 3 n.a. n.a. Daiichi Sankyo International markets
Slide 16: Keppra performance
2017 3M interim report 16 Keppra® performance Continued in-market demand Keppra® Net sales1 • epilepsy POS2 € million 3M 2017* 3M 2016 Act CER • epilepsy PGTCS3 • epilepsy myoclonic U.S. 52 51 2% -1% seizures Europe 61 59 3% 4% Status of exclusivity: • Japan (until 2018) Japan 51 25 >100% 93% • U.S.
Slide 17: Briviact launch
2017 3M interim report 17 Briviact® launch New treatment option for patients living with epilepsy Briviact® Net sales1 € million 3M 2017 3M 2016 Act CER epilepsy POS2 U.S. 11 n.a. n.a. 2026 patent expiry Europe 3 1 >100% >100% (U.S. & EU) International markets 0 n.a. n.a. 18 million Total Briviact®
Slide 18: Neupro performance
2017 3M interim report 18 Neupro® performance Neupro® Net sales1 • Parkinson’s disease € million 3M 2017 3M 2016 Act CER • restless legs syndrome U.S. 24 20 19% 15% 2021 patent expiry Europe 38 36 6% 7% (U.S. & EU) 2024 (Japan) Japan 8 12 -33% -33% Otsuka (Japan - 2002) International markets 3 3 0%
Slide 19: Cimzia in-market performance
2017 3M interim report 19 Cimzia® in-market performance U.S. Europe Japan Cimzia® vs. anti-TNF1 Cimzia® vs. Rheumatology1 Cimzia® vs. RA Market 20% Market Growth 20% Market Growth 20% Growth 17.5% 15% 15% 13.4% 15% 14.9% 10% 10% 7.9% 10% +12.7% +8.9% 6.2% +15.3% 4.5% 4.8% 5% 5% 5% -0.4% 1.3% 0% 0% 0
Slide 20: Vimpat in-market performance
2017 3M interim report 20 Vimpat® in-market performance U.S. Europe Japan Vimpat® vs. AED Market Growth (TRx) Vimpat® vs. AED Market Growth (TDx) Vimpat® vs. AED Market Growth (TDx) 20% 20% 20% 14.8% 15% 12.8% 15% 15% 10% 10% 10% Numbers to be +15.4% populated when 3.6% +9.2% 5% 5% 5% sufficient dat
Slide 21: Keppra in-market performance
2017 3M interim report 21 Keppra® in-market performance U.S. Europe Japan Keppra® vs. AED Market Growth Keppra® vs. AED Market Growth 6.0% (TRx) 7.0% (TDx) Keppra® vs. AED Market Growth 3.6% 5.8% 50% (TDx) 43.4% 4.0% 6.0% 2.0% 5.0% 40% 0.0% 4.0% 30% -2.0% AED Market Keppra® 3.0% +38.3% -4.0% -14.0%
Slide 22: Briviact in-market performance
2017 3M interim report 22 Briviact® in-market performance A new therapeutic option in the AED market U.S. Europe Briviact® – R3M TDx Share Briviact® – R3M TRx Share 0.50% 0.50% 0.40% 0.40% 0.33% 0.30% 0.30% 0.20% 0.20% 0.11% 0.10% 0.10% 0.00% 0.00% Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 Apr-16 Ju
Slide 23: Neupro in-market performance
2017 3M interim report 23 Neupro® in-market performance U.S. Europe Japan Neupro® PD vs. PD (KC) Neupro® PD vs. PD (KC) Neupro® PD vs. PD (KC) 10.0% Market Growth (TRx) 10.0% Market Growth (TDx) 25% 22.1% 8.4% Market Growth (TDx) 8.0% 8.0% 20% 6.0% 6.0% 15% 4.0% 4.0% 10% -2.5% 2.6% +7.5% +20.0% 2.0%
Slide 24: One UCB today: A Global Player
2017 3M interim report 24 One UCB today: A Global Player Presence in 38 countries completed by a robust network of partners 2 RESEARCH CENTERS • Braine-l’Alleud (Belgium) • Slough (U.K.) 5 7 563 DEVELOPMENT HUBS employees • RTP North Carolina (U.S.) globally • Monheim (Germany) • Brussels (Belgium)
Slide 25: One UCB today: A global player
2017 3M interim report 25 One UCB today: A global player Presence in 38 countries complemented by a robust network of partners December 2016
Slide 26: One UCB today: A global player
2017 3M interim report 26 One UCB today: A global player Presence in 38 countries complemented by a robust network of partners December 2016
Slide 27: 2016 - Product mix further improved
2017 3M interim report 27 2016 - Product mix further improved Cimzia®, Vimpat®, Neupro® = 62% of net sales (2015: 56%) Briviact® launched Cimzia® +21% (+21% CER) •Strong performance across all regions Vimpat® +20% (+20% CER) •Sustainable growth in all markets Keppra® -2% (-2% CER) •Post-exclusivity
Slide 28: 2016 - Top line growth leads to improved ratios
2017 3M interim report 28 2016 - Top line growth leads to improved ratios* Sustainable growth and margin improvement 30% Gross margin ratio Total operating expense ratio 25% 71% 70% 69% 69% 60% 21% 57% 55% 52% 18% 17% FY 2013 FY 2014 FY2015 FY2016 2018e rEBITDA ratio FY 2013 FY 2014 FY 2015 FY 2016
Slide 29: 2016 - Strong Cash Flow
2017 3M interim report 29 2016 - Strong Cash Flow "Net debt/rEBITDA ratio of 1:1" achieved ahead of time KU nitrates, divestiture venlafaxine divestiture 838 0.8x Net Cash Flow from continuing operations in € million Net Debt & rEBITDA ratio CAGR: composite annual growth rate
Slide 30: Debt maturity schedule (31 December 2016)
2017 3M interim report 30 Debt maturity schedule (@ 31 December 2016) Perpetual bond called in March 2016 Institutional bond matured in December 2016 (€ million) 763 369 369 350 244 ,119 350 350 176 ,169 39 19 250 176 75 - - Liquid 2017 2018 2019 2020 2021 2022 2023 2024 beyond assets Belgian retail
Slide 31: 2016 - Recurring EBITDA
2017 3M interim report 31 2016 - Recurring EBITDA Solid growth - Improved operating expenses ratio FY 2016 FY 2015 Variance € million Actual Actual CER Revenue 4 178 3 876 8% 7% Net sales 3 858 3 512 10% 9% Royalty income and fees 125 176 -29% -24% Other revenue 195 188 4% 5% Gross profit 2 976 2 71
Slide 32: 2016 Profit
2017 3M interim report 32 2016 Profit FY 2016 FY 2015 Variance € million Actual Actual CER Recurring EBIT 796 577 38% 27% Impairment charges - 12 - 88 -86% -85% Restructuring expenses - 33 - 27 25% 25% Gain on disposals 171 139 23% 23% Other non-recurring income - 46 - 79 -66% -65% Total non-recurri
Slide 33: 2016 - Core earnings per share
2017 3M interim report 33 2016 - Core earnings per share Strong growth of core net profit and less shares outstanding
Slide 34: 2016 revenue and key product net sales performance
2017 3M interim report 34 2016 revenue and key product net sales performance FY 2016 FY 2015 Variance € million Actual Actual CER Revenue 4 178 3 876 8% 7% Net sales 3 858 3 521 10% 9% Immunology / Cimzia® 1 307 1 083 21% 21% Neurology 1 857 1 678 11% 11% Vimpat® 814 679 20% 20% Keppra® 724 737 -2%
Slide 35: Strong neurology portfolio performance
2017 3M interim report 35 Strong neurology portfolio performance Leading epilepsy company: The right product for the right patient at the right time € million FY 2016 FY 2015 Actual CER Vimpat® 814 679 20% 20% Keppra® 724 737 -2% -2% Briviact® 18 Total epilepsy 1 555 1 416 10% 10% Neupro® 302 258 17
Slide 36: Shareholder structure
2017 3M interim report 36 Shareholder structure Stable shareholder base with free-float of 61% Total number of shares: 194.5 million Weighted average shares outstanding in 2016: 188 million “Free float” investors by region Source: Notifications and UCB underlying ownership analysis
Slide 37: Your UCB Investor Relations team
2017 3M interim report 37 Your UCB Investor Relations team ןAntje Witte, Vice President Investor Relations • Phone: +32 2 559 9414 • E-mail: antje.witte@ucb.com ןIsabelle Ghellynck, Director Investor Relations • Phone: +32 2 559 9588 • E-mail: isabelle.ghellynck@ucb.com ןNathalie Deldime, I