H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — Shareholder Meeting (March 2023)
51 slides from H. Lundbeck A/S Class A's shareholder meeting presentation, Mar 21, 2023
Slide 1: H. Lundbeck A/S 2023 Annual General Meeting
H. Lundbeck A/S 2023 Annual General Meeting March 21, 2023
Slide 2: Welcome
Welcome LARS RASMUSSEN Chair of the Board of Directors 2 Lundbeck
Slide 3: Board of Directors 2022
Board of Directors 2022 LARS SØREN LENE SKOLE- JEFFREY LARS ERIK DOROTHEA RASMUSSEN SØRENSEN BERKOWITZ HOLMQVIST WENZEL JEREMY MAX SANTIAGO DORTE LASSE CAMILLA GRAM HOSSEIN LEVIN ARROYO CLAUSEN SKIBSBYE ANDERSSON ARMANDI Elected by the employees for the period 2022 - 2026 3 Lundbeck
Slide 4: Executive Management
Executive Management DEBORAH LARS THOMAS ELISE DUNSIRE BANG GIBBS HAUGE President and CEO Executive Vice President, Executive Vice President Executive Vice President, Product Development & Supply U.S.A. People & Communication JOERG KELD FLINTHOLM PER JOHAN JACOB HORNSTEIN JØRGENSEN LUTHMAN TOLSTRUP
Slide 5: Annual General Meeting
ANNUAL GENERAL MEETING Jørgen Kjergaard Madsen
Slide 6: Agenda
AGENDA In accordance with Article 8.1 of the Articles of Association 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.
Slide 7: Item 1: Report from the Board of Directors
ITEM 1: REPORT FROM THE BOARD OF DIRECTORS Lars Rasmussen
Slide 8: Our purpose: restoring brain health
Our purpose: At Lundbeck, we are tirelessly dedicated to restoring brain health so every person can be their best Jenna Humphries Living with migraine
Slide 9: Lundbeck supports the people of Ukraine
Lundbeck supports the people of Ukraine • Assistance to our local employees to ensure their safety • Many Polish employees provided housing for Ukrainian families, organized collections, provided translation and logistical services • Continuing to supply medicines • Monetary donation of DKK 10 milli
Slide 10: Expand and Invest to Grow strategy continues
Expand and Invest to Grow strategy continues We aim to provide medicines that transform the lives of people living with rare and difficult to treat brain diseases • Recognized as #1 in Brain Health by patients and other stakeholders globally • Premier neuroscience pipeline focused in: • Niche psychi
Slide 11: Lundbeck's share split into A & B shares
Lundbeck’s share split into A & B provides increased financial flexibility to pursue Lundbeck’s strategy • Share split executed June 8, 2022 Both share classes are listed on Nasdaq Copenhagen • Each of Lundbeck’s existing shares split into: HLUN A • One (1) A-share carrying ten votes A-shares ISIN n
Slide 12: Record-breaking revenue of DKK 18.2 bn in 2022
Lundbeck achieved record-breaking revenue of DKK 18.2 bn in 2022 following exceptional growth of 12% (reported rates) Excellent Strategic brands Robust profit growth, Pipeline revenue deliver strong double- while investing for continues to performance digit growth growth progress DKK 18.2 bn DKK 4.6
Slide 13: Exceptional revenue and profit growth
Exceptional revenue and profit growth - more than 40% growth in both EBIT and EPS Revenue and EBIT DKKm FY 2022 Δ LY • Strong revenue performance with 12% growth Revenue 18,246 +12% • Exceptional organic EBIT growth of 42% Gross margin 78.3% +0.7pp SG&A SG&A 7,689 +13% • Higher promotion and sales c
Slide 14: Dividend payout
Dividend payout DKKm 2022 2021 Share Profit for the year 1,916 1,318 Proposed dividends for the year 578 398 30% Carried forward as retained earnings 1,338 920 70% Proposed dividend per share (DKK) * 0.58 0.40 * The calculation is based on a share denomination of DKK 1 as a result of the share split
Slide 15: Solid growth in revenue and profitability expected to continue
Solid growth in revenue and profitability expected to continue in the coming years Revenue performance (DKKbn) Expected organic development towards mid-term aspiration (3-4 years) Mid-single digit CAGR • Continued double-digit growth for strategic brands • EBITDA margin ~30-32% • Launch investments
Slide 16: Solid financial foundation from which we execute on our strategy
Solid financial foundation from which we execute on our strategy Net debt and Net debt/EBITDA Net debt (FY - DKKm) Net debt/EBITDA FY 2022 Cash flow negatively impacted by: 8,000 1.6 • Significant milestone payment for EMA approval of Vyepti 6,635 • Dividend payout 6,000 1.2 • CAPEX investments 4,00
Slide 17: Sustainability is integral to how we do business
Sustainability is integral to how we do business ENVIRONMENT SOCIAL RESPONSIBILITY • 8th consecutive year of achieving a CDP leadership score • Scope 1 & 2 carbon emissions reduced 29% vs. 2019* • +8 million** patients reached daily • 100% of electricity for Lundbeck Denmark is from new solar • Incr
Slide 18: Update from the CEO
UPDATE FROM THE CEO Deborah Dunsire
Slide 19: Our people are the most important asset in Lundbeck
Our people are the most important asset in Lundbeck 19 Lundbeck
Slide 20: Record-breaking revenue of DKK 18.2 bn in 2022
Lundbeck achieved record-breaking revenue of DKK 18.2 bn in 2022 following exceptional growth of 12% 2022 Revenue Strategic Brands Growth in Regional Revenue represent (in local currencies) DKK 18.2bn 33% United States +7% 67% 2022 +12% YoY growth 67% Europe +12% of Lundbeck total Revenue ALMAC +9%
Slide 21: Vyepti global rollout progressing as planned
Vyepti global rollout progressing as planned Revenue (DKKm)* Launched in 9 markets in 2022: Australia, Canada, Denmark, Estonia, Finland, Germany, Singapore, Sweden and Switzerland DKK 1,004m 1.004m Around 15 launches planned for 2023 (UK, France, Austria and Indonesia launched in January) +104% U.S
Slide 22: Strong Brintellix/Trintellix growth
Strong Brintellix/Trintellix growth underpinned by excellent efficacy profile Revenue Excellent development of sales in Japan (DKKm)* DKK 4,277m • 10.1% value market share (up 4.3ppt in 2022) +21% • In Japan Trintellix continues to grow in first-line among psychiatrists DKK 3,526m Europe and Interna
Slide 23: Rexulti sales growth outstanding in 2022
Rexulti sales growth outstanding in 2022 driven by strong demand growth Revenue (DKKm)* DKK 3,890m Continued strong growth momentum in the U.S. +37% • Market share at all time high DKK 2,849m • Number of Rx increased with strong in person promotion and DTC offering • AAD launch preparations progress
Slide 24: Abilify Maintena delivered solid growth
Abilify Maintena delivered solid growth in North America and Europe Revenue (DKKm)* Strong growth in 2022 DKK 2,964m +22% • Growth mainly driven by the U.S., Spain and Canada DKK 2,420m Strong market share gains in Europe • Exceeding 30% market share in countries such as Italy, Switzerland and U.K.
Slide 25: Streamlined R&D platform on track to develop the product pipeline
Streamlined R&D platform on track to develop the product pipeline Biology Project Area Phase I Phase II Phase III Filing/launch Four biological clusters 1) for innovation Eptinezumab (anti-CGRP mAb) Migraine prevention SUN-studies PROMISE 1 & 2 1) Hormonal / Eptinezumab (anti-CGRP mAb) Cluster heada
Slide 26: Continue to build our brands through Life Cycle Management
Continue to build our brands through effective Life Cycle Management Rexulti Vyepti High unmet need in PTSD Cluster headache affects approximately one in 1,000 people across the world ~8.6m U.S. adults affected, but ~80% estimated These are severe attacks of one-sided pain in the to be undiagnosed1,
Slide 27: Strong progression in the mid-stage pipeline
Strong progression in the mid-stage pipeline - two phase II programs completed enrollment PACAP Asymab Migraine prevention with prior treatment failures Potentially first therapy delaying disease progression in Multiple System Atrophy (MSA) Potential to be first-in-class with a differentiated approa
Slide 28: Strong progression in the early-stage pipeline
Strong progression in the early-stage pipeline – continued flow of new drug candidates from research to clinical Neurohormonal dysfunction Neuro-inflamation Neuro-circuitry First in class mAb with potential CD40L: antibody fragment with Unmet medical need: Parkinson’s to offer a safe and efficacious
Slide 29: 2023 financial guidance
2023 financial guidance – growth on both revenue and EBITDA FY 2023 financial guidance FY 2023 considerations DKKm FY 2022 Actual 2023 Guidance Revenue 18,246 19.4 ̶ 20.0bn Revenue EBITDA 4,663 4.8 ̶ 5.2bn • Continued solid growth of Abilify Maintena, Brintellix/Trintellix and Rexulti • Strong momen
Slide 30: Focused on driving long term sustainable growth
Focused on driving long term sustainable growth Maximize strategic brands • Accelerate and globalize Vyepti • Maximize Rexulti AAD launch • Continue to grow Brintellix and Abilify Maintena Restoring • Capitalize on years with no LOEs brain health so every Continue R&D transformation for mid- and lon
Slide 31: Item 2: Approval of the Annual Report
ITEM 2: APPROVAL OF THE ANNUAL REPORT
Slide 32: Item 3: Resolution on the Appropriation of Profit or Loss
ITEM 3: RESOLUTION ON THE APPROPRIATION OF PROFIT OR LOSS
Slide 33: Resolution on distribution of profit or loss
Item 3: Resolution on distribution of profit or loss DKKm 2022 Share Profit for the year 1,916 Proposed dividends for the year 578 30% Carried forward as retained earnings 1,338 70% Proposed dividend per share (DKK) * 0.58 * The calculation is based on a share denomination of DKK 1 as a result of th
Slide 34: Item 4: Advisory Vote on the Remuneration Report
ITEM 4: PRESENTATION OF AND ADVISORY VOTE ON THE REMUNERATION REPORT
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 the report to be approved 35 Lundbeck
Slide 36: Item 5: Election of Members to the Board of Directors
ITEM 5: ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS
Slide 37: Members of the Board of Directors elected at the 2022 AGM
Item 5: Members of the Board of Directors - elected at the 2022 Annual General Meeting Remuneration & Nomination Audit Scientific Members Independent Committee Committee Committee 1. Lars Søren Rasmussen, Chair Yes ✓Chair ✓ 2. Lene Skole-Sørensen, Deputy Chair No ✓ ✓ 3. Dorothea Wenzel Yes ✓Chair 4.
Slide 38: Proposal to expand the Board of Directors
Item 5: Proposal to expand the Board of Directors Adding additional competencies Jakob Riis (Denmark) - nominated for election to the Board of Directors of H. Lundbeck A/S • CEO at Falck A/S (since 2017) • Brings more than 25 years of experience in management and sales & marketing in the internation
Slide 39: Election of members to the Board of Directors
Item 5: Election of members to the Board of Directors LARS SØREN LENE SKOLE- JEFFREY LARS ERIK RASMUSSEN SØRENSEN BERKOWITZ HOLMQVIST DOROTHEA JEREMY MAX SANTIAGO JAKOB WENZEL LEVIN ARROYO RIIS 39 Lundbeck
Slide 40: Board of Directors 2023
Item 5: Board of Directors 2023 LARS SØREN LENE SKOLE- JEFFREY LARS ERIK DOROTHEA RASMUSSEN SØRENSEN BERKOWITZ HOLMQVIST WENZEL JEREMY MAX SANTIAGO JAKOB DORTE LASSE CAMILLA GRAM HOSSEIN LEVIN ARROYO RIIS CLAUSEN SKIBSBYE ANDERSSON ARMANDI Employee representatives 2022 - 2026 40 Lundbeck
Slide 41: Item 6: Approval of Board Remuneration
ITEM 6: APPROVAL OF REMUNERATION FOR THE BOARD OF DIRECTORS FOR THE CURRENT FINANCIAL YEAR
Slide 42: Approval of remuneration – unchanged from 2022
Item 6: Approval of remuneration – unchanged from 2022 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 43: Item 7: Election of State Authorized Public Accountants
ITEM 7: ELECTION OF STATE AUTHORIZED PUBLIC ACCOUNTANTS
Slide 44: Election of state authorized public accountants
Item 7: Election of state authorized public accountants PwC, Statsautoriseret Revisionspartnerselskab Lars Baungaard Torben Jensen State Authorized Public Accountant State Authorized Public Accountant 44 Lundbeck
Slide 45: Item 8: Proposals from Shareholders or the Board
ITEM 8: PROPOSALS FROM SHAREHOLDERS OR THE BOARD OF DIRECTORS
Slide 46: Proposal by the Board of Directors: treasury shares
Item 8: Proposal by the Board of Directors 8.1. Acquisition of treasury shares The Board of Directors proposes 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 pur
Slide 47: Proposal by the Board of Directors: Remuneration Policy
Item 8: Proposal by the Board of Directors 8.2. Adoption of the amended Remuneration Policy The Board of Directors proposes to adopt the amended Remuneration Policy for the Board of Directors and Executive Management. This includes a proposal to reduce the maximum pension contribution percentage for
Slide 48: Shareholder proposal
Item 8: Shareholder proposal 8.3. Shareholder proposal to purchase properties closest to the Lumsås factory Shareholder Astrid Skotte proposes that Lundbeck, in accordance with its Code of Conduct, offers to purchase the properties closest to the Lumsås factory to ensure health, safety and good rela
Slide 49: Proposal by the Board of Directors: filing of resolutions
Item 8: Proposal by the Board of Directors 8.4. 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 Chair of the annual general meeting to make such amendments and additions to the resolut
Slide 50: Item 9: Any Other Business
ITEM 9: ANY OTHER BUSINESS
Slide 51: Thank you and goodbye
THANK YOU AND GOODBYE