Eli Lilly And Company · NYSE:LLY
Eli Lilly And — Investor Presentation (January 2016)
13 slides from Eli Lilly And's investor presentation, Jan 5, 2016
Slide 1: 2016 Financial Guidance
2016 Financial Guidance January 5, 2016 Notforpromotionaluse = = Company Confidential ©2016 Eli Lilly and Company
Slide 2: Safe Harbor Provision
Safe Harbor Provision This presentation contains forward-looking statements that are based on management's current expectations, but actual results may differ materially due to various factors. The company's results may be affected by factors including, but not limited to, the risks and uncertaintie
Slide 3: Strategic Objectives Post-YZ
strategic Objectives Post-YZ Expand ; Margins ° Strategic objectives unchanged * Making consistent Deploy Capital progress on each objective to Create Value
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Slide 5: Dynamics Affecting 2016 Results
Dynamics Affecting 2016 Results « Uptake of newer products: o Cyramza® Jardiance Trulicity® Basaglar Portrazza™ oo0°0 * Continued growth of Humalog®, Cialis®, and Forteo® * Takeback of Erbitux® rights in North America ¢ Leverage existing pharma commercial infrastructure and diabetes technical agenda
Slide 6: vs. 2015 Non-GAAP EPS Guidance
2016 vs. 2015 Non-GAAP EPS Guidance $3.40-$3.45 $3.45-$3.55 $3.47-$3.57 [ES0Bey] __$3.04-$3.09 $2.91-$2.96 ~~ [$0237] - _ [$0.25 7 as ane i; | Non-GAAP RemoveFX Non-GAAP Remove Gain Restated Non-GAAP RemoveFX AddNegative Non-GAAP EPS Guidance Benefitin EPS Guidance onReceptos Non-GAAP EPS Guidance _
Slide 7: vs. 2015 Non-GAAP Comparison
2016 vs. 2015 Non-GAAP Comparison 2015 Effect of FX on 2015 2016 Non-GAAP International Non-GAAP Non-GAAP Guidance Inventory Sold Excl. FX Constant FX Total Revenue $19.7b - $20.0b $19.7b - $20.0b $20.9b - $21.4b Cost of Sales Approx. $480m - Gross Margin % of Revenue Approx. 78.0% Approx. 75.5% App
Slide 8: Non-GAAP Walkthrough
2016 Non-GAAP Walkthrough Non-GAAP Foreign Non-GAAP Constant FX Exchange Guidance Total Revenue $20.9b-$21.4b Approx. ${675)}m $20.2b - $20.7b Cost of Sales Approx. $(375)m Gross Margin % of Revenue Approx. 76.0% Approx. 77.0% Mktg, Selling & Admin. $6.2b-$6.4b Approx. $(190)m $6.0b - $6.2b Research
Slide 9: GAAP Walkthrough
2016 GAAP Walkthrough Total Revenue Cost of Sales Gross Margin % of Revenue Mktg, Selling & Admin. Research & Development Integration Costs Other Income / (Expense) Tax Rate Earnings per Share Non-GAAP Inclusion of Novartis AH Guidance Amortization ' Costs GAAP Guidance $20.2b - $20.7b Approx. $650m
Slide 10: Guidance
2016 Guidance Total Revenue $20.2 to $20.7 billion Gross Margin % of Revenue [non-GAAP] Approx. 77.0% Gross Margin % of Revenue [GAAP] Approx. 74.0% Mktg, Selling & Admin. $6.0 to $6.2 billion Research & Development $4.8 to $5.0 billion Other Income / (Expense) $0 to $75 million Tax Rate [non-GAAP]
Slide 11: Guidance vs. Consensus
2016 Guidance vs. Consensus Analyst 2016 Non-GAAP Guidance Estimates Constant FX With FX Comments Total Revenue $21.5b $20.9b - $21.46 $20.2b - $20.7b Lower Elanco and OUS Alimta revenue; Different FX assumptions? Gross Margin % 75.9% Approx. 76.0% Approx. 77.0% Different FX assumptions? Mktg, Selli
Slide 12: Key Events in 2016
Key Events in 2016 Potential Phase 3 initiations: « BACE inhibitor for Alzheimer’s disease! « CGRP MAb for migraine prevention « Ixekizumab for axial spondyloarthritis ¢ Solanezumab for prodromal Alzheimer’s disease Potential Phase 3 data internal readouts: « Abemaciclib single-agent breast cancer (
Slide 13: Summary
summary ¢ Successfully navigated challenging period of patent expirations ¢ Strong momentum behind innovation-based strategy; continued execution key to creating value for all our stakeholders, including shareholders ¢ In 2015, we did make - and in 2016 we expect to continue to make - substantial pr
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