2012 - ubs emerging markets conference
DESCRIPTION
2012 - Ubs Pan European ConferenceTRANSCRIPT
UBS Pan-European Conference “Capturing the Emerging Trend”
Hanspeter Spek, President - Global operations
June 1st, 2012
2
Forward Looking Statements
This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans" and similar expressions. Although Sanofi's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when to approve any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labeling and other matters that could affect the availability or commercial potential of such product candidates, the absence of guarantee that the product candidates if approved will be commercially successful, the future approval and commercial success of therapeutic alternatives, the Group's ability to benefit from external growth opportunities, trends in exchange rates and prevailing interest rates, the impact of cost containment policies and subsequent changes thereto, the average number of shares outstanding as well as those discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in Sanofi's annual report on Form 20-F for the year ended December 31, 2011. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements.
Emerging Markets opportunity
Sanofi’s leadership
Agenda
3
Growth Contribution from Emerging Markets to Global Pharma Market Expected to be >70%
4
2010
World Pharmaceutical Market(1)
2015e
Contribution to Growth
(1) IMS Market Prognosis, 2011-2015 (2 ) World less North America (USA, Canada), Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg,
Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia and New Zealand
Emerging Markets Mature Markets
Opportunities and Challenges
● Growing and aging populations
● Shift from acute to chronic diseases
● Need for greater access to medicines
● Cost burden on governments and healthcare reforms
● Largely out-of-pocket markets
● Increased investment from all market players
Sales Split
74%
26%
€656bn
€837bn
(2)
26%
74%
64%
36%
5
Macro Factors Point to Strong Growth in Emerging Markets
(1) IMF; CIA The World Factbook (2) IMF; internal analysis (3) IMF; WHO 2008 (4) IMS Pharmerging Markets CAGR 2010-2015 (5) WHO, World Population Prospects: The 2010 revision; CIA The World Factbook (6) Brookings Institution; Goldman Sachs
Emerging Markets
Population(1) 6bn
Estimated GDP growth 2010-2015(2) 5-9%
Healthcare expenditure as % of GDP(3) 5-6%
Estimated Pharmaceutical Market growth CAGR 2010-2015(4) 13-16%
Annual birth cohorts(5) 120m
Large middle class by 2030(6) ~2bn
Emerging Markets opportunity
Sanofi’s leadership
Agenda
6
Sanofi - An Unparalleled Leadership Position in Emerging Markets
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(1) World less North America (USA, Canada), Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia and New Zealand
(2) Emerging Markets sales of €10,133m, up +10.1% at CER in 2011
+16%
+9%
2011
€10.1bn
2010 2009 2008 2007 2006 2005
€5.0bn
Sanofi’s Performance in Emerging Markets(1, 2)
Sanofi Sales in Emerging Markets Overtake Sales in Traditional Markets
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Note: Sales growth excluding A/H1N1 and Genzyme is : +10.4% for Emerging Markets, -5.7% for U.S., -10.5% for Western Europe, +6.3% for ROW (1) World less North America (USA, Canada), Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia and New Zealand (2) Emerging Markets represented 30.3% of Sanofi sales in 2011 vs. 24% in 2008 (3) Japan, Canada, Australia and New Zealand
ROW
€4,169m +13.8% at CER
Western Europe
€9,130m
-4.0% at CER
United States
€9,957m
+6.8% at CER
(3)
Emerging Markets
€10,133m
+10.1% at CER
30.3%
(1, 2)
29.8%
27.3%
12.5%
9 (1) Growth at CER excluding Genzyme and A/H1N1
Sanofi Benefits from a Broad Emerging Markets Presence and Enjoys a Strong Performance in BRIC
+18.1%
-0.4% +15.7%
+8.4%
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Emerging Markets FY 2011 Sales Split(1)
€3,467m
+19.8% at CER excluding Genzyme and A/H1N1
BRIC (Brazil, Russia, India, China)
# #
10
Well Poised to Capture Growth in Other Fast Growing Economies
€10.1bn Total Emerging Markets Sales
in 2011
#1 in Africa and Middle East
#2 in CEE #2 in LatAm #4 in Asia
10 countries with sales between
€100m and €500m in 2010
BRIC: Brazil, Russia, India, China (1) IMS MIDAS MAT Q1 2011
~3bn
Large Population
Sanofi Leadership Position
outside BRIC(1)
Countries with Scale
BRIC 34.2%
Non-BRIC 65.8%
Sanofi is the #1 Healthcare Company in Emerging Markets
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A commercial presence in a large number of Emerging
Markets
Sanofi’s Scorecard in Emerging Markets
Number one company in Emerging
Markets by market share
A top position in most of the fast growing economies
One of the biggest sales
forces in Emerging Markets
Largest proportion of
sales generated in Emerging
Markets among peers
A wide network of
industrial sites across
Emerging Markets
#1 with
5.4% market share (1)
#1 in BRIC
and non-BRIC
>30% of global
sales
~21,000 sales
people (2)
48 industrial
sites (2)
~100 countries with
commercial presence
(1) IMS MIDAS FY 2011 (2) December 2011 11
% of Global Product Sales in 2011
€706m
€551m
€294m
€363m
€181m
€228m
€227m
2011 Sales in Emerging Markets
Significant Contribution from Legacy Brands in Emerging Markets despite Generic Competition
Legacy Brands in Emerging Markets
€162m
12
26%
28%
32%
52%
59%
48%
35%
15%
+11.9%
+14.1%
-24.5%
+6.7%
+0.2%
+8.7%
+11.3%
2011 Sales Growth (at CER)
+9.5%
Growing Exposure to Emerging Markets with a Broad and Diversified Offering
13 (1) Merial sales not consolidated in 2008 (2) Pharmaceuticals sales excluding Diabetes, CHC and Generics
Emerging Market Sales and % Represented by Emerging Markets per Segment
Building a Tailored Portfolio in Emerging Markets through Multiple Acquisitions and Partnerships
Generics and
Consumer Health Care
● A total of 17 deals since 2008
● Addressing income disparities
● Tapping into out-of-pocket markets
● Adding local brands
● Invested a total of around €3.7bn in acquisitions
Adjusting our Offerings to Local Needs in Fast Growing Market Segments
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Key Success Factors to Sustain our Unmatched Leadership Position in Emerging Markets
Historical presence
● Leverage unique accumulated experience and diversified product portfolio
Market reach ● Expand sales forces to address rural areas
Manufacturing capacity ● Grow network of industrial sites to serve increasing volume
Quality of management ● Attract, train and retain local management talent
Tapping into local innovation ● Broaden R&D networks in Asia
Bolt-on acquisitions
● Continue to enlarge our portfolio by successfully identifying and integrating M&A targets