annual press conference 2016 · 2016-10-14 · annual press conference 2016 sound equity structure:...

Financial year 2015

Annual Press Conference 2016

Andreas Barner

Chairman of the Board of Managing Directors

Financial year 2015

Significant medical advances

Annual Press Conference 2016 3

• praxbind®

Launched in USA and EU. Agent to reverse anticoagulant effect of pradaxa®

FDA approves praxbind, the first reversal agent for

the anticoagulant pradaxa FDA approves first

pradaxa reversal agent

• Immunology

Increased efforts in developing and marketing two advanced active ingredients for, inter alia, psoriasis, through cooperation with AbbVie

• ofev® For idiopathic pulmonary fibrosis (IPF) now approved in EU

• spiolto® respimat® Approved in EU, Japan, Canada and USA for COPD

• spiriva® respimat® Also approved for asthma in USA

• jardiance ® Typ-2-Diabetes

Considerably reduces risk of mortality through cardiovascular events

Strategic course set for further growth


Sale of generics business

Exclusive negotiations entered with Sanofi over a strategic swap of the CHC and Animal Health business

Announcement of an investment of around 500 million euros in biopharmaceutical production facility in Vienna (Austria)

Increased net sales and improved operating income


• Net sales increased to 14.8 billion euros

• Operating income improved to 2.3 billion euros

• Return on sales 15.3 %

Hubertus von Baumbach

Corporate Board Division Finance

Businesses and financial figures 2015

Increase in net sales and operating income

Bilanzpressekonferenz 2016 7

in EUR billion

Net Sales

13.3

14.8

2014 2015

Operating income and return on sales

2.1 2.3

2014 2015

• Operating income increased by 6%

Development R&D expenditure

2.7 3.0

2014 2015

• 2015: R&D expenditure corresponds to 20,3% of total net sales

19.9% 20.3%

16.1% 15.3%

• +11.1% (in euro terms)

• +4.1% (currency-adjusted); without generics business: +5.3% (currency-adjusted)

10.2

2.2 -0.4

8.5

2014 2015

-0.05

Assets Liabilities & Equity

High liquidity and equity safeguard independence

8

Cash flow from financing activities

Financial funds*

* after adaptation to DRS 21

Cash flow from operating activities

Cash flow from investing

activities

Financial funds


Sound equity structure:

• Equity of EUR 9.6 billion equivalent to equity ratio of 41%

• Tangible assets covered almost three times by equity

Equity

Pensions provisions

Other liabilites

Other assets

Tangible assets

• Financial funds of EUR 10.2 billion safeguard independence and financial flexibility for future growth

• Cash flow from operating activities exceeds investments in tangible assets many times over

Total assets: EUR 23.3 billion Financial funds

In EUR billion

Net sales growth in all businesses


Net sales 2015 by business

Net sales growth of businesses (currency-adjusted)

• Prescription Medicines excluding generics business (PM excluding generics): + 4.1%

• Consumer Health Care (CHC): + 7.1%

• Animal Health (AH): + 10.5%

• Biopharmaceuticals (BIO): + 15.0%

PM excluding generics

CHC

AH

BIO

Generics

EUR 1.5 billion

EUR 1.4 billion

EUR 0.6 billion

EUR 10.7 billion

EUR 0.5 billion

Others

Net sales growth in all businesses - Prescription Medicines, excluding generics


• 72% of group net sales

• +4.1% (currency-adjusted) compared with previous year

• Net sales of important products, growth currency-adjusted:

• spiriva®: EUR 3.5 billion (-0.7%)

• pradaxa® : EUR 1.3 billion (+0.4%)

• ofev® : EUR 0.3 billion (launch 2015)

• Diabetes portfolio growth driver: EUR 1.1 billion (+49%)

Generics

10.7

Net sales 2015

in EUR billion


1.5 • 10% of group net sales


• Net sales top products, growth currency-adjusted:

• dulcolax® : EUR 225 million (+5.2%)

• buscopan® : EUR 223 million (+17.2%)

• mucosolvan® : EUR 168 million (+ 8.8%)

• pharmaton® : EUR 140 million (+5.3%)

Net sales growth in all businesses – Consumer Health Care

Net sales 2015

in EUR billion


1.4



• Net sales top products, growth curreny-adjusted:

• ingelvac circoflex® : EUR 281 million (+4.1%)

• ingelvac®prrs: EUR 99 million (+22.8%)

• metacam®: EUR 101 million (+1.7%)

• duramune®: EUR 88 million (+7.5%)

Net sales growth in all businesses – Animal Health Net sales 2015

in EUR billion

13


• +15% compared with previous year

• Main activities:

• Contract manufacturing

• Development of new biological entities (NBEs)


Net sales growth in all businesses – Biopharmaceuticals

0.6

Net sales 2015

in EUR billion

Andreas Barner

Chairman of the Board of Managing Directors

Strategy

Breakthrough in diabetes research


Results of the major EMPA-REG OUTCOME® study with empagliflozin show:

• jardiance® is the first diabetes medication with proven cardiovascular benefit

• jardiance® lowers mortality risk through cardiovascular events by more than one third

• jardiance® also effective for patients with heart failure or impaired renal function

• jardiance® significantly reduces progression of diabetic renal disease compared to placebo

Positive media response worldwide to EMPA-REG OUTCOME® data


Diabetes pill’s added bonus is protection from heart attacks

In a first, a diabetes drug saves lives. But how?

Diabetes drug cut cardiovascular deaths by 38%, study says

Boehringer/Lilly's Jardiance wows with CVOT data

New diabetes drug shows sharply reduced risk of heart-related death

Type 2 Diabetes Pill Jardiance Cuts Risk of Death

SGLT2-Hemmer reduziert kardiovaskuläre Mortalität

Neue Hoffnung für Diabetes-Patienten

Treatment of chronic heart failure Two new outcome studies with empagliflozin planned


• Chronic heart failure: High unmet medical need

26 million patients worldwide (2013)

Approx. 50% mortality within five years

USA: 1 million hospitalisations per year with costs of nearly USD 25 billion (2012)

About 1/3 of all patients with proven diabetes

• Two large outcome trials with empagliflozin for the treatment of chronic heart failure in patients with or without diabetes

• Start: end of 2016/early 2017

Corporate Strategy

Corporate strategy – Previous disposition


Prescription Medicines (excluding generics)

Biop

harm

aceuticals

An

imal H

ealth

Con

sum

er Health

Care

Gen

erics

Corporate strategy – Potential disposition in future



Biop

harm

aceuticals

An

imal H

ealth

Our new research strategy

21

Oncology

Cardiometabolic diseases

Immunology and respiratory diseases


Diseases of the central nervous system

Hubertus von Baumbach

Corporate Board Division Finance

Organisational changes / Outlook 2016

Changes in Prescription Medicines business, excluding generics


Biop

harm

aceuticals

An

imal H

ealth


Innovation Unit Prescription Medicines Business Unit

Outlook 2016

24 Annual Press Conference 2016

• Minor increase in net sales planned compared to previous year

• Medium-term target is a substantially stronger market position

• Strategic decisions and investment planning in 2015 form the basis for this

Financial year 2015


annual press conference 2016 · 2016-10-14 · annual press conference 2016 sound equity structure:...

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