annual press conference 2018 · *in collaboration with eli lilly and company 12.6 annual press...

Annual Press Conference 2018 Financial year 2017

Hubertus von Baumbach Chairman of the

Board of Managing Directors Financial year

2017

Highly successful financial year 2017

Annual Press Conference 2018 4

Major success with human pharmaceuticals

spiriva®

3.19 billion USD

jardiance®*

1.14 billion USD

pradaxa®

1.62 billion USD

ofev®

1.03 billion USD

*in collaboration with Eli Lilly and Company

med

1.51 billion USD

trajenta® / jentadueto® * Med

1.13 billion USD

micardis® medicines

Great benefit for patients

Financial year 2017

Michael Schmelmer

Member of the Board of Managing Directors

responsible for Finance

2017 – Highly successful year for Boehringer Ingelheim


2017 – Highly successful year for Boehringer Ingelheim

Net sales:

18.1 billion euros

+ 15.7%*

Return of sales:

19.3% +1.2 percentage points

Operating income:

3.5 billion euros

+ 21%

R&D expenditure:

3.1 billion euros

-1.1% Group profit

-0.2 billion euros

(-2.1 billion euros)

*currency-adjusted

High liquidity and equity safeguard independence



• Financial funds of EUR 8.1 billion safeguard independence and financial mobility

• Cash flow from operating activities once again exceeds investments in tangible and intangible assets significantly

12.0

8.1

+2.6 -5.1

-1.2

2017

Cash flow from operating activities

Cash flow from investing

activities

Cash flow from financing activities

2016

in billion euros and rounded Financial

funds Financial

funds



Total assets: EUR 28.4 billion

Sound equity structure: • Equity of EUR 10.7 billion

equivalent to equity ratio of 37.7%

• Tangible and intangible assets covered completely by equity

Assets Liabilities & Equity

Intangible assets

Tangible assets

Other assets

Equity

Pension provisions

Other liabilities

Growth in all businesses


Growth in all businesses

3.9

0.7

0.9 Discontinued operations and others

Sales growth of businesses

(currency-adjusted):

• Human pharmaceuticals (HP): + 6.9%

• Animal Health (AH): +170.7%

• Biopharmaceutical contract manufacturing (BIO): + 10.7%

• Discontinued operations and others - 50.8%

in EUR billion

BIO

HP AH

12.6


Human pharmaceuticals: Sales performance exceeds expectations

in EUR billion

HP

• 70% of group net sales • +6.9% (currency-adjusted) compared with the

previous year • Net sales of important products – growth currency-adjusted

• spiriva® EUR 2.8bn (-3.9%) • pradaxa® EUR 1.4bn (+5.2%) • trajenta®/jentadueto®* EUR 1.3bn (+20.5%) • jardiance®* EUR 1.01bn (+135.7%) • ofev® EUR 0.92bn (+52.3%) *in collaboration with Eli Lilly and Company

12.6


Animal Health: Strong growth in net sales through transaction

in EUR billion

AH

• 22% of group net sales • +170.7% (currency-adjusted) compared with

previous year

• Net sales of important products – growth currency-adjusted

• nexgard® EUR 546m

• frontline® EUR 381m

• ingelvac circoflex® EUR 302m (+7.0%)

• heartgard® EUR 284m

3.9


Biopharmaceutical contract manufacturing: Increase in net sales

in EUR billion

• 4% of group net sales • +10.7% (currency-adjusted) compared with

previous year

• Main activities: contract manufacturing for Boehringer Ingelheim and external customers

• One-stop-shop: from cell line development to drug product

• Global supply of biopharmaceutical medications for clinical studies, launch and market

BIO 0.7


Asia/ Australia/Africa

4.2 billion euros

+4.7%

Americas

8.1 billion euros

+31.0%

Europe

5.7 billion euros

+6.3%

Net sales development currency-adjusted

Growth in all regions



USA is the most important sales market

• USA largest market for all core businesses • Around 8,000 employees at 14 facilities • USD 217 million investment in

biopharmaceutical production in Fremont • Expansion of production capacity for animal

vaccines at two facilities planned • Good development of human pharmaceuticals

business in an intensely changed market • USA important R&D site for human

pharmaceuticals and animal health

6.9 billion euros

net sales

8,000 employees

31% of global

workforce

39% of global R&D

expenditure

31% of total

investments

5% of total

net sales


Germany is third-largest market

Brazil 0.4

billion euros

China ~0,8

billion euros

+28.1% currency-adjusted

3.4 billion euros

Strong growth in emerging markets


Very dynamic market

2017:

+43%

net sales growth (currency-adjusted)

Around

3,600

employees at 5 sites and in 15 offices

Planned investments:

150 Million euros

(over the past 20 years: investments of more than 200 million euros)


Strong double-digit growth in China


Board of Managing Directors Further growth with

innovative approaches


Improving the treatment of stroke patients

• Support for stroke centers in preparation for acute care under the „Angels Initiative“

• By May 2019, 1,500 centers planned in Europe alone

• Cooperation with national and international stroke organisations


Improving the treatment of stroke patients

• Opening of rehabilitation facility for stroke patients in Shanghai, China; a second centre is planned for Portugal by 2020

Our objective:

Establishing the high standard of care comparable to that of German stroke rehabilitation in selected centres.

New ventures – Innovative approaches in research


New ventures – Innovative approaches in research

• Investment of some 2.5 billion euros in R&D for Human Pharmaceuticals every year

• Well-filled pipeline with 80 development projects

• 2017: Record year for first use by patients - 13 new active ingredients in all five therapeutic areas

• 65 per cent of pipeline projects have potential for therapeutic breakthrough or to be first in class


Animal Health: Using collective power


Rabies: Vaccination of animals saves lives

• 59,000 people die of rabies every year • 95 per cent of these deaths occur in Africa

and Asia • Prevention through vaccination, primarily

of dogs and cats • In cooperation with other companies,

universities and local authorities


Vaccinations against foot-and-mouth disease

• Foot-and-mouth disease is a highly infectious disease spreading quickly through infected animals with high mortality rate

• Joint Venture with Chinese partner for research, development and production of vaccination against foot-and-mouth disease

• Investment of more than 100 million euros

Into the future with bits and bytes

Michael Schmelmer

Member of the Board of Managing Directors

responsible for Finance


Digital transformation at Boehringer Ingelheim

Investment in start-ups (digital acquisitions)

BI Digital Health Venture Fund

Transformation of the core

(within business units)

Research & Development

Medicine

Patients

Digital disruption (Business units and BI X)

Business units

BI X

Business strategy


Open collaboration approaches in research

• Open cooperation on selected substances according to the principle: learning by sharing

• 20 molecules available for free use to scientists on web portal www.opnMe.com and 2 molecules on exclusive cooperation basis

• More than 350 enquiries for the free molecules since launch of portal


• Important goal to improve diagnostics in rare diseases

• Smart stethoscope analyses lung sounds and helps in the early diagnosis of pulmonary diseases

• Artificial intelligence helps to evaluate computer tomographic images of the lung

Our objective:

Supporting patients and physicians with digital projects.

Digital projects for patients and physicians


Digital innovation in animal health

• App “PetPro Connect” enables direct digital connection between pet owners and veterinarians

• Easy redemption of rebates • Access to different online services

provided by veterinarians • Patient details of pets soon to be

available on smartphone • First users are testing the app in the

USA

Summary and outlook


Board of Managing Directors


2017 – Overview of most important facts

• Significant sales growth • Significantly increased operating result

and profitability • Focus on patients

Outlook 2018 – Slight net sales growth* planned * On comparable basis

The future of the pharmaceuticals business

Annual Press Conference 2018 Financial year 2017

annual press conference 2018 · *in collaboration with eli lilly and company 12.6 annual press...

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