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Annual Press Conference 2018 Financial year 2017
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Hubertus von Baumbach Chairman of the
Board of Managing Directors Financial year
2017
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Highly successful financial year 2017
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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
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Great benefit for patients
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Great benefit for patients
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Financial year 2017
Michael Schmelmer
Member of the Board of Managing Directors
responsible for Finance
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2017 – Highly successful year for Boehringer Ingelheim
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Annual Press Conference 2018 9
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
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High liquidity and equity safeguard independence
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Annual Press Conference 2018 11
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
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Annual Press Conference 2018 12
High liquidity and equity safeguard independence
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
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Growth in all businesses
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Annual Press Conference 2018 14
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
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Annual Press Conference 2018 15
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
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Annual Press Conference 2018 16
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
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Annual Press Conference 2018 17
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
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Annual Press Conference 2018 18
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
Annual Press Conference 2018 18
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Annual Press Conference 2018 19
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
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31% of global
workforce
39% of global R&D
expenditure
31% of total
investments
5% of total
net sales
Annual Press Conference 2018 20
Germany is third-largest market
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Brazil 0.4
billion euros
China ~0,8
billion euros
+28.1% currency-adjusted
3.4 billion euros
Strong growth in emerging markets
Annual Press Conference 2018 21
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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)
Annual Press Conference 2018 22
Strong double-digit growth in China
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Hubertus von Baumbach Chairman of the
Board of Managing Directors Further growth with
innovative approaches
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Annual Press Conference 2018 24
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
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Annual Press Conference 2018 25
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.
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New ventures – Innovative approaches in research
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Annual Press Conference 2018 27
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
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Annual Press Conference 2018 28
Animal Health: Using collective power
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Annual Press Conference 2018 29
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
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Annual Press Conference 2018 30
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
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Into the future with bits and bytes
Michael Schmelmer
Member of the Board of Managing Directors
responsible for Finance
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Annual Press Conference 2018 32
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
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Annual Press Conference 2018 33
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
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Annual Press Conference 2018 34
• 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
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Annual Press Conference 2018 35
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
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Summary and outlook
Hubertus von Baumbach Chairman of the
Board of Managing Directors
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Annual Press Conference 2018 37
2017 – Overview of most important facts
• Significant sales growth • Significantly increased operating result
and profitability • Focus on patients
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Outlook 2018 – Slight net sales growth* planned * On comparable basis
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The future of the pharmaceuticals business
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Annual Press Conference 2018 Financial year 2017