ucb inspired by patients. driven by science. · disclaimer and safe harbor 2018 3m report 2...
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UCB Inspired by patients.Driven by science.
3 months interim Report
Brussels, 25 April 2018
2018 3M reportDisclaimer and safe harbor 2
Forward-looking statementsThis presentation contains forward-looking statements, including, without limitation, statements containing the words “believes”, “anticipates”,“expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will”, and “continue” and similar expressions. These forward-looking statements are basedon current plans, estimates and beliefs of management. By their nature, such forward-looking statements are not guarantees of future performanceand are subject to known and unknown risks, uncertainties, and assumptions which might cause the actual results, financial condition, performance orachievements of UCB, or industry results, to be materially different from any future results, performance, or achievements expressed or implied bysuch forward-looking statements contained in this presentation.
Important factors that could result in such differences include but are not limited to: changes in general economic, business and competitiveconditions, the inability to obtain necessary regulatory approvals or to obtain them on acceptable terms, costs associated with research anddevelopment, changes in the prospects for products in the pipeline or under development by UCB, effects of future judicial decisions or governmentalinvestigations, product liability claims, challenges to patent protection for products or product candidates, changes in laws or regulations, exchangerate fluctuations, changes or uncertainties in tax laws or the administration of such laws and hiring and retention of its employees. There is noguarantee that new product candidates in the pipeline will progress to product approval or that new indications for existing products will be developedand approved. Products or potential products which are the subject of partnerships, joint ventures or licensing collaborations may be subject todifferences between the partners. Also, UCB or others could discover safety, side effects or manufacturing problems with its products after they aremarketed. Moreover, sales may be impacted by international and domestic trends toward managed care and health care cost containment and thereimbursement policies imposed by third-party payers as well as legislation affecting biopharmaceutical pricing and reimbursement.
Given these uncertainties, the public is cautioned not to place any undue reliance on such forward-looking statements. These forward-lookingstatements are made only as of the date of this presentation. UCB expressly disclaims any obligation to update any such forward-looking statementsin this presentation to reflect any change in its expectations with regard thereto or any change in events, conditions, for circumstances on which anysuch statement is based, unless such statement is required pursuant to applicable laws and regulations.
In the event of any differences between this Presentation and the Annual or Half Year Report, the information included in the Report shall prevail.
2018 3M reportUCB is progressing on our strategic growth path 3
1 CRL: complete response letter2 NME: New Molecular Entity
Grow core productsCimzia®, Vimpat®, Keppra®, Briviact® + Neupro®
combined net sales: € 839 billion (-2%; +8% CER)
Advance and prepare launch of next wavepadsevonil Phase 2b start
Deliver breakthrough solutionsClinical development pipeline with 13 NMEs²UCB0107 (anti-Tau antibody) first in man
Continued focusCreation of SyndesiAcquisition of Element GenomicsAgreement to acquire3 midazolam nasal spray in epilepsy
Stronggrowth
Growth expansion
Breakthrough phase
2018 financial outlook confirmed
Achievements Q1 2018 vs priorities
*3 subject to the required antitrust filing and waiting period and customary closing conditions
2018 3M reportGrow core products 4
On track to deliver FY 2018 guidance
Numbers may not add due to roundingCER: constant exchange rate
€ million 3M 2018 3M 2017 Act CER
Revenue 1 070 1 124 -5% -1%
Immunology 310 317 -2% 8%
Cimzia® 310 317 -2% 8%
Neurology 529 537 -1% 8%
Vimpat® 242 239 1% 13%
Keppra® 189 210 -10% -3%
Briviact® 27 14 98% > 100%
Neupro® 71 74 -4% 1%
Combined net sales:€ 839 million (-2%; +8% CER)
Adjusted by allergy drugdivestiture: +0%; +4% CER
2018 3M reportAdvance and prepare launch of next wave 5
The trademark Evenity™ is provisionally approved for use by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA). Evenity™ (romosozumab) is developed in partnership with Amgen globally.
Phase 3 program completedin bone loss disorders
Filing• EU (Jan. 2018)
• U.S. - Complete Response Letter (July 2017)
• Under regulatory review in Canada, Japan, Australia, Brazil and Switzerland
Evenity™(romosozumab)
Phase 2b program completed
Phase 3 • psoriasis start: Dec. 2017
(results end of 2019)
• psoriatic arthritis to start (H2 2018)
• ankylosing spondylitis to start (H2 2018)
bimekizumab
Phase 2a program completed
Phase 2b ongoing• highly drug-resistant
epilepsy start: Feb. 2018 (results H1 2020)
padsevonil
2018 3M report
Translating scientific hypotheses into clinical development6
1 APDS - Activated PI3K Delta Syndrome2 MG – myasthenia gravis
Evenity™ (romosozumab)osteoporosis
bimekizumab (IL17A/F)psoriasispsoriatic arthritisankylosing spondylitis
Phase 3 program results: end 2019
Phase 3 to start: H2 2018Phase 3 to start: H2 2018
dapirolizumab pegol (CD40L antibody)systemic lupus erythematosus Phase 2b results: Q4 2018 (Partner: Biogen)
padsevonil (PPSI)highly drug-resistant epilepsy Phase 2b results: H1 2020
seletalisib (PI3K δ inhibitor)Sjögren’s syndrome + APDS1 (Phase 1b) Phase 2a results: Q3 2018
rozanolixizumab (FcRn)immune thrombocytopenia + MG2 Phase 2a results: H2 2018
UCB4144 / VR942 - asthma (Partner: Vectura)
UCB6673 ; UCB7858 ; UCB0159
UCB3491 ; UCB0599 ; UCB0107
FilingPhase 3Phase 2Phase 1
Bone
Immunology
neurology
Evenity™ is the trade name of romosozumab which has been provisionally approved bythe U.S. Food & Drug Administration (FDA) and the European Medicines Agency (EMA).
2018 3M report
2018 2019 2020
R&D milestones
POS: partial onset seizrues, also known as focal seizures nr axSpA: non-radiographic axial spondyloarthritisSLE: Systemic Lupus ErythematosusPGTCS: Primary generalized tonic-clonic seizures
7
Cimzia®
rheumatoid arthritisfiling
(China)
dapirolizumab pegolSLE
Phase 2b results
Vimpat®
epilepsy PGTCS –adj. therapy
Phase 3 results
Cimzia®
psoriasis / psoriatic arthritis - Phase 3
results (Japan)
rozanolixizumabmyasthenia gravisPhase 2a results
padsevonilhigh drug resistant
epilepsyPhase 2b start
Cimzia®
psoriasisregulatory feedback
(U.S. / EU)
bimekizumab psoriasis
Phase 3 results
padsevonilhigh drug resistant
epilepsyPhase 2b results
seletalisibSjögren’s syndrome
Phase 2a results
Cimzia®
CRIB & CRADLE label extension
(EU)
romosozumabosteoporosis in
post-menopausal women
Filing (EU)
bimekizumab psoriatic athritisPhase 3 start
bimekizumab ankylosing spondylitis
Phase 3 start
Vimpat®
epilepsy POS –pediatric
Filing (Japan)
neurology
immunologybone
Cimzia®
CRIB & CRADLE label extension
(U.S.)
UCB0107Phase 1 start
Cimzia®
nr axSpAPhase 3 results
(U.S.)
rozanolixizumabITP
Phase 2a results
2018 3M reportContinued focus 8
internal & external opportunities
* subject to the required antitrust filing and waiting period and customary closing conditions
• Xyzal OTC (U.S.) - 2017
• 3 cardiovascular products - 2016
• nitrate business - 2016
• Shannon manufacturing site (Ireland) - 2016
• venlafaxine ER – 2016
• established brands (India) – 2015
•
- 2015
Divestitures Acquisitions & spin offs
Agreement to acquire* midazolam
nasal spray (USL261)in epilepsy
2018 3M report2018 financial outlook and midterm guidance 9
Maximize (new) growth drivers and strengthen sustainability
rEBITDA: recurring Earnings Before Interest, Taxes, Depreciation and Amortization charge* ~188 million shares weighted average outstanding
2018 financial targets Guidance target 2021 and beyond
Revenue € 4.5 - 4.6 billion• Continued strong core product growth• One-time effects in 2017• Weak US$
rEBITDA / revenue ratio of 31% in 2021UCB investing into the pipeline complemented with inorganic growth opportunities
rEBITDA € 1.3 – 1.4 billion• R&D expense ratio of ~26% (+/-1% point)• Launch preparation
Updated peak sales guidanceBriviact® > € 600 million in 2026
Core EPS* € 4.30 – 4.70• Expected underlying tax ratio
in the "low twenties"
2018 3M reportUCB's patient value strategy 10
Our ambition is to be the patient preferred biotech leader,
creating patient value for specific populations through unique outcomes, the best experience
and improving as many of these lives as possible.
This will lead to sustainable growthfor UCB and its shareholders.
Value for patients
Mariana, living with epilepsy
Value for shareholders
2018 3M report
UCB's strategic growth pathTrue differentiation drives leadership and sustainability
Strong growth
Growth expansion
Breakthroughphase
11
Further factsand figures
12
2018 3M report 13Strong Cimzia® performance across all regions
1 Numbers may not add due to rounding 2 WOCBA/ women of child bearing ageCER: constant exchange rates 3 nr axSpA: non-radiographic axial spondyloarthritis
Label extension to include WOCBA2
(EU & U.S.) Rheumatoid arthritis: filing (China)• Psoriasis: potential approval (U.S. & EU)• Nr axSpA³: Phase 3 results (U.S.)• Psoriasis / psoriatic arthritis: Phase 3 results (Japan)
• Net sales to reach≥ € 1.5 billion
• Loss of exclusivity (U.S. & EU)
• Loss of exclusivity(Japan)
2018 2020 2024 2026
For patients living with• Rheumatoid arthritis• Psoriatic arthritis• Ankylosing spondylitis /
axial spondyloarthritis• Crohn’s disease
Net sales1
€ million 3M 2018 3M 2017 Act CER
U.S. 180 200 -10% 4%
Europe 92 84 10% 11%
International markets 38 34 12% 24%
Total Cimzia® 310 317 -2% 8%
2018 3M reportCimzia® in-market performance 14
1 In-market growth is calculated for MAT period ; US : MAT Jan 2018 vs MAT Jan 2017; Europe & Japan : MAT Feb 2018 vs MAT Feb 20172 Market share is calculated for R3M period
6.3%
5.0%
5.5%
6.0%
6.5%
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18
Cimzia® RheumatologyR3M Patient Share 2
-0.1%
3.9%
8.8%
-2%
0%
2%
4%
6%
8%
10%
Anti TNF Biologics Cimzia®
Cimzia® vs. Rheumatology Market Growth 1
U.S.
+8.9%
+0.5%
Source: U.S: IQVIA Source of Business Report January 2018
4.4%6.9%
16.3%
0%
5%
10%
15%
20%
Anti TNF Biologics Cimzia®
Cimzia® vs. RA Market Growth 1
10.1%12.3%
7.3%
0%
5%
10%
15%
20%
Anti TNF Biologics Cimzia®
Cimzia® vs. RheumatologyMarket Growth 1
Europe Japan
8.3%
7.0%
7.5%
8.0%
8.5%
9.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Cimzia® RheumatologyR3M Patient Share 2
-0.3%
Source: IMS MIDASIn-Market KPI’s are based on Exit Patients
+11.9%
4.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Cimzia® RA R3M Patient Share 2
+0.5%
Source: IMS MIDAS; Cimzia® patients are considered 100% in RAIn-Market KPI’s are based on Exit Patients
-2.8%
2018 3M report 15Vimpat®
1 Numbers may not add due to rounding 2 POS: Partial-onset seizures, also known as focal seizuresCER: constant exchange rate 3 PGTCS: Primary Generalized Tonic-Clonic Seizures
• PGTCS3: Phase 3 results
• Net sales to reach≥ € 1.2 billion
• Patent expiry (U.S. & EU)
• Loss of exclusivity(Japan)
2019 2020 20242022
For patients living with epilepsy (partial onset seizures)• Adults, adolescents and
children from 4 years of age (EU & U.S.)
• Adults (Japan)• Adjunctive or monotherapy
Net sales1
2018
POS2: pediatric filing (Japan)
€ million 3M 2018 3M 2017 Act CER
U.S. 177 186 -5% 10%
Europe 48 40 22% 22%
International markets 16 13 22% 35%
Total Vimpat® 242 239 1% 13%
2018 3M report
3.6%
2.8%
3.0%
3.2%
3.4%
3.6%
3.8%
Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18
Vimpat® – R3M TDx Share4.3%
3.5%
3.7%
3.9%
4.1%
4.3%
4.5%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Vimpat® – R3M TRx Share
0.9%
8.6%
0%
5%
10%
15%
20%
AED Market Vimpat®
Vimpat® vs. AED Market Growth (TRx)
4.8%
0%
5%
10%
15%
20%
AED Market Vimpat®
Vimpat® vs. AED Market Growth (TDx)
1.2%
18.0%
0%
5%
10%
15%
20%
AED Market Vimpat®
Vimpat® vs. AED Market Growth (TDx)
Vimpat® in-market performance 16
AED market: All molecules in ATC3= N3A + Phenobarbital in N5B. In Europe and Japan, the TDx of all these molecules are factored for epilepsy usage. In the U.S., the TRx of 26 of these molecules are factored for epilepsy usage.
U.S.
+7.7%
+0.3%
Europe Japan
Source data U.S.: U.S. IMS NPA - In-Market KPIs are based on TRx
+16.8%
+0.6%
Source data EU: IMS MIDAS - In-Market KPI’s are based on TDx
Numbers to be populated when sufficient data is
available
1.5%
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%
Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18
Vimpat® – R3M TDx Share
Source data JP: IMS MIDAS - In-market KPI’s are based on TDx
+1.2%
2018 3M report 17Keppra®
1 Numbers may not add due to rounding 2 POS: Partial-onset seizures, also known as focal seizuresCER: constant exchange rate 3 PGTCS: Primary Generalized Tonic-Clonic Seizures
• Patent expiry(Japan)
2020
For patients living with• epilepsy - POS2
• epilepsy - PGTCS3
• epilepsy - myoclonic seizures
Net sales1
€ million 3M 2018 3M 2017 Act CER
U.S. 36 52 -31% -20%
Europe 56 61 -8% -7%
International markets 96 96 0% 9%
Total Keppra® 189 210 -10% -3%
• Patent expiry(U.S.)
2008
• Patent expiry(EU)
2010
2018 3M report
0.7%0.0%
0.5%
1.0%
1.5%
2.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Keppra® – R3M TRx Share12.5%
11.0%
11.5%
12.0%
12.5%
13.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Keppra® – R3M TDx Share
4.8%
27.6%
0%
10%
20%
30%
40%
AED Market Keppra®
Keppra® vs. AED Market Growth (TDx)
1.6%
2.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
AED Market Keppra®
Keppra® vs. AED Market Growth (TDx)
0.7%
-13.0%-15.0%
-10.0%
-5.0%
0.0%
5.0%
AED Market Keppra®
Keppra® vs. AED Market Growth (TRx)
15.9%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Keppra® – R3M TDx Share
Keppra® in-market performance 18
AED market: All molecules in ATC3= N3A + Phenobarbital in N5B. In Europe, the TDx of all these molecules are factored for epilepsy usage. In the U.S., the TRx of 26 of these molecules are factored for epilepsy usage. For U.S., Keppra® includes Keppra® XR. For EU, Keppra® does not include UCB levetiracetam.
U.S.
-13.7%
-0.1%
Europe Japan
Source data U.S.: U.S. IMS NPA - In-market KPI’s are based on TRx
+0.3%
+0.02%
Source data EU: IMS MIDAS - In-market KPI’s are based on TDx
+22.8%
Source data JP: IMS MIDAS - In-market KPI’s are based on TDx
+2.1%
2018 3M report 19Briviact®
1 Numbers may not add due to rounding CER: constant exchange rate
• Epilepsy POS2
Phase 3 results (Japan)
2020
For patients living with epilepsy (partial onset seizures)
• adjunctive therapy (EU & U.S.)• monotherapy (U.S.)
Net sales1
• Patent expiry (U.S. & EU)
• Net sales to reach≥ € 600 million
2026
€ million 3M 2018 3M 2017 Act CER
U.S. 21 11 93% > 100%
Europe 6 3 > 100% > 100%
International markets 0 0 > 100% > 100%
Total Briviact® 27 14 98% > 100%
• Pediatric: potential approval (U.S. & EU)
2018
2018 3M reportBriviact® in-market performance 20
A new therapeutic option in the AED market
AED market: All molecules in ATC3= N3A + Phenobarbital in N5B. In EU, the TDx of all these molecules are factored for epilepsy usage. In the U.S., the TRx of 26 of these molecules are factored for epilepsy usage.
U.S. Europe
Source data U.S.: U.S. IMS NPAIn-Market KPIs are based on TRx
Source data EU: IMS MIDASIn-Market KPI’s are based on TDx
0.27%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Briviact® – R3M TRx Share
0.67%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18
Briviact® – R3M TDx Share
2018 3M report 21Neupro®
1 Numbers may not add due to rounding CER: constant exchange rate
• Net sales to reach≥ € 400 million
2020
For patients living with• Parkinson’s disease• restless legs syndrome
Net sales1
• Patent expiry (Japan)
2024
• Patent expiry (U.S. & EU)
2021
€ million 3M 2018 3M 2017 Act CER
U.S. 21 24 -10% 4%
Europe 43 39 10% 10%
International markets 7 11 -40% -34%
Total Neupro® 71 74 -4% 1%
2018 3M report
31.7%
25%
27%
29%
31%
33%
35%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Neupro® PD – R3M TDx Share
6.4%
6.0%
6.2%
6.4%
6.6%
6.8%
7.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Neupro® PD – R3M TRx Share
8.5%
14.3%
7.4%
0%2%4%6%8%
10%12%14%16%
PD Market PD KeyCompetitors
Neupro®
Neupro® PD vs. PD (KC) Market Growth (TDx)
15.9%
15.0%
15.2%
15.4%
15.6%
15.8%
16.0%
Feb-17 May-17 Aug-17 Nov-17 Feb-18
Neupro® PD – R3M TDx Share
-0.4% -3.3%
-4%-2%0%2%4%6%8%
10%
PD Market PD KeyCompetitors
Neupro®
Neupro® PD vs. PD (KC) Market Growth (TDx)
-0.9% -0.9% -1.7%-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
PD Market PD KeyCompetitors
Neupro®
Neupro® PD vs. PD (KC) Market Growth (TRx)
Neupro® in-market performance 22
PD market: All molecules in ATC3= N4A. In the Europe and Japan, the TDx of all these molecules are factored for PD usage. In the U.S., only the TRx of Rotigotine, Pramipexole and Ropinirole are factored for PD usagePD Key Competitors (KC) market: The 8 DA’s (Dopamine Antagonists): Bromocriptine, Cabergoline, Lisuride, Pergolide, Rotigotine, Pramipexole, Piribedil, Ropinirole. In the US, only Rotigotine, Pramipexole and Ropinirole are factored for PD usage, hence the PD market and PD KC market are the same.
U.S.
-0.8%
-0.1%
Europe* Japan
Source data U.S.: U.S. IMS NPA - In-market KPI’s are based on TRx
-6.9%
+0.04%
Source data EU: IMS MIDAS - In-market KPI’s are based on TDx* Europe: factors have been updated & restated to 2017
+13.8%
+5.1%
Source data JP: IMS MIDAS - In-market KPI’s are based on TDx
2018 3M reportEvenity™ (romosozumab) 23
An innovative investigational bone-forming therapy
STRUCTURE, FRAME, BRIDGE and ARCH• Phase 3 studies completed
Opportunity to build new bone and slow bone loss in osteoporosis patients at imminent risk of fragility fractures
Dual effect on bone - increases bone formation and decreases bone resorption
Under regulatory review in the U.S., Canada, Japan, Australia, Braziland EU, Switzerland
• Complete Response Letter in the U.S. (July 2017)
Manorama, living with osteoporosis
*The trademark EVENITY™ is provisionally approved for use by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA).EVENITY™ (romosozumab) is developed in partnership with Amgen globally.
2018 3M report
Translating scientific hypotheses into clinical differentiation24
Dual blockade of IL-17F and IL-17A by bimekizumab
Dual blockade of IL-17F on top of IL-17A
will improve therapeutic efficacy versus targeting IL-17A alone
IL-17F
IL-17RAIL-17RC
IL-17A
Bimekizumab specifically and completely blocks IL-17F and IL-17A
IL-17F and IL-17A are twin cytokines
driving joint and skin inflammation
2018 3M report
• 250 patients living with chronic plaque psoriasis1
• 48 weeks
• placebo
• PASI90* response@ week 12
Psoriasis(NCT02905006)
Phase 2b results July 2017
Bimekizumab current development program 25
First monoclonal antibody neutralizing IL-17F on top of IL-17A
1 moderate to severe chonic plaque psoriasis* Defined as a patient who achieves 90% reduction from baseline in the PASI scoreSource: www.clinicaltrial.gov
Duration
Comparator
Endpoint
Results
• 303 patients living with ankylosing spondylitis
• 48 weeks
• placebo
• ASAS40 response @ week 12
Ankylosing spondylitis(NCT02963506)
Phase 2b results Dec 2017
• 206 patients living with active psoriatic arthritis
• 48 weeks
• placebo
• ACR50 response @ week 12
Psoriatic arthritis(NCT02969525)
Phase 2b results Dec 2017
All 3 studies in mixed population of anti-TNF-naïve and anti-TNF-incomplete responder patients
2018 3M reportNext: Phase 3 programs for clinical differentiation 26
Robust Phase 2b studies in 3 related indications
• All 3 studies met primary and secondary endpoints
• Rapid and profound clinical efficacy on relevant endpoints
• Both for joints and for skin
• Consistent across the three 12-week, mixed population, Phase 2b studies
• With a favorable safety profile
Data support initiation of Phase 3 program
for clinical differentiation in all 3 indications
2018 3M reportUCB FY 2017 financial highlights 27
Core product growth drive top and bottom line
CER: constant exchange rateOne-time other revenue of € 56 million for out-licensing the OTC-allergy drug Xyzal® (levoceterizine)
CER
+11%
+34%+33%
Actual
Revenue• Net sales up by 9% (+11% CER) to € 4.2 billion
driven by core products (€ 3.6 billion; +13%)
€ 4 530 million
Total operating expenses • Overall operating expense ratio improved to 48%• R&D expense +4%
€ 2 200 million
Recurring EBITDA • Higher gross profit • Improved operating expenses ratio
€ 1 375 million
Profit of the Group• € 753 million attributable to UCB shareholders (+45%)
€ 771 million
Core earnings per share Based on 188 million weighted average shares outstanding (2016: 188 million)
€ 4.82
+9%
+42%
+51% +52%
+2% +4%
+43%
2018 3M reportStrong net sales growth from core products 28
Generating € 3.6 billion (+13%)
CER = constant currency exchange rates* Excluding € 28 million from hedging ** adjusted for venlafaxine ER divestiture (net sales of €89m in 2016)
Cimzia® € 1.42 bn +9% (+11% CER)• Sustainable performance
Vimpat® € 0.98 bn +19% (+21% CER)• Strong, sustainable growth in all markets
Keppra® € 0.78 bn +8% (+11% CER)• Strong growth in international markets, especially in Japan
Briviact® € 87 million > +100%• Launched in EU countries and North America
Neupro® € 314 million +5% (+7% CER)• Sustainable growth in all geographies
Established brands -16% (-15% CER)• High value divestitures to increase focus and enhance strategic flexibility – adjusted** -3%
2017 FY net sales*€ 4 154 million
2018 3M report 2930% rEBITDA target for 2018 - already reached in 2017Top line growth, efficient resources allocation and tight cost control lead to improved ratios*
69% 69% 70% 71%74%
2013 2014 2015 2016 2017
60% 57% 55% 52%48%
2013 2014 2015 2016 2017
* vs. revenue
Gross margin / revenue Operating expense / revenue
17% 18%21%
24.9%
30.3%
2013 2014 2015 2016 2017
Recurring EBITDA / revenue
30% target for 2018
2018 3M reportSolid, sustainable top and bottom line growth 30
Strong foundation enabling future growth and investment in innovation
3.14 3.34 3.88
4.15 4.53
2013 2014 2015 2016 2017
€ bi
llion
0.54 0.61
0.82
1.03
1.38
2013 2014 2015 2016 2017
€ bi
llion
Recurring EBITDARevenue
2018 3M report2017 financial targets achieved 31
30.3 % rEBITDA margin – one year ahead of guidance
rEBITDA: recurring Earnings Before Interest, Taxes, Depreciation and Amortization charge* Based on 188 million shares
Revenue € 4.4 - 4.5 billion € 4.53 billion (+9%)
rEBITDA € 1.25 – 1.35 billion€ 1.38 billion (+33%)
Core EPS* € 4.10 – 4.50€ 4.82 (+51%)
Net debt / rEBITDA = 1:1 by 20180.8 in 2016; 0.4 in 2017
rEBITDA / revenue ratio 30% in 201830.3% in 2017
'CVN' net sales ≥ € 3.1 billion by 2020€ 2.7 billion in 2017 (+12%)
Briviact® net sales ≥ € 450 million by 2026€ 87 million (+>100%) in 2017
2017 financial targets vs. 2017 achievements
Mid-term financial targets vs. 2017 achievements
2018 3M reportRecurring EBITDA 32
Solid growth - Improved operating expenses ratio
Restated after reclassification due to IFRS 15 EBIT: Earnings before interest and taxesCER: constant exchange rate EBITDA: Earning before interests, taxes, depreciation and amortization charges
2018 3M report2017 profit 33
CER: constant exchange rateEBIT: Earnings before interest and taxes
2018 3M reportCore earnings per share 34
Strong growth of core net profit
2018 3M report
Numbers may not add due to roundingCER: constant exchange rate
2017 key product net sales performance 35
2018 3M reportStrong Cash Flows 36
"Net debt/rEBITDA ratio of 1:1" achieved ahead of time in 2016
CAGR: composite annual growth rate* KU rEBITDA prior to KU divestment added back
Cash flow from continuing operations Net debt & recurring EBITDA ratio
€ m
illion
267
537
204
726
896
2013 2014 2015 2016 2017
3.06*
2.13*
KremersUrban
divestiture
nitrates, venlafaxine ER
divestiture
2018 3M reportOne UCB today: A global player 37
Presence in 38 countries complemented by a robust network of partners
Situation at 31 December 2017
7 478employees
globally
2018 3M report 38Stable shareholder base with free-float of 62%Weighted average shares outstanding in 2017: 188 million
“Free float” investors by region
Source: Notifications and UCB underlying ownership analysis, March 2018
2018 3M report 39
ן Antje Witte, Vice President Investor Relations• Phone: +32 2 559 9414• E-mail: [email protected]
ן Isabelle Ghellynck, Director Investor Relations• Phone: +32 2 559 9588• E-mail: [email protected]
ן Nathalie Deldime, Investor Relations Manager• Phone: +32 2 559 9291• E-mail: [email protected]
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Your UCB Investor Relations team