Annual Press Conference Business Year 2011

Transcription

1 Business Year 2011

2 Highlights of the Business Year 2011 Andreas Barner Chairman of the Board of Managing Directors Corporate Board Division Pharma Research, Development and Medicine

3 Value through Innovation Start of a new growth phase Again significant above-market growth Above-average investments in R&D Successful market placement of trajenta for type 2 diabetes Advances in future therapeutic areas - oncology and hepatitis C Actions over generations Our goal - long-term, organic growth 3

4 Our businesses 2011 Increase in net sales and operating income In EUR Net sales Operating income 12,586 million 13,171 million 1,896 million 2,272 million Increase in operating income Return on net sales 17.3% (previous year 15.1%) % growth on a euro basis Development of R&D expenses 2,453 million +63 million 2,516 million +6.2% growth (currency-adjusted) R&D expenses in Prescription Medicines corresponds to 23.5% of its net sales 4

5 Boehringer Ingelheim on growth course Group Core products and new launches Growth in net sales Operating income increased Start of a growth phase trajenta pradaxa spiriva Strategic potential Growth in new markets Biopharmaceuticals - new biological entities and biosimilars Animal Health - focus on animal vaccines Development portfolio Significant progress with clinical development portfolio Oncology and hepatitis C Idiopathic lung fibrosis, asthma 5

6 Global market performance Growth exceeds the pharmaceutical market Global market share Growth in constant EUR (%) NOVO NORDISK 1.32% MYLAN 1.08% OTSUKA 1.22% * BOEHRINGER INGELHEIM 1.93% BRISTOL-MYERS SQB. 1.94% NOVARTIS 6.02% LILLY 2.82% MERCK & CO 4.76% ABBOTT 3.02% AMGEN 1.95% Roche 4.06% DAIICHI SANKYO + RANBAXY 1.27% BAYER SCHERING 1.90% TAKEDA 2.13% ASTRAZENECA 4.40% SANOFI 4.52% GLAXOSMITHKLINE 4.01% JOHNSON & JOHNSON 3.25% PFIZER 6.68% TEVA + RATIOPHARM 2.84% Boehringer Ingelheim Global market share: 1.93% Note: This data represents 96% of IMS Global MIDAS sales data. 6

7 Businesses and Financial Figures 2011 Hubertus von Baumbach Corporate Board Division Finance and Animal Health

8 Challenges in 2011 successfully overcome - Significant improvement in income in EUR million Change Net sales 12,586 13, % Growth +6.2% (currency-adjusted) Operating income 1,896 2, % Equity ratio 39.9% 40.0% Financial funds 6,113 7, % Solid financing Increase in liquidity 8

9 Prescription Medicines Gratifying growth Net sales in EUR million 12,586 13,171 Growth of +5.3% (currency-adjusted) 77% of Group net sales In particular due to pradaxa and spiriva Prescription Medicines 9,702 10,096 Decline in sales of sifrol after patent expiry Launch of trajenta in

10 Prescription Medicines Equal growth of newly launched and established products Net sales in EUR million, growth (currency-adjusted) 3,153 1, % +6.6% % >100 % 29.5% spiriva micardis -family combivent pradaxa sifrol /mirapex 10

11 Consumer Health Care Gratifying growth Net sales in EUR million Consumer Health Care 12,586 1,318 13,171 1,396 Growth +7.1% (currency-adjusted) 11% of Group net sales Emerging markets +16.7%

12 Consumer Health Care Strong growth of international core brands Net sales in EUR million, growth (currency-adjusted) Market position* #1 #1 #2 #3 # % +10.1% % % % buscopan dulcolax mucosolvan pharmaton bisolvon * Source: MAT 09/2011 IMS OTC Rv+ Q

13 Animal Health Successful vaccines drive growth Net sales in EUR million Animal Health 12, , Growth +7.8% (currency-adjusted) 7% of Group net sales Boehringer Ingelheim is growing faster than the market, retains 6th place Swine vaccines main growth driver

14 Animal Health Successful research network New animal vaccines give better prevention Our global research and development sites European Centre for Animal Vaccines, Hanover (Germany) St. Joseph (USA) Guadalajara (Mexico) Asian Veterinary Research and Development Centre, Shanghai (China) 14

15 Animal Health Strong growth of top 5 products Net sales in EUR million, growth (currency-adjusted) % +3.0% +32.5% +10.7% +2.7% ingelvac metacam ingelvac prrs vetmedin ingelvac mhyo circoflex 15

16 Industrial Customer Business Biopharmaceuticals main driver Net sales in EUR million Industrial Customer Business 12, , Growth +9.2% (currency-adjusted) 5% of Group net sales Biopharmaceuticals make up 74% of the Industrial Customer Business

17 Established Markets Still highly important for our business Net sales in EUR million Global 13,171 Top 3 countries 58% Top 10 countries 76% USA Japan 1,831 4,820 USA, Japan, Germany Prescription Medicines Consumer Health Care Animal Health R&D and Operations Biopharmaceuticals in USA, Germany Germany 950 Number of employees in Top 3 countries USA 10,016 Japan 2,832 Germany 12,501 17

18 Boehringer Ingelheim committed to Germany 46% of Group investments - EUR 210 million thereof EUR 156 million in Ingelheim for the expansion of pradaxa production (116 new jobs in Operations) 50% of total expenditure for R&D employees in Germany, +333 employees 18

19 Emerging markets Dynamic growth and future potential Growth in net sales in % (currency-adjusted) Russia China South America MENA +35.1% +30.2% +25.5% +19.1% Russia High net sales growth due to successful regionalisation, workforce continues to grow significantly South America Considerable net sales growth in Argentina and Colombia MENA (Middle East/North Africa) Establishment of organisation and expansion of product portfolio especially in North Africa 19

20 China Strong growth and expansion of operating activities Net sales growth > +30% essentially due to mucosolvan, micardis and spiriva Large rise in workforce to 2,701 (+31.4%) Investment in production facility at Zhangjiang High-Tech Park, Shanghai R&D - participation in global development programmes for diabetes, oncology and respiratory diseases Animal Health - Asian Veterinary Research and Development Centre, development of vaccines for Asia 20

21 Profitable growth Increase in operating income and profitability in EUR million Change Net sales 12,586 13, % Operating income 1,896 2, % Financial income % Extraordinary result Income before taxes 1,114 2, % Currency effect on net sales 1.6% Increase in R&D expenditure to EUR 2,516 million (+2.6%) extraordinary expense mainly affected by change in pension accounting (BilMoG/one-time effect) Taxes Net income 888 1, % 21

22 Cash flow from operating activities covers investing activities Cash flow in EUR million , ,056 Cash flow from operating activities EUR 514 million higher than in 2010 Cash flow from financing activities also includes withdrawals for shareholders tax payments Strong rise in financial funds on an ongoing basis 1,602 Operating activities Investing activities Financing activities Changes in financial funds* * Without changes in financial funds due to exchange rate movements 22

23 Sustainable business development over past 10 years Employees 31,843 34,221 35,529 37,406 38,428 39,800 41,300 41,534 42,224 44,094 in EUR million 2,109 2,215 2,453 2,516 1,900 1,574 R&D 1,304 1,176 1,232 1,360 13,171 12,721 12,586 expenditure 11,595 10,952 10,574 Net sales 7,580 7,382 8,157 9,535 Operating income 1, ,372 1,923 2,140 2,100 1,980 2,239 1,896 2,

24 Outlook 2012 Andreas Barner Chairman of the Board of Managing Directors Corporate Board Division Pharma Research, Development and Medicine

25 pradaxa for the prevention of stroke in patients with atrial fibrillation High medical demand Improved prevention and treatment of acute and chronic thromboembolic diseases Therapeutic breakthrough - reduced risk of stroke 25

26 trajenta for the treatment of type 2 diabetes High medical demand and excellent growth potential No dose adjustment and monitoring necessary in older patients and patients with a risk of impaired renal function First milestone in successful partnership with Eli Lilly Further potential in the diabetes development pipeline 26

27 Our Research and Development Substances in advanced clinical development Anticoagulation Dabigatran etexilate, (pradaxa ) - Treatment and secondary prevention of VTE Phase III Type 2 diabetes Empagliflozin, SGLT-2 inhibitor Oncology Afatinib, irreversible tyrosine kinase inhibitor Nintedanib, triple angiokinase inhibitor Volasertib, polo-like kinase inhibitor Hepatitis C BI201335, protease inhibitor BI207127, polymerase inhibitor Respiratory diseases Nintedanib, antifibrotic kinase inhibitor, IPF Tiotropium (LAMA) + Olodaterol (LABA), COPD Tiotropium (LAMA) monotherapy, asthma Phase III Phase III Phase III Phase II Phase III Phase II Phase III Phase III Phase III 27

28 Cooperation with basic research Investment in treatments of the future Academic partnerships Stanford University (USA) Karolinska Institutet (Sweden) Boehringer Ingelheim University Ulm Biocenter (Germany) Johannes Gutenberg-Universität Mainz (Germany) Technische Universität Dresden (Germany) Boehringer Ingelheim Venture Fund Institute of Molecular Pathology, Vienna (Austria) Institute of Molecular Biology, Mainz (Germany) 28

29 Biopharmaceuticals Biosimilars and NBE development Entire biopharmaceutical process chain covered Development service for all clinical phases - from protein scaffolds to antibodies Production of new biological entities (NBE) and biosimilars Technology platforms for contract manufacturing 29

30 Our employees Respect, trust, empathy and passion Together we create the future of Boehringer Ingelheim Special corporate culture Establishing entrepreneurial processes Safeguarding innovative capabilities Talent management Leadership development Diversity and inclusion 30

31 Outlook 2012 Guide our own R&D to success Launch of drugs in the following areas Diabetes Oncology Hepatitis C Idiopathic pulmonary fibrosis Asthma Entering new therapeutic areas pradaxa - new market launches and enhanced positioning trajenta - new market launches and enhanced positioning Establishment of oncology and hepatitis C Implement strategy Organic growth strategy Expansion of biopharmaceuticals, process development, production of biological entities Expansion of Animal Health, focus on vaccines Safeguarding sustainable independence Continuation of growth phase Forecast for sound, high single-digit growth Maintain high level of investment in R&D 31

32 Business Year 2011