FY2007 Consolidated Financial Overview

Transcription

1 FY2007 Consolidated Financial Overview CHUGAI PHARMACEUTICAL CO., LTD. Executive Vice President and CFO Ryuzo Kodama January 30/31, 2008

2 Forward-Looking Statements This presentation may include forward-looking statements pertaining to the business and prospects of Chugai Pharmaceutical Co., Ltd. (the Company ). These statements reflect the Company s current analysis of existing information and trends. Actual results may differ from expectations based on risks and uncertainties that may affect the Company s businesses. Note: Amounts are rounded to the nearest 0.1 billion yen. % is calculated based on amounts shown. 2

3 Financial Overview (Year on Year) Variance (%) (Billion yen) > Revenues (+5.7%) Revenues Refer to P.4-P.7 Cost of Sales > Operating Income +8.4 (+14.4%) % of Sales 40.8% 41.2% Refer to P.8 Selling & Admin. Exp > Recurring Profit +6.8 (+11.2%) 24.6% 25.1% R&D Exp > Net Income +1.7 (+4.4%) 16.7% 15.7% Operating Income % 19.3% Recurring Profit Foreign Exchange Rate Net Income 18.7% % Closing rate ( 31, 2006) Yen/US$ Yen/ Yen/ 97.44Yen/CHF Average rate (Jan. 1 31, 2007) 11.8% 11.6% Yen/US$ Yen/ Yen/ 98.13Yen/CHF 3

4 Revenues (Year on Year) <Breakdown of Revenues> Variance (%) EPOGIN +0.7 TAMIFLU Royalties and OOI* Others Revenues Sales TAMIFLU Ordinary Sales Govt. Stock etc. Total Sales excl. TAMIFLU EPOGIN (+5.7%) Others Royalties and OOI* Overseas N/A * other operating income 4

5 Sales of Top Five Products (Year on Year) Variance / / EPOGIN NEUTROGIN TAMIFLU RITUXAN SIGMART 5

6 EPOGIN Sales (Year on Year) +2.5 Market expansion 4% Impact from price cut for 1Q 7.3% -1.1 Impact from flat-sum reimbursement 10% Investment for -1.5 share retention, etc (Billion Yen) 1Q 2Q Variance (%) Others 1H Q Q H (-13.6%) FY

7 TAMIFLU: Sales Performance Fiscal Term Sales FY FY FY FY FY FY Oct.- Jan.-Mar. Apr.- Jan.-Jun. Jul.- Jan.-Jun. Jul.- Jan.-Jun. Jul.- Jan.-Jun. Jul.- Seasonal Sales Number of* Patients* (millions) 2002/ / Ordinary Seasonal Sales 2004/ / / / Ordinary Sales / Govt. Stock etc. 2006/ / Govt. Stock etc Total Sales *Total patients number of the controlled samples in the infectious Diseases Weekly Report, period between late October and mid-april, published by Japan s National Institute of Infectious Diseases. 7

8 Operating Income (Year on Year) (Billion yen) > Operating Income Increase in Product gross profit +2.6 Increase in Selling & Admin. exp Decrease in R&D exp Increase in Royalties and other operating income Milestone income for Actemra Milestone income for Bonviva Upfront income for 3 compounds licensed-out to Roche Increase in Product gross profit Increase in Royalties and OOI * +8.4(+14.4%) 66.7 Increase in NEUTROGIN etc. sales Increase in Selling & Admin. exp Increase in headcount of MR Increase in sales promotion exp. for newly launched products etc. Increase in PMS exp Decrease in R&D exp Increase in proportion of co-development effort * other operating income 8

9 Financial Overview (vs. Forecast) Revised Forecast Jul. 31 Actual Variance (%) (Billion yen) > Revenues (-0.1%) AVASTIN -4.5 Revenues HERCEPTIN -1.3 Cost of Sales % % NEUTROGIN +2.3 TAMIFLU +0.7 SIGMART +0.6 Selling & Admin Exp. R&D Exp % % % % > Operating Income +8.2 (+14.0%) Refer to P.10 > Recurring Profit (+17.7%) Operating Income % % > Net Income +6.6 (+19.7%) Recurring Profit % 19.6% Net Income % 11.6% 9

10 Operating Income (vs. Forecast) (Billion yen) > Operating Income +8.2 Gross profit Selling & Admin. exp. R&D exp Gross profit +5.0 Selling & Admin. expense +1.9 Unused exp. for newly launched products sales promotion, MRs activity exp. etc. Cost savings education exp. etc (+14.0%) R&D expense +1.3 Decrease in R&D exp. of Actemra production Revised Forecast (Jul. 31) Actual 10

11 Balance Sheet Items (Assets) Tangible fixed assets Deferred tax assets (short term) Cash and deposits Marketable securities Inventories Others > Tangible fixed assets +7.3 Solid-form drug manufacturing wing (Fujieda) Injection products building No.3 (Utunomiya) > Marketable securities Purchase of treasury stock > Inventories -6.3 Decrease in stock of TAMIFLU -3.2(-0.7%)

12 Balance Sheet Items (Liabilities) Accrued expenses +1.9 Others Accounts payable Other payables -2.2 > Accrued income taxes +9.9 > Accrued expenses +3.8 Accrued income taxes > Accounts payable Decrease in balance of TAMIFLU > Other payables -2.2 Decrease in payables for capital expenditure +2.6(+3.7%)

13 Cash Flow Statement Operating activities Investing activities Financing activities (+7.9%) Others -0.3 > Cash flow from operating activities Income before income taxes and minority interests Depreciation and amortization Decrease in inventories +6.2 Income taxes paid Decrease in notes and accounts payable > Cash flow from investing activities -7.5 Redemption of marketable and investment securities, etc Purchase of marketable and investment securities Acquisition of fixed assets > Cash flow from financing activities Increase in treasury stock Payment of dividends

14 2008 Forecast Revenues Variance Cost of Sales % % Revenues Selling & Admin. Exp. R&D Exp % % 57.5 TAMIFLU Ordinary Sales Govt. Stock etc % 17.6% Total Operating Income % % Revenues excl. TAMIFLU Recurring Profit EPOGIN Net Income 19.6% % 17.0 Others % 5.2% 14

15 Forecast vs Actual (Revenues) TAM SA products EPO Growing products -17.8(-5.2%) Others >Revenues Special factors TAMIFLU Sanofi-Aventis products EPOGIN -7.8 Growing products AVASTIN PEGASYS +7.8 COPEGUS +5.2 HERCEPTIN +5.5 ACTEMRA +4.3 TARCEVA

16 2008 Forecast vs Actual (Operating Income) Price cut, special factors > Operating income Price cut, special factors Effect of NHI price cut Growing products etc. Increase in Selling and Admin. exp. Decrease in TAMIFLU Gov. Stock etc. Return of Sanofi-Aventis products Investment of EPOGIN for share retention, etc Increase in R&D exp Growing products etc Increase in Selling and Admin. expenses -9.9 Sales promotion for newly launched products and label extensions 31.5 Actemra promotion in Europe PMS, safety measures -35.2(-52.8%) Increase in R&D expenses -3.3 Label extension for oncology products prepoc products in diabetes field 16

17 Contacts: Corporate Communications Group Tel: +81 (0) Fax: +81 (0) Masayuki Yamada, Seiji Shimada, Hiroshi Araki Investor Relations Group Tel: +81 (0) Fax: +81 (0) Mac Uchida, Kae Maeda, Tomoko Shimizu, Yusuke Tokita