Merrill Lynch Pharmaceutical, Biotechnology & Medical Device Conference New York, February 4, 2004
Disclaimer 2 This presentation contains forward-looking statements, i.e., current estimates or expectations of future events or future results. The forward-looking statements appearing in this presentation include market sales projections for Pantoprazole, estimates for the achievement of certain milestones in the development, including the filing for marketing approvals, of ALTANA s pharmaceuticals Alvesco and Daxas as well as revenue and earnings projections for the ALTANA group and its branches. These statements are based on beliefs of ALTANA s management as well as assumptions made by and information currently available to ALTANA. Many factors that ALTANA is unable to predict with accuracy could cause ALTANA s actual results, performance or achievements to be materially different from those that may be expressed or implied by such forward-looking statements. These factors include the future development of currency exchange rates as well as ALTANA s ability to develop and launch new and innovative pharmaceutical and chemical products, price regulations for pharmaceuticals and budgeting decisions of local governments and health care providers, the level of ALTANA s investment in pharmaceuticals related R&D, the sales and marketing methods used by ALTANA to distribute its pharmaceuticals, the composition of ALTANA s pharmaceuticals portfolio, ALTANA s ability to maintain close ties with its chemicals customers, the business cycles experienced by ALTANA s chemicals customers and the prices of the raw materials used in ALTANA s chemicals business. Forward-looking statements speak only as of the date they are made. ALTANA does not intend, and does not assume any obligation, to update forward-looking statements to reflect facts, circumstances or events that have occurred or changed after such statements have been made.
ALTANA 3 ALTANA AG Bad Homburg, Germany Founded 1977 10,400 employees >30 countries ALT (FSE), AAA (NYSE) 49.9% Freefloat ALTANA Pharma AG ALTANA Chemie AG An international Pharmaceuticals and Specialty Chemicals group
Highlights 2003 4 ALTANA Group: New record year Sales climb to 2.7 bn (+5%), operating +12% EBT to grow by around 10% ALTANA Pharma Double-digit increase in core business Therapeutics Pantoprazole continues to drive growth ALTANA Chemie Robust performance in weak markets Profitability remains on high level 2003: Provisional data, unaudited
ALTANA Group Key Figures 5 ( m) 2003 2002 % Sales 2,734 2,609 5 operating sales growth 12 Capital expenditure 1 237 225 5 Research expenditure 412 369 12 Employees 10,386 9,853 5 USA: 28% Germany: 17% Long-term growth trend continues 2003: Provisional data, unaudited 1) Capital expenditure on property, plant and equipment and intangible assets
Sales Analysis 2003 6 m 2,609 Operating Growth +12% Currency Effect -6% Acquis./Divest. Effect -1% m 2,734 748 +299-161 -13 755 Group + 5% ALTANA Pharma + 6% ALTANA Chemie + 1% 1,861 1,979 2002 2003 2003: Provisional data, unaudited
ALTANA Group Sales by Region 7 ( m) 2003 2002 % Europe 1,385 1,324 5 thereof Germany 481 490-2 9% 7% 2% North America 857 779 10 thereof USA 755 683 11 Latin America 248 277-11 USA 28% Germany 18% 51% Asia 197 181 9 31% Other Regions 47 48-2 ALTANA 2,734 2,609 5 82% international business 2003: Provisional data, unaudited
ALTANA 8 ALTANA AG ALTANA Pharma AG ALTANA Chemie AG
ALTANA Pharma Strategy 9 Focus on innovative therapeutics Focus on relevant markets - Europe, USA, Japan - Strategic partnering is key Focus on well-defined, selected R&D areas - Gastrointestinal, Respiratory, Oncological Diseases - High R&D investment and internationalization of R&D Concentrate efforts in products, markets, R&D
ALTANA Pharma Highlights 2003 10 Impressive operating sales growth Pantoprazole: excellent dynamic growth and market share gains Extension of Pantoprazole patent in the USA until July 2010 Co-promotion of Protonix in the USA since July 2003 Excellent Daxas (Roflumilast) results from RECORD study Alvesco (Ciclesonide) FDA-Submission in December 2003 New production plant in Ireland New medical chemistry labs in India
ALTANA Pharma Key Figures 11 ( m) 2003 2002 % Sales 1,979 1,861 6 operating sales growth 15 Capital expenditure 1 140 147-4 Research expenditure 375 335 12 Germany: 17% Employees 7,702 7,504 3 Steady growth continued 2003: Provisional data, unaudited 1) Capital expenditure on property, plant and equipment and intangible assets
ALTANA Pharma Sales by Region 12 ( m) 2003 2002 % Europe 972 932 4 thereof Germany 375 390-4 11% 3% North America 732 633 16 thereof USA 639 547 17 Latin America 213 236-10 Other Regions 62 60 3 37% USA: 32% Germany: 19% 49% ALTANA Pharma 1,979 1,861 6 German sales affected by mandatory rebate 2003: Provisional data, unaudited
ALTANA Pharma Sales by Business Unit 13 ( m) 2003 2002 % Therapeutics 1,725 1,565 10 OTC 104 110-5 Imaging 105 100 6 Other 45 86-48 Total 1,979 1,861 6 5% 5% 3% 87% Further expansion of strategic core business 2003: Provisional data, unaudited
Gastrointestinal Franchise 14 Pantoprazole (PANTOZOL, Protonix ) (PPI launched in more than 90 countries) Soraprazan (Acid Pump Antagonist in Phase IIb)
Pantoprazole WW Total Market Sales 2,350 + 17% 15 ( m) 2,000 2,007 1,500 1,326 1,000 500 0 180 280 650 369 8 40 93 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Sustained growth dynamics 2003: Provisional data, unaudited
Pantoprazole WW Sales by Region 2003 16 1,400 + 17% Total market sales: 1,200 1,000 + 17 % 2003: 2,350 m 2002: 2,007 m 800 ( m) 600 400 + 28% 200 + 6% + 19% -12% + 8% 0 Germany Europe w/o Germany USA Canada Latin America Other Regions 2002 182 435 1,137 110 52 91 2003 193 557 1,325 131 46 98 2003: Provisional data, unaudited
Pantoprazole USA (Protonix ) New Record Market Shares 17 NRx (share %) TRx (share %) Dec 06, 02 Jan 16, 04 Dec 06, 02 Jan 16, 04 Protonix 16.7 21.5 15.3 20.4 Aciphex 9.1 9.8 9.2 9.7 Prevacid 30.1 28.5 30.2 28.7 Prilosec 20.5 3.3 24.0 3.7 Ome Gen 0.0 9.4 0.0 10.2 Nexium 23.6 27.4 21.3 27.2 AstraZeneca 44.0 30.8 45.3 31.0 Protonix is the clear winner of market shares and absolute prescriptions Source: IMS Health
Pantoprazole USA (Protonix ) TRx Development 35% 30% 25% 20% 15% 10% 5% 0% Source: IMS Health Protonix Prilosec Ome Gx Prevacid Aciphex Nexium 18 10/4/02 11/4/02 12/4/02 1/4/03 2/4/03 3/4/03 4/4/03 5/4/03 6/4/03 7/4/03 8/4/03 9/4/03 10/4/03 11/4/03 12/4/03 1/4/04 Market entry of Generic Omeprazole Market entry of OTC Omeprazole
Pantoprazole USA (Protonix ) PPI Prescription Volume 19 2000 Total Prescriptions (x1000) 1800 1600 1400 1200 1000 800 600 400 Protonix + 44% Aciphex + 11% Prevacid - 1% Nexium + 39% 200 0 Total Ome 42% 18/10/02 18/11/02 18/12/02 18/1/03 18/2/03 18/3/03 18/4/03 18/5/03 18/6/03 18/7/03 18/8/03 18/9/03 18/10/03 18/11/03 18/12/03 18/1/04 Prilosec 84% Prilosec Ome Gx Nexium Prevacid Aciphex Protonix Protonix unaffected by generic omeprazole Source: IMS Health data, Oct 18, 2002 Jan. 16, 2004
Pantoprazole USA (Protonix ) No impact of Generic and OTC Omeprazole 20 Protonix reached new records: TRx has moved well beyond 300,000 TRx/week; NRx share reached 21.5%.* Most of generic Omeprazole gains have come directly from the branded product (Prilosec ). Protonix is unaffected. Total Rx PPI market is affected by launch of Prilosec-OTC, but due to losses in Rx Omeprazole.* There is no impact of Prilosec-OTC on Protonix. The Panto Story goes on! * Source: IMS Health, January 16, 2004
Respiratory Franchise 21 Two late-phase candidates: Alvesco (Ciclesonide) Daxas (Roflumilast) Opening new pathways
Respiratory Franchise Alvesco 22 Ciclesonide is an inhaled corticosteroid developed for the treatment of asthma Potent anti-inflammatory drug Long duration of action: once-daily dosing Excellent efficacy Optimized ratio of efficacy to side effects - low number of local side effects - less systemic effects, e.g. suppression of endogenous cortisol levels
Respiratory Franchise Alvesco 23 Project status (MDI): EU: Phase III Filing submitted to the MHRA (May 2002) > 4,200 patients treated with Alvesco (incl. comparator data) U.S.: JPN: Phase III Filing submitted by Aventis (December 2003; incl. pediatric) Phase III Filing submitted by Teijin in January 2004 Ongoing projects: - Dry Powder Inhaler (DPI) Phase I - Nasal spray Phase II - Fixed combination with long acting beta-agonist Phase I/II
Respiratory Franchise Daxas 24 Roflumilast is a selective PDE4-inhibitor in development for the treatment of COPD and asthma Roflumilast is the first PDE4-inhibitor to show proof of concept in both COPD and asthma Inflammatory Target Cells Roflumilast is an anti-inflammatory, steroid-free treatment for COPD and asthma ( controller ) Roflumilast is an oral (tablet), once-daily medication Eosinophils Neutrophils
Respiratory Franchise Daxas 25 Project status: EU: U.S.: JPN: Phase III for COPD and asthma > 2,500 patients in asthma (incl. comparator data) > 2,800 patients in COPD Submission to EMEA in February 2004 Phase III for COPD and asthma Filing targeted for end of 2004 Phase I for COPD and asthma
Outlook 26 ALTANA Group Further growth in sales and profits Investments in the future as basis for long-term growth 8th dividend increase targeted ALTANA Pharma Continued growth of Pantoprazole Late-phase product candidates advance ALTANA Chemie Well-positioned due to balanced and broad coverage of markets, strong market positions and consistent focus on value-added speciality business Sustained growth impetus from Additives business Positive business development continues
ALTANA Financial Calendar 2004 27 March 18: Report on FY 2003 Press Conference Analyst Meeting April 29: Report on Q1 2004 Conference Call May 5: Annual General Meeting August 3: Report on Q2 2004 Press Conference Conference Call November 4: Report on Q3 2004 Press Conference Analyst Meeting Kindly note that the above mentioned dates might be subject to change.
ALTANA Contact 28 ALTANA AG Investor Relations Dr. Thomas Gauly Sandra Fabian / Dr. Harald F. Schäfer Herbert-Quandt-Haus Am Pilgerrain 15 61352 Bad Homburg v.d. H. Germany P +49 (0) 6172 17 12-185 F +49 (0) 6172 17 12-158 IR@altana.de www.altana.com IR-Contact U.S.: Claudia Diller (IR-Assistant) Corporate Office New York 712 Fifth Avenue New York, NY 10019 USA P +1 212 974 9800 F +1 212 974 6190