WELCOME TO ACTELION’S ANNUAL GENERAL MEETING 2013 · 2017-02-20 · – 2013: CHF 1.00 proposed per share Share repurchase – Ongoing CHF 800 million program – Repurchased in

Copyright © 2013 Actelion Pharmaceuticals Ltd

WELCOME TO ACTELION’S ANNUAL GENERAL MEETING 2013

© 2013 Actelion Pharmaceuticals Ltd

Die nachfolgenden Informationen enthalten gewisse zukunftsgerichtete Aussagen betreffend des Geschäfts der Gesellschaft, die durch Benutzung von Begriffen wie "schätzt", "glaubt", "erwartet", "werden", "sollte", "würde", "suchen", "pendent", "geht davon aus" oder ähnlichen Ausdrücken sowie durch Diskussion von Strategie, Plänen oder Absichten identifiziert werden können. Derartige Aussagen beinhalten Beschriebe der Forschungs- und Entwicklungsprogramme der Gesellschaft und den damit in Zusammenhang stehenden Aufwänden, Beschriebe von neuen Produkten welche voraussichtlich durch die Gesellschaft zum Markt gebracht werden und die Nachfrage für solche bereits existierenden oder erst in Aussicht stehenden Produkte. Derartige zukunftsgerichteten Aussagen reflektieren die gegenwärtigen Ansichten der Gesellschaft bezüglich dieser zukünftigen Ereignisse und unterliegen bekannten und unbekannten Risiken, Unsicherheiten und Annahmen. Viele Faktoren können die effektive Performance, Resultate oder Leistungen beeinflussen, sodass sie erheblich von derartigen ausdrücklichen oder implizit erwähnten zukunftsgerichteten Aussagen abweichen können. Sollten eines oder mehrere dieser Risiken eintreten oder Annahmen sich als nicht korrekt herausstellen, können die effektiven Resultate der Gesellschaft erheblich von den erwarteten abweichen.

Generalversammlung 2013 18 April 2013 2


MEETING STRUCTURE

ACTELION’S ANNUAL GENERAL MEETING 2013

18 April 2013 Generalversammlung 2013 3

Opening Remarks Jean-Pierre Garnier, Chairman of the Board

Business Review 2012 Jean-Paul Clozel, Chief Executive Officer

Andrew J. Oakley, Chief Financial Officer

Agenda & Proposals Jean-Pierre Garnier, Chairman of the Board Marian Borovsky, Secretary of the Board of Directors


FORMAL DECLARATIONS REGARDING THE CONSTITUTION OF THE MEETING



IHR TELEVOTER / YOUR TELEVOTER

Ja Oui Yes

Enthaltung Abstention Abstention

Nein Non No



FORMAL DECLARATIONS REGARDING THE CONSTITUTION OF THE MEETING



OPENING REMARKS BY THE CHAIRMAN OF THE BOARD Jean-Pierre Garnier Chairman of the Board of Directors


30.00

35.00

40.00

45.00

50.00

55.00

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

Actelion Nasdaq Biotech index (rebased) Swiss SMI index (rebased)

ACTELION SHARE PRICE PERFORMANCE


Share price development +35% in 2012 AGM 2012


OPENING REMARKS BY THE CHAIRMAN OF THE BOARD Jean-Pierre Garnier Chairman of the Board of Directors


CREATING VALUE THROUGH SCIENTIFIC INNOVATION Jean-Paul Clozel Chief Executive Officer


2012: A LANDMARK YEAR FOR ACTELION

CORE EARNINGS GROWTH IN 2012

SUCCESSFUL MID-STAGE STUDY

WITH PONESIMOD

NEW BOARD MEMBER ELECTED

RENEWED DIVIDEND PAYOUT

FIRST NP-C TREATMENT

AVAILABLE IN JAPAN

SUCCESSFUL MID-STAGE STUDY

WITH CADAZOLID

PRIMARY ENDPOINT MET IN

MACITENTAN STUDY

STRONG SALES PERFORMANCE IN

CHALLENGING ENVIRONMENT

REGULATORY FILINGS FOR MACITENTAN

COMMITMENT TO DOUBLE-DIGIT

CORE EARNINGS GROWTH IN 2015

VALUE CREATION STRATEGY

IMPLEMENTED

MACITENTAN RESULTS

PRESENTED AT CHEST 2012



LONG-TERM MORBIDITY/MORTALITY OUTCOME DATA

SERAPHIN STUDY RESULTS

RISK REDUCTION: 45%

P < 0.0001

10 MG: MACITENTAN



THREE MAIN TASKS FOR VALUE CREATION

DELIVERING ON OUR STRATEGY

SUSTAIN AND GROW THE PAH

FRANCHISE

BUILD ADDITIONAL SPECIALTY FRANCHISE

OPTIMIZE PROFITABILITY





FRANCHISE





Tradename

Molecule Mechanism

Tracleer Bosentan ERA

Letairis Ambrisentan ERA

Revatio Sildenafil PDE5

Adcirca Tadalafil PDE5

Ventavis Iloprost Inhaled Prostacyclin

Tyvaso Treprostinil Inhaled Prostacyclin

Flolan Epoprostenol IV Prostacyclin

Veletri Epoprostenol IV Prostacyclin

Remodulin Treprostinil IV/SC Prostacyclin

APPROVED BASED ON SHORT-TERM EXERCISE CAPACITY DATA

CURRENT APPROVED PAH TREATMENTS



GLOBAL LEADERSHIP IN PAH THERAPY

TRACLEER ®

First approval for PAH 2001 Approved in 63 countries

First approval for DU 2007 Approved in 49 countries

VENTAVIS ®

Acquired for PAH in 2006 Marketed by Actelion in

the US

VELETRI ®

First approval for PAH 2010 Approved in US, Canada &

Switzerland

SUSTAINING LEADERSHIP POSITION



GLOBAL LEADERSHIP IN PAH THERAPY

TRACLEER ®

1,500.2 CHF MILLION

1% DECREASE

VENTAVIS ®

110.2 CHF MILLION 4% INCREASE

VELETRI ®

24.0 CHF MILLION 63% INCREASE

SUSTAINING LEADERSHIP POSITION



Potent and sustained dual receptor binding

Tailored properties to target tissue

Favorable pharmacokinetic / dynamic properties

Very limited drug-drug interaction

Improved safety and tolerability profile

PROVIDING A STRONG AND UNIQUE BENEFIT TO PATIENTS

MACITENTAN: NOVEL & DIFFERENTIATED



STUDY WITH ENDOTHELIN RECEPTOR ANTAGONIST IN PULMONARY ARTERIAL HYPERTENSION TO IMPROVE CLINICAL OUTCOME


PROSTACYCLIN (PGI2) RECEPTOR AGONIST IN PULMONARY ARTERIAL HYPERTENSION




FRANCHISE





Ponesimod: First S1P1 modulator to demonstrate efficacy in psoriasis

Cadazolid: First efficacy results with Actelion’s novel antibiotic in patients

COMMITMENT TO INNOVATION – BUILDING SPECIALTY PIPELINE

EXCELLENT PIPELINE PROGRESS

Ponesimod & cadazolid to advance to Phase III clinical development





FRANCHISE





Rapidly implemented Cost Savings Initiative

– Lower R&D cost base – Aligns the organization to the strategy – Addresses efficiency opportunities – Fully capitalize on the significant growth opportunities – Retains full commercial capabilities




ACTELION 2012 – KEY PERFORMANCE NUMBERS

FY 2011 FY 2012 % of

Change CHF

% of Change

LC

Product sales 1,713.0 1,722.1 1 (2)

Core earnings (ex DDP) 480.6 537.0 12 6

Core EPS 3.04 3.69 22 16

in CHF million

in CHF million

CHF



SOLID PERFORMANCE – COMMITMENT TO VALUE CREATION

Andrew J. Oakley Chief Financial Officer


22% growth of Core EPS

Operating margin improvement

Cost savings initiative fully implemented

Lower tax rate

Acceleration of share buyback

Free cash flow of over CHF 500 million – increased by 72%

Cash distribution to shareholders of CHF 357.9 million

HIGHLIGHTS OF THE YEAR



FY 2011 FY 2012 % of

Change CHF

% of Change

LC

Product sales 1,713.0 1,722.1 1 (2)

Operating Income 12.2 421.5 * *

Core earnings (ex DDP) 480.6 537.0 12 6

US GAAP EPS (1.23) 2.57 * *

FINANCIAL HIGHLIGHTS

in CHF million

CHF

in CHF million

in CHF million

*not meaningful



1,713.0 1,722.1

FY 2011 FY 2012

Sales decrease driven by

– Competition in the US – Price erosion ex-US

Regional breakdown (LC):

– US 41% – Europe 37% – Japan 12% – RoW 10%

DELIVERING A SOLID PERFORMANCE IN A CHALLENGING ENVIRONMENT

ACTELION PRODUCT SALES

in CHF million

-2% LC variance



399.8 398.5

FY 2011 FY 2012

Increased spend on macitentan, selexipag

Pipeline refocusing

CSI impact on fixed cost base

BALANCING SPEND WITH FUTURE GROWTH

NON-GAAP R&D OPEX

in CHF million

-1% LC decrease



636.2 590.2

FY 2011 FY 2012

Benefit from lower legal expenses

Focused commercial spend delivering leverage

UNDERLYING COMMERCIAL LEVERAGE

NON-GAAP SG&A OPEX

in CHF million

-9% LC Decrease



480.6 537.0

FY 2011 FY 2012

Operational leverage delivers margin improvement

– 28% margin 2011 – 31% margin 2012

Impact of CSI

EXCLUDES IMPACT OF DOUBTFUL DEBT PROVISIONS

CORE EARNINGS

in CHF million

+6% LC Increase



Stock compensation CHF 46.6 m

Depreciation CHF 42.3 m

Amortization CHF 39.6 m

Auxilium Pharmaceuticals Inc. payment CHF 9.1 m

Restructuring charge CHF 6.9 m

Doubtful debt provision CHF (22.6) m

OTHER GAAP OPEX

in CHF million

210.9 121.9

340.6

FY 2011 FY 2012



-81.50

-63.0

Interest expense on litigation provision: CHF 41.6 m

Bond costs: CHF 12.0 m

Other financial expense CHF 10.6 m related to hedging and valuation movements

Tax expense CHF 55.2 m (15.4%)

FINANCIAL RESULT

in CHF million

FY 2011 FY 2012



-1.23

2.57

FY 2011 EPS impacted by litigation provision

Core EPS: CHF 3.69 (+22%)

US GAAP EARNINGS PER SHARE

in CHF

FY 2011 FY 2012



Increased core earnings

Improved working capital

Lower Capex

FREE CASH FLOW

290.9

501.1

FY 2011 FY 2012

in CHF million



109.3

264.2 95.3

'93.70

FY 2011 FY 2012

Dividend

– 2012: CHF 0.80 per share – 2013: CHF 1.00 proposed per share

Share repurchase

– Ongoing CHF 800 million program – Repurchased in 2012: CHF 264.2 m – Total end 2012: CHF 383.4 m – Completion before end 2013

FY 2012 – RETURN TO SHAREHOLDERS

in CHF million



Q1 2012 Q1 2013 % of

Change CHF

% of Change

LC

Product sales 415.8 432.8 4 4 5

Operating Income 67.1 124.0 85 86

Core earnings 117.6 168.5 43 44

US GAAP EPS 0.38 0.85 125 127

FIRST QUARTER 2013 - FINANCIAL HIGHLIGHTS

in CHF million

CHF

in CHF million

in CHF million



CONCLUDING REMARKS

Chairman of the Board

Documents

WELCOME TO ACTELION’S ANNUAL GENERAL MEETING 2013 · 2017-02-20 · – 2013: CHF 1.00 proposed per share Share repurchase – Ongoing CHF 800 million program – Repurchased in