UCB's Financial Update 2010
• 2010 total revenue, recurring EBITDA and Core EPS higher
• Year end impairment tests lead to extra ordinary, non-cash, non-recurring write offs
Brussels (Belgium), 5 January 2011 – 7:00 AM CET – regulated information – UCB announced today that the company expects to exceed the previous guidance of total revenue to reach at least EUR three billion, a recurring EBITDA of approximately EUR 700 million and a Core EPS of EUR 1.76. At the same time, one time write offs and the year end impairment test will result in the recognition of impairment charges amounting to EUR 240-250 million thus surpassing 2009's impairment charges of EUR 126 million. Impairment charges are recognized as non-recurring expenses below the 'recurring earnings before interest and taxes' (recurring EBIT) line of UCB's consolidated income statement.
"We are very satisfied with our operating performance in 2010,"
says Detlef Thielgen, CFO of UCB. "Our key financial performance
indicators will surpass our financial outlook given earlier in
2010. While non-cash, one-time write offs and impairment charges
impact our bottom line we are confident to show a positive net
result for 2010."
Exceeding UCB's financial guidance is mainly driven by better than expected sales of the epilepsy drug Keppra® (levetiracetam), especially in the EU, and by solid performance of the company's new core products: Cimzia® (certoluzimab pegol), Vimpat® (lacosamide) and Neupro® (rotigotine).
An impairment charge is recognized when the impairment tests shows significant deviation between the fair value and the balance sheet book value of non-financial assets at balance sheet date. Based on latest market estimates, the year end impairment tests of the intangible assets showed a deviation as the book value for the fesoterodine franchise royalty stream no longer reflects latest market estimates as well as smaller deviations for some other products. Additionally the disposal of UCB's three manufacturing facilities in Germany and Italy to Aesica announced in December 2010, leads to a one-time write off.
For further information
Antje Witte, Investor Relations UCB
T +32.2.559.9414, firstname.lastname@example.org
Michael Tuck-Sherman, Investor Relations, UCB
T +32.2.559.9712, email@example.com
Nancy Nackaerts, External Communications, UCB
T +32.473.864.414 or +32.2.559.92.64, firstname.lastname@example.org
UCB, Brussels, Belgium (www.ucb.com) is a global biopharmaceutical company focused on the discovery and development of innovative medicines and solutions to transform the lives of people living with severe diseases of the immune system or of the central nervous system. With more than 8 000 people in about 40 countries, the company generated revenue of EUR 3.1 billion in 2009. UCB is listed on Euronext Brussels (symbol: UCB).
Forward looking statements
This press release contains forward-looking statements based on current plans, estimates and beliefs of management. Such statements are subject to risks and uncertainties that may cause actual results to be materially different from those that may be implied by such forward-looking statements contained in this press release. Important factors that could result in such differences include: changes in general economic, business and competitive conditions, effects of future judicial decisions, changes in regulation, exchange rate fluctuations and hiring and retention of its employees.
For more information contact:
UCB Media Room
Posted: January 2011