UCB Integrated Annual Report 2019
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Hanneke, living with osteoporosis INTEGRATED ANNUAL REPORT 2019 Index We are UCB 3 Governance 58 Our purpose 4 1 Business conduct 60 Key figures 5 2 Risk management 63 We are UCB 6 3 Corporate governance statement (including remuneration report) 68 Letter to our stakeholders 8 Our business 11 Financials 108 Highlights 12 1 Business performance review 110 Our ambition for patients 13 2 Consolidated financial statements 123 Our performance 16 3 Notes to the consolidated financial statements 128 4 Responsibility statement 205 Patient Value Strategy 17 5 Statutory auditor’s report 206 1 Research and Development: innovating for patients 20 6 Abbreviated statutory financial statements of UCB SA 212 2 Immunology solutions: where deep insight and innovative science change lives 24 3 Neurology solutions: delivering effective and Data and reporting 215 meaningful solutions that patients truly value 27 People data 216 4 Patient access: enhancing sustainable value for patients, society and UCB through value-based GRI standards 221 access and pricing 30 Independent limited assurance report on the 5 Manufacturing and Supply: connecting UCB Integrated Annual Report 2019 234 development sciences with patient experience 31 6 Engaging and partnering with our stakeholders for sustainable patient value creation 33 Glossary of terms 236 References 238 People 37 Forward-looking statements 241 1 Strengthened organizational model 39 Financial calendar 242 2 Our empowered employees 40 Contact 242 3 Fostering an inclusive and diverse organization 42 4 Offering support for health and well-being, promoting safe behaviors 45 Communities & environment 47 1 Engaging with local communities 48 2 Improving epilepsy care in Africa and Asia 49 3 Minimizing our environmental footprint 53 Financial reporting Non-financial reporting Non-financial and financial reporting 2 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB Welcome to our 2019 Integrated Annual Report! Our 2019 Integrated Annual Report is a step on our journey to provide you with the best possible information on how UCB creates value for patients with severe diseases and for our societal stakeholders now and into the future. Today, more than ever, our 7 606 colleagues aspire to become the Patient Preferred Biopharma Leader! Jorge, Corinne, Yuko, Benedicte, UCB About this annual report This Integrated Annual Report 2019 includes the management Statement – Remuneration Report included –, Business report in accordance with article 12 of the Royal Decree of Performance Review and UCB’s Statement on non-financial 14 November 2007 relating to the obligations of issuers of information) is reported throughout all different sections of this financial instruments admitted to trading on a regulated market. Integrated Annual Report. This 2019 Integrated Annual Report All information required to be included in such management together with the materiality assessment have been prepared in report pursuant to articles 3:6 and 3:32 of the Belgian Code of accordance with the Global Reporting Standards: Core option. Companies and Associations (i.e. Corporate Governance Non-financial information is also audited by a third party. 3 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB | Our purpose Our purpose We create value for patients now and into the future. Victoria, living with psoriasis At UCB, we want to give people with severe diseases the With more than 90 years behind us, freedom to live their best lives. We work in a way that is we are looking to the future. sustainable for the patients who need our solutions, for the communities where we operate, and for society. 4 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB | Key figures Key figures 4 913 4 632 Revenue Number of assets in pipeline in € million 1 2 3 4 913 7 2018: 10 2018: 4 632 2018 2019 30.2 rEBITDA/ 29.1 R&D / revenue ratio revenue ratio 29.1% 26% 2018: 30.2% 2018: 25% 2018 2019 Employees 33% Women Executive level 7 606 UCB employees world-wide 38% 50% 50% Women Board Member Women Men UCB focuses on the following Reduction in UN Sustainable Development Goals: CO2 emissions −35% CO2 2018: −30% 5 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB | Our sites We are UCB A global biopharmaceutical company. U.K. Inspired by patients. Driven by science. At UCB, we are committed to bringing innovative therapies and Slough 714 employees solutions to address significant unmet needs for people with • Affiliate (9% of global) severe chronic diseases. UCB has its headquarters in Belgium • Research • Development 5 3 % / 47 % and our 7 606 employees across 36 markets put patients at the women / men heart of everything they do, driving our decisions and actions 97 million to bring innovative and differentiated solutions to people in our (2% of global net sales)1 two primary therapeutic areas of neurology and immunology. • ISO14001 certified • OHSAS 18001 certified • 93% electricity from renewable sources Switzerland Bulle 509 employees U.S. • Affiliate (7% of global) • Production 37 % / 6 3 % Atlanta, GA 1 403 employees women / men • Affiliate (18% of global) 40 million (1% of global net sales)1 Boston, MA 57% / 43% women / men • Research • ISO14001 certified • OHSAS18001 certified million 2 546 • Solar panels installed Raleigh, NC (54% of global net sales)1 • Development • 100% electricity from • 100% electricity from renewable sources Seattle, WA renewable sources • Research (Atlanta) Europe – others UCB has affiliates in Austria, Bulgaria, Czech Republic, Denmark, Finland, 600 employees 820 million 1 France, Greece, Hungary, Ireland, Italy, Netherlands, (8% of global) (17% of global net sales) Norway, Poland, Portugal, Romania, Slovakia, Spain, 62.5% / 37.5% Sweden women / men 6 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB | Our sites Japan Tokyo 469 employees • Affiliate (6% of global) • Development • Production 2 2 % / 7 8 % women / men Belgium Saitama 368 million • Production (8% of global net sales)1 Brussels 2 318 employees • ISO14001 certified • HQ (30% of global) • ISO45001 certified • Affiliate 4 6 % / 5 4% • 100% electricity from Braine-l’Alleud women / men renewable sources (production) • Production • Research 42 million 1 • Development (1% of global net sales) • ISO14001 certified (Braine) • Solar panels installed (Brussels and Braine) • 100% electricity from renewable sources Germany China Monheim 442 employees Shanghai 447 employees • Affiliate (6% of global) • Affiliate (6% of global) • Development • Development 60% / 40% 5 9 % / 41% women / men Zhuhai women / men • Production 333 million 137 million (7% of global net sales)1 (3% of global net sales)1 • 100% electricity from • ISO14001 certified renewable sources • OHSAS 18001 certified International markets – others UCB has affiliates in Australia, Brazil, Canada, Hong Kong, 704 employees 418 million India, Mexico, Russia, South Korea, (9% of global) (9% of global net sales)1 Taiwan, Turkey, Ukraine 5 4% / 4 6 % 1: Global net sales excluding hedging women / men 7 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB | Letter to our stakeholders Letter to our stakeholders Dear people living with severe chronic disease, dear shareholders, partners and colleagues, Welcome to our second Integrated Annual Report – thank you for An 8% annual revenue growth rate (CAGR) since 2014 and a continuing with us or joining our journey! boosted profitability (rEBITDA to revenue) from 18% in 2014 to 29% in 2019. Our aspiration to become the patient preferred biopharma leader – leveraging the different dimensions of our business to deliver Our strategic approach starts with an in-depth understanding of sustainable value for patients, our employees, society and our the patients, from biology to behavior rather than commencing shareholders – continues to guide us while we learn and adapt to from a pure scientific point of view. We want to understand the new and challenging environments. full impact of their disease which guides our scientists to develop original scientific hypothesis and translate them into innovative The implementation of our Patient Value Strategy in early 2015 solutions for specific patient populations. allowed us to positively impact 3.5 million patients’ lives in 2019 and deliver sustained company growth for the last five years: Jean-Christophe Tellier, Chief Executive Officer and Evelyn du Monceau, Chair of the Board By 2025, UCB aims to be a leader in specific patient populations strategy is the way to ensure UCB’s future success and sustainable and provide an increasing number of people with severe diseases growth. the freedom to live their best possible lives. Guided by our Patient In today’s world full of environmental and social challenges, we also Value Strategy and focusing on these patient populations, our acknowledge our responsibility to drive positive change. We are ambition is to deliver unique outcomes and the best experience committed to consider sustainability as a true business approach to all patients who need our solutions, in a way which is viable and we will focus our efforts on four areas that we believe are for patients, for society and for UCB. We are convinced that our critical to our long-term success and our contribution to society alongside our financial performance: continuously innovate to bring 8 UCB – INTEGRATED ANNUAL REPORT 2019 We are UCB | Letter to our stakeholders differentiated medicines to patients, improve patient access to our solutions, promote our employees’ safety, health and well-being and minimize our environmental footprint. UCB’s purpose is to create value for patients, now and into the future. Our ambition for patients relies on our innovation ability to bring differentiated solutions with unique outcomes that help specific patients achieve their life goals and that create the best individual experience for them. This also means ensuring access for all who need these solutions, in a way which is viable for patients, society and UCB. We believe that, to fulfil our ambition for patients, we must create the right conditions for our employees, the communities in which we operate, and our shareholders. We cannot do this alone and we embrace partnerships with other healthcare system stakeholders.