UCB Group Preliminary Results 2002 Conference Call

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UCB Group Preliminary Results 2002 Conference
Call

• Georges Jacobs
• Chief Executive Officer, UCB Group
• Marc Wiers
• Chief Financial Officer, UCB Group
• Luc Debeer
• Scientific Advisor, Pharma Sector UCB Group
• Arnaud Denis
• Investor Relations Officer, UCB Group

6 February 2003 18h00 Central European Time
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Turnover EUR 2,514 millions
UCB Group
Turnover in EUR million
Ordinary profit margin
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Sectorial Breakdown
UCB Group
2001 2002
(in EUR million)
Pharma 1,427 1,476 Surface Specialties
1,048 1,037 Chemicals 652 643 Films
396 394 Non sectorial - 1 Total
Turnover 2,475 2,514 2
Pharma 403 440 Surface Specialties 49 34
Chemicals 40 47 Films 9 -13 Non
sectorial 10 20 Total Ordinary Profit 462 494
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Exceptional -6 -28 Taxation -136 -136 Net
Income 318 331 4
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UCB Pharma
Pharma
2001 2002
(in EUR million)

• Allergy/Asthma
• Zyrtec
• Xyzal

Turnover 1,427 1,476 Ordinary profit 403 440
Ordinary Margin 28 30

• Neurology
• Keppra
• Nootropil
• Atarax

• Others
• Peptides
• Lortab (USA)
• Stogar Japan)

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Neurology
Others
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Allergy
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Allergy Franchise Global In-Market Sales EUR
1.7 billion
Pharma
(in EUR million)

• USA Zyrtec only antihistamine approved for
  safety and efficacy in infants as young as 6
  months
• EUROPE Xyzal continuing roll-out in Europe with
  new clinical data
• JAPAN Imposed price cut of 6

2001 2002
(in local currency)
USA 1,104 1,184 13 Europe 354 315
-11 Japan 163 141 - 6 R. of W. 51 58
12 Total incl. licencees 1,672 1,698 2
Pfizer royalties 137 151 16
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Keppra Sales EUR 231 millions
Pharma

• Third best selling product in the new AED market
  in epilepsy indication
• Critical 200,000 patient-years milestone
  surpassed
• Most succesful launch in key markets vs. existing
  new AEDs

(in EUR million)
2001 2002
(in local currency)
USA 96 164 79 Europe 26 66 156 R. of W.
0 1 Totalrevenue 122 231 89
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Increasingly Healthy Product Mix
Pharma
Turnover in EUR million
16
49
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3
23
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UCB Chemicals (former structure)
Surface Specialties

• Radcure resins curable by ultraviolet and
  electron beam
• Crylcoat polyester resins for electrostatic
  powder coatings
• Acrylic resins and polyurethanes
• Methylamines and derivatives

2001 2002
(in EUR million)
Turnover 652 643 Ordinary profit 40 47
Ordinary Margin 6 7
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Polyur.
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Methylamines
Radcure
22
Crylcoat
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UCB Films (former structure)
Surface Specialties

• OPP Films
• - Films for Labels
• - Overwrapping
• - Coated films
• - Security films
• Cellulose Films
• - Specialty Packaging
• - Industrial Uses

2001 2002
(in EUR million)
Turnover 396 394 Ordinary profit 9 - 13
Ordinary Margin 2 -3
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Cellophane
OPP
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New Structure (pro-forma at 2002 year-end)
Surface Specialties
2001 2002
(in EUR million)

• Reaching critical mass
• Highly complementary product offering with
• unmatched application
• and solution portfolio
• Strong position to achieve global leadership
• Synergies to realise
• improvement in profitability

Turnover 1,686 1,659
Chemicals 652 643 Films 396 394
Solutia RAA 638 622
Surface Specialties - 4,700 Employees - 25
sites (Production RD)
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2002 Continued Growth despite pressured
environment
UCB Group

• Highlights
• Keppra close to doubling its sales, 200,000
  patient-years surpassed
• Allergy Franchise worldwide sales growth despite
  pressures
• Surface Specialties largest acquisition of UCB
• Chemicals increase profit contribution
• Films - restructuring efforts
• - recovery targeted for end-2003

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Outlook and Challenges for 2003
UCB Group

• Pharma
• Consolidate our position as a world leader in the
  anti-allergic field
• Further develop the success of Keppra
• Continuing increase in RD effort
• Surface Specialties
• Integrate and launch the new structure
• Reap first benefits of synergies
• Continue to profit from improvement plan of the
  Films activities

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