Slide 1: Earnings Conference Call Q2 Fiscal Year 2025
Earnings Conference Call Q2 Fiscal Year 2025 May 9, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements
Slide 3: Agenda and Presenters
Agenda and Presenters Today’s topics: Dev Kurdikar Chief Executive Officer Strategic Priorities Q2 Highlights & Business Review Revenue and Earnings Review Jake Elguicze Chief Financial Officer Guidance Q&A Pravesh Khandelwal Vice President, Investor Relations 3
Slide 4: Strategic Priorities
Strategic 1. Strengthen core business Priorities • Refresh and establish embecta brand • Seek growth opportunities across markets 2. Expand product portfolio • Distribute products through global commercial channel • Leverage high-volume manufacturing into new segments 3. Increase financial flexibili
Slide 5: Q2 Fiscal Year 2025 Enterprise Highlights
Q2 Fiscal Year 2025 Enterprise Highlights • Delivered results slightly ahead of prior expectations, with disciplined execution • Published updated FITTER Forward Expert Recommendations in Mayo Clinic Proceedings • Received certification as a Great Place to Work for 2025 for several countries • Recei
Slide 6: Q2 Fiscal Year 2025 Enterprise Highlights – Continued
Q2 Fiscal Year 2025 Enterprise Highlights – Continued • Paid down approximately $27.4 million of the outstanding principal under our term loan B facility during the second quarter and remain on-track to reduce gross debt by approximately $110 million during FY’25 • Lowered our adjusted constant curr
Slide 7: Execution of Brand Transition Plan Underway
Execution of Brand Transition Plan Underway Product Transition Drive customer Ensure compendia Execute pre-launch Drive new brand operational readiness linkage of old and commercial awareness and new products activities and adoption communications Pre-launch Launch U.S. and Canada undergoing transit
Slide 8: Q2 Fiscal Year 2025 vs. Q2 Fiscal Year 2024 Adjusted Revenue
Q2 Fiscal Year 2025 vs. Q2 Fiscal Year 2024 Adjusted Revenue Dollars in Millions Three Months Ended March 31, % Increase / Decrease Adjusted Constant Reported Currency Revenue Currency Adjustment Revenue 2025 2024 Growth Impact Impact Growth Reported Adjusted Reported Adjusted Adjustment Adjustment
Slide 9: Q2 FY 2025 Financial Highlights
Q2 FY 2025 Financial Highlights Q2 FY25 reported revenue of $259.0 million, down 9.8% on a reported basis, down 7.7% on an adjusted constant currency basis; as compared to Revenue the prior year period Gross Q2 FY25 GAAP gross profit and margin of $164.1 million and 63.4%, compared to $185.4 million
Slide 10: Fiscal Year 2025 Updated Financial Guidance
Fiscal Year 2025 Updated Financial Guidance Dollars in Millions, Current Previous (1) except per share and percentages Low High Low High Reported Revenue $1,073 $1,090 $1,075 $1,092 Reported Revenue Growth (%) (4.4)% (2.9)% (4.3)% (2.8)% Impact of F/X (%) (0.8)% (2.2)% Impact of Italian payback meas
Slide 11: Analyst & Investor Day
The embecta team is pleased to invite you to its inaugural ANALYST & INVESTOR DAY MAY 22, 2025 9:00 am – 12:30 pm LOCATION (please note updated location) Convene 530 5th Avenue New York, NY 10036 RSVP TODAY by scanning, clicking here or emailing embecta@icrhealthcare.com by May 15 Dev Kurdikar, Pres
Slide 12: Q&A
Q&A embecta
Slide 13: Appendix
Appendix embecta
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) Adjusted Revenues, (ii) earnings before interest, taxes, depreciation, and amortization (“EBITDA”
Slide 15: Six Months Ended Fiscal Year 2025 vs. Fiscal Year 2024 Adjusted Revenue
Six Months Ended Fiscal Year 2025 vs. Six Months Ended Fiscal Year 2024 Adjusted Revenue Dollars in Millions Six Months Ended March 31, % Increase / Decrease Adjusted Constant Reported Currency Revenue Currency Adjustment Revenue 2025 2024 Growth Impact Impact Growth Reported Adjusted Reported Adjus
Slide 16: Adjusted Revenue and Adjusted Gross Profit Margin Reconciliation
Adjusted Revenue and Adjusted Gross Profit Margin Reconciliation Dollars in Millions Three Months Ended Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Reported Revenue $259.0 $287.2 $520.9 $564.5 Italian payback measure — — — — Adjusted Revenue $259.0 $287.2 $520.9 $564
Slide 17: Adjusted Revenue and Adjusted Gross Profit Margin Reconciliation - Continued
Adjusted Revenue and Adjusted Gross Profit Margin Reconciliation - Continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred are primarily attributed to brand transition. (3) Represents costs required to develop processes and systems t
Slide 18: Adjusted Operating Income Margin Reconciliation
Adjusted Operating Income Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 GAAP Operating Income $62.9 $39.2 $91.6 $84.7 GAAP Operating Income Margin 24.3% 13.6% 17.6% 15.0% Amortization of i
Slide 19: Adjusted Operating Income Margin Reconciliation – Continued
Adjusted Operating Income Margin Reconciliation – Continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up cos
Slide 20: Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation
Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation Dollars in Millions, except per share amounts Three Months Ended Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 GAAP Net Income $23.5 $28.9 $23.5 $49.0 Adjustments: GAAP Income tax benefit 12.3
Slide 21: Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation
Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distri
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in Millions Three Months Ended Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Reported Revenue $259.0 $287.2 $520.9 $564.5 Italian payback measure — — — — Adjusted Revenue $259.0 $287.2 $520.9 $564.5 Dollars in Millions, except per
Slide 23: Adjusted EBITDA Reconciliation – Continued
Adjusted EBITDA Reconciliation – Continued (1) Represents stock-based compensation expense incurred during the three and six months ended March 31, 2025 and 2024, respectively. For the three months ended, March 31, 2025, $4.7 million is recorded in Selling and administrative expense, $1.9 million is
Slide 24: Q2 Quarter to Date Fiscal Year 2025 Supplemental Reconciliation
Q2 Quarter to Date Fiscal Year 2025 Supplemental Reconciliation Costs associated Other Non- Q2 QTD FY 2025 with the Q2 QTD FY 2025 Dollars in Millions GAAP GAAP discontinued patch Adjusted adjustments pump program (1) Gross Profit 164.1 0.1 0.8 (2) 165.0 Research and development expense 8.0 4.9 0.8
Slide 25: Q2 Year to Date Fiscal Year 2025 Supplemental Reconciliation
Q2 Year to Date Fiscal Year 2025 Supplemental Reconciliation Costs associated Other Non- Q2 YTD FY 2025 with the Q2 YTD FY 2025 Dollars in Millions GAAP GAAP discontinued patch Adjusted adjustments pump program (1) Gross Profit 321.2 6.6 1.4 (2) 329.2 Research and development expense 28.3 23.2 1.0 (
Slide 26: Fiscal Year 2025 Financial Guidance Assumptions
Fiscal Year 2025 Financial Guidance Assumptions Dollars in Millions, except percentages Current Prior Interest Expense, Net ~ $107 ~ $107 Adjusted Tax Rate ~ 25% ~ 25% Weighted Average Shares (in millions) 58.9 58.9 Foreign Exchange EUR/USD ~ 1.10 ~ 1.03 USD/YEN ~ 148 ~ 156 USD/CNY ~ 7.27 ~ 7.32 26