Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — J.P. Morgan Healthcare Conference 2022
20 slides from Elanco Animal Health's conference presentation, Jan 10, 2022
Slide 1: J.P. Morgan Healthcare Conference
January 11, 2022 J.P. Morgan Healthcare Conference Jeff Simmons President & Chief Executive Officer
Slide 2: Forward-looking statements
This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933 and Sectio n 21E of the Securities Exchange Act of 1934 (Exchange Act), including, without limitation , our long - term revenue and earnings growth expectations, reduction of debt
Slide 3: Today's Takeaways
3 Today’s Takeaways Delivering on 2020 Investor Day commitments Four quarters of outperformance since 2020 Investor Day Strategic actions further enabling progress and delivery Durable, global portfolio expected to drive continued revenue growth in 2022 Expect double - digit percent adjusted EBITDA
Slide 4: Animal Health Market Trends Leading into 2022
Animal Health Market Trends Leading into 2022 Pet Health $14B Industry COVID increased pet ownership globally, trends slowing but persisting Pet owner experience has improved, led by omnichannel distribution, vet clinic experience, and hybrid work Average spend per vet visit driving growth Complianc
Slide 5: Building a Leader Positioned to Deliver Increased Value
5 Building a Leader Positioned to Deliver Increase Value Integrating Bayer Full - year 2021 guidance exceeds Investor Day expectations Increased speed, productivity and higher value late - stage pipeline 4 Revenue Adj. EBITDA Adj. EPS Quarters of exceeding expectations for : *Estimate based on mid -
Slide 6: A Global, Balanced Portfolio to Drive Growth
6 A Global, Balanced Portfolio to Drive Growth Note: Percentages derived from internal estimates and the mid - point of 2021 guidance range for revenue of $4,730 million to $4,770 million as provided in the Q3 2021 earnings release issued on November 5, 2021, excluding Contract Manufacturing and may
Slide 7: Long-Term Algorithm for Accelerated Value Creation
7 Growth Profitability Results ~3% - 4% Average Annual Revenue Growth (1 )(2) Double - Digit Annual Adjusted EBITDA (2) Growth Progressing Toward Long - Term Targets of 60 % Adjusted Gross Margin (2) and 31% Adjusted EBITDA (2) Margin Double - Digit Annual Adjusted EPS (2) Growth Innovation and Focu
Slide 8: Four Consecutive Quarters of Outperformance
Since Investor Day 2020 Four Consecutive Quarters of Outperformance 8 $1,055 $1,160 $1,240 $1,089 $1,140 $1,242 $1,279 $1,131 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Expectations Actual $150 $238 $263 $208 $176 $343 $291 $211 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Expectations Actual Revenue Adj. EBITDA $ millions
Slide 9: November 2021 Guidance Expected to Beat Investor Day Expectations
9 November 2021 Guidance Expected to Beat Investor Day Expectations $4,520 - $4,600 $4,730 - $4,770 3% 7% 2% 7% $4,240 $4,280 $4,320 $4,360 $4,400 $4,440 $4,480 $4,520 $4,560 $4,600 $4,640 $4,680 $4,720 $4,760 $4,800 Investor Day November Guidance Revenue Year-Over-Year Growth +$190M 2021 Revenue Gu
Slide 10: Strategic Actions to Strengthen Delivery Since Investor Day
Strategic Actions to Strengthen Delivery Since Investor Day Completed independent company standup fully separating from Lilly systems Progressed and increased pipeline launched 8 new products in 2021 in major markets , progressed blockbusters, added KindredBio assets Simplified structure and optimiz
Slide 11: Innovation Pipeline Progression
11 Growth Concentration Progression Added scale with Bayer Animal Health and KindredBio Enhanced monoclonal antibody capabilities Focused on delivery of late - stage pet health potential blockbusters in large markets Simplified structure and optimized site network Launched 8 new products in 2021; ~7
Slide 12: Shifting R&D Investment to Pet Health and Large Markets
Shifting R&D Investment to Pet Health and Large Markets Focused on Delivering Late - Stage Potential Blockbusters NME 66% LCM 34% Percentage Investment in PH increased from 57% at Investor Day from the proposed microbiome carve - out and reprioritization of resources Pet Health 73% Farm Animal 27% V
Slide 13: 2022: Continued Growth Driven by Durable, Global Portfolio
Focus Significant Brands Accretive to Growth Core Portfolio Value Drivers Defend Material Brands, Highly Profitable Maximizing Value Of Current Portfolio Innovation Internal Pipeline External Innovation Enabled by Overall Pricing Digital Ecosystem Omnichannel Leadership Geographic Focus 2% - 3% 2% -
Slide 14: IPP: Continuously Strengthened & Expanded Strategy
IPP: Continuously Strengthened & Expanded Strategy Concentrated in Highest Potential Areas Shift of resources into Pet Health, focusing on markets of significance Expect to deliver $600 to $700 million in innovation sales by 2025 Intentional pipeline mix to balance blockbusters with portfolio soluti
Slide 15: Today's Takeaways
15 Today’s Takeaways Delivering on 2020 Investor Day commitments Four quarters of outperformance since 2020 Investor Day Strategic actions further enabling progress and delivery Durable, global portfolio expected to drive continued revenue growth in 2022 Expect double - digit percent adjusted EBITDA
Slide 16: Food and Companionship Enriching Life
Food and Companionship Enriching Life 16
Slide 17: Appendix
Reference slides and GAAP reported to non - GAAP adjusted reconciliations Appendix 17
Slide 18: Non-GAAP financial measures
This presentation includes U.S. GAAP and non - GAAP financial measures, and a reconciliation between these measures is available in this appendix. We believe these non - GAAP financial measures are useful to investors because they provide greater transparency regarding our operating performance. Non
Slide 19: Full Year 2021 EPS Guidance Reconciliation
Full Year 2021 19 EPS Guidance Reconciliation November Update Note: Numbers may not add due to rounding (1) Cost of sales adjustment is related to the amortization of inventory fair value adjustments recorded from the acquisition of Bay er Animal Health (2) Asset impairment, restructuring, and other
Slide 20: Full Year 2021 EBITDA Guidance Reconciliation
Full Year 2021 $ millions 20 Note: Numbers may not add due to rounding EBITDA Guidance Reconciliation November Update
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