Slide 1: Q4 2023 Financial Results Update
Q4 2023 Financial Results Update March 6, 2024 1
Slide 2: Introduction
Introduction Q4 2023 Update PROPRIETARY AND CONFIDENTIAL 2
Slide 3: Safe Harbor Statement/Trademarks
INTRODUCTION Safe Harbor Statement/Trademarks This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the future performance of the Compa
Slide 4: Agenda
INTRODUCTION Agenda Item Presenter Topic(s) 1 Joseph C. Papa • Focus and Priorities President and CEO 2 Paul Williams • NARCAN® Update SVP, Products Business 3 Rich Lindahl • 2023 Q4 & Full Year Financial Review EVP, CFO and Treasurer • FY 2024 Guidance 4 Q&A Q4 2023 Update 4
Slide 5: Focus & Priorities
Focus & Priorities Q4 2023 Update Joseph C. Papa President and Chief Executive Officer PROPRIETARY AND CONFIDENTIAL 55
Slide 6: Focus and Priorities
Focus and Priorities Focus & Priorities • Emergent is uniquely positioned to address public health crises • Quality & Compliance are key value drivers • Near-term priority is to build creditability across all stakeholders, de-risk our balance sheet, and reduce our debt Multi-year plan to transform t
Slide 7: NARCAN Nasal Spray Update
NARCAN® Nasal Spray Update Paul Williams SVP, Head of Products Business 7
Slide 8: State of the Opioid Crisis & Our Response
State of the Opioid Crisis & Our Response How Emergent has responded: • The opioid epidemic is one of the country’s • Added NARCAN® Nasal Spray to its portfolio in 2018. biggest public health issues. ◦ 64 million+ doses have been distributed in the • Recent data shows 105,000+ Americans died of a U.
Slide 9: Financials
Financials Q4 2023 Update Rich Lindahl Executive Vice President and Chief Financial Officer 9
Slide 10: Product & Business Highlights
FINANCIALS Product & Business Highlights Strengthened Portfolio Improved Financial Position • FDA approval of NARCAN® Nasal Spray as the first over- • Implemented organizational changes resulting in $60 the-counter opioid overdose emergency treatment; million in annual savings launched in retail cha
Slide 11: Key Financial Performance Metrics Q4 2023 vs. Q4 2022
FINANCIALS Key Financial Performance Metrics Q4 2023 vs. Q4 20221 ($ in millions) Q4 Q4 2022 2023 $330.2 $276.6 $154.2 48% $86.3 $44.0 32% $3.4 $5.9 $(40.0) Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2022 2023 2022 2023 2022 2023 2022 2023 Total Revenues Total Segment Adjusted Gross Adjusted EBITDA2 Adjusted Net Incom
Slide 12: Notable Revenue Elements Q4 2023 vs. Q4 2022
FINANCIALS Notable Revenue Elements Q4 2023 vs. Q4 20221 ($ in millions) Q4 2023 Q4 2022 % Change Product sales, net (2): NARCAN® $ 111.0 $ 91.1 22 % Other Commercial Products — 4.9 NM Anthrax MCM 111.6 56.4 98 % Smallpox MCM 11.5 144.6 (92)% Other Products 15.0 8.7 72 % Total Product sales, net $ 2
Slide 13: Key Financial Performance Metrics Q4 2023 vs. Q4 2022
FINANCIALS Key Financial Performance Metrics Q4 2023 vs. Q4 2022 1 ($ in millions) Q4 Q4 2022 2023 $127.6 $97.2 $93.4 $89.7 $50.1 $52.7 28% 32% $40.2 $37.8 $47.0 $29.4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Cost of Commercial Cost of MCM Product Cost of Biose
Slide 14: Segment Reporting Q4 2023 vs. Q4 2022
FINANCIALS Segment Reporting Q4 2023 vs. Q4 20221 ($ in millions) Q4 Q4 2022 2023 COMMERCIAL PRODUCTS SEGMENT MCM PRODUCTS SEGMENT SERVICES SEGMENT $209.7 $138.1 $133.7 $111.0 $96.0 64% $20.8 $17.4 $(35.3) $(16.7) $55.8 $60.9 $42.1 58% 55% 30% (203)% (44)% Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2022 20
Slide 15: Key Financial Performance Metrics FY 2023 vs. FY 2022
FINANCIALS Key Financial Performance Metrics FY 2023 vs. FY 20221 ($ in millions FY FY 2022 2023 $1,117.5 $1,049.3 $437.0 $335.7 41% 33% $28.8 $(22.3) $(99.7) $(319.0) FY FY FY FY FY FY FY FY 2022 2023 2022 2023 2022 2023 2022 2023 Total Revenues Total Segment Adjusted Gross Adjusted EBITDA2 Adjuste
Slide 16: Key Financial Performance Metrics FY 2023 vs. FY 2022 (Continued)
FINANCIALS Key Financial Performance Metrics FY 2023 vs. FY 2022 (Continued)1 ($ in millions) FY FY 2022 2023 $368.4 $339.5 $305.6 35% $264.3 $268.5 30% $210.3 $189.5 $160.3 $188.3 $96.8 FY FY FY FY FY FY FY FY FY FY 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Cost of Commercial Cost of MCM Pr
Slide 17: Segment Reporting FY 2023 vs. FY 2022
FINANCIALS Segment Reporting FY 2023 vs. FY 20221 ($ in millions) FY FY 2022 2023 COMMERCIAL PRODUCTS SEGMENT MCM PRODUCTS SEGMENT SERVICES SEGMENT $579.6 $497.3 $447.2 $386.6 $369.3 $287.0 56% $226.3 62% 64% $(158.6) $(102.6) 59% 58% $151.3 $109.9 34% $78.5 (131)% (144)% FY FY FY FY FY FY FY FY FY
Slide 18: Balance Sheet & Cash Flow Metrics
FINANCIALS Balance Sheet & Cash Flow Metrics ($ in millions) As of December 31, 2023 For the Year Ended December 31, 2023 CASH $111.7 OPERATING CASH FLOW $(206.3) ACCOUNTS RECEIVABLE, NET $191.0 CAPITAL EXPENDITURES $51.6 TOTAL DEBT $868.4 NET DEBT1,2 $756.7 1. Debt amount indicated on the Company’s
Slide 19: 2024 Forecast – Updated as of 3/06/2024
FINANCIALS 2024 Forecast – Updated as of 3/06/2024 ($ in millions) METRIC Full Year 2023 Actual Full Year 2024 Forecast Total revenues $1,049.3 $900 - $1,100 Net loss $(760.5) $(183) - $(133) Adjusted net loss (1) $(319.0) $(130) - $(80) Adjusted EBITDA (1) $(22.3) $50 - $100 Total segment adjusted
Slide 20: Summary
FINANCIALS Summary • 2023 Revenue in-line with mid-point of Guidance • New contract awards and orders from the U.S. Government & DOD throughout 2023 • Notable progress on strengthening our business fundamentals • Positioned for success, driven by our unique focus on protecting communities and addres
Slide 21: Q&A
Q&A PROPRIETARY AND CONFIDENTIAL 21
Slide 22: End Notes: Non-GAAP Financial Measures
End Notes: Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“G
Slide 23: Appendix
Appendix 23 23
Slide 24: Reconciliation of Net Loss to Adjusted Net Income (Loss)
APPENDIX Reconciliation of Net Loss to Adjusted Net Income (Loss) Three Months Ended December 31, Year Ended December 31, (unaudited, $ in millions) 2023 2022 2023 2022 Source Net loss $ (49.5) $ (67.0) $ (760.5) $ (211.6) Adjustments: Intangible Asset ("IA") Non-cash amortization charges $ 22.0 $ 1
Slide 25: Reconciliation of Net Loss to Adjusted EBITDA
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, (unaudited, $ in millions) 2023 2022 2023 2022 Net loss $ (49.5) $ (67.0) $ (760.5) $ (211.6) Adjustments: Depreciation & amortization $ 29.6 $ 35.6 $ 125.1 $ 143.3 Income taxes (5.0) 5.6 2
Slide 26: Reconciliations of Total Revenues to Total Segment Revenues and Gross Margin
APPENDIX Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % Three Months Ended December 31, 2023 Commercial (unaudited, in millions) Products MCM P
Slide 27: Reconciliations of Total Revenues to Total Segment Revenues and Gross Margin
APPENDIX Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % Year Ended December 31, 2023 Commercial (unaudited, in millions) Products MCM Products
Slide 28: Reconciliation of Net Loss to Adjusted Net Loss – FY 2024 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted Net Loss – FY 2024 Forecast ($ in millions) 2024 Full Year Forecast Source Net loss $(183) - $(133) Adjustments: Non-cash amortization charges $65 IA Amortization Other Income Changes in fair value of contingent 2 MCM Product COGS consideration Tax eff
Slide 29: Reconciliation of Net Loss to Adjusted EBITDA – FY 2024 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA – FY 2024 Forecast ($ in millions) 2024 Full Year Forecast Net loss $(183) - $(133) Adjustments: Depreciation & amortization $111 Income taxes 59 Total interest expense, net 61 Changes in fair value of contingent consideration 2 Total adjustment
Slide 30: Reconciliations of Forecasted Total Revenues to Forecasted Segment Revenues
APPENDIX Reconciliations of Forecasted Total Revenues to Forecasted Total Segment Revenues and of Forecasted Segment and Total Segment Gross Margin and Gross Margin % to Forecasted Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % (in millions) 2024 Full Year Forecast Total
Slide 31: www.emergentbiosolutions.com
www.emergentbiosolutions.com 31