Slide 1: Q2 2024 Financial Results Update
Q2 2024 Financial Results Update August 6, 2024
Slide 2: Introduction
Introduction Q2 2024 Update PROPRIETARY AND CONFIDENTIAL
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 Presenter Topic(s) Joseph C. Papa • Multi-Year Plan Update President and CEO • Key Product Highlights & Future Catalysts Rich Lindahl • Q2 2024 Financial Review EVP, CFO and Treasurer • FY 2024 and Q3 2024 Guidance Joseph C. Papa • Driving Profitable, Sustainable Long-Term Growth
Slide 5: Multi-Year Plan Update
Multi-Year Plan Update Q2 2024 Update Joseph C. Papa President and Chief Executive Officer PROPRIETARY AND CONFIDENTIAL 55
Slide 6: Great Progress Against Our Multi-Year Plan
Multi-Year Plan Update Great Progress Against Our Multi-Year Plan • Our multi-year plan to stabilize, turnaround and transform will create a solid platform to build and grow – so that Emergent continues in service of its mission to protect, enhance, and save lives worldwide for many years to come. R
Slide 7: Critical Strategic Actions Progress Our Stabilization Efforts
Multi-Year Plan Update Critical Strategic Actions Progress Our Stabilization Efforts Completed FDA Inspection at Amended Credit Agreement, Resolved Janssen contract the Baltimore-Camden facility, April 2024 dispute, July 2024 July 2024 Reduced headcount by ~50% Continuously improving our Resolving B
Slide 8: On track toward significant debt reduction; operating performance and working capital improvements
Multi-Year Plan Update On track toward significant debt reduction; operating performance and working capital improvements Streamlining our business by divesting certain products and assets • $75 million for the sale of RSDL® to SERB • $30 million for the sale of Baltimore-Camden facility to Bora, pl
Slide 9: Product Portfolio/Core Business Driver | NARCAN Nasal Spray
Multi-Year Plan Update Product Portfolio/Core Business Driver | NARCAN Nasal Spray Key Highlights Future Catalysts & Opportunities to Expand Reach NARCAN® Nasal Spray continues to impact communities in the Key Insights: U.S. and Canada to help reduce opioid overdose deaths • Demand for naloxone is e
Slide 10: Product Portfolio/Core Business Driver | MCM
Multi-Year Plan Update Product Portfolio/Core Business Driver | MCM Key Highlights Future Catalysts & Opportunities to Expand Reach $250+ million in contract modifications to supply Continued high-risk threats; Final FY 2024 U.S. Government with 4 MCMs: Congressional Funding Figures for key programs
Slide 11: Streamlining Toward a Leaner Site Network
Multi-Year Plan Update Streamlining Toward a Leaner Site Network, While Maintaining Capabilities to Meet/Exceed All Customer and Product Demand PROPRIETARY AND CONFIDENTIAL 11
Slide 12: Product Portfolio | Key Product Details
Multi-Year Plan Update Product Portfolio | Key Product Details * Subject to exercise of procurement options 12
Slide 13: Financials
Financials Q2 2024 Update Rich Lindahl Executive Vice President and Chief Financial Officer 13
Slide 14: Key Financial Performance Metrics Q2 2024 vs. Q2 2023
FINANCIALS Key Financial Performance Metrics Q2 2024 vs. Q2 20231 ($ in millions) Q2 Q2 2024 2023 $337.9 $254.7 $143.0 $55.9 43% $65.4 26% Q2 Q2 Q2 Q2 $(10.1) 2024 2023 2024 2023 Q2 Q2 Total Revenues 2024 2023 Total Segment Adjusted Gross Margin2 Adjusted EBITDA2 --- Total Segment Adjusted Gross Mar
Slide 15: Significant Non-Recurring Items: Q2 2024
FINANCIALS Significant Non-Recurring Items: Q2 20241,2 1. All financial information incorporated within this presentation is unaudited. 2. See "End Notes: Non-GAAP Financial Measures" and "Appendix" for the definitions of non-GAAP terms and reconciliations to the most directly comparable GAAP financ
Slide 16: Notable Revenue Elements Q2 2024 vs. Q2 2023
FINANCIALS Notable Revenue Elements Q2 2024 vs. Q2 20231 ($ in millions) Q2 2024 Q2 2023 % Change Product sales, net (2): NARCAN® $ 120.0 $ 133.9 (10)% Other Commercial Products — 4.0 NM Anthrax MCM 38.7 21.1 83 % Smallpox MCM 17.9 123.8 (86)% Other Products 6.8 19.4 (65)% Total Product sales, net $
Slide 17: Key Financial Performance Metrics Q2 2024 vs. Q2 2023
FINANCIALS Key Financial Performance Metrics Q2 2024 vs. Q2 2023 1 ($ in millions) Q2 Q2 2024 2023 $211.6 $80.5 $85.9 $91.4 $53.4 $54.4 $55.7 27% $31.1 $32.7 34% $26.0 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Cost of Commercial Cost of MCM Product Cost of Biose
Slide 18: Segment Reporting Q2 2024 vs. Q2 2023
FINANCIALS Segment Reporting Q2 2024 vs. Q2 20231 ($ in millions) Q2 Q2 2024 2023 COMMERCIAL PRODUCTS SEGMENT MCM PRODUCTS SEGMENT SERVICES SEGMENT $164.3 $137.9 $120.0 $83.5 $86.1 $66.6 $63.4 $64.7 $(36.3) $(26.6) 56% 61% $35.1 52% $29.1 55% 52% (56)% (91)% Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2024
Slide 19: Key Financial Performance Metrics YTD 2024 vs. YTD 2023
FINANCIALS Key Financial Performance Metrics YTD 2024 vs. YTD 20231 ($ in millions) YTD YTD 2024 2023 $555.1 $502.2 $213.4 $150.2 39% 31% $56.8 YTD YTD YTD YTD $(45.6) 2024 2023 2024 2023 YTD YTD Total Revenues Total Segment Adjusted Gross 2024 2023 Margin2 Adjusted EBITDA2 --- Total Segment Adjuste
Slide 20: Balance Sheet & Cash Flow Metrics
FINANCIALS Balance Sheet & Cash Flow Metrics (unaudited, $ in millions) As of June 30, 2024 For the Six Months Ended June 30, 2024 CASH $69.7 OPERATING CASH FLOW $(15.1) ACCOUNTS RECEIVABLE, NET $196.3 CAPITAL EXPENDITURES $15.4 TOTAL DEBT $863.8 • Q2 2024 Liquidity: $83 million4 • Q2 2024 Operating
Slide 21: 2024 Full Year Revenue & Adjusted EBITDA Guidance
FINANCIALS 1,2 2024 Full Year Revenue & Adjusted EBITDA Guidance 2 Continuing to increase the midpoint of 2024 Revenue and Adjusted EBITDA Guidance Range 1. All financial information incorporated within this presentation is unaudited. 21 2. See "End Notes: Non-GAAP Financial Measures" and "Appendix"
Slide 22: Driving Profitable, Sustainable Long-Term Growth
Driving Profitable, Sustainable Long- Term Growth 22
Slide 23: Product Portfolio | Future Growth Drivers
Product Portfolio | Future Growth Drivers 23
Slide 24: Summary
FINANCIALS Summary • Continued stabilization helps position EBS for the future • Great progress toward debt reduction • Strong YTD results are helping to build a solid foundation for the company to embark on its turnaround phase • NARCAN® Nasal Spray continuing solid performance • New MCM contract a
Slide 25: Q&A
Q&A PROPRIETARY AND CONFIDENTIAL 25
Slide 26: End Notes: Non-GAAP Financial Measures
End Notes: Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“G
Slide 27: End Notes: Non-GAAP Financial Measures (Continued)
End Notes: Non-GAAP Financial Measures (Continued) We define Total Segment Revenues, which is a non-GAAP financial measure, as our total revenues, less contracts and grants revenue, which is also equal to the sum of the revenues of our reportable operating segments. We define Total Segment Gross Mar
Slide 28: Appendix
Appendix 28 28
Slide 29: 2024 Forecast – Updated as of 08/06/2024
FINANCIALS 2024 Forecast – Updated as of 08/06/2024 METRIC Updated Range Previous Range Previous Range ($ in millions) (as of 08/06/2024) (as of 05/01/2024) (as of 03/06/2024) Total revenues $1,050 - $1,125 $1,000 - $1,100 $900 - $1,100 Net loss $(314) - $(274) $(148) - $(98) $(183) - $(133) Adjuste
Slide 30: Reconciliation of Net Loss to Adjusted Net Loss - Q2 2024 vs. Q2 2023
APPENDIX Reconciliation of Net Loss to Adjusted Net Loss - Q2 2024 vs. Q2 2023 Three Months Ended June 30, (unaudited, $ in millions) 2024 2023 Source Net loss $ (283.1) $ (261.4) Adjustments: Non-cash amortization charges $ 21.1 $ 25.0 Amortization of intangible assets, Other Income Changes in fair
Slide 31: Reconciliation of Net Loss to Adjusted Net Loss – YTD 2024 vs. YTD 2023
APPENDIX Reconciliation of Net Loss to Adjusted Net Loss – YTD 2024 vs. YTD 2023 Six Months Ended June 30, (unaudited, $ in millions) 2024 2023 Source Net loss $ (274.1) $ (447.6) Adjustments: Non-cash amortization charges $ 44.3 $ 43.0 Amortization of intangible assets, Other Income Changes in fair
Slide 32: Reconciliation of Net Loss to Adjusted EBITDA - Q2 2024 vs. Q2 2023
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA - Q2 2024 vs. Q2 2023 Three Months Ended June 30, (unaudited, $ in millions) 2024 2023 Net loss $ (283.1) $ (261.4) Adjustments: Depreciation & amortization $ 28.5 $ 32.9 Income taxes 13.3 11.2 Total interest expense, net 23.3 27.1 Impairments 2
Slide 33: Reconciliation of Net Loss to Adjusted EBITDA – YTD 2024 vs. YTD 2023
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA – YTD 2024 vs. YTD 2023 Six Months Ended June 30, (unaudited, $ in millions) 2024 2023 Net loss $ (274.1) $ (447.6) Adjustments: Depreciation & amortization $ 56.4 $ 67.5 Income taxes 16.4 36.8 Total interest expense, net 47.1 40.5 Impairments 2
Slide 34: Reconciliations of Total Revenues to Total Segment Revenues - Q2 2024
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 % - Q2 2024 vs. Q2 2023 Three Months Ended June 30, 2024 Commercial (unaudited, in millio
Slide 35: Reconciliations of Total Revenues to Total Segment Revenues - YTD 2024
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 % – YTD 2024 Six vs.Ended Months YTDJune 2023 30, 2024 Commercial (unaudited, in millions
Slide 36: Reconciliation of Total Debt to Net Debt
APPENDIX Reconciliation of Total Debt to Net Debt1 As of As of (unaudited, $ in millions) June 30, 2024 March 31, 2024 Total Debt $ 863.8 $ 909.2 Less: Cash and cash equivalents 69.7 78.5 Net debt $ 794.1 $ 830.7 1. Debt amount indicated on the Company’s balance sheet is net of unamortized debt issu
Slide 37: Reconciliation of Working Capital to Net Working Capital
APPENDIX Reconciliation of Working Capital to Net Working Capital As of As of (unaudited, $ in millions) June 30, 2024 March 31, 2024 Working Capital $ 34.8 $ 52.2 Less: Cash and cash equivalents 69.7 78.5 Add: Debt, current portion1 415.2 459.2 Net working capital $ 380.3 $ 432.9 1. Debt, current p
Slide 38: 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 $(314) - $(274) Adjustments: Non-cash amortization charges $65 Amortization of intangible assets, Other Income Changes in fair value of contingent consideration 1 Cost
Slide 39: Reconciliation of Net Loss to Adjusted EBITDA – FY 2024 Forecast
APPENDIX Reconciliation of Net Loss to Adjusted EBITDA – FY 2024 Forecast ($ in millions) 2024 Full Year Forecast Net loss $(314) - $(274) Adjustments: Depreciation & amortization $111 Income taxes 46 Total interest expense, net 82 Impairments 27 Changes in fair value of contingent consideration 1 S
Slide 40: Reconciliations of Forecasted Total Revenues to Forecasted Total 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 % - FY 2024 Forecast (in millions) 2024 Full
Slide 41: www.emergentbiosolutions.com
www.emergentbiosolutions.com 41