Slide 1: 3Q 2022 Financial Results Update
3Q 2022 Financial Results Update November 8, 2022
Slide 2: Introduction
PROPRIETARY AND CONFIDENTIAL 23Q 2022 Investor Update Introduction Robert G. Burrows Vice President, Investor Relations Officer
Slide 3: Forward-looking statements
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 Company or our business strategy, future operations
Slide 4: Non-GAAP financial measures
This presentation contains four financial measures – Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Diluted Share, Adjusted EBITDA (Earnings Before Interest, Taxes, and Depreciation and Amortization), and Adjusted Gross Margin – all of which are considered “non-GAAP” financial measures u
Slide 5: Agenda
Agenda 53Q 2022 Investor Update INTRODUCTION Q&A • Bob Kramer, CEO • Rich Lindahl, CFO • Adam Havey, COO • Atul Saran, Chief Strategy and Development Officer Financial Results: -- 3Q22 vs. 3Q21 • Rich Lindahl, CFO State of the Company: 3Q22 Review • Bob Kramer, CEO Financial Forecast: -- FY2022 • Ri
Slide 6: 3Q State of the Company
PROPRIETARY AND CONFIDENTIAL3Q 2022 Investor Update State of the Company Bob Kramer President and Chief Executive Officer 6
Slide 7: Key Themes for Third Quarter 2022
Key Themes for Third Quarter 2022 73Q 2022 Investor Update STATE OF THE COMPANY • Core medical countermeasures business remains a cornerstone of our strategy as we continue to work with the USG to deliver MCMs focused public health threats aligned with strategic biodefense goals • Relationship with
Slide 8: Key Priorities for Third Quarter 2022
Key Priorities for Third Quarter 2022 83Q 2022 Investor Update STATE OF THE COMPANY 1. Continuing to be a dependable partner to all clients, including USG, and deliver on strategic objectives and agreed upon commitments. 2. Stabilizing operations across all sites and investing in facilities, quality
Slide 9: 3Q Financials
PROPRIETARY AND CONFIDENTIAL 93Q 2022 Investor Update Financials Richard S. Lindahl Executive Vice President and Chief Financial Officer
Slide 10: 3Q22 Summary Points
3Q22 Summary Points 103Q 2022 Investor Update FINANCIAL RESULTS • Performance overall was mixed + Total revenues in line with guidance + Products segment delivered solid contributions + Closed on the TEMBEXA acquisition + Advanced R&D programs - Profitability remains under pressure • Revised full ye
Slide 11: Key Financial Performance Metrics 3Q22 vs. 3Q21
3 Q 2 1 Key Financial Performance Metrics 3Q22 vs. 3Q211 113Q 2022 Investor Update Total Revenues Adjusted EBITDA2 Adjusted Net Loss Per Diluted Share2 Adjusted Net Loss2 1. All financial information incorporated within this presentation is unaudited. 2. See the Appendix for a definition of non-GAAP
Slide 12: Key Financial Performance Metrics 3Q22 vs. 3Q21
3 Q 2 1 Key Financial Performance Metrics 3Q22 vs. 3Q21 123Q 2022 Investor Update R&D $ R&D Margin % SG&A $ SG&A Margin % Adjusted Gross Margin2Gross Margin2 $49.6 $39.2 FINANCIAL RESULTS $82.1 $80.2 30% 33% ( $ I N M I LLI O N S , E XC E PT PE R S H A R E A M O U N T S ) 3 Q 2 2 31% 34% 3Q21 3Q22 3
Slide 13: Segment Reporting 3Q22 vs. 3Q21
3 Q 2 1 Segment Reporting 3Q22 vs. 3Q211 133Q 2022 Investor Update Revenue Adjusted Gross Margin2 $ Adjusted Gross Margin2 % Adjusted Gross Margin2 $ Adjusted Gross Margin2 % Revenue 1. For additional detail related to the method and specific inputs by which both revenue and adjusted gross margin ar
Slide 14: Segment Reporting 9-Months vs. 9-Months
9 M 2 1 Segment Reporting 9-Months 22 vs. 9-Months 211 143Q 2022 Investor Update Revenue Adjusted Gross Margin2 $ Adjusted Gross Margin2 % Adjusted Gross Margin2 $ Adjusted Gross Margin2 % Revenue $589.6 $660.5 FINANCIAL RESULTS $355.2 $406.1 ( $ I N M I LLI O N S ) 9 M 2 2 9M21 9M22 9M21 9M22 9M21
Slide 15: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 153Q 2022 Investor Update 1. Debt amount indicated on the Company’s balance sheet is net of unamortized debt issuance costs of $9.0M. 2. Net Debt is calculated as Total Debt minus Cash. 3. Net Leverage Ratio is calculated as Net Debt divided by trailing 12-month Adj
Slide 16: 2022 Forecast – Updated
2022 Forecast – Updated 163Q 2022 Investor Update FINANCIAL RESULTS ( $ I N M I LLI O N S ) Metric Updated Forecast (As of 11/08/2022) Previous Forecast (As of 08/01/2022) Total Revenues $1,050 - $1,100 $1,150 - $1,250 -- Anthrax Vaccines -- ACAM2000 -- TEMBEXA -- Nasal Naloxone Products -- Other Pr
Slide 17: 2022 Forecast – Key Assumptions
2022 Forecast – Key Assumptions 173Q 2022 Investor Update FINANCIAL RESULTS • Anthrax Vaccines: Reflects anticipated deliveries of AV7909 and BioThrax and the impact of the FDA Warning Letter on certain batches fill/finished at the Camden site. • ACAM2000: Reflects the removal of revenues associated
Slide 18: Key Takeaways
Results reflects a mix of strong performance in core products areas offset by ongoing challenges in the services business Key Takeaways 183Q 2022 Investor Update FINANCIAL RESULTS Near-term uncertainty associated with the ACAM contract option exercise Remain confident in the impact we are having on
Slide 19: Q&A
PROPRIETARY AND CONFIDENTIAL 193Q 2022 Investor Update Q&A
Slide 20: Appendix
203Q 2022 Investor Update Appendix
Slide 21: Reconciliation of Net Loss to Adjusted Net Loss – 3Q22 vs. 3Q21
Reconciliation of Net Loss to Adjusted Net Loss – 3Q22 vs. 3Q21 213Q 2022 Investor Update APPENDIX ( $ I N M I L L I O N S , E X C E P T P E R S H A R E A M O U N T S ) T H R E E M O N T H S E N D E D S E P T E M B E R 3 0 , 2 0 2 2 2 0 2 1 S O U R C E Net loss $(75.7) $(32.7) Adjustments: Non-cash
Slide 22: Reconciliation of Net Loss to Adjusted Net Loss – 2022 Updated Forecast
Reconciliation of Net Loss to Adjusted Net Loss – 2022 Updated Forecast 223Q 2022 Investor Update APPENDIX ( $ I N M I L L I O N S ) F U L L Y E A R F O R E C A S T 2 0 2 2 F S O U R C E Net loss $(217) - $(189) Adjustments: + Non-cash amortization charges 63 Intangible Asset Amortization, Other Inc
Slide 23: Reconciliation of Net Loss to Adjusted EBITDA – 3Q22 vs. 3Q21
Reconciliation of Net Loss to Adjusted EBITDA – 3Q22 vs. 3Q21 233Q 2022 Investor Update APPENDIX ( $ I N M I L L I O N S ) T H R E E M O N T H S E N D E D S E P T E M B E R 3 0 , 2 0 2 2 2 0 2 1 Net loss $(75.7) $(32.7) Adjustments: + Depreciation & amortization 32.3 32.6 + Income taxes 11.8 (12.8)
Slide 24: Reconciliation of Net Loss to Adjusted EBITDA – 2022 Updated Forecast
Reconciliation of Net Loss to Adjusted EBITDA – 2022 Updated Forecast 243Q 2022 Investor Update APPENDIX ( $ I N M I L L I O N S ) F U L L Y E A R F O R E C A S T 2 0 2 2 F Net loss $(217) - $(189) Adjustments: + Depreciation & amortization 143 + Income taxes (29) - (27) + Total interest expense, ne
Slide 25: Reconciliation of Gross Margin and Adjusted Gross Margin
Reconciliation of Gross Margin and Adjusted Gross Margin – 3Q22 vs. 3Q21 253Q 2022 Investor Update APPENDIX ( $ I N M I L L I O N S ) T H R E E M O N T H S E N D E D S E P T E M B E R 3 0 , 2 0 2 2 2 0 2 1 Total revenues $240.0 $329.0 Contracts and grants revenues (17.4) (16.9) Adjusted revenues $22
Slide 26: www.emergentbiosolutions.com
www.emergentbiosolutions.com