Slide 1: Earnings Conference Call Q3 Fiscal Year 2022
Earnings Conference Call Q3 fiscal year 2022 August 15, 2022
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 Dev Kurdikar Today’s topics: Chief Executive Officer Enterprise highlights Revenue and earnings review Jake Elguicze Chief Financial Officer Guidance and strategic priorities CEO remarks Q&A Pravesh Khandelwal Vice President, Investor Relations 3
Slide 4: Mission and Vision
Mission To develop and provide solutions that make life better for people living with diabetes Advance every day together Vision A life unlimited by diabetes 4
Slide 5: embecta is a Leader in the Global Marketplace
embecta is a Leader in the Global Marketplace Our strong core business reaches people with diabetes (PWD) around the world embecta by the numbers(1) #1 Globally ~7.6B ~30M Producer of Pen Units produced annually PWD reached annually Needles, Syringes & across Safety devices 3 world-class facilities
Slide 6: Executive Summary of Q3 Fiscal Year 2022 Results
Executive Summary of Q3 Fiscal Year 2022 Results Resilient commercial performance amidst challenging macro environment, including supply chain and inflationary pressures, geo-political concerns, as well as certain COVID-19 disruptions Revenue of $291.1 million, down 1.3% on a reported basis; up 2.0%
Slide 7: Q3 and Year-to-Date Fiscal Year 2022 vs. 2021 Revenue
Q3 and Year-to-Date Fiscal Year 2022 vs. 2021 Revenue (Dollars in Millions) Three Months Ended % Increase / Decrease As-Reported Currency Constant Currency Overall Constant Currency June 30, 2022 June 30, 2021 Revenue Growth Impact Revenue Growth Drivers U.S. $158.0 $151.8 4.1% 0.0% 4.1% • Favorable
Slide 8: Q3 Fiscal Year 2022 Financial Highlights
Q3 Fiscal Year 2022 Financial Highlights • Q3 FY’22 revenue of $291.1 million, down 1.3% vs. prior year period on an as-reported basis; up Revenue 2.0% on a constant currency basis • Q3 FY’22 gross profit and margin of $202.9 million and 69.7%, compared to $202.6 million and 68.7% vs. prior year per
Slide 9: 2H Fiscal Year 2022 Financial Guidance
2H Fiscal Year 2022 Financial Guidance (Dollars in Millions, except percentages) Current Prior Revenue ~$555 ~$555 As Reported % ~(7.0%) ~(7.0%) Constant Currency % ~(3.0%) ~(3.5%) F/X % ~(4.0%) ~(3.5%) Contract Manufacturing ~$10 ~$15 Adjusted Gross Margin % Mid-60%s Low-60%s Adjusted EBITDA Margin
Slide 10: Strategic Investments to Accelerate our Long-term Growth Profile
Strategic Investments to Accelerate our Long-term Growth Profile Including commercial investments, next-gen products, and M&A Expand and penetrate Stronger R&D: M&A potential: through the core: We have opportunities to We can enter the T2D market We will seek partnerships drive growth in the core wi
Slide 11: Thank you
Thank you
Slide 12: Appendix
Appendix embecta’
Slide 13: 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) earnings before interest, taxes, depreciation, and amortization (“EBITDA”), (ii) adjusted EBITDA,
Slide 14: Adjusted Gross Margin Reconciliation
Adjusted Gross Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenue $291.1 $295.0 $854.9 $864.5 Cost of sales 88.2 92.4 256.9 274.3 Gross Profit 202.9 202.6 598.0 590.2 Gross Margin 69.7% 68
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in Millions Three Months Ended Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $62.4 $104.7 $240.8 $317.9 Interest expense, net 19.5 — 24.4 — Income taxes 11.2 20.2 43.3 60.6 Depreciation and amortization 9.1 9.9 24.2 29.4 E