Slide 1: 2Q 2022 Investor Update
2Q 2022 Investor Update August 1, 2022
Slide 2: Introduction
PROPRIETARY AND CONFIDENTIAL 22Q 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. Any statements, other than statements of historical fact, including, without limitation, certain future financial metrics and related projections and statements regarding
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 52Q 2022 Investor Update INTRODUCTION Q&A • Bob Kramer, CEO • Rich Lindahl, CFO • Adam Havey, COO • Atul Saran, Chief Strategy and Development Officer Financial Results: -- 2Q22 vs. 2Q21 • Rich Lindahl, CFO State of the Company: 2Q22 Review • Bob Kramer, CEO Financial Forecast: -- FY2022 • Ri
Slide 6: 2Q State of the Company
PROPRIETARY AND CONFIDENTIAL2Q 2022 Investor Update State of the Company Bob Kramer President and Chief Executive Officer 6
Slide 7: Key Themes for Second Quarter 2022
Key Themes for Second Quarter 2022 72Q 2022 Investor Update STATE OF THE COMPANY • Core medical countermeasures business remains a cornerstone of our strategy and a steady, proven contributor to revenue and profitability • Relationship with the US government is strong and growing • Opioid overdose e
Slide 8: 2Q Financials
PROPRIETARY AND CONFIDENTIAL 82Q 2022 Investor Update Financials Richard S. Lindahl Executive Vice President and Chief Financial Officer
Slide 9: 2Q22 Summary Points
2Q22 Summary Points 92Q 2022 Investor Update • Core foundation of overall business • On track through 1H22 • M&A/partnering transactions for TEMBEXA and Ebanga1 have potential to expand portfolio • Meaningful impact to patients in opioid crisis • Solid financial outcomes reflect increasing market de
Slide 10: Key Financial Performance Metrics 2Q22 vs. 2Q21
2 Q 2 1 Key Financial Performance Metrics 2Q22 vs. 2Q21 102Q 2022 Investor Update Total Revenues Adjusted EBITDA1 Adjusted Net Income (Loss) Per Diluted Share1 Adjusted Net Income (Loss)1 1. See the Appendix for a definition of non-GAAP terms and reconciliation tables. $397.5 $242.7 $0.33 FINANCIAL
Slide 11: Key Financial Performance Metrics 2Q22 vs. 2Q21
2 Q 2 1 Key Financial Performance Metrics 2Q22 vs. 2Q21 112Q 2022 Investor Update R&D SG&A Adjusted Gross Margin2Gross Margin2 1. Reflects absolute value for the indicated period expressed as a percentage of total revenues for the indicated period. 2. See the Appendix for a definition of non-GAAP te
Slide 12: CDMO Metrics Trends
67 71 70 71 70 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 CDMO Metrics Trends 122Q 2022 Investor Update 1. Customers is defined as a client (commercial, government, NGO) for whom the Company has performed CDMO services where there is evidence of meeting all of the following criteria: i) completion
Slide 13: Segment Reporting 2Q22 vs. 2Q21
2 Q 2 1 Segment Reporting 2Q22 vs. 2Q211 132Q 2022 Investor Update Revenue Adjusted Gross Margin $ Adjusted Gross Margin % Adjusted Gross Margin $ Adjusted Gross Margin % Revenue 1. For additional detail related to the method and specific inputs by which both revenue and adjusted gross margin are ca
Slide 14: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 142Q 2022 Investor Update 1. Debt amount indicated on the Company’s balance sheet is net of unamortized debt issuance costs of $7.5M. 2. Net Debt is calculated as Total Debt minus Cash. 3. Net Leverage Ratio is calculated as Net Debt divided by trailing twelve month
Slide 15: 2022 Forecast – Updated
2022 Forecast – Updated 152Q 2022 Investor Update FINANCIAL RESULTS ( $ I N M I LLI O N S ) Metric Updated Forecast Previous Forecast (04/28/22) Total Revenues1 $1,150 - $1,250 N/A -- Anthrax Vaccines -- ACAM2000 -- Nasal Naloxone Products -- Other Products + C&G -- CDMO $280 - $300 $225 - $250 $300
Slide 16: 2022 Forecast – Key Assumptions
2022 Forecast – Key Assumptions 162Q 2022 Investor Update FINANCIAL RESULTS • Anthrax vaccines at similar levels to 2021 • ACAM2000 assumes next USG contract option exercise in second half • Nasal naloxone revenues reflect increasing competition from generic entrants • CDMO revenues reflect continue
Slide 17: Key Takeaways
Performance highlights strength and durability of diversified products and services business Key Takeaways 172Q 2022 Investor Update FINANCIAL RESULTS Significant opportunity being realized in core MCM and growing Commercial products segment Long-term potential remains for CDMO offering given our ca
Slide 18: Q&A
PROPRIETARY AND CONFIDENTIAL 182Q 2022 Investor Update Q&A
Slide 19: Appendix
192Q 2022 Investor Update Appendix
Slide 20: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) – 2Q22 vs. 2Q21
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) – 2Q22 vs. 2Q21 202Q 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 J U N E 3 0 , 2 0 2 2 2 0 2 1 S O U R C E Net income (loss) $(56.4) $4.6 Adjustme
Slide 21: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) – 2022 Updated Forecast
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) – 2022 Updated Forecast 212Q 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 income (loss) $(69)-$(44) Adjustments: + Non-cash amortization charges 61 Intangible Asset
Slide 22: Reconciliation of Net Income (Loss) to Adjusted EBITDA – 2Q22 vs. 2Q21
Reconciliation of Net Income (Loss) to Adjusted EBITDA – 2Q22 vs. 2Q21 222Q 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 J U N E 3 0 , 2 0 2 2 2 0 2 1 Net income (loss) $(56.4) $4.6 Adjustments: Depreciation & amortization 44.5 33.2 Income taxes (26.4) 2.6
Slide 23: Reconciliation of Net Income (Loss) to Adjusted EBITDA – 2022 Updated Forecast
Reconciliation of Net Income (Loss) to Adjusted EBITDA – 2022 Updated Forecast 232Q 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 income (loss) $(69)-$(44) Adjustments: + Depreciation & amortization 145 + Income taxes (33)-(18) + Total interest
Slide 24: Reconciliation of Gross Margin and Adjusted Gross Margin – 2Q22 vs. 2Q21
Reconciliation of Gross Margin and Adjusted Gross Margin – 2Q22 vs. 2Q21 242Q 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 J U N E 3 0 , 2 0 2 2 2 0 2 1 Total revenues $242.7 $397.5 Contracts and grants revenues (7.3) (25.4) Adjusted revenues $235.4 $372.1
Slide 25: www.emergentbiosolutions.com
www.emergentbiosolutions.com