Viatris Inc. · NASDAQ:VTRS
Viatris — Q3 2023 Earnings Presentation
47 slides from Viatris's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Earnings
Q3 2023 Earnings November 7, 2023 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a V
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about: 2023 financ
Slide 3: Non-GAAP Financial Measures and Other Information
Non-GAAP Financial Measures and Other Information Key References New product sales, new product launches or new product revenues refer to revenue from new products launched in 2023 and the carryover impact of new products, including business development, launched within the last 12 months. Operation
Slide 4: Highlights and Strategic Priorities
Highlights and Strategic Priorities Business Performance Capital Allocation & Delivering the Pipeline Strategic Initiatives & Execution Financial Commitments • Second consecutive quarter • New product revenues of • Announced agreements for • Committed to investment of divestiture-adjusted ~$135M in
Slide 5: Segment Results
Segment Results This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 5
Slide 6: Total Net Sales
Total Net Sales ($M) Q3 2023 Q3 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $3,934 $4,067 (3%) (3%) Q3 Performance vs. Expectations Brands 2,533 2,540 0% (1%) • Strong operational performance across various Complex Gx & Biosimilars 174 320 (46%) (46%) geographies and product portfolios Ge
Slide 7: Developed Markets
Developed Markets ($M) Q3 2023 Q3 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $2,409 $2,431 (1%) (4%) • Europe: ~$1.4B; +1% divestiture-adj op change Brands 1,391 1,328 5% (1%) • North America: ~$1.0B; +4% divestiture-adj op change Complex Gx & Biosimilars 166 295 (44%) (44%) Q3 Performan
Slide 8: Emerging Markets
Emerging Markets ($M) Q3 2023 Q3 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $642 $679 (5%) 0% Q3 Performance vs. Expectations Brands 410 429 (5%) 1% • Brands: ahead of expectations driven by strong Complex Gx & Biosimilars – 14 (100%) (100%) performance in key markets and including produ
Slide 9: JANZ
JANZ ($M) Q3 2023 Q3 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $335 $383 (13%) (8%) Q3 Performance vs. Expectations Brands 186 212 (12%) (9%) • Brands: in line with expectations Complex Gx & Biosimilars 8 11 (27%) (23%) • Complex Gx: in line with expectations Generics 141 161 (12%) (6%)
Slide 10: Greater China
Greater China ($M) Q3 2023 Q3 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $548 $574 (4%) 0% Q3 Performance vs. Expectations Brands 546 572 (4%) 0% • Overall results driven by strong year-over-year Complex Gx & Biosimilars – – NM NM retail product performance Generics 2 2 NM NM 2023 Full-Y
Slide 11: Pipeline
Pipeline This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 11
Slide 12: Complex Injectables / Sterile Products – Significant Milestones Achieved
Complex Injectables / Sterile Products – Significant Milestones Achieved Analytical Pivotal PK / Under Regulatory First to Market Product Indication Pre-Clinical Characterization Clinical Review Opportunity GlucagonTM Hypoglycemic Disorder Venofer® Iron Deficiency Anemia Invega Sustenna® Schizophren
Slide 13: Select Novel & Complex Products - Another Growth Catalyst
Select Novel & Complex Products - Another Growth Catalyst Under Pre- Anticipated Product Indication Phase I Phase II Phase III Regulatory Status Clinical Launch Year Review Treatment of Glatiramer PDUFA Date relapsing forms of 2024 Once Monthly multiple sclerosis March 8, 2024 Meloxicam Fast Opioid
Slide 14: Eye Care Portfolio & Pipeline
Eye Care Portfolio & Pipeline Regulatory Product Indication Pre-Clinical Phase I Phase II Phase III Status Approval Tyrvaya® Dry Eye Disease Launched 10/15/21 (Varenicline solution) Ryzumvi™ Reversal of (phentolamine Pharmacologically Induced Launch 1H 2024 ophthalmic solution) Mydriasis NMPA Accept
Slide 15: Q3 Financial Highlights
Q3 Financial Highlights This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 16: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights DIVESTITURE-ADJ ($M) Q3 2023 Q3 2022 (1) CHANGE OP CHANGE OP CHANGE Total Net Sales $3,934 $4,067 (3%) (3%) 1% Developed Markets 2,409 2,431 (1%) (4%) 2% Emerging Markets 642 679 (5%) 0% 2% JANZ 335 383 (13%) (8%) (6%) Greater China 548 574 (4%) 0% 0% Other Revenues 8 11
Slide 17: Q3 2023 YTD Financial Highlights
Q3 2023 YTD Financial Highlights DIVESTITURE-ADJ ($M) Q3 2023 YTD Q3 2022 YTD (1) CHANGE OP CHANGE OP CHANGE Total Net Sales $11,563 $12,351 (6%) (4%) 0% Developed Markets 6,933 7,387 (6%) (6%) 0% Emerging Markets 1,933 2,035 (5%) 2% 4% JANZ 1,052 1,234 (15%) (8%) (8%) Greater China 1,645 1,695 (3%)
Slide 18: Q3 2023 Total Net Sales and Adjusted EBITDA Walk
Q3 2023 Total Net Sales and Adjusted EBITDA Walk Net Sales ($M) 3,886 3,893 3,934 7 135 10 104 Q3 2022 Adjusted Fx Q3 2022 at Existing New Product Tyrvaya® Q3 2023 Ex Biosimilars (1) 2023 Fx Rates Base Business Net Sales Erosion Adjusted EBITDA ($M) 1,448 1,449 1 113 36 1,360 99 39 Q3 2022 Adjusted
Slide 19: Q3 2023 Free Cash Flow
Q3 2023 Free Cash Flow ($M) Q3 2023 Q3 2022 (1) CHANGE Q3 2023 Drivers vs. Q3 2022 U.S. GAAP Net Cash Provided $834 $869 (4%) + Improved free cash flow conversion by Operating Activities and lower one-time cash costs Capital Expenditures (96) (104) (8%) - Lower adjusted EBITDA including impact of bi
Slide 20: Capital Allocation – Delivering on our Financial Commitments
Capital Allocation – Delivering on our Financial Commitments ~$7.2B Free Cash Flow ~$6.1B Debt (1) repayment over last 11 quarters over last 11 quarters • ~$23M in debt repayment in Q3 2023 Debt • On track to repay ~$1.3B of scheduled Notional Debt Outstanding (2) Repayment 2023 debt maturities $25.
Slide 21: 2023 Financial Guidance
2023 Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 22: 2023 Financial Guidance Update
2023 Financial Guidance Update Revised Revenue Guidance ($B) Previous Guidance (1) Fx Impact Current Guidance (1) (February 27, 2023) (November 7, 2023) Key Commentary Total Revenues $15.5 - $16.0 (~$0.3) $15.4 - $15.6 ‣ Strong year-to-date operational revenue Reaffirmed Adjusted EBITDA and FCF Guid
Slide 23: Appendix
Appendix This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 23
Slide 24: Q3 2023 Select Key Product Net Sales, on a Consolidated Basis
Q3 2023 Select Key Product Net Sales, on a Consolidated Basis (Unaudited; in millions) ($M) Q3 2023 Q3 2023 YTD ($M) Q3 2023 Q3 2023 YTD Select Key Global Products Select Key Segment Products Lipitor® $381.6 $1,179.5 Influvac® $137.2 $137.5 Norvasc® 175.5 560.6 Yupelri® 58.3 160.3 Lyrica® 141.7 423.
Slide 25: GAAP / Non-GAAP Reconciliations
GAAP / Non-GAAP Reconciliations This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Via
Slide 26: Full-Year 2023 Guidance Items
Viatris Inc. and Subsidiaries Full-Year 2023 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $15,400 - $15,600 N/A Adjusted EBITDA N/A $5,000 - $5,400 Net Cash provided by $2,800 - $3,100 N/A Operating Activities Free Cash Flow N/A $2,300 - $2,700 For non-GAAP measures, see slid
Slide 27: Reconciliation of Estimated 2023 Net Cash from Operations to Free Cash Flow
Viatris Inc. and Subsidiaries Reconciliation of Estimated 2023 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited; in millions) Estimated U.S. GAAP Net Cash provided by Operating Activities (1) $2,800 - $3,100 Less: Capital Expenditures ($400) - ($500) Free Cash Flow (1
Slide 28: Adjusted Net Earnings
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP net earnings....................................................................
Slide 29: Net Earnings to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP net earnings..........................................................
Slide 30: Summary of Total Revenues by Segment – Q3 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q3 2023 Three Months Ended September 30, Divestiture 2023 Constant Constant Adjusted 2023 Currency Currency Currency % 2022 2022 Adjusted Operation
Slide 31: Summary of Total Revenues by Segment – Q3 2023 YTD
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q3 2023 YTD Nine Months Ended September 30, Divestiture 2023 Constant Constant 2022 Adjusted Adjusted 2023 Currency Currency Currency % 2022 Ex Bio
Slide 32: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP cost of sales.............................................................. $
Slide 33: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP R&D............................................................... $ 211.2 $ 174.9 $ 60
Slide 34: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP SG&A..................................................................................
Slide 35: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP total operating expenses.....................................................
Slide 36: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP interest expense................................................................... $
Slide 37: Other (Income) Expense, Net
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other (Income) Expense, Net Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP other (income) expense, net...............................................
Slide 38: Earnings Before Income Taxes and Income Tax Provision
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Earnings Before Income Taxes and Income Tax Provision Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 U.S. GAAP earnings before income taxes.........
Slide 39: Free Cash Flow over the Last 11 Quarters
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow over the Last 11 Quarters Year Ended Nine Months Ended Free Cash Flow over December 31, 2021 December 31, 2022 September 30, 2023 the last 11 quarters U.S. GAAP net cash provided by
Slide 40: Gross Leverage - Debt to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA Gross Leverage Ratio is the ratio of Viatris’ total debt at notional amounts at September 30, 2023 to the sum of Viatris’ adjusted EBITDA for
Slide 41: Net Earnings to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA Three Months Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 U.S. GAAP net earnings..........................................................
Slide 42: Gross Leverage - Debt to Adjusted EBITDA - Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA - Q4 2022 Year Ended December 31, 2022 Adjusted EBITDA (a) $ 5,776.8 Reported debt balances: Long-term debt, including current portion........
Slide 43: Net Earnings to Adjusted EBITDA - Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA - Q4 2022 Year ended December 31, 2022 U.S. GAAP net earnings........................................................................................................
Slide 44: Gross Leverage - Debt to Adjusted EBITDA - Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA - Q4 2021 Year Ended December 31, 2021 Adjusted EBITDA (a) $ 6,426.1 Reported debt balances: Long-term debt, including current portion........
Slide 45: Net Loss to Adjusted EBITDA - Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to Adjusted EBITDA - Q4 2021 Year ended December 31, 2021 U.S. GAAP net loss................................................................................................................
Slide 46: Gross Leverage - Debt to Combined Adjusted EBITDA - Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Combined Adjusted EBITDA - Q4 2020 Year Ended December 31, 2020 Combined Adjusted EBITDA (a) $ 6,807.2 Reported debt balances: Long-term debt, including curre
Slide 47: Net Loss to Combined Adjusted EBITDA - Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to Combined Adjusted EBITDA - Q4 2020 Year ended December 31, 2020 U.S. GAAP net loss.......................................................................................................