Embecta Corp. · NASDAQ:EMBC
Embecta — 41st Annual J.P. Morgan Healthcare Conference (January 2023)
22 slides from Embecta's conference presentation, Jan 11, 2023
Slide 1: 41st Annual JP Morgan Healthcare Conference
41st Annual JP Morgan Healthcare Conference January 11, 2023
Slide 2: Strategy and business update
Strategy and business update Dev Kurdikar Chief Executive Officer 2
Slide 3: 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 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: The global diabetes landscape
The global diabetes landscape A growing space where people with diabetes (PWD) need chronic treatment Prevalence of diabetes Diabetes requires chronic, Standard of care persists, is steadily and lifelong treatment: while unmet needs consistently rising: create opportunities: Rates of diagnosis, trea
Slide 6: Prevalence and cost of diabetes
Prevalence and cost of diabetes Growing consistently around the world Total (MM) (1) Europe (MM) (1) 46% +246M North America & Caribbean (MM)(1) 13% 537 783 61 69 2021 2045 24% 2021 2045 51 63 Prevalence 2021 2045 Western Pacific (MM) (1) 27% • 1 in 10 adults have diabetes 206 260 • 3 in 4 people wi
Slide 7: Unmet needs remain, even with the most advanced treatments
Unmet needs remain, even with the most advanced treatments Insulin-dependent PWD face complex burden & daily challenges Must serve as own healthcare provider: Monitoring, making decisions, and completing healthcare tasks that reach into every aspect of daily life Self-monitoring Treatment adherence
Slide 8: A leadership position based on core strengths
A leadership position based on core strengths Scale, quality, and efficiency create competitive advantages History, reputation, Commercial Manufacturing brand capabilities #1 global producer of pen needles, syringes and safety Highly automated Global distribution centers devices 3 plants producing ~
Slide 9: Unmatched volume through preeminent manufacturing infrastructure
Unmatched volume through preeminent manufacturing infrastructure We supply approximately 8B units annually Dun Laoghaire, Ireland Holdrege, NE Suzhou, China World’s largest manufacturer World’s largest manufacturer Local pen needle production of pen needles of insulin syringes for China and Asia Pac
Slide 10: Strong global commercial capabilities delivering diversified revenue
Strong global commercial capabilities delivering diversified revenue Ensuring product differentiation and reimbursement In each region, our commercial strategies and capabilities are designed to manage reimbursement and market dynamics. North America EMEA Asia Latin America Ongoing collaboration wit
Slide 11: We will invest strategically to accelerate our long-term growth profile
We will invest strategically 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 can enter the T2D market We will seek partnerships We have opportunities to drive with our patch
Slide 12: Our patch pump in development is a PWD and HCP-informed solution
Our patch pump in development is a PWD and HCP-informed solution With Breakthrough Device Designation(1) from the FDA Patch pump designed for differentiation and to reduce the adoption barrier Our Tubeless Our open- Tubed Designed For: closed- patch loop pump pumps loop pump pumps Improved user expe
Slide 13: Fiscal Year 2022 highlights
Fiscal Year 2022 highlights Completed six months as an independent company ✓ Completed spinoff from Becton Dickinson on April 1, 2022 ✓ Diverse and experienced leadership team and Board of Directors in place from Day 1 ✓ Strong execution notwithstanding challenging operating environment ✓ Making pro
Slide 14: Delivered on second half Fiscal Year 2022 expectations
Delivered on second half Fiscal Year 2022 expectations 2H’22 2H’22 2H’22 (Dollars in millions, except percentages) guidance – May’22 guidance – August’22 actual results Revenue ~$555 ~$555 ~$566 As reported % ~(7.0%) ~(7.0%) (5.1%) Constant currency % ~(3.5%) ~(3.0%) (1.2%) F/X % ~(3.5%) ~(4.0%) (3.
Slide 15: Fiscal Year 2022 vs. Fiscal Year 2021 revenue
Fiscal Year 2022 vs. Fiscal Year 2021 revenue (Dollars in millions) Twelve months ended % increase / decrease Overall constant currency drivers September 30, September 30, As-reported Currency Constant currency 2022 2021 revenue growth impact revenue growth • Unfavorable impact due to U.S. $600.3 $6
Slide 16: Strategic priorities for Fiscal Year 2023
Strategic priorities for Fiscal Year 2023 Strengthen base business • Maintain core injection business revenue • Navigate through operating environment; manage costs Separate and stand-up • Continue to execute on ERP Implementation • Manage through the temporary suspension of manufacturing operations
Slide 17: Thank you
Thank you
Slide 18: Appendix
Appendix embecta’
Slide 19: 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 20: Second half Fiscal Year 2022 adjusted gross margin reconciliation
Second half Fiscal Year 2022 adjusted gross margin reconciliation Dollars in millions, except percentages Six months ended September 30, 2022 Revenue $565.7 Cost of sales 185.9 Gross profit 379.8 Gross margin 67.1% Stock-based compensation expense 0.2 Impairment losses — Adjusted gross profit (1) $3
Slide 21: Second half Fiscal Year 2022 adjusted EBITDA reconciliation
Second half Fiscal Year 2022 adjusted EBITDA reconciliation Dollars in millions Six months ended September 30, 2022 Net income (loss) $45.2 Interest expense, net 41.3 Income taxes 0.9 Depreciation and amortization 16.6 EBITDA 104.0 Stock-based compensation expense 10.2 One-time stand up costs (1) 23
Slide 22: Second half Fiscal Year 2022 adjusted EBITDA reconciliation – continued
Second half Fiscal Year 2022 adjusted EBITDA reconciliation – continued (1) One-time stand up costs incurred during the six months ended September 30, 2022 primarily include costs to stand up the Company. Approximately $21.2 million of the one-time stand up costs are recorded in Other operating expe
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