Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 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 Via
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 • Strong first half of 2023 • New product revenues of • Remain on track to execute • Prioritizing debt paydown $124M in Q2 2023 planned divest
Slide 5: Segment Results
Segment Results This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 5
Slide 6: Total Net Sales
Total Net Sales ($M) Q2 2023 Q2 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $3,910 $4,105 (5%) (3%) Q2 Performance vs. Expectations Brands 2,445 2,483 (2%) 0% • Strong performance across all segments Complex Gx & Biosimilars 139 355 (61%) (61%) • Brands: in line with expectations, reflect
Slide 7: Developed Markets
Developed Markets ($M) Q2 2023 Q2 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $2,354 $2,479 (5%) (6%) • Europe: ~$1.34B; 2% divestiture adj op change Brands 1,300 1,305 0% (2%) • North America: ~$1.02B; 0% divestiture adj op change Complex Gx & Biosimilars 133 327 (59%) (59%) Q2 Performan
Slide 8: Emerging Markets
Emerging Markets ($M) Q2 2023 Q2 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $648 $651 0% 8% Q2 Performance vs. Expectations Brands 407 388 5% 11% • Brands: ahead of expectations driven by strong Complex Gx & Biosimilars – 15 (100%) (100%) performance in key markets and including products
Slide 9: JANZ
JANZ ($M) Q2 2023 Q2 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $376 $427 (12%) (6%) Q2 Performance vs. Expectations Brands 207 243 (15%) (10%) • Brands: in line with expectations Complex Gx & Biosimilars 7 12 (46%) (43%) • Complex Gx: in line with expectations Generics 162 172 (6%) 1% •
Slide 10: Greater China
Greater China ($M) Q2 2023 Q2 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $532 $548 (3%) 2% Q2 Performance vs. Expectations Brands 530 546 (3%) 2% • Overall results driven by strong performance in Complex Gx & Biosimilars – – NM NM Viagra® and other retail driven products Generics 2 2 NM
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 Potential >$1B Annual Peak Net Sales Opportunity in 2027 Analytical Pivotal PK / Under Regulatory First to Market Product Indication Pre-Clinical Characterization Clinical Review Opportunity GlucagonTM Hypoglycemic Disorder Ven
Slide 13: Select Novel & Complex Products - Another Growth Catalyst
Select Novel & Complex Products - Another Growth Catalyst Potential >$1B Annual Peak Net Sales Opportunity in 2028 from Select Assets Under Pre- Anticipated Product Indication Phase I Phase II Phase III Regulatory Status Clinical Launch Year Review Treatment of Glatiramer PDUFA Date relapsing forms
Slide 14: Eye Care Portfolio & Pipeline
Eye Care Portfolio & Pipeline Projected to Add >$1B Net Sales by 2028 Regulatory Product Indication Pre-Clinical Phase I Phase II Phase III Status Approval Tyrvaya® Dry Eye Disease Launched 10/15/21 (Varenicline solution) NMPA Accepted MR-145-02 Dry Eye Disease (China) NDA Neurotrophic Keratopathy I
Slide 15: Q2 Financial Highlights
Q2 Financial Highlights This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 16: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights ($M) Q2 2023 Q2 2022(1) CHANGE OP CHANGE Total Net Sales $3,910 $4,105 (5%) (3%) Developed Markets 2,354 2,479 (5%) (6%) Emerging Markets 648 651 0% 8% JANZ 376 427 (12%) (6%) Greater China 532 548 (3%) 2% Other Revenues 9 11 NM NM Total Revenues $3,919 $4,117 (5%) (3%)
Slide 17: H1 2023 Financial Highlights
H1 2023 Financial Highlights ($M) H1 2023 H1 2022(1) CHANGE OP CHANGE Total Net Sales $7,629 $8,284 (8%) (4%) Developed Markets 4,524 4,955 (9%) (7%) Emerging Markets 1,290 1,356 (5%) 3% JANZ 718 851 (16%) (9%) Greater China 1,097 1,121 (2%) 3% Other Revenues 19 25 NM NM Total Revenues $7,648 $8,309
Slide 18: Q2 2023 Total Net Sales and Adjusted EBITDA Walk
Q2 2023 Total Net Sales and Adjusted EBITDA Walk Net Sales ($M) 3,944 3,910 92 3,852 10 76 124 Q2 2022 Adjusted Fx Q2 2022 at Existing New Product Tyrvaya® Q2 2023 Ex Biosimilars(1) 2023 Fx Rates Base Business Net Sales Erosion Adjusted EBITDA ($M) 1,455 1,416 39 72 105 9 49 93 1,306 10 Q2 2022 Adju
Slide 19: Q2 2023 Free Cash Flow
Q2 2023 Free Cash Flow ($M) Q2 2023 Q2 2022(1) CHANGE U.S. GAAP Net Cash Provided Q2 2023 Drivers vs. Q2 2022 $515 $803 (36%) by Operating Activities - Lower adjusted EBITDA including impact of biosimilars divestment and Capital Expenditures (68) (84) (19%) FX headwinds - Anticipated timing of worki
Slide 20: Capital Allocation – Delivering on our Financial Commitments
Capital Allocation – Delivering on our Financial Commitments • ~$181M in debt repayment in Q2 2023 ~$6.5B Free Cash Flow ~$6.1B Debt (1) repayment over last 10 quarters over last 10 quarters • On track to repay ~$1.3B of scheduled Debt 2023 debt maturities Notional Debt Outstanding(2) Repayment • No
Slide 21: 2023 Financial Guidance
2023 Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 22: Reaffirmed 2023 Financial Guidance
Reaffirmed 2023 Financial Guidance ($B) 2023 Estimated Ranges(1) 2023 Midpoint 2023 Guidance Phasing Total Revenues $15.5 - $16.0 $15.75 ‣ Expect Total Revenues to be higher in the second half vs the first half of 2023 Adjusted EBITDA $5.0 - $5.4 $5.2 ‣ Driven by new product launches Free Cash Flow
Slide 23: 2023 Capital Allocation Framework
2023 Capital Allocation Framework Supported by Free Cash Flow Generation ‣ Committed to investment grade rating ‣ Paydown of scheduled maturities totaling ~$1.3B and incremental debt paydown (~$727M paid down YTD) ‣ Expected annual dividend of $0.48 per share Proceeds from Planned Divestitures Expec
Slide 24: Appendix
Appendix This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 24
Slide 25: Q2 2023 Select Key Product Net Sales, on a Consolidated Basis
Q2 2023 Select Key Product Net Sales, on a Consolidated Basis (Unaudited; in millions) ($M) Q2 2023 H1 2023 ($M) Q2 2023 H1 2023 Select Key Global Products Select Key Segment Products Lipitor® $380.0 $797.9 Dymista® $57.7 $110.9 Norvasc® 182.4 385.1 Yupelri® 55.0 102.0 Lyrica® 137.1 281.4 Xanax® 51.
Slide 26: 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 27: Full-Year 2023 Guidance Items
Viatris Inc. and Subsidiaries Full-Year 2023 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $15,500 - $16,000 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 Note: For non-GAAP measures, se
Slide 28: 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 29: Adjusted Net Earnings
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP net earnings...............................................................................
Slide 30: 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP net earnings.....................................................................
Slide 31: Summary of Total Revenues by Segment – Q2 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q2 2023 Three Months Ended June 30, Divestiture 2023 Constant Constant 2022 Adjusted Adjusted 2023 Currency Currency Currency % 2022 Ex Biosimilars
Slide 32: Summary of Total Revenues by Segment – H1 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – H1 2023 Six Months Ended June 30, Divestiture 2023 Constant Constant 2022 Adjusted Adjusted 2023 Currency Currency Currency % 2022 Ex Biosimilars O
Slide 33: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP cost of sales.............................................................. $ 2,310.0 $
Slide 34: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP R&D............................................................... $ 208.3 $ 162.6 $ 391.2 $ 304.9
Slide 35: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP SG&A.................................................................................... $ 1,031.
Slide 36: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP total operating expenses...................................................... $ 1,239.4
Slide 37: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP interest expense................................................................... $ 143.7 $ 14
Slide 38: Other (Income) Expense, Net
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other (Income) Expense, Net Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP other (income) expense, net...................................................... $ (
Slide 39: 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 U.S. GAAP earnings before income taxes....................
Slide 40: Free Cash Flow over the Last 10 Quarters
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow over the Last 10 Quarters Year Ended Six Months Ended Free Cash Flow over December 31, 2021 December 31, 2022 June 30, 2023 the last 10 quarters U.S. GAAP net cash provided by operat
Slide 41: 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 June 30, 2023 to the sum of Viatris’ adjusted EBITDA for the q
Slide 42: 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 September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 U.S. GAAP net earnings..........................................................
Slide 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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.......................................................................................................