Slide 1: Q1 2021 Earnings
VIATRIS Q1 2021 Earnings May 10, 2021 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc.,
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, reaffirming Viatris’ 2021 gui
Slide 3: Key References
Key References The combined measures described herein are calculated as indicated, are reflected as approximations and/or with rounding, and do not reflect pro forma results in accordance with ASC 805 or Article 11 of Regulation S-X. Such measures also do not reflect the effect of any purchase accou
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("U.S. GAAP"). These non-GAAP financial measures, including, but not limited
Slide 5: Q1 2021 Earnings Call Agenda
Q1 2021 Earnings Call Agenda Michael Goettler, CEO • Strong Results & Execution • Inaugural Sustainability Report Rajiv Malik, President • Segment Results • Pipeline Update • Integration & Restructuring Update Sanjeev Narula, CFO • Q1 Financial Highlights • 2021 Financial Guidance This document cont
Slide 6: Q1 2021 - Strong Results & Execution
Q1 2021 - Strong Results & Execution Business • Strong Net Sales $4.4B and adjusted EBITDA $1.6B Performance • Strong Free Cash Flow $799M & Execution • Results validate Diversified and Robust Business Model Deep Market • $163M New Product Launch Revenue Expertise Delivering Delivring the • On Track
Slide 7: Sustainability is Fundamental to Our Mission
Sustainability is Fundamental to Our Mission Viatris’ inaugural Sustainability Report demonstrates how our commitment to corporate responsibility is integrated across our business and operations. Sustainable access to medicine drives our work to achieve: Patient Health: Global Public Health: with me
Slide 8: Q1 2021 - Strong Results & Execution
Q1 2021 - Strong Results & Execution Business • Strong Net Sales $4.4B and adjusted EBITDA $1.6B Performance • Strong Free Cash Flow $799M & Execution • Results validate Diversified and Robust Business Model Deep Market • $163M New Product Launch Revenue Expertise Delivering Delivring the • On Track
Slide 9: Segment Results
Segment Results This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 9
Slide 10: Total Net Sales
Total Net Sales Combined Highlights Adjusted ▪ Q1 Performance ($M) Q1 2021 Q1 2020 Change Op Chg • Product categories and segments performed on the Total Net Sales $4,400 $4,476 (2%) (6%) upper end of expectations Brands $2,725 $2,825 (4%) (8%) • ~3% negative COVID-19 impact vs Q1 2020; in line Comp
Slide 11: Developed Markets
Developed Markets Combined Highlights Adjusted ▪ Q1 Performance ($M) Q1 2021 Q1 2020 Change Op Chg • Europe net sales of $1.4B Net Sales $2,572 $ 2,587 (1%) (5%) Brands $1,404 $1,385 1% (5%) • North America net sales of $1.2B Complex Gx & Biosimilars $312 $242 29% 27% • Brands: better than expected
Slide 12: Emerging Markets
Emerging Markets Combined Highlights Adjusted ▪ Q1 Performance ($M) Q1 2021 Q1 2020 Change Op Chg • Brands: COVID-19 negatively impacted lifestyle brands Net Sales $755 $ 783 (4%) (5%) • Complex Gx & Biosimilars: continued expansion of the Brands $446 $487 (8%) (8%) business across the segment Compl
Slide 13: JANZ
JANZ Combined Highlights Adjusted ▪ Q1 Performance ($M) Q1 2021 Q1 2020 Change Op Chg • Brands: Net Sales $482 $605 (20%) (25%) Net Sales – Strong performance driven by Amitiza, Lipitor® and Creon ex Impact of Lyrica® & Celebrex® LOEs $482 $399 21% 14% – Lyrica® Franchise: in line with expectations
Slide 14: Greater China
Greater China Combined Highlights Adjusted ▪ Q1 Performance ($M) Q1 2021 Q1 2020 Change Op Chg • Fully integrated business well-positioned: Net Sales $592 $501 18% 9% Brands $591 $501 18% 9% – Greater China retail channel grew by ~30% year over year Complex Gx & Biosimilars $0 $0 NM NM – Greater Chi
Slide 15: Diversity and Resilience Through COVID-19
Diversity and Resilience Through COVID-19 Network Diversity1 Highlights ▪ Health and safety of our employees remains top priority manufacturing facilities located ~50 in 5 continents and 15 countries ▪ Commercial performance as anticipated • Continued remote working of salesforce in certain markets
Slide 16: Pipeline Update
Pipeline Update This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 16
Slide 17: Biosimilars Key Pipeline Updates
Biosimilars Key Pipeline Updates Confirmatory Process PK/PD* Approval → Product Therapeutic Area Cell line Preclinical Clinical BLA/MAA** Development (Phase 1) RWE (Ph IV) (Phase 3) Pertuzumab (Perjeta®) Oncology Diabetes & Insulin glargine 300 U/mL (Toujeo®) Metabolism Onabotulinumtoxin A (BOTOX®)
Slide 18: Complex Products Key Pipeline Updates
Complex Products Key Pipeline Updates Confirmatory Formulation / PK/PD Phase 1 Product Therapeutic Area Pre-Clinical Clinical Submission Approval Development and Phase 2 (Phase 3) Meloxicam CNS & Anesthesia Glatiramer Once Monthly CNS Delamanid Tablets Infectious Disease Pretomanid Tablets Infectiou
Slide 19: Complex Injectables Key Pipeline Updates
Complex Injectables Key Pipeline Updates Registration / Early Phase Formulation / Product Therapeutic Area Q1 / Q2 Confirmed Exhibit / Clinical Clinical Submission Development Development Batches Risperidone (Risperdal Consta) CNS & Anesthesia Octreotide Acetate (Sandostatin LAR) CNS & Anesthesia Pa
Slide 20: Integration & Restructuring Update
Integration & Restructuring Update This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a
Slide 21: Integration & Restructuring Update
Integration & Restructuring Update 2021 2022 2023 Close/Divest Identified Manufacturing Sites COGS Execute Procurement & COGS Optimization Optimize/Reduce Overlapping Commercial & Functional Infrastructure SG&A Establish/Implement Centers of Excellence TSA/MSA Exit TSAs & MSAs Expected Annual Saving
Slide 22: Q1 Financial Highlights
Q1 Financial Highlights This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 23: Q1 2021 Financial Highlights (Reported)
Q1 2021 Financial Highlights (Reported) ($M) Q1 2021 Q1 2020* CHANGE Total Net Sales $4,400 $2,588 70% Developed Markets $2,572 $1,986 29% Emerging Markets $755 $343 120% JANZ $482 $243 98% Greater China $592 $15 NM Other Revenues $30 $31 (3%) Total Revenues $4,430 $2,619 69% Adjusted Gross Margin %
Slide 24: Q1 2021 Net Sales Walk vs. Combined Adjusted Q1 2020
Q1 2021 Net Sales Walk vs. Combined Adjusted Q1 2020 ($M) 206 209 131 163 4,476 111 4,400 4,270 Combined Japan LOE Declines Combined LOE COVID-19 Base Business New Product FX Q1 2021 Adjusted Q1 2020 (Lyrica and Celebrex) Adjusted Q1 2020 Erosion Revenue See slide 3 for more information on operation
Slide 25: Q1 2021 Adjusted EBITDA Walk vs. Combined Adjusted Q1 2020
Q1 2021 Adjusted EBITDA Walk vs. Combined Adjusted Q1 2020 ($M) Adjusted 40.5% EBITDA Margin 131 Adjusted 36.9% EBITDA Margin 58 47 109 96 1,827 99 64 1,696 1,637 Combined Japan GM LOE Combined LOE D&A COVID-19 Base Business New Product GM SG&A FX Q1 2021 Adjusted Q1 2020 Declines (Lyrica Adjusted Q
Slide 26: Q1 2021 Free Cash Flow
Q1 2021 Free Cash Flow ($M) Q1 2021 U.S. GAAP Net Cash Provided by Operating Activities $849 Strong Q1 Performance Capital Expenditures ($50) • Favorable Trends in Q1 2021 Free Cash Flow $799 Collections, Timing of Operating and Tax ▸ $0.11/share First Dividend Declared Payments Capital ⁃ 3 Payments
Slide 27: 2021 Financial Guidance
2021 Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 28: 2021 Financial Guidance Reaffirmed
2021 Financial Guidance Reaffirmed Estimated Ranges Midpoint Key Assumptions Revenue $17.2B - $17.8B $17.5B • COVID-19 Continues to be a Adjusted EBITDA $6.0B - $6.4B $6.2B Headwind, Assumes Gradual Free Cash Flow $2.0B - $2.3B $2.15B1 Recovery Beginning in 2H 2021 Key Metrics Utilized for 2021 Guid
Slide 29: 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. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatr
Slide 30: Full Year 2021 Guidance Items
Full Year 2021 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Revenues $17,200 - $17,800 N/A Net Loss $(100) - $(300) N/A Adjusted EBITDA N/A $6,000 - $6,400 Net Cash provided by Operating Activities $2,650 - $2,800 N/A Free Cash Flow N/A $2,000 - $2,300 This document contains proprietary inf
Slide 31: Reconciliation of Estimated 2021 GAAP Net Loss to Adjusted EBITDA
Reconciliation of Estimated 2021 GAAP Net Loss to Non-GAAP Adjusted EBITDA (Unaudited; in millions) A reconciliation of the estimated 2021 GAAP Net Loss to Non-GAAP Adjusted EBITDA and the items excluded from Adjusted EBITDA is presented below. Estimated GAAP Net Loss $(100) - (300) Adjusted EBITDA
Slide 32: 2021 Non-GAAP Financial Metrics
Key metrics Utilized for 2021 Guidance (Unaudited; in millions, except percentages) GAAP Non-GAAP 2021 Non-GAAP Financial Metrics The Non-GAAP financial metric Adjusted Gross Margin as a Gross margin as a % of revenue 31.0 - 33.0% 58.0 - 59.0% percentage of Revenues excludes the impact of Depreciati
Slide 33: Reconciliation of Non-GAAP Financial Measures: Adjusted Net Earnings
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended March 31, (In millions) 2021 2020 U.S. GAAP net (loss) earnings $ (1,037.6) $ 20.8 Purchase accounting related amortization (primarily included in cost of sal
Slide 34: Reconciliation of Non-GAAP Financial Measures: 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 March 31, (In millions) 2021 2020 U.S. GAAP net (loss) earnings $ (1,037.6) $ 20.8 Add adjustments: Net contribution attributable to equity method i
Slide 35: Reconciliation: Total Revenues by Segment
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Summary of Total Revenues by Segment Three Months Ended March 31, 2021 Constant Constant 2021 Currency Currency Currency % 2021 2020 % Change Impact (1) Revenues Change (2) Net sales Developed Market
Slide 36: Reconciliation of Non-GAAP Financial Measures: Cost of Sales
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Cost of Sales Three Months Ended March 31, 2021 2020 U.S. GAAP cost of sales $ 3,303.0 $ 1,713.1 Deduct: Purchase accounting related amortization (1,255.0) (352.2) Acquisition related items (2.5) (0.
Slide 37: Reconciliation of Non-GAAP Financial Measures: R&D
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) R&D Three Months Ended March 31, 2021 2020 U.S. GAAP R&D $ 184.1 $ 114.2 Deduct: Acquisition related costs (0.1) — Restructuring and related costs (6.4) (0.2) Share-based compensation expense (1.1) (
Slide 38: Reconciliation of Non-GAAP Financial Measures: SG&A
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) SG&A Three Months Ended March 31, 2021 2020 U.S. GAAP SG&A $ 1,186.5 $ 605.4 Add / (Deduct): Acquisition related costs (57.2) (22.2) Restructuring and related costs (141.2) (3.7) Share-based compensa
Slide 39: Reconciliation of Non-GAAP Financial Measures: Total Operating Expenses
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended March 31, 2021 2020 U.S. GAAP total operating expenses $ 1,393.5 $ 721.4 (Deduct): Litigation settlements and other contingencies, net (22.9) (1.8) R&D adj
Slide 40: Reconciliation of Non-GAAP Financial Measures: Interest Expenses
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expenses Three Months Ended March 31, 2021 2020 U.S. GAAP interest expense $ 169.0 $ 119.9 Add/(Deduct): Amortization of premiums and discounts on long-term debt 16.0 (1.4) Other special ite
Slide 41: Reconciliation of Non-GAAP Financial Measures: Other Expenses
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other Expenses Three Months Ended March 31, 2021 2020 U.S. GAAP other expense, net $ 6.1 $ 34.1 Add / (Deduct): Clean energy investments pre-tax loss (a) (17.9) (17.3) Other items — 0.4 Adjusted othe
Slide 42: Reconciliation: Earnings Before Income Taxes and Tax Provision
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Earnings Before Income Taxes and Income Tax Provision Three Months Ended March 31, 2021 2020 U.S. GAAP (loss) earnings before income taxes $ (441.3) $ 30.7 Total pre-tax non-GAAP adjustments 1,811.1
Slide 43: Reconciliation of Non-GAAP Financial Measures: Combined Adjusted EBITDA
Viatris Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Combined Adjusted EBITDA Three Months Ended (In millions) March 31, 2020 Upjohn - U.S. GAAP Income before taxes $ 885.3 Interest expense 53.7 Depreciation and amortization 76.8 Upjohn EBITDA $ 1,015.
Slide 44: Appendix
Appendix This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 44
Slide 45: Q1 2021 Key Product Net Sales
Q1 2021 Key Product Net Sales ($M) Total Select Key Global Products Lipitor® $465 Norvasc® $228 Lyrica® $188 Viagra® $140 EpiPen® Auto-Injectors $104 Celebrex® $89 Effexor® $77 Zoloft® $77 Creon® $70 Xalabrands $58 Select Key Segment Products Amitiza® $46 Xanax® $45 Dymista® $40 Yupelri® $37 The Com