Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX

Amneal Pharmaceuticals — Q1 2019 Earnings Presentation

34 slides from Amneal Pharmaceuticals's earnings presentation, May 9, 2019

1. Slide 1: Q1 2019 Earnings Call Financial Results and Business Update

   “We make healthy possible” Q1 2019 Earnings Call Financial Results and Business Update May 9, 2019

2. Slide 2: Safe Harbor Statement

   Safe Harbor Statement Safe Harbor Statement Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward- looking statements include statements regarding mana

3. Slide 3: Non-GAAP Financial Measures

   Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures, including adjusted EBITDA, adjusted net income, adjusted net income per diluted share, adjusted gross profit, adjusted gross margin, adjusted operating income, net debt and gross debt, which are intended as s

4. Slide 4: Agenda

   Agenda Q1 2019 Highlights 1 Rob Stewart, President & CEO Financial Results Review 2 Todd Branning, SVP & CFO Closing Remarks 3 Rob Stewart 4 Q&A 4

5. Slide 5: Performance and Highlights

   Performance and Highlights Rob Stewart President & CEO

6. Slide 6: Q1 2019: Off to a Good Start

   Q1 2019: Off to a Good Start  Successfully transitioned Levothyroxine agreement Operational Execution  Divested Creo Pharma for cash consideration of $36 million(1)  Continued Generic pipeline execution: 11 approvals + 2 tentative approvals  Launched 6 new Generic products: Positioned to launch

7. Slide 7: Q1 2019 Financial Results

   Q1 2019 Financial Results Combined net revenue and adjusted EBITDA(1) growth driven by Generics segment performance, growth of Rytary® and Unithroid®, and synergy capture, which more than offset Generic base business erosion and the loss of exclusivity of Albenza® Non-GAAP Non-GAAP Non-GAAP Combined

8. Slide 8: Q1 2019 Generics Segment Performance

   Q1 2019 Generics Segment Performance Non-GAAP  Benefited from 2018 new product launches Combined Net Revenue(1) including Levothyroxine ‒ More than offset the impact of additional +7% competition on base business $356 $382  6 products launched in Q1 ‒ Rivastigmine; first transdermal patch  Capita

9. Slide 9: Diversified Generic Pipeline to Drive Future Growth

   Diversified Generic Pipeline to Drive Future Growth Amneal’s Submitted Pipeline(1) Submitted % 2018 U.S.  Continued R&D execution Dosage Form Sales(2) Products Portfolio $ billions ‒ Year-to-date May 2019 IR Tablet 28 27% 18.2 • 14 ANDAs approved including Injectable 17 16% 7.8 first transdermal pa

10. Slide 10: Focusing Generic R&D on Complex, High-Value Products

    Focusing Generic R&D on Complex, High-Value Products Amneal’s Development Pipeline(1) R&D investments targeting valuable 2018 U.S. % and durable product opportunities Dosage Form Development Portfolio Sales(2) $ billions Injectable 22 28% 5.8 Capsule/ Soft Gel 13 17% 2.4 Ophthalmic 11 14% 1.1 IR Tab

11. Slide 11: Q1 2019 Specialty Segment Performance

    Q1 2019 Specialty Segment Performance Non-GAAP  Rytary® Combined Net Revenue(1) ‒ TRx growth 14%; NRx 11% vs Q1 2018 ‒ ~12MM additional covered Med-D lives with Humana and United Healthcare -7% $69  Unithroid® $64 ‒ TRx growth 28%; NRx 37% vs Q1 2018  Results impacted by the decline in Albenza® r

12. Slide 12: Financial Review

    Financial Review Todd Branning SVP & CFO

13. Slide 13: Generic Segment Results

    Generic Segment Results Key Drivers: Combined Adjusted(1) Results Combined Adjusted(1) Year-Over-Year: Revenue Up 7% Variance  Benefit of 2018 product launches, including Levothyroxine  Partially offset by additional competition on older portfolio Q1 Q1 Q4 products, including Oseltamivir and Aspir

14. Slide 14: Specialty Segment Results

    Specialty Segment Results Combined Adjusted(1) Key Drivers: Combined Adjusted(1) Results Variance Year-Over-Year: Revenue Down 7% Sequentially: Revenue Down 27% Q1 Q1 Q4  Year-over-year decline driven by lower sales of Albenza® due to YOY Sequential $ millions 2019 2018 2018 loss of exclusivity in

15. Slide 15: Balance Sheet and Cash Flow Information

    Balance Sheet and Cash Flow Information Q1 Q4 Key drivers: Cash flow from operations Variance 2019 2018  Lower revenues and operating income in Q1 2019 compared to Q4 2018 $ millions  Timing of collections of trade accounts receivable Cash and cash equivalents $64 $213 ($149) ‒ Order-to-cash conve

16. Slide 16: Closing Remarks

    Closing Remarks Rob Stewart President & CEO

17. Slide 17: Reaffirming 2019 Financial Outlook

    Reaffirming 2019 Financial Outlook(1) 2019 Outlook(1) Adjusted Gross Margin 47% - 50% Adjusted R&D as a % of net revenues 9% - 10% Adjusted SG&A as a % of net revenues 11% - 12% Adjusted EBITDA $600 million - $650 million Adjusted Diluted EPS $0.94 - $1.04 Adjusted Tax Rate 19% - 21% Capital Expendi

18. Slide 18: 2019 Strategic Priorities

    2019 Strategic Priorities Accelerate synergy capture Continue organic and optimize cost growth structure IMPROVE OPERATIONAL Further diversify CASH FLOW our business Drive operational through internal excellence R&D and external business development 18

19. Slide 19: Long-Term Priorities to Drive For Double-Digit Earnings Growth

    Long-Term Priorities to Drive For Double-Digit Earnings Growth OUR PORTFOLIO Continue to Drive Organic Growth FOCUS Ongoing investment in Generic and Specialty R&D Generics Pursue Creative Business Development Tuck-in acquisitions as well as larger transactions to Specialty strengthen key portfolios

20. Slide 20: Appendix

    2 amneal Appendix

21. Slide 21: Reconciliation of Non-GAAP Combined Revenue

    Reconciliation of Non-GAAP Combined Revenue (Unaudited: In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 (Non- (Non- Add: GAAP) Add: GAAP) Impax/ Impax/ Actual Gemini Combined Actual Gemini Combined Net revenue: Generics $ 382,477 $ — $ 382,477 $ 275,189 $ 81,242 $ 3

22. Slide 22: Reconciliation of Net (Loss) Income to EBITDA and Combined Adjusted EBITDA

    Reconciliation of Net (Loss) Income to EBITDA and Combined Adjusted EBITDA (Unaudited: In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 (Non-GAAP) (Non-GAAP) (Non-GAAP) Add: Add: Add: Impax/ Impax/ Impax/ Actual Gemini Combined Ac

23. Slide 23: Reconciliation of Net (Loss) Income to EBITDA and Combined Adjusted EBITDA

    Reconciliation of Net (Loss) Income to EBITDA and Combined Adjusted EBITDA (Unaudited: In thousands) Three months ended Sept. 30, 2018 Three months ended June 30, 2018 Add: Add: Actual Impax/ Gemini Combined GAAP Impax/ Gemini Combined Net income $ 17,465 $ — $ 17,465 Net loss $(250,090) $(23,006) $

24. Slide 24: Gross Debt and Net Debt to Combined Adjusted EBITDA

    Gross Debt and Net Debt to Combined Adjusted EBITDA ($ in thousands) LTM LTM March 31, 2019 December 31, 2018 Current portion of long-term debt, net $ 21,445 $ 21,445 Long-term Debt , net 2,625,152 2,630,598 Cash and cash equivalents 63,946 213,394 Net debt 2,582,651 2,438,649 Combined Adjusted EBIT

25. Slide 25: Net (Loss) Income to Combined Adjusted Net Income and Adjusted Diluted EPS

    Reconciliation of Net (Loss) Income to Combined Adjusted Net Income and Calculation of Adjusted Diluted EPS (Unaudited; In thousands, except per share amounts) Three months ended March 31, 2019 Three months ended March 31, 2018 (Non-GAAP) (Non-GAAP) Add: Add: Impax/ Impax/ Actual Gemini Combined Act

26. Slide 26: Generics Operating Income to Generics Combined Operating Income

    Reconciliation of Generics Operating Income to Generics Combined Operating Income (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 Add: (Non-GAAP) Add: (Non-GAAP) Add: (Non-GAAP) Impax/ Impax/ Impax/ Actual Gemini Comb

27. Slide 27: Generics Cost of Goods Sold to Combined Adjusted Cost of Goods Sold

    Reconciliation of Generics Cost of Goods Sold to Generics Combined Adjusted Cost of Goods Sold (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 (Non-GAAP) (Non-GAAP) (Non-GAAP) Add: Add: Add: Actual Impax/ Gemini Combi

28. Slide 28: Generics Operating (Loss) Income to Combined Adjusted Operating Income

    Reconciliation of Generics Operating (Loss) Income to Generics Combined Adjusted Operating Income (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 (Non-GAAP) (Non-GAAP) (Non-GAAP) Add: Add: Add: Actual Impax/ Gemini Co

29. Slide 29: Specialty Operating Income to Specialty Combined Operating Income

    Reconciliation of Specialty Operating Income to Specialty Combined Operating Income (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 (Non-GAAP) (Non-GAAP) (Non-GAAP) Add: Add: Add: Impax/ Impax/ Impax/ Actual Gemini Co

30. Slide 30: Specialty Cost of Goods Sold to Combined Adjusted Cost of Goods Sold

    Reconciliation of Specialty Cost of Goods Sold to Specialty Combined Adjusted Cost of Goods Sold (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 (Non-GAAP) (Non-GAAP) (Non-GAAP) Add: Add: Add: Actual Impax/ Gemini Com

31. Slide 31: Specialty Operating (Loss) Income to Combined Adjusted Operating Income

    Reconciliation of Specialty Operating (Loss) Income to Specialty Combined Adjusted Operating Income (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 Three months ended December 31, 2018 (Non-GAAP) (Non-GAAP) (Non-GAAP) Add: Add: Add: Actual Impax/ Gemini

32. Slide 32: SG&A to Combined Adjusted SG&A

    Reconciliation of SG&A to Combined Adjusted SG&A (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 (Non-GAAP) (Non-GAAP) Add: Add: Actual Impax/ Gemini Combined Actual Impax/ Gemini Combined Selling, general and administrative expenses $ 84,436 $ — $ 84,43

33. Slide 33: Research and Development to Combined Adjusted Research and Development

    Reconciliation of Research and Development to Combined Adjusted Research and Development (Unaudited; In thousands) Three months ended March 31, 2019 Three months ended March 31, 2018 (Non-GAAP) (Non-GAAP) Add: Add: Actual Impax/ Gemini Combined Actual Impax/ Gemini Combined Research and development

34. Slide 34: General Administrative and Other Operating Expenses to Combined

    Reconciliation of General Administrative and Other Operating Expenses to Combined General Administrative and Other Operating Expenses Three months ended March 31, 2019 Three months ended March 31, 2018 (Non-GAAP) (Non-GAAP) Add: Add: Actual Impax/ Gemini Combined Actual Impax/ Gemini Combined Genera

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