Slide 1: Q3 2023 Financial Results Update
Q3 2023 Financial Results Update November 8, 2023
Slide 2: Introduction
Introduction Q3 2023 Update PROPRIETARY AND CONFIDENTIAL
Slide 3: Safe Harbor Statement/Trademarks
INTRODUCTION Safe Harbor Statement/Trademarks This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the future performance of the Compa
Slide 4: Non-GAAP Financial Measures
INTRODUCTION Non-GAAP Financial Measures This presentation contains financial measures (Adjusted EBITDA, Adjusted Gross Margin, Adjusted Gross Margin %, Adjusted Revenues, Adjusted Cost of Sales) that are considered “non-GAAP” financial measures under applicable Securities and Exchange Commission ru
Slide 5: Agenda
INTRODUCTION Agenda Item Presenter Topic(s) 1 Haywood Miller • Execution on Strategic and Operational Priorities Interim CEO 2 Paul Williams • NARCAN® Nasal Spray Update SVP, Products Business 3 Rich Lindahl • Q3 Financial Review EVP, CFO and Treasurer • FY 2023 Guidance 4 Q&A Q3 2023 Update 5
Slide 6: State of the Company
State of the Company Haywood Miller Interim Chief Executive Officer Q3 2023 Update PROPRIETARY AND CONFIDENTIAL 6
Slide 7: Execution on Strategic and Operational Priorities
STATE OF THE COMPANY Execution on Strategic and Operational Priorities • Focus on delivering value through our life-saving products and returning to growth • Prioritization of our core products within Medical Countermeasures & NARCAN® • Recent strategic milestones in Products business help strengthe
Slide 8: Financials
Financials Rich Lindahl Executive Vice President and Chief Financial Officer Q3 2023 Update 8
Slide 9: Key Messages
FINANCIALS Key Messages • Key Focus on Medical Countermeasures, NARCAN®, and CDMO customer commitments • Continued momentum of NARCAN® • Cost Reduction efforts in flight • Q3 Revenue above Guidance Range • 2023 Guidance updated Q3 2023 Update 9
Slide 10: Notable Revenue Elements Q3 2023
FINANCIALS Notable Revenue Elements Q3 20231 ($ in millions) Q3 2023 Product sales, net (2): Anthrax MCM $ 32.9 NARCAN® 142.1 Smallpox MCM 24.7 Other Products 50.1 Total product sales, net $ 249.8 CDMO Revenues: Services $ 13.2 Leases 1.0 Total CDMO Revenues $ 14.2 Contracts and grants $ 6.5 Total r
Slide 11: Key Financial Performance Metrics Q3 2023
FINANCIALS Key Financial Performance Metrics Q3 2023 ($ in millions) Q3 2023 $86.0 32% 3% 33% 33% 38% 21% $15.3 8% Q3 Q3 Q3 Q3 2023 2023 2023 2023 R&D $ SG&A $ Gross Margin Adjusted --- --- Gross Margin3 1 R&D Margin % SG&A Margin %2 1. R&D Margin is calculated as Gross R&D Expense divided by Total
Slide 12: Segment Reporting Q3 2023
FINANCIALS Segment Reporting Q3 20231 ($ in millions) Q3 2023 PRODUCTS SEGMENT SERVICES SEGMENT $249.8 56% 62% $121.2 (155)% 49% $14.2 $(22.0) Q3 Q3 Q3 Q3 2023 2023 2023 2023 Revenue Adjusted Gross Margin2 Revenue Adjusted Gross Margin2 --- --- Adjusted Gross Margin2 % Adjusted Gross Margin2 % 1. Fo
Slide 13: Balance Sheet & Cash Flow Metrics
FINANCIALS Balance Sheet & Cash Flow Metrics ($ in millions) As of September 30, 2023 For the Nine Months Ended September 30, 2023 CASH $87.8 CASH USED IN OPERATING ACTIVITIES $(238.4) ACCOUNTS RECEIVABLE, NET $216.5 CASH PROVIDED BY INVESTING ACTIVITIES $223.7 INVENTORIES, NET $354.1 CAPITAL EXPEND
Slide 14: 2023 Forecast – Updated as of 11/08/2023
FINANCIALS 2023 Forecast – Updated as of 11/08/2023 METRIC Updated Range Previous Range ($ in millions) (as of 11/08/23) Action (as of 8/08/23) Total Revenues $1,000 - $1,100 UNCHANGED $1,000 - $1,100 Loss before income taxes $(726)-$(626) NEW Adjusted EBITDA (1) $(25) - $75 REVISED $50 - $100 (1) A
Slide 15: Summary
FINANCIALS Summary • Strong third quarter results • Delivered many important milestones • Progress on strengthening our business fundamentals • Strengthening quality and compliance across the organization • Solid foundation to build upon going forward Q3 2023 Update 15
Slide 16: Q&A
Q&A Q3 2023 Update PROPRIETARY AND CONFIDENTIAL 16
Slide 17: Appendix
Appendix Q3 2023 Update 17
Slide 18: Reconciliation of Loss before Income Taxes to Adjusted EBITDA – Q3 2023
APPENDIX Reconciliation of Loss before Income Taxes to Adjusted EBITDA – Q3 2023 Three Months Ended September 30, ($ in millions) 2023 Loss before income taxes $ (265.9) Adjustments: Depreciation & amortization $ 27.9 Total interest expense, net 19.4 Impairments 218.2 Changes in fair value of contin
Slide 19: Reconciliation of Loss before Income Taxes to Adjusted EBITDA – FY 2023 Forecast
APPENDIX Reconciliation of Loss before Income Taxes to Adjusted EBITDA – FY 2023 Forecast ($ in millions) 2023 Revised Full Year Forecast Loss before income taxes $(726) - $(626) Adjustments: Depreciation & amortization $122 Total interest expense, net 81 Impairments 525 Inventory step-up provision
Slide 20: Reconciliation of Total Revenues to Adjusted Revenues – Q3 2023
APPENDIX Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q3 2023 Three Months Ended September 30, ($ in millions) 2023 Total revenues $ 270.5 Contract and grants
Slide 21: Reconciliation of Total Revenues to Adjusted Revenues – FY 2023 Forecast
APPENDIX Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – FY 2023 Forecast ($ in millions) 2023 Revised Full Year Forecast Total Revenues $1,000 - $1,100 Contract
Slide 22: Reconciliation of Segment Level Revenues and Gross Margin – Q3 2023
APPENDIX Reconciliation of Segment Level (Products and Services) Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q3 2023 Products Services Quarter Ended September 30, Quarter Ende
Slide 23: www.emergentbiosolutions.com
www.emergentbiosolutions.com 23