Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — J.P. Morgan Healthcare Conference 2024
20 slides from Elanco Animal Health's conference presentation, Jan 8, 2024
Slide 1: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference January 9, 2024 Jeff Simmons President & Chief Executive Officer
Slide 2: Forward-Looking Statements
© 2024 Elanco or its affiliates This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act), including, without limitation, our long-term revenue and earnings growth expect
Slide 3: Today's Key Messages
Today’s Key Messages Attractive industry backdrop for Elanco – a global, independent Animal Health leader Our Innovation, Portfolio, Productivity (IPP) strategy designed to deliver value to all stakeholders, rooted in a deep focus on the customer Q3 2023 return to topline growth driven by accelerati
Slide 4: Animal Health: Attractive, Growing Markets with Positive Long-Term Tailwinds
4 Farm Animal $23B Global Industry1 Protein demand growth globally driven by GDP growth, expanding protein diets, and efficient trade Producers focused on food safety, disease prevention and productivity Livestock sustainability expected to create the next industry opportunity Animal Health: Attract
Slide 5: Elanco: An Independent, Global Animal Health Leader
5 Elanco: An Independent, Global Animal Health Leader 1Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations. 2 Potential blockbusters expected in 2024 are Bovaer, Credelio Quattro, and Zenrelia Note: Revenue breakdowns based o
Slide 6: IPP: Innovation, Portfolio, Productivity
© 2024 Elanco or its affiliates n I novation Portfolio Productivity Customer Veterinarian Farmer Pet Owner IPP: Innovation, Portfolio, Productivity Elanco’s Strategy to Deliver Value to All Stakeholders, Rooted in a Deep Focus on the Customer Deliver consistent, high-impact Innovation • $600-$700 mi
Slide 7: Focused on Delivering Consistent, High Impact Innovation
7 Focused on Delivering Consistent, High Impact Innovation With three clear parallel priorities for the R&D organization Life Cycle Management Extending the life and value of our existing brands with targeted life cycle management (LCM) is core to Elanco’s value proposition to customers and contribu
Slide 8: Blockbuster-Potential Products
8 nI novation Portfolio Productivity Customer 1Blockbuster refers to product with annual revenue above $100 million. 2Expected submission and launch timing is based on internal estimates and could change as programs evolve. 3Potential approval timing is subject to regulatory agency outcomes. 4 Indus
Slide 9: Global Pet Health Strategic Framework
© 2024 Elanco or its affiliates Vision Helping pets live longer, healthier, more active lives Where We Play J.P. Morgan Healthcare Conference | January 2024 1 US only. 2Expected trade name upon approval. Global Pet Health Strategic Framework FAMILY FAMILY ZENRELIATM 2 IL-31 MAb Parasiticides Dermato
Slide 10: Global Pet Health Strategic Framework: Key Enablers
© 2024 Elanco or its affiliates Key Enablers Innovation Address unmet needs and expand portfolio Share of Voice Increase product awareness with our customers Physical Availability Maximize access to our products Price Execution Optimize value based on willingness to pay 1 US only. J.P. Morgan Health
Slide 11: Global Farm Animal Strategic Framework
© 2024 Elanco or its affiliates Global Farm Animal Strategic Framework Vision Helping farmers improve animal health and wellbeing, and raise livestock more sustainably 1Expected trade name upon approval. J.P. Morgan Healthcare Conference | January 2024 Where We Play Efficiency & Performance Disease
Slide 12: Global Farm Animal Strategic Framework: Key Enablers
© 2024 Elanco or its affiliates Global Farm Animal Strategic Framework Vision Helping farmers improve animal health and wellbeing, and raise livestock more sustainably J.P. Morgan Healthcare Conference | January 2024 Where We Play Efficiency & Performance Disease Prevention & Treatment Food Safety S
Slide 13: Improve Productivity and Cash Flow
13 Improve Productivity and Cash Flow IPO to 2023 Improving cash conversion through • Reduced project expense • Continued productivity improvements • Improvement in NWC, led by inventory • New high-margin blockbuster innovation Key Proof Points Expanded Margins ~$400 million of manufacturing product
Slide 14: H2 2023 Marks Expected Return to Topline Growth
H2 2023 Marks Expected Return to Topline Growth Revenue Year-over-year CC1 Change Innovation Ramp Price Growth Improved Supply Improved EU Pet Retail Environment Growth in Poultry 1CC = Constant Currency, representing the growth rate excluding the impact of foreign exchange rates. 2Based on company’
Slide 15: Early Considerations for 2024, Continued Revenue Growth
1Expect revenue growth in constant currency, representing the growth rate excluding the impact of foreign exchange rates, driven by existing portfolio is achievable before new blockbuster-potential launches. Tailwinds Existing innovation ramp and 3 new blockbuster-potential launches Expanded physica
Slide 16: Elanco: A Compelling Long-Term Value Proposition
Attractive, Growing Markets Progressing a Valuable Late-Stage Pipeline Disciplined Delivery, Infrastructure Optimization Improving Financial Profile An Established Market Leader ~$38B global industry across Pet Health ($15B) and Farm Animal ($23B) with consistent mid-single digit growth driven by du
Slide 17: Guidance and GAAP to non-GAAP reconciliations
Guidance and GAAP reported to non-GAAP adjusted reconciliations Appendix 17
Slide 18: Full Year 2023 Financial Guidance
Full Year 2023 Financial Guidance1 $ millions, except per share values 2023 Revenue $4,360 - $4,400 Reported Net Loss $(1,204) - $(1,174) Adjusted EBITDA2 $965 - $1,000 Reported Diluted EPS $(2.43) - $(2.37) Adjusted Diluted EPS2 $0.88 - $0.94 1Represents 2023 full year guidance, as provided in the
Slide 19: EPS Guidance Reconciliation
Full Year 2023 Reported Loss per Share $(2.43) - $(2.37) Amortization of Intangible Assets Approx. $1.11 Asset Impairment, Restructuring, and Other Special Charges2 $0.19 - $0.21 Goodwill Impairment3 $2.11 Other Expenses, Net Approx. $0.06 Subtotal $3.47 - $3.49 Tax Impact of Adjustments $(0.18) - $
Slide 20: EBITDA Guidance Reconciliation
Full Year 2023 $ millions Reported Net Loss $(1,204) - $(1,174) Net Interest Expense Approx. $280 Income Tax Provision $27 - $44 Depreciation and Amortization Approx. $695 EBITDA $(199) - $(154) Non-GAAP Adjustments Cost of Sales Approx. $2 Asset Impairment, Restructuring, and Other Special Charges
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