Slide 1: Second Quarter 2022 Earnings Conference Call
embecta Second Quarter 2022 Earnings Conference Call May 13, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements
Slide 3: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast are available online in the investors section of embecta’s website, at www.embecta.com An audio replay of the call will be available beginning at 11:00am ET on May 13, 2022, either on the embecta website or by telephone.
Slide 4: Today's Speakers
Today’s Speakers Dev Kurdikar Chief Executive Officer Jake Elguicze Chief Financial Officer 4
Slide 5: Mission and Vision
Mission To develop and provide solutions that make life better for people living with diabetes Advance every day together Vision A life unlimited Spin from BD completed and by diabetes independent company as of April 1, 2022 5
Slide 6: embecta's Enduring Strengths
embecta’s Enduring Strengths Trusted leader with best-in-class products and unmatched capabilities Trusted leader in the Best-in-class products Unmatched manufacturing, global marketplace: and brand: distribution and sales capabilities: The largest producer of Trusted brand leadership Produce ~7.6B
Slide 7: embecta's Strong Position
embecta’s Strong Position Our stable core provides the foundation for new growth opportunities Strong, trusted core An expanding Immediate benefits Opportunities business category of the spin for growth Established brand Pure-play diabetes Compelling financial Deliver organic growth loyalty
Slide 8: Executive Summary of Q2 and 1H 2022 Results
Executive Summary of Q2 and 1H 2022 Results Successfully executed the planned spinoff from BD on April 1, 2022, giving embecta the strategic, operational, and financial independence, and opportunity to optimize its product portfolio and achieve more efficient resource and capital allocation to addre
Slide 9: Q2 and Year-to-Date 2022 vs. 2021 Financial Results
Q2 and Year-to-Date 2022 vs. 2021 Financial Results • Q2’22 revenue of $274.5 million, down 3.4% vs. prior year period on an as-reported basis; down 1.3% on a constant currency basis Revenue • March ‘22 year-to-date revenue of $563.8 million, down 1.0% vs. prior year period on an as-reported basis;
Slide 10: 2H'22 Financial Guidance Assumptions
2H’22 Financial Guidance Assumptions 2H’22 financial projections include: • Contract manufacturing agreement impacts (e.g. impact of cannula supply agreement; embecta to BD revenue) • Holdrege lease and factoring agreement expense • Transition Service Agreement expense • Estimated public company sta
Slide 11: 2H'22 Financial Guidance
2H’22 Financial Guidance Revenue • 2H’22 total revenue of ~$555 million • Decrease of ~7.0% on an as-reported basis • Decrease of ~3.5% on a constant currency basis • 2H’22 contract manufacturing revenue of ~$15 million Non-GAAP Gross Margin • 2H’22 non-GAAP gross margin1 in the “low-60%s” • 2H’22 c
Slide 12: A Strong embecta From Day 1
A Strong embecta From Day 1 Steady core provides basis for growth Our core provides basis Broadly defensible core We have strong for growth: business: organizational capabilities: We launch with a healthy Our IP position, Our unique opportunities balance sheet and steady manufacturing strengths, and
Slide 13: Our Business Provides a Financial Foundation for Growth
Our Business Provides a Financial Foundation for Growth Business model and a healthy balance sheet provide a strong core Stable, recurring, geographically- Healthy margin Strong cash flow Modest leverage Starting cash diversified profile generation at spin balance revenue base Vast majority of PWD B
Slide 14: Strategic Investments to Accelerate our Long-term Growth Profile
Strategic Investments to Accelerate our Long-term Growth Profile Including commercial investments, next-gen products, and M&A Expand and penetrate Stronger R&D: M&A potential: through the core: We have opportunities to We can enter the T2D market We will seek partnerships drive growth in the core wi
Slide 15: Thank you
Thank you
Slide 16: Appendix
Appendix embecta
Slide 17: Q2 and Year-to-Date 2022 vs. 2021 Segment Revenue
Q2 and Year-to-Date 2022 vs. 2021 Segment Revenue Three Months Ended % Increase / Decrease As-Reported Currency Constant Currency March 31, 2022 March 31, 2021 Revenue Growth Impact Revenue Growth U.S. 139.8 148.4 (5.8%) 0.0% (5.8%) International 134.7 135.8 (0.8%) (4.4%) 3.6% Total 274.5 284.2 (3.4
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in Millions Three Months Ended Six Months Ended March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Net income $79.6 $107.9 $178.4 $213.2 Interest expense 4.9 — 4.9 — Income taxes 14.3 20.6 32.1 40.4 Depreciation 6.4 9.7 14.8 19.0 Amortization of intang