Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
30 slides from Emergent Biosolutions's conference presentation, Jan 13, 2020
Slide 1: Corporate Overview, 38th Annual J.P. Morgan Healthcare Conference
Corporate Overview 38th Annual J.P. Morgan Healthcare Conference Robert G. Kramer Sr. President and Chief Executive Officer January 14, 2020
Slide 2: Forward-looking statements / Non-GAAP financial measures / trademarks
Forward-looking statements / Non-GAAP financial measures / trademarks Safe-Harbor Statement This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without l
Slide 3: Our vision and focus
Our vision To become a Fortune 500 global life sciences company recognized for protecting and enhancing life, driving innovation and living our values Our focus • CBRNE • Emerging Health Crises • Emerging Infectious Disease • Acute/Emergency Care • Travel Health • CDMO services 3
Slide 4: Who we are today
Who we are today ~1,800 10 2 Product candidates Employees Marketed products procured* $2.9B $1.1B $285M Market cap** Total revenue 2019P*** Adjusted EBITDA 2019P*** 19 15+ Molecule-to-market Global locations Pipeline products CDMO services * AV7909 and Trobigard® are not approved by the FDA or any o
Slide 5: Our marketed and specially-procured products
Our marketed and specially-procured products Product types Anthrax Smallpox Opioids Anthrasil® ACAM2000® NARCAN® [Anthrax Immune (Smallpox (Vaccinia) (naloxone HCl) Globulin Intravenous Vaccine, Live) Nasal Spray (human)] ® Vaccines VIGIV CNJ-016 AV7909* [Vaccinia Immune Public (liquid, oral) [Anthr
Slide 6: Our services: Molecule-to-market
Our services Molecule-to-market Sustainable competitive advantages CDMO offerings • Foundational market approach • Science and technology Technology Development services • Industry-leading track record Platforms • Speed and flexibility to market • Tailored, individualized and integrated offerings Dr
Slide 7: Our clinical pipeline
Our clinical pipeline Phase 1 Phase 2 Phase 3 Phase 4 ZIKV-IG CHIKV VLP AV7909* Vaxchora® - pediatric (Zika Virus Therapeutic) (Chikungunya Virus VLP [Anthrax Vaccine Adsorbed (Cholera Vaccine, Live, Oral) Vaccine) (AVA), Adjuvanted] FLU-IGIV Vaccines & Vaccines (Seasonal Influenza A Virus Therapeut
Slide 8: Consistent, diversified revenue growth
Consistent, diversified revenue growth… Total revenue Revenue mix 10 Products ($ Millions) 12% * 21% CAGR 22% 8% $1,103 1 Product $1,016M 23% 18% 16% $278M $278 77% 25% 2012 Trailing 12-months (09/30/2019) 2012 2013 2014 2015 2016 2017 2018 2019P* Anthrax vaccines ACAM2000® NARCAN® Nasal Spray Other
Slide 9: Driving strong profitability
…Driving strong profitability Adjusted net income* Adjusted EBITDA* ($ Millions) $400 $400 CAGR 15%** CAGR 20%** $300 $300 $285 $200 $200 $155 $100 $100 $79 $59 $0 $0 ** 2012 2013 2014 2015 2016 2017 2018 2019P 2012 2013 2014 2015 2016 2017 2018 2019P** * See the Appendix for non-GAAP reconciliation
Slide 10: Strong track record of M&A
Strong track record of M&A 2013 Hattiesburg, MS 2014 Winnipeg, Baltimore, MD Canada (Camden) 2015 Auto-injector platform raxibacumab injection 2017 Canton, Rockville, MA MD A fully human monoclonal antibody Bern, 2018 Switzerland Added $600M in annual revenue through acquisitions since 2017 10
Slide 11: 2019 financial goals
2019 financial goals Full Year Financial Goals Preliminary Financial Results (As of 1/13/2020) Total Revenue $1,060M-$1,140M $1,100M-$1,105M*** Adjusted Net $150M-$160M*** Income* $150M-$180M # Margin** 15% 14% Adjusted $280M-$290M*** EBITDA* $280M-$310M # Margin** 27% 26% * See the Appendix for non
Slide 12: 2019 operational goals
2019 operational goals Operational Goals Operational Achievements • ACAM2000 - $2B – 10 year contract ✓ Secure/renew U.S. Government • VIG - $535M – 10 year contract procurement contracts for key programs • BAT – up to $500M – 10 year contract • AV7909 Exercise - $261M – 1 year contract ✓ Continue i
Slide 13: Title Only Footer
Title Only 13 Footer
Slide 14: 2024 strategic goals
2024 strategic goals • Double revenue to >$2B • Grow in disciplined, profitable way; achieve adjusted EBITDA margin of 27%-30%* • Expand and build scalable leadership positions in current and new public health threat (PHT) markets • Invest in capabilities, innovation and operational excellence * Def
Slide 15: Core strategies driving the next five years
Core strategies driving the next five years Execute Grow Strengthen R&D Build Scalable Evolve Core Business Through M&A Portfolio Capabilities Culture * Defined as Adjusted EBITDA divided by total revenue. 15
Slide 16: Core strategy – Execute Core Business
Core strategy – Execute Core Business Deliver core business in products and services Execute Core Business * Defined as Adjusted EBITDA divided by total revenue. 16
Slide 17: Addressing a larger portion of the PHT market
Addressing a larger portion of the PHT market CBRNE Public EID Health Public Threats Health Threats EmergingEmerging Opioids HealthHealth CrisesCrises Travelers’ CBRNE Diseases >$30B Market Opportunity 1998 2024 17
Slide 18: 2020-2024 corporate growth strategy targets large addressable markets
2020-2024 corporate growth strategy targets large addressable market opportunities Public CDMO Health Technology Threats Platform Emerging EmergingHealth HealthCrises Crises 5 >$30B Market Opportunity $20B Market Opportunity 18
Slide 19: Customer and partner mix provides platform for continued success
Customer and partner mix provides platform for continued success Pharma and NGO Government Clinics/Distributors/Pharmacies Biotech Small Mid Large >50 customers 19
Slide 20: Core strategy – Grow Through M&A
Core strategy – Grow Through M&A Expand impact on patients and customers while profitably delivering incremental topline revenue Grow Through M&A 20
Slide 21: M&A growth driven by a disciplined approach
M&A growth driven by a disciplined approach Criteria • Strategic fit Public • Preference for products Health accretive in less than 24 months Threats Emerging • Ability to generate risk-adjusted EmergingHealth HealthCrises returns Crises 5 21
Slide 22: Core strategy – Strengthen R&D Portfolio
Core strategy – Strengthen R&D Portfolio Build R&D pipeline to become a meaningful contributor to growth after 2024 Strengthen R&D Portfolio 22
Slide 23: Core strategy – Build Scalable Capabilities
Core strategy – Build Scalable Capabilities Invest in operational excellence and innovation to support a growing enterprise that will deliver greater impact Build Scalable Capabilities 23
Slide 24: Core strategy – Evolve Culture
Core strategy – Evolve Culture Evolve our culture to support increased employee engagement and empowerment Evolve Culture 24
Slide 25: 2020 financial forecast
2020 financial forecast Total Revenue Adjusted EBITDA* Adjusted Net Income* $1,175M-$1,275M** $300M-$360M** $160M-$210M** • NARCAN: $285-$315M • Gross Margin Improvement of • Anthrax Vaccines: $270-$300M 200-400 bps. • ACAM2000: $180-$200M Note: 2020 financial forecast does not include impact of M&A
Slide 26: Summary takeaways
Summary takeaways Proven track record – build from history of profitable, diversified revenue growth Scalable and sustainable business model – deliver expanding offering of specialty products and services addressing global preparedness and response Established leader – continue to build and scale le
Slide 27: Corporate Overview, 38th Annual J.P. Morgan Healthcare Conference
Corporate Overview 38th Annual J.P. Morgan Healthcare Conference Robert G. Kramer Sr. President and Chief Executive Officer January 14, 2020
Slide 28: Appendix
Appendix
Slide 29: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income Twelve Months Ended December 31, ($ in millions) 2020F 2019P 2018 2017 2016 2015 2014 2013 2012 Source Net Income $105.0 to $155.0 $53.0 to $63.0 $62.7 $82.6 $62.5 $91.4 $54.3 $71.2 $58.2 NA Adjustments: + Non-cash amortization charges 64.0 61.0 25
Slide 30: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Twelve Months Ended December 31, ($ in millions) 2020F 2019P 2018 2017 2016 2015 2014 2013 2012 Source Net Income $105.0 to $155.0 $53.0 to $63.0 $62.7 $82.6 $62.5 $91.4 $54.3 $71.2 $58.2 NA Adjustments: + Depreciation & Amortization 111.0 t
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