Viatris Inc. · NASDAQ:VTRS
Viatris — Investor Day (February 2022)
89 slides from Viatris's investor day presentation, Feb 28, 2022
Slide 1: Investor Event
Investor Event February 28, 2022 This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor expected; the pending Biocon Biologics transaction may not achieve its intended benefits; the possibility that the provisions of the Private Securities Litigation
Slide 3: Forward-Looking Statements: Key Terms and Non-GAAP Financial Measures
Forward-Looking Statements Certain Key Terms Non-GAAP Financial Measures The combined measures described herein are calculated as indicated, are reflected as approximations and/or with This presentation includes the presentation and discussion of certain financial information that differs from what
Slide 4: Agenda
Agenda Delivering on our Vision – Unlocking Value and Driving Focus Reshaping the Portfolio as we Deliver the Pipeline Focused Business Execution 2021 Financial Results and 2022 Financial Guidance 10 Minute Break Question and Answer This document contains confidential and proprietary information of
Slide 5: Viatris of the Future: Simpler, Stronger, More Focused
Viatris of the Future: Simpler, Stronger, More Focused Significant Financial Durable, Higher-Margin Flexibility and Enhanced Commercial Portfolio Shareholder Friendly and Scientific Capabilities Capital Allocation Delivering more Access to Patients and more Value to Shareholders This document contai
Slide 6: Our Journey To Today
Our Journey To Today Delivering on a Consistent Vision for Viatris Integrating & De-levering Reshaping & Building for the Future Nov 2020 Last ~12 Months (Viatris in Transition) Today Viatris Day 1 Announced and executed on Significant Global Announcing Significant Global Reshaping Restructuring Ini
Slide 7: Immediate Execution Actions to Reshape the Company
Immediate Execution Actions to Reshape the Company Actions Execution Plan Upon closing we expect to unlock value through the Biocon transaction while creating a new, world-class, vertically integrated biosimilar leader Unlock Value and Simplify Unlocking trapped value of other assets Our Business En
Slide 8: Immediate Execution Actions to Reshape the Company
Immediate Execution Actions to Reshape the Company Actions Execution Plan Upon closing we expect to unlock value through the Biocon transaction while creating a new, world-class, vertically integrated biosimilar leader Unlock Value and Simplify Unlocking trapped value of other assets Our Business En
Slide 9: Identified Select Assets Expected to Unlock Additional Value
Identified Select Assets Expected to Unlock Additional Value, Generating up to ~$9B in Pre-tax Proceeds by the End of 2023 Opportunities Identified Target Outcomes Business Expected Valuation ($B) Unlock value for Viatris shareholders Increase availability of capital for future portfolio or Biosimil
Slide 10: 1st Step to Creating a Simpler, Stronger, More Focused Viatris
Biologics Biosimilars 1st Step to Creating a Simpler, Stronger, More Focused Viatris This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Rese
Slide 11: Transaction Creates a Unique, Vertically Integrated Leader
Transaction Creates a Unique, Vertically Integrated Leader What it Takes to Optimize World Class New Biosimilars Leader the Biosimilars Platform Portfolio Breadth Industry Leader with Comprehensive Portfolio and Pipeline Global Commercial Expertise and Channel Strengths Further Enhanced Global Comme
Slide 12: Viatris to Contribute its Biosimilars Business
Viatris to Contribute its Biosimilars Business to Create a Vertically Integrated Biosimilars World Class Leader Total pre-tax transaction value of up to $3.335B • 2022E adjusted EBITDA of ~$200M, implying a transaction multiple of ~16.5 x(1) – 2022E Revenue of ~$875M • $3B of upfront consideration –
Slide 13: Transaction Details
Transaction Details • Viatris to contribute its biosimilars portfolio, composed of all existing Biocon programs, biosimilars to Humira®, Enbrel®, and Eylea®, as well as related capabilities to Biocon Biologics Deal Terms • Transaction is subject to customary closing conditions, including receipt of
Slide 14: Immediate Execution Actions to Reshape the Company
Immediate Execution Actions to Reshape the Company Actions Execution Plan Upon closing we expect to unlock value through the Biocon transaction while creating a new, world-class, vertically integrated biosimilar leader Unlock Value and Simplify Unlocking trapped value of other assets Our Business En
Slide 15: Expected Value from Biocon and Other Select Assets
Expected Value from Biocon and Other Select Assets Offers Shareholders Compelling Upside ($B) Viatris Revenue Valuation $17.0 - $17.5 Illustrative Current Year(1) ~$0.9 Pro Forma ~$1.0 -$1.5 ~$14.5 - $15.5 Market Cap $17.6 ~$19 - 20 Incremental paydown of ~$2B Net Debt $21.7 $19.7 2022E Biosimilars
Slide 16: Unlocking Value to Strengthen our Financial Profile
Unlocking Value to Strengthen our Financial Profile • New product launches of ~$500M after 2023 to partially offset base business erosion Revenue • Financial flexibility for Business Development, tuck-ins, and distribution deals • Portfolio transitioning towards more durable 505(b)2s and NCEs • Long
Slide 17: Enhanced Capital Allocation Framework
Enhanced Capital Allocation Framework – Delivering on Commitments while Increasing Financial Flexibility Additional Financial Flexibility for Capital Phase 1 Commitments (2022-2023) Return and Business Investment Accelerate short-term paydown in Paydown at least $6.5B of debt by 2022 year end 2023 D
Slide 18: Immediate Execution Actions to Reshape the Company
Immediate Execution Actions to Reshape the Company Actions Execution Plan Upon closing we expect to unlock value through the Biocon transaction while creating a new, world-class, vertically integrated biosimilar leader Unlock Value and Simplify Unlocking trapped value of other assets Our Business En
Slide 19: Focusing our R&D and Business Development
Focusing our R&D and Business Development Regional / Short Term Global / Long-term (3-5 years) (5-10 years) • Centered around existing Commercial Too small / growth potential or lack of innovation Core Brand Assets • Significant addressable unmet medical need • Multiple therapeutic areas • Attractiv
Slide 20: Capabilities Spanning Across Gx and Innovative Assets
Capabilities Spanning Across Gx and Innovative Assets Brand/Innovator Key Factors Generic Capabilities Capabilities Products & Portfolio TA-agnostic at scale TA-aligned with focus Pharmacy / wholesaler / Decision-makers Group Purchasing Organization Prescriber / provider / patient Commercial Demand
Slide 21: Building a Durable Portfolio of Innovative Assets
Building a Durable Portfolio of Innovative Assets Globally Expand and Building an Build Out Therapeutic Current Strengths Innovative Engine & Capabilities Area Leadership Acquire anchor assets Leverage global through partnerships potential of brands Development Powerhouse and collaborations Buy or b
Slide 22: Viatris of the Future: Simpler, Stronger, More Focused
Viatris of the Future: Simpler, Stronger, More Focused Significant Financial Flexibility Durable, Higher-Margin Enhanced Commercial and Shareholder Friendly Portfolio and Scientific Capabilities Capital Allocation • Generics • Debt-paydown • Operational Excellence • Complex Generics • Dividend growt
Slide 23: Agenda
Agenda Delivering on our Vision – Unlocking Value and Driving Focus Reshaping the Portfolio as we Deliver the Pipeline Focused Business Execution 2021 Financial Results and 2022 Financial Guidance 10 Minute Break Question and Answer This document contains confidential and proprietary information of
Slide 24: Deliver the Pipeline
Deliver the Pipeline This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc.,
Slide 25: Evolving R&D Strategy
Evolving R&D Strategy • Further Moving Up The Value Chain • Leverage Global Healthcare Gateway® to Further Enrich Pipeline and Deliver Differentiated and Novel Products Diligently Pursue Life-cycle Management Opportunities Around Current TAs Significantly Expand Continued Investment on Generics Deve
Slide 26: Moving Up the Value Chain and Therapeutic Areas of Focus
Moving Up the Value Chain and Therapeutic Areas of Focus Global Focus Critical Mass of Global NCEs and 505(b)2s ▸ Focused TAs such as Gastrointestinal, Regional Focus Ophthalmology and Moving up the value chain Dermatology 505(b)2s and Life-cycle ▸ Access Pipeline of NCEs Management Opportunities th
Slide 27: Development House with Deep Capabilities
Development House with Deep Capabilities to Deliver Complex Gx and Novel Products COMPLEXITY Complex Oral Topicals and Complex Novel Traditional Generics Respiratory Complex NCE Solids Transdermals Injectables Injectables Products Products Viatris has what is needed to deliver complex Gx and Novel p
Slide 28: Execution Driven by Strong R&D, Regulatory and Clinical Platform
Execution Driven by Strong R&D, Regulatory and Clinical Platform ~3,000 R&D, Clinical, Medical and Regulatory Workforce 12 Development Centers Executing in Multiple Technology Platforms and Therapeutic Areas 55 Markets with In-country Regulatory Expertise Range of Clinical Experience & Scale ▸ 27,00
Slide 29: Proven Results: Delivering Complex Gx & NCE Products
Proven Results: Well-Positioned to Continue Delivering Complex Gx & NCE Products YEAR YEAR FIRST INDUSTRY BRAND VIATRIS RESEARCH INITIATED APPROVED APPROVAL 2007 2017 2009 2017 2009 2018 2007 2018 2010 2019 2010 2020 2010 2021 Interchangeability 2010 2021 Cyclosporine 2010 2022 Eye Drops This docume
Slide 30: Robust Internal Engine
Robust Internal Engine View of Pipeline This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are tradem
Slide 31: Select Core Generics in the Pipeline
Select Core Generics in the Pipeline Core generics portfolio is largely vertically integrated Global Actual / Projected Launch Year Product Lead Markets Status Sales ($B)(1) 2021 2022 2023 2024 2025 2026 US Launched Sunitinib (Sutent®) $0.7 EU Launched US Launched Everolimus IRT (Afinitor®) $1.6 EU
Slide 32: Select Complex Gx in the Pipeline
Select Complex Gx in the Pipeline The Viatris Complex Generic Portfolio is Primarily Vertically Integrated Global Actual / Projected Launch Year Product Lead Markets Status Sales ($B)(1) 2021 2022 2023 2024 2025 2026 Cyclosporine SDV (Restasis®) $2.3 US Launched Iron Metal Sucrose (Venofer®®) $0.9 U
Slide 33: Novel and Life-cycle Management Products in the Pipeline
Novel and Life-cycle Management Products in the Pipeline Targeting Gaps in Health Care. Focused on Unmet Patient Needs. Life-cycle Management of Our Brands. Actual / Projected Launch Year Lead Product Status Markets 2021 2022 2023 2024 2025 2026 Levothyroxine OS US Submitted US In Development Glatir
Slide 34: Pipeline Positions Viatris for ~$500M+ of New Product Launches
Pipeline Positions Viatris for ~$500M+ of New Product Launches Post 2023 Annually $183B Core Generics Complex Products Viatris’ Coverage of IQVIA $(1) Top 100 IQVIA Development Pipeline Complex and Core Gx $19B $52B Products Pending Approval / Launch $65B $47B ► 78% Products ► 85% IQVIA $ $84B $99B
Slide 35: Agenda
Agenda Delivering on our Vision – Unlocking Value and Driving Focus Reshaping the Portfolio as we Deliver the Pipeline Focused Business Execution 2021 Financial Results and 2022 Financial Guidance 10 Minute Break Question and Answer This document contains confidential and proprietary information of
Slide 36: Focused Business Execution
Focused Business Execution This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan
Slide 37: Key Business Execution Priorities As We Reshape Viatris
Key Business Execution Priorities As We Reshape Viatris Reshape Deliver the Viatris Pipeline Creating a Simpler, Stronger, Moving Further Up the Value More Focused Company Chain by Leveraging Proven Scientific Expertise Integrate and Further Stabilize Synergize the Base Business Delivering $1B+ Mana
Slide 38: Strong Execution in 2021 While Navigating Dynamic Environment
Strong Execution in 2021 While Navigating Dynamic Environment Integrate & Synergize Stabilize the Business Deliver the Pipeline • Implemented New Operating • Strong Results, Led by Europe & • Launched ~$700M New Product Model China Revenue • Executed Restructuring Program • Product Drivers - Yupelri
Slide 39: 2022 & 2023
2022 & 2023 This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatri
Slide 40: On Track to Realize $1B+ of Cost Synergies By End of 2023
On Track to Realize $1B+ of Cost Synergies By End of 2023 2021 2022 2023 Close / Divest Manufacturing Sites COGS Execute Procurement & COGS Optimization SG&A Optimize / Reduce Overlapping Infrastructure TSAs Exit Pfizer TSAs (Finance, IT, HR, Operations, etc.) Achieved Expected Annual Savings ~$500M
Slide 41: 2022
2022 This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris compa
Slide 42: Total Viatris
Total Viatris Further Stabilizing Base Business Through Transition Period 2022E Total Revenues Total Revenues 2022E(1) 13% 2021 vs 2021 31% 10% $17.9B (2%) Ex. Biosimilars (3%) 16% 61% 60% 4% Note: 2022E Includes ~$875M of Biosimilars Revenue 5% Developed Markets Emerging Markets Brands Biosimilars
Slide 43: Dynamic Market Conditions Expected to Continue in 2022
Dynamic Market Conditions Expected to Continue in 2022 Tailwinds Headwinds • ~$600M New Product Launches • Mid-Single-Digit Base Business • Growth Markets Including Europe, Erosion China Retail and Key Emerging • Increased Competition in Markets High Margin Key Products • Key Brands, Such as Yupelri
Slide 44: ~$600M New Product Launches Expected in 2022
~$600M New Product Launches Expected in 2022 ~90% 2022E New Product Launch Value Comes From Developed Markets North America Europe • Interchangeable Insulin Glargine (Semglee®) • Abiraterone (Zytiga®) • Lenalidomide (Revlimid®) • Fingolimod (Gilenya®) • Cyclosporine SDV (Restasis®) • Lenalidomide (R
Slide 45: Developed Markets
Developed Markets Net Sales Total Europe North America 2022E(1) 2022E(1) 2022E(1) 2021 vs 2021 2021 vs 2021 2021 vs 2021 $10.4B 2% $5.8B 6% $4.6B (3%) Ex. Biosimilars FLAT 2022E Net Sales 34% Brands 43% North America Biosimilars 57% Europe 52% Complex Gx Generics 7% 7% Note: 2022E includes biosimila
Slide 46: Europe
Europe Net Sales Europe 2021 2022E(1) vs 2021 $5.8B 6% 2022E Tailwinds 2022E Headwinds • Thrombosis Portfolio • Competition in Tender Markets • Key Markets, including France, • Potentially Increasing Italy, Germany Government Impact on • Key Brands, such as Creon®, Pharmaceutical Industry Influvac®,
Slide 47: North America
North America Net Sales North America 2021 2022E(1) vs 2021 $4.6B (3%) 2022E Tailwinds 2022E Headwinds • Diversified Portfolio • Inherent Base Business Erosion • New Product Launches • Competition in Highly Profitable Products Like Perforomist® and • Growth in Key Products like Yupelri® Miacalcin® •
Slide 48: Emerging Markets
Emerging Markets Net Sales Emerging Markets 2022E Tailwinds 2021 2022E(1) vs 2021 • Key Markets, Including Turkey, Thailand, Brazil and Korea $3.1B (8%) • Celebrex®, Viagra® Lipitor®, and Ex. Biosimilars (9%) Dona® • Biosimilars: Portfolio and Market 2022E Net Sales Expansion 30% 27% 37% 2022E Headw
Slide 49: JANZ
JANZ Net Sales JANZ 2022E Tailwinds 2021 2022E(1) vs 2021 • Key Brands Including Amitiza®, Creon®, Effexor®, and Ferrograd $2.0B (8%) • Optimizing Generics Segment and Ex. Biosimilars (10%) Building On Authorized Generics • Biosimilars: Ongoing Hulio® 3% 2022E Net Sales Momentum and Broadening of Po
Slide 50: Greater China
Greater China Net Sales Greater China 2022E Tailwinds 2021 2022E(1) vs 2021 • Focus on Retail Segment & Growing Self-pay Patient Base $2.2B (2%) • Maximize Well Established Ex. Biosimilars (2%) Commercial Presence in Hospital Channel 2022E Net Sales 4% 7% 2022E Headwinds • ~2% Base Business Erosion,
Slide 51: Key Takeaways
Key Takeaways Continue to Execute on Key Priorities • Complete the Integration and Realize Remaining Cost Synergies • Deliver the Pipeline and Expand Robust Development House to Move Up the Value Chain • Continue Stabilizing the Business Reshaping the Company • Close the Biosimilar Transaction in H2
Slide 52: Agenda
Agenda Delivering on our Vision – Unlocking Value and Driving Focus Reshaping the Portfolio as we Deliver the Pipeline Focused Business Execution 2021 Financial Results and 2022 Financial Guidance 10 Minute Break Question and Answer This document contains confidential and proprietary information of
Slide 53: 2021 Strong Financial Results
2021 Strong Financial Results ($B) 2021 Actuals 2021 Guidance Midpoint (Nov 8, 2021) Total Revenues $17.89 $17.80 Adjusted EBITDA $6.43 $6.40 Free Cash Flow $2.56 $2.50 Financial snapshot • Strong revenue contribution from all segments • New Product Revenue of ~$700M • Adjusted Gross Margin of 58.7%
Slide 54: Q4 and FY 2021 Financial Performance
Q4 and FY 2021 Financial Performance Combined Adjusted Combined Adjusted ($M) Q4 2021 CHANGE FY 2021 CHANGE Q4 2020(1) FY 2020(1) Total Net Sales $4,331 $4,524 (4%) $17,814 $18,024 (1%) Total Revenues $4,342 $4,558 (5%) $17,886 $18,149 (1%) Adjusted Gross Margin 56.6% 52.3% 430 bps 58.7% 60.0% (130
Slide 55: 2021 Free Cash Flow – Delivering on Financial Commitments
2021 Free Cash Flow – Delivering on Financial Commitments ($M) Q4 2021 FY 2021 Q4 21 Free Cash Flow Drivers • Semi-Annual Interest Payments U.S. GAAP Net Cash Provided • Timing of Capital Expenditures $523 $3,017 by Operating Activities • Phasing of One-time Operating Cash Costs Capital Expenditures
Slide 56: 2022 Financial Guidance Key Assumptions
2022 Financial Guidance Key Assumptions ▸ Mid-single Digit Base Business Erosion ▸ Minimal COVID impact ▸ ~2% Negative FX Impact on Total Revenues (~$350M) and Adjusted EBITDA (~$120M) ▸ ~$600M New Product Revenue (Includes ~$200M of Biosimilars) ▸ $250M Synergy Realization - Split between SG&A and
Slide 57: 2022 Financial Guidance
2022 Financial Guidance ($B) 2022 Estimated Ranges 2022 Midpoint Total Revenues $17.0 - $17.5 $17.25 Adjusted EBITDA $5.8 - $6.2 $6.0 Free Cash Flow(1) $2.5 - $2.9(1) $2.7(1) Key Metrics Utilized for 2022 Financial Guidance Adjusted Gross Margin 57.5 - 58.5% Adjusted SG&A % of Total Revenues 20.5 -
Slide 58: 2022 Revenue Guidance Walk
2022 Revenue Guidance Walk ($M) 17,886 349 17,537 884 213 17,250 671 596 2021 Actuals Fx 2021 at 2022 Fx rates Base Business Erosion New Product Revenue 2022 Midpoint Note: Base Business Erosion includes $213m related to impact of competition on key US products This document contains confidential an
Slide 59: 2022 Adjusted EBITDA Guidance Walk
2022 Adjusted EBITDA Guidance Walk ($M) 6,426 119 6,307 196 591 6,000 210 250 381 370 139 2021 Actuals Fx 2021 at 2022 Inflation Impact Base Business Gross Incremental R&D / New Product Expected Synergies 2022 Midpoint Fx Rates on Input Costs Margin Erosion Global Investments Gross Margin Note: For
Slide 60: 2022 Free Cash Flow Guidance
2022 Free Cash Flow Guidance(1) ($M) 2022 $1,365M One-time Operating Cash Costs 2022 Adjusted EBITDA $5,800 - $6,200 ~$875M Restructuring and Integration Related One-time Costs Interest Expense ~$700 ~$264M EpiPen Settlement ~$226M Product Related Costs including Milestones, Tax ~$650 Miscellaneous
Slide 61: Key Takeaways
Key Takeaways 2021 ▸ Strong Financial Performance - Delivered on Financial Commitments 2022 ▸ Revenue impacted by FX headwinds and Base Business Erosion, partially offset by New Product Revenue ▸ Slight pressure on Adjusted Gross Margin driven by competition on Key US products and higher COGS due to
Slide 62: Agenda
Agenda Delivering on our Vision – Unlocking Value and Driving Focus Reshaping the Portfolio as we Deliver the Pipeline Focused Business Execution 2021 Financial Results and 2022 Financial Guidance 10 Minute Break Question and Answer This document contains confidential and proprietary information of
Slide 63: Agenda
Agenda Delivering on our Vision – Unlocking Value and Driving Focus Reshaping the Portfolio as we Deliver the Pipeline Focused Business Execution 2021 Financial Results and 2022 Financial Guidance 10 Minute Break Question and Answer This document contains confidential and proprietary information of
Slide 64: Appendix
Appendix This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris c
Slide 65: Q4 2021 Net Sales vs. Combined Adjusted Q4 2020
Q4 2021 Net Sales vs. Combined Adjusted Q4 2020 ($M) 84 40 119 85 279 176 4,524 4,440 4,331 Combined Japan LOEs Combined LOE China URP/VBP Base Business COVID-19 New Product Fx Q4 2021 Adjusted Q4 2020 Adjusted Q4 2020 Erosion Revenue See slide 3 for more information on Combined Adjusted Q4 2020 and
Slide 66: Q4 2021 Adjusted EBITDA vs. Combined Adjusted Q4 2020
Q4 2021 Adjusted EBITDA vs. Combined Adjusted Q4 2020 ($M) 30 22 58 22 26 77 66 24 1,416 1,362 1,340 Combined Japan LOEs Combined LOE China URP/VBP D&A Base Business COVID-19 New Product SG&A & Other Fx Q4 2021 Adjusted Q4 2020 Adjusted Q4 2020 Margin Erosion Gross Margin Expense Items See slide 3 f
Slide 67: Total Net Sales
Total Net Sales Combined HIGHLIGHTS ($M) Q4 2021 Adjusted Change Op Chg Q4 2020 Q4 Performance vs. Expectations Total Net Sales $4,331 $4,524 (4%) (2%) • Strong performance across all our segments Brands 2,612 2,747 (5%) (3%) • Brands: in-line with expectations driven by Lipitor®, Lyrica® and Thromb
Slide 68: Developed Markets
Developed Markets Combined HIGHLIGHTS ($M) Q4 2021 Adjusted Change Op Chg Q4 2020 Q4 Performance vs. Expectations Net Sales $2,561 $ 2,611 (2%) 0% • Europe net sales of $1.5B Brands 1,409 1,437 (2%) 0% • North America net sales of $1.1B • Brands: in-line with expectations, driven by Perforomist® and
Slide 69: Emerging Markets
Emerging Markets Combined HIGHLIGHTS ($M) Q4 2021 Adjusted Change Op Chg Q4 2020 Q4 Performance vs. Expectations Net Sales $728 $816 (11%) (8%) • Brands: in-line with expectations with continued strength from Lipitor®, Norvasc® and Viagra® Brands 384 395 (3%) 1% • Complex Gx & Biosimilars: lower tha
Slide 70: JANZ
JANZ Combined HIGHLIGHTS ($M) Q4 2021 Adjusted Change Op Chg Q4 2020 Q4 Performance vs. Expectations Net Sales $539 $615 (12%) (6%) • Brands: better than expectations, primarily driven by Amitiza®, Lyrica® and Celebrex® Net Sales $539 $526 3% 9% ex Impact of Lyrica® & Celebrex® LOEs • Complex Gx & B
Slide 71: Greater China
Greater China Combined HIGHLIGHTS ($M) Q4 2021 Adjusted Change Op Chg Q4 2020 Q4 Performance vs. Expectations Net Sales $504 $482 5% 1% • Performed better than expectations, driven by Lipitor® and Celebrex® Brands 501 480 4% 1% • Continued robust performance in Retail segment Complex Gx & Biosimilar
Slide 72: FY 2021 Total Net Sales
FY 2021 Total Net Sales Combined ($M) Adjusted Change Op Chg FY 2021 FY 2020 Total Net Sales $17,814 $18,025 (1%) (3%) Brands 10,841 11,109 (2%) (5%) Complex Gx & Biosimilars 1,342 1,289 4% 3% Generics 5,630 5,627 0% (2%) Excluding Impact of Japan’s Lyrica and Celebrex LOEs (~$608M(3) Net Sales) Com
Slide 73: Q4 and FY 2021 Select Key Product Net Sales
Q4 and FY 2021 Select Key Product Net Sales, On a Consolidated Basis ($M) Q4 2021 FY 2021 ($M) Q4 2021 FY 2021 Select Key Global Select Key Segment Products Products Lipitor® $390.3 $1,663.2 Influvac® $134.0 $299.3 Norvasc® 188.8 824.7 Amitiza® 54.0 201.5 Lyrica® 172.6 728.5 Xanax® 44.4 185.9 Viagra
Slide 74: GAAP/Non-GAAP Reconciliations
GAAP/Non-GAAP Reconciliations This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of My
Slide 75: Full Year 2022 Guidance Items
Viatris Inc. and Subsidiaries Full Year 2022 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $17,000 - $17,500 N/A Adjusted EBITDA N/A $5,800 - $6,200 Net Cash provided by $3,200 - $3,400 N/A Operating Activities Free Cash Flow N/A $2,500 - $2,900 This document contains confiden
Slide 76: Reconciliation of Estimated 2022 Operating Cash Flow to Free Cash Flow
Viatris Inc. and Subsidiaries Reconciliation of Estimated 2022 GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited; in millions) Estimated GAAP Net Cash provided by Operating Activities $3,200 - $3,400 Less: Capital Expenditures ($525) - ($675) Free Cash Flow $2,500 - $2,900
Slide 77: Adjusted Net Earnings
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended Year Ended December 31, December 31, (in millions) 2021 2020 2021 2020 U.S. GAAP net loss ..................................................................
Slide 78: (Loss) Earning to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) (Loss) Earning to Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, (In millions) 2021 2020 2021 2020 U.S. GAAP net loss.......................................................
Slide 79: Summary of Total Revenues by Segment
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Summary of Total Revenues by Segment Three Months Ended December 31, 2021 Currency 2021 Constant Currency Constant Currency % (In millions, except %s) 2021 2020 % Change Impact (1) Revenues Change
Slide 80: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP cost of sales.........................................................................
Slide 81: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP R&D.............................................................................................
Slide 82: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP SG&A...........................................................................................
Slide 83: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP total operating expenses..............................................................
Slide 84: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP interest expense..............................................................................
Slide 85: Other (Income) Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other (Income) Expenses Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP other (income) expense, net............................................................
Slide 86: Earnings Before Income Taxes and Income Tax Provision
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Earnings Before Income Taxes and Income Tax Provision Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 U.S. GAAP loss before income taxes......................
Slide 87: Combined Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Combined Adjusted EBITDA Three months ended Twelve months ended (In millions) December 31, 2020 December 31, 2020 U.S. GAAP net loss.................................................................
Slide 88: Gross Leverage - Debt to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Gross Leverage - Debt to Adjusted EBITDA Twelve Months Ended December 31, 2021 Viatris adjusted EBITDA $ 6,426.1 Reported debt balances: Long-term debt, including current portion 21,577.4 Short-ter
Slide 89: Investor Event
Investor Event February 28, 2022 This document contains confidential and proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of