Viatris Inc. · NASDAQ:VTRS
Viatris — Q2 2024 Earnings Presentation
55 slides from Viatris's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Earnings
Q2 2024 Earnings August 8, 2024 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Via
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about 2024 financi
Slide 3: Non-GAAP Financial Measures and Other Information
Non-GAAP Financial Measures and Other Information Key References New product sales, new product launches or new product revenues: Refers to revenue from new products launched in 2024 and the carryover impact of new products, including business development, launched within the last 12 months. Operati
Slide 4: Strategic Update
Strategic Update Scott A. Smith Chief Executive Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are tradema
Slide 5: Strong Execution
Strong Execution Integrated two global companies Simplified and streamlined the business by completing divestitures Returned our base business to growth (1) Strengthened our balance sheet through significant debt paydown Returned capital to shareholders through dividends and share repurchases Starte
Slide 6: Strong Foundation
Strong Foundation EXTENSIVE ROBUST SIGNIFICANT EXPANDED DEEP GLOBAL DEVELOPMENT CASH FLOW EXECUTIVE CAPABILITIES FOOTPRINT ENGINE GENERATION LEADERSHIP TEAM that reaches globally across across a number from our base added new leaders more than 1 billion manufacturing, of therapeutic areas, business
Slide 7: Our Strategic Pillars
Our Strategic Pillars to Accelerate Growth and Shareholder Return DIVERSIFIED FINANCIAL EXPANDING & GROWING STRENGTH & INNOVATIVE BASE BUSINESS SIGNIFICANT PORTFOLIO CASH FLOW This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure t
Slide 8: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Total Revenues Adjusted EBITDA $3.80B $1.21B Adjusted EPS Free Cash Flow (1) Excluding Transaction Costs $0.69 $426M Expects 2024 Full-Year Operational Revenue Growth of ~2% (2) For key references and non-GAAP measures, see slide 3 (1) Q2 2024 Free Cash Flow was $320M. E
Slide 9: R&D Update
R&D Update Philippe Martin Chief R&D Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Myla
Slide 10: Our Approach to Innovation and Growth
Our Approach to Innovation and Growth Deep In-House Development Capabilities Strong Pre-Clinical, Experienced Manufacturing Proven Regulatory, Clinical Development & Device Teams Over Wide Pharmacovigilance, & Medical Affairs Range of Dosage Forms Legal & IP Skills Two Engines to Fuel Our Growth Bas
Slide 11: Base Business Pipeline – Diverse and Resilient Growth Engine
Base Business Pipeline – Diverse and Resilient Growth Engine Steady flow of core generics, complex generics and novel products >500 products in development or under regulatory review and secured a number of first-to-market opportunities Core Generics Complex Generics Novel Products ~250 ~250 >70 pro
Slide 12: Expanding Our Innovative Pipeline
Expanding Our Innovative Pipeline Criteria for Drug Development Selection Unmet Validated Strong Path to Medical Mechanism Proof of Regulatory Need of Action Concept Approval Select Assets From Our Innovative Pipeline Selatogrel Cenerimod ETF™ Platform (Acute Myocardial Infarction) (SLE (1) and Othe
Slide 13: Financial Update
Financial Update Doretta Mistras Chief Financial Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are tradem
Slide 14: Financial Strength and Significant Cash Flow
Financial Strength and Significant Cash Flow Diversified Portfolio Global footprint that reaches more than 1 billion patients annually Broad portfolio of generics and off-patent brands across markets and therapeutic areas Strong Balance Sheet Demonstrated commitment to debt reduction and investment
Slide 15: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet ~$8.4B ~$7.4B (1) Free Cash Flow since Debt repayment since beginning of 2021 beginning of 2021 Notional Debt Outstanding (2) $25.1B Clear line of sight $22.4B to reaching our long-term gross $18.7B leverage target by $17.6B the end of 2024 $16.6B Q4 2020 Q4 2021 Q4 2
Slide 16: Balanced Capital Allocation Framework
Balanced Capital Allocation Framework 2024 YTD Capital Allocation Framework Debt Committed to Paydown $802M investment grade rating Capital Dividend Share Buyback Committed to dividend Return $538M and share buyback $288M $250M Investing in Business Development $350M innovative portfolio to accelera
Slide 17: Financial Results and Guidance
Financial Results and Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viat
Slide 18: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights ($M, except percentages and Adjusted EPS) Divestiture-Adj Q2 2024 Q2 2023 (1) Change Op Change Op Change Total Revenues $3,797 $3,919 (3%) (1%) 2% Adjusted EBITDA $1,208 $1,306 (7%) (5%) 2% Adjusted EPS $0.69 $0.75 (8%) (5%) 3% Free Cash Flow (2)(3) $426 $466 (9%) Exclud
Slide 19: Total Net Sales
Total Net Sales ($M) Q2 2024 Q2 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period Net Sales $3,786 $3,910 (3%) (1%) ‣ Divestiture-adjusted operational growth across Brands 2,363 2,445 (3%) 0% all segments ‣ Brands: Strong growth in Greater China and Generics 1,423 1,4
Slide 20: Developed Markets
Developed Markets ($M) Q2 2024 Q2 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period Net Sales $2,319 $2,354 (1%) (1%) ‣ Europe: ~$1.3B; +3% divestiture-adj op change Brands 1,234 1,300 (5%) (4%) ‣ North America: ~$1.0B; (2%) divestiture-adj op change Generics 1,086 1,
Slide 21: Emerging Markets
Emerging Markets ($M) Q2 2024 Q2 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period Net Sales $578 $648 (11%) (6%) ‣ Brands: Expansion of cardiovascular portfolio in Brands 395 407 (3%) 6% certain Latin American countries and strength in MENA & Eurasia regions Generics
Slide 22: JANZ
JANZ ($M) Q2 2024 Q2 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period Net Sales $350 $376 (7%) 1% ‣ Brands: New products in Australia and volume Brands 198 207 (4%) 5% growth of promoted brands in Japan, partially offset by impact from government price Generics 151 1
Slide 23: Greater China
Greater China ($M) Q2 2024 Q2 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period Net Sales $539 $532 1% 5% ‣ Overall performance reflects strong growth Brands 536 530 1% 5% in China across multiple channels, including E-commerce, retail, and private hospitals Generics
Slide 24: 2024 Financial Guidance
2024 Financial Guidance ($M, except percentages and Adjusted EPS) Estimated Ranges (1) Midpoint (1) Divestiture Acquired Estimated Ranges (3) Midpoint (3) May 9, 2024 May 9, 2024 Impact (2) IPR&D August 8, 2024 August 8, 2024 Total Revenues $14,980 - $15,480 $15,230 (~$380) – $14,600 - $15,100 $14,8
Slide 25: 2024 Key Metrics
2024 Key Metrics Key Metrics Utilized for 2024 Financial Guidance Estimated Ranges (1) Estimated Ranges (2) May 9, 2024 August 8, 2024 Adjusted Gross Margin 57.0% - 58.0% 57.5% - 58.5% Adjusted SG&A % of Total Revenues 22.0% - 23.0% 23.0% - 24.0% (3) Adjusted R&D % of Total Revenues 5.0% - 5.6% 5.0%
Slide 26: Q&A
Q&A Scott A. Smith Doretta Mistras Philippe Martin Corinne Le Goff Chief Executive Officer Chief Financial Officer Chief R&D Officer Chief Commercial Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is
Slide 27: GAAP / Non-GAAP Reconciliations
GAAP / Non-GAAP Reconciliations This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Via
Slide 28: Full-Year 2024 Guidance Items as of August 8, 2024
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS) Full-Year 2024 Guidance Items as of August 8, 2024 (1) GAAP Non-GAAP Total Revenues $14,600 - $15,100 N/A Adjusted EBITDA N/A $4,600 - $4,870 (2) Net Cash provided by $2,620 -
Slide 29: Reconciliation of Estimated 2024 Operating Cash Flow to Free Cash Flow
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Reconciliation of Estimated 2024 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of August 8, 2024 (1) Estimated U.S. GAAP Net Cash provided by Operating Activities $2,620
Slide 30: Full-Year 2024 Guidance Items as of May 9, 2024
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS) Full-Year 2024 Guidance Items as of May 9, 2024 (1) GAAP Non-GAAP Total Revenues $14,980 - $15,480 N/A Adjusted EBITDA N/A $4,710 - $5,010 Net Cash provided by $2,710 - $3,010
Slide 31: Reconciliation of Estimated 2024 Operating Cash Flow to Free Cash Flow
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Reconciliation of Estimated 2024 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of May 9, 2024 (1) Estimated U.S. GAAP Net Cash provided by Operating Activities $2,710 - $
Slide 32: Net (Loss) Earnings to Adjusted Net Earnings and Adjusted EPS
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except per share amounts) Net (Loss) Earnings to Adjusted Net Earnings and U.S. GAAP (Loss) Earnings Per Share to Adjusted EPS Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2
Slide 33: Net (Loss) Earnings to EBITDA and Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net (Loss) Earnings to EBITDA and Adjusted EBITDA Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP net (loss) earnings............................................
Slide 34: Summary of Total Revenues by Segment – Q2 2024
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q2 2024 Three Months Ended June 30, Divestiture- 2024 Constant Constant 2023 Adjusted Adjusted 2024 Currency Currency Currency % Closed Ex Divestit
Slide 35: Summary of Total Revenues by Segment – Q2 2024 YTD
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q2 2024 YTD Six Months Ended June 30, Divestiture- 2024 Constant Constant 2023 Adjusted Adjusted 2024 Currency Currency Currency % Closed Ex Divest
Slide 36: Key Product Net Sales, on a Consolidated Basis
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Key Product Net Sales, on a Consolidated Basis Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Select Key Global Products Lipitor ® $ 348.4 $ 380.0 $ 737.3 $ 797.9 Norvasc
Slide 37: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP cost of sales......................................................................... $
Slide 38: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP SG&A.................................................................................... $ 1,358.
Slide 39: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP R&D.......................................................... $ 204.1 $ 208.3 $ 403.8 $ 391.2 Dedu
Slide 40: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP total operating expenses........................................... $ 1,685.3 $ 1,239.4
Slide 41: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP interest expense................................................................... $ 145.8 $ 14
Slide 42: Other Expense (Income), Net
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other Expense (Income), Net Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP other expense (income), net................................................ $ 6.1 $ (
Slide 43: Earnings Before Income Taxes and Income Tax Provision
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) (Loss) Earnings Before Income Taxes and Income Tax (Benefit) Provision Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP (loss) earnings before income t
Slide 44: Free Cash Flow and Free Cash Flow Excluding Transaction Costs
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow and Free Cash Flow Excluding Transaction Costs Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 U.S. GAAP net cash provided by operating activities....... $
Slide 45: Free Cash Flow Since Beginning of 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow Since Beginning of 2021 Year Ended Six Months Ended Free Cash Flow Since December 31, 2021 December 31, 2022 December 31, 2023 June 30, 2024 Beginning of 2021 U.S. GAAP net cash prov
Slide 46: Gross Leverage - Debt to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA Gross Leverage Ratio is the ratio of Viatris’ total debt at notional amounts at June 30, 2024 to the sum of Viatris’ adjusted EBITDA for the q
Slide 47: Net Earnings (Loss) to EBITDA and Adjusted EBITDA – Last Twelve Months
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings (Loss) to EBITDA and Adjusted EBITDA – Last Twelve Months Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 U.S. GAAP net earnings (loss)............
Slide 48: Gross Leverage – Debt to Adjusted EBITDA – Q4 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q4 2023 Year Ended December 31, 2023 Adjusted EBITDA (a).................................................................... $ 5,124.1 Repor
Slide 49: Net Earnings to EBITDA and Adjusted EBITDA – Q4 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to EBITDA and Adjusted EBITDA – Q4 2023 Year ended December 31, 2023 U.S. GAAP net earnings.............................................................................................
Slide 50: Gross Leverage – Debt to Adjusted EBITDA – Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q4 2022 Year Ended December 31, 2022 Adjusted EBITDA (a).................................................................... $ 5,776.8 Repor
Slide 51: Net Earnings to EBITDA and Adjusted EBITDA – Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to EBITDA and Adjusted EBITDA – Q4 2022 Year ended December 31, 2022 U.S. GAAP net earnings.............................................................................................
Slide 52: Gross Leverage – Debt to Adjusted EBITDA – Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q4 2021 Year Ended December 31, 2021 Adjusted EBITDA (a).................................................................... $ 6,426.1 Repor
Slide 53: Net Loss to EBITDA and Adjusted EBITDA – Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to EBITDA and Adjusted EBITDA – Q4 2021 Year ended December 31, 2021 U.S. GAAP net loss.....................................................................................................
Slide 54: Gross Leverage – Debt to Combined Adjusted EBITDA – Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Combined Adjusted EBITDA – Q4 2020 Year Ended December 31, 2020 Combined Adjusted EBITDA (a).................................................. $ 6,807.2 Repor
Slide 55: Net Loss to EBITDA and Combined Adjusted EBITDA – Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to EBITDA and Combined Adjusted EBITDA – Q4 2020 Year ended December 31, 2020 U.S. GAAP net loss............................................................................................