Embecta Corp. · NASDAQ:EMBC
Embecta — 42nd Annual J.P. Morgan Healthcare Conference (January 2024)
26 slides from Embecta's conference presentation, Jan 10, 2024
Slide 1: 42nd Annual JP Morgan Healthcare Conference
42nd Annual JP Morgan Healthcare Conference January 10, 2024
Slide 2: Strategy and business update
Strategy and business update Dev Kurdikar Chief Executive Officer 2
Slide 3: 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 4: 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 by diabetes 4
Slide 5: Fiscal Year 2023 Highlights
Fiscal Year 2023 Highlights Strong execution notwithstanding challenging external environment Won readers choice for MD+DI* 2022 med tech company of the year Established a world-class leadership team with the focus and experience needed to position the business for value creation Implemented
Slide 6: Fiscal Year 2023 vs. Fiscal Year 2022 Revenue
Fiscal Year 2023 vs. Fiscal Year 2022 Revenue Dollars in Millions Twelve Months Ended % Increase / Decrease September 30, September 30, As-Reported Foreign Currency Constant Currency 2023 2022 Revenue Growth Impact Revenue Growth U.S. $601.4 $600.3 0.2% ꟷ 0.2% International $519.4 $529.2 (1.9%) (5.1
Slide 7: FY23 Financial Highlights – Guidance Progression
FY23 Financial Highlights – Guidance Progression Dollars in Millions, December 20, 2022 February 14, 2023 May 12, 2023 August 8, 2023 except per share and Final percentages Low High Low High Low High Low High Results Revenue $1,050 $1,073 $1,084 $1,107 $1,101 $1,113 $1,107 $1,113 $1,121 As-Reported
Slide 8: Strategic Priorities for Fiscal Year 2024
Strategic Priorities for Fiscal Year 2024 Strengthen and optimize core business • Maintain core injection business revenue • Navigate through operating environment; manage costs Separate and stand-up • Complete ERP implementation • Operationalize embecta systems and resources, and exit transition se
Slide 9: Separation and standup progress: global ERP system and distribution network
Separation and standup progress: Implementing our global ERP system and distribution network Completed To be completed Suzhou, China Holdrege, NE Dun Laoghaire, Ireland Manufacturing Local pen needle production World’s largest manufacturer World’s largest manufacturer for China and Asia Pacific of i
Slide 10: Our patch pump in development is a PWD and HCP-informed solution
Our patch pump in development is a PWD and HCP-informed solution Submitted 510(k) application to the FDA for the open-loop patch pump Patch pump designed for differentiated experience and to reduce the adoption barrier Designed specifically for people embecta’s embecta’s Tubeless Tubed with T2D inte
Slide 11: Market Considerations & Opportunity
Market Considerations & Opportunity
Slide 12: Insulin prescription trends in the United States have remained relatively consistent
Insulin prescription trends in the United States have remained relatively consistent, despite the growth of GLP-1 RA and GLP-1 RA/GIP therapy Insulin prescription trends remain stable The number of patients that • Weekly GLP-1 RA drugs have been marketed for several years switch from insulin to week
Slide 13: embecta's insulin injection revenue remained stable while new treatments entered the market
embecta’s insulin injection revenue remained stable even while multiple new treatments for type 2 diabetes entered the market Our global footprint is expected to continue FY23 Global Revenue2 to provide us with a strong, stable, and recurring revenue base International US 46% • Insulin therapy is a
Slide 14: GLP-1 RA therapies are delivered via pens/pen needles, vials/syringes and autoinjectors
GLP-1 RA and GLP-1 RA/GIP therapies are delivered via pens/pen needles, vials/syringes and autoinjectors Our pen needles are compatible with widely used pen injector devices including those marketed by a variety of companies including1* embecta has segment leadership in diabetes injection devices2
Slide 15: Significant opportunity exists to help people living with diabetes
Significant opportunity exists to help people living with diabetes Injection GLP-1 RA Delivery Devices Partnerships Systems • Some GLP-1 RA and combo • Since our pen needles are • There is a significant type 2 therapies will need pen compatible with widely used pen diabetes population that is needle
Slide 16: Thank you
Thank you
Slide 17: Appendix
Appendix embecta’
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) earnings before interest, taxes, depreciation, and amortization (“EBITDA”), (ii) Adjusted EBITDA
Slide 19: Adjusted Gross Profit Margin Reconciliation
Adjusted Gross Profit Margin Reconciliation Dollars in Millions, except percentages Twelve Months Ended September 30, 2023 Gross Profit $749.9 Gross Profit Margin 66.9% Stock-based compensation expense 0.1 Amortization of intangible assets (1) 1.2 Adjusted Gross Profit $751.2 Adjusted Gross Profit M
Slide 20: Adjusted Operating Income Margin Reconciliation
Adjusted Operating Income Margin Reconciliation Dollars in Millions, except percentages Twelve Months Ended September 30, 2023 GAAP Operating Income $221.5 GAAP Operating Income Margin 19.8% Amortization of intangible assets (1) 1.2 One-time stand up costs (2) 93.7 European regulatory initiative-rel
Slide 21: Adjusted Operating Income Margin Reconciliation – Continued
Adjusted Operating Income Margin Reconciliation – Continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand up costs incurred primarily include costs to stand up the Company. For the twelve months ended September 30, 2023, approximately $92.7 million an
Slide 22: Adjusted Net Income and Adjusted Net Income Per Diluted Share Reconciliation
Adjusted Net Income and Adjusted Net Income Per Diluted Share Reconciliation Dollars in Millions, except per share amounts Twelve Months Ended September 30, 2023 Income Before Income Taxes $105.7 Adjustments: Amortization of intangible assets (1) 1.2 One-time stand up costs (2) 93.7 EU MDR (3) 1.3 S
Slide 23: Adjusted Net Income Per Diluted Share Reconciliation – Continued
Adjusted Net Income Per Diluted Share Reconciliation – Continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand up costs incurred primarily include costs to stand up the Company. For the twelve months ended September 30, 2023, approximately $92.7 milli
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in Millions, except percentages Twelve Months Ended September 30, 2023 GAAP Net Income $70.4 Interest expense, net 107.0 Income taxes 35.3 Depreciation and amortization 32.6 EBITDA $245.3 Stock-based compensation expense (1) 21.9 One-time stand up costs (2) 93.
Slide 25: Adjusted EBITDA Reconciliation – Continued
Adjusted EBITDA Reconciliation – Continued (1) Represents stock-based compensation expense incurred during the twelve months ended September 30, 2023. For the twelve months ended, September 30, 2023, $18.1 million is recorded in Selling and administrative expense, $2.2 million is recorded in Cost of
Slide 26: Revenue CAGR Reconciliation
Revenue CAGR Reconciliation Dollars in Twelve Months Ended Millions CAGR September September September September September September September Growth Rate 30, 2017 30, 2018 30, 2019 30, 2020 30, 2021 30, 2022 30, 2023 U.S. $546.4 $564.1 $569.5 $562.5 $609.4 $600.3 $601.4 1.6% CMA $15.0 $13.0 U.S. ex
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