Viatris Inc. · NASDAQ:VTRS
Viatris — FY2020 Earnings Presentation
28 slides from Viatris's earnings presentation, Feb 22, 2021
Slide 1: Viatris February 22, 2021
VIATRIS February 22, 2021 Exhibit 99.1
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 with respect to 20
Slide 3: Key References and U.S. GAAP Measures
Key References and U.S. GAAP Measures The measures described herein are calculated as indicated, are reflected as approximations and/or with rounding, and do not reflect final actual results or pro forma results in accordance with ASC 805 or Article 11 of Regulation S-X. Such measures also do not re
Slide 4: Key References and U.S. GAAP Measures (continued)
Key References and U.S. GAAP Measures (continued) As a result of the Combination and the integration of our portfolio across our regions, the Company expects to change its reportable segments from the historical Mylan segment presentation. (Mylan was the accounting acquiror in the Combination with t
Slide 5: Non-GAAP Financial Measures
Non-GAAP Financial Measures See slide 4 for certain U.S. GAAP measures. This presentation includes certain financial information that differs from what is reported under U.S. GAAP. These non-GAAP financial measures, including, but not limited to, adjusted EBITDA, leverage target, free cash flow, adj
Slide 6: Strategic Rationale & Guidance Update
Strategic Rationale & Guidance Update 2021 Guidance Update Integration and Restructuring on Track Launched Viatris without Business Interruption Executing on global restructuring program Right Starting Point for 2021 & Beyond 2021 trough year for Revenue, Adjusted EBITDA and Free Cash Flow Plan inco
Slide 7: Commitment to Transparent Disclosures
Commitment to Transparent Disclosures Provided Feb 22nd 2020 Combined Preliminary Estimates for: Revenue (Global and by Segment) Adjusted EBITDA 2021 Financial Guidance New Segments* New Reporting Revenue Brands Complex Generics & Biosimilars Generics Top Products** Segment Profitability Revenue Bra
Slide 8: 2021 Segment Dynamics
2021 Segment Dynamics Developed Markets Emerging Markets s Special Items Headwinds Tailwinds Special Items Headwinds Tailwinds U.S. Perforomist LOE U.S. Rebate Adjustment COVID Normalized Base Business Erosion of 3-4% U.S. Yupelri Growth New Product Launches EU Aspen Thrombosis Biosimilars Remdesivi
Slide 9: Integration and Restructuring Underway to Accelerate $1B Cost Synergies
Integration and Restructuring Underway to Accelerate $1B Cost Synergies Launched Viatris on November 16, 2020 with no business disruption Announced Significant Global Restructuring Program Up to 20% workforce reduction Announced 5 manufacturing sites to be closed/divested Identified additional 8 man
Slide 10: Financial Overview
Financial Overview ” © viatris
Slide 11: 2020 Combined Preliminary Adjusted Estimate
2020 Combined Preliminary Adjusted Estimate Revenue ($M) Adjusted EBITDA ($M) Estimated results are preliminary and subject to change and actual results may differ materially from the preliminary estimates provided - see slides 4-5. For non-GAAP measures, see slide 5.
Slide 12: 2021 Financial Guidance Key Assumptions
2021 Financial Guidance Key Assumptions COVID Continues to be a Headwind, Assumes Gradual Recovery Beginning in 2H 2021 Mid-single-digit Global Normalized Base Business Erosion China Universal Reimbursement Pricing (URP) Begins Q3 2021 Accelerated Genericization of Lyrica Japan FX Based on Early Jan
Slide 13: 2021 Financial Guidance Estimated Ranges
Estimated Ranges Midpoint Revenue $17.2B - $17.8B $17.5B Adjusted EBITDA $6.0B - $6.4B $6.2B Free Cash Flow $2.0B - $2.3B $2.15B This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2020 V
Slide 14: 2021 Segment Revenue Expectations
2021 Segment Revenue Expectations 2021E 2020 Combined Preliminary Adjusted Estimate Developed Markets Emerging Markets JANZ Greater China Emerging Markets JANZ Greater China 29% Europe 28% North America 33% Europe 27% North America Estimated results are preliminary and subject to change and actual r
Slide 15: 2021 Revenue Guidance Walk
This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2020 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 2021 Revenue Guida
Slide 16: 2021 Adjusted EBITDA Guidance Walk
Estimated results are preliminary and subject to change and actual results may differ materially from the preliminary estimates provided - see slides 3-4. For non-GAAP measures, see slide 5 2021 Adjusted EBITDA Guidance Walk *New Product GM Expected Expense Increases ($M) Note: New products defined
Slide 17: 2021 Free Cash Flow Guidance
2021 Free Cash Flow Guidance ($M) 2021 2021 Adjusted EBITDA $6,000 - $6,400 Interest Expense ~$700 Tax ~$875 Cash Costs to Achieve Synergies & Other One-Time Cash Costs ~$1,500 Net Working Capital ~$400 Capital Expenditures ~$575 2021 Free Cash Flow $2,000 - $2,300 Commentary 2021 Cash Costs to Achi
Slide 18: Deliver on Commitments
Deliver on Commitments Dividend: Expect to initiate dividend in Q2 2021 and anticipate growing the dividend amount annually Debt Paydown: Debt repayment of ~$6.5B through year end 2023 Near-Term Execution Roadmap 2021 - 2023 Delever & Rebalance Expected Performance 2021 Trough Year Realize $1B Cost
Slide 19: Appendix
Appendix ” © viatris
Slide 20: Viatris Financial Profile
5.3x 1.7x VIATRIS Financial Profile Dividend Yield3 Dividend Payout Ratio4 2021E EBITDA Margin1 ~25% 35%7 3.7x Est. Gross Debt / 2020E EBITDA2 * * For non-GAAP measures. Source: Company filings, Capital IQ. Note: Market data as of 2/18/2021. 1 Consensus EBITDA estimate for calendar year 2021E, per C
Slide 21: Opportunity through Multiple Expansion to Deliver Shareholder Value
Opportunity through Multiple Expansion to Deliver Shareholder Value Implied VIATRIS Share Price1 Illustrative Adjusted EBITDA* ($bn) Illustrative Total Enterprise Value2 / Adjusted EBITDA* $6.0 $6.2 $6.4 $6.6 $6.8 $7.0 7.5x $17 $18 $19 $21 $22 $23 8.5x $22 $23 $25 $26 $28 $29 9.5x $27 $29 $30 $32 $3
Slide 22: GAAP/Non-GAAP Measures and Metrics & Reconciliations
GAAP/Non-GAAP Measures and Metrics & Reconciliations
Slide 23: Management use of non-GAAP financial measures
Management uses adjusted EBITDA, leverage target, free cash flow, adjusted gross margin %, adjusted R&D % of total revenue, adjusted SG&A % of total revenue and adjusted effective tax rate internally for forecasting, budgeting, measuring its operating performance, and/or incentive-based awards. Prim
Slide 24: Net Earnings to Adjusted EBITDA
Mylan Upjohn Business Combined 245.9 2,081.0 2,326.90 37.4 - 37.4 46.4 269.0 315.4 353.4 224.0 577.4 1,263.0 237.0 1500.0 $ 1,946.1 $ 2,811.0 $ 4,757.1 49.8 50.0 99.8 36.5 59.0 95.5 606.6 41.0 647.6 $ 2,639.0 $ 2,961.0 $ 5,600.0 Net Earnings to Adjusted EBITDA (Unaudited; in millions) Litigation set
Slide 25: 2020 Preliminary Estimated Adjusted EBITDA Reconciliation
(Unaudited; in millions) 2020 Preliminary Estimated U.S. GAAP (loss) for Viatris (1) Plus: Preliminary estimated depreciation and amortization (3) 2020 Combined Preliminary Estimate Adjusted EBITDA, 2020 © viatris
Slide 26: Full Year 2021 Guidance Items
© viatris Full Year 2021 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Revenues $17,200 - $17,800 N/A Net Loss ‘$(100) - $(300) N/A Adjusted EBITDA N/A $6,000 - $6,400 ‘Net Cash provided by Operating Activities $2,650 - $2,800 N/A Free Cash Flow N/A {$2,000 - $2,300
Slide 27: 2021 Net Loss to Adjusted EBITDA and Free Cash Flow Reconciliation
(Unaudited;in milions) Estimated GAAP Net Loss $100) (300) ‘Adjusted EBITOA $6,000 - 6400 Ditference at mid-point) $ 6400 Estimated Reconciling tems: Depreciation and Amortization 3,100 ization of the Inventory Fair Value Adjustment from the combi 41200 Rerrucring and aston ated ots Interest "700 (t
Slide 28: 2021 Non-GAAP Financial Metrics
2021 Non-GAAP Financial Metrics The Non-GAAP financial metric Adjusted Gross Margin as a percentage of Revenues excludes the impact of Depreciation and Amortization, the Amortization of the Inventory Fair Value Adjustment from the Combination and certain Restructuring and Acquisition Related Costs w