Slide 1: Q3 2021 Earnings
Q3 2021 Earnings November 8, 2021 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a V
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor the potential impact of public health outbreaks, epidemics and pandemics, including the ongoing challenges and provisions of the Private Securities Litigation Ref
Slide 3: Key References Non-GAAP Financial Measures
Key References 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 is rounding, and do not reflec
Slide 4: Q3 2021 – Continued Strong Execution & Results
Q3 2021 – Continued Strong Execution & Results • Strong Q3 Financial Performance Business (Total Revenues $4.54B; Adjusted EBITDA $1.70B) Performance • Robust Free Cash Flow $965M Q3; $2.2B YTD, & Execution Exceeding Low-end of Previous* Full Year Guidance Range • Raises Full Year 2021 Financial Gui
Slide 5: Virtual Investor Event
Virtual Investor Event Save the Date: Morning of January 7, 2022 Two-Phased Strategic Roadmap Phase 1 Completion (2021 – 2023) • Financial Guidance, Targets and Metrics for 2022 and 2023 • Free Cash Flow Generation and Phase 1 Capital Allocation Priorities • Returning Capital to Shareholders and Rep
Slide 6: Segment Results
Segment Results This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 6
Slide 7: Total Net Sales
Total Net Sales Combined HIGHLIGHTS ($M) Q3 2021 Adjusted Change Op Chg Q3 2020 Q3 Performance vs. Expectations Total Net Sales $4,520 $4,675 (3%) (4%) • Strong performance across all our segments Brands 2,803 2,878 (3%) (4%) • Brands: better than expectations driven by products such as Lipitor®, In
Slide 8: Developed Markets
Developed Markets Combined HIGHLIGHTS ($M) Q3 2021 Adjusted Change Op Chg Q3 2020 Q3 Performance vs. Expectations Net Sales $2,656 $ 2,680 (1%) (2%) • Europe net sales of $1.6B Brands 1,523 1,441 6% 5% • North America net sales of $1.1B Complex Gx & Biosimilars 305 326 (6%) (7%) • Brands: better tha
Slide 9: Emerging Markets
Emerging Markets Combined HIGHLIGHTS ($M) Q3 2021 Adjusted Change Op Chg Q3 2020 Q3 Performance vs. Expectations Net Sales $793 $826 (4%) (5%) • Brands: in line with expectations with continued strength from Viagra® and Lipitor® Brands 415 436 (5%) (4%) • Complex Gx & Biosimilars: lower than expecta
Slide 10: JANZ
JANZ Combined HIGHLIGHTS ($M) Q3 2021 Adjusted Change Op Chg Q3 2020 Q3 Performance vs. Expectations Net Sales $505 $625 (19%) (18%) • Brands: better than expectations, primarily driven by Amitiza®, Lyrica® and Creon® Net Sales $505 $476 6% 8% ex Impact of Lyrica® & Celebrex® LOEs • Complex Gx & Bio
Slide 11: Greater China
Greater China Combined HIGHLIGHTS ($M) Q3 2021 Adjusted Change Op Chg Q3 2020 Q3 Performance vs. Expectations Net Sales $567 $544 4% (2%) • Performed better than our expectations Brands 567 543 4% (2%) - Strong growth of 20% in the retail channel Complex Gx & Biosimilars 0 0 NM NM - Hospital channel
Slide 12: Pipeline
Pipeline This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 12
Slide 13: Biosimilars Key Pipeline Updates
Biosimilars Key Pipeline Updates Process and Global PK/PD* Clinical Product Therapeutic Area Cell line Formulation Preclinical Submission Approval Sales ($B)(1) (Phase 1) (Phase 3) Development Insulin Glargine 351K Diabetes & $4.0(2) (Semglee) Metabolism Pertuzumab (Perjeta®) $4.0 Oncology Insulin G
Slide 14: Complex Products Key Pipeline Updates
Complex Products Key Pipeline Updates Process and PK/PD Phase 1 Clinical Product Therapeutic Area Formulation PreClinical Submission Approval and Phase 2 (Phase 3) Development Meloxicam CNS & Anesthesia Glatiramer Once Monthly CNS Delamanid Tablets Infectious Disease Pretomanid Tablets Infectious Di
Slide 15: Complex Injectables Pipeline Updates
Complex Injectables Pipeline Updates Process and Early Phase Registration / Exhibit Product Therapeutic Area Q1 / Q2 Confirmed Formulation PK/Clinical Submission Approval Development / Clinical Batches Development Risperidone (Risperdal Consta) CNS & Anesthesia Octreotide Acetate (Sandostatin LAR) O
Slide 16: Q3 Financial Highlights
Q3 Financial Highlights This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 17: Q3 2021 Financial Highlights (Reported)
Q3 2021 Financial Highlights (Reported) ($M) Q3 2021 Q3 2020* CHANGE Total Net Sales $4,520 $2,948 53% Developed Markets 2,656 2,163 23% Emerging Markets 793 471 68% JANZ 505 282 79% Greater China 567 32 NM Other Revenues 16 24 (33%) Total Revenues $4,537 $2,972 53% Adjusted Gross Margin 60.0% 54.8%
Slide 18: Q3 2021 Net Sales vs. Combined Adjusted Q3 2020
Q3 2021 Net Sales vs. Combined Adjusted Q3 2020 ($M) 150 50 48 149 310 158 4,675 4,525 4,520 Combined LOE Combined LOE China URP/VBP Base Business New Product COVID-19 FX Q3 2021 Adjusted Q3 2020 Adjusted Q3 2020 Erosion Revenue See slide 3 for more information on operational change, Combined Adjust
Slide 19: Q3 2021 Adjusted EBITDA vs. Combined Adjusted Q3 2020
Q3 2021 Adjusted EBITDA vs. Combined Adjusted Q3 2020 ($M) Adjusted 39.2% EBITDA Adjusted Margin 37.4% EBITDA Margin 84 34 64 13 84 247 103 87 1,840 1,756 1,698 Combined LOE Combined China URP/VBP D&A Base Business New Product COVID-19 SG&A FX Q3 2021 Adjusted LOE Adjusted Margin Erosion Margins Q3
Slide 20: Q3 2021 Free Cash Flow
Q3 2021 Free Cash Flow ($M) Q3 2021 Q3 2021 YTD Q4 2021 vs. Q3 2021 Drivers • Lower Expected Adjusted EBITDA U.S. GAAP Net Cash Provided by Operating Activities $1,086 $2,494 • Phasing of One-Time Cash Costs • Semi-Annual Interest Payments • Ramp Up of Capital Expenditures Capital Expenditures (121)
Slide 21: 2021 Financial Guidance
2021 Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 22: Raising 2021 Financial Guidance
Raising 2021 Financial Guidance Previous* Updated Estimated Ranges Midpoint Estimated Ranges Midpoint UPDATED FY 2021 GUIDANCE DRIVERS Total $17.5B - $17.9B $17.7B $17.7B - $17.9B $17.8B • Strong Underlying Business Performance Revenues Across All Segments Adjusted $6.15B - $6.45B $6.3B $6.3B - $6.5
Slide 23: 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. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatr
Slide 24: Full Year 2021 Guidance Items
Viatris Inc. and Subsidiaries Full Year 2021 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $17,700 - $17,900 N/A Adjusted EBITDA N/A $6,300 - $6,500 Net Cash provided by $2,900 - $3,100 N/A Operating Activities Free Cash Flow N/A $2,400 - $2,600 This document contains propriet
Slide 25: Reconciliation of Estimated 2021 GAAP Net Cash to Free Cash Flow
Viatris Inc. and Subsidiaries Reconciliation of Estimated 2021 GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited; in millions) Estimated GAAP Net Cash provided by Operating Activities $2,900 - $3,100 Less: Capital Expenditures (450) - (550) Free Cash Flow $2,400 - $2,600 Th
Slide 26: Adjusted Net Earnings
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2021 2020 2021 2020 U.S. GAAP net earnings (loss)...............................................
Slide 27: Net Earnings (Loss) to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings (Loss) to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2021 2020 2021 2020 U.S. GAAP net earnings (loss)..............................
Slide 28: 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 September 30, 2021 Currency Impact 2021 Constant Currency (1) (In millions, except %s) 2021 2020 % Change Revenues Constant Currency % Change
Slide 29: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended Nine months ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP cost of sales................................................................
Slide 30: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended Nine months ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP R&D.......................................................................... $ 152.1 $
Slide 31: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP SG&A..................................................................................
Slide 32: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP total operating expenses......................................... $ 1,216.5 $
Slide 33: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP interest expense.....................................................................
Slide 34: Other Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other Expenses Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP other expense (income), net................................. $ 5.8 $ (7.5) $ 16.1 $ 24.
Slide 35: 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 U.S. GAAP earnings (loss) before income taxes..
Slide 36: Combined Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Combined Adjusted EBITDA Three months ended Nine months ended (In millions) September 30, 2020 September 30, 2020 Upjohn - U.S. GAAP Income before taxes....................... $ 533.8 $ 2,350.2 Int
Slide 37: Appendix
Appendix This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 37
Slide 38: Q3 2021 YTD Financial Highlights (Reported)
Q3 2021 YTD Financial Highlights (Reported) ($M) Q3 2021 YTD Q3 2020 YTD* CHANGE Total Net Sales $13,482 $8,232 64% Developed Markets 7,868 6,132 28% Emerging Markets 2,417 1,225 97% JANZ 1,488 806 85% Greater China 1,709 69 NM Other Revenues 63 90 (31%) Total Revenues $13,545 $8,322 63% Adjusted Gr
Slide 39: Q3 2021 YTD Total Net Sales
Q3 2021 YTD Total Net Sales Combined Adjusted ($M) Change Op Chg Q3 2021 Q3 2020 YTD YTD Total Net Sales $13,482 $13,501 0% (4%) Brands 8,229 8,349 (1%) (5%) Complex Gx & Biosimilars 994 956 4% 2% Generics 4,259 4,195 2% (2%) Excluding Impact of Japan’s Lyrica and Celebrex LOEs (~$519M* Net Sales) C
Slide 40: Q3 2021 Select Key Product Net Sales, On a Consolidated Basis
Q3 2021 Select Key Product Net Sales, On a Consolidated Basis ($M) Q3 2021 Q3 2021 YTD ($M) Q3 2021 Q3 2021 YTD Select Key Global Products Select Key Segment Products Lipitor® $410.0 $1,272.9 Influvac® $161.2 $165.3 Norvasc® 198.4 635.9 Amitiza® 49.5 147.5 Lyrica® 175.6 555.9 Xanax® 47.6 141.5 Viagr