Slide 1: Earnings Conference Call Fiscal Q3 2023
Earnings Conference Call Fiscal Q3 2023 August 8, 2023
Slide 2: 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 3: Agenda and Presenters
Agenda and Presenters Dev Kurdikar Today’s topics: Chief Executive Officer embecta overview Strategic priorities Jake Elguicze Chief Financial Officer Enterprise highlights Revenue and earnings review Guidance Pravesh Khandelwal Vice President, Investor Relations Q&A 3
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: Strategic Priorities for Fiscal Year 2023
Strategic Priorities for Fiscal Year 2023 Strengthen base business • Maintain core injection business revenue • Navigate through operating environment; manage costs Separate and stand-up • Continue to execute on ERP implementation • Manage through the temporary suspension of manufacturing operations
Slide 6: Q3 Fiscal Year 2023 Enterprise Highlights
Q3 Fiscal Year 2023 Enterprise Highlights • Continued execution leads to strong results that exceeded our internal expectations • Launched BD Micro-Fine™ PRO 34G Finer gauge (34G extra thin wall x 4mm) pen needle with Nano PRO hub design in Japan providing an alternate offering to people injecting i
Slide 7: Q3 FY23 vs. Q3 FY22 Revenue
Q3 FY23 vs. Q3 FY22 Revenue Dollars in Millions Three Months Ended % Increase / Decrease As-Reported Foreign Currency Constant Currency June 30, 2023 June 30, 2022 Revenue Growth Impact Revenue Growth U.S. $153.9 $158.0 (2.6%) ꟷ (2.6%) International $132.2 $133.1 (0.7%) (3.1%) 2.4% Total $286.1 $291
Slide 8: Q3 FY23 Financial Highlights
Q3 FY23 Financial Highlights Q3 FY23 revenue of $286.1 million, down 1.7% on an as-reported basis; down 0.3% on a constant currency basis, as compared to Revenue the prior year period Gross Q3 FY23 GAAP gross profit and margin of $189.5 million and 66.2%, compared to $202.9 million and 69.7% in the
Slide 9: Fiscal Year 2023 Financial Guidance
Fiscal Year 2023 Financial Guidance Dollars in Millions, Current Previous (1) except per share and percentages Low High Low High Revenue $1,107 $1,113 $1,101 $1,113 As-Reported % (2.0%) (1.5%) (2.5%) (1.5%) Constant Currency % 0.5% 1.0% 0.0% 1.0% F/X % (2.5%) (2.5%) Contract Manufacturing ~ $11 $7.5
Slide 10: Thank you
Thank you
Slide 11: Appendix
Appendix embecta’
Slide 12: 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 13: Adjusted Gross Profit Margin Reconciliation
Adjusted Gross Profit Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2023 (1) June 30, 2023 (1) Gross Profit $189.5 $568.1 Gross Profit Margin 66.2% 67.7% Stock-based compensation expense — 0.1 Amortization of intangible assets (2) 0.1 0.4
Slide 14: Adjusted Operating Income Margin Reconciliation
Adjusted Operating Income Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2023 (1) June 30, 2023 (1) GAAP Operating Income $51.3 $195.7 GAAP Operating Income Margin 17.9% 23.3% Amortization of intangible assets (2) 0.1 0.4 One-time stand up
Slide 15: Adjusted Operating Income Margin Reconciliation – Continued
Adjusted Operating Income Margin Reconciliation – Continued (1) Prior to the Separation on April 1, 2022, the Company’s historical combined financial statements were prepared on a standalone basis. These results did not purport to reflect what the Company’s results of operations, comprehensive incom
Slide 16: Adjusted Net Income Per Diluted Share Reconciliation
Adjusted Net Income Per Diluted Share Reconciliation Dollars in Millions, except per share amounts Three Months Ended Nine Months Ended June 30, 2023 (1) June 30, 2023 (1) Income Before Income Taxes $20.1 $100.7 Adjustments: Amortization of intangible assets (2) 0.1 0.4 One-time stand up costs (3) 2
Slide 17: Adjusted Net Income Per Diluted Share Reconciliation – Continued
Adjusted Net Income Per Diluted Share Reconciliation – Continued (1) Prior to the Separation on April 1, 2022, the Company’s historical combined financial statements were prepared on a standalone basis. These results did not purport to reflect what the Company’s results of operations, comprehensive
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 GAAP Net Income $15.2 $62.4 $64.4 $240.8 Interest expense, net 27.0 19.5 79.4 24.4 Income taxes 4.9 11.2 36.3 43.3 Depreciation and amor
Slide 19: Adjusted EBITDA Reconciliation – Continued
Adjusted EBITDA Reconciliation – Continued (1) Represents stock-based compensation expense incurred during the three and nine months ended June 30, 2023 and 2022, respectively. For the three months ended June 30, 2023, $4.6 million is recorded in Selling and administrative expense, $0.6 million is r
Slide 20: Fiscal Year 2023 Updated Financial Guidance Assumptions
Fiscal Year 2023 Updated Financial Guidance Assumptions Dollars in Millions, except percentages Current Previous Interest Expense, Net ~ $112 ~ $113 Adjusted Tax Rate ~ 25% ~ 25% Weighted Average Shares (in millions) ~ 57.7 ~ 57.7 Foreign Exchange EUR/USD ~ 1.06 ~ 1.06 USD/YEN ~ 137 ~ 136 USD/CNY ~