Organon & Co. · NYSE:OGN
Organon & — Q2 2021 Earnings Presentation
22 slides from Organon &'s earnings presentation, Aug 12, 2021
Slide 1: Q2 2021 Earnings
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Slide 2: Disclaimer statement: Safe Harbor for Forward-Looking Statements
Disclaimer statement Safe Harbor for Forward - Looking Statements Except for the historical information herein, this presentation of Organon & Co. (the “company”) includes “forward - looking state ments” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Refor
Slide 3: Disclaimer statement, cont. Non-GAAP Information
Disclaimer statement, cont. Non - GAAP Information This presentation includes information based on financial measures that are not recognized under generally accepted accountin g p rinciples in the United States (“GAAP”), such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings pe
Slide 4: Second quarter 2021 highlights
Second quarter 2021 highlights 4 • June 2 nd , official spin from Merck • June 3 rd , Organon celebrates “Her Day”, begins trading as “OGN” on the NYSE • Declares inaugural dividend Q2 2021 • $1.6 billion Revenue • $627 million Adjusted EBITDA (1) • $1.72 Adjusted EPS (1) from continuing operations
Slide 5: Broad and diverse portfolio
Number of products 11 5 49 Broad and diverse portfolio 5 Women’s Health Biosimilars Established Brands
Slide 6: NEXPLANON, differentiated and patented contraceptive offering
NEXPLANON, differentiated and patented contraceptive offering 4 cm 2 mm 1 min INSERTION TIME 2 min REMOVAL TIME (1) Based on 2020 IQVIA data. Dollar share. • Single implant, long acting, reversible hormonal contraceptive • # 1 implantable (1) • # 2 LARC (1) • 3 - year efficacy (currently) • minutes
Slide 7: Geographic revenue performance
Geographic revenue performance $ mil Q2 - 21 Q2 - 20 Actual VPY Ex FX VPY Europe and Canada 470 378 24% 13% United States 339 303 12% 12% Asia Pacific and Japan 309 419 - 26% - 29% China 236 211 12% 2% Latin America, Middle East, Russia and Africa 190 187 2% 0% Other (1) 51 28 82% 55% Total Revenue
Slide 8: Q2 Revenue bridge
~130 ~40 ~100 ~40 ~20 ~85 Q2 Revenue bridge LoE Q2 2020 China VBP COVID - 19 Performance FX Q2 2021 1,526 1,595 +5 % reported - 1% ex - FX $ mil Other 8
Slide 9: Women's Health
Women’s Health Women’s Health Revenues $ mil Q2 - 21 Q2 - 20 Act VPY Ex FX VPY 2021 YTD 2020 YTD Act VPY Ex FX VPY NEXPLANON 184 132 40% 39% 368 326 13% 12% FOLLISTIM 65 44 48% 40% 117 85 37% 31% NUVARING 53 63 - 16% - 19% 98 126 - 22% - 24% Ganirelix Acetate 31 14 117% 102% 60 30 101% 89% CERAZETTE
Slide 10: Biosimilars
Biosimilars Biosimilars Revenues $ mil Q2 - 21 Q2 - 20 Act VPY Ex FX VPY 2021 YTD 2020 YTD Act VBP Ex FX VPY RENFLEXIS 43 30 41% 38% 81 59 38% 36% ONTRUZANT 22 19 20% 13% 45 41 11% 3% BRENZYS 11 11 - - 16% 21 29 - 27% - 35% Other 10 - - - 19 - - - Biosimilars 86 60 43% 35% 166 128 30% 23% 10 • Renfl
Slide 11: Established Brands
Established Brands Revenue up/down Established brands Revenues $ mil Q2 - 21 Q2 - 20 Act VPY Ex FX VPY 2021 YTD 2020 YTD Act VPY Ex FX VPY Cardiovascular 430 489 - 12% - 18% 819 1,000 - 18% - 23% Respiratory 248 240 3% - 1% 484 639 - 24% - 27% Non - Opioid Pain, Bone & Derm . 218 202 8% - 398 412 -
Slide 12: Q2 and YTD 2021
Q2 and YTD 2021 $ mil Q2 - 21 Q2 - 20 Actual VPY 2021 YTD 2020 YTD Actual VPY Revenue 1,595 1,526 5% 3,101 3,306 - 6% Cost of Goods Sold 583 460 27% 1,174 998 18% Gross profit 1,012 1,066 - 5% 1,927 2,308 - 17% Gross margin 63.4% 69.9% - 9% 62.1% 69.8% - 11% Non - GAAP Adjusted Gross profit (1) 1,04
Slide 13: Revenue drivers consistent with prior guidance
Revenue drivers consistent with prior guidance (0.3) – (0.4) (0.2) – (0.3) (0.1) – (0.2) 0.0 +0.2 - +0.3 +0.2 FX impact (2) $6.6 (1) 2020 Actuals LOE COVID - 19 Price Performance 2021 E $6.1 – $6.4 (1) China VBP (1) Reflects full - year pro forma revenue for both 2020 & 2021 including other revenues
Slide 14: Affirming full year 2021 proforma guidance
Affirming full year 2021 [proforma] guidance Non - GAAP, proforma as if OGN was standalone Jan 1, 2021 Prior Guidance Revised Guidance August 12, 2021 Revenue $6.1B - $6.4B No change Gross Margin Low to mid - 60% range No change SG&A as % of revenue Mid - 20% range No change R&D as % of revenue Mid
Slide 15: Q&A
Q&A
Slide 16: Appendix
16 [Organon] Confidential Appendix
Slide 17: Second quarter and YTD revenue
Second quarter and YTD revenue $ mil Q2 - 21 Q2 - 20 Actual VPY Ex FX VPY 2021 YTD 2020 YTD Actual VPY Ex FX VPY Women’s Health 417 350 19% 16% 816 741 10% 8% Biosimilars 86 60 43% 35% 166 128 30% 23% Est. Brands 1,045 1,092 - 4% - 10% 2,002 2,389 - 16% - 21% Total Revenue 1,595 1,526 5% - 1% 3,101
Slide 18: Gross margin reconciliation
Gross margin reconciliation $ mil Q2 - 21 Q2 - 20 2021 YTD 2020 YTD Revenue 1,595 1,526 3,101 3,306 Cost of Goods Sold 583 460 1,174 998 Gross profit 1,012 1,066 1,927 2,308 Gross margin 63.4% 69.9% 62.1% 69.8% Amortization 22 21 42 42 One - time costs (1) 10 - 10 - Cost of goods sold less amortizat
Slide 19: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation $ mil Q2 - 21 Q2 - 20 Net income from continuing operations before income tax 437 702 Depreciation 21 13 Amortization (1) 22 21 Interest Expense 62 - EBITDA 542 736 Restructuring costs 1 19 One - time costs (2) 66 10 Stock based compensation 18 11 Adjuste
Slide 20: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation $ mil 2021 YTD 2020 YTD Net income from continuing operations before income tax 904 1,546 Depreciation 39 25 Amortization (1) 42 42 Interest Expense 62 - EBITDA 1,047 1,613 Restructuring costs 2 31 One - time costs (2) 115 23 Stock based compensation 29 2
Slide 21: Net Income to Adjusted Net Income reconciliation
Net Income to Adjusted Net Income reconciliation $ mil (except EPS) Q2 - 21 Q2 - 20 Net income from continuing operational before income tax 437 702 Amortization (1) 22 21 Restructuring costs 1 19 One - time costs (2) 66 10 Stock based compensation 18 11 Total Adjustments 107 61 Non - GAAP pre - tax
Slide 22: Net Income to Adjusted Net Income reconciliation
Net Income to Adjusted Net Income reconciliation $ mil (except EPS) 2021 YTD 2020 YTD Net income from continuing operational before income tax 904 1,546 Amortization (1) 42 42 Restructuring costs 2 31 One - time costs (2) 115 23 Stock based compensation 29 21 Total Adjustments 188 117 Non - GAAP pre