Organon & Co. · NYSE:OGN
Organon & — Q2 2021 Earnings Presentation
22 slides from Organon &'s earnings presentation, Oct 17, 2021
Slide 1: Organon Q2 2021 Earnings
Organon Q2 2021 Earnings it: ORGANON
Slide 2: Disclaimer statement
Disclaimer statement This text should be viewed in conjunction with Organon’s Q2 2021 earnings call Safe Harbor for Forward-Looking Statements Exc p f r h h s r c l f rm h r h s pr s f Org & . ( h “c mp y”) cl s “f rw r -looking statem s” w h h meaning of the safe harbor provisions of the U.S. Priva
Slide 3: Disclaimer statement, cont.
Disclaimer statement, cont. Non-GAAP Information This presentation includes information based on financial measures that are not recognized under generally accepted accounting principles in h S s (“ AA ”) s ch s A j s E ITDA A j s N I c m A j s Dl E r gs p r Share. Non-GAAP financial m s r s r pr s
Slide 4: Second quarter 2021 highlights
Second quarter 2021 highlights • June 2nd, official spin from Merck • June 3rd Org c l r s “H r D y” g s r g s “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(2) 1. Adjusted measures a
Slide 5: Broad and diverse portfolio
Broad and diverse portfolio Women’s Health Biosimilars Established Brands Number of products 11 5 49 5
Slide 6: NEXPLANON, differentiated and patented contraceptive offering
NEXPLANON, differentiated and patented contraceptive offering Differentiating attributes for women NEXPLANON objectives • Single implant, long acting, • Target annual sales of reversible hormonal $1Bn+ contraceptive • Accelerate long-term • # 1 implantable (1) growth • # 2 LARC (1) • Become preferre
Slide 7: Geographic revenue performance
Geographic revenue performance Actual Ex FX $ mil Q2-21 Q2-20 1 VPY VPY Asia Pac and 29% Europe and Canada 470 378 24% 13% Japan 19% United States 339 303 12% 12% Asia Pacific and Japan 309 419 -26% -29% 4 China 236 211 12% 2% 12% 2 Latin America, Middle East, 15% 190 187 2% 0% Russia and Africa Oth
Slide 8: Q2 Revenue bridge
Q2 Revenue bridge +5% reported -1% ex-FX $ mil 1,595 ~85 1,526 ~20 ~40 ~130 ~100 ~40 Q2 2020 LoE China VBP COVID-19 Performance Other FX Q2 2021 8
Slide 9: Women's Health
Women’s Health • Nexplanon up 39% • Strong growth in fertility 741 816 • Executing on BD strategy 350 417 Series1 Series2 Series3 Series4 Women’s Act Ex FX 2021 2020 Act Ex FX Revenues $ mil Q2-21 Q2-20 Health VPY VPY YTD YTD VPY VPY NEXPLANON 184 132 40% 39% 368 326 13% 12% FOLLISTIM 65 44 48% 40%
Slide 10: Biosimilars
Biosimilars • Renflexis up ~ 38% Y/Y • Ontruzant growth 13% driven by US 166 launch 86 128 • Hadlima launched in Australia and 60 Canada Series1 Series2 Series3 Series4 Biosimilars Revenues $ mil Q2-21 Q2-20 Act Ex FX 2021 2020 Act Ex FX VPY VPY YTD YTD VBP VPY RENFLEXIS 43 30 41% 38% 81 59 38% 36%
Slide 11: Established brands
Established brands • Long tail products with dissipating LOE • China retail growth helping to 2,389 2,002 1,092 1,045 offset VBP • Revenue down ~2% excluding LOE Series1 Series2 Series3 Series4 Established Act Ex FX 2021 2020 Act Ex FX Revenues $ mil Q2-21 Q2-20 Brands VPY VPY YTD YTD VPY VPY Cardio
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) 1,044 1,087 -4%
Slide 13: Revenue drivers consistent with prior guidance
Revenue drivers consistent with prior guidance $billions $6.6 (1) (0.3) – (0.4) +0.2 $6.1 – $6.4(1) (0.2) – (0.3) +0.2 - +0.3 (0.1) – (0.2) 0.0 2020 LOE China Price COVID-19 Performance FX impact (2) 2021 E Actuals VBP (1) Reflects full-year pro forma revenue for both 2020 & 2021 including other rev
Slide 14: Affirming full year 2021 proforma guidance
Affirming full year 2021 proforma guidance Non-GAAP, proforma as if OGN Prior Guidance Revised Guidance was standalone Jan 1, 2021 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-single d
Slide 15: Q&A
Q&A -i ORGANON
Slide 16: Appendix
[Organon] Confidential Appendix 16
Slide 17: Second quarter and YTD revenue
Second quarter and YTD revenue Actual Ex FX 2021 2020 Actual Ex FX $ mil Q2-21 Q2-20 VPY VPY YTD YTD VPY VPY W m ’s H lh 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 3,306 -6% -1
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 amortization and
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 Adjusted EBITDA
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 21 Ad
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 income from
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-tax i