Slide 1: Q3 2022 Earnings
Q3 2022 Earnings November 7, 2022 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 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 provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, 2022 financial guidance; on t
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Key References New product sales, new product launches or new product revenues refer to revenue from new products launched in 2022 and the c arryover impact of new products, including business development, launched within the last 12 months. Operational change refers to c
Slide 4: Q3 2022 – Focused Execution & Results
Q3 2022 – Focused Execution & Results • Seventh quarter of strong operational performance Business • Total Revenues $4.08B Performance • Adjusted EBITDA $1.50B & Execution • Free Cash Flow $765M Delivering • New product revenues of ~$144M in Q3 2022 the Pipeline • Launched lenalidomide in the U.S. i
Slide 5: Segment Results
Segment Results This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 5
Slide 6: Total Net Sales
Total Net Sales OPERATIONAL HIGHLIGHTS ($M) Q3 2022 Q3 2021 Change Op Change Q3 Performance vs. Expectations Net Sales $4,067 $4,520 (10%) (1%) • Strong performance across all our segments Brands 2,540 2,803 (9%) 1% • Brands: better than expectations driven by products such as Lipitor®, Brufen®, and
Slide 7: Developed Markets
Developed Markets OPERATIONAL HIGHLIGHTS ($M) Q3 2022 Q3 2021 Change Op Change Q3 Performance vs. Expectations Net Sales $2,431 $2,656 (8%) –% • Europe net sales of $1.4B Brands 1,328 1,523 (13%) (2%) • North America net sales of $1.1B Complex Gx & Biosimilars 295 305 (3%) 1% • Brands: better than e
Slide 8: Emerging Markets
Emerging Markets OPERATIONAL HIGHLIGHTS ($M) Q3 2022 Q3 2021 Change Op Change Q3 Performance vs. Expectations Net Sales $679 $793 (14%) (4%) (1) • Brands: ahead of expectations driven by strong performance in key markets like South Korea, Turkey, and Brands 429 415 4% 15% Thailand, including product
Slide 9: JANZ
JANZ OPERATIONAL HIGHLIGHTS ($M) Q3 2022 Q3 2021 Change Op Change Q3 Performance vs. Expectations Net Sales $383 $505 (24%) (12%) • Brands: in line with expectations, with consistent performance in both Japan & Australia Brands 212 299 (29%) (14%) • Complex Gx & Biosimilars: in line with expectation
Slide 10: Greater China
Greater China OPERATIONAL HIGHLIGHTS ($M) Q3 2022 Q3 2021 Change Op Change Q3 Performance vs. Expectations Net Sales $574 $567 1% 6% • Overall results better than expectations, while navigating the evolving policy environment and ongoing COVID Brands 572 567 1% 6% impacts Complex Gx & Biosimilars 0
Slide 11: Q3 Financial Highlights
Q3 Financial Highlights This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 12: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights ($M) Q3 2022 Q3 2021 CHANGE OP CHANGE Total Net Sales $4,067 $4,520 (10%) (1%) Developed Markets 2,431 2,656 (8%) –% Emerging Markets 679 793 (14%) (4%) JANZ 383 505 (24%) (12%) Greater China 574 567 1% 6% Other Revenues 11 16 NM NM Total Revenues $4,078 $4,537 (10%) (1%
Slide 13: Q3 2022 YTD Financial Highlights
Q3 2022 YTD Financial Highlights ($M) Q3 2022 Q3 2021 CHANGE OP CHANGE Total Net Sales $12,351 $13,482 (8%) (2%) Developed Markets 7,387 7,868 (6%) –% Emerging Markets 2,035 2,417 (16%) (8%) JANZ 1,234 1,488 (17%) (6%) Greater China 1,695 1,709 (1%) 1% Other Revenues 36 62 NM NM Total Revenues $12,3
Slide 14: Q3 2022 Total Net Sales and Adjusted EBITDA Walk
Q3 2022 Total Net Sales and Adjusted EBITDA Walk Net Sales ($M) 4,520 396 4,124 4,067 21 180 144 Q3 2021 Fx Q3 2021 at Competition on Other Base New Product Q3 2022 2022 Fx Rates Key US Products Business Erosion Net Sales Adjusted EBITDA ($M) 1,698 115 1,583 21 27 1,498 138 101 Q3 2021 Fx Q3 2021 at
Slide 15: Q3 2022 Free Cash Flow
Q3 2022 Free Cash Flow ($M) Q3 2022 Q3 2021 CHANGE Q3 2022 Drivers vs. Q3 2021 U.S. GAAP Net Cash Provided • EpiPen settlement of $259M in Q3 2022 $869 $1,086 (20%) by Operating Activities • Reduced one-time cash costs associated Capital Expenditures (104) (121) (14%) with restructuring and integrat
Slide 16: Capital Allocation – Delivering on our Financial Commitments
Capital Allocation – Delivering on our Financial Commitments >$5.1B Free Cash Flow over last 7 quarters • ~$2.1B in Debt Repayment YTD in 2022 Debt • ~$4.2B in Debt Repayment since the $1,074M Repayment beginning of 2021 $965M • Committed to Investment Grade Rating $799M $765M $719M $470M $326M • $0
Slide 17: 2022 Financial Guidance
2022 Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 18: Reaffirmed 2022 Financial Guidance
Reaffirmed 2022 Financial Guidance 2022 Guidance ($B) Estimated Ranges Q4 2022 Outlook Total Revenues(1) $16.2 - $16.7 • Expect operational momentum to continue Adjusted EBITDA(1) $5.8 - $6.2 • Gross Margin moderating due to impact of incremental inflation and segment / product mix Free Cash Flow(1)
Slide 19: 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. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatr
Slide 20: Full-Year 2022 Guidance Items
Viatris Inc. and Subsidiaries Full-Year 2022 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $16,200 - $16,700 N/A Adjusted EBITDA N/A $5,800 - $6,200 Net Cash provided by $3,100 - $3,300 N/A Operating Activities Free Cash Flow N/A $2,500 - $2,900 This document contains propriet
Slide 21: Reconciliation of Estimated 2022 Net Cash from Operations to Free Cash Flow
Viatris Inc. and Subsidiaries Reconciliation of Estimated 2022 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited; in millions) Estimated U.S. GAAP Net Cash provided by Operating Activities $3,100 - $3,300 Less: Capital Expenditures ($425) - ($575) Free Cash Flow $2,500
Slide 22: 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, 2022 2021 2022 2021 U.S. GAAP net earnings (loss).............................................................
Slide 23: 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, 2022 2021 2022 2021 U.S. GAAP net earnings (loss)............................................
Slide 24: Summary of Total Revenues by Segment
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment Three Months Ended Nine Months Ended September 30, September 30, 2022 Constant Constant 2022 Constant Constant 2022 Currency Currency Currency % 2022
Slide 25: 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, 2022 2021 2022 2021 U.S. GAAP cost of sales.............................................................. $
Slide 26: 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, 2022 2021 2022 2021 U.S. GAAP R&D............................................................... $ 174.9 $ 152.1 $ 47
Slide 27: 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, 2022 2021 2022 2021 U.S. GAAP SG&A..................................................................................
Slide 28: 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, 2022 2021 2022 2021 U.S. GAAP total operating expenses.....................................................
Slide 29: 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, 2022 2021 2022 2021 U.S. GAAP interest expense................................................................... $
Slide 30: Other (Income) Expense, Net
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other (Income) Expense, Net Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 U.S. GAAP other (income) expense, net..................................... $ (20.6)
Slide 31: Earnings Before Income Taxes and Income Tax Provision
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Earnings (Loss) Before Income Taxes and Income Tax Provision (Benefit) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 U.S. GAAP earnings (loss) befo
Slide 32: Gross Leverage - Debt to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA Gross Leverage Ratio is the ratio of Viatris’ total debt at notional amounts at September 30, 2022 to the sum of Viatris’ adjusted EBITDA for
Slide 33: Net (Loss) Earnings to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net (Loss) Earnings to Adjusted EBITDA Three Months Ended December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 U.S. GAAP net (loss) earnings............................................
Slide 34: Gross Leverage - Debt to Adjusted EBITDA - Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA - Q4 2020 Twelve Months Ended December 31, 2020 Combined Adjusted EBITDA $ 6,807.2 Reported debt balances: Long-term debt, including current p
Slide 35: Net Loss to Combined Adjusted EBITDA - Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to Combined Adjusted EBITDA - Q4 2020 Twelve months ended December 31, 2020 U.S. GAAP net loss..............................................................................................
Slide 36: Free Cash Flow over the Last 7 Quarters
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow over the Last 7 Quarters Free Cash Flow over Three Months Ended the last 7 quarters March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Sep
Slide 37: Appendix
Appendix This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 37
Slide 38: Q3 2022 Select Key Product Net Sales, on a Consolidated Basis
Q3 2022 Select Key Product Net Sales, on a Consolidated Basis (Unaudited; in millions) ($M) Q3 2022 Q3 2022 YTD ($M) Q3 2022 Q3 2022 YTD Select Key Global Products Select Key Segment Products Lipitor® $420.4 $1,266.1 Influvac® $159.3 $178.3 Norvasc® 189.3 600.1 Yupelri® 53.4 146.1 Lyrica® 156.5 483.