Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — J.P. Morgan Healthcare Conference 2023
17 slides from Elanco Animal Health's conference presentation, Jan 9, 2023
Slide 1: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference January 10, 2023 Jeff Simmons President & Chief Executive Officer
Slide 2: Forward-looking statements
© 2023 Elanco or its affiliates This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933 and Sectio n 21E of the Securities Exchange Act of 1934 (Exchange Act), including, without limitation , our long - term revenue and earnings growth
Slide 3: Today's Focus: A Leader in the Growing Animal Health Industry
© 2023 Elanco or its affiliates Today’s Focus Attractive Global Industry Backdrop driven by increased pet ownership and protein demand Independent, Product - Focused Animal Health Leader Innovation, Portfolio, Productivity (IPP) Strategy to Optimize Serving Customers and Creating Value Differentiate
Slide 4: Animal Health Market Expected to Remain Durable in 2023
© 2023 Elanco or its affiliates Animal Health Market Expected to Remain Durable in 2023 Note: Industry figures represent Elanco market analysis for 2022 based on Vetnonsis , Animal Pharm and internal estimates for animal health medicines and vaccines. Industry Success Factors: Broad Portfolios, Inno
Slide 5: Elanco: An Independent, Product-Focused Leader
© 2023 Elanco or its affiliates Elanco: An Independent, Product - Focused Leader (1) Non - GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non - GAAP reconciliations. (2) 5 potential blockbusters include Experior, parvovirus treatment, broad spectrum
Slide 6: IPP: Innovation, Portfolio, Productivity
© 2023 Elanco or its affiliates 6 Focused on consistently delivering high margin products in large market spaces 8 product approvals in major markets in 2022; additional approvals expected in 2023 Path to 5 potential blockbusters ($100M+) approved by H1 2024 Expect to deliver $600 to $700M in innova
Slide 7: IPP: Consistent, High Impact Innovation in Animal Health
© 2023 Elanco or its affiliates 7 IPP: Consistent, High Impact Innovation in Animal Health 1 Refreshed Structure The One Elanco R&D organization has moved past integration, entering a more stable phase. With optimized resource allocation, streamlined ways of working, and deepened technical expertise
Slide 8: IPP: Progress and Outlook
© 2023 Elanco or its affiliates Asset U.S. Regulatory Agency Species Research Exploratory Development Product Development Initial Submission (1) Approval Peak Sales Opportunity (3) Zorbium Pain FDA (Rx) Advantage XD OTC Flea EPA (OTC) H2 2023 (2) Bexacat SGLT - 2 Diabetes FDA (Rx) KIND - 030 Parvovi
Slide 9: Portfolio positions in Pet Health and Farm Animal
© 2023 Elanco or its affiliates (1) OTV = outside the vet (2) Excluding vaccines (3) MFA = medicated feed additives Market Leader in OTC parasiticides, pain Competitive Innovation in Rx parasiticides Portfolio Gap in dermatology Innovating across dermatology, broad spectrum and OTC parasiticides, ot
Slide 10: IPP: Productivity Progress & Proof Points
© 2023 Elanco or its affiliates IPP: Productivity Progress & Proof Points (1) Non - GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non - GAAP reconciliations. (2) B ased on the midpoint of 2022 full year guidance, as provided in the Company’s Q3 202
Slide 11: Key Considerations for 2023
© 2023 Elanco or its affiliates Key Considerations for 2023 Slide as initially shared in Q3 2022 Earnings Call Slides on November 8, 2022. Tailwinds Innovation ramp and new launches More consistent supply chain inputs Price growth Improving dynamics in China Productivity efforts to continue; inflati
Slide 12: Differentiated Trends to Watch in Animal Health
© 2023 Elanco or its affiliates Differentiated Trends to Watch in Animal Health Innovation Globalization Farm Sustainability Emergence of generic models , primarily in Farm Animal market; increased importance of innovation and portfolios of solutions Global access to trade for meat is essential to e
Slide 13: A Compelling Long Term Value Proposition
© 2023 Elanco or its affiliates 13 A Compelling Long Term Value Proposition Leader in Attractive, Durable Global Market Increasing demand for protein Pet ownership and spending tailwinds Targeted Value - Generating Strategy Innovation, Portfolio, and Productivity (IPP) strategy, with EVA - like comp
Slide 14: Guidance and GAAP reported to non-GAAP adjusted reconciliations
Guidance and GAAP reported to non - GAAP adjusted reconciliations Appendix 14
Slide 15: Full Year 2022 Financial Guidance
© 2023 Elanco or its affiliates 15 Full Year 2022 Financial Guidance (1) (as of November 8, 2022) $ millions, except per share values November Revenue $4,385 - $4,430 Reported Net Loss $(82) - $(57) Adjusted EBITDA (2) $1,010 - $1,045 Reported Diluted EPS $(0.17) - $(0.12) Adjusted Diluted EPS (2) $
Slide 16: Full Year 2022 EPS Guidance Reconciliation
© 2023 Elanco or its affiliates 16 Full Year 2022 EPS Guidance Reconciliation (1) (as of November 8, 2022) Reported (Loss) per Share $(0.17) - $(0.12) Amortization of Intangible Assets $1.07 Asset Impairment, Restructuring, and Other Special Charges (2) $0.39 - $0.40 Other Expense, Net $0.04 Subtota
Slide 17: EBITDA Guidance Reconciliation
© 2023 Elanco or its affiliates 17 Full Year 2022 $ millions Reported Net Loss $(82) - $(57) Net Interest Expense Approx. $245 Income Tax Provision $(9) - $(5) Depreciation and Amortization Approx. $680 EBITDA $836 - $865 Non - GAAP Adjustments Asset Impairment, Restructuring, and Other Special Char
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