Maravai Lifesciences Holdings, Inc. · NASDAQ:MRVI
Maravai Lifesciences — Q4 2022 Earnings Presentation
33 slides from Maravai Lifesciences's earnings presentation, Feb 22, 2023
Slide 1: Q4 and Year-end 2022 Financial Results
NASDAQ: MRVI Q4 and Year-end 2022 Financial Results February 22, 2023 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 2: Agenda
Agenda 01 Welcome Deb Hart, Head of Investor Relations 02 Business Highlights Carl Hull, Chairman of the Board and Interim CEO & Update 03 Financial Results Kevin Herde, Chief Financial Officer & Guidance 04 Q&A Session Carl Hull, Chairman of the Board and Interim CEO Kevin Herde, Chief Financial Of
Slide 3: Forward Looking Statements and Use of Non-GAAP Financial Measures
Forward Looking Statements and Use of Non-GAAP Financial Measures This presentation contains, and our officers and representatives may from time-to-time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. I
Slide 4: Business Highlights & Update
Q4 AND 2022 Business Highlights & Update Carl Hull Chairman of the Board and Interim Chief Executive Officer 4 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 5: Q4 2022: Another Strong Quarter
Q4 2022: Another Strong Quarter • Base business ADJUSTED EPS1 revenue of $81 M, REVENUE ADJUSTED EBITDA1 up 67% y/y2 $205 M $130 M $0.35 per share • Adjusted free cash flow of $100 M during the quarter 1. Reconciliation provided on pages 31-33 2. Base business – total Maravai business without CleanC
Slide 6: 2022 Was an Incredible Year for Maravai
2022 Was an Incredible Year for Maravai REVENUE Net Income EBITDA Margins1 $883 M $491 M 72% Base Business Growth of 27%2 (without COVID-19 CleanCap®) 1. Reconciliation provided on pages 31-33 2. Base business – total Maravai business without CleanCap® COVID-19 vaccine related revenue, and adjusted
Slide 7: Nucleic Acid Production
Nucleic Acid Production Fourth quarter 2022 2022 NAP base Win in discovery revenues were Record $66 M NAP revenues were revenues were with the right products $189 M $813 M $213 M and services to of base revenue support clinical Revenue decline in Q4 Revenue growth Revenue growth development through
Slide 8: NAP: Supplying Key Raw Materials for Rapidly Growing Cell and Gene Therapy Market
NAP: Supplying Key Raw Materials for Rapidly Growing Cell and Gene Therapy Market 1,300+ active gene therapy INDs Maravai Critical Materials Gene therapy CleanCap® pDNA 1,200+ active cell therapy INDs mRNA >$12B investments in 2022 1 Enzymes NTPs Cell therapy Significant progress in CGT 1. Alliance
Slide 9: Broad and Growing mRNA Pipeline: Preclinical and Clinical Trials using CleanCap
Broad and Growing mRNA Pipeline: Preclinical and Clinical Trials using CleanCap® Programs by Clinical Phase 1% +70 12% Preclinical programs 15% Phase 1 Phase 2 >250 72% Phase 3 >180 Programs by Modality 12% mRNA Vaccine (Non-COVID) 26% 8% mRNA Therapeutic Cell Therapy 11% February December mRNA Vacc
Slide 10: Maravai + Alphazyme Strengthens our differentiated position in mRNA process solutions
Maravai + Alphazyme Strengthens our differentiated position in mRNA process solutions Founder-led Enzymatic Enzymes are proprietary expertise extends critical to nucleic custom enzyme our innovation acid production development capabilities Strong technical Solidifies our complement to customer our c
Slide 11: Biologics Safety Testing
Biologics Safety Testing Fourth quarter 2022 Provide revenues were revenues were Support products and services in Broad range of $15 M $70 M BioPharma support of cell and Revenue decline Revenue growth and gene therapies of 3% y/y up 2% y/y CDMO activities 11 ©2023 Maravai LifeSciences. This documen
Slide 12: BST: Traction in Growing Cell and Gene Therapy Market
BST: Traction in Growing Cell and Gene Therapy Market 15 out of 15 FDA and EMA-approved cell & gene therapies use Cygnus Host Cell Protein ELISA Kits for HCP testing for commercial product lot release Per regulatory requirements, viral vectors used as a component of CAR-T cell therapies or as gene t
Slide 13: Organizational Updates
Organizational Updates Nucleic Acid Production Segment BST Segment Nucleic Acid Products Nucleic Acid Services Enzymes Biologics Safety Testing Best-in-class nucleic acid Expertise in plasmid, RUO and Premier provider of Critical products for process chemistry products enable GMP mRNA and sgRNA to i
Slide 14: 2022 ESG Highlights
2022 ESG Highlights Environmental Enhanced Gender Transparency Onboarding Parity Enhanced disclosure by Implemented a new and Launched our first Employee measuring and reporting improved five-day Resource Group, Women in our Scope 1 and Scope 2 employee orientation Leadership, and have an GHG emissi
Slide 15: 2023 Revenue Guidance
2023 Revenue Guidance 2023 Revenue Guidance COVID-19 CleanCap® Revenue $420 to $460 million $100 million Base Business Growth of over 20% at the midpoint1 (without COVID-19 CleanCap®) 1. Base business – total Maravai business without CleanCap® COVID-19 vaccine related revenue 15 ©2023 Maravai LifeSc
Slide 16: Financial Results & Guidance
Q4 AND 2022 Financial Results & Guidance Kevin Herde Chief Financial Officer 16 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 17: Financial Overview
Financial Overview GAAP Net Income ($M)1 Quarterly Annual 31% 5% y/y Decline y/y Growth $491 $469 $127 $87 Q4 2021 Q4 2022 FY 2021 FY 2022 1. GAAP net income prior to amounts attributable to non-controlling interests 17 ©2023 Maravai LifeSciences. This document and its contents are confidential and
Slide 18: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA ($M)1 Quarterly Annual 20% 9% y/y Decline y/y Growth $638 $163 $583 $130 Q4 2021 Q4 2022 FY 2021 FY 2022 63% EBITDA Margin 72% EBITDA Margin 1. Adjusted EBITDA reconciliation provided on page 31 18 ©2023 Maravai LifeSciences. This document and its contents are confide
Slide 19: Earnings Per Share ($)
Earnings Per Share ($) Q4 and FY 2022 EPS1,2,3 $2.00 $1.80 $1.80 $1.67 $1.67 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.35 $0.28 $0.28 $0.20 $0.00 Q4 2022 FY 2022 Basic EPS Diluted EPS Adjusted EPS 1. Basic EPS (GAAP) equals Net Income attributable to our Class A shares divided by the weighted ave
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights CASH LONG-TERM DEBT 0.8X -0.1X $632 M $538 M GROSS DEBT/ FY 20221 EBITDA NET DEBT/ FY 20221 EBITDA Adjusted Free Cash Flow2 = $100 M in Q4 2022 and $591 M for 2022 (Adjusted EBITDA less Capital Expenditures) 1. Using FY 2022 Adjusted EBITDA of $637.8 million 2. Reconciliatio
Slide 21: Nucleic Acid Production Financial Highlights
Nucleic Acid Production Financial Highlights NAP base business (without COVID-19 CleanCap®) grew 101% in Q4 and 38% annually Quarterly Annual 11% 14% y/y Decline y/y Growth $813 $213 $712 $189 Q4 2021 Q4 2022 FY 2021 FY 2022 • 92% of total Maravai revenue • 92% of total Maravai revenue • $135 M of A
Slide 22: Biologics Safety Testing Financial Highlights
Biologics Safety Testing Financial Highlights Quarterly Annual 3% 2% y/y Decline y/y Growth $70 $68 $16 $15 Q4 2021 Q4 2022 FY 2021 FY 2022 • 8% of total Maravai revenue • 8% of total Maravai revenue • $11 M of Adjusted EBITDA1 • $55 M of Adjusted EBITDA1 1. Reconciliation provided on page 31-33 22
Slide 23: 2023 Commentary and Goals
2023 Commentary and Goals INVESTING LONG-TERM PARTNER QUALITY in our business to have the that can support customers levels from RUO to GMP, breadth and depth of offerings through phases of combined with the value of to create value for customers development and our experience and service and shareh
Slide 24: 2023 Guidance
2023 Guidance CleanCap® REVENUE COVID-19 REVENUE ADJUSTED EPS1 ADJUSTED EBITDA1 $420 to $460 $100 $0.32 to $0.38 $170 to $190 million million per share million Guidance reflects base business revenue growth of over 20% at the midpoint2 1. Reconciliations provided on page 31-33 2. Base business – tot
Slide 25: Other 2023 Model Assumptions
Other 2023 Model Assumptions • Adjusted fully diluted EPS is based on the assumption that all Class B shares are converted to Class A shares, which results in a forecasted fully diluted share count of 252 million for the full year of 2023. • Additionally, our adjusted fully diluted EPS, including ce
Slide 26: Expanding our team and facility footprint to support growth
Expanding our team and facility footprint to support growth Nucleic Acid Products Nucleic Acid Products & Nucleic Acid Services Glen Research Sterling, VA TriLink BioTechnologies + Maravai Shared Services Wateridge (HQ) Pacific Center Brown Deer Biologics Safety Testing Flanders 1 Cygnus Technologie
Slide 27: Closing Commentary
Q4 AND 2022 Closing Commentary Chairman of the Board and Interim Chief Executive Officer 27 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 28: In Closing – We are Building a Strong Foundation for Long-Term Growth
In Closing – We are Building a Strong Foundation for Long-Term Growth • Poised for growth in our base business in 2023 and beyond • Building our portfolio in high-value areas • Non-COVID-19 vaccines and cell and gene therapies provide longer-term growth opportunities We will continue to focus on Ope
Slide 29: Q&A
Q&A 29 ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 30: Thank you
Thank you Together, we enable the miracles of science. ©2023 Maravai LifeSciences. This document and its contents are confidential and proprietary and are not to be shared or redistributed without express consent.
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Net Income to Adjusted EBITDA This presentation contains financial measures that have not Three Months Ended Year Ended been calculated in accordance with accounting principles December 31, December 31, generally accepted in the U.S. (GAAP). These non-GAAP 2022 2021 2022 202
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income and Adjusted Net Income per Diluted Share Three Months Ended Year Ended These non-GAAP measures are supplemental measures of December 31, December 31, operating performance that is not prepared in accordance 2022 2021 2022 2021 with GAAP and that does not
Slide 33: Explanatory Notes to Reconciliations
Explanatory Notes to Reconciliations Explanatory Notes to Reconciliations (1) Refers to the change in the estimated fair value of performance payments related to the acquisition of MyChem, LLC (“MyChem”), which was completed in January 2022. (2) Refers to incremental costs incurred to execute and in
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