Slide 1: 4Q 2021 and Full Year 2021 Investor Update
4Q 2021 and Full Year 2021 Investor Update February 24, 2022
Slide 2: Introduction
PROPRIETARY AND CONFIDENTIAL 24Q 2021 Investor Update Introduction Robert G. Burrows Vice President, Investor Relations Officer
Slide 3: Forward-looking statements
This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, our financial guidance and related projections and statements regarding our abili
Slide 4: Non-GAAP financial measures
This presentation contains four financial measures Adjusted Net Income, Adjusted Net Income Per Diluted Share, Adjusted EBITDA (Earnings Before Interest, Taxes, and Depreciation and Amortization), and Adjusted Gross Margin, all of which are considered “non-GAAP” financial measures under applicable S
Slide 5: Agenda
Agenda 54Q 2021 Investor Update Financial Forecast: -- FY2022 -- 1Q22 (revenues only) • Rich Lindahl, CFO INTRODUCTION Q&A • Bob Kramer, CEO • Rich Lindahl, CFO • Adam Havey, COO Financial Results: -- 4Q21 vs. 4Q20 -- FY21 vs. FY20 • Rich Lindahl, CFO State of the Company: 2021 Review & Outlook for
Slide 6: State of the Company
PROPRIETARY AND CONFIDENTIAL4Q 2021 Investor Update State of the Company Bob Kramer President and Chief Executive Officer 6
Slide 7: Key Highlights of Full Year 2021
Key Highlights of Full Year 2021 74Q 2021 Investor Update STATE OF THE COMPANY Generated total revenues of $1.8B, adjusted EBITDA of $518M, and significant operating cash flow. Realized over $600M in government contract options exercised, including for ACAM2000, VIGIV and AV7909. Initiated the rolli
Slide 8: Outlook for 2022 and Beyond
Outlook for 2022 and Beyond 84Q 2021 Investor Update CDMO Services: • Complete optimization of Bayview site • Operationalize investments in expanded capacities and capabilities at key sites • Pursue strategic opportunities to further expand capabilities across CDMO site network STATE OF THE COMPANY
Slide 9: Financial Results
PROPRIETARY AND CONFIDENTIAL 94Q 2021 Investor Update Financial Results Richard S. Lindahl Executive Vice President and Chief Financial Officer
Slide 10: 4Q21 Summary Points Demonstrating Business Strength
4Q21 Summary Points Demonstrating Business Strength 104Q 2021 Investor Update Medical countermeasures business line reinforced with ACAM2000 and AV7909 contract option exercises for continued procurement Nasal naloxone products continue to strongly battle the opioid crisis R&D pipeline advancing – l
Slide 11: Key Financial Performance Metrics 4Q21 vs. 4Q20
4 Q 2 0 Key Financial Performance Metrics 4Q21 vs. 4Q20 114Q 2021 Investor Update Total Revenues Adjusted EBITDA1 Adjusted Net Income Per Diluted Share1 Adjusted Net Income1 1. See the Appendix for a definition of non-GAAP terms and reconciliation tables. $583.0 $723.2 $3.67 $4.50 FINANCIAL RESULTS
Slide 12: CDMO Metrics Trends
66 66 67 71 70 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 $1,340 $1,343 $1,097 $1,002 $837 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 CDMO Metrics Trends 124Q 2021 Investor Update 1. New Business Secured is defined as initial value of contracts secured as well as incremental value of existing contract
Slide 13: Key Financial Performance Metrics FY21 vs. FY20 (1 of 2)
F Y 2 0 Key Financial Performance Metrics FY21 vs. FY20 (1 of 2) 134Q 2021 Investor Update Adjusted EBITDA1 Adjusted Net Income Per Diluted Share1 Adjusted Net Income1 1. See the Appendix for a definition of non-GAAP terms and reconciliation tables. $1,555.4 $1,792.7 $7.88 $6.02 FINANCIAL RESULTS $6
Slide 14: Key Financial Performance Metrics FY21 vs. FY20 (2 of 2)
F Y 2 0 Key Financial Performance Metrics FY21 vs. FY20 (2 of 2) 144Q 2021 Investor Update SG&A R&D Adjusted Gross Margin2Gross Margin2 1. Reflects absolute value for the indicated period expressed as a percentage of total revenues for the indicated period. 2. See the Appendix for a definition of no
Slide 15: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 154Q 2021 Investor Update 1. Debt amount indicated on the Company’s balance sheet is net of unamortized debt issuance costs of $8.5M. 2. Net Debt is calculated as Total Debt minus Cash. 3. Net Capital Expenditures includes reimbursements of $84.8M. FINANCIAL RESULTS
Slide 16: 2022 Forecast – Revised as of 02/24/2022
2022 Forecast – Revised as of 02/24/2022 164Q 2021 Investor Update FINANCIAL RESULTS 1. See the Appendix for a definition of non-GAAP terms and reconciliation tables. ( $ I N M I L L I O N S ) M E T R I C U P D A T E D F O R E C A S T P R E V I O U S F O R E C A S T ( 0 1 / 0 9 / 2 2 ) Total Revenue
Slide 17: Key Takeaways – 2022 a Year to Re-Baseline
Continued solid contributions from our Government/Medical Countermeasure products business and our Commercial products business Key Takeaways – 2022 a Year to Re-Baseline 174Q 2021 Investor Update FINANCIAL RESULTS More normalized performance from our CDMO services business Achievement of important
Slide 18: Q&A
PROPRIETARY AND CONFIDENTIAL 184Q 2021 Investor Update Q&A
Slide 19: Appendix
194Q 2021 Investor Update Appendix
Slide 20: Reconciliation of Net Income to Adjusted Net Income – 4Q21 vs. 4Q20
Reconciliation of Net Income to Adjusted Net Income – 4Q21 vs. 4Q20 204Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S , E X C E P T P E R S H A R E A M O U N T S ) T H R E E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 2 1 2 0 2 0 S O U R C E Net income $189.3 $185.4 Adjustments: + Non-c
Slide 21: Reconciliation of Net Income to Adjusted Net Income – FY21 vs. FY20
Reconciliation of Net Income to Adjusted Net Income – FY21 vs. FY20 214Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S , E X C E P T P E R S H A R E A M O U N T S ) T W E L V E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 2 1 2 0 2 0 S O U R C E Net income $230.9 $305.1 Adjustments: + Non
Slide 22: Reconciliation of Net Income to Adjusted Net Income – 2022 Forecast
Reconciliation of Net Income to Adjusted Net Income – 2022 Forecast 224Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S ) F U L L Y E A R F O R E C A S T 2 0 2 2 F S O U R C E Net income $45-$90 Adjustments: + Non-cash amortization charges 60 Intangible Asset Amortization, Other Income + Chan
Slide 23: Reconciliation of Net Income to Adjusted EBITDA – 4Q21 vs. 4Q20
Reconciliation of Net Income to Adjusted EBITDA – 4Q21 vs. 4Q20 234Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S ) T H R E E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 2 1 2 0 2 0 Net income $189.3 $185.4 Adjustments: + Income taxes 78.2 67.4 + Depreciation & amortization 29.3 28.9 +
Slide 24: Reconciliation of Net Income to Adjusted EBITDA – FY21 vs. FY20
Reconciliation of Net Income to Adjusted EBITDA – FY21 vs. FY20 244Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S ) T W E L V E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 2 1 2 0 2 0 Net income $230.9 $305.1 Adjustments: + Depreciation & amortizationIncome taxes 123.8 114.5 + Income ta
Slide 25: Reconciliation of Net Income to Adjusted EBITDA – 2022 Forecast
Reconciliation of Net Income to Adjusted EBITDA – 2022 Forecast 254Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S ) F U L L Y E A R F O R E C A S T 2 0 2 2 F Net income $45-$90 Adjustments: + Depreciation & amortization 133 + Provision for income taxes 26-41 + Total interest expense, net 33
Slide 26: Reconciliation of Gross Margin and Adjusted Gross Margin – FY21 vs. FY20
Reconciliation of Gross Margin and Adjusted Gross Margin – FY21 vs. FY20 264Q 2021 Investor Update APPENDIX ( $ I N M I L L I O N S , E X C E P T P E R S H A R E A M O U N T S ) T W E L V E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 2 1 2 0 2 0 Total revenues $1,792.7 $1,555.4 - Non-cash amorti
Slide 27: www.emergentbiosolutions.com
www.emergentbiosolutions.com