Viatris Inc. · NASDAQ:VTRS
Viatris — Mylan — Q3 2020 Earnings Presentation
22 slides from Viatris's earnings presentation, Nov 6, 2020
Slide 1: Q3 2020 Earnings
Mylan Q3 2020 EARNINGS November 6, 2020 Q3 2020 Earnings – All Results are Unaudited
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation, and any other statements about the proposed transaction pursuant to which Mylan will combine with Pfizer Inc.’s (“Pfizer”) Upjohn business (the “Upjohn
Slide 3: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights ($ in millions) Q3 2020 Q3 2019 Change Total Revenues $2,972.1 $2,961.7 ~Flat U.S. GAAP Gross Margins 39.0% 36.2% +280 bps Adjusted Gross Margins* 54.8% 52.8% +200 bps U.S. GAAP R&D as % of Total Revenues 4.4% 5.7% (130 bps) Adjusted R&D* as % of Total Revenues 4.2% 4.3%
Slide 4: Q3 2020 Segment Performance
Q3 2020 Segment Performance ($ in millions) Net Sales Segment Profitability* Net Sales + New Product Sales, Including Dimethyl Fumarate $489.9 $497.9 − Lower Volumes of Existing Products Primarily Driven By Lower EpiPen® Volumes, Partially Due to the Negative Impact of COVID-19 Which Resulted in Low
Slide 5: Q3 2020 YTD Financial Highlights
Q3 2020 YTD Financial Highlights ($ in millions) Q3 2020 YTD Q3 2019 YTD Change Total Revenues $8,322.5 $8,308.7 ~Flat U.S. GAAP Gross Margins 37.1% 33.8% +330 bps Adjusted Gross Margins* 54.0% 53.4% +60 bps U.S. GAAP R&D as % of Total Revenues 4.8% 5.9% (110 bps) Adjusted R&D* as % of Total Revenue
Slide 6: Appendix
Appendix Q3 2020 Earnings – All Results are Unaudited
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the presentation and discussion of certain financial information that differs from what is reported under U.S. GAAP. These non-GAAP financial measures, including, but not limited to, adjusted gross profit, adjusted gross margins, adjusted net ea
Slide 8: Adjusted Net Earnings
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended Nine months Ended September 30, September 30, (in millions) 2020 2019 2020 2019 U.S. GAAP net earnings (loss) $ 185.7 $ 189.8 $ 245.9 $ (3.7) Purchase accountin
Slide 9: Net Earnings to Adjusted EBITDA
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP net earnings (loss) $ 185.7 $ 189.8 $ 245.9 $ (3.7) Add / (deduct) adjustm
Slide 10: Summary of Total Revenues by Segment
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Summary of Total Revenues by Segment Three Months Ended September 30, 2020 2020 Constant Constant Currency Currency Currency % 2020 2019 % Change Impact (1) Revenues Change (2) Net sales North America
Slide 11: Cost of Sales
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Cost of Sales Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP cost of sales $ 1,813.6 $ 1,889.3 $ 5,232.2 $ 5,498.5 Deduct: Purchase accounting amortizati
Slide 12: R&D
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) R&D Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP R&D $ 129.8 $ 167.9 $ 400.3 $ 488.1 Deduct: Acquisition related costs (0.1) (0.3) (0.3) (0.6) Restruct
Slide 13: SG&A
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) SG&A Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP SG&A $ 658.4 $ 632.7 $ 1,983.2 $ 1,909.2 Add / (deduct): Acquisition related costs (62.9) (41.9) (206
Slide 14: Total Operating Expenses
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP total operating expenses $ 807.1 $ 748.7 $ 2,420.0 $ 2,367.0 Add / (deduct): Liti
Slide 15: Interest Expense
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2019 2018 U.S. GAAP interest expense $ 117.3 $ 128.9 $ 353.4 $ 391.3 Deduct: Interest expense related to clea
Slide 16: Other Expense
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other Expense Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP other (income) expense, net $ (7.5) $ 9.0 $ 24.6 $ 32.7 Add / (Deduct): Clean energy investm
Slide 17: Earnings Before Income Taxes and Income Tax Provision
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Earnings Before Income Taxes and Income Tax Provision Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP earnings (loss) before income taxes $ 241.6 $ 185.8
Slide 18: Adjusted Net Cash Provided by Operating Activities
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Cash Provided by Operating Activities Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 U.S. GAAP net cash provided by (used in) operating activities $ 5
Slide 19: Net Earnings to Adjusted EBITDA (Quarterly)
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA Three Months Ended December 31, March 31, June 30, September 30, 2019 2020 2020 2020 U.S. GAAP net earnings (loss) $ 20.5 $ 20.8 $ 39.4 $ 185.7 Add / (deduct) adjustment
Slide 20: Notional Debt to Adjusted EBITDA Leverage Ratio
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) September 30, 2020 Notional Debt to Twelve Months Ended September 30, 2020 Mylan N.V. Adjusted EBITDA as calculated under our Credit Agreement ("Credit Agreement Adjusted EBITDA") Leverage Ratio The st
Slide 21: North America Segment Profitability to Adjusted
Mylan N.V. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) North America Segment Profitability to Adjusted North America Segment Profitability Three Months Ended September 30, 2020 2019 North America Segment Profitability $ 497.9 $ 489.9 Add: Morgantown Restru
Slide 22: Q3 2020 Earnings – All Results are Unaudited
Q3 2020 Earnings – All Results are Unaudited