Slide 1: Q4FY 2022 Financial Results Update
Q4FY 2022 Financial Results Update February 27, 2023
Slide 2: Introduction
PROPRIETARY AND CONFIDENTIAL 2Q4FY 2022 Investor Update Introduction Bob Burrows Vice President, Investor Relations Officer EMERGE NT"
Slide 3: Forward-looking statements
This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the future performance of the Company or our business strategy, future operations
Slide 4: Non-GAAP financial measures
This presentation contains financial measures (Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Shares, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted Gross Margin, Adjusted Gross Margin %, Adjusted Revenues and Adjusted Cost of Sales) th
Slide 5: Agenda
Agenda 5Q4FY 2022 Investor Update INTRODUCTION Q&A • Bob Kramer, CEO • Rich Lindahl, CFO • Other members of the senior management team, as needed Financial Results: -- Q4 2022 vs. Q4 2021 -- FY 2022 vs. FY 2021 • Rich Lindahl, CFO State of the Company: -- Q4 2022 -- FY 2022 -- Key 2023 Priorities •
Slide 6: State of the Company
PROPRIETARY AND CONFIDENTIALQ4FY 2022 Investor Update State of the Company Bob Kramer President and Chief Executive Officer 6 EMERGE NT"
Slide 7: Overview of Q4 and FY 2022; Focus Areas for FY 2023
Overview of Q4 and FY 2022; Focus Areas for FY 2023 7Q4FY 2022 Investor Update STATE OF THE COMPANY • 2022 results and 2023 guidance serve as baseline for growth in line with pre-COVID trends • Update to long-term view, informed by sharpened strategic focus underway, anticipated by YE23 • 2023 Focus
Slide 8: Financials
PROPRIETARY AND CONFIDENTIAL 84QFY 2022 Investor Update Financials Rich Lindahl Executive Vice President and Chief Financial Officer EMERGE NT"
Slide 9: Financial Principles and Implications of Sharpened Strategic Focus
Financial Principles and Implications of Sharpened Strategic Focus 9Q4FY 2022 Investor Update FINANCIAL RESULTS 1. Sustained revenue growth and improved profitability 2. Addressing near term challenges to credit profile EMERGE NT"
Slide 10: Q4 Summary Points
Q4 22 Summary Points 10Q4FY 2022 Investor Update FINANCIAL RESULTS • Performance overall was mixed + Total revenues in line with guidance + Products segment delivered solid contributions – notably NARCAN Nasal Spray, TEMBEXA, Other Products - Disappointing circumstances regarding ACAM2000 - Services
Slide 11: Q4 Key Financial Performance Metrics
Q 4 2 1 Key Financial Performance Metrics Q4 22 vs. Q4 21 1 11Q4FY 2022 Investor Update Total Revenues Adjusted EBITDA2 Adjusted Net Income (Loss) Per Diluted Share2 Adjusted Net Income (Loss)2 $723.2 $330.7 $4.50 FINANCIAL RESULTS $191.5 $34.2 $243.4 ( $ I N M I LLI O N S , E XC E PT PE R S H A R E
Slide 12: Q4 Key Financial Performance Metrics: R&D, SG&A, Margins
Q 4 2 1 Key Financial Performance Metrics Q4 22 vs. Q4 21 12Q4FY 2022 Investor Update R&D $ --- R&D Margin %1 SG&A $ --- SG&A Margin %2 Adjusted Corporate Gross Margin3 Corporate Gross Margin $83.0 $57.6 FINANCIAL RESULTS $94.2 $94.2 67% 32% ( $ I N M I LLI O N S ) Q 4 2 2 67% 48% Q4 21 Q4 22 Q4 21
Slide 13: Q4 Segment Reporting
Q 4 2 1 Segment Reporting Q4 22 vs. Q4 211 13Q4FY 2022 Investor Update Revenue Adjusted Gross Margin2 $ --- Adjusted Gross Margin2 % Adjusted Gross Margin2 $ --- Adjusted Gross Margin2 % Revenue $434.3 $305.7 FINANCIAL RESULTS $289.6 $190.0 ( $ I N M I LLI O N S ) Q 4 2 2 Q4 21 Q4 22 Q4 21 Q4 22 Q4
Slide 14: FY Key Financial Performance Metrics
F Y 2 1 Key Financial Performance Metrics FY 22 vs. FY 21 14Q4FY 2022 Investor Update Total Revenues Adjusted EBITDA1 Adjusted Net Income (Loss) Per Diluted Share1 Adjusted Net Income (Loss)1 $1,792.7 $1,120.9 $6.02 FINANCIAL RESULTS $517.6 $26.1 $325.7 ( $ I N M I LLI O N S , E XC E PT PE R S H A R
Slide 15: FY Key Financial Performance Metrics: R&D, SG&A, Margins
F Y 2 1 Key Financial Performance Metrics FY 22 vs. FY 21 15Q4FY 2022 Investor Update Adjusted Gross Margin3Gross Margin $234.0 $193.0 FINANCIAL RESULTS $348.4 $340.3 54% 36% ( $ I N M I LLI O N S ) F Y 2 2 55% 41% FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 13% 17% 19% 30% 1. R&D Margin is calc
Slide 16: FY Segment Reporting
F Y 2 1 Segment Reporting FY 22 vs. FY 21 16Q4FY 2022 Investor Update Revenue Adjusted Gross Margin1 $ --- Adjusted Gross Margin1 % Adjusted Gross Margin1 $ --- Adjusted Gross Margin1 % Revenue $1,023.9 $966.2 FINANCIAL RESULTS $644.8 $596.1 ( $ I N M I LLI O N S ) F Y 2 2 FY 21 FY 22 FY 21 FY 22 FY
Slide 17: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 17Q4FY 2022 Investor Update FINANCIAL RESULTS As of December 31, 2022 For the Twelve Months Ended December 31, 2022 C A S H $642.6 A C C O U N T S R E C E I V A B L E $158.4 N E T D E B T P O S I T I O N 1 , 2 $771.0 O P E R A T I N G C A S H F L O W $(34.1) C A P I
Slide 18: 2023 Forecast – Initial Disclosure
2023 Forecast – Initial Disclosure 18Q4FY 2022 Investor Update FINANCIAL RESULTS ( $ I N M I L L I O N S ) M E T R I C FULL YEAR 2023 1 Total Revenues $1,100 - $1,200 Product/Service Level Revenue • Anthrax MCM2 • NARCAN • Smallpox MCM3 • CDMO • Other Products4 $260 - $280 $290 - $310 $235 - $255 $1
Slide 19: 2023 Forecast – Key Assumptions
2023 Forecast – Key Assumptions 19Q4FY 2022 Investor Update FINANCIAL RESULTS • Excludes the potential impact of the sale of our Travel Health business; we will update our guidance accordingly after the transaction closes which is anticipated in the 2nd quarter; • Assumes the over-the-counter launch
Slide 20: Summary Comments
Summary Comments 20Q4FY 2022 Investor Update FINANCIAL RESULTS • Fourth quarter results reflect mix of strong performance in certain core areas offset by ongoing challenges • Committed to sustaining revenue growth and improving profitability • Addressing near term challenges to our credit profile •
Slide 21: Q&A
PROPRIETARY AND CONFIDENTIAL 21Q4FY 2022 Investor Update Q&A EMERGE NT"
Slide 22: Appendix
22Q4FY 2022 Investor Update Appendix
Slide 23: Reconciliation of Net Income to Adjusted Net Income – Q4 22 vs. Q4 21
Reconciliation of Net Income (Loss) and Net Income (Loss) per Diluted Share to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share – Q4 22 vs. Q4 21 23Q4FY 2022 Investor Update APPENDIX ($ in m1ll1ons. except per share value) Net income (loss) AdJustments: Non-cash amortizati
Slide 24: Reconciliation of Net Income to Adjusted Net Income – FY 22 vs. FY 21
Reconciliation of Net Income (Loss) and Net Income (Loss) per Diluted Share to Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share – FY 22 vs. FY 21 24Q4FY 2022 Investor Update APPENDIX ($ in m1ll1ons. except per share value) Net income (loss) Adjustments: Non-cash amortimtio
Slide 25: Reconciliation of Net Loss to Adjusted Net Income – FY Forecast
Reconciliation of Net Loss to Adjusted Net Income – FY 23 Forecast 25Q4FY 2022 Investor Update APPENDIX ($ in rni ll 1ons.) Net loss Adjustments : Non-cash a mmtizatio11 chaiges Changes in fair value of corrtingernt consideration Acquis itiorn-related costs (trarnsactiorn & integratiorn) Inventory S
Slide 26: Reconciliation of Net Income to Adjusted EBITDA – Q4 22 vs. Q4 21
Reconciliation of Net Income (Loss) to Adjusted EBITDA – Q4 22 vs. Q4 21 26Q4FY 2022 Investor Update APPENDIX EMERGE NT" Th ree Months Ended Decembe r 31, ($ m millions) 2022 2021 Net i rncome (loss) $(88.0) $189.3 Adj1Jstmernts :. Depreciation & amortization 35.6 29.3 Income taxes 16.8 (78.2) Total
Slide 27: Reconciliation of Net Income to Adjusted EBITDA – FY 22 vs. FY 21
Reconciliation of Net Income (Loss) to Adjusted EBITDA – FY 22 vs. FY 21 27Q4FY 2022 Investor Update APPENDIX ($ m rn1ll1ons) Net i ricome (loss) Adjustmerits : Depreciation & a Income tax.es mortization rise, net provisiori Total interest ex.pe Impairments lnventmy step-up Changes in fair ,., Acqui
Slide 28: Reconciliation of Net Loss to Adjusted EBITDA – FY Forecast
Reconciliation of Net Loss to Adjusted EBITDA – FY 23 Forecast 28Q4FY 2022 Investor Update APPENDIX ($ in m1ll1ons) 2023 Full Year Forecast Net loss Adjustments: Depreciation & amortization Income Taxes Total interest expernse, net Changes in fair value of corntingernt consideration Acquis itiorn re
Slide 29: Reconciliation of Revenues, Cost of Sales and Gross Margin – Q4 22 vs. Q4 21
Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q4 22 vs. Q4 21 29Q4FY 2022 Investor Update APPENDIX EMERGE NT" Three Months Ended December 31. ($ m m1ll1ons) 20
Slide 30: Reconciliation of Revenues, Cost of Sales and Gross Margin – FY 22 vs. FY 21
Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – FY 22 vs. FY 21 30Q4FY 2022 Investor Update APPENDIX ($ in m1ll1ons) Total revenues Contract and grants revenues
Slide 31: www.emergentbiosolutions.com
www.emergentbiosolutions.com EMERGE NT®