Viatris Inc. · NASDAQ:VTRS
Viatris — Q3 2024 Earnings Presentation
52 slides from Viatris's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings
Q3 2024 Earnings November 7, 2024 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a V
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about 2024 financi
Slide 3: Non-GAAP Financial Measures and Other Information
Non-GAAP Financial Measures and Other Information Key References New product sales, new product launches or new product revenues: Refers to revenue from new products launched in 2024 and the carryover impact of new products, including business development, launched within the last 12 months. Operati
Slide 4: Strategic Update
Strategic Update Scott A. Smith Chief Executive Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are tradema
Slide 5: Our Strategic Pillars
Our Strategic Pillars to Accelerate Growth and Shareholder Return DIVERSIFIED FINANCIAL EXPANDING & GROWING STRENGTH & INNOVATIVE BASE BUSINESS SIGNIFICANT PORTFOLIO CASH FLOW This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure t
Slide 6: Delivering on Our Strategic Pillars
Delivering on Our Strategic Pillars Diversified & Growing Base Business 6th consecutive quarter of divestiture-adjusted operational revenue growth with growth across all segments Delivered new product revenues of $133M in Q3 and $497M YTD Positive top-line results of Ph3 study evaluating safety and
Slide 7: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Total Revenues Adjusted EBITDA $3.8B $1.3B Adjusted EPS Free Cash Flow (1) Excluding Transaction Costs $0.75 $866M Expects 2024 Full-Year Operational Revenue Growth of ~2% (2) For key references and non-GAAP measures, see slide 3 (1) Q3 2024 Free Cash Flow was $750M. Exc
Slide 8: R&D Update
R&D Update Philippe Martin Chief R&D Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Myla
Slide 9: Strong Track Record of Delivering New Product Revenues
Strong Track Record of Delivering New Product Revenues Deep pipeline of core generics, complex generics and novel products >$450M New Product Revenues Each of the Last 5 Years $500M - $600M (1) $678M $482M $497M $456M $451M YTD 2020 (2) 2021 2022 2023 2024E For key references and non-GAAP measures,
Slide 10: Expanding Our Innovative Portfolio
Expanding Our Innovative Portfolio Sotagliflozin Licensing Agreement Expands Our Innovative Portfolio in Cardiovascular Diseases Product Profile & Registrational Path Deal Overview Approved Indication & Label Expansion • Entered into exclusive licensing • Broad label in Chronic Heart • Can leverage
Slide 11: Financial Update
Financial Update Doretta Mistras Chief Financial Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are tradem
Slide 12: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights ($M, except percentages and Adjusted EPS) Divestiture-Adj Q3 2024 Q3 2023 (1) Change Op Change Op Change Total Revenues $3,751 $3,942 (5%) (4%) 3% Adjusted EBITDA $1,285 $1,360 (6%) (5%) 4% Adjusted EPS $0.75 $0.79 (5%) (5%) 6% Free Cash Flow (2)(3) $866 $787 10% Excludi
Slide 13: Total Net Sales
Total Net Sales ($M) Q3 2024 Q3 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q3 Performance vs. Prior Year Period Net Sales $3,738 $3,934 (5%) (5%) ‣ Divestiture-adjusted operational growth across Brands 2,362 2,533 (7%) (6%) all segments ‣ Brands: Expansion of our portfolio in Emerging Generics 1,3
Slide 14: Developed Markets
Developed Markets ($M) Q3 2024 Q3 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q3 Performance vs. Prior Year Period Net Sales $2,299 $2,409 (5%) (5%) ‣ Europe: ~$1.3B; +6% divestiture-adj op change Brands 1,218 1,391 (12%) (13%) ‣ North America: ~$1.0B; (1%) divestiture-adj op change Generics 1,081
Slide 15: Emerging Markets
Emerging Markets ($M) Q3 2024 Q3 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q3 Performance vs. Prior Year Period Net Sales $533 $642 (17%) (14%) ‣ Brands: Expansion of cardiovascular portfolio in Brands 396 410 (3%) 2% certain Latin American countries and further strength in MENA & Emerging Asia r
Slide 16: JANZ
JANZ ($M) Q3 2024 Q3 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q3 Performance vs. Prior Year Period Net Sales $344 $335 3% 6% ‣ Brands: New products in Australia and volume Brands 189 186 2% 4% growth of promoted brands in Japan, partially offset by impact from government price Generics 155 149 4
Slide 17: Greater China
Greater China ($M) Q3 2024 Q3 2023 Change Op Change OPERATIONAL HIGHLIGHTS Q3 Performance vs. Prior Year Period Net Sales $562 $548 2% 3% ‣ Overall performance reflects strong volume Brands 560 546 2% 3% growth in China and across multiple channels, including E-commerce, retail, and private Generics
Slide 18: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet ~$9.2B ~$9.3B (1) Free Cash Flow since (2) Debt repayment since beginning of 2021 beginning of 2021 Notional Debt Outstanding (3) $25.1B $22.4B Clear line of sight to reaching our long-term gross $18.7B leverage target by $17.6B the end of 2024 $14.9B (2) <$14.0B (5)
Slide 19: Balanced Capital Allocation Framework
Balanced Capital Allocation Framework 2024 YTD Capital Allocation Framework Debt Committed to Paydown $2,663M (1) investment grade rating Share Returning capital to Capital Dividend Return Buyback $682M shareholders via dividend $432M and share buyback $250M Investing in Business Development $375M (
Slide 20: Financial Guidance
Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company.
Slide 21: 2024 Financial Guidance
2024 Financial Guidance ($M, except percentages and Adjusted EPS) Estimated Ranges (1) Midpoint (1) Acquired Estimated Ranges (3) Midpoint (3) August 8, 2024 August 8, 2024 IPR&D (2) November 7, 2024 November 7, 2024 Total Revenues $14,600 - $15,100 $14,850 – $14,600 - $15,100 $14,850 Adjusted EBITD
Slide 22: 2024 Key Metrics
2024 Key Metrics Key Metrics Utilized for 2024 Financial Guidance Estimated Ranges (1) Estimated Ranges (2) August 8, 2024 November 7, 2024 Adjusted Gross Margin 57.5% - 58.5% 57.5% - 58.5% Adjusted SG&A % of Total Revenues 23.0% - 24.0% (3) 23.0% - 24.0% (3) Adjusted R&D % of Total Revenues 5.0% -
Slide 23: Q&A
Q&A Scott A. Smith Doretta Mistras Philippe Martin Corinne Le Goff Chief Executive Officer Chief Financial Officer Chief R&D Officer Chief Commercial Officer This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is
Slide 24: GAAP / Non-GAAP Reconciliations
GAAP / Non-GAAP Reconciliations This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2024 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Via
Slide 25: Full-Year 2024 Guidance Items as of November 7, 2024
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS) Full-Year 2024 Guidance Items as of November 7, 2024 (1) GAAP Non-GAAP Total Revenues $14,600 - $15,100 N/A Adjusted EBITDA N/A $4,575 - $4,845 Net Cash provided by $2,620 - $2
Slide 26: Reconciliation of Estimated 2024 Operating Cash Flow to Free Cash Flow (Nov 7)
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Reconciliation of Estimated 2024 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of November 7, 2024 (1) Estimated U.S. GAAP Net Cash provided by Operating Activities $2,62
Slide 27: Full-Year 2024 Guidance Items as of August 8, 2024
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS) Full-Year 2024 Guidance Items as of August 8, 2024 (1) GAAP Non-GAAP Total Revenues $14,600 - $15,100 N/A Adjusted EBITDA N/A $4,600 - $4,870 Net Cash provided by $2,620 - $2,9
Slide 28: Reconciliation of Estimated 2024 Operating Cash Flow to Free Cash Flow (Aug 8)
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Reconciliation of Estimated 2024 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of August 8, 2024 (1) Estimated U.S. GAAP Net Cash provided by Operating Activities $2,620
Slide 29: Net Earnings to Adjusted Net Earnings and Adjusted EPS
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except per share amounts) Net Earnings (Loss) to Adjusted Net Earnings and U.S. GAAP Diluted Earnings (Loss) Per Share to Adjusted EPS Three Months Ended Nine Months Ended September 30, September 3
Slide 30: Net Earnings (Loss) to EBITDA and Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings (Loss) to EBITDA and Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP net earnings (loss).................................
Slide 31: Summary of Total Revenues by Segment – Q3 2024
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q3 2024 Three Months Ended September 30, Divestiture- 2024 Constant Constant 2023 Adjusted Adjusted 2024 Currency Currency Currency % Closed Ex Div
Slide 32: Summary of Total Revenues by Segment – Q3 2024 YTD
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q3 2024 YTD Nine Months Ended September 30, Divestiture- 2024 Constant Constant 2023 Adjusted Adjusted 2024 Currency Currency Currency % Closed Ex
Slide 33: Key Product Net Sales, on a Consolidated Basis
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Key Product Net Sales, on a Consolidated Basis Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Select Key Global Products Lipitor ® $ 375.6 $ 381.6 $ 1,112.9 $
Slide 34: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP cost of sales................................................................
Slide 35: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP SG&A..................................................................................
Slide 36: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP R&D.......................................................... $ 198.4 $ 211.2 $ 602.2 $
Slide 37: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP total operating expenses........................................... $ 1,233.3
Slide 38: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP interest expense................................................................... $
Slide 39: Other Income, Net
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other Income, Net Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP other income, net..................................................................
Slide 40: Earnings Before Income Taxes and Income Tax Provision
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Earnings (Loss) Before Income Taxes and Income Tax (Benefit) Provision Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP earnings (loss) befo
Slide 41: Free Cash Flow and Free Cash Flow Excluding Transaction Costs
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow and Free Cash Flow Excluding Transaction Costs Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 U.S. GAAP net cash provided by operating activitie
Slide 42: Free Cash Flow Since Beginning of 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow Since Beginning of 2021 Year Ended Nine Months Ended Free Cash Flow Since December 31, 2021 December 31, 2022 December 31, 2023 September 30, 2024 Beginning of 2021 U.S. GAAP net cas
Slide 43: Gross Leverage - Debt to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA Gross Leverage Ratio is the ratio of Viatris’ total debt at notional amounts at September 30, 2024 to the sum of Viatris’ adjusted EBITDA for
Slide 44: Net (Loss) Earnings to EBITDA and Adjusted EBITDA – Last Twelve Months
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net (Loss) Earnings to EBITDA and Adjusted EBITDA – Last Twelve Months Three Months Ended December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 U.S. GAAP net (loss) earnings............
Slide 45: Gross Leverage – Debt to Adjusted EBITDA – Q4 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q4 2023 Year Ended December 31, 2023 Adjusted EBITDA (a).................................................................... $ 5,124.1 Repor
Slide 46: Net Earnings to EBITDA and Adjusted EBITDA – Q4 2023
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to EBITDA and Adjusted EBITDA – Q4 2023 Year ended December 31, 2023 U.S. GAAP net earnings.............................................................................................
Slide 47: Gross Leverage – Debt to Adjusted EBITDA – Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q4 2022 Year Ended December 31, 2022 Adjusted EBITDA (a).................................................................... $ 5,776.8 Repor
Slide 48: Net Earnings to EBITDA and Adjusted EBITDA – Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to EBITDA and Adjusted EBITDA – Q4 2022 Year ended December 31, 2022 U.S. GAAP net earnings.............................................................................................
Slide 49: Gross Leverage – Debt to Adjusted EBITDA – Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q4 2021 Year Ended December 31, 2021 Adjusted EBITDA (a).................................................................... $ 6,426.1 Repor
Slide 50: Net Loss to EBITDA and Adjusted EBITDA – Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to EBITDA and Adjusted EBITDA – Q4 2021 Year ended December 31, 2021 U.S. GAAP net loss.....................................................................................................
Slide 51: Gross Leverage – Debt to Combined Adjusted EBITDA – Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Combined Adjusted EBITDA – Q4 2020 Year Ended December 31, 2020 Combined Adjusted EBITDA (a).................................................. $ 6,807.2 Repor
Slide 52: Net Loss to EBITDA and Combined Adjusted EBITDA – Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to EBITDA and Combined Adjusted EBITDA – Q4 2020 Year ended December 31, 2020 U.S. GAAP net loss............................................................................................