Slide 1: Earnings Conference Call
Earnings Conference Call Fiscal Q4 and Full Year 2022 December 20, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements
Slide 3: Agenda and Presenters
Agenda and Presenters Dev Kurdikar Today’s topics: Chief Executive Officer ✓ Enterprise highlights ✓ Revenue and earnings review Jake Elguicze Chief Financial Officer ✓ Guidance ✓ Strategic priorities Pravesh Khandelwal ✓ Q&A Vice President, Investor Relations 3
Slide 4: Mission and Vision
Mission To develop and provide solutions that make life better for people living with diabetes Advance every day together Vision A life unlimited by diabetes 4
Slide 5: Fiscal Year 2022 Highlights
Fiscal Year 2022 Highlights ✓ Completed spinoff from BD on April 1, 2022 ✓ Diverse and experienced leadership team and Board of Directors in place from Day 1 ✓ Strong execution notwithstanding challenging operating environment ✓ Making progress in standing up systems and processes in order to exit t
Slide 6: embecta Delivered on Second Half Fiscal Year 2022 Expectations
embecta Delivered on Second Half Fiscal Year 2022 Expectations 2H’22 2H’22 2H’22 (Dollars in millions, except percentages) Guidance – May’22 Guidance – August’22 Actual Results Revenue ~$555 ~$555 ~$566 As Reported % ~(7.0%) ~(7.0%) (5.1%) Constant Currency % ~(3.5%) ~(3.0%) (1.2%) F/X % ~(3.5%) ~(4
Slide 7: Q4 and Fiscal Year 2022 vs. Fiscal Year 2021 Revenue
Q4 and Fiscal Year 2022 vs. Fiscal Year 2021 Revenue (Dollars in millions) Three Months Ended % Increase / Decrease Overall Constant Currency September 30, September 30, As-Reported Currency Constant Currency Drivers 2022 2021 Revenue Growth Impact Revenue Growth • Unfavorable impact due to rebate U
Slide 8: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights Gross • Q4’22 GAAP and adjusted gross profit and margin of $176.9 million and 64.4%, compared to Profit Q4’21 GAAP and adjusted gross profit and margin of $209.7 million and 69.7% • Q4’22 GAAP net loss of $17.2 million • Inclusive of an impairment charge of $58.9 million
Slide 9: Fiscal Year 2023 Financial Guidance
Fiscal Year 2023 Financial Guidance Dollars in millions, except per share and percentages Low High Revenue $1,050 $1,073 As-Reported % (7.0%) (5.0%) Constant Currency % (2.0%) 0.0% F/X % (5.0%) Contract Manufacturing $5 $10 Adjusted Gross Margin ~ 62% Adjusted Operating Margin ~ 25% Adjusted Diluted
Slide 10: Strategic Priorities for Fiscal Year 2023
Strategic Priorities for Fiscal Year 2023 Strengthen base business • Maintain core injection business revenue • Navigate through operating environment; manage costs Separate and stand-up • Continue to execute on ERP Implementation • Manage through the temporary suspension of manufacturing operations
Slide 11: Thank you
Thank you
Slide 12: Appendix
Appendix embecta’
Slide 13: Non-GAAP financial measures
Non-GAAP financial measures In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) earnings before interest, taxes, depreciation, and amortization (“EBITDA”), (ii) Adjusted EBITDA,
Slide 14: Adjusted Gross Margin Reconciliation
Adjusted Gross Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Twelve Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenue $274.6 $300.8 $1,129.5 $1,165.3 Cost of sales 97.7 91.1 354.6 364.9 Gross Profit 176.9 209.7 774.9 8
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in millions Three Months Ended Twelve Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income (loss) ($17.2) $97.1 $223.6 $414.8 Interest expense, net 21.8 — 46.2 — Income taxes (10.3) 19.5 33.0 80.1 Depreciation and
Slide 16: Adjusted EBITDA Reconciliation – Continued
Adjusted EBITDA Reconciliation – Continued (1) One-time stand up costs incurred during the three months ended September 30, 2022 and 2021 primarily include costs to stand up the Company. Amounts for both periods are recorded in Other operating expenses. During 2022, the Company updated its definitio
Slide 17: Second Half Fiscal Year 2022 Adjusted Gross Margin Reconciliation
Second Half Fiscal Year 2022 Adjusted Gross Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Six Months Ended June 30, 2022 September 30, 2022 September 30, 2022 Revenue $291.1 $274.6 $565.7 Cost of sales 88.2 97.7 185.9 Gross Profit 202.9 176.9 379.8 Gross Margin 69.
Slide 18: Second Half Fiscal Year 2022 Adjusted EBITDA Reconciliation
Second Half Fiscal Year 2022 Adjusted EBITDA Reconciliation Dollars in millions Three Months Ended Six Months Ended June 30, 2022 September 30, 2022 September 30, 2022 Net income (loss) $62.4 ($17.2) $45.2 Interest expense, net 19.5 21.8 41.3 Income taxes 11.2 (10.3) 0.9 Depreciation and amortizatio
Slide 19: Second Half Fiscal Year 2022 Adjusted EBITDA Reconciliation – Continued
Second Half Fiscal Year 2022 Adjusted EBITDA Reconciliation – Continued (1) One-time stand up costs incurred during the six months ended September 30, 2022 primarily include costs to stand up the Company. Approximately $21.2 million of the one-time stand up costs are recorded in Other operating expe
Slide 20: Fiscal Year 2023 Financial Guidance Assumptions
Fiscal Year 2023 Financial Guidance Assumptions Dollars in millions, except percentages Interest Expense, Net ~ $115 to ~$120 Adjusted Tax Rate ~ 25% Weighted Average Shares (in millions) ~ 57.7 Foreign Exchange EUR/USD ~ 0.98 USD/YEN ~ 149 USD/CNY ~ 7.20 20