Slide 1: Earnings Conference Call Fiscal Q3 2024
Earnings Conference Call Fiscal Q3 2024 August 9, 2024
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 Today’s topics: Dev Kurdikar Chief Executive Officer embecta Overview FY24 Strategic Priorities Business Review Jake Elguicze Chief Financial Officer Revenue and Earnings Review Guidance 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: Strategic Priorities for Fiscal Year 2024
Strategic Priorities for Fiscal Year 2024 Strengthen and optimize core business • Maintain core injection business revenue • Navigate through operating environment; manage costs Separate and stand-up • Complete ERP implementation • Operationalize embecta systems and resources, and exit transition se
Slide 6: Q3 Fiscal Year 2024 Enterprise Highlights
Q3 Fiscal Year 2024 Enterprise Highlights • Continued execution led to results that were aligned with our prior expectations • Initiated a program with the objective of introducing a new small-pack pen needle product in Germany, to address unmet needs of growing number of customers using GLP-1 • Com
Slide 7: Q3 Fiscal Year 2024 vs. Q3 Fiscal Year 2023 Revenue
Q3 Fiscal Year 2024 vs. Q3 Fiscal Year 2023 Revenue Dollars in Millions Three Months Ended % Increase / Decrease As-Reported Foreign Currency Constant Currency June 30, 2024 June 30, 2023 Revenue Growth Impact Revenue Growth U.S. $143.6 $153.9 (6.7)% ꟷ (6.7)% International $128.9 $132.2 (2.5)% (1.9)
Slide 8: Q3 FY24 Financial Highlights
Q3 FY24 Financial Highlights Revenue Q3 FY24 revenue of $272.5 million, down 4.8% on an as-reported basis; down 3.9% on a constant currency basis, as compared to the prior year period Gross Q3 FY24 GAAP gross profit and margin of $190.1 million and 69.8%, compared to $189.5 million and 66.2% in the
Slide 9: Fiscal Year 2024 Updated Financial Guidance
Fiscal Year 2024 Updated Financial Guidance Dollars in Millions, Current Previous (1) except per share and percentages Low High Low High Revenue $1,111 $1,116 $1,111 $1,116 As-Reported % (0.9%) (0.4%) (0.9%) (0.4%) Constant Currency % (0.5%) 0.0% (0.5%) 0.0% F/X % (0.4%) (0.4%) Contract Manufacturin
Slide 10: Q&A
Q&A embecta’
Slide 11: Appendix
Appendix embecta’
Slide 12: 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 13: Adjusted Gross Profit Margin Reconciliation
Adjusted Gross Profit Margin Reconciliation Dollars in Millions, except Three Months Ended Nine Months Ended percentages June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 GAAP Gross Profit $190.1 $189.5 $561.4 $568.1 GAAP Gross Profit Margin 69.8% 66.2% 67.1% 67.7% Stock-based compensation exp
Slide 14: Adjusted Operating Income Margin Reconciliation
Adjusted Operating Income Margin Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 GAAP Operating Income $55.9 $51.3 $140.6 $195.7 GAAP Operating Income Margin 20.5% 17.9% 16.8% 23.3% Amortization of in
Slide 15: Adjusted Operating Income Margin Reconciliation – Continued
Adjusted Operating Income Margin Reconciliation – Continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration and labeling costs; (ii) warehousing and distribution set-up costs; (iii) legal cos
Slide 16: Adjusted Net Income and Adjusted Net Income Per Diluted Share Reconciliation
Adjusted Net Income and Adjusted Net Income Per Diluted Share Reconciliation Dollars in Millions, except per share amounts Three Months Ended Nine Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 GAAP Net Income $14.7 $15.2 $63.7 $64.4 Adjustments: GAAP Income tax provision (bene
Slide 17: Adjusted Net Income Per Diluted Share Reconciliation – Continued
Adjusted Net Income Per Diluted Share Reconciliation – Continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration and labeling costs; (ii) warehousing and distribution set-up costs; (iii) lega
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Dollars in Millions, except percentages Three Months Ended Nine Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 GAAP Net Income $14.7 $15.2 $63.7 $64.4 Interest expense, net 27.8 27.0 83.3 79.4 Income taxes provision (benefit) 12.3 4.9 (12.5) 36.3
Slide 19: Adjusted EBITDA Reconciliation – Continued
Adjusted EBITDA Reconciliation – Continued (1) Represents stock-based compensation expense incurred during the three and nine months ended June 30, 2024 and 2023, respectively. For the three months ended, June 30, 2024, $5.3 million is recorded in Selling and administrative expense, $0.6 million is
Slide 20: Fiscal Year 2024 Financial Guidance Assumptions
Fiscal Year 2024 Financial Guidance Assumptions Dollars in Millions, except percentages Current Prior Interest Expense, Net ~ $115 ~ $116 Adjusted Tax Rate ~ 22% ~ 22% Weighted Average Shares (in millions) ~ 58.2 ~ 58.1 Foreign Exchange EUR/USD ~ 1.08 ~ 1.08 USD/YEN ~ 151 ~ 151 USD/CNY ~ 7.2 ~ 7.2 2