Viatris Inc. · NASDAQ:VTRS
Viatris — Q1 2023 Earnings Presentation
46 slides from Viatris's earnings presentation, May 8, 2023
Slide 1: Q1 2023 Earnings
Q1 2023 Earnings May 8, 2023 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatri
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: 2023 financ
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 refer to revenue from new products launched in 2023 and the carryover impact of new products, including business development, launched within the last 12 months. Operation
Slide 4: Q1 2023 Highlights and Strategic Priorities
Q1 2023 Highlights and Strategic Priorities Business Performance Capital Deployment & Delivering the Pipeline Strategic Initiatives & Execution Financial Commitments • Strong start to the year • New product revenues of • Completed Eye Care • Prioritizing debt paydown $85M in Q1 2023 acquisitions, cr
Slide 5: Segment Results
Segment Results This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 5
Slide 6: Total Net Sales
Total Net Sales ($M) Q1 2023 Q1 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $3,719 $4,178 (11%) (6%) Q1 Performance vs. Expectations Brands 2,420 2,554 (5%) –% • Strong performance across various segments Complex Gx & Biosimilars 136 391 (65%) (65%) • Brands: in line with expectations, re
Slide 7: Developed Markets
Developed Markets ($M) Q1 2023 Q1 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $2,170 $2,476 (12%) (9%) Q1 Performance vs. Expectations Brands 1,232 1,299 (5%) (1%) • Europe net sales of ~$1.3B Complex Gx & Biosimilars 130 364 (64%) (64%) • North America net sales of ~$0.9B Generics 808 81
Slide 8: Emerging Markets
Emerging Markets ($M) Q1 2023 Q1 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $642 $705 (9%) (1%) Q1 Performance vs. Expectations Brands 436 437 –% 5% • Brands: ahead of expectations driven by strong Complex Gx & Biosimilars – 16 (100%) (100%) performance in key markets such as Korea, Mala
Slide 9: JANZ
JANZ ($M) Q1 2023 Q1 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $342 $424 (19%) (11%) Q1 Performance vs. Expectations Brands 190 249 (24%) (14%) • Brands: slightly behind expectations primarily in Complex Gx & Biosimilars 6 10 (41%) (38%) Japan mainly due to customer buying patterns Gene
Slide 10: Greater China
Greater China ($M) Q1 2023 Q1 2022 Change Op Change OPERATIONAL HIGHLIGHTS Net Sales $565 $573 (1%) 5% Q1 Performance vs. Expectations Brands 562 570 (1%) 5% • Solid start with better-than-expected results Complex Gx & Biosimilars – – NM NM Generics 2 3 NM NM 2023 Full-Year Expectations See slide 3
Slide 11: Pipeline
Pipeline This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 11
Slide 12: Complex Injectables / Sterile Products – Significant Milestones Achieved
Complex Injectables / Sterile Products – Significant Milestones Achieved Potential >$1B Annual Peak Net Sales Opportunity in 2027 Analytical Pivotal PK / Under Regulatory First to Market Product Indication Pre-Clinical Characterization Clinical Review Opportunity GlucagonTM Hypoglycemic Disorder Ven
Slide 13: Select Novel & Complex Products - Another Growth Catalyst
Select Novel & Complex Products - Another Growth Catalyst Potential >$1B Annual Peak Net Sales Opportunity in 2028 from Select Assets Pre- Regulatory Anticipated Product Indication Phase I Phase II Phase III Status Clinical Approval Launch Year Treatment of Glatiramer Filed NDA to relapsing forms of
Slide 14: Eye Care Portfolio & Pipeline
Eye Care Portfolio & Pipeline Projected to Add >$1B Net Sales by 2028 Regulatory Product Indication Pre-Clinical Phase I Phase II Phase III Status Approval Tyrvaya® Dry Eye Disease Launched 10/15/21 (Varenicline solution) Q2 2023 Phase III MR-145-02 Dry Eye Disease (China) Topline Neurotrophic Kerat
Slide 15: Q1 Financial Highlights
Q1 Financial Highlights This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 16: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights ($M) Q1 2023 Q1 2022(1) CHANGE OP CHANGE Total Net Sales $3,719 $4,178 (11%) (6%) Developed Markets 2,170 2,476 (12%) (9%) Emerging Markets 642 705 (9%) (1%) JANZ 342 424 (19%) (11%) Greater China 565 573 (1%) 5% Other Revenues 10 14 NM NM Total Revenues $3,729 $4,192 (1
Slide 17: Q1 2023 Total Net Sales and Adjusted EBITDA Walk
Q1 2023 Total Net Sales and Adjusted EBITDA Walk Net Sales ($M) 4,013 197 3,816 3,719 188 85 6 Q1 2022 Adjusted Fx Q1 2022 at Existing New Product Tyrvaya® Q1 2023 Ex Biosimilars(1) 2023 Fx Rates Base Business Net Sales Erosion Adjusted EBITDA ($M) 1,543 1,467 76 111 5 1,341 68 88 Q1 2022 Adjusted F
Slide 18: Q1 2023 Free Cash Flow
Q1 2023 Free Cash Flow ($M) Q1 2023 Q1 2022(1) CHANGE Q1 2023 Drivers vs. Q1 2022 U.S. GAAP Net Cash Provided + Cash conversion improvement $971 $1,139 (15%) by Operating Activities - Lower adjusted EBITDA including Capital Expenditures (48) (65) (26%) impact of biosimilars divestment and FX headwin
Slide 19: Capital Allocation – Delivering on our Financial Commitments
Capital Allocation – Delivering on our Financial Commitments Free Cash Flow ~$6.0B Debt (1) repayment >$6.0B over last 9 quarters over last 9 quarters • ~$546M in debt repayment in Q1 2023 Debt • On track to repay ~$1.3B of scheduled Repayment 2023 debt maturities Notional Debt Outstanding(2) $25.1B
Slide 20: 2023 Financial Guidance
2023 Financial Guidance This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris com
Slide 21: Reaffirmed 2023 Financial Guidance
Reaffirmed 2023 Financial Guidance ($B) 2023 Estimated Ranges(1) 2023 Midpoint Total Revenues $15.5 - $16.0 $15.75 2023 Guidance Phasing Adjusted EBITDA $5.0 - $5.4 $5.2 ‣ Expect Total Revenues to be higher in Free Cash Flow $2.3 - $2.7 $2.5 the second half vs the first half of 2023 Key Metrics Util
Slide 22: 2023 Capital Allocation Framework
2023 Capital Allocation Framework Supported by Free Cash Flow Generation ‣ Committed to investment grade rating ‣ Paydown of scheduled maturities totaling ~$1.3B and incremental debt paydown ‣ Expected annual dividend of $0.48 per share Proceeds from Planned Divestitures Expected to Provide Addition
Slide 23: Appendix
Appendix This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. 23
Slide 24: Q1 2023 Select Key Product Net Sales, on a Consolidated Basis
Q1 2023 Select Key Product Net Sales, on a Consolidated Basis (Unaudited; in millions) ($M) Q1 2023 ($M) Q1 2023 Select Key Global Products Select Key Segment Products Lipitor® $417.9 Dymista® $53.2 Norvasc® 202.7 Yupelri® 47.0 Lyrica® 144.3 Xanax® 39.7 Viagra® 115.0 Amitiza® 36.6 EpiPen® Auto-Injec
Slide 25: 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. © 2023 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Via
Slide 26: Full-Year 2023 Guidance Items
Viatris Inc. and Subsidiaries Full-Year 2023 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $15,500 - $16,000 N/A Adjusted EBITDA N/A $5,000 - $5,400 Net Cash provided by $2,800 - $3,100 N/A Operating Activities Free Cash Flow N/A $2,300 - $2,700 Note: For non-GAAP measures, se
Slide 27: Reconciliation of Estimated 2023 Net Cash from Operations to Free Cash Flow
Viatris Inc. and Subsidiaries Reconciliation of Estimated 2023 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited; in millions) Estimated U.S. GAAP Net Cash provided by Operating Activities (1) $2,800 - $3,100 Less: Capital Expenditures ($400) - ($500) Free Cash Flow (1
Slide 28: Adjusted Net Earnings
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended March 31, 2023 2022 U.S. GAAP net earnings..................................................................................................................
Slide 29: Net Earnings to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA Three Months Ended March 31, 2023 2022 U.S. GAAP net earnings........................................................................................................
Slide 30: Summary of Total Revenues by Segment
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment Three Months Ended March 31, Divestiture 2023 Constant Constant Adjusted 2023 Currency Currency Currency % 2022 Biosimilars 2022 Adjusted Ex Operatio
Slide 31: Cost of Sales
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales Three Months Ended March 31, 2023 2022 U.S. GAAP cost of sales.............................................................. $ 2,186.9 $ 2,420.5 Deduct: Purchase accounting
Slide 32: R&D
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D Three Months Ended March 31, 2023 2022 U.S. GAAP R&D............................................................... $ 182.9 $ 142.3 Deduct: Acquisition and divestiture related costs.
Slide 33: SG&A
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A Three Months Ended March 31, 2023 2022 U.S. GAAP SG&A.................................................................................... $ 958.9 $ 915.3 Add / (Deduct): Acquisition
Slide 34: Total Operating Expenses
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses Three Months Ended March 31, 2023 2022 U.S. GAAP total operating expenses...................................................... $ 1,142.4 $ 1,063.8 Deduct:.................
Slide 35: Interest Expense
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense Three Months Ended March 31, 2023 2022 U.S. GAAP interest expense................................................................... $ 147.0 $ 146.2 Add / (Deduct): Accretion of co
Slide 36: Other (Income) Expense, Net
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other (Income) Expense, Net Three Months Ended March 31, 2023 2022 U.S. GAAP other (income) expense, net...................................................... $ (69.9) $ 33.7 Add: Clean energy inve
Slide 37: Earnings Before Income Taxes and Income Tax Provision
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Earnings Before Income Taxes and Income Tax Provision Three Months Ended March 31, 2023 2022 U.S. GAAP earnings before income taxes................................... $ 322.7 $ 527.5 Tot
Slide 38: Free Cash Flow over the Last 9 Quarters
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow over the Last 9 Quarters Year Ended Three Months Ended Free Cash Flow over December 31, 2021 December 31, 2022 March 31, 2023 the last 9 quarters U.S. GAAP net cash provided by opera
Slide 39: 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 March 31, 2023 to the sum of Viatris’ adjusted EBITDA for the
Slide 40: Net Earnings to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA Three Months Ended June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 U.S. GAAP net earnings..........................................................
Slide 41: 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 Reported debt balances: Long-term debt, including current portion........
Slide 42: Net Earnings to Adjusted EBITDA - Q4 2022
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings to Adjusted EBITDA - Q4 2022 Year ended December 31, 2022 U.S. GAAP net earnings........................................................................................................
Slide 43: 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 Reported debt balances: Long-term debt, including current portion........
Slide 44: Net Loss to Adjusted EBITDA - Q4 2021
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to Adjusted EBITDA - Q4 2021 Year ended December 31, 2021 U.S. GAAP net loss................................................................................................................
Slide 45: 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 Reported debt balances: Long-term debt, including curre
Slide 46: Net Loss to Combined Adjusted EBITDA - Q4 2020
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Loss to Combined Adjusted EBITDA - Q4 2020 Year ended December 31, 2020 U.S. GAAP net loss.......................................................................................................