Organon : Q1 2024 Earnings Presentation

Organon

First Quarter 2024 Earnings

Disclaimer statement

Cautionary Note Regarding Forward-Looking Statements

Except for historical information, this presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about management's expectations about Organon's future financial performance and prospects, including full-year 2024 guidance estimates and predictions regarding other financial information and metrics, franchise and product performance and strategy expectations for future periods. Forward-looking statements may be identified by words such "foresees," "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "would," "potentially," "intends," "seeks," "will" or words of similar meaning. These statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties that may affect our future results include, but are not limited to, pricing pressures globally, including rules and practices of managed care groups, judicial decisions and governmental laws and regulations related to Medicare, Medicaid and health care reform, pharmaceutical reimbursement and pricing in general; an inability to fully execute on our product development and commercialization plans in the United States, Europe, and elsewhere internationally; an inability to adapt to the industry-wide trend toward highly discounted channels; changes in tax laws or other tax guidance, which could adversely affect our cash tax liability, effective tax rates, and results of operations and lead to greater audit scrutiny; expanded brand and class competition in the markets in which we operate; global tensions, which may result in disruptions in the broader global economic environment; uncertainty regarding the U.S. federal budget and debt ceiling, and the impact of a potential U.S. federal government shutdown; governmental initiatives that adversely impact our marketing activities, particularly in China; volatility in our stock price; political and social pressures, or regulatory developments, that adversely impact demand for, availability of, or patient access to contraception or fertility products; difficulties with performance of third parties we rely on for our business growth; the failure of any supplier to provide substances, materials, or services as agreed; the increased cost of supply, manufacturing, packaging, and operations; difficulties developing and sustaining relationships with commercial counterparties; competition from generic products as our products lose patent protection; any failure by us to obtain an additional period of market exclusivity in the United States for Nexplanon subsequent to the expiration of certain current patents in 2027; difficulties implementing or executing on our acquisition strategy or failure to recognize the benefits of such acquisitions; and the impact of higher selling and promotional costs.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's filings with the Securities and Exchange Commission ("SEC"), including the company's most recent Annual Report on Form 10-K and subsequent SEC filings, available at the SEC's Internet site (www.sec.gov).

See Slides 19-21 of this presentation for a reconciliation of non-GAAP measures.

2

Disclaimer statement, cont.

Cautionary Note Regarding Non-GAAP Financial Measures

This presentation contains "non-GAAP financial measures," which are financial measures that either exclude or include amounts that are correspondingly not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Specifically, the company makes use of the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross margin, Adjusted gross profit, Adjusted net income, and Adjusted diluted EPS, which are not recognized terms under GAAP and are presented only as a supplement to the company's GAAP financial statements. This presentation also provides certain measures that exclude the impact of foreign exchange. We calculate foreign exchange by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results. The company believes that these non-GAAP financial measures help to enhance an understanding of the company's financial performance. However, the presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the company's results as reported under GAAP. Because not all companies use identical calculations, the presentations of these non-GAAP measures may not be comparable to other similarly titled measures of other companies. Please refer to Slides 19-21 of this presentation for additional information, including relevant definitions and reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures.

In addition, the company's full-year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis because the company is unable to reasonably predict certain items contained in the GAAP measures. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, stock-based compensation, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts and other items not reflective of the company's ongoing operations.

The company's management uses the non-GAAP financial measures described above to evaluate the company's performance and to guide operational and financial decision making. Further, the company's management believes that these non-GAAP financial measures, which exclude certain items, help to enhance its ability to meaningfully communicate its underlying business performance, financial condition and results of operations.

3

First quarter 2024 highlights

See Slides 19-21 of this presentation for a reconciliation of non-GAAP measures.

• Revenue of $1.6 billion, up 7% ex-FX
• • All three franchises contributed to growth
• Diluted EPS of $0.78, Adjusted Diluted EPS of $1.22
• Adjusted EBITDA of $538 million, inclusive of $15 million of IPR&D and milestones

4

Women's Health Women's Health

Biosimilars

Established Brands

•Franchise growth of 12% ex-FX

• Nexplanon up 34% ex-FXdriven by favorable comparison to buy-outin Q1 2023; volume and price growth
• Continued uptake in Jada
• Franchise growth of 46% ex-FX
• Ontruzant benefit from incremental demand in Brazil
• Hadlima continuing to gain traction in U.S.
• Franchise growth of2% ex-FX
• Expect to achieve flat performance in Established Brands in 2024

5

Strong Q1 performance from largest markets

$ mil

Europe and Canada

United States

Asia Pacific and Japan

China

Latin America, Middle East, Russia and Africa

Q1-24	Q1-23	Actual	Ex-FX
VPY	VPY
450	400	12%	10%
371	326	14%	14%
287	324	(12)%	(7)%
206	225	(8)%	(5)%
274	214	28%	36%

	Other, 2%
LAMERA, 17%	Europe and Canada, 28%

~80% of Q1 sales

China, 13%generated

ex-US

Other (1)

Total Revenues

34	49	(28)%	(30)%
1,622	1,538	5%	7%

APJ, 18%

US, 23%

(1) Other includes manufacturing sales to third parties.

6

Strong volume growth, driven by Nexplanon, Biosimilars

+5% reported,

and +7% at

$ milconstant currency

~130

~ (5)

$1,622

~ (30)

$1,538

~ (5)

~ (5)

~ (1)

Q1 2023

LOE (1)

VBP (2)

Price

Volume

Supply/Other(3)

FX

Q1 2024

1. LOE = Loss of Exclusivity
2. VBP = Volume Based Procurement
3. Other includes manufacturing sales to third parties

7

Women's Health

• Nexplanon up 34% ex-FX driven by favorable comparison to buy-out in Q1 2023; volume and price growth
• Fertility down 2%, following strong Q4, expect high single-digitgrowth in fertility for full year 2024

Women's

Health

Revenues $ mil

Nexplanon ® (contraception)

NuvaRing ® (contraception)

Marvelon™/ Mercilon™ (contraception)

Follistim AQ ® (fertility)

Ganirelix Acetate Injection (fertility) Jada ® (device)

Other Women's Health products Total Women's Health

Q1-24	Q1-23	Act
VPY
220	165	33%
38	49	(22)%
33	37	(12)%
46	55	(17)%
29	30	(2)%
13	7	84%
43	38	15%
422	381	11%

Ex-FX

VPY

34%

(19)%

(10)%

(15)%

-%

84%

16%

12%

Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies.

8

Biosimilars

• Ontruzant benefited from incremental tender demand in Brazil
• Hadlima uptake continues following U.S. launch

Biosimilars

Revenues $ mil	Q1-24	Q1-23	Act VPY	Ex-FX VPY
Renflexis ®	69	62	12%	12%
Ontruzant ®	39	21	86%	86%
Brenzys™	24	19	25%	26%
Aybintio™	8	10	(20)%	(21)%
Hadlima ®	30	5	NM	NM
Biosimilars	170	116	46%	46%

Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies.

9

Established Brands

• Volume growth continues to outpace price pressure
• New migraine assets and recovery of injectable steroids more than offset China VBP

Established

Brands

Totals may not foot due to rounding.

Revenues $ mil	Q1-24	Q1-23	Act VPY	Ex-FX
				VPY
Cardiovascular	365	384	(5)%	(3)%
Respiratory	277	292	(5)%	(2)%
Non-Opioid Pain, Bone & Derm	216	186	16%	19%
Other	144	141	2%	4%
Total Est. Brands	1,001	1,002	-%	2%

10