Catalent : Investor Presentation – J.P. Morgan Healthcare Conference
01/10/2022 | 07:08am EDT
This presentation contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by the use of statements that include phrases such as "believe," "expect," "anticipate", "intend", "estimate", "plan", "project", "foresee", "likely", "may", "will", "would" or other words or phrases with similar meanings. Similarly, statements that describe our objectives, plans or goals are, or may be, forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Some of the factors that could cause actual results to differ include, but are not limited to, the following: the current or future effects of the COVID- 19 pandemic on our and clients' businesses; general industry conditions and competition; product or other liability risk inherent in the design, development, manufacture, and marketing of our offerings; difficulties in providing goods and services meeting the quality standards expected by our customers or our regulators; interruptions of, or other difficulties in procuring needed inputs from,
our supply chain; inability to enhance our existing or introduce new technology or services in a timely manner; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; risks generally associated with advanced electronic information systems; our substantial debt and debt service requirements, which may restrict our operating and financial flexibility and impose significant interest and financial costs; risks associated with timely and successfully completing, and correctly anticipating the future demand predicted for, capital expansion projects at our existing facilities; difficulty in completing acquisitions, or integrating them into our existing business, thereby reducing or eliminating their anticipated benefits; and revisions to or cancellation of our environmental, social, and governance initiatives. For a more detailed discussion of these and other factors, see the information under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 filed with the Securities and Exchange Commission. All forward-looking statements in this presentation speak only as of the date of this presentation or as of the date they are made, and we do not undertake to update any forward-looking statement as a result of new information or future events or developments unless and to the extent required by law.
Non-GAAP financial measures
Management measures operating performance based on consolidated earnings from operations before interest expense, expense/(benefit) for income taxes, and depreciation and amortization, adjusted for the income or loss attributable to non-controlling interests ("EBITDA from operations"). EBITDA from operations is not defined under U.S. GAAP, is not a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP, and is subject to important limitations. We believe that the presentation of EBITDA from operations enhances an investor's understanding of our financial performance. We believe this measure is a useful financial metric to assess our operating performance across periods by excluding certain items that we believe are not representative of our core business and use this measure for business planning purposes. In addition, given the significant investments that we have made in the past in property, plant, and equipment, depreciation and amortization expenses represent a meaningful portion of our cost structure. We believe that EBITDA from operations will provide investors with a useful tool for assessing the comparability between periods of our ability to generate cash from operations sufficient to pay taxes, to service debt, and to undertake capital expenditures because it excludes non-cash depreciation and amortization expense. We present EBITDA from operations in order to provide supplemental information that we consider relevant for the readers of our consolidated financial statements, and such information is not meant to replace or supersede U.S. GAAP measures. Our definition of EBITDA from operations may not be the same as similarly titled measures used by other companies. We evaluate the performance of our segments based on segment earnings before non-controlling interest, other (income)/expense, impairments, restructuring costs, interest expense, income tax expense/(benefit), and depreciation and amortization ("segment EBITDA"). Moreover, under our credit agreement, our ability to engage in certain activities, such as incurring certain additional indebtedness, making certain investments and paying certain dividends, is tied to ratios based on Adjusted EBITDA, which is not defined under U.S. GAAP, is not a measure of operating income, operating performance, or liquidity
presented in accordance with U.S. GAAP, and is subject to important limitations. Adjusted EBITDA is the covenant compliance measure used in the credit agreement governing debt incurrence and restricted payments. We define Adjusted EBITDA as net earnings plus interest expense, income tax expense, and depreciation and amortization, adjusted for other cash and non- cash items. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The most directly comparable U.S. GAAP measure to EBITDA from operations is operating earnings. The most directly comparable U.S. GAAP measure to Adjusted EBITDA is net earnings. Reconciliations of historical operating earnings to EBITDA and of historical net earnings to Adjusted EBITDA are available in our SEC filings. We do not provide a reconciliation offorward-lookingnon-GAAPfinancial measures to our comparable U.S. GAAP financial measures because we could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from thenon-GAAPfinancial measures in future periods. When planning, forecasting, and analyzing future periods, we do so primarily on anon-GAAPbasis without preparing a U.S. GAAP analysis as that would require estimates for various cash and non- cash reconciling items that would be difficult to predict with reasonable accuracy. For example, equity compensation expense would be difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. It is equally difficult to anticipate the need for or magnitude of a presently unforeseenone-timerestructuring expense or the values ofend-of-periodforeign currency exchange rates. As a result, we do not believe that a U.S. GAAP reconciliation would provide meaningful supplemental information about our outlook.
Our mission is
to help people live better, healthier lives.
Catalent partners with biopharma, cell & gene, and consumer health companies to optimize the development, launch, and supply of patient treatments across multiple modalities.
An S&P 500® company, Catalent's expert workforce exceeds 17,000, including more than 2,500 scientists and technicians.
Corporate Responsibility is core to our values as we make a positive social impact
Putting patients and people first in our actions and decisions.
Setting science-based targets to minimize our carbon emissions and committing to water-efficiency and waste-reduction targets.
Investing our time, talents and resources to serve patients.
97% renewable energy
$1.2M+ in community grants, driven by our COVID-19 response
Completed third party human rights assessment as part of responsible supply chain initiative
Increased diversity in global leadership & expanded employee resource groups.
42% reduction of Scope 1 and Scope 2 emissions
No residual active pharmaceutical ingredients (API) above predicted no-effect level in wastewater
Reduce water intensity to 500m3/M$ revenue
Zero waste sent to landfill
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