Viatris : Q1 2021 Non-GAAP Reconciliations

VIATRIS

Q1 2021

Non-GAAP Reconciliations

May 10, 2021

Non-GAAP Financial Measures

This presentation includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("U.S. GAAP"). These non-GAAP financial measures, including, but not limited to, adjusted gross profit, adjusted gross margins, adjusted net earnings, EBITDA, adjusted EBITDA margin, adjusted EBITDA, free cash flow, adjusted R&D and as a % of total revenues, adjusted SG&A and as a

• of total revenues, adjusted earnings from operations, adjusted interest expense, adjusted other expense (income), adjusted effective tax rate, notional debt to Credit Agreement Adjusted EBITDA leverage ratio, long-term average debt to Credit Agreement Adjusted EBITDA leverage ratio target, constant currency total revenues and constant currency net sales are presented in order to supplement investors' and other readers' understanding and assessment of the financial performance of Viatris Inc. ("Viatris" or the "Company"). Free cash flow refers to U.S. GAAP net cash provided by operating activities, less capital expenditures. Adjusted EBITDA margins refers to adjusted EBITDA divided by total revenues. Viatris has provided reconciliations of such non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Investors and other readers are encouraged to review the related U.S. GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable U.S. GAAP measures set forth in this presentation and in the section titled
  "GAAP/Non-GAAP Reconciliations", and investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with U.S. GAAP.

This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited.	2
© 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company.

Full Year 2021 Guidance Items

(Unaudited; in millions)

	GAAP		Non-GAAP
Revenues	$17,200 - $17,800		N/A
Net Loss	$(100) - $(300)		N/A
Adjusted EBITDA	N/A	$6,000 - $6,400
Net Cash provided by Operating Activities	$2,650 - $2,800		N/A
Free Cash Flow	N/A	$2,000 - $2,300

This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited.	3
© 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company.

Reconciliation of Estimated 2021 GAAP Net Loss to Non-GAAP Adjusted EBITDA

(Unaudited; in millions)

A reconciliation of the estimated 2021 GAAP Net Loss to Non-GAAP Adjusted EBITDA and the items excluded from Adjusted EBITDA is presented below.

Estimated GAAP Net Loss		$(100) - (300)
Adjusted EBITDA		$6,000 - 6,400
Difference (at mid-point)	$	6,400
Estimated Reconciling Items:
Depreciation and Amortization		3,100
Amortization of the Inventory Fair Value Adjustment from the
Combination		1,200
Restructuring and Acquisition Related Costs		1,000
Interest Expense		700
Other Items including tax expense, net		400
Total	$	6,400

Reconciliation of Estimated 2021 GAAP Net Cash Provided by Operating Activities to Free Cash Flow

(Unaudited; in millions)

A reconciliation of the estimated 2021 GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below.

Estimated GAAP Net Cash provided by Operating Activities	$2,650 - 2,800
Less: Capital Expenditures	$(500) - $(650)
Free Cash Flow	$2,000 - 2,300

This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited.	4
© 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company.

Key metrics Utilized for 2021 Guidance

(Unaudited; in millions, except percentages)

	GAAP		Non-GAAP
Gross margin as a % of revenue	31.0 - 33.0%	58.0 - 59.0%
SG&A expenses as a % of revenue	24.0 - 26.0%	20.5 - 21.5%
R&D expenses as a % of revenue	3.8 - 4.0%	3.7 - 3.9%
Net Cash provided by Operating Activities	$2,650 - $2,800		N/A
Capital Expenditures	$500 - $650		N/A
Effective Tax Rate	12.0 - 16.0%	18.0 - 19.0%
Shares Outstanding	1,209 - 1,213		N/A

2021 Non-GAAP Financial Metrics

The Non-GAAP financial metric Adjusted Gross Margin as a percentage of Revenues excludes the impact of Depreciation and Amortization, the Amortization of the Inventory Fair Value Adjustment from the Combination and certain Restructuring and Acquisition Related Costs when compared to the GAAP Gross Margin as a percentage of Revenues.

The Non-GAAP financial metric Adjusted R&D as a percentage of Revenues excludes the impact of certain Restructuring and Acquisition Related Costs and other items when compared to the GAAP R&D as a percentage of Revenues.

The Non-GAAP financial metric Adjusted SG&A as a percentage of Revenues excludes the impact of certain Restructuring and Acquisition Related Costs and other items when compared to the GAAP SG&A as a percentage of Revenues.

The Non-GAAP financial metric Adjusted Effective Tax Rate percentage the impact of non-GAAP adjustments and other tax related items when compared to the GAAP Effective Tax Rate percentage.

This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited.	5
© 2021 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company.