Embecta (EMBC) investor relations material

Company transformation and operational progress

• Completed transition from a division to a standalone public company, establishing global offices, systems, and distribution.

• Surpassed initial post-spin targets for revenue and margin by fiscal 2024, despite macroeconomic headwinds.

• Stand-up work is largely complete, with focus shifting to growth, brand transition, and financial flexibility.

• Over $400 million spent on one-time stand-up costs, now declining, freeing up cash for growth initiatives.

• 100% of revenue now flows through internal systems, enabling greater operational and strategic flexibility.

Financial performance and outlook

• Q3 revenue reached nearly $296 million, with 8% constant currency growth, driven by U.S. pricing and volume.

• U.S. business benefited from rebate reserve adjustments and advance distributor orders; international growth strong in Latin America and Asia.

• China experienced a decline due to increased local competition and distributor inventory adjustments, expected to continue into Q4.

• Tariff impact for fiscal 2025 is expected to be negligible due to recent U.S.-China agreements.

• Net leverage reduced to 3.2x at Q3, with a target to approach 3x by year-end through accelerated debt repayment.

Strategic initiatives and growth drivers

• Three priorities: strengthen the core (brand transition), expand product portfolio (notably GLP-1 initiatives), and increase financial flexibility.

• GLP-1 co-packaging and retail initiatives progressing rapidly, with first launches expected in Canada, Brazil, and India by 2026.

• GLP-1 opportunity projected to contribute at least $100 million annually by 2033, leveraging existing manufacturing capacity.

• New pen needle and syringe products under development, aligned with core competencies.

• M&A and organic investments will be considered once leverage targets are met, aiming to diversify and accelerate growth.