Ortho Clinical Diagnostics Holdings PLC (OCDX) Q1 2022 Earnings Conference Call May 4, 2022 4:30 PM ET Company Participants Bryan Brokmeier - Vice President, Investor Relations Chris Smith - Chairman and Chief Executive Officer Joseph Busky - Chief Financial Officer Operator Welcome to the Ortho Clinical Diagnostics First Quarter 2022 Earnings Conference Call and Webcast. At this time, all participants lines are in a listen-only mode. Please note this conference is being recorded. An audio replay of the con ...

| --- | --- | --- | --- | |--------------------------------------|----------------------|-------|-------| | | | | | | | | | | | | Earnings Results | | | | INVESTOR PRESENTATION (Nasdaq: OCDX) | 1Q 2022 May 04, 2022 | | | © Ortho Clinical Diagnostics 2022 Forward-Looking Statements This presentation and the oral remarks may contain "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. Forwa ...

Transaction Overview - Quidel will acquire Ortho for $24.68 per share, funded by cash and newly issued shares[33] - Ortho shareholders are expected to own approximately 38% of the combined company[33] - The transaction is expected to close in the first half of 2022[33] Financial Synergies and Outlook - The combined company anticipates long-term revenue growth of 9-11% CAGR post-COVID[33, 36] - The combined company expects an EBITDA margin greater than 30%[33, 36] - The combined company expects to achieve cost synergies of approximately $90 million and revenue synergies of over $100 million by 2025[26, 28, 33] - The combined company expects over $750 million in operating cash flow[36] Combined Company Strengths - The combined company will be a Top-7 IVD pure-play diagnostics company[16, 38] - The combined company will have a pro forma revenue of $3.9 billion based on TTM Q3 2021 results[11, 22] - The combined company will have approximately 6,000 employees worldwide[24] - Quidel has ~$925 million in cash (FY2021) and no debt[43]

Financial Data and Key Metrics Changes - Revenue for Q4 2021 was $637 million, with a 2% increase in full-year revenue compared to 2020, primarily driven by strong demand for COVID-19 rapid immunoassay products [13][11] - Total COVID-19 revenue for Q4 was $511.8 million, with $466.7 million from rapid immunoassay products and $45.1 million from molecular products [45] - Gross profit for Q4 was $489.3 million, resulting in a gross profit margin of 77% [54] Business Line Data and Key Metrics Changes - QuickVue product revenues reached $427 million, driven by strong sales of QuickVue COVID-19 tests, which accounted for $419.5 million [47] - Sofia product revenues were $92.8 million, with Sofia SARS Antigen product sales at $47.2 million [46] - Cardiometabolic Immunoassay business revenue was $52.8 million, lower than the prior year due to the transition of the Beckman BNP business [50] Market Data and Key Metrics Changes - The retail channel accounted for 44% of QuickVue At-Home OTC test volume, with significant contributions from pharmacy partners [48] - The company is seeing strong demand for its Sofia COVID-19 antigen test in the professional market, with elevated demand due to COVID-19 case counts [18] - Demand is expected to moderate as COVID-19 cases decline, but government orders are anticipated to continue through Q2 2022 [20] Company Strategy and Development Direction - The acquisition of Ortho Clinical Diagnostics is expected to double the company's size and addressable global market, creating a comprehensive diagnostics solutions portfolio [9][26] - The company aims to leverage complementary expertise and capabilities to drive growth into new markets, with a focus on cross-selling opportunities [27][28] - Investment in R&D continues to expand the pipeline of proprietary assays across various platforms, including QuickVue, Sofia, and Savanna [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Q1 2022 being the largest revenue quarter in the company's history, with expectations for continued strong demand [20] - The company anticipates maintaining 9% to 11% top-line growth post-COVID and generating 30% or more EBITDA margins [28] - Management acknowledged the challenges of predicting future COVID-19 demand but emphasized ongoing engagement with various organizations for international opportunities [65] Other Important Information - The company generated over $800 million in cash flow from operations in 2021 and maintained minimal debt on its balance sheet [57] - As of February 11, the company had approximately $925 million in cash and equivalents, expected to exceed $1.2 billion by the end of Q1 2022 [58] - The integration of Ortho is expected to be completed within approximately two years, with identified cost synergies of $90 million and revenue synergies of $100 million by 2025 [36][37] Q&A Session Summary Question: Can you provide more color on 2022 expectations and government contracts? - Management indicated that they shipped little to the government in Q4 but expect to fulfill the government contract by the end of Q2, with potential for some shipments to extend into Q3 [62][63] Question: What is the baseline level of COVID expectations moving forward? - Management stated that the previous floor of $25 million is no longer applicable and that they will need to establish a new baseline based on evolving demand and government initiatives [88][91] Question: What are the biggest challenges in integrating the two companies? - Management highlighted that time is the main challenge, but both teams have detailed plans and are confident in executing the integration [83] Question: How do you view the current market's perception of the Ortho acquisition? - Management believes the market may not fully understand the strategic value of the acquisition and emphasized the importance of communicating the long-term benefits [100][101]

Ortho Clinical Diagnostics Holdings plc (OCDX) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Participants Bryan Brokmeier - Vice President of Investor Relations Chris Smith - Chairman & Chief Executive Officer Joe Busky - Chief Financial Officer Mike Iskra - Executive Vice President of Commercial Excellence & Strategy Conference Call Participants Tycho Peterson - JP Morgan Vijay Kumar - ISI Derik De Bruin - Bank of America Matt Sykes - Goldman Sachs Patrick Donnelly - Citi Tejas Savan ...

Financial Performance - Core revenue grew to $487.5 million, an increase of 26.2% as reported and 22.5% in constant currency compared to the second quarter of 2020[110] - Clinical Labs revenue increased by 24.9% as reported and 21.1% in constant currency, with ex-CoV-2 growth at 28%[110, 108] - Transfusion Medicine revenue increased by 29.1% as reported and 25.3% in constant currency, driven by base business strength and CTS customer acquisition[110, 108] - Adjusted EBITDA was $128.1 million, representing a 27% increase[103] - The company reduced net leverage to 4.0x, ahead of forecast[33] - $144.1 million adjusted free cash flow in Q2 2021[120] Market and Revenue Diversification - Clinical Labs accounted for 66% of revenue, while Transfusion Medicine accounted for 33%[109] - North America contributed 53% of core revenue, EMEA 14%, China 13%, Japan 7%, LATAM 7%, and ASPAC 6%[31] - Recurring revenue constitutes 93% of the core revenue mix[30] Growth Strategies and Initiatives - The company is focused on product innovation, global commercial excellence, and operational efficiency to drive profitable growth[33] - Expansion of the Commercial Excellence program into emerging markets is accelerating growth[33] - The company is focused on increasing lifetime customer value through menu expansion and utilization, with integrated placements showing significant revenue growth[36]

| --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------| | | | | | | | | | | | | HIGHLY CONFIDENTIAL © Ortho Clinical Diagnostics 2021 Forward-Looking Statements This presentation and the oral remarks may contain "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. Such forward-looking statements reflect, among other things, our current expectations and anticipated result ...

Financial Data and Key Metrics Changes - In Q2 2021, core revenue grew 23% in constant currency to $488 million, with base business (excluding COVID) up 27% [9] - Adjusted EBITDA increased by 27% to $128 million compared to Q2 2020 [9] - Adjusted cash flow for the quarter was $144 million, up $191 million year-on-year, benefiting from $75 million of receivable securitization [9][33] - Total revenue for Q2 was $492.5 million, a 26.1% increase on a reported basis and 22.4% on a constant currency basis [24] Business Line Data and Key Metrics Changes - Clinical labs revenue grew to $325 million, a 21.1% increase on a constant currency basis [27] - Transfusion Medicine (TM) business saw a 25.3% growth on a constant currency basis, generating $162.4 million in revenue [28] - Noncore revenue increased to $4.9 million from $4.3 million in the prior year [28] Market Data and Key Metrics Changes - The Americas, representing 60% of total business, grew 21% for the quarter, 30% without COVID [20] - EMEA revenue grew 24% in Q2, with Western Europe leading at 28% growth [21] - Greater China revenue increased by 23%, but recovery from the pandemic remains slower compared to other markets [22] Company Strategy and Development Direction - The company focuses on three strategic priorities: product innovation, commercial excellence, and operational efficiency [13] - There is a significant opportunity to expand immunoassay market share, with a current addressable market of approximately $26 billion [18] - The company aims to shift customers from standalone analyzers to integrated analyzers, which is fundamental to growth strategy [18] Management's Comments on Operating Environment and Future Outlook - Management raised full-year guidance for core revenue growth to 10% to 12%, up from 9% to 11% [12] - The company expects COVID-19 testing sales to decline in the second half of the year, impacting year-on-year growth rates [12] - Management remains confident in the ability to grow at or above market rates, particularly in Western Europe and emerging markets [60] Other Important Information - The company generated $144.1 million in adjusted free cash flow after funding $5 million for CapEx [33] - The net debt-to-EBITDA ratio was reduced to 4.0x, ahead of the leverage improvement target for the year [35] - The company is actively evaluating organic and inorganic growth opportunities, focusing on high-growth, high-margin products [37] Q&A Session Summary Question: Sequential declines in the Americas - Management noted that when backing out COVID revenue, the base business showed sequential growth of around 3% to 4% [50][51] Question: Guidance for the back half of the year - Management acknowledged that COVID revenue will be a significant headwind, but core business growth is expected to be robust [55] Question: Trends in July regarding COVID - Management indicated that the situation varies globally, and they are being conservative in revenue expectations for COVID-related products [57][58] Question: Capital deployment and M&A opportunities - Management is focused on organic growth through R&D and partnerships, while also considering acquisitions to complement the core business [91][92]