| --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------| | | | | | | | | | | | | 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]