Slides
Page 1
Q2 2026 Earnings August 6 , 2026 VIATRIST
Page 2
© 2026 Viatris Inc. All Rights Reserved. Forward Looking Statements 2 This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward -looking statements may include, without limitation, statements about our 2026 financial guidance; we are building a more focused, efficient and future -ready organization positioned to enter a period of sustained revenue and earnings growth beginning in 2026; our 2026 strategic priorities; selatogrel Phase 3 enrollment on track; on track to deliver identified cost savings, while reinvesting in the bus iness to support future growth; value-added medicines pipeline, including status and anticipated milestones; innovative medicines pipeline, including status and anticipated milestones; framework to accelerate shareholder value; path to sustained revenue and earnings growth; sustainable revenue growth, including continue to deliver on base business growth, drive new product revenues and execute near-term launches, and advance pipeline to enhance long -term durable growth; accelerate earnings growth, including expect to deliver cost savings of ~$400M by the end of 2028, disciplined reinvestment into higher-margin portfolio, and share count reduction; cash flow firepower, including significant cash flow gener ation and working capital improvements; balanced capital allocation, including return of capital to shareholders through dividend and share repurchases, and target accretive in -market business development opportunities; key metrics utilized for 2026 financial guidance; 2026 key modeling and phasing considerations; continue to expect total revenues to grow ~2% operationally, primarily driven by Greater China and Emerging Markets; expect new product revenues of $450M -$550M; currently anticipate negative impact of supply disruptions between $100M -$150M in the second half of 2026; now anticipate full-year FX tailwind of ~1%; adjusted EPS and shares outstanding include estimated impact of shares repurc hased in 2026 through and including August 5, 2026, and does not include the expected impact of additional share repurchases in 2026 after such date; total revenues expected to be higher in the second half vs the first half of 2026 (~51% vs ~49% of our full year outlook) driven by normal product seasonality and the anticipated timing and uptake of new product launches; adjusted EBITDA and adjusted EPS now expected to be slightly lower in the second half; gross margins ex pected to moderate slightly; expect SG&A to be higher in the second half to support upcoming launches; free cash flow still expected to be more heavily weighted towards the second half vs the first half of 2026 driven by timing of wo rking capital and one-time operating cash costs; 2026 capital allocation framework; expect ~$3B cash available for deployment in 2026, with ~$1.6B remaining after year-to-date deployment; capital return including annual dividend policy of $0.4 8 per share; business development, including pursue accretive in -market business development to accelerate growth and pursue licensing and partnership opportunities to leverage our regional capabilities and infrastructure; debt/leve rage, including long-term gross leverage ratio target of 2.8x-3.2x; the goals or outlooks with respect to the Company’s strategic initiatives and priorities, including but not limited to divestitures, acquisitions, strategic alliances, collaborations, or other potential transactions; the anticipated benefits of such strategic initiatives or priorities or restructuring activities; future opportunities for the Company and its products; the outcomes of clinical trials and research studies; R&D and new product development; and any other statements regarding the Company’s future operations, financial or operating results, capital allocation, dividend policy and payments, share repurchases, debt ratio and covenants , anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities, strategies, imperatives, competitions, commitments, confidence in future results, efforts to create, enhance or otherwise unlock value, and other expectations and targets for future periods. Forward-looking statements may often be identified by the use of words such as “will”, “may”, “could”, “should”, “would”, “project”, “believe”, “anticipate”, “expect”, “plan”, “estimate”, “forecast”, “potential”, “pipeline”, “intend”, “continue”, “target”, “seek” and variations of these words or comparable words. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the possibility that the Company may not realize the intended benefits of, or ac hieve the intended goals or outlooks with respect to, its strategic initiatives and priorities; the possibility that the Company may be unable to achieve the intended or expected benefits of its enterprise -wide strategic review and related cost-saving and restructuring activities within the expected timeframe or at all; the possibility that the Company may be unable to achieve intended or expected benefits in connection with divestitures, acquisitions, strategic alliances, collabora tions, or other transactions, or restructuring programs, within the expected timeframes or at all; goodwill or impairment charges or other losses; success of clinical trials and the Company’s or its partners’ ability to execute on new product oppo rtunities and develop, manufacture and commercialize products; any changes in or difficulties with the Company’s manufacturing facilities, including with respect to short- or long-term shutdowns, inspections, remediation and restructuring ac tivities, supply chain continuity, inventory management, or the ability to meet anticipated demand; the Company’s failure to achieve expected or targeted future financial and operating performance and results; the potential impact of natur al or man-made disasters, public health outbreaks, fires, accidents, weather, unrest or other emergencies in regions where we or our partners or suppliers operate; actions and decisions of healthcare and pharmaceutical regulators; changes in relevant laws, regulations and policies and/or the application or implementation thereof, including but not limited to tax, healthcare and pharmaceutical laws, regulations and policies globally; the ability to attract, motivate and retain ke y personnel; the Company’s liquidity, capital resources and ability to obtain financing; any regulatory, legal or other impediments to the Company’s ability to bring new products to market; products in development that receive regulatory approva l may not achieve expected levels of market acceptance, efficacy or safety; longer review, response and approval times as a result of evolving regulatory priorities and reductions in personnel at health agencies; the scope, timing and out come of any ongoing legal proceedings, including government inquiries or investigations, and the impact of any such proceedings on the Company; any significant breach of data security or data privacy or disruptions to our IT systems; risks a ssociated with having significant operations globally; the ability to protect intellectual property and preserve intellectual property rights; changes in third -party relationships; the effect of any changes in the Company’s or its partners’ customer and supplier relationships and customer purchasing patterns, including customer loss and business disruption being greater than expected following an adverse regulatory action, acquisition or divestiture; the impacts of com petition, including decreases in sales or revenues as a result of the loss of market exclusivity for certain products; changes in the economic and financial conditions of the Company or its partners; uncertainties regarding future demand, prici ng and reimbursement for the Company’s products; uncertainties and matters beyond the control of management, including but not limited to general political and economic conditions, wars or other conflicts, potential for adverse impact s from future tariffs and trade restrictions, inflation rates and global exchange rates; and inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements, and the providing of estimates of fi nancial measures, in accordance with U.S. GAAP and related standards or on an adjusted basis. For more detailed information on the risks and uncertainties associated with Viatris, see the risks described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and our other filings with the SEC. You can access Viatris’ filings with the SEC through the SEC website at www.sec.gov or through our website, and Viatris strongly encourages you to do so. Viatris routinely posts information that may be important to investors on our website at investor.viatris.com, and we use this website address as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). The contents of our website are not incorporated into this presentation or our filings with the SEC. Viatris undertakes no obligation to upda te any statements herein for revisions or changes after the date of this presentation other than as required by law.
Page 3
© 2026 Viatris Inc. All Rights Reserved. Key References and Non-GAAP Measures New product sales, new product launches or new product revenues: Refers to revenue from new products launched in 2026 and the carryover impact of new products, including business development , launched within the last 12 months. Operational change: Refers to constant currency percentage changes and is derived by translating amounts for the current period at prior year com parative period exchange rates and in doing so shows the percentage change from 2026 constant currency net sales, total revenues, adjusted EBITDA, and adjusted EPS to the corresponding amount in the p rior year. Transaction costs or transaction-related costs: Refers to the impact of any acquisition and divestiture-related transaction costs, including taxes. Restructuring costs or restructuring-related costs: Refers to the impact of any cash costs associated with the restructuring activities of the enterprise-wide strategic review, which are expected to be primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations, vendor con solidations, product transfer costs and network related simplification and modernization costs. Revenue and Earnings: Refers to Total Revenues, Adjusted EBITDA and Adjusted EPS. 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 EBITDA, free cash flow, free cash flow excluding transaction-related and restructuring-related costs, adjusted EPS, adjusted gross margin, adjusted gross profit, adjusted SG&A and as a percentage of total revenues, adjusted R&D and as a percentage of total revenues, adjusted net earnings, adjust ed effective tax rate, adjusted earnings from operations, adjusted interest expense, adjusted other income, net, constant currency total revenues, constant currency net sales, notional debt, gross leverage ratio and long -term gross leverage ratio target, are presented in order to supplement investors' and other readers' understanding and assessment of the financial performance of Viatris. Free cash flow refers to U.S. GAAP net cash provided by operating activities less capital expenditures. Free cash flow excluding transaction-related costs or restructuring-related costs refers to free cash flow, further adjusted to exclude transaction -related or restructuring-related costs, as applicable. Adjusted EBITDA refers to as U.S. GAAP net earnings (loss) adjusted for income tax provision (benefit), interest expense and depreciation and amortization (to calculate EBITDA) and further adjusted for share -based compensation expense, litigation settlements and other contingencies, net, loss on divestitures of businesses, impairment of goodwill and restructuring, acquisition and divestiture related and other special items. Adjusted EBITDA margins refers to adjusted EBITDA divided by total revenues. Adjusted EPS refers to adjusted net earnings divided by the weighted average number of diluted shares of common stock outstanding. Notional gross debt is the sum of the Company’s long-term debt, including current portion, and short-term borrowings and other current obligations, adjusted for net premiums or discounts on various debt issuances and deferred financing fees. Viatris ha s 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 th e reconciliations of the non-GAAP measures to their most directly comparable U.S. GAAP measures set forth in this presentation or on our website at https://investor.viatris.com/financial-information/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. 2026 Guidance The Company is not providing forward-looking guidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted earnings (loss) per share (“EPS”) or a quantitative reconciliation of its 2026 adjusted EBITDA or adjusted EPS guidance to the most directly comparable U.S. GAAP measures, U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS, respectively, bec ause it is unable to predict with reasonable certainty the ultimate outcome of certain significant items, including integration, acquisition and divestiture-related expenses, restructuring expenses, asset impairments, litigation settlements, future share repurchases, and other contingencies, such as changes to contingent consideration, acquired IPR&D and certain other gains or losses, as well as related income tax accounting, because certain of these items have not occurred, are out of the Company’s control and/or cannot be reasonably predicted without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. 2026 financial guidance as provided on August 6, 2026 excludes the impact any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably fore casted. Key Exchange Rates Our 2026 financial guidance and long-term financial targets are based on the following budgeted exchange rates: Euro ($/EUR) 0.87, China Renminbi ($/CNY) 7.19, Japanese Yen ($/JPY) 144.35, and Indian Rupee ($/INR) 85.80. 3
Page 4
Strategic Update Scott A. Smith Chief Executive Officer
Page 5
© 2026 Viatris Inc. All Rights Reserved. Drive our Base Business Fuel our Innovative Portfolio 2026 and Beyond: Creating our Future We are building a more focused, efficient and future-ready organization positioned to enter a period of sustained revenue and earnings growth beginning in 2026 Our Strategic Imperatives: 5 Modernize for Sustainable Growth For key references and non-GAAP measures, see slide 3
Page 6
© 2026 Viatris Inc. All Rights Reserved. Q2 2026 Financial Highlights 6 For key references and non-GAAP measures, see slide 3 (1) Q2 2026 Free Cash Flow was $329M. Excluding the impact of transaction-related and restructuring-related costs of $120M, Q2 2026 Free Cash Flow was $449M. Total Revenues $3.8B Adjusted EBITDA $1.2B Free Cash Flow (1) Ex Transaction and Restructuring Costs $449M Adjusted EPS $0.69
Page 7
© 2026 Viatris Inc. All Rights Reserved. ‣ Q2 performance ahead of our expectations, with 4% total revenue growth, 8% adjusted EBITDA growth, and 9% adjusted EPS growth operationally ‣ Strong commercial execution across our global portfolio, led by Greater China and Developed Markets ‣ Received FDA approval for Gwyn Lo and several complex injectables, including ferric carboxymaltose ‣ Cenerimod SLE Phase 3 studies fully enrolled; Selatogrel Phase 3 full enrollment expected in 2026 ‣ Returned ~$550M of capital to shareholders through early August, including ~$270M share repurchases and ~$280M dividends paid ‣ On track to deliver identified cost savings, while reinvesting in the business to support future growth Execution Delivering on our 2026 Strategic Priorities Deliver strong financial performance Drive commercial execution, including launches Advance our pipeline, including regulatory decisions for six product candidates Evolve our organization and modernize for future growth Target accretive in-market business development Execute disciplined and balanced capital allocation 2026 Strategic Priorities 7 For key references and non-GAAP measures, see slide 3
Page 8
R&D Update Philippe Martin Chief R&D Officer
Page 9
© 2026 Viatris Inc. All Rights Reserved. Asset Region Targeted Indication Phase 3 Regulatory Review Status Anticipated Milestone EFFEXOR® Japan Generalized Anxiety Disorder (GAD) Approved in Japan Fast-Acting Meloxicam (MR-107A-02) U.S. Acute Pain NDA accepted for review by FDA Anticipate regulatory decision in H2 2026 Gwyn Lo Norelgestromin and Ethinyl Estradiol Weekly Patch U.S. Contraception Received FDA approval Norelgestromin Weekly Patch (MR-130A-01) U.S. Contraception Enrollment complete Targeting Phase 3 readout in H1 2027 Phentolamine Ophthalmic Solution (MR-141) U.S. Presbyopia sNDA accepted for review by FDA Anticipate regulatory decision in H2 2026 Phentolamine Ophthalmic Solution (MR-142) U.S. Visual Disturbances in Low Light Conditions following Keratorefractive Surgery Positive first Phase 3 study Targeting second Phase 3 enrollment in H2 2026 Influvac® High Dose Europe Influenza Phase 3 data under review; primary objective not met Evaluating next steps Creon® High Dose (for non-CF indications) Europe, Ex-U.S. Exocrine Pancreatic Insufficiency Positive interim Phase 3 results Targeting type 2 variation submission in H2 2026 Spydia® Asia- Pacific (1) Status Epilepticus Approved in Japan Assessing opportunities in other Asia-Pacific markets Value-Added Medicines Pipeline (1) Acquired exclusive rights in Japan and certain markets in the Asia-Pacific region, including Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, New Zealand, Philippines, South Korea, Thailand and Vietnam. 9
Page 10
© 2026 Viatris Inc. All Rights Reserved. Asset Region Targeted Indication Phase 3 Regulatory Review Status Anticipated Milestone Selatogrel Global Acute Myocardial Infarction (AMI) Enrollment ongoing Targeting Phase 3 enrollment completion in 2026 Cenerimod Global Systemic Lupus Erythematosus (SLE) Enrollment complete Targeting Phase 3 readout in H1 2027 Cenerimod Global Lupus Nephritis Enrollment ongoing Targeting Phase 3 enrollment completion in H1 2028 Nefecon® (VR-205) Japan IgA Nephropathy Positive Phase 3 study Targeting regulatory submission in Japan in H2 2026 Pitolisant Japan Excessive Daytime Sleepiness associated with Narcolepsy and Obstructive Sleep Apnea Syndrome J-NDAs filed in Japan Anticipate regulatory decisions in H2 2026 Inpefa® (Sotagliflozin) Ex-U.S., Ex-Europe Heart Failure Approved in UAE and Bahrain; filed regulatory submissions in Saudi Arabia, Canada, Australia, New Zealand, Mexico, Singapore, Oman, Thailand, Turkey, Malaysia, Philippines, and Kuwait Anticipate regulatory decisions in Australia and Canada and regulatory submissions in other markets in 2026 Innovative Medicines Pipeline 10
Page 11
Financial Update Paul Campbell Interim Chief Financial Officer
Page 12
© 2026 Viatris Inc. All Rights Reserved. Framework to Accelerate Shareholder Value 12 ‣ Continue to deliver on base business growth ‣ Drive new product revenues and execute near-term launches ‣ Advance pipeline to enhance long-term durable growth Sustainable Revenue Growth Accelerate Earnings Growth ‣ Expect to deliver net cost savings of ~$400M by the end of 2028 ‣ Disciplined reinvestment into higher-margin portfolio ‣ Share count reduction Cash Flow Firepower ‣ Significant cash flow generation ‣ Working capital improvements Balanced Capital Allocation ‣ Return of capital to shareholders through dividend and share repurchases ‣ Target accretive in-market business development opportunities Path to Sustained Revenue and Earnings Growth For key references and non-GAAP measures, see slide 3
Page 13
© 2026 Viatris Inc. All Rights Reserved. Q2 2026 Q2 2025 Change Op Change Total Revenues $3,757 $3,582 5% 4% Adjusted EBITDA $1,188 $1,079 10% 8% Adjusted EPS $0.69 $0.62 11% 9% Free Cash Flow $329 $167 97% Free Cash Flow (1) Ex Transaction and Restructuring Costs $449 $241 86% Q2 2026 Financial Results ($M, except percentages and Adjusted EPS) For key references and non-GAAP measures, see slide 3 (1) Q2 2026 Free Cash Flow was $329M. Excluding the impact of transaction-related and restructuring-related costs of $120M, Q2 2026 Free Cash Flow was $449M. Q2 2025 Free Cash Flow was $167M. Excluding the impact of transaction-related costs of $74M, Q2 2025 Free Cash Flow was $241M. 13
Page 14
© 2026 Viatris Inc. All Rights Reserved. OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period ‣ Brands: Continued strength in Greater China and Emerging Markets ‣ Generics: Contributions from new product launches, in addition to growth in certain products in Developed Markets, partially offset by supply constraints in our ARV business within Emerging Markets ($M) Q2 2026 Q2 2025 Change Op Change Net Sales $3,746 $3,569 5% 4% Brands 2,418 2,285 6% 4% Generics 1,328 1,284 3% 3% 14 Total Net Sales For key references and non-GAAP measures, see slide 3
Page 15
© 2026 Viatris Inc. All Rights Reserved. OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period ‣ Europe: ~$1.3B; +2% op change ‣ North America: ~$0.9B; +1% op change ‣ Brands: Anticipated competitive impacts on certain brands, including Dymista® (EU) and EpiPen® (U.S.), partially offset by strong performance in key brands such as Creon® and Yupelri® ‣ Generics: Strong growth in North America driven by Breyna®, estradiol patches, and contributions from new product launches, including iron sucrose and octreotide; solid performance in key European Markets such as France and Italy ($M) Q2 2026 Q2 2025 Change Op Change Net Sales $2,194 $2,119 4% 2% Brands 1,122 1,121 0% (2%) Generics 1,071 998 7% 6% 15 Developed Markets For key references and non-GAAP measures, see slide 3
Page 16
© 2026 Viatris Inc. All Rights Reserved. OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period ‣ Brands: Strength in MENA, Eurasia, and Emerging Asia regions, as well as growth in key brands ‣ Generics: Negative impact in our ARV business due to continued supply constraints ($M) Q2 2026 Q2 2025 Change Op Change Net Sales $542 $555 (2%) (2%) Brands 441 416 6% 6% Generics 101 139 (27%) (27%) 16 Emerging Markets For key references and non-GAAP measures, see slide 3
Page 17
© 2026 Viatris Inc. All Rights Reserved. OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period ‣ Brands: Anticipated competition on certain products in Australia and negative impact from government price regulations in Japan, partially offset by solid performance in key brands, including Amitiza® and Effexor® ‣ Generics: Broad volume growth in Japan and strong complex generics performance in Australia ($M) Q2 2026 Q2 2025 Change Op Change Net Sales $296 $306 (3%) 0% Brands 144 161 (10%) (5%) Generics 152 145 5% 5% 17 JANZ For key references and non-GAAP measures, see slide 3
Page 18
© 2026 Viatris Inc. All Rights Reserved. OPERATIONAL HIGHLIGHTS Q2 Performance vs. Prior Year Period ‣ Overall performance primarily reflects strong growth in China across multiple channels, including e-commerce, retail, and hospitals ‣ Increased demand across our cardiovascular portfolio ($M) Q2 2026 Q2 2025 Change Op Change Net Sales $714 $589 21% 16% Brands 711 587 21% 16% Generics 3 2 NM NM 18 Greater China For key references and non-GAAP measures, see slide 3
Page 19
© 2026 Viatris Inc. All Rights Reserved. ($M, except Adjusted EPS) Updated 2026 Financial Guidance Financial Guidance Estimated Ranges (1) May 7, 2026 Midpoint (1) May 7, 2026 Estimated Ranges (2) August 6, 2026 Midpoint (2) August 6, 2026 Total Revenues $14,450 - $14,950 $14,700 $14,550 - $14,950 $14,750 Adjusted EBITDA $4,150 - $4,450 $4,300 $4,300 - $4,500 $4,400 Adjusted EPS $2.33 - $2.47 $2.40 $2.45 - $2.59 $2.52 Free Cash Flow Ex Transaction & Restructuring Costs $1,950 - $2,350 $2,150 $2,050 - $2,350 $2,200 19 For key references and non-GAAP measures, see slide 3 (1) 2026 financial guidance as reaffirmed on May 7, 2026 excluded the estimated impact of transaction-related and restructuring-related costs of ~$700M. Also excluded any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted. (2) 2026 financial guidance as provided on August 6, 2026 excludes the estimated impact of transaction-related and restructuring-related costs of ~$600M. Also excludes any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted.
Page 20
© 2026 Viatris Inc. All Rights Reserved. Key Metrics Utilized for 2026 Financial Guidance Key Metrics Estimated Ranges May 7, 2026 Estimated Ranges August 6, 2026 Adjusted Gross Margin 55.5% - 56.5% 55.5% - 56.5% Adjusted SG&A % of Total Revenues 22.0% - 23.0% 22.0% - 23.0% Adjusted R&D % of Total Revenues 6.2% - 6.6% 6.2% - 6.6% Adjusted Effective Tax Rate 17.5% - 18.5% 17.5% - 18.5% Shares Outstanding ~1,180M ~1,170M 20 For key references and non-GAAP measures, see slide 3
Page 21
© 2026 Viatris Inc. All Rights Reserved. 2026 Key Modeling and Phasing Considerations Key Assumptions ‣ Continue to expect Total Revenues to grow ~2% operationally, primarily driven by Greater China and Emerging Markets ‣ Expect new product revenues of $450M-$550M ‣ Currently anticipate negative impact of supply disruptions between $100M-$150M in the second half of 2026 ‣ Now anticipate full-year FX tailwind of ~1% (1) ‣ Adjusted EPS and Shares Outstanding include estimated impact of shares repurchased in 2026 through and including August 5, 2026, and does not include the expected impact of additional share repurchases in 2026 after such date Phasing ‣ Total Revenues expected to be higher in the second half vs the first half of 2026 (~51% vs ~49% of our full year outlook) driven by normal product seasonality and the anticipated timing and uptake of new product launches ‣ Adjusted EBITDA and Adjusted EPS now expected to be slightly lower in the second half ‣ Gross margins expected to moderate slightly ‣ Expect SG&A to be higher in the second half to support upcoming launches ‣ Free Cash Flow still expected to be more heavily weighted towards the second half vs the first half of 2026 driven by timing of working capital and one-time operating cash costs 21 For key references and non-GAAP measures, see slide 3 (1) Key exchange rates used for 2026 financial guidance: Euro ($/EUR) 0.87, China Renminbi ($/CNY) 7.19, Japanese Yen ($/JPY) 144.35, and Indian Rupee ($/INR) 85.80.
Page 22
© 2026 Viatris Inc. All Rights Reserved. 2026 Capital Allocation Framework Capital Return Business Development Debt / Leverage ‣ Annual dividend policy of $0.48 per share ‣ Returned ~$550M of capital to shareholders through early August, including: ‣ ~$270M share repurchases ‣ ~$280M dividends paid ‣ Pursue accretive in-market business development to accelerate growth ‣ Pursue licensing and partnership opportunities to leverage our regional capabilities and infrastructure ‣ Repaid ~$900M of ~$1.9B maturities in Q2 and refinanced the remaining balance, reducing gross leverage ratio to 2.9x ‣ Long-term gross leverage ratio target of 2.8x-3.2x 22 For key references and non-GAAP measures, see slide 3 (1) Expect ~$3B cash available for deployment in 2026, including ~$800M excess cash on hand at December 31, 2025, expected 2026 free cash flow generation of $1,450M-$1,750M, and total Biocon gross proceeds of ~$780M. Reflecting the ~$1.4B cash deployed through and including August 5, 2026, we expect ~$1.6B remaining for deployment this year. Expect ~$3B Cash Available for Deployment in 2026, with ~$1.6B Remaining After Year-to-date Deployment(1)
Page 23
GAAP / Non-GAAP Reconciliations
Page 24
© 2026 Viatris Inc. All Rights Reserved. GAAP Non-GAAP (1) Total Revenues $14,550 - $14,950 N/A Adjusted EBITDA N/A $4,300 - $4,500 Net Cash Provided by Operating Activities $1,900 - $2,100 N/A Free Cash Flow Ex Transaction and Restructuring Costs N/A $2,050 - $2,350 Adjusted EPS N/A $2.45 - $2.59 Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS) Full Year 2026 Financial Guidance Items as of August 6, 2026 For key references and non-GAAP measures, see slide 3 (1) 2026 financial guidance and key metrics as provided on August 6, 2026, exclude the estimated impact of transaction-related and restructuring-related costs of ~$600M. Also exclude any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted. 24
Page 25
© 2026 Viatris Inc. All Rights Reserved. Estimated U.S. GAAP Net Cash Provided by Operating Activities $1,900 - $2,100 Less: Capital Expenditures ($350) - ($450) Free Cash Flow $1,450 - $1,750 Add: Estimated Transaction and Restructuring Costs ~$600 Free Cash Flow Excluding Transaction and Restructuring Costs $2,050 - $2,350 Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of August 6, 2026 For key references and non-GAAP measures, see slide 3 25
Page 26
© 2026 Viatris Inc. All Rights Reserved. GAAP Non-GAAP (1) Total Revenues $14,450 - $14,950 N/A Adjusted EBITDA N/A $4,150 - $4,450 Net Cash Provided by Operating Activities $1,700 - $2,000 N/A Free Cash Flow Ex Transaction and Restructuring Costs N/A $1,950 - $2,350 Adjusted EPS N/A $2.33 - $2.47 Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS) Full Year 2026 Financial Guidance Items as of May 7, 2026 26 For key references and non-GAAP measures, see slide 3 (1) 2026 financial guidance and key metrics as reaffirmed on May 7, 2026 excluded the estimated impact of transaction-related and restructuring-related costs of ~$700M. Also excluded any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted.
Page 27
© 2026 Viatris Inc. All Rights Reserved. Estimated U.S. GAAP Net Cash Provided by Operating Activities $1,700 - $2,000 Less: Capital Expenditures ($350) - ($450) Free Cash Flow $1,250 - $1,650 Add: Estimated Transaction and Restructuring Costs ~$700 Free Cash Flow Excluding Transaction and Restructuring Costs $1,950 - $2,350 Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of May 7, 2026 For key references and non-GAAP measures, see slide 3 27
Page 28
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except per share amounts) U.S. GAAP Net (Loss) Earnings to Adjusted Net Earnings and U.S. GAAP Diluted (Loss) Earnings Per Share to Adjusted EPS (a) Acquisition and divestiture-related costs consist primarily of contractual obligations related to divestitures, transaction costs including legal and consulting fees, and integration activities. (b) For the three and six months ended June30, 2026, charges include approximately $26.9 million and $76.7 million in cost of sales, approximately $2.0 million and $2.6 million in R&D, and approximately $19.0 million and $61.0 million in SG&A, primarily relating to the 2026 restructuring program. (c) For the three and six months ended June30, 2026, includes certain asset impairments, contractual termination costs, and incremental manufacturing variances and certain remediation costs at plants slated for sale or closure or undergoing remediation activities of approximately $44.2million and $174.9million, respectively,including charges of $14.9million and $86.8million, respectively, primarily related to the write off of inventory and fixed assets damaged in the fire at the Nashik manufacturing facility and incremental manufacturing variances. (d) For the three and six months ended June30, 2026, includes a charge of $177.8 million related to the planned sale of the productrights for Tyrvaya®. (e) For the three and six months ended June30, 2026, charges include a (gain)/loss of approximately $(56.3)million and $8.6million, respectively, as a result of changes in the fair value of the Biocon Limited equity shares. (f) Adjusted for changes for uncertain tax positions. 28 U.S. GAAP net (loss) earnings and U.S. GAAP diluted (loss) earnings per share.............................. (118.8)$ (0.10)$ (4.6)$ –$ 57.6$ 0.05$ (3,046.6)$ (2.58)$ Purchase accounting amortization (primarily included in cost of sales) ......................................... 586.4 597.8 1,177.9 1,181.3 Impairment of goodwill ............................................................................................................... – – – 2,936.8 Litigation settlements and other contingencies, net..................................................................... 73.2 (47.6) 126.7 (121.1) Interest expense (primarily amortization of premiums and discounts on long term debt)............ (10.2) (9.5) (20.3) (18.7) Loss on divestitures of businesses (included in other (income) expense, net) .............................. – 43.8 13.9 80.7 Acquisition and divestiture-related costs (primarily included in cost of sales and SG&A) (a)........... 51.4 53.7 113.7 94.4 Restructuring costs (b)................................................................................................................. 47.8 26.6 140.3 119.5 Share-based compensation expense............................................................................................ 38.7 37.1 86.9 92.3 Other special items included in: Cost of sales (c)......................................................................................................................... 56.3 59.1 198.7 100.7 Research and development expense........................................................................................ 1.1 1.4 3.9 2.1 Selling, general and administrative expense (d)......................................................................... 241.1 30.1 276.5 47.7 Other (income) expense, net (e)................................................................................................ (35.8) 304.6 25.5 406.0 Tax effect of the above items and other income tax related items (f)........................................... (122.7) (366.5) (698.7) (548.8) Adjusted net earnings and adjusted EPS....................................................................................... 808.5$ 0.69$ 726.0$ 0.62$ 1,502.6$ 1.28$ 1,326.3$ 1.11$ Weighted average diluted shares outstanding.............................................................................. 1,172.4 1,176.8 1,173.8 1,189.9 2026 2025 Three Months Ended June 30, Six Months Ended June 30, 2026 2025
Page 29
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) U.S. GAAP Net (Loss) Earnings to EBITDA and Adjusted EBITDA 29 (a) Includes amortization of premiums and discounts on long-term debt. (b) Includes purchase accounting related amortization. (c) See items detailed in the Reconciliation of U.S. GAAP Net (Loss) Earnings to Adjusted Net Earnings. 2026 2025 2026 2025 U.S. GAAP net (loss) earnings........................................................................................... (118.8)$ (4.6)$ 57.6$ (3,046.6)$ Add / (deduct) adjustments: Income tax provision (benefit)..................................................................................... 54.8 (212.5) (368.9) (267.5) Interest expense (a)....................................................................................................... 120.7 116.6 240.8 232.1 Depreciation and amortization (b)............................................................................... 672.3 678.3 1,348.4 1,343.0 EBITDA................................................................................................................................ 729.0$ 577.8$ 1,277.9$ (1,739.0)$ Add / (deduct) adjustments: Share-based compensation expense 38.7 37.1 86.9 92.3 Litigation settlements and other contingencies, net.................................................. 73.2 (47.6) 126.7 (121.1) Loss on divestitures of businesses.............................................................................. – 43.8 13.9 80.7 Impairment of goodwill................................................................................................ – – – 2,936.8 Restructuring, acquisition and divestiture-related and other special items (c)....... 347.4 467.7 732.4 752.6 Adjusted EBITDA................................................................................................................ 1,188.3$ 1,078.8$ 2,237.8$ 2,002.3$ Three Months Ended June 30, Six Months Ended June 30,
Page 30
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – Q2 2026 30 (a) Currency impact is shown as unfavorable (favorable). (b) The constant currency percentage change is derived by translating net sales or revenues for the current period at prior year comparative period exchange rates, and in doing so shows the percentage change from 2026 constant currency net sales or revenues to the corresponding amount in the prior year. (c) For the three months ended June30, 2026, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $9.3 million, $0.1 million, and $1.5 million, respectively. (d) Amounts exclude intersegment revenue which eliminates on a consolidated basis. 2026 2025 % Change 2026 Currency Impact (a) 2026 Constant Currency Revenues Constant Currency % Change (b) Net sales Developed Markets ........................ 2,193.7$ 2,119.3$ 4 % (30.8)$ 2,162.9$ 2 % Greater China................................. 713.8 588.9 21 % (28.6) 685.2 16 % JANZ............................................... 296.1 305.7 (3)% 8.1 304.2 – % Emerging Markets .......................... 542.3 555.1 (2)% 2.1 544.4 (2)% Total net sales........................ 3,745.9$ 3,569.0$ 5 % (49.2)$ 3,696.7$ 4 % Other revenues (c).......................... 10.9 13.1 NM (0.1) 10.8 NM Consolidated total revenues (d).......... 3,756.8$ 3,582.1$ 5 % (49.3)$ 3,707.5$ 4 % June 30, Three Months Ended
Page 31
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Summary of Total Revenues by Segment – H1 2026 31 (a) Currency impact is shown as unfavorable (favorable). (b) The constant currency percentage change is derived by translating net sales or revenues for the current period at prior year comparative period exchange rates, and in doing so shows the percentage change from 2026 constant currency net sales or revenues to the corresponding amount in the prior year. (c) For the six months ended June30, 2026, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $14.5million, $0.2million, and $3.5million, respectively. (d) Amounts exclude intersegment revenue which eliminates on a consolidated basis. 2026 2025 % Change 2026 Currency Impact (a) 2026 Constant Currency Revenues Constant Currency % Change (b) Net sales Developed Markets ........................ 4,214.5$ 4,011.0$ 5 % (148.5)$ 4,066.0$ 1 % Greater China................................. 1,393.9 1,144.4 22 % (54.2) 1,339.7 17 % JANZ............................................... 569.5 581.8 (2)% 4.3 573.8 (1)% Emerging Markets .......................... 1,077.7 1,075.0 – % (12.5) 1,065.2 (1)% Total net sales........................ 7,255.6$ 6,812.2$ 7 % (210.9)$ 7,044.7$ 3 % Other revenues (c).......................... 18.2 24.2 NM (0.2) 18.0 NM Consolidated total revenues (d).......... 7,273.8$ 6,836.4$ 6 % (211.1)$ 7,062.7$ 3 % June 30, Six Months Ended
Page 32
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Key Product Net Sales, on a Consolidated Basis 32 (a) The Company does not disclose net sales for any products considered competitively sensitive. (b) Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches. (c) Amounts include the impact of foreign currency fluctuations compared to the prior year period. 2026 2025 2026 2025 Select Key Global Products Lipitor ® 452.2$ 387.9$ 914.2$ 775.9$ Norvasc ® 200.2 182.7 410.2 355.0 EpiPen ® Auto-Injectors 129.2 136.8 230.3 233.5 Lyrica ® 120.6 128.1 241.2 240.7 Viagra ® 112.9 100.3 207.9 198.8 Creon ® 97.4 91.4 194.8 173.8 Celebrex ® 76.4 70.0 143.5 133.4 Zoloft ® 71.4 61.1 144.0 121.3 Effexor ® 66.7 63.1 128.7 122.4 Xalabrands 38.8 40.7 78.0 77.8 Select Key Segment Products Yupelri ® 70.7$ 66.6$ 133.2$ 124.9$ Dymista ® 39.8 48.4 77.1 91.2 Amitiza ® 39.4 41.6 73.4 74.9 Xanax ® 38.1 33.9 72.9 66.2 Three Months Ended June 30, Six Months Ended June 30,
Page 33
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Cost of Sales 33 (a) U.S. GAAP gross profit is calculated as total revenues less U.S. GAAP cost of sales. U.S. GAAP gross margin is calculated as U.S. GAAP gross profit divided by total revenues. Adjusted gross profit is calculated as total revenues less adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues. 2026 2025 2026 2025 U.S. GAAP cost of sales......................................................................... 2,300.3$ 2,249.2$ 4,660.1$ 4,342.3$ Deduct: Purchase accounting amortization and other related items......... (586.4) (597.8) (1,177.9) (1,181.3) Acquisition and divestiture-related costs........................................ (32.0) (26.4) (60.4) (38.6) Restructuring costs............................................................................ (26.9) (11.3) (76.7) (31.1) Share-based compensation expense.............................................. (0.8) (0.9) (1.8) (2.2) Other special items, including restructuring related costs........... (56.3) (59.1) (198.7) (100.7) Adjusted cost of sales........................................................................... 1,597.9$ 1,553.7$ 3,144.6$ 2,988.4$ Adjusted gross profit (a)....................................................................... 2,158.9$ 2,028.4$ 4,129.2$ 3,848.0$ Adjusted gross margin (a)..................................................................... 57% 57% 57% 56% Three Months Ended June 30, Six Months Ended June 30,
Page 34
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) SG&A 34 2026 2025 2026 2025 U.S. GAAP SG&A ................................................................................... 1,134.5$ 928.7$ 2,063.3$ 1,876.8$ Deduct: Acquisition and divestiture-related costs........................................ (18.1) (24.7) (50.1) (52.5) Restructuring costs............................................................................ (19.0) (14.0) (61.0) (86.3) Share-based compensation expense.............................................. (35.8) (33.9) (80.3) (85.6) Other special items and reclassifications....................................... (241.1) (30.1) (276.5) (47.7) Adjusted SG&A...................................................................................... 820.5$ 826.0$ 1,595.4$ 1,604.7$ Adjusted SG&A as % of total revenues................................................ 22% 23% 22% 23% Three Months Ended June 30, Six Months Ended June 30,
Page 35
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) R&D 35 2026 2025 2026 2025 U.S. GAAP R&D...................................................................................... 248.3$ 218.8$ 496.9$ 440.8$ Deduct: Acquisition and divestiture-related costs........................................ (1.1) (2.6) (3.1) (3.3) Restructuring costs............................................................................ (2.0) (1.4) (2.6) (2.2) Share-based compensation expense.............................................. (2.1) (2.2) (4.8) (4.5) Other special items........................................................................... (1.1) (1.4) (3.9) (2.1) Adjusted R&D........................................................................................ 242.0$ 211.2$ 482.5$ 428.7$ Adjusted R&D as % of total revenues.................................................. 6% 6% 7% 6% Three Months Ended June 30, Six Months Ended June 30,
Page 36
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Total Operating Expenses 36 2026 2025 2026 2025 U.S. GAAP total operating expenses.................................................... 1,450.2$ 1,099.9$ 2,687.1$ 5,143.3$ Add / (Deduct): Litigation settlements and other contingencies, net...................... (73.2) 47.6 (126.7) 121.1 R&D adjustments.............................................................................. (6.3) (7.6) (14.4) (12.1) SG&A adjustments ........................................................................... (314.0) (102.7) (467.9) (272.1) Impairment of goodwill adjustments.............................................. – – – (2,936.8) Adjusted total operating expenses...................................................... 1,056.7$ 1,037.2$ 2,078.1$ 2,043.4$ Adjusted earnings from operations (a)............................................... 1,102.2$ 991.2$ 2,051.1$ 1,804.6$ Three Months Ended June 30, Six Months Ended June 30, (a) U.S. GAAP earnings from operations is calculated as U.S. GAAP gross profit less U.S. GAAP total operating expenses. Adjusted earnings from operations is calculated as adjusted gross profit less adjusted total operating expenses.
Page 37
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Interest Expense 37 2026 2025 2026 2025 U.S. GAAP interest expense.................................................................. 120.7$ 116.6$ 240.8$ 232.1$ Add / (Deduct): Accretion of contingent consideration liability............................... (0.9) (1.2) (1.8) (2.4) Amortization of premiums and discounts on long-term debt...... 11.7 11.4 23.5 22.4 Other special items........................................................................... (0.7) (0.7) (1.4) (1.3) Adjusted interest expense.................................................................... 130.8$ 126.1$ 261.1$ 250.8$ Three Months Ended June 30, Six Months Ended June 30,
Page 38
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Other (Income) Expense, Net 38 2026 2025 2026 2025 U.S. GAAP other (income) expense, net.............................................. (50.4)$ 333.5$ (2.9)$ 432.8$ Add / (Deduct): Fair value adjustments on non-marketable equity investments.. – (284.0) – (399.8) Fair value adjustments on marketable equity investments.......... 56.3 – (8.6) – Loss on divestitures of businesses.................................................. – (43.8) (13.9) (80.7) Other items........................................................................................ (20.7) (20.5) (17.0) (6.1) Adjusted other income, net.................................................................. (14.8)$ (14.8)$ (42.4)$ (53.8)$ Three Months Ended June 30, Six Months Ended June 30,
Page 39
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s) Loss Before Income Taxes and Income Tax Provision (Benefit) 39 2026 2025 2026 2025 U.S. GAAP loss before income taxes................................................... (64.0)$ (217.1)$ (311.3)$ (3,314.1)$ Total pre-tax non-GAAP adjustments.................................................. 1,050.0 1,097.1 2,143.7 4,921.8 Adjusted earnings before income taxes............................................. 986.0$ 880.0$ 1,832.4$ 1,607.7$ U.S. GAAP income tax provision (benefit)........................................... 54.8$ (212.5)$ (368.9)$ (267.5)$ Adjusted tax expense............................................................................ 122.7 366.5 698.7 548.8 Adjusted income tax provision............................................................ 177.5$ 154.0$ 329.8$ 281.3$ Adjusted effective tax rate.................................................................... 18.0% 17.5% 18.0% 17.5% Three Months Ended June 30, Six Months Ended June 30,
Page 40
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow and Free Cash Flow Excluding Transaction-related and Restructuring-related Costs 40 2026 2025 2026 2025 U.S. GAAP net cash provided by operating activities............................................... 381.8$ 219.7$ 770.1$ 755.2$ Capital expenditures................................................................................................... (52.8) (52.9) (92.7) (95.5) Free cash flow.............................................................................................................. 329.0$ 166.8$ 677.4$ 659.7$ Transaction-related and restructuring-related costs................................................ 119.7 73.8 230.8 116.3 Free cash flow excluding transaction-related and restructuring-related costs..... 448.7$ 240.6$ 908.2$ 776.0$ Three Months Ended June 30, Six Months Ended June 30,
Page 41
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage – Debt to Adjusted EBITDA – Q2 2026 41 Long-term Gross Leverage Target The stated forward-looking non-GAAP financial measure of long-term gross leverage target range of 2.8x-3.2x is based on the ratio of (i) targeted notional gross debt and (ii) targeted adjusted EBITDA. However, the Company has not quantified future amounts to develop this target but has stated its goal to manage notional gross debt and adjusted EBITDA over time in order to generally maintain or reach the target. This target does not reflect Company guidance. Gross Leverage Ratio is the ratio of Viatris’ total debt at notional amounts at June 30, 2026 to the sum of Viatris’ adjusted EBITDA for the quarters ended September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026. Twelve Months Ended September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 June 30, 2026 Adjusted EBITDA........................................................................ 1,154.6$ 1,003.1$ 1,049.5$ 1,188.3$ 4,395.5$ Reported debt balances: Long-term debt, including current portion......................... 13,348.6 Short-term borrowings and other current obligations...... – Total............................................................................................ 13,348.6$ Add / (deduct): Net premiums on various debt issuances........................... (423.7) Deferred financing fees......................................................... 23.1 Total debt at notional amounts................................................ 12,948.0$ Gross debt to adjusted EBITDA................................................ 2.9 x Three Months Ended
Page 42
© 2026 Viatris Inc. All Rights Reserved. Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net (Loss) Earnings to EBITDA and Adjusted EBITDA – Last Twelve Months 42 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 U.S. GAAP net (loss) earnings..................................................................................... (128.2)$ (340.1)$ 176.4$ (118.8)$ Add / (deduct) adjustments: Income tax provision (benefit)................................................................................ 120.3 (2.9) (423.7) 54.8 Interest expense (a).................................................................................................. 119.6 119.6 120.1 120.7 Depreciation and amortization (b)......................................................................... 688.5 766.8 676.1 672.3 EBITDA.......................................................................................................................... 800.2$ 543.4$ 548.9$ 729.0$ Add / (deduct) adjustments: Share-based compensation expense..................................................................... 36.0 49.4 48.2 38.7 Litigation settlements and other contingencies, net............................................ 55.7 (3.1) 53.5 73.2 (Gain) loss on divestitures of businesses.............................................................. (1.6) 21.9 13.9 – Restructuring, acquisition and divestiture-related and other special items...... 264.3 391.5 385.0 347.4 Adjusted EBITDA.......................................................................................................... 1,154.6$ 1,003.1$ 1,049.5$ 1,188.3$ Three Months Ended (a) Includes amortization of premiums and discounts on long-term debt. (b) Includes purchase accounting related amortization.