A Transparent Look into Elanco's Business

Our first Investor Day in the books. As a company, we stand at an inflection point positioned for accelerated long-term value creation for shareholders and society. We are excited to introduce the new Elanco and provide a detailed look into the company we are building. Here are a few top takeaways:

1. We introduced a long-term growth algorithm highlighting top line growth of an average of 3-4% annually and increased profitability with adjusted double digit EBITDA growth, increasing free cashflow and de-levering driving double digit EPS growth. And as we rebound from 2020, we expect total topline revenue of $4.52 billion to $4.60 billion.

2. Our three-pronged strategy – Innovation, Portfolio, and Productivity is strengthened and expanded. Shown below with the key drivers for each prong, it remains our foundation for sustained growth and profitability.

3. Innovation driving revenue starts in 2021 with not 5, but 8 new launches contributing $80-$100 million in their first year.

4. Our expanded leadership team brings an important blend of experience and capabilities critical to lead and grow this company. These leaders will get us closer to the customer and accelerate our shift toward more consumer and brand-centricity.

5. We will operate with industry leading transparency, simplified reporting, expanded and strengthened Board oversight and governance in 2021 and beyond.

Yes, there is a lot of change and a lot of new information, but one thing hasn’t changed: Elanco’s value proposition remains the most significant in our industry. With the addition of Bayer, our value creation opportunity is more material and more durable than when we launched in September 2018. That’s what excites me about Elanco today – along with our tenacious, resilient people driven by their passion to serve our customers – the farmers, veterinarians and pet owners.