Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q2 2024 Earnings Presentation
37 slides from Bausch + Lomb's earnings presentation, Jul 31, 2024
Slide 1: 2Q24 Financial Results
MY UG \ aS BAUSCH +LOMB SS : 2Q24 Financial Results
Slide 2: Forward-Looking Statements; Non-GAAP Information
Forward-Looking Statements; Non-GAAP Information This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward-looking rate dis-synergies and inflation, expectations regarding adjusted gross margin (non-GAAP), adjusted
Slide 3: Q2 Highlights, Financial Results & Outlook, Growth Drivers
Q2 Highlights Financial Results & Outlook Growth Drivers 2
Slide 4: Three Key Takeaways
Three Key Takeaways Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation +20% CC1 revenue growth vs 2Q23 Driving strong commercial Continuing steady stream of execution across all segments innovative product launches Continuing to deliver robu
Slide 5: Executing on our Roadmap to Accelerate Growth
1 Executing on our Roadmap to Accelerate Growth PHASE 1 PHASE 2 PHASE 3 • Grow revenue at or above market • Launch new products to fuel growth • Drive selling excellence across all • Build on broad-based sales execution businesses • Strengthen and optimize supply chain • Build industry-leading busin
Slide 6: Strong 2Q24 Performance Across All Segments
Strong 2Q24 Performance Across All Segments Delivered +20% Growth CC 2Q241 Growth Across All Segments Growth in All Key Franchises 2Q24 Segment 2Q24 Key Franchise B+L CC Revenue Growth1 CC Revenue Growth1 Reported Revenue Growth2 +20% 67% +12% +11% Vision Care 27% 2Q23 2Q24 monthly 21% B+L Reported
Slide 7: Financial Results
| BAUSCH LOMB S—— Financial Results
Slide 8: 2Q24 Revenue Drivers
2Q24 Revenue Drivers Vision Care Surgical Pharmaceuticals $1,216M 34% 24% 71% $1,035M $697M 51% $209M $310M 66% 29% 25% 2Q23 2Q24 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other 2Q24 Revenue Growth +17% Reported 2Q24 CONSTANT CURRENCY REVENUE GROWTH 1 2Q24 Revenue G
Slide 9: 2Q24 Bausch + Lomb P&L (Non-GAAP)
2Q24 Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 2Q24 2Q23 Change Change2 Vision Care Revenue $697M $646M 8% 11% Surgical Revenue $209M $195M 7% 9% 2Q24 Highlights Pharmaceuticals Revenue $310M $194M 60% 61% Total Revenue $1,216M $1,035M 17% 20% Constant Currency Adj. Gro
Slide 10: 2Q24 Bausch + Lomb P&L (GAAP)
2Q24 Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 2Q24 2Q23 Change Change2 Vision Care Revenue $697M $646M 8% 11% Surgical Revenue $209M $195M 7% 9% Pharmaceuticals Revenue $310M $194M 60% 61% Total Revenue $1,216M $1,035M 17% 20% Gross Profit $654M $562M 16% 19% Gross Margin 5
Slide 11: Outlook
Outlook 10
Slide 12: Raising FY24 Revenue and Adj. EBITDA Guidance
Raising FY24 Revenue and Adj. EBITDA Guidance3 Prior Guidance Prior Guidance Current Guidance (February 2024) (May 2024) (July 2024) FY24 Guidance Total Revenue $4.600B - $4.700B $4.600B - $4.700B $4.700B - $4.800B $4.7 - $4.8B Revenue5 CC Revenue ~12 – 14% ~13 – 15% ~16 – 18% Raising from $4.6 - $4
Slide 13: Growth Drivers
Growth Drivers 12
Slide 14: Strengthening Leadership in Dry Eye
Strengthening Leadership in Dry Eye 1 OTC PRODUCTS Rx PRODUCTS ~150M Of US Adults Experience Dry Eye Symptoms2 ~25M USE ~1.5M USE 3 4 OTC DROPS RX PRODUCTS ~$94M ~$131M 2Q24 REVENUE 2Q24 REVENUE 1. For full product information, see www.bausch.com. 2. Gallup mulit-sponsor surveys, 2022. 13 3. IRI pan
Slide 15: Driving Daily SiHy Growth & Expanding Portfolio
Driving Daily SiHy Growth & Expanding Portfolio INFUSE® for Astigmatism 1 LAUNCHED 2Q24 PUSH THE LIMITS OF STABILITY, +67% CLARITY & COMFORT D A I LY S I H Y P O R T F O L I O 2Q24 Revenue Growth2 14 1. For full product information, see www.bausch.com. 2. Reported revenue, as compared to 2Q23.
Slide 16: Growing Leading Eye Health Consumer Brands
Growing Leading Eye Health Consumer Brands 1 LUMIFY® Eye Vitamins1 OTC Dry Eye Portfolio1 +12% +8% +24% 2Q24 Revenue Growth2 2Q24 Revenue Growth2 2Q24 Revenue Growth2 15 1. For full product information, see www.bausch.com. 2. Reported revenue, as compared to 2Q23.
Slide 17: Expanding Premium IOL Portfolio
EXPANDING Refueling Growth PREMIUM IOL PORTFOLIO With Steady Stream of Innovation1,2 Next-generation full range of vision IOL Monofocal+ 4Q23 Premium lens designed FLOURISH Trifocal for all lighting conditions AT EVERY STEP 2H24 Achieve spectacle independence Trifocal 2025 EDOF 3 2026 1. See slide 1
Slide 18: Bringing New Innovation to Market
1,2 Bringing New Innovation to Market enVista Envy™ INFUSE® Toric enVista Aspire™ Miebo™ PreserVision® AREDS 2 Multifocal in U.S. Plus CoQ10 NutriTears® Lumify SVS launch in China Xiidra® Preservative IC-8® Apthera™ IOL Free 2023 2024 PreserVision® Lumify Eye AREDS 2 Illuminations with OCUSorb™ Biot
Slide 19: Q&A
Q&A Growing Revenue Building Selling Prioritizing At or Above & Operational Pipeline Market Excellence Innovation 18
Slide 20: Appendix
Appendix BAUSCH+LOMB
Slide 21: Early Stage Launches and Near-term Pipeline Products to Watch
Early Stage Launches and Near-term Pipeline Products to Watch1 PRODUCT STATUS / DESCRIPTION CATALYSTS TO WATCH PHARMA Miebo®2 Available in U.S., submitted in Canada 1Q23 U.S. launched, Canada filing ongoing SURGICAL IOL Portfolio IC-8® Apthera™ Available in U.S., select markets in EU, Australia, New
Slide 22: Cash Flow and Balance Sheet Summary (2Q24)
Cash Flow and Balance Sheet Summary (2Q24) 2Q24 Cash flow from operations $15M Adj. Cash flow from operations (non-GAAP)1,2 $24M Depreciation $36M Stock Based Comp $22M Net Interest $99M CapEx $72M 21 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAA
Slide 23: Cash Flow and Balance Sheet Summary (YTD)
Cash Flow and Balance Sheet Summary (YTD) 1Q24-2Q24 Cash flow from operations $56M Adj. Cash flow from operations (non-GAAP)1,2 $72M Depreciation $72M Stock Based Comp $41M Net Interest $195M CapEx $139M 22 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on n
Slide 24: Top Revenues (Includes FX Impact)
Top 10 Revenues (Includes FX Impact) Rank Product/Franchises 2Q24 1Q24 FY23 4Q23 3Q23 2Q23 1 Ocuvite® + PreserVision® $112M $86M $409M $120M $104M $104M 2 Surgical Consumables $106M $105M $394M $104M $93M $102M 3 Xiidra® $89M $79M $106M $106M - - 4 SofLens® $59M $57M $238M $59M $60M $59M 5 Surgical
Slide 25: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care 2Q24 2Q23 Reported Change Change1 Contact Lens Revenue $237M $215M 10% 14% Consumer Revenue $460M $431M 7% 9% Total Revenue $697M $646M 8% 11% Constant Currency Surgical 2Q24 2Q23 Reported Change Change1 Implantables Revenue $51M $47M 9% 9% Equi
Slide 26: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 2Q24 1Q24 4Q23 3Q23 2Q23 Vision Care Contact Lens $237M $230M $222M $228M $215M Consumer $460M $405M $440M $420M $431M Total Revenue $697M $635M $662M $648M $646M Surgical Implantables $51M $47M $48M $45M $47M Equipment $52M $45M $52M $47M
Slide 27: YTD Bausch + Lomb P&L (Non-GAAP)
YTD Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 1Q24-2Q24 1Q23-2Q23 Change Change2 Vision Care Revenue $1,332M $1,233M 8% 11% Surgical Revenue $406M $378M 7% 9% Pharmaceuticals Revenue $577M $355M 63% 64% Total Revenue $2,315M $1,966M 18% 20% Adj. Gross Profit2 $1,448M $1
Slide 28: YTD Bausch + Lomb P&L (GAAP)
YTD Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 1Q24-2Q24 1Q23-2Q23 Change Change2 Vision Care Revenue $1,332M $1,233M 8% 11% Surgical Revenue $406M $378M 7% 9% Pharmaceuticals Revenue $577M $355M 63% 64% Total Revenue $2,315M $1,966M 18% 20% Gross Profit $1,255M $1,064M 18% 2
Slide 29: Non-GAAP Adjustments EPS Impact
Non-GAAP Adjustments EPS Impact ($M)2 Three Months Ended Six Months Ended June 30 June 30 2024 2023 2024 2023 Income Earnings per Income Earnings per Income Earnings per Income Earnings per (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact Net loss attributa
Slide 30: Reconciliation of Reported Operating Income to Adjusted EBITA
Reconciliation of Reported Operating Income to Adjusted EBITA (non-GAAP)1 ($M) 2Q 2024 YTD 2024 Gross Gross R&D Operating Gross Gross R&D Operating Profit Margin SG&A Expense Income Profit Margin SG&A Expense income 2024 GAAP $ 654 53.8% $ 535 $ 84 $ 26 $ 1,255 54.2% $ 1,039 $ 166 $ 32 Amortization
Slide 31: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Reported Net (Loss) Income to EBITDA (non-GAAP)1 and Adjusted EBITDA (non-GAAP)1 ($M) Three Months Ended Six Months Ended June 30 June 30 2024 2023 2024 2023 Net loss attributable to Bausch + Lomb Corporation $ (151) $ (32) $ (318) $ (122) Interest expense, net 99 53 195 100 Provis
Slide 32: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in June 30, 2024 June 30, 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Revenue as Ch
Slide 33: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in June 30, 2024 June 30, 2023 Reported Revenue Constant Currency Revenue1 Constant Currency Revenue as Cha
Slide 34: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles op
Slide 35: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITDA (non-GAAP) Adjustments (continued) Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities taken to: (i) Adjusted Net Income (non-GAAP) separate the Bausch + Lomb business from the remainder of BHC
Slide 36: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin Adjusted SG&A Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative expenses (“SG&A expenses”)
Slide 37: Non-GAAP Appendix
Non-GAAP Appendix Adjusted Cash Flows from Operations/Adjusted Cash used in Operations current period reported revenues at their current period currency exchange rates and the current period reported revenues Adjusted cash flows from operations (non-GAAP)/Adjusted Cash used in Operations (non-GAAP)