Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q3 2024 Earnings Presentation
51 slides from Bausch Health Companies's earnings presentation, Oct 30, 2024
Slide 1: 3Q 2024 Earnings
3Q 2024 EARNINGS OCTOBER 30, 2024 1
Slide 2: Forward-Looking Statements; Non-GAAP Information
Forward-Looking Statements; Non-GAAP Information Forw ard-Looking Statements This presentation contains forward-looking information and statements, within the Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted meaning of applicable securitie
Slide 3: Agenda
Agenda Business Update 3Q 2024 Financial Results 2024 Guidance 2024 Priorities 3
Slide 4: Business Update
BAUSCH Health BUSINESS UPDATE
Slide 5: 3Q 2024 Bausch Health (excl. B+L) Financial Highlights
3Q 2024 Bausch Health (excl. B+L) Financial Highlights • Revenue & Adjusted EBITDA1 grew 7% and 9%, respectively • All segments grew Revenue & Segment Profit2 • Solta Revenue & Segment Profit2 up +35% and 61%, respectively • Adjusted Operating Cash Flow 1 at $343M, up ~75% vs. 3Q 2023 • Net Debt dow
Slide 6: 2024 Strategic Priorities
2024 Strategic Priorities1 GROWTH INNOVATION EFFICIENCY Expanding Inspiring Driving growth across innovation and operational segments and UNLOCKING PEOPLE technological efficiency and geographies advancement execution VALUE ENRICHING LIVES THROUGH OUR RELENTLESS DRIVE TO DELIVER BETTER HEALTH OUTCOM
Slide 7: 3Q 2024 Financial Results
3Q 2024 FINANCIAL RESULTS 7
Slide 8: 3Q 2024 GAAP Financial Results
Consolidated 3Q 2024 GAAP Financial Results Amounts in millions USD, except EPS amounts Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) September 30, 2024 September 30, 2023 Reported Revenues $2,510 $2,238 12% GAAP Gross Profit $1,540 $1,358 13% GAAP Gross Marg
Slide 9: 3Q 2024 Non-GAAP Financial Results
Consolidated 3Q 2024 Non-GAAP1 Financial Results Amounts in millions USD Amounts in millions USD Three Months Ended Favorable (Unfavorable) September 30, 2024 September 30, 2023 Reported Constant Currency1 Revenues $2,510 $2,238 12% 13% Adj. Gross Profit1 $1,835 $1,617 13% 14% Adj. Gross Margin1 73.
Slide 10: 3Q 2024 Revenue
Consolidated 3Q 2024 Revenue in millions USD Consolidated (excl. B+L) REVENUE VS 3Q23 17% $2,510 22% $2,238 49% $1,314 9% 57% $1,196 26% 20% Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals 3Q24 3Q23 Reported: 12% Organic 1: 9% Reported: 7% Organic 1: 8% Reported: 1
Slide 11: Salix – 3Q 2024
Unconsolidated Salix – 3Q 2024 in millions USD SEGMENT MIX REVENUE VS. 3Q23 HIGHLIGHTS Total – Reported: 5% Organic1: 5% 9% 6% Product Revenue TRx2 • Xifaxan® NRx3 up 4% 2% • Relistor® & Trulance® Revenue up 9% 7% 3% $642 • Rest of marketed products largely flat 9% (2%) 83% Xifaxan Relistor Trulance
Slide 12: International – 3Q 2024
Unconsolidated International – 3Q 2024 in millions USD SEGMENT MIX REVENUE VS. 3Q23 HIGHLIGHTS Total – Reported: 6% Organic1: 8% • Canada growth fueled by Wellbutrin® 30% • EMEA – Serbia up 31%2 & Russia up 15%2 Region Reported Organic1 46% $291 Canada 10% 16% • LATAM – Mexico private channel up
Slide 13: Solta Medical – 3Q 2024
Unconsolidated Solta Medical – 3Q 2024 in millions USD GEOGRAPHIC MIX PRODUCT MIX HIGHLIGHTS 13% Total – Reported: 35% Organic1: 36% 25% 6% • China +58%2, fueled by Thermage® FLX $112 $112 • Korea +133%2 from consumer demand 75% • Clear + Brilliant® Touch now in 3rd APAC 81% market Consumables Conso
Slide 14: Diversified – 3Q 2024
Unconsolidated Diversified – 3Q 2024 in millions USD SEGMENT MIX REVENUE VS. 3Q23 HIGHLIGHTS Total – Reported: 4% Organic1: 7% • Neurology – Wellbutrin® Sales up 22% 23% Business Reported Organic1 • Dermatology – CABTREO® on track Neurology 25% 25% $269 6% Dermatology 0% 3% • Generics – Optimizing p
Slide 15: Bausch + Lomb – 3Q 2024
Unconsolidated Bausch + Lomb – 3Q 2024 in millions USD Vision Care Surgical Pharmaceuticals $1,196 $1,007 25% 75% 63% $684 $206 51% $306 37% 24% 25% 3Q24 3Q23 Consumer Contact Lens Implantables Equipment Consumables/Other U.S. International Reported: 19% Organic 1: 10% Reported: 6% Organic 1: 6% Rep
Slide 16: 3Q 2024 – Revenue & Segment Profit
Unconsolidated 3Q 2024 – Revenue & Segment Profit1 in millions USD Revenue 3Q 24 vs. 3Q 23 Segment Profit1 3Q 24 vs. 3Q 23 HIGHLIGHTS Salix $642 5% Salix $436 2% • Lower margin due to expense timing International 291 6% International 105 15% • Favorable product mix Diversified 269 4% Diversified 189
Slide 17: Bausch Health (excl. B+L) Debt
Unconsolidated Bausch Health (excl. B+L) Debt As of 3Q 2024, in millions USD 15,702 15,670 15,381 300 300 15,270 31 321 321 48 343 216 2,250 2,219 7,905 7,905 Total AR TL Secured Debt 5,247 5,247 Unsecured Debt 2Q24 Net Debt 2 2Q24 Cash 2Q24 Gross Debt 2 TL Repaym ent 3Q24 Gross 2Q24 Cash Adj. Opera
Slide 18: 2024 Guidance
2024 GUIDANCE 18
Slide 19: Updating Full Year 2024 Guidance
Updating Full Year 2024 Guidance1,2 All amounts are approximate and in USD 2024 Guidance1,2 Prior BHC Current BHC Prior BHC Current BHC Prior B+L Current B+L excl. B+L excl. B+L Net Revenue $9.40B - $9.65B $9.500B - $9.675B $4.70B - $4.80B $4.725B - $4.825B $4.70B - $4.85B $4.775B - $4.850B Organic
Slide 20: Value Creation Framework
Value Creation Framework1 Increase Maximize the Optimize our Bausch Value of our Capital Health BLCO Asset Structure Enterprise Value WORKING ALL LEVERS OF VALUE CREATION 1. See Slide 2 for further information on forward-looking statements. Bausch Health Earnings 3Q 2024 20
Slide 21: 2024 Priorities
BAUSCH: Health 2024 PRIORITIES
Slide 22: 2024 Strategic Priorities
2024 Strategic Priorities1 UNLOCKING PEOPLE GROWTH INNOVATION EFFICIENCY VALUE Drive results- Deliver on Intensify focus Execute with Continue to oriented Revenue, and operating operational evaluate culture of Adjusted rigor behind excellence and strategic accountability EBITDA2 and R&D and a cost-f
Slide 23: Key Takeaways
Key Takeaways Sixth Raising Delivering Working All Consecutive FY 2024 On Our Levers Of Quarter of Guidance1 Commitments Value Growth Creation OUR EXECUTION PROVIDES STRONG FOUNDATION FOR CONTINUED MOMENTUM ACROSS OUR BUSINESS 1. See Slide 2 for further information on forward-looking statements. Bau
Slide 24: Slide 24
Slide 25: Appendix
BAUSCE: Health APPENDIX
Slide 26: On Track With Our Key R&D Initiatives
On Track With Our Key R&D Initiatives1 Key Clinical Programs Phase 1 Phase 2 Phase 3 Approval/Launch Notes DERMATOLOGY CABTREO® Successful U.S. commercial launch in 1Q 2024 First triple combination Received approval in Canada in 3Q 2024 product for the treatment of acne vulgaris Launched in Canada i
Slide 27: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD Amounts in millions USD As of 9.30.2024 As of 12.31.2023 As of 12.31.2022 Cash and cash equivalents1 $750 $962 $591 Revolving Credit Facilities $3505 $2755 $470 AR Credit Facility $300 $350 $- Senior Secured Debt (principal amount)2 $15,112 $15,203
Slide 28: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1 As of 3Q 2024, in millions USD As of 3Q 2024, in millions USD Bausch Health $5,000 $999 (excl. B+L) Debt Total: $15.7B1 $4,000 $617 Restricted: $14.4B $643 Unrestricted: $1.3B2 $3,000 $1,500 Reduced debt by: $2,000 $535 $3,374 ~$30M in
Slide 29: 3Q & YTD24 Revenue Performance
Consolidated 3Q & YTD24 Revenue Performance Amounts in millions USD Amounts in millions USD 3Q24 3Q23 Reported Organic1 YTD24 YTD23 Reported Organic1 Salix $642 $614 5% 5% $1,699 $1,667 2% 3% International $291 $275 6% 8% $832 $781 7% 5% Solta Medical $112 $83 35% 36% $302 $244 24% 26% Neurology $17
Slide 30: YTD GAAP Financial Results
Consolidated YTD GAAP Financial Results Amounts in millions USD, except EPS amounts Amounts in millions USD, except EPS amounts Nine Months Ended Favorable (Unfavorable) September 30, 2024 September 30, 2023 Reported Revenues $7,066 $6,349 11% GAAP Gross Profit $4,187 $3,646 15% GAAP Gross Margin 59
Slide 31: YTD Non-GAAP Financial Results
Consolidated YTD Non-GAAP1 Financial Results Amounts in millions USD Amounts in millions USD Nine Months Ended Favorable (Unfavorable) September 30, 2024 September 30, 2023 Reported Constant Currency1 Revenues $7,066 $6,349 11% 12% Adj. Gross Profit1 $5,072 $4,497 13% 13% Adj. Gross Margin1 71.8% 70
Slide 32: Inventory in Select U.S. Businesses (QTD)
Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Business As of As of Change As of As of Change Units Jun 30, 2023 Sep 30, 2023 3Q23 Jun 30, 2024 Sep 30, 2024 3Q24 Dermatology 1.03 1.17 0.14 1.16 1.14 (0.02) Neurology 1.12 1.18 0.06 1.08 1.12 0.04 Salix 1.10 1.25 0.15 Solta 1.18 1.10 (0.08)
Slide 33: Inventory in Select U.S. Businesses (YTD)
Unconsolidated Inventory in Select U.S. Businesses (YTD)1 Business As of As of Change As of As of Change Units Dec 31, 2022 Sep 30, 2023 YTD23 Dec 31, 2023 Sep 30, 2024 YTD24 Dermatology 1.07 1.17 0.10 1.04 1.14 0.10 Neurology 1.17 1.18 0.01 1.18 1.12 (0.06) Salix 1.02 1.25 0.23 Solta 1.20 1.10 (0.1
Slide 34: Other Financial Information
Consolidated Other Financial Information In millions USD In millions USD unless otherwise indicated Three Months Ended Favorable (Unfavorable) Nine Months Ended Favorable (Unfavorable) September 30, September 30, Constant September 30, September 30, Constant 2024 2023 Reported Currency 1 2024 2023 R
Slide 35: Non-GAAP Adjustments EPS Impact
Consolidated Non-GAAP Adjustments EPS Impact In millions USD In millions USD unless otherwise indicated Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Income EPS Income EPS Income EPS Income EPS (Expense) Impact2 (Expense) Impact2 (Ex
Slide 36: 3Q24 Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated 3Q24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD In millions USD unless otherwise indicated 3Q24 3Q23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense I
Slide 37: YTD24 Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated YTD24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD In millions USD unless otherwise indicated YTD24 YTD23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expens
Slide 38: Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA
Consolidated Reconciliation of Reported Net Loss to EBITDA1 and Adjusted EBITDA1 In millions USD Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Net loss ($92) ($382) ($170) ($564) Interest expense, net 339 333 1,027 946 Provision for income taxes 71 56 128 181 D
Slide 39: 3Q24 Segment Profit Reconciliation to Adjusted EBITDA
Consolidated 3Q24 Segment Profit2 Reconciliation to Adjusted EBITDA1 In millions USD Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Revenue Segment Profit2 Segment Profit Margin Revenue Segment Profit2 Segment Profit Margin Salix $642 $436 68% $614 $429 70% International
Slide 40: YTD24 Segment Profit Reconciliation to Adjusted EBITDA
Consolidated YTD24 Segment Profit2 Reconciliation to Adjusted EBITDA1 In millions USD Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Revenue Segment Profit2 Segment Profit Margin Revenue Segment Profit2 Segment Profit Margin Salix $1,699 $1,142 67% $1,667 $1,129 68% Intern
Slide 41: 3Q24 Reconciliation of Reported Revenue to Organic Revenue
Consolidated 3Q24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD In millions USD unless otherwise indicated For Three Months Ended Change in Change in Reported Organic September 30, 2024 September 30, 2023 Revenue Revenue1 Changes Organic Divesti
Slide 42: YTD24 Reconciliation of Reported Revenue to Organic Revenue
Consolidated YTD24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD In millions USD unless otherwise indicated For Nine Months Ended Change in Change in Reported Organic September 30, 2024 September 30, 2023 Revenue Revenue1 Changes Organic Divesti
Slide 43: 3Q24 & YTD24 Reconciliation of Cash Provided by Operating Activities
Consolidated 3Q24 & YTD24 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (Non-GAAP)1 In millions USD In millions USD Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Cash provided by operating activities $40
Slide 44: 3Q24 & YTD24 Reconciliation of Cash Provided by Operating Activities (B+L split)
Consolidated 3Q24 & YTD24 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (non-GAAP)1 In millions USD In millions USD Three Months Ended Nine Months Ended September 30, 2024 September 30, 2024 Bausch Health Bausch Health Bausch Health Bausch He
Slide 45: Trailing Twelve Months Adjusted EBITDA
Consolidated Trailing Twelve Months Adjusted EBITDA1 In millions USD In millions USD Trailing Twelve Months Ended Sep-24 Jun-24 Mar-24 Dec-23 Sep-23 Net Loss ($217) ($507) ($479) ($611) ($974) Interest expense, net 1,383 1,377 1,347 1,302 1,247 Provision for income taxes 168 153 156 221 234 Deprecia
Slide 46: Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA
Consolidated Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA1 In millions USD In millions Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl.
Slide 47: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures advisory cost s, as well as certain severance-related costs (including the severance costs associated with the departure To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP of Bausc
Slide 48: Non-GAAP Appendix
Non-GAAP Appendix • Separation cos ts and separation-related c osts: The Company has excluded certain cost s incurred in related cost s and adjustments excluding amortization of intangible asset s, gain (loss) on extinguishment of debt, connection with activities regarding the separation of the eye-
Slide 49: Non-GAAP Appendix
Non-GAAP Appendix Histo rically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, • Acquisi tions, div estitures and disc onti nua tions : In order to present period-over-period organic revenue (non- foreca sting future re sult s and evaluating current perform
Slide 50: Non-GAAP Appendix
Non-GAAP Appendix Adj usted Gross Profit/Adjusted Segment Gross Profit and Adjusted Gross Margin/Adjusted Segment Gross Margin The Company believes that Adjusted SG&A (non-GAAP) and Adjusted G&A (non-GAAP) are useful to investors as they Adjusted gross profit (non-GAAP)/Adjusted segment gross profit
Slide 51: Non-GAAP Appendix
Non-GAAP Appendix Constant Currency Adj usted Cash Flow s from Operations excluding Bausch + Lomb (non-GAAP) Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP)
Bausch Health Companies — Q3 2024 Earnings Presentation on 6ix