Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q1 2024 Earnings Presentation
44 slides from Bausch Health Companies's earnings presentation, May 2, 2024
Slide 1: Earnings 1Q 2024
EARNINGS 1Q 2024 M AY 2 , 2 0 2 4
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward-looking statements”), including, but not limited to, statements relating to Bausch Health Companies Inc.’s (“Bausch Health” or th
Slide 3: Non-GAAP Information
Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures and non-GAAP ratios to provide supplemental information to readers. Management uses these non-GAAP measur
Slide 4: Agenda
Agenda Business Update 1Q 2024 Financial Results 2024 Guidance 2024 Priorities Bausch Health Earnings 1Q 2024 4
Slide 5: Business Update
BUSINESS UPDATE Bausch Health Earnings 1Q 2024 5
Slide 6: Bausch Health (excl. B+L) Key Updates
Bausch Health (excl. B+L) Key Updates1 SOLID BUSINESS PERFORMANCE IN 1Q 2024 • 1Q net revenue of $1.05 billion, up 4% on a reported basis and 5% on an organic2 basis • Fourth consecutive quarter of revenue and Adjusted EBITDA2 growth • Reaffirmed 2024 guidance STRONG R&D PROGRESS • Amiselimod: • Met
Slide 7: Strategic Alternatives Progress
Strategic Alternatives Progress1 Ongoing Areas of Focus 1Q Developments Focus on investing in key assets and businesses to drive Xifaxan® Appeal decision represents a significant profitable growth milestone related to full separation of B+L Continue BHC (excluding B+L) de-levering Debt reduced by ~
Slide 8: Executing Against Our Objectives
Executing Against Our Objectives International: Salix: Solta Medical: Diversified: Promoted Portfolio Investing for Growth Driving Growth Sustaining Margins Focus Continued investment in Growth in promoted brand Building on momentum and Managing the portfolio Xifaxan® franchise; growth in portfolios
Slide 9: R&D Pipeline
R&D Pipeline1 Key Clinical Programs Phase 1 Phase 2 Phase 3 Approval/Launch Notes DERMATOLOGY CABTREO® U.S. commercial launch 1Q 2024 First triple combination New Drug Submission was submitted to Health Canada on product for the treatment of May 30, 2023 acne vulgaris SALIX RED-C Enrollment of both
Slide 10: 1Q 2024 Financial Results
1Q 2024 FINANCIAL RESULTS Bausch Health Earnings 1Q 2024 10
Slide 11: 1Q24 Revenue
Consolidated 1Q24 Revenue in millions USD Revenue Change vs 1Q23 Consolidated (excl. B+L) $2,153 18% $1,944 25% 48% $1,054 8% $1,099 58% 24% 19% 1Q24 1Q23 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 11% Organic1: 8% Reported: 4% Organic1: 5% Reported:
Slide 12: Salix – 1Q24
Unconsolidated Salix – 1Q24 in millions USD Segment Mix Revenue vs. 1Q23 Key Items 5% 9% Total – Reported: 1% Organic1: 2% • Growth driven by Xifaxan® and Relistor® Product Revenue TRx2 • Xifaxan® TRx growth for 1Q over the prior year, led by strong growth for $499 Xifaxan® 8% 3% IBS-D and the long-
Slide 13: International – 1Q24
Unconsolidated International – 1Q24 in millions USD Segment Mix Revenue vs. 1Q23 Key Items • EMEA – growth in promoted products Total – Reported: 7% Organic1: 2% offset by pressure from competition in 23% non-promoted products Region Reported Organic1 • LATAM – growth in private channel $265 49% EME
Slide 14: Solta Medical – 1Q24
Unconsolidated Solta Medical – 1Q24 in millions USD Segment Mix Key Items Total – Reported: 21% Organic1: 23% 18% • Continued strong demand, particularly in Asia-Pacific (including China) • US returned to growth, delivering double- $88 digit revenue growth over 1Q 2023 • Durable, profitable business
Slide 15: Diversified – 1Q24
Unconsolidated Diversified – 1Q24 in millions USD Segment Mix Revenue vs. 1Q23 Key Items • Neurology – Wellbutrin® and Aplenzin® 12% Total – Reported: 3% Organic1: 6% revenue growth despite volume declines; continued benefit of competitor 12% Business Reported Organic1 supply shortages $202 51% Neur
Slide 16: 1Q24 Bausch + Lomb Revenue
Unconsolidated 1Q24 Bausch + Lomb Revenue in millions USD Vision Care Surgical Pharmaceuticals $1,099 $931 Bausch Health (excl. B+L) 23% Debt 74% 64% $635 $197 53% Total: $16.6B2 $267 36% • Restricted: $15.6B 24% • Unrestricted: $1B3 26% 1Q24 1Q23 Consumer Contact Lens Implantables Equipment Consuma
Slide 17: 1Q24 GAAP Financial Results
Consolidated 1Q24 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) March 31, 2024 March 31, 2023 Reported Revenues $2,153 $1,944 11% GAAP Gross Profit $1,238 $1,076 15% GAAP Gross Margin 57.5% 55.3% 220 bps Selling, A&P $565 $479 (18)% GAA
Slide 18: 1Q24 Non-GAAP Financial Results
Consolidated 1Q24 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) March 31, 2024 March 31, 2023 Reported Constant Currency1 Revenues $2,153 $1,944 11% 11% Adj. Gross Profit1,2 $1,533 $1,362 13% 13% Adj. Gross Margin 1 71.2% 70.1% 110bps Selling, A&P (Sa
Slide 19: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD As of 3.31.2024 As of 12.31.2023 As of 12.31.2022 Cash and cash equivalents1 $755 $962 $591 Revolving Credit Facilities $300 5 $275 5 $470 AR Credit Facility $325 $350 $- Senior Secured Debt (principal amount)2 $15,165 $15,203 $13,300 Senior Unsecur
Slide 20: Long-Term Debt Maturity Profile
Consolidated Long-Term Debt Maturity Profile In millions USD As of March 31, 20241 $M Total 2024 2025 2026 2027 2028 2029 2030 2031 Restricted Revolver - - - - - - - - - Term Loan $1,937 - - - $1,937 - - - - Secured Notes $6,906 - $1,680 - $1,500 $3,374 - $352 - Unsecured Notes $5,552 - $840 $602 $6
Slide 21: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1 Bausch Health As of 1Q 2024, in millions USD (excl. B+L) Debt Total: $16.1B1 $5,000 $999 Restricted: $14.8B Unrestricted: $1.3B2 $4,000 $616 $643 Reduced debt by: $3,000 $1,500 ~$300M in 1Q24 $840 $2,000 $3,374 $1,000 $1,680 $1,937 $1,6
Slide 22: 2024 Guidance
2024 GUIDANCE Bausch Health Earnings 1Q 2024 22
Slide 23: Confirming Full Year 2024 Guidance
Confirming Full Year 2024 Guidance1,2 All amounts are approximate and in USD 2024 Guidance1,2 BHC B+L BHC excl. B+L Net Revenue $9.30B - $9.55B $4.60B - $4.70B $4.70B - $4.85B Organic Growth 2% - 5% Adjusted EBITDA (non-GAAP)1,4 $3.20B - $3.35B $840M - $890M $2.36B - $2.46B Adjusted Operating Cash F
Slide 24: 2024 Priorities
2024 PRIORITIES Bausch Health Earnings 1Q 2024 24
Slide 25: 2024 Priorities
2024 Priorities1 PEOPLE GROWTH EFFICIENCY INNOVATION UNLOCKING VALUE Drive results- Deliver on Revenue, Execute with Intensify focus Continue to oriented culture of Adjusted EBITDA 2 operational excellence and operating evaluate strategic accountability and Adjusted and a cost-focused rigor behind R
Slide 26: Bausch Health
BAUSCH Health
Slide 27: Appendix
APPENDIX Bausch Health Earnings 1Q 2024 27
Slide 28: 1Q24 Revenue Performance
Consolidated 1Q24 Revenue Performance Amounts in millions USD 1Q24 1Q23 Reported Organic1 Salix $499 $496 1% 2% International $265 $247 7% 2% Solta Medical $88 $73 21% 23% Total: $16.6B2 Neurology $103 $102 1% 1% • Restricted: $15.6B Dermatology $50 $43 16% 25%• Unrestricted: $1B3 Generics $25 $27 (
Slide 29: Inventory in Select U.S. Businesses (QTD)
Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Months on Hand Business As of As of Change As of As of Change Units Dec 31, 2022 Mar 31, 2023 1Q23 Dec 31, 2023 Mar 31, 2024 1Q24 Dermatology 1.07 1.08 0.01 1.04 1.20 0.16 Neurology 1.17 1.15 (0.02) Solta 1.18 1.21 0.03 Medical Salix 1.02 0.9
Slide 30: 1Q24 Segment Profit
Unconsolidated 1Q24 Segment Profit1 In millions USD 1Q24 Salix International Solta Medical Diversified Total Segment Revenue $499 $265 $88 $202 $1,054 Segment Profit1 $329 $87 $40 $114 $570 1Q23 Salix International Solta Medical Diversified Total Segment Revenue $496 $247 $73 $197 $1,013 Segment Pro
Slide 31: 1Q24 Other Financial Information
Consolidated 1Q24 Other Financial Information In millions USD unless otherwise indicated Three Months Ended Favorable (Unfavorable) Constant Mar 31, 2024 Mar 31, 2023 Reported Currency2 Cash Interest Paid1 $358 $408 12% 12% Net Interest Expense (GAAP) $346 $301 (15)% (15)% Non-cash adjustments Depre
Slide 32: 1Q24 Non-GAAP Adjustments EPS Impact
Consolidated 1Q24 Non-GAAP Adjustments EPS Impact In millions USD unless otherwise indicated Three Months Ended Mar 31, 2024 Mar 31, 2023 Income EPS Income EPS (Expense) Impact2 (Expense) Impact2 Net loss $(77) $(0.21) $(209) $(0.58) Non-GAAP adjustments:1 Amortization of intangible assets 274 0.74
Slide 33: Reconciliation of Operating Income to Adjusted EBITA
Consolidated 1Q24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated 1Q24 1Q23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit Mar
Slide 34: Reconciliation of Net Loss to EBITDA and Adj. EBITDA
Consolidated 1Q24 Reconciliation of Reported Net Loss to EBITDA1 and Adj. EBITDA1 In millions USD unless otherwise indicated Three months ended Mar 31, 2024 2023 Net loss $(77) $(209) Interest expense, net 346 301 Provision for income taxes 8 73 Depreciation and amortization 320 319 EBITDA 597 484 A
Slide 35: Reconciliation of Reported Revenue to Organic Revenue
Consolidated 1Q24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Three Months Ended Change in Change in Reported Organic March 31, 2024 March 31, 2023 Revenue Revenue1 Changes Organic Divestitures Organic Revenue in
Slide 36: Reconciliation of Operating Cash to Adjusted Cash Flows
Consolidated 1Q24 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (Non-GAAP)1 In millions USD Three Months Ended March 31, 2024 2023 Cash provided by operating activities $211 $154 Payments of legacy legal settlements, net of insurance proceeds
Slide 37: Reconciliation of Operating Cash to Adjusted Cash Flows
Consolidated 1Q24 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (non-GAAP)1 In millions USD Three Months Ended March 31, 2024 Bausch Health Bausch Health Companies Inc. B+L (excl. B+L) 2 Cash provided by operating activities $211 $41 $171 Pay
Slide 38: Trailing Twelve Months Adjusted EBITDA
Consolidated Trailing Twelve Months Adjusted EBITDA1 In millions USD Trailing Twelve Months Ended Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Net Loss $(479) $(611) $(974) $(189) $(355) Interest expense, net 1,347 1,302 1,247 1,296 1,391 Provision for income taxes 156 221 234 214 172 Depreciation and amortiz
Slide 39: Reconciliation of Reported Net Loss to Adj. EBITDA
Consolidated Reconciliation of Reported Net Loss to Adj. EBITDA1 In millions Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) 3 Companies Inc. Corporation (ex
Slide 40: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures advisory costs, 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 Bausch
Slide 41: Non-GAAP Appendix
Non-GAAP Appendix • Separation costs and separation-related costs: The Company has excluded certain costs incurred in and amortization of intangible assets and acquisition-related costs and adjustments excluding amortization of connection with activities regarding the separation of the eye-health bu
Slide 42: Non-GAAP Appendix
Non-GAAP Appendix Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, • Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non- forecasting future results and evaluating current performance. This
Slide 43: Non-GAAP Appendix
Non-GAAP Appendix Adjusted 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 44: Non-GAAP Appendix
Non-GAAP Appendix Constant Currency Adjusted Cash Flows 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) is
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