Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Valeant Pharmaceuticals International — Q3 2017 Earnings Presentation
73 slides from Bausch Health Companies's earnings presentation, November 2017
Slide 1: Valeant Pharmaceuticals International, Inc. Financial Results
VALEANT Pharmaceuticals International, Inc. Y Financial X Results y
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information and statements, limited to, the risks and uncertainties discussed in the Company's most within the meaning of applicable securities laws (collectively, “forward - recent annual and quarterly reports and detailed from t
Slide 3: Non-GAAP Information
Non-GAAP Information Recent Assessment of Financial Performance Measures Recently, the Company’s management team undertook an evaluation of appropriate to better reflect the underlying business. For example, how it would measure the financial performance of the Company going commencing with the firs
Slide 4: Non-GAAP Information
Non-GAAP Information Use of Non-GAAP Generally To supplement the financial measures prepared in accordance with U.S. the GAAP equivalent for certain costs, such as amortization, that would generally accepted accounting principles (GAAP), the Company uses certain otherwise be treated as a non-GAAP ad
Slide 5: Opening Remarks & 3Q17 Progress Highlights; Agenda
Opening Remarks & 1. 3Q17 Progress Highlights 2. 3Q17 Financial Results 3. FY2017 Guidance 4. Segment Highlights & 2017 Catalysts 4
Slide 6: Tangible Progress Toward Turnaround
Tangible Progress Toward Turnaround O U R M I S S I O N : Improve people’s lives with our health care products. STABILIZE TURNAROUND TRANSFORM 2016 2017-2018 2018+ Hired new management team Strengthen balance sheet Become category leader Fixing Ortho Dermatologics Focus on leadership position Launch
Slide 7: Recent Progress
Recent Progress Execution Pipeline Advancements and Launches • Bausch + Lomb/International segment, representing ~57% • VYZULTA™ received FDA approval for the treatment of of Valeant’s revenue, generated organic revenue growth 1,2 patients with open-angle glaucoma or ocular hypertension of 6% compar
Slide 8: Recent Progress
Recent Progress Divestitures / Debt Reduction • As of Nov. 7, 2017, reduced total debt by approximately • Utilized cash from operations to repay $100 million of $6 billion since the end of the first quarter of 2016 amounts outstanding under our revolving credit facility, and, on Nov. 2, 2017, paid d
Slide 9: Addressing Legacy Challenges in Dermatology, Supply Chain and Legal
Addressing Legacy Challenges in Dermatology, Supply Chain and Legal Stabilizing Ortho Dermatologics and Advancing Resolving Legacy Legal Issues Dermatology Pipeline • Achieved dismissals and other positive outcomes in 21 • Launched SILIQ™ in July 2017 litigations and investigations relating to histo
Slide 10: Performance: Key 3Q17 Financial Highlights
Performance: Key 3Q17 Financial Highlights 3Q17 Revenue (% Organic Growth Y/Y) 1, 2 3Q17 Adj. EBITA (non-GAAP)2 ~77% of Valeant’s Total Revenue is Generated from the B+L/International Segment Bausch + $1,254M and the Salix Business $387M Lomb/International 6% Branded Rx $633M (7%) $357M +6% B+L/Inte
Slide 11: 3Q Financial Results
3Q 17 Financial Results Three Months Ended Favorable (Unfavorable) Constant 9.30.17 9.30.16 Reported Currency3 Revenues $2,219M $2,479M (10%) (10%) GAAP NI $1,301M ($1,218M) Adj. NI (non-GAAP) 1,2 $367M $543M (32%) (35%) ~350 Million Shares Outstanding GAAP EPS $3.69 ($3.49) GAAP CF from Operations
Slide 12: 3Q Segment Results Bausch + Lomb/International
3Q 17 Segment Results Bausch + Lomb/International Three Months Ended Favorable (Unfavorable) Constant Organic 9.30.17 9.30.16 Reported Currency 3 Change 1,4 Global Vision Care Revenue $208M $198M 5% 6% 8% Global Surgical Revenue 5 Global Consumer Revenue Global Ophtho Rx Revenue $161M $392M $149M $1
Slide 13: 3Q Segment Results Branded Rx
3Q 17 Segment Results Branded Rx Three Months Ended Favorable (Unfavorable) Constant Organic 9.30.17 9.30.16 Reported Currency 3 Change 1,4 Salix Revenue Ortho Dermatologics Revenue Dendreon Revenue $452M $148M $0M $437M $223M $77M 3% (34%) 3% (34%) 6% (34%) +6% Salix Organic Revenue Dentistry Reven
Slide 14: 3Q Segment Results U.S. Diversified Products
3Q 17 Segment Results U.S. Diversified Products Three Months Ended Favorable (Unfavorable) Constant Organic 9.30.17 9.30.16 Reported Currency 3 Change 1,4 As expected, the Neuro & Other Revenue $227M $321M (29%) (29%) (29%) decline in total segment revenue was Generics Revenue $82M $120M (32%) (32%)
Slide 15: 3Q Balance Sheet Summary
3Q 17 Balance Sheet Summary As of As of As of As of As of 9.30.17 6.30.17 3.31.17 12.31.16 9.30.16 As of Nov. 7, 2017, Cash, cash reduced total debt by equivalents, approximately $6 billion $1,969M $2,025M $1,210M $542M $659M and restricted cash since the end of the first quarter of 2016 Revolving $
Slide 16: Proforma Long-Term Debt Maturity Profile as of Nov. 7, 2017
Proforma Long-Term Debt Maturity Profile as of Nov. 7, 2017 1 Remainder 2024 2018 2019 2020 2021 2022 2023 Total of 2017 and beyond Debt $0 $0 $0 $4,365M $3,175M $6,552M $6,022M $6,262M $26,376M Maturities Mandatory $0 $0 $0 $0 $0 $0 $0 $0 $0 Amortization Total $0 $0 $0 $4,365M $3,175M $6,552M $6,02
Slide 17: 3Q Cash Flow Summary
3Q 17 Cash Flow Summary Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Generated $1,712 9.30.17 9.30.16 9.30.17 9.30.16 million in cash flow from operations for the Net (loss) income 1 $1,300M ($1,219M) $1,892M ($1,896M) nine months ending Sept. 30, 2017. In the third quar
Slide 18: Updated Full-Year 2017 Revenue and Adjusted EBITDA Guidance
Updated Full-Year 2017 Revenue and Adjusted EBITDA (non-GAAP)1 Guidance Prior Guidance Prior Guidance Current Guidance (May 2017) (August 2017) (November 2017)2 Total Revenues $8.90B - $9.10B $8.70B - $8.90B $8.65B - $8.80B Adjusted EBITDA (non-GAAP) 1 $3.60B - $3.75B $3.60B - $3.75B $3.60B - $3.75B
Slide 19: Full-Year 2017 Revenue and Adj. EBITDA Guidance Bridge
Full-Year 2017 Revenue and Adj. EBITDA (non-GAAP)1 Guidance Bridge 2017 Guidance Impact of Impact of Obagi 2017 Guidance LOE Upside as of August iNova Divestiture Divestiture as of November Revenue Revenue $8.70B to $8.65B – Approx. Approx. $8.90B Approx. ($65M) ($19M) +$36M $8.80B Maintains 2017 Ra
Slide 20: Delivering on Commitment to Simplify Operating Model and Reduce Debt
Delivering on Commitment to Simplify Operating Model and Reduce Debt Divestiture Date Closed Divestiture Date Closed Sprout Expect 4Q17 Euvipharm (Vietnam) Jan. 25, 2017 Obagi Expect 4Q17 Ruconest Dec. 7, 2016 iNova Sept. 29, 2017 Paragon Nov. 9, 2016 ~$3.8B Dendreon June 28, 2017 in total asset sal
Slide 21: Bausch + Lomb/International Update
Bausch + Lomb/International Update 3Q17 Revenues 2Q17 Revenues 1Q17 Revenues 4Q16 Revenues 3Q16 Revenues $1,254M $1,241M $1,150M $1,260M $1,243M 3Q17 Highlights Bausch + Lomb/International Organic Growth (Y/Y) 7% +6% Organic Revenue Increased revenues in the Middle East, Europe, Mexico and China 6%
Slide 22: Global Consumer / Vision Care Update
Global Consumer 1 / Vision Care Update Global Vision Care Business Organic 3Q17 Top U.S. Consumer Health Care Companies4 Revenue Growth 2,3 of 8% Y/Y 5.10% • International Markets • Growing lens care portfolio in Asia 2.50% • #1 vision care brand in China and outgrowing the category with five-year 0
Slide 23: VYZULTA FDA approval and glaucoma market opportunity
• FDA approved the NDA for VYZULTA™ • Glaucoma Market Opportunity 6 • First prostaglandin analog with one of its metabolites • Global glaucoma market represents approximately $6 being nitric oxide (NO) indicated for the reduction of billion intraocular pressure (IOP) in patients with • North America
Slide 24: Salix Update
Salix1 Update 3Q17 Revenues 2Q17 Revenues 1Q17 Revenues 4Q16 Revenues 3Q16 Revenues $452M $387M $302M $414M $437M PCP XIFAXAN® IBS-D NRx Share has Increased by Key Financial Highlights +1,300 Basis Points Since Magnifica Launch2 40% • 17% sequential revenue growth versus 2Q17 PCP Targets 34% 30% • 3
Slide 25: Ortho Dermatologics Update
Ortho Dermatologics 1 Update 3Q17 Revenues 2Q17 Revenues 1Q17 Revenues 4Q16 Revenues 3Q16 Revenues $148M $130M $192M $214M $223M Advancing Dermatology Pipeline and New Product Launches 2017 Actions Taken While Reinvigorating Existing Portfolio • Submitted IDP-121 for acne to the FDA and preparing FD
Slide 26: IDP-118 FDA Acceptance
IDP-118 IDP-118 FDA Acceptance Ph 2 - Investigator’s Global Assessment (IGA) at each Study Visit (Moderate to Severe Plaque Psoriasis)1 • FDA accepted NDA for IDP-118, an investigational topical treatment for plaque psoriasis 60% IDP-118 HP TAZ Vehicle • PDUFA action date is June 18, 2018 52.5% • If
Slide 27: New Product Approvals Will Drive Long-Term Growth
New Product Approvals Will Drive Long-Term Growth Vitesse™ Thermage FLX™ +$100M in expected annualized revenues in 20171 Stellaris Elite™ 26 1. Revenue to be realized in CY17; however, timing of product launches are not confined to CY17.
Slide 28: Making Progress in Innovation
Making Progress in Innovation enVista® Trifocal (Intraocular Lens) Submit IDE – H2 R&D Update New Material (Ophthalmic Viscosurgical Device); Initiated • Lower than expected R&D investment as we IDE study – 4Q17 rotate investment back into the core businesses Loteprednol Gel 0.38% (Ocular Inflammati
Slide 29: Delivering on Our Commitments
Delivering on Our Commitments Actions That Will Drive Long-Term Shareholder Returns Commitment Outcome Bausch + Lomb/International segment and Salix Improving Operational and business, which together represent approximately 77% Commercial Excellence of the business, continue to consistently delive
Slide 30: Appendix
Appendix
Slide 31: Key Product LOE / Divestiture 2017 Impact – Forecast
Key Product LOE / Divestiture 2017 Impact – Forecast Business Product Line with Actual or LOE/Divested Rev/Profit LOE/Divested Rev/Profit Current vs Prior Estimate Unit Anticipated LOE/Divestiture Date1 Prior Estimate (August) Current Estimate Favorable/(Unfavorable) Revenue Profit Revenue Profit Re
Slide 32: Key Product LOE / Divestiture 2017 Impact – Y/Y
Key Product LOE / Divestiture 2017 Impact – Y/Y Business Product Line with Actual or LOE/Divested Rev/Profit LOE/Divested Rev/Profit Change Unit Anticipated LOE/Divestiture Date1 2016A 2017E 2017E vs 2016A Revenue Profit Revenue Profit Revenue Profit • Lotemax® LOE 4Q17 (anticipated) Optho Rx $129M
Slide 33: Divestitures Included in 2017 Financials
Divestitures Included in 2017 Financials 1 Divestiture Date Closed Revenue EBITDA Obagi Expect 4Q17 ~$60M ~$20M iNova Sept. 29, 2017 ~$195M ~$100M Dendreon June 28, 2017 ~$165M ~$65M Skincare Brands (CeraVe, AcneFree and March 3, 2017 ~$35M ~$15M AMBI) Other2 Various ~$5M ~$0M TOTAL 1 ~$460M ~$200M
Slide 34: 3Q17 Other Financial Information
3Q17 Other Financial Information1 Three Months Ended Favorable (Unfavorable) Sept. 30, 2017 Sept. 30, 2016 Reported Constant Currency3 Cash Interest Expense $424M $437M 3% 3% Net Interest Expense1,2 $456M $435M (5%) (5%) Non-cash adjustments Depreciation1,2 $42M $43M 2% 2% Non-cash share-based Comp1
Slide 35: Other Financial Information for nine months ended Sept. 30, 2017
Other Financial Information1 for nine months ended Sept. 30, 2017 Nine Months Ended Favorable (Unfavorable) Sept. 30, 2017 Sept. 30, 2016 Reported Constant Currency3 Cash Interest Expense $1,292M $1,280M (1%) (1%) Net Interest Expense1,2 $1,383M $1,274M (9%) (8%) Non-cash adjustments Depreciation1,2
Slide 36: Non-GAAP Adjustments EPS Impact (Quarter-to-Date)
Non-GAAP Adjustments EPS Impact (Quarter-to-Date) Quarter Ended Quarter Ended September 30, 2017 September 30, 2016 Income Earnings Per Income Earnings Per $ in millions, except per share impact (Expense) Share Impact (Expense) Share Impact Net Income GAAP $ 1,301 $ 3.69 $ (1,218) $ (3.49) Acquisiti
Slide 37: Non-GAAP Adjustments EPS Impact (Year-to-Date)
Non-GAAP Adjustments EPS Impact (Year-to-Date) Year to Date Ended Year to Date Ended September 30, 2017 September 30, 2016 Income Earnings Per Income Earnings Per $ in millions, except per share impact (Expense) Share Impact (Expense) Share Impact Net Income GAAP $ 1,891 $ 5.38 $ (1,894) $ (5.47) Ac
Slide 38: 3Q17 Top Products – B+L / International
3Q17 Top 10 Products – B+L / International Top 10 products by revenues, trailing five quarters Rank Product 3Q17 2Q17 1Q17 4Q16 3Q16 1 SofLens® $83M $76M $69M $79M $79M 2 Ocuvite® + PreserVision® $73M $71M $58M $70M $66M 3 renu® $57M $55M $51M $55M $60M 4 PureVision® $37M $31M $31M $37M $35M Biotrue
Slide 39: 3Q17 Top Products – Branded Rx
3Q17 Top 10 Products – Branded Rx Top 10 products by revenues, trailing five quarters Rank Product 3Q17 2Q17 1Q17 4Q16 3Q16 1 XIFAXAN® $286M $233M $185M $251M $273M 2 GLUMETZA® $46M $37M $23M $24M $24M 3 APRISO® $42M $39M $29M $39M $38M 4 UCERIS®1 $37M $37M $29M $45M $41M 5 RETIN-A® Franchise $27M $
Slide 40: 3Q17 Top Products – U.S. Diversified Products
3Q17 Top 10 Products – U.S. Diversified Products Top 10 products by revenues, trailing five quarters Rank Product 3Q17 2Q17 1Q17 4Q16 3Q16 1 WELLBUTRIN® $61M $58M $49M $67M $65M 2 XENAZINE® US $28M $32M $29M $33M $35M 3 ISUPREL® $23M $33M $38M $42M $30M 4 CUPRIMINE® $20M $20M $20M $22M $29M 5 SYPRIN
Slide 41: Bausch + Lomb / Int'l Segment Trailing Five Quarters
Bausch + Lomb / Int’l Segment Trailing Five Quarters1 Bausch + Lomb / 3Q17 2Q17 1Q17 4Q16 3Q16 International Global Vision Care Revenue $208M $187M $170M $178M $198M Global Surgical Revenue4 $161M $175M $154M $177M $155M Global Consumer Revenue $392M $379M $375M $397M $401M Global Ophtho Rx Revenue
Slide 42: Branded Rx Segment Trailing Five Quarters
Branded Rx Segment Trailing Five Quarters1 Brand Rx 3Q17 2Q17 1Q17 4Q16 3Q16 Salix Revenue $452M $387M $302M $414M $437M Dermatology Revenue $148M $130M $192M $214M $223M Dendreon Revenue $0M $83M $81M $77M $77M Dentistry Revenue $32M $35M $28M $39M $29M All Other Revenue $1M $1M $1M $1M $0M Segment
Slide 43: U.S. Diversified Products Segment Trailing Five Quarters
U.S. Diversified Products Segment Trailing Five Quarters1 Diversified Products 3Q17 2Q17 1Q17 4Q16 3Q16 Neuro & Other Revenue $227M $248M $243M $276M $321M Generics Revenue $82M $82M $85M $93M $120M Solta Revenue $7M $9M $8M $9M $8M Obagi Revenue $16M $16M $17M $17M $17M Other Revenue $0M $1M $2M $3
Slide 44: Selected U.S. Businesses Pipeline Inventory Trending (Quarter-to-Date)
Selected U.S. Businesses Pipeline Inventory Trending (Quarter-to-Date) Months on Hand Relative Change Sept. As of As of Change As of As of Change Business Units Change 30, 2017 vs June 30, 2016 Sept 30, 2016 3Q16 June 30, 2017 Sept 30, 2017 3Q17 3Q17 vs 3Q16 Sept. 30, 2016 Derm 1.52 1.70 0.18 1.33 1
Slide 45: Selected U.S. Businesses Pipeline Inventory Trending (Year-to-Date)
Selected U.S. Businesses Pipeline Inventory Trending (Year-to-Date) Months on Hand Change Sept. Relative As of As of Change As of As of Change 30, 2017 vs Business Units Change Dec. 31, 2015 Sept 30, 2016 YTD16 Dec. 31, 2016 Sept 30, 2017 YTD17 Sept. 30, 17 vs 16 2016 Derm 0.99 1.70 0.71 1.34 1.38 0
Slide 46: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation YTD 2017 Operating Total Gross Total Gross Selling, A&P R&D Operating Income Profit Margin Expense G&A Expense Expense Expense (EBITA) YTD 2017 GAAP $ 4,660 71% $ 1,421 $ 522 $ 271 $ 2,214 $ 424 Acquisition-related contingent consid
Slide 47: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation YTD 2017 B&L / International Operating Segment Segment Selling, A&P R&D Operating Operating Margin/ EBITA Gross Profit Gross Margin Expense G&A Expense Expense Expense Income (EBITA) Margin YTD 2017 GAAP $ 2,229 61% $ 932 $ 145 $ 55
Slide 48: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation YTD 2017 Branded Rx Operating Segment Segment Selling, A&P R&D Operating Operating Margin/ EBITA Gross Profit Gross Margin Expense G&A Expense Expense Expense Income (EBITA) Margin YTD 2017 GAAP $ 1,566 84% $ 415 $ 82 $ 45 $ 542 $ 1
Slide 49: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation YTD 2017 US Diversified Operating Segment Segment Selling, A&P R&D Operating Operating Margin/ EBITA Gross Profit Gross Margin Expense G&A Expense Expense Expense Income (EBITA) Margin YTD 2017 GAAP $ 865 83% $ 74 $ 30 $ 4 $ 108 $ 7
Slide 50: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation Q3 2017 Total Total Selling, Operating Gross Gross A&P G&A R&D Operating Income/ Profit Margin Expense Expense Expense Expense EBITA GAAP $ 1,561 70% $ 465 $ 159 $ 81 $ 705 $ 38 Acquisition-related contingent consideration - 0% - -
Slide 51: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation Qtr 3 2017 Qtr 2 2017 B&L / International B&L / International Segment Selling, Operating Segment Selling, Operating Operating Segment Gross A&P G&A R&D Operating Operating Margin/ EBITA Segment Gross A&P G&A R&D Operating Income/ Ma
Slide 52: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation Qtr 3 2017 Qtr 2 2017 Branded Rx Branded Rx Operating Operating Operating Segment Segment Selling, A&P G&A R&D Operating Operating Margin/ EBITA Segment Segment Selling, A&P G&A R&D Operating Income/ Margin/ EBITA Gross Profit Gross
Slide 53: Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation
Financial Summary – Adjusted (non-GAAP) Presentation Reconciliation Qtr 3 2017 Qtr 2 2017 US Diversified US Diversified Segment Selling, Operating Operating Segment Selling, Operating Operating Segment Gross A&P G&A R&D Operating Income/ Margin/ Segment Gross A&P G&A R&D Operating Income/ Margin/ Gr
Slide 54: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (Quarter-to-Date)
Reconciliation of reported Net Income (Loss) to EBITDA and Adjusted EBITDA ($M) (Quarter-to-Date) Adjusted EBITDA (non-GAAP) Three Months Ended September 30, 2017 2016 Net (loss) income attributable to Valeant Pharmaceuticals International, Inc. $ 1,301 $ (1,218) Interest expense, net 456 467 Recove
Slide 55: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (Year-to-Date)
Reconciliation of reported Net Income (Loss) to EBITDA and Adjusted EBITDA ($M) (Year-to-Date) Adjusted EBITDA (non-GAAP) Nine Months Ended September 30, 2017 2016 Net (loss) income attributable to Valeant Pharmaceuticals International, Inc. $ 1,891 $ (1,894) Interest expense, net 1,383 1,363 Recove
Slide 56: Reconciliation of reported Growth to Organic Growth (Quarter-to-Date)
Reconciliation of reported Growth to Organic Growth ($M) (Quarter-to-Date) As reported For the Three Months Ended September 30, (4) 2017 (3) excluding Currency currency (6) Organic Growth (1) (2) impact impact (5) Divestitures / 4/(2-6) Q3 2017 Q3 2016 (a) (b) % Change Discontinuations (c) Global Vi
Slide 57: Reconciliation of reported Growth to Organic Growth (Year-to-Date)
Reconciliation of reported Growth to Organic Growth ($M) (Year- to-Date) As reported For the Nine Months Ended September 30, (4) 2017 (3) excluding Currency currency (6) Organic Growth (1) (2) impact impact (5) Divestitures / 4/(2-6) 2017 2016 (a) (b) % Change Discontinuations (c) Global Vision Care
Slide 58: Reconciliation of TTM adjusted EBITDA
Reconciliation of TTM adjusted EBITDA ($M) Adjusted EBITDA (non-GAAP) TTM TTM TTM TTM TTM Sep-17 Jun-17 Mar-17 Dec-16 Sep-16 Net (loss) income attributable to Valeant Pharmaceuticals International, Inc. $ 1,376 $ (1,143) $ (1,407) $ (2,409) $ (2,279) Interest expense, net 1,848 1,859 1,873 1,828 1,7
Slide 59: Year-to-Date Financial Results
Year-to-Date Financial Results Nine Months Ended Favorable (Unfavorable) Sept. 30, 2017 Sept. 30, 2016 Reported Constant Currency3 Revenues $6,561M $7,271M (10%) (8%) GAAP NI $1,891M ($1,894M) GAAP Diluted EPS $5.38 ($5.47) GAAP CF from Operations $1,712M $1,575M 9% Adj. Gross Profit (non-GAAP)1,2 $
Slide 60: Year-to-Date Segment Results – Bausch + Lomb / International
Year-to-Date Segment Results – Bausch + Lomb / International Nine Months Ended Favorable (Unfavorable) Sept. 30, 2017 Sept. 30, 2016 Reported Constant Currency3 Global Vision Care $565M $565M 0% 1% Global Surgical4 $490M $495M (1%) 0% Global Consumer $1,147M $1,180M (3%) (4%) Global Ophtho Rx $459M
Slide 61: Year-to-Date Segment Results – Branded Rx
Year-to-Date Segment Results – Branded Rx Nine Months Ended Favorable (Unfavorable) Sept. 30, 2017 Sept. 30, 2016 Reported Constant Currency3 Salix Revenue $1,141M $1,117M 2% 2% Dermatology Revenue $470M $626M (25%) (25%) Dendreon Revenue $164M $226M (27%) (27%) Dentistry Revenue $95M $113M (16%) (1
Slide 62: Year-to-Date Segment Results – U.S. Diversified
Year-to-Date Segment Results – U.S. Diversified Nine Months Ended Favorable (Unfavorable) Sept. 30, 2017 Sept. 30, 2016 Reported Constant Currency3 Neuro & Other Revenue $718M $1,087M (34%) (34%) Generics Revenue $249M $362M (31%) (31%) Solta Revenue $24M $20M 20% 20% Obagi Revenue $49M $41M 20% 20%
Slide 63: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Description of Non-GAAP Financial Measures Adjusted EBITDA (non-GAAP) Adjusted EBITDA (non-GAAP) To supplement the financial measures prepared in accordance Adjusted EBITDA (non-GAAP) is GAAP net income (its most Adjusted EBITDA (non-GAAP)
Slide 64: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Adjusted EBITDA reflect adjustments based on such costs (and their impact) are truly representative of the Adjusted EBITDA (non-GAAP)) underlying business. In each case, by excluding these expenses the following items: from its non-GAAP me
Slide 65: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Share-based Compensation: The Company excludes the impact professional fees incurred in connection with recent legal and Adjusted EBITDA (non-GAAP)) of costs relating to share-based compensation. The Company governmental proceedings, inves
Slide 66: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Finally, to the extent not already adjusted for above, Adjusted Adjusted EBITDA (non-GAAP)) EBITDA (non-GAAP) reflects adjustments for interest, taxes, depreciation and amortization (EBITDA represents earnings before Adjusted EBITDA (non-G
Slide 67: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Adjusted EBITA/Adjusted EBITA Margin/Adjusted measures no longer include adjustments for Depreciation resulting Adjusted EBITDA (non-GAAP) from a PP&E step-up resulting from acquisitions and Previously Operating Income accelerated vesting
Slide 68: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Adjusted Gross Profit/Adjusted Gross Margin Adjusted Selling, A&P/Adjusted G&A/Adjusted Adjusted EBITDA (non-GAAP) SG&A Management uses these non-GAAP measures (the most directly Adjusted EBITDA (non-GAAP) comparable GAAP financial measure
Slide 69: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Adjusted R&D periods presented. Adjusted EBITDA (non-GAAP) Adjusted Net Income (Loss) (non-GAAP) Management uses this non-GAAP measure (the most directly Adjusted EBITDA (non-GAAP) comparable GAAP financial measure for which is research an
Slide 70: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Adjusted net income (non-GAAP) reflects adjustments based on the period to period. As a result, the type and amount of the restructuring, Adjusted EBITDA (non-GAAP) following items: integration and deal costs have also varied significantly
Slide 71: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures Acquired in-process research and development costs: The events arise outside of the ordinary course of continuing Adjusted EBITDA (non-GAAP) Company has excluded expenses associated with acquired in- operations. Given the unique nature of
Slide 72: Non-GAAP Appendix: Description of Non-GAAP Financial Measures
Non-GAAP Appendix Description of Non-GAAP Financial Measures As indicated above, in addition to identifying new primary Organic Growth / Organic Change Adjusted EBITDA (non-GAAP) financial performance measures, the Company also assessed the methodology with which it was calculating these non-GAAP Or
Slide 73: Constant Currency Appendix
Constant Currency Appendix Description of Non-GAAP Financial Measures Constant Currency Adjusted EBITDA (non-GAAP) Changes in the relative values of non-US currencies to the US Adjusted EBITDA (non-GAAP) dollar may affect the Company’s financial results and financial Adjustments position. To assist
Valeant Pharmaceuticals International — Q3 2017 Earnings Presentation on 6ix