Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q1 2023 Earnings Presentation
34 slides from Bausch + Lomb's earnings presentation, May 3, 2023
Slide 1: 1Q23 Financial Results
BAUSCH+LOMB 1Q23 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 otherwise, interest rates, foreign currency rates, and the positional effect of such factors on rev
Slide 3: 1Q23 Highlights & Financial Results, Outlook, Upcoming Catalysts
1Q23 Highlights & Financial Results Outlook Upcoming Catalysts 2
Slide 4: Eye Health Industry Today: Growing and Sustainable
Eye Health Industry Today: Growing and Sustainable Large and addressable growing market driven by demographic trends and lifestyle changes Eye health market forecasted to grow mid-single digits1 Favorable competitive environment with significant barriers to entry Evolving unmet patient and customer
Slide 5: Bausch + Lomb: Starting with a Solid Foundation
Bausch + Lomb: Starting with a Solid Foundation1 STRONG, CONSISTENT PERFORMANCE BROAD, DIVERSE HIGH BRAND COMMERCIAL AWARENESS2,3 PLATFORM with and loyal access points across customer base entire eye care spectrum GLOBAL Resilient company INFRASTRUCTURE with 170-YEAR presence in ~100 countries HERIT
Slide 6: Roadmap to Accelerate Growth
Roadmap to Accelerate Growth1 PHASE 1 PHASE 2 PHASE 3 Accelerate Growth Innovate & Execute Best-in-class Global Eye Health Rewire Company for Optimal Performance Company T O D AY 5 1. See Slide 1 for further information on forward-looking statements.
Slide 7: Phase 1: Rewire Company for Optimal Performance
Phase 1: Rewire Company for Optimal Performance1 PHASE 1 PHASE 2 PHASE 3 • Grow revenue at or above market Accelerate Growth • Drive selling excellence across all businesses • Build industry-leading business development platform • Cultivate leading digital capabilities in marketing, R&D, manufacturi
Slide 8: 1Q23 Company Highlights
1Q23 Company Highlights Bausch + Lomb Continued Strong Revenue Growth Across All Three Segments 1Q23 vs. 1Q22 Ophthalmic Vision Care2 Surgical 1Q23 Reported Pharmaceuticals2 5% Revenue Growth 8% 1Q23 Constant Currency Revenue Growth1 39% 24% 59% $587M 52% $183M $161M Ophthalmic 41% Pharmaceuticals 6
Slide 9: 1Q23 Revenue Drivers
1Q23 Revenue Drivers • Lumify® (+23% reported revenue growth) Total Company Revenue • Daily SiHy (+38% reported revenue growth) Millions USD Vision Care • Bausch + Lomb ULTRA® (+16% reported revenue growth; +18% constant currency1) +8% • Biotrue® ONEday (+6% reported revenue growth; +8% constant cur
Slide 10: Total Bausch + Lomb P&L (Non-GAAP)
Total Bausch + Lomb P&L1 (Non-GAAP)2 Constant Currency Bausch + Lomb 1Q23 1Q226 Reported Change Change2 Vision Care Revenue5 $587M $560M 5% 8% Surgical Revenue $183M $174M 5% 9% Ophthalmic Pharmaceuticals Revenue5 $161M $155M 4% 7% 1Q22 results were not fully Total Revenue $931M $889M 5% 8% burdened
Slide 11: Total Bausch + Lomb P&L (GAAP)
Total Bausch + Lomb P&L1 (GAAP) Constant Currency Bausch + Lomb 1Q23 1Q225 Reported Change Change2 Vision Care Revenue4 $587M $560M 5% 8% Surgical Revenue $183M $174M 5% 9% Ophthalmic Pharmaceuticals Revenue4 $161M $155M 4% 7% Total Revenue $931M $889M 5% 8% Gross Profit $502M $476M 5% 9% Gross Marg
Slide 12: Outlook
Outlook 11
Slide 13: Full-Year 2023 Revenue and Adjusted EBITDA Guidance
Full-Year 2023 Revenue and Adjusted EBITDA (non-GAAP)1 Guidance3 Current Guidance Revenue (May 2023) 5-6% constant currency growth1 expected for FY23 Total Revenues $3.90B - $3.95B FY23 FX headwinds expected to Adjusted EBITDA (non-GAAP)1 $700M - $750M be ~$50M Current Guidance $3.975B revenue at mi
Slide 14: Upcoming Catalysts
Upcoming Catalysts 13
Slide 15: Building a Global Dynamic Dry Eye Disease Platform
Building a Global Dynamic Dry Eye Disease Platform Dry Eye It is estimated that more than 16M patients in the U.S. are diagnosed with Dry Eye Disease1 >35 countries launched Expanding the Biotrue® Mega Brand 10+ line extensions Total Revenue for Global Dry Eye Platform4: ~$250M Our Next Catalyst: NO
Slide 16: Lumify Franchise Extending Market Leadership
Lumify® Franchise Extending Market Leadership Expanding Franchise into New Geographies and Adjacent Categories5 $125M+ Revenue Franchise1 Acquired rights to market in 18 additional countries4 LUMIFY® Eye Illuminations ~50% launching this year Market Share LUMIFY® PF & Allergy Symptom Control6 in Red
Slide 17: PreserVision + Ocuvite: Largest Bausch + Lomb Franchise
PreserVision® + Ocuvite®: Largest Bausch + Lomb Franchise and Expanding4 Strong Global Footprint with Market Leading Share Over $350M in Grow Franchise Through Innovative New Products and Category Expansion Reported Revenue1 +90% Share of AREDS Category2 ~70% of households with moderate to advanced
Slide 18: Surgical: Building a Premium Portfolio
Surgical: Building a Premium Portfolio Expanding Premium IOL Offerings1 Today Lux Premium IOL Expansion LuxSmart™(EDOF) IC-8® Apthera™ LuxLife™(Trifocal) Key Brands enVista Envy™(Trifocal) enVista Aspire™(Extended Range Monofocal) enVista Beyond™(EDOF) Entering into New Categories Consumables MIMS®
Slide 19: Roadmap to Accelerate Growth
Roadmap to Accelerate Growth1 PHASE 1 PHASE 2 PHASE 3 Accelerate Growth Innovate & Execute Best-in-class Global Eye Health Rewire Company for Optimal Performance Company T O D AY 18 1. See Slide1 for further information on forward-looking statements.
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 Upcoming Milestone Planned launch of SVS into more countries in SiHy Daily Launched in ~25 countries 2023; Multi-focal and toric launch expected in 2023-2024 Preservative Free submission expected 2Q23 Lumify® Expansion Opp
Slide 22: Cash Flow and Balance Sheet Summary
Cash Flow and Balance Sheet Summary 1Q23 Cash flow used in operations ($56M) Adj. Cash flow used in operations (non-GAAP)1,2 ($24M) Depreciation $34M Stock Based Comp $24M Interest $47M CapEx $37M 21 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP
Slide 23: Top 10 Revenues (Includes FX Impact)
Top 10 Revenues (Includes FX Impact) Rank Product/Franchises 1Q23 FY22 4Q22 3Q22 2Q22 1Q22 1 Surgical Consumables1 $95M $359M $94M $85M $93M $87M 2 Ocuvite® + PreserVision® $81M $387M $114M $98M $94M $81M 3 SofLens® $60M $246M $62M $62M $61M $61M 4 Biotrue® ONEday $52M $201M $50M $53M $49M $49M 5 Ba
Slide 24: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care3 1Q23 1Q22 Reported Change Change %1 Contact Lens Revenue $226M $215M 5% 10% Consumer Revenue $361M $345M 5% 8% Total Revenue $587M $560M 5% 8% Constant Currency Surgical2 1Q23 1Q22 Reported Change Change %1 Implantables Revenue $44M $45M (2%) 2
Slide 25: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 1Q23 4Q22 3Q22 2Q22 1Q22 Vision Care2 Contact Lens $226M $219M $222M $213M $215M Consumer $361M $407M $376M $376M $345M Total Revenue $587M $626M $598M $589M $560M Surgical1 Implantables $44M $49M $45M $49M $45M Equipment $44M $45M $42M $42
Slide 26: Non-GAAP Adjustments EPS Impact
Non-GAAP Adjustments EPS Impact ($M)2,3 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and Non-GAAP Appendix for further information on non-GAAP measures and ratios. 25 2. Except per share amounts 3. On a proforma basis after giving effect to the IPO.
Slide 27: Reconciliation of Reported Operating Loss/Income to Adjusted EBITA
Reconciliation of Reported Operating Loss/Income to Adjusted EBITA (non- GAAP)1 ($M) 26 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and Non-GAAP Appendix for further information on non-GAAP measures and ratios.
Slide 28: Reconciliation of Reported Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Reported Net (Loss) Income to EBITDA (non-GAAP)1 and Adjusted EBITDA (non-GAAP)1 ($M) 27 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and Non-GAAP Appendix for further information on non-GAAP measures and ratios.
Slide 29: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and Non-GAAP Appendix for further information on non-GAAP measures and ratios. 2. Effective in the first quarter of 2023, certain p
Slide 30: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and Non-GAAP Appendix for further information on non-GAAP measures and ratios. 2. Effective in the first quarter of 2023, certain p
Slide 31: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures operating performance. Although the Company excludes impairments of intangible assets from measuring the performance of the To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles Comp
Slide 32: 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 as described below: taken to: (i) separate the Bausch + Lomb business from the remainder of BHC and (ii) r
Slide 33: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin which are a non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions, which Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude
Slide 34: Non-GAAP Appendix
Non-GAAP Appendix Adjusted SG&A part of its guidance. Management believes adjusted cash flows from operations (non-GAAP)/Adjusted Cash used by Operations Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative expenses (“SG&A expenses”) (its most (non-GAAP) is a useful measu