Bausch Health Companies Inc. · TSX:BHC

Bausch Health Companies — Valeant Pharmaceuticals International — FY2014 Earnings Presentation

18 slides from Bausch Health Companies's earnings presentation, Jan 7, 2014

  1. Slide 1: 2014 Financial Guidance Conference Call

    2014 Financial Guidance Conference Call January 7, 2014

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements Forward-looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding preliminary results and guidance with respect to expected revenues, non-GAAP cash earnings per share, adju

  3. Slide 3: Agenda

    Agenda  2013 Review – J. Michael Pearson  2014 Priorities – Howard Schiller  2014 Financial Guidance  Other Updates – J. Michael Pearson  New 2014 Strategic Initiatives 2

  4. Slide 4: Previous Q4 Guidance Unchanged

    Previous Q4 Guidance Unchanged  Fourth Quarter 2013 Guidance  Revenue expected to be >$2.0 billion  Cash EPS expected to be between $2.05 - $2.10  Adjusted cash flows from operations expected to be greater than $625 million  Organic growth, unadjusted, is positive in the fourth quarter, both sa

  5. Slide 5: 2013 Full Year Performance

    2013 Full Year Performance 2012 2013 Growth As Reported Guidance Revenue $3.4 billion* $5.7 - $5.9 billion ~60% - 65% Cash EPS $4.14* $6.11 - $6.16 ~35% - 37% Adjusted Cash Flow from $1.2 billion* >$1.8 billion ~50% Operations * Excludes $66 M from divestiture of IDP-111 generic Efudex and $45M Reti

  6. Slide 6: 2013 Highlights

    2013 Highlights  Operations:  Added another significant Specialty platform – Eye Health  Achieved nearly $2.0 billion sales in Emerging Markets  Significantly expanded our aesthetic business in U.S. & Canada  MVP Program  Completed plant consolidations in Brazil, Mexico and Canada  Returned U

  7. Slide 7: 2013 Highlights (continued)

    2013 Highlights (continued)  Strengthened Senior Management Team:  Dr. Ari Kellen - Company Group Chairman  Laizer Kornwasser - Company Group Chairman  Dan Wechsler – Company Group Chairman  Tom Appio, GM, North Asia  Muhittin Bilgutay – GM Turkey, MENA  Andy Chang – Sales & Marketing, Surgic

  8. Slide 8: 2013 Achievements

    2013 Achievements Average Growth Y/Y Growth 2009 - 2012 2013 Revenue 65% 64% Cash EPS 30% 36% Total Shareholder Return 64% 96% 7

  9. Slide 9: Agenda

    Agenda  2013 Review – J. Michael Pearson  2014 Priorities – Howard Schiller  2014 Financial Guidance  Other Updates – J. Michael Pearson  New 2014 Strategic Initiatives 8

  10. Slide 10: 2014 Priorities

    2014 Priorities  Continue Strong Organic Growth  All business units are expected to have positive growth in 2014  Business units expected to grow double digit in 2014  Aesthetics  Asia  Consumer  Central and Eastern Europe  Contact Lens  Latin America  Neurology & Other  Middle East / N.

  11. Slide 11: 2014 Expected Product Launches

    2014 Expected Product Launches Product Business Description Estimated Launch Date Unit Bensal Derm Rx Topical treatment for the inflammation and irritation Q1 associated with many forms of dermatitis CeraVe Baby Line Consumer OTC Moisturizer Q1 Luzu Derm Rx Topical antifungal approved for tinea crur

  12. Slide 12: 2014 Priorities (continued)

    2014 Priorities (continued)  Complete Bausch + Lomb Integration  Achieve >$850 million run rate synergies by year end  Synergy capture to accelerate 2H 2014 due to heavy R&D spend 1H and European Workers’ Council process  Maintain double digit organic growth  Launch Key Products  Continue and/

  13. Slide 13: 2014 Guidance Assumptions

    2014 Guidance Assumptions  Exchange rates are based on current spot rates  Planned impact from generics to be >$200m in revenues vs. 2013 to hurt organic growth, particularly Q1 and Q2  Atralin, Lotemax suspension, Retin A Micro, Vanos, Wellbutrin XL (Canada), Zovirax,  ~$50m negative total reve

  14. Slide 14: 2014 Guidance Assumptions (continued)

    2014 Guidance Assumptions (continued)  Cash EPS expected to be 40% / 60% 1H vs. 2H  Q1 expected to be lowest quarter; Q4 expected to be highest quarter  Completion of late stage R&D programs  ~$200m spend expected in 1H out of $300m total 2014 R&D spend  Expected synergy capture of >$850 millio

  15. Slide 15: Financial Guidance for 2014

    Financial Guidance for 2014 2014 % over 2013 Revenue $8.2 - $8.6 billion ~40% Cash EPS $8.25 - $8.75 ~40% Adjusted Cash Flow from Operations $2.4 - $2.6 billion ~40% See Note 1 regarding guidance 14

  16. Slide 16: Agenda

    Agenda  2012 Review – J. Michael Pearson  2014 Priorities – Howard Schiller  2014 Financial Guidance  Other Updates – J. Michael Pearson  New 2014 Strategic Initiatives 15

  17. Slide 17: New 2014 Strategic Initiatives

    New 2014 Strategic Initiatives 1. Achieve Bausch + Lomb annual run-rate synergies of greater than $900 million. 2. Successfully launch key new products – Bensal, Jublia, Luzu, Neotensil, PeroxiClear, Zeus. 3. Build out high priority businesses in Middle East, Russia/CIS, and South East Asia. 4. Redu

  18. Slide 18: 2014 Financial Guidance Conference Call

    2014 Financial Guidance Conference Call January 7, 2014

Valeant Pharmaceuticals International — FY2014 Earnings Presentation on 6ix