Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q3 2024 Earnings Presentation
38 slides from Bausch + Lomb's earnings presentation, Oct 30, 2024
Slide 1: 3Q24 Financial Results
“Qs BAUSCH+LOME \\QSe 3Q24 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 also made certain assumptions regarding our 2024 full-year guidance with respect to expectations re
Slide 3: Q3 Highlights; Financial Results & Outlook; Growth Drivers
Q3 Highlights Financial Results & Outlook Growth Drivers 2
Slide 4: Solid Execution of Our Strategy
Solid Execution of Our Strategy Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation +19% CC1,2 (+10% organic2) Executing new product launches, Continuing steady stream of revenue growth vs 3Q23 strengthening leadership in dry eye launches in
Slide 5: Delivering on Our Roadmap to Accelerate Growth
1 Delivering on Our Roadmap to Accelerate Growth PHASE 1 PHASE 2 PHASE 3 • Grow revenue at or above market • Launch new products to fuel growth • Drive selling excellence across all • Build on broad-based sales execution businesses • Strengthen and optimize supply chain • Build industry-leading busi
Slide 6: Strong 3Q24 Performance Across All Segments
Strong 3Q24 Performance Across All Segments Delivered +19% Growth CC 3Q241 Growth Across All Segments Growth Across Franchises 3Q24 Segment 3Q24 Franchise B+L CC Revenue Growth1 CC Revenue Growth1 Reported Revenue / Growth2 +19% $49M $92M +8% +6% Vision Care 3Q revenue 3Q revenue 3Q23 3Q24 +79% +35%
Slide 7: Financial Results
Financial Results BAUSCH+LOMB 6
Slide 8: 3Q24 Revenue Drivers
3Q24 Revenue Drivers Vision Care Surgical Pharmaceuticals $1,196M 37% 24% 75% $1,007M $684M 51% $206M $306M 63% 25% 25% 3Q23 3Q24 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other 3Q24 Revenue Growth +19% Reported 3Q24 CONST ANT CURRENCY REVENUE GROWTH2 3Q24 Revenue G
Slide 9: 3Q24 Bausch + Lomb P&L (Non-GAAP)
3Q24 Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 3Q24 3Q23 Change Change2 Vision Care Revenue $684M $648M 6% 6% Surgical Revenue $206M $185M 11% 12% 3Q24 Highlights Pharmaceuticals Revenue $306M $174M 76% 76% Total Revenue $1,196M $1,007M 19% 19% Constant Currency Adj. Gr
Slide 10: 3Q24 Bausch + Lomb P&L (GAAP)
3Q24 Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 3Q24 3Q23 Change Change2 Vision Care Revenue $684M $648M 6% 6% Surgical Revenue $206M $185M 11% 12% Pharmaceuticals Revenue $306M $174M 76% 76% Total Revenue $1,196M $1,007M 19% 19% Gross Profit $660M $568M 16% 16% Gross Margin
Slide 11: Outlook
Outlook 10
Slide 12: Raising FY24 Revenue Guidance
Raising FY24 Revenue Guidance3 Prior Guidance Prior Guidance Prior Guidance Current Guidance (Feb. 2024) (May 2024) (July 2024) (Oct. 2024) FY24 Guidance $4.600B - $4.600B - $4.700B - $4.725B - Total Revenue $4.700B $4.700B $4.800B $4.825B 6 CC Revenue Growth ~12 – 14% ~13 – 15% ~16 – 18% ~16 – 18%
Slide 13: Growth Drivers
Growth Drivers 12
Slide 14: Executing Dry Eye Platform Strategy
1 Executing Dry Eye Platform Strategy OTC REVENUE2 R x R E V E N U E2 ~150K M I E B O PAT I E N T S 3 $93M $141M ~17K ECPs PRESCRIBING4 ~70% COMMERCIAL LIVES COVERED5 ~45% M E D I C A R E PA R T D 5 DTC LAUNCHED OCT 2024 1. For full product information, see www.bausch.com. 2. 3Q24 revenue. 13 3. IQV
Slide 15: Driving Market-Leading Growth in OTC Dry Eye
1 Driving Market-Leading Growth in OTC Dry Eye +35% 3Q24 Reported +19% 3Q24 Reported Revenue Growth Revenue Growth 14 14 1. For full product information, see www.bausch.com.
Slide 16: Building Leading Digital Capabilities
1 Building Leading Digital Capabilities Introducing of eye care 83% practitioners seek an innovative solution that will free staff time 2 of patients are See clearly, shop simply. 79% interested in a loyalty program that includes bundling and subscription savings 3 1. For full product information, s
Slide 17: Unlocking Broad-Based Surgical Growth
1 Unlocking Broad-Based Surgical Growth Implantables Equipment Consumables +13% +6% +14% 3Q24 CC Revenue Growth2 3Q24 CC Revenue Growth2 3Q24 CC Revenue Growth2 16 1. For full product information, see www.bausch.com. 2. Constant currency revenue as compared to 3Q23. This is a non-GAAP measure or rat
Slide 18: Bringing New Innovation to Market
1,2 Bringing New Innovation to Market enVista Envy INFUSE® Toric enVista Aspire PreserVision® Miebo AREDS 2 ScoutPro® Multifocal in U.S. Plus CoQ10 Lumify SVS launch in China NutriTears® Preservative IC-8® Apthera IOL Free 2023 2024 PreserVision® AREDS 2 Xiidra® with OCUSorb Biotrue® SeeLuma Hydrati
Slide 19: Q&A
Q&A Growing Revenue Building Selling Prioritizing At or Above & Operational Pipeline Market Excellence Innovation 18
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 / DESCRIPTION CATALYSTS TO WATCH PHARMA Miebo®2 Available in U.S., approved in Canada U.S. launched SURGICAL IOL Portfolio IC-8® Apthera Available in U.S., select markets in EU, Australia, New Zealand and Singapore U.S. la
Slide 22: Cash Flow and Balance Sheet Summary (3Q24)
Cash Flow and Balance Sheet Summary (3Q24) 3Q24 Cash flow from operations $154M Adj. Cash flow from operations (non-GAAP)1,2 $159M Depreciation $38M Stock Based Comp $24M Net Interest $96M CapEx $60M 21 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-G
Slide 23: Cash Flow and Balance Sheet Summary (YTD)
Cash Flow and Balance Sheet Summary (YTD) 1Q24-3Q24 Cash flow from operations $210M Adj. Cash flow from operations (non-GAAP)1,2 $231M Depreciation $110M Stock Based Comp $65M Net Interest $291M CapEx $199M 22 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information o
Slide 24: Top Revenues (Includes FX Impact)
Top 10 Revenues (Includes FX Impact) Rank Product / Franchise 3Q24 2Q24 1Q24 FY23 4Q23 3Q23 1 Surgical Consumables $106M $106M $105M $394M $104M $93M 2 Ocuvite® + PreserVision® $95M $112M $86M $409M $120M $104M 3 Xiidra® $92M $89M $79M $106M $106M - 4 SofLens® $60M $59M $57M $238M $59M $60M 5 Biotru
Slide 25: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care 3Q24 3Q23 Reported Change Change1 Contact Lens Revenue $253M $228M 11% 12% Consumer Revenue $431M $420M 3% 3% Total Revenue $684M $648M 6% 6% Constant Currency Surgical 3Q24 3Q23 Reported Change Change1 Implantables Revenue $49M $45M 9% 13% Equi
Slide 26: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 3Q24 2Q24 1Q24 4Q23 3Q23 Vision Care Contact Lens $253M $237M $230M $222M $228M Consumer $431M $460M $405M $440M $420M Total Revenue $684M $697M $635M $662M $648M Surgical Implantables $49M $51M $47M $48M $45M Equipment $51M $52M $45M $52M
Slide 27: YTD Bausch + Lomb P&L (Non-GAAP)
YTD Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 1Q24-3Q24 1Q23-3Q23 Change Change2 Vision Care Revenue $2,016M $1,881M 7% 9% Surgical Revenue $612M $563M 9% 10% Pharmaceuticals Revenue $883M $529M 67% 68% Total Revenue $3,511M $2,973M 18% 20% Adj. Gross Profit2 $2,201M $1
Slide 28: YTD Bausch + Lomb P&L (GAAP)
YTD Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 1Q24-3Q24 1Q23-2Q23 Change Change2 Vision Care Revenue $2,016M $1,881M 7% 9% Surgical Revenue $612M $563M 9% 10% Pharmaceuticals Revenue $883M $529M 67% 68% Total Revenue $3,511M $2,973M 18% 20% Gross Profit $1,915M $1,632M 17% 1
Slide 29: Non-GAAP Adjustments EPS Impact
Non-GAAP Adjustments EPS Impact ($M)2 Three Months Ended Nine Months Ended September 30 September 30 2024 2023 2024 2023 Income Earnings per Income Earnings per Income Earnings per Income Earnings per (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact Net inc
Slide 30: Reconciliation of Reported Operating Income to Adjusted EBITA
Reconciliation of Reported Operating Income to Adjusted EBITA (non-GAAP)1 ($M) 3Q 2024 YTD 2024 Gross Gross R&D Operating Gross Gross R&D Operating Profit Margin SG&A Expense Income Profit Margin SG&A Expense income 2024 GAAP $ 660 55.2% $ 511 $ 84 $ 43 $ 1,915 54.5% $ 1,550 $ 250 $ 75 Amortization
Slide 31: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Reported Net Income (Loss) to EBITDA (non-GAAP)1 and Adjusted EBITDA (non-GAAP)1 ($M) Three Months Ended Nine Months Ended September 30 September 30 2024 2023 2024 2023 Net income (loss) attributable to Bausch + Lomb Corporation $ 4 $ (84) $ (314) $ (206) Interest expense, net 96 7
Slide 32: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in September 30, 2024 September 30, 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Rev
Slide 33: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in September 30, 2024 September 30, 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Rev
Slide 34: Reconciliation of Reported Revenue to Organic Revenue
Reconciliation of Reported Revenue to Organic Revenue1 and Organic Revenue Growth1 ($M) Calculation of Organic Revenue for the Three Months Ended Change in Change in September 30, 2024 September 30, 2023 Reported Revenue Organic Revenue 1 Organic Organic Revenue as Changes in Revenue (Non- Revenue a
Slide 35: Non-GAAP Appendix
Non-GAAP Appendix Description of Non -GAAP Financial Measures and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles o
Slide 36: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITDA (non-GAAP) Adjustments (continued) Adjusted Net Income (non-GAAP) Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities taken to: (i) Adjusted net income (non-GAAP) is net income (loss) attributa
Slide 37: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin Adjusted SG&A Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative expenses (“SG&A expenses”)
Slide 38: Non-GAAP Appendix
Non-GAAP Appendix Adjusted Cash Flows from Operations/Adjusted Cash used in Operations current period reported revenues at their current period currency exchange rates and the current period reported revenues Adjusted cash flows from operations (non-GAAP)/Adjusted Cash used in Operations (non-GAAP)