Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Valeant Pharmaceuticals International — Q1 2012 Earnings Presentation
22 slides from Bausch Health Companies's earnings presentation, May 3, 2012
Slide 1: First Quarter 2012 Financial Results Conference Call
First Quarter 2012 Financial Results Conference Call May 3, 2012
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 the closing of pending transactions, expected revenue and synergies, product approvals and launches and fi
Slide 3: Agenda
Agenda 1. First Quarter Results 2. Emerging Market Overview 3. Specialty Pharmaceuticals Update 4. Finance Update 5. 2012 Guidance Update 2
Slide 4: Strong 1Q Earnings and Cash Generation Performance
Strong 1Q Earnings and Cash Generation Performance Q1 2012 Q1 2011* Q1 2012* vs 2011 Product Sales $500 M $768 M 54% Cash EPS $0.56 $0.99 77% Adjusted Cash Flow $204 M $255 M 25% *First quarter 2011 excludes $36 M from the out-license of Cloderm and first quarter of 2012 excludes $66 M from divestit
Slide 5: Strong Organic Growth
Strong Organic Growth First Quarter 2012 24% 22% Total Company Organic Growth 11% 12% -10% Organic Growth U.S U.S Neurology Canada/ Emerging Dermatology & Other Australia Markets 4
Slide 6: Deal Update
Deal Update Announced YTD 2012 Probiotica (Brazil) – Closed EyeTech (U.S.) – Closed Pele Nova (Brazil) – Closed Pedinol (U.S.) – Closed Natur Produkt (Russia) – (Expected to Close mid-year) Gerot Lannach (Russia) – Closed Atlantis (Mexico) – (Expected to Close 2Q12) AcneFree (U.S.)
Slide 7: Progress on 2012 Synergy Program
Progress on 2012 Synergy Program Run rate expected by Run rate Year-end expected by $230+ million* mid-year Run Rate May 3, 2012 $200 million Run Rate Feb 23, 2012 $165 million $135 million * Includes acquisitions announced and closed in 2012 6
Slide 8: Emerging Markets
Emerging Markets Total Run Rate >$1.2 billion (After deals closed) Latin America South East Asia/South Africa Central/Eastern Europe Mexico Philippines Poland Brazil Malaysia Russia Export Thailand Serbia ~$350M South Africa All Other Asia - Other ~$750M ~$100M Additional Updates: Europe – 76 new
Slide 9: Specialty Pharmaceuticals Update
Specialty Pharmaceuticals Update
Slide 10: US Neurology Performance
US Neurology Performance $48M $183M $135M Total (10)% All Other 6% Wellbutrin XL Cardizem CD Ultram ER (37)% Core Wellbutrin XL Total Neuro & Other Cardizem CD Ultram ER Q1 2012 Net Sales Q1 2012 vs. Q1 2011 9
Slide 11: Strong Continued Performance on Key Dermatology Growth Assets
Strong Continued Performance on Key Dermatology Growth Assets 2012 vs. 2011 Volume Growth (MAT) 70% 60% 50% 38% 37% 40% 28% 30% 20% 12% 10% 0% Acanya* Atralin Zovirax** CeraVe*** *Acanya impacted by unusually high March 2011 TRx volume **Zovirax volume in TRx grams ***CeraVe scan volume growth Sourc
Slide 12: Strong Dermatology Brand Performance Despite Weak Market Growth in March
Strong Dermatology Brand Performance Despite Weak Market Growth in March Growth 2012 vs. 2011 Market Q1 2012 March 2012 Topical Calcineurin Inhibitors 6.9% (0.2%) (Derm only) – e.g., Elidel Fixed Dose Acne Combo (BPO / Clindamycin) – e.g., (4.5%) (10.6%) Acanya Tretinoins – e.g., Atralin 5.6% (3.9%)
Slide 13: Other Portfolio Updates
Other Portfolio Updates Canada Product Launches Lodalis; Sublinox Generic competition for Cesamet U.S. Neuro & Other Potiga U.S. launch U.S. Dermatology IDP-108 Update 12
Slide 14: Financial Update
Financial Update Howard Schiller
Slide 15: Financial Summary
Financial Summary Q1 2011* Q2 2011 Q3 2011 Q4 2011 Q1 2012* Product Sales $500M $530M $570M $654M $790M Total Revenue $565M $609M $601M $688M $856M Cost of Goods Sold% 27% 29% 28% 25% 26% SGA% 21% 22% 21% 21% 19% R&D Expense $14M $18M $18M $17M $22M Operating Margin 50% 53% 50% 57% 55% (excluding am
Slide 16: Revenue by Segment Q1 2012 vs Q1 2011
Revenue by Segment Q1 2012 vs Q1 2011 Q1 2011 Q1 2012 23% 24% 31% 38% Neuro 12% Derm Canada / Australia 17% 28% 27% Emerging Markets U.S. ~65% U.S. ~52% 15
Slide 17: Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS)* Sequential increase due to: Q4’11 Q1’12 Increased Canada contract U.S. Neuro 17% 18% manufacturing U.S. Derm 11% 10% Product Mix (U.S. & Europe) Can/Aus 23% 26% Unfavorable Exchange Rates (Europe) Emerg Mkts 42% 47% Delayed plant consolidations Total COGS 25% 26% *
Slide 18: Q1'12 Cash Flow
Q1’12 Cash Flow $350 $113 $302 $322 $11 $87 $8 $330 $164 Cash Adjusted Cash Net Issuance Restructuring/ Other2 December CashFlow Securities Cap March LT Debt Acquisitions Integration/ 2011 from Repurchases Ex 2012 Legal Operations1 Settlements 1Includes impact of divestiture of IDP-111 and 5FU 2Incl
Slide 19: Financial Updates
Financial Updates FX Impact Resulted in a ~$20 million reduction to revenue Currency Poland Serbia Hungary Russia Australia Canada Mexico Brazil South Africa Q1’11 vs -11% -8% -12% -3% 5% -2% -7% -6% -10% Q1’12 Working Capital Improvement Improved from 35% of LTM revenue in Q4 11 to 30% of L
Slide 20: 2012 Guidance
2012 Guidance J. Michael Pearson
Slide 21: Annual Financial Guidance for 2012
Annual Financial Guidance for 2012 Previous Guidance As of May 3, 2012 Revenue $3.1 - $3.4 Revenue > $3.4 - 3.6 billion billion $3.95 - $4.20 Adjusted $4.45 - $4.70 Adjusted Cash Cash EPS EPS > $1.2 billion in > $1.4 billion in Adjusted Adjusted Cash Flow Cash Flow from Operations from O
Slide 22: First Quarter 2012 Financial Results Conference Call
First Quarter 2012 Financial Results Conference Call May 3, 2012
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