Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q4 2023 Earnings Presentation
53 slides from Bausch Health Companies's earnings presentation, Feb 22, 2024
Slide 1: Earnings Q4 & FY2023
EARNINGS Q4 & FY2023 F E BRUARY 2 2 , 2 0 2 4
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward-looking statements”), including, but not limited to, statements relating to Bausch Health Companies Inc.’s (“Bausch Health” or th
Slide 3: Non-GAAP Information
Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures and non-GAAP ratios to provide supplemental information to readers. Management uses these non-GAAP measur
Slide 4: Agenda
Agenda Business Update 4Q & FY 2023 Financial Results 2024 Guidance 2024 Priorities Bausch Health Earnings Q4 & FY2023 4
Slide 5: Business Update
BUSINESS UPDATE Bausch Health Earnings Q4 & FY2023 5
Slide 6: Bausch Health (excl. B+L) Key Updates
Bausch Health (excl. B+L) Key Updates1 SOLID BUSINESS PERFORMANCE IN Q4 & FY 2023 • Q4 & FY revenue of $1.24 billion and $4.61 billion, up 3% and 6% on a reported basis • On an organic 2 basis, up 2% in Q4, and 6% for the full year • Delivered on 2023 guidance STRONG R&D PROGRESS • Positive topline
Slide 7: Strategic Alternatives Progress
Strategic Alternatives Progress1 Steps Taken in 2023 Ongoing Areas of Focus CONTINUED FOCUS ON THE BALANCE SHEET: Executed A/R Credit Facility, providing up to $600M of Focus on investing in key assets and businesses to drive liquidity (subject to borrowing base tests) profitable growth No outstandi
Slide 8: Executing Against Our Objectives
Executing Against Our Objectives Salix: International: Promoted Solta Medical: Diversified: Investing for Growth Portfolio Focus Driving Growth Sustaining Margins Continued investment in Growth in promoted brand Continue to invest Managing the portfolio Xifaxan® franchise; growth in portfolios; focu
Slide 9: R&D Pipeline
R&D Pipeline1 Key Clinical Programs Phase 1 Phase 2 Phase 3 Approval/Launch Notes DERMATOLOGY CABTREOTM (IDP-126) Received FDA approval on October 20, 2023 First triple combination U.S. commercial launch occurred the week of product for the treatment of January 29, 2024 acne vulgaris New Drug Submis
Slide 10: 4Q & FY 2023 Financial Results
4Q & FY 2023 FINANCIAL RESULTS Bausch Health Earnings Q4 & FY2023 10
Slide 11: 4Q23 Revenue
Consolidated 4Q23 Revenue in millions USD Revenue Change vs 4Q22 Consolidated (excl. B+L) $2,408 $2,193 21% 26% 47% 8% $1,235 $1,173 57% 17% 24% 4Q23 4Q22 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 10% Organic 1: 4% Reported: 3% Organic 1: 2% Reporte
Slide 12: FY23 Revenue
Consolidated FY23 Revenue in millions USD Revenue Change vs FY22 Consolidated (excl. B+L) $8,757 20% 20% $8,124 8% $4,611 49% 18% $4,146 62% 23% FY23 FY22 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 8% Organic 1: 7% Reported: 6% Organic 1: 6% Reported
Slide 13: Salix – 4Q23
Unconsolidated Salix – 4Q23 in millions USD Segment Mix Revenue vs. 4Q22 Key Items 6% 4% Total – Reported: 0% Organic 1: 0% • Growth driven by Relistor®, while 9% Product Revenue TRx2 Xifaxan® and Trulance® sales in line with the prior year period Xifaxan® Flat 3% • Xifaxan® saw TRx growth for Q4 ov
Slide 14: International – 4Q23
Unconsolidated International – 4Q23 in millions USD Segment Mix Revenue vs. 4Q22 Key Items Total – Reported: 11% Organic 1: 6% • Strong performances across the 23% EMEA, Canada, and Latin America Region Reported Organic1 regions EMEA 8% 4% • Growth led by promoted product $290 47% LATAM 17% 6% portf
Slide 15: Solta Medical – 4Q23
Unconsolidated Solta Medical – 4Q23 in millions USD Segment Mix Key Items 20% • • $103 • 80% Consumables Consoles Bausch Health Earnings Q4 & FY2023 15
Slide 16: Diversified – 4Q23
Unconsolidated Diversified – 4Q23 in millions USD Segment Mix Revenue vs. 4Q22 Key Items • Neurology – strong year over year 11% Total – Reported: 1% Organic 1: 2% growth benefitted from supply 11% Business Reported Organic1 constraints among competing products Neurology 10% 10% • Dermatology – stro
Slide 17: FY23 Bausch Health (excl. B+L) Revenue
Unconsolidated FY23 Bausch Health (excl. B+L) Revenue Segment Mix Salix International Solta Medical Diversified 6% 11% 6% 21% 23% 8% 13% $2,250 $1,071 47% $347 $943 52% 30% 24% 80% 79% Xifaxan Relistor Trulance Other EMEA Latam Canada Consumables Consoles Neurology Dermatology Generics Dentistry Rep
Slide 18: 4Q23 Bausch + Lomb Revenue
Unconsolidated 4Q23 Bausch + Lomb Revenue in millions USD Vision Care Surgical Pharmaceuticals $1,173 $996 Bausch Health (excl. B+L) 24% Debt 26% 34% $662 51% $204 Total: $16.6B$307 2 • Restricted: $15.6B 66% 25% • Unrestricted: $1B374% 4Q23 4Q22 Consumer Contact Lens Implantables Equipment Consumab
Slide 19: FY23 Bausch + Lomb Revenue
Unconsolidated FY23 Bausch + Lomb Revenue in millions USD Vision Care Surgical Pharmaceuticals $4,146 $3,768 24% 35% 36% $2,543 51% $767 $836 65% 64% 25% 4Q23 4Q22 Consumer Contact Lens Implantables Equipment Consumables/Other U.S. International Reported: 10% Organic 1: 8% Reported: 7% Organic 1: 9%
Slide 20: 4Q23 GAAP Financial Results
Consolidated 4Q23 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) December 31, 2023 December 31, 2022 Reported Revenues $2,408 $2,193 10% GAAP Gross Profit $1,421 $1,228 16% GAAP Gross Margin 59.0% 56.0% 300 bps Selling, A&P $550 $450 (22
Slide 21: 4Q23 Non-GAAP Financial Results
Consolidated 4Q23 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) December 31, 2023 December 31, 2022 Reported Constant Currency1 Revenues $2,408 $2,193 10% 10% Adj. Gross Profit1,2 $1,724 $1,541 12% 12% Adj. Gross Margin1 71.6% 70.3% 130bps Selling, A&
Slide 22: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD As of December 31, 2023 2022 2021 Cash and cash equivalents1 $962 $591 $2,119 Revolving Credit Facilities $2755 $470 $285 AR Credit Facility $350 $- $- Senior Secured Debt (principal amount)2 $15,203 $13,300 $7,958 Senior Unsecured Debt (principal a
Slide 23: Long-Term Debt Maturity Profile
Consolidated Long-Term Debt Maturity Profile In millions USD As of December 31, 20231 $M Total 2024 2025 2026 2027 2028 2029 2030 2031 Restricted Revolver - - - - - - - - - Term Loan $1,938 - - - $1,938 - - - - Secured Notes $6,906 - $1,680 - $1,500 $3,374 - $352 - Unsecured Notes $5,802 - $955 $737
Slide 24: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1,2 As of December 31, 2023, in millions USD Bausch Health $5,000 (excl. B+L) Debt $999 Total: $4,000 $617 $16.4B 2 $643 Restricted: $15.0B Unrestricted: $1.4B3 $3,000 $1,500 $955 $2,000 $3,374 Reduced debt ~$670M net of cash by: $1,000 $
Slide 25: 2024 Guidance
2024 GUIDANCE Bausch Health Earnings Q4 & FY2023 25
Slide 26: Full Year 2024 Guidance
Full Year 2024 Guidance1,2 All amounts are approximate and in USD 2024 Guidance1,2 BHC B+L BHC excl. B+L Net Revenue $9.30B - $9.55B $4.60B - $4.70B $4.70B - $4.85B Organic Growth 2% - 5% Adjusted EBITDA (non-GAAP)1,4 $3.20B - $3.35B $840M - $890M $2.36B - $2.46B Adjusted Operating Cash Flow (non-GA
Slide 27: 2024 Priorities
2024 PRIORITIES Bausch Health Earnings Q4 & FY2023 27
Slide 28: 2024 Priorities
2024 Priorities1 PEOPLE GROWTH EFFICIENCY INNOVATION UNLOCKING VALUE Drive results- Deliver on Revenue, Execute with Intensify focus Continue to oriented culture of Adjusted EBITDA operational excellenc e and operating evaluate strategic accountability and Adjusted and a cost-focused rigor behind R&
Slide 29: Bausch Health
BAUSCE- Health
Slide 30: Appendix
APPENDIX Bausch Health Earnings Q4 & FY2023 30
Slide 31: 4Q23 & FY23 Revenue Performance
Consolidated 4Q23 & FY23 Revenue Performance Amounts in millions USD 4Q23 4Q22 Reported Organic1 YTD23 YTD22 Reported Organic1 Salix $583 $581 0% 0% $2,250 $2,090Bausch Health 8% (excl. B+L) 8% International $290 $261 11% 6% $1,071 $988 Debt 8% 6% Solta Medical $103 $99 4% 5% $347 $300 16% 18% Total
Slide 32: FY23 GAAP Financial Results
Consolidated FY23 GAAP Financial Results Amounts in millions USD, except EPS amounts Twelve Months Ended Favorable (Unfavorable) December 31, 2023 December 31, 2022 Reported Revenues $8,757 $8,124 8% GAAP Gross Profit $5,067 $4,530 12% GAAP Gross Margin 57.9% 55.8% 210 bps Selling, A&P $2,018 $1,806
Slide 33: FY23 Non-GAAP Financial Results
Consolidated FY23 Non-GAAP1 Financial Results Amounts in millions USD Twelve Months Ended Favorable (Unfavorable) December 31, 2023 December 31, 2022 Reported Constant Currency1 Revenues $8,757 $8,124 8% 8% Adj. Gross Profit1 $6,221 $5,760 8% 9% Adj. Gross Margin1 71.0% 70.9% 10 bps Selling, A&P (Sa
Slide 34: Inventory in Select U.S. Businesses (QTD)
Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Solta Medical 1. U.S. wholesale inventory Bausch Health Earnings Q4 & FY2023 34
Slide 35: Inventory in Select U.S. Businesses (FY23)
Unconsolidated Inventory in Select U.S. Businesses (FY23)1 Solta Medical 1. U.S. wholesale inventory Bausch Health Earnings Q4 & FY2023 35
Slide 36: Segment Profit
Unconsolidated Segment Profit1 In millions USD 4Q23 FY23 Salix International Solta Medical Diversified Total Salix International Solta Medical Diversified Total Segment Revenue $583 $290 $103 $259 $1,235 $2,250 $1,071 $347 $943 $4,611 Segment Profit 1 $419 $99 $47 $169 $734 $1,548 $335 $161 $586 $2,
Slide 37: Other Financial Information
Consolidated Other Financial Information In millions USD unless otherwise indicated Three Months Ended Favorable (Unfavorable) Twelve Months Ended Favorable (Unfavorable) Constant Constant Dec 31, 2023 Dec 31, 2022 Reported Currency 1 Dec 31, 2023 Dec 31, 2022 Reported Currency 1 Cash Interest Paid2
Slide 38: Non-GAAP Adjustments EPS Impact
Consolidated Non-GAAP Adjustments EPS Impact In millions USD unless otherwise indicated Three Months Ended Twelve Months Ended Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 Income EPS Income EPS Income EPS Income EPS (Expense) Impact2 (Expense) Impact2 (Expense) Impact2 (Expense) Impact2 Net l
Slide 39: 4Q23 Reconciliation of Operating Income to Adjusted EBITA
Consolidated 4Q23 Reconciliation of Reported Operating Income (loss) to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated 4Q23 4Q22 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Pro
Slide 40: YTD23 Reconciliation of Operating Income to Adjusted EBITA
Consolidated YTD23 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated YTD23 YTD22 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit
Slide 41: Reconciliation of Reported Net Loss to EBITDA and Adj. EBITDA
Consolidated Reconciliation of Reported Net Loss to EBITDA1 and Adj. EBITDA1 In millions USD unless otherwise indicated Three months ended Dec 31, Twelve months ended Dec 31, 2023 2022 2023 2022 Net loss $(47) $(410) $(611) $(212) Interest expense, net 356 301 1,302 1,450 Provision for income taxes
Slide 42: 4Q23 Reconciliation of Reported Revenue to Organic Revenue
Consolidated 4Q23 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Three Months Ended Change in Change in Reported Organic December 31, 2023 December 31, 2022 Revenue Revenue1 Changes Organic Divestitures Organic Reve
Slide 43: FY23 Reconciliation of Reported Revenue to Organic Revenue
Consolidated FY23 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Twelve Months Ended Change in Change in Reported Organic December 31, 2023 December 31, 2022 Revenue Revenue1 Changes Organic Divestitures Organic Rev
Slide 44: Reconciliation of Operating Cash Flow to Adjusted Cash Flows
Consolidated 4Q23 & FY23 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (Non-GAAP)1 In millions USD Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Cash provided by (used in) operating activities $390 $475
Slide 45: Reconciliation of Operating Cash Flow Excluding B+L
Consolidated 4Q23 and FY23 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations Excluding B+L (non-GAAP)1 In millions USD Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2023 Bausch Health Bausch Health Bausch Health Bausch Hea
Slide 46: Trailing Twelve Months Adjusted EBITDA
Consolidated Trailing Twelve Months Adjusted EBITDA1 In millions USD Trailing Twelve Months Ended Dec-23 Sep-23 Jun-23 Mar-23 Dec-22 Net Loss $(611) $(974) $(189) $(355) $(212) Interest expense, net 1,302 1,247 1,296 1,391 1,450 Provision for income taxes 221 234 214 172 83 Depreciation and amortiza
Slide 47: Reconciliation of Net Loss to Adj. EBITDA (excl. B+L) 4Q
Consolidated Reconciliation of Reported Net (Loss) Income to Adj. EBITDA (excl. B+L)1 In millions Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) 3 Com
Slide 48: Reconciliation of Net Loss to Adj. EBITDA (excl. B+L) FY
Consolidated Reconciliation of Reported Net (Loss) Income to Adj. EBITDA (excl. B+L)1 In millions Year Ended December 31, 2023 Year Ended December 31, 2022 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) 3 Companies Inc. Corp
Slide 49: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures result in future restructuring actions and certain of these charges could recur. The Company believes that the To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP adjustments of the
Slide 50: Non-GAAP Appendix
Non-GAAP Appendix • Separation and IPO costs and separa tion-relate d and IPO-rela ted cos ts: The Company ha s excluded certain Adj usted Net Income and Adj usted Net Income attributable to Bausch Health cost s incurred in connection with activities regarding: (i) the separation of the eye -health
Slide 51: Non-GAAP Appendix
Non-GAAP Appendix Histo rically, management has u sed Adju sted net income (lo ss) (non-GAAP) for st rategic decision making, • Acquisi tions, div estitures and discontinuations: In order to present period-over-period organic revenue (non- foreca sting future re sult s and evaluating current perfo r
Slide 52: Non-GAAP Appendix
Non-GAAP Appendix Adj usted Gross Profit/Adjusted Segment Gross Profit and Adjusted Gross Margin/Adjusted Segment Gross Margin The Company believes that Adjusted SG&A (non-GAAP) and Adjusted G&A (non-GAAP) are useful to investors as they Adjusted gross profit (non-GAAP)/Adjusted segment gross profit
Slide 53: Non-GAAP Appendix
Non-GAAP Appendix Constant Currency Adj usted Cash Flow s from Operations excluding Bausch + Lomb (non-GAAP) Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP)
Bausch Health Companies — Q4 2023 Earnings Presentation on 6ix