Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q1 2024 Earnings Presentation
35 slides from Bausch + Lomb's earnings presentation, May 1, 2024
Slide 1: 1Q24 Financial Results
MY UG \ aS BAUSCH +LOMB SS : 1Q24 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 rate dis-synergies and inflation, expectations regarding adjusted gross margin (non-GAAP), adjusted
Slide 3: Q1 Highlights, Financial Results & Outlook, Growth Drivers
Q1 Highlights Financial Results & Outlook Growth Drivers 2
Slide 4: Three Key Takeaways
Three Key Takeaways Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation +20% CC1 revenue growth vs 1Q23 Executing growth strategy across Entering new cycle of IOLs with all key product franchises steady stream of innovation Broad-based growth
Slide 5: Executing on our Roadmap to Accelerate Growth
1 Executing on our Roadmap to Accelerate Growth PHASE 1 PHASE 2 PHASE 3 • Grow revenue at or above market • Drive selling excellence across all businesses Accelerate Growth • Build industry-leading business development platform • Cultivate leading digital capabilities in marketing, R&D, manufacturin
Slide 6: One Year Look Back
ONE YEAR LOOK BACK LISTENING & LEARNING TOUR Improving Consistent Launching Steady Strengthening Supply of Products Stream of New Products Customer Relationships 5
Slide 7: Strong 1Q24 Performance Across All Segments
Strong 1Q24 Performance Across All Segments Delivered +20% Growth CC 1Q241 Growth Across All Segments Growth in All Key Franchises 1Q24 Segment 1Q24 Key Franchise B+L CC Revenue Growth1 CC Revenue Growth1 Reported Revenue Growth2 +20% 68% +8% +11% Vision Care 30% 1Q23 1Q24 Multipurpose Solution 19%
Slide 8: Financial Results
Financial Results 7
Slide 9: 1Q24 Revenue Drivers
1Q24 Revenue Drivers Vision Care Surgical Pharmaceuticals $1,099M 24% 36% 74% $931M $635M 53% $197M $267M 64% 26% 23% 1Q23 1Q24 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other 1Q24 Revenue Growth +18% Reported 1Q24 CONSTANT CURRENCY REVENUE GROWTH 1 1Q24 Revenue Gro
Slide 10: 1Q24 Bausch + Lomb P&L (Non-GAAP)
1Q24 Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 1Q24 1Q23 Change Change2 Vision Care Revenue $635M $587M 8% 11% Surgical Revenue $197M $183M 8% 8% 1Q24 Highlights Pharmaceuticals Revenue $267M $161M 66% 66% Total Revenue $1,099M $931M 18% 20% Constant Currency Adj. Gross
Slide 11: 1Q24 Bausch + Lomb P&L (GAAP)
1Q24 Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 1Q24 1Q23 Change Change2 Vision Care Revenue $635M $587M 8% 11% Surgical Revenue $197M $183M 8% 8% Pharmaceuticals Revenue $267M $161M 66% 66% Total Revenue $1,099M $931M 18% 20% Gross Profit $601M $502M 20% 22% Gross Margin 54.
Slide 12: Outlook
Outlook 11
Slide 13: Raising FY24 Constant Currency Revenue Growth Guidance
Raising FY24 Constant Currency Revenue Growth Guidance3 Prior Guidance Current Guidance (Feb. 2024) (May 2024) FY24 Guidance Total Revenue $4.600B - $4.700B $4.600B - $4.700B Constant Currency Adj. EBITDA1 $840M - $890M $840M - $890M ~13-15% Revenue Growth1,5 Key Assumptions (raising from ~12-14%) I
Slide 14: Growth Drivers
Growth Drivers BAUSCH +LOMB
Slide 15: Executing Miebo & Xiidra Growth Strategy
1 Executing Miebo & Xiidra Growth Strategy Driving Selling Excellence With Comprehensive Approach SALES MARKETING Fully integrated Increasing salesforce in 1Q24, direct-to-consumer largest in field promotion MEDICAL ACCESS Boosting education on Focused on providing multifactorial nature of broad acc
Slide 16: Expanding OTC Portfolio with Dry Eye Innovation
Expanding OTC Portfolio with Dry Eye Innovation 3 Promotes Healthy Patients Reported Relief Tear Production1,2 of Dry Eyes Within Weeks1 Tear Volume Dry Eye Severity (Schirmer’s) (OSDI) 11.6 26.2 8.2 7.6 7.3 10.2 Day 0 Day 56 Day 0 Day 56 Placebo NutriTears Hydrates Eyes from Within1 Novel Supplemen
Slide 17: Leveraging Dry Eye Platform to Drive Growth
1,3 Leveraging Dry Eye Platform to Drive Growth Prescription OTC Products Products ‘1-2’ punch from Miebo and Dry eye is the largest Xiidra’s complementary OTC eye care category positioning creates and the #1 driver synergistic halo effect of growth2 1. See Slide 1 for further information on forward
Slide 18: Launching the Next Generation of Intraocular Lenses
LAUNCHING THE Refueling Portfolio NEXT GENERATION With Steady Stream of Innovation3,4 OF INTRAOCULAR LENSES Trifocal 2H24 • Intermediate Optimized IOL ELEVATE • Broader depth of focus than THE EVERYDAY standard monofocal IOLs Trifocal 2025 • Optimal distance contrast sensitivity1,2 EDOF 2026 1. enVi
Slide 19: Bringing New Innovation to Market
1,2 Bringing New Innovation to Market enVista Envy™ INFUSE® Toric enVista Aspire™ Miebo™ PreserVision® PreserVision® AREDS 2 Multifocal in U.S. Plus CoQ10 NutriTears® AREDS 2 Lumify with OCUSorb™ SVS launch in China Xiidra® Preservative IC-8® Apthera™ IOL Free 2023 2024 Lumify Eye Illuminations Biot
Slide 20: Q&A
Q&A Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation 19
Slide 21: Appendix
Appendix BAUSCH+LOMB
Slide 22: 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., submitted in Canada 1Q23 U.S. launch in process, Canada approval expected in 2024 SURGICAL IOL Portfolio IC-8® Apthera™ Available in U.S., select markets i
Slide 23: Cash Flow and Balance Sheet Summary (1Q24)
Cash Flow and Balance Sheet Summary (1Q24) 1Q24 Cash flow from operations $41M Adj. Cash flow from operations (non-GAAP)1,2 $48M Depreciation $36M Stock Based Comp $19M Net Interest $96M CapEx $67M 22 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAA
Slide 24: Top Revenues (Includes FX Impact)
Top 10 Revenues (Includes FX Impact) Rank Product/Franchises 1Q24 FY23 4Q23 3Q23 2Q23 1Q23 1 Surgical Consumables $105M $394M $104M $93M $102M $95M 2 Ocuvite® + PreserVision® $86M $409M $120M $104M $104M $81M 3 Xiidra® $79M $106M $106M - - - 4 SofLens® $57M $238M $59M $60M $59M $60M 5 Biotrue® ONEda
Slide 25: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care 1Q24 1Q23 Reported Change Change1 Contact Lens Revenue $230M $226M 2% 6% Consumer Revenue $405M $361M 12% 15% Total Revenue $635M $587M 8% 11% Constant Currency Surgical 1Q24 1Q23 Reported Change Change1 Implantables Revenue $47M $44M 7% 9% Equi
Slide 26: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 1Q24 4Q23 3Q23 2Q23 1Q23 Vision Care Contact Lens $230M $222M $228M $215M $226M Consumer $405M $440M $420M $431M $361M Total Revenue $635M $662M $648M $646M $587M Surgical Implantables $47M $48M $45M $47M $44M Equipment $45M $52M $47M $46M
Slide 27: Non-GAAP Adjustments EPS Impact
Non-GAAP Adjustments EPS Impact ($M)2 Three Months Ended March 31 2024 2023 Income Earnings per Income Earnings per (Expense) Share Impact (Expense) Share Impact Net loss attributable to Bausch + Lomb Corporation $ (167) $ (0.48) $ (90) $ (0.26) Non-GAAP adjustments: Amortization of intangible asset
Slide 28: Reconciliation of Reported Operating Loss/Income to Adjusted EBITA
Reconciliation of Reported Operating Loss/Income to Adjusted EBITA (non-GAAP)1 ($M) 1Q 2024 Gross Gross Operating Profit Margin SG&A R&D Expense Income 2024 GAAP $ 601 54.7% $ 504 $ 82 $ 6 Amortization of intangible assets 74 6.7% 74 Gain on sale of assets 0.0% (4) Restructuring, integration and tra
Slide 29: Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Reported Net (Loss) Income to EBITDA (non-GAAP)1 and Adjusted EBITDA (non-GAAP)1 ($M) Three Months Ended March 31 2024 2023 Net loss attributable to Bausch + Lomb Corporation $ (167) $ (90) Interest expense, net 96 47 Provision for income taxes 73 33 Depreciation and amortization o
Slide 30: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in March 31, 2024 March 31, 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Revenue as
Slide 31: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in March 31, 2024 March 31, 2023 Reported Revenue Constant Currency Revenue1 Constant Currency Revenue as C
Slide 32: 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 op
Slide 33: 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 taken to: (i) assets. separate the Bausch + Lomb business from the remainder of BHC and (ii) register the
Slide 34: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin Organic Revenue Growth Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude Organic Revenue Growth, a non-GAAP ratio, is defined as a change on a period-over-period basis in
Slide 35: Non-GAAP Appendix
Non-GAAP Appendix Adjusted SG&A of the Company and to forecast future results as part of its guidance. Management believes adjusted cash flows from operations Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative expenses (“SG&A expenses”) (its most (non-GAAP)/Adjusted Cas