Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q3 2023 Earnings Presentation
48 slides from Bausch Health Companies's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Earnings
Q3 2023 Earnings November 2, 2023
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
3Q23 Business 1 Update 2 Financial Results Agenda 2023 2023 3 Guidance 4 Priorities 4
Slide 5: Business Update
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Slide 6: Bausch Health (excl. B+L) Key Updates
Bausch Health (excl. B+L) Key Updates1 • Solid business performance in Q3 - revenue up 12% on a reported basis to $1.23 billion • Up 10% on an organic2 basis, with growth in all four segments • FDA approval of CABTREOTM (IDP-126) - expected launch in Q1 2024 • B+L distribution continues to be a stra
Slide 7: 3Q23 Bausch Health (excl. B+L) Revenue
Unconsolidated 3Q23 Bausch Health (excl. B+L) Revenue Revenue change vs 3Q22, in millions USD Salix International Solta Medical Diversified 6%5% 9% 23% 22% 8% 15% 44% $614 $275 $83 $259 53% 33% 23% 81% 78% Xifaxan Relistor Trulance Other Neurology Dermatology EMEA Latam Canada Consumables Consoles G
Slide 8: R&D Update
R&D Update1 Salix Dermatology Solta Medical • RED-C: prevention and delay of first episode of • CABTREOTM (IDP-126): first triple combination • Next Generation Fraxel®: fractionated laser device hepatic encephalopathy product for the treatment of acne vulgaris for skin resurfacing • Enrollment of tw
Slide 9: 3Q23 Financial Results
2 3Q23 Financial Results 9
Slide 10: 3Q23 Revenue
Consolidated 3Q23 Revenue Revenue change vs 3Q22, in millions USD Consolidated (excl. B+L) $2,238 $2,046 21% 17% 7% $1,231 50% 18% $1,007 65% 22% Vision Care Salix International 3Q23 3Q22 Surgical Solta Medical Diversified Products Ophthalmic Pharmaceuticals Reported 9% Reported 12% Reported 7% Orga
Slide 11: 3Q23 Results Bausch Health (excl. B+L)
Unconsolidated 3Q23 Results Bausch Health (excl. B+L) Reported: 12% Organic1: 10% % are organic1 unless specifically noted Salix Reported: 13% Organic1: 13% International Reported: 10% Organic1: 4% • Xifaxan® revenue 13%, TRx2 flat • EMEA revenue 2%, with solid revenue growth in Poland of 8% • Total
Slide 12: 3Q23 Bausch + Lomb Revenue
Unconsolidated 3Q23 Bausch + Lomb Revenue Revenue change vs 3Q22, in millions USD Vision Care Surgical Pharmaceuticals $1,007 35% 26% Bausch Health (excl. B+L) $942 Debt 40% $648 50% $185 $174 60% 65% 24% Total: $16.6B2 • Restricted: $15.6B Implantables Equipment • Unrestricted: $1B3 Consumer Contac
Slide 13: 3Q23 & YTD23 Revenue Performance
Consolidated 3Q23 & YTD23 Revenue Performance Amounts in millions USD 3Q23 3Q22 Reported Organic1 YTD23 YTD22 Reported Organic1 Salix $614 $544 13% 13% $1,667 $1,509 10% (excl. B+L) Bausch Health 10% International $275 $250 10% 4% $781 $727Debt 7% 7% Solta Medical $83 $72 15% 17% $244 $201 21% 25% T
Slide 14: 3Q23 GAAP Financial Results
Consolidated 3Q23 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) 9.30.23 9.30.22 Bausch HealthReported (excl. B+L) Debt Revenues $2,238 $2,046 9% GAAP Gross Profit $1,358 $1,171 16% Total: $16.6B2 60.7% 57.2% 350 bps GAAP Gross Margin •
Slide 15: 3Q23 Non-GAAP Financial Results
Consolidated 3Q23 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) 9.30.23 9.30.22 Bausch Reported Health (excl. B+L) Constant Currency1 Debt Revenues $2,238 $2,046 9% 9% Adj. Gross Profit 1 $1,617 $1,462 11% 11% Total: $16.6B2 72.3% 71.5% 80 bps Adj. Gr
Slide 16: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD As of 9.30.23 As of 12.31.22 As of 12.31.21 Cash and cash equivalents1 $780 $591 $2,119 Bausch Health (excl. B+L) Revolving Credit Facility $175 Debt $470 $285 AR Credit Facility $350 $- $- Total: $16.6B2 Senior Secured Debt (principal amount)2 $15,
Slide 17: Long-Term Debt Maturity Profile
Consolidated Long-Term Debt Maturity Profile In millions USD As of September 30, 20231 $M Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 Restricted Bausch Health (excl. B+L) Revolver - - - - - - - Debt - - - Term Loan $1,937 - - - - $1,937 - - - - Total: $16.6B2 Secured Notes $6,906 - - $1,680 -
Slide 18: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1,2 As of September 30, 2023, in millions USD $6,000 $5,340 $5,000 Bausch Health (excl. B+L) $4,080 $4,000 Debt Total: $16.4B2 $3,000 $2,764 • Restricted: $15.1B • Unrestricted: $1.3B3 $2,000 $1,609 $1,131 $866 $1,000 $462 $125 $31 $0 202
Slide 19: 2023 Guidance
3 2023 Guidance 19
Slide 20: Bausch Health 2023 Guidance (as of November 2)
Consolidated Bausch Health 2023 Guidance2 (as of November 2) All amounts are approximate and in USD Bausch Health (excl. B+L) Revenue2 Adj. EBITDA (non-GAAP)1,2,4 Key Assumptions2 $8.585B - $8.710B $3.01B - $3.11B • Adjusted Gross Margin ~80% BHC (excl. B+L) BHC (excl. B+L) • R&D Expense: ~$280M $4.
Slide 21: Bausch Health (excl. B+L) 2023 Guidance (as of November 2)
Consolidated Bausch Health (excl. B+L) 2023 Guidance3 (as of November 2) All amounts are approximate and in USD Prior Guidance Current Guidance Total Revenues $4.50B - $4.65B $4.550B - $4.625B Adjusted EBITDA (non-GAAP)1 $2.30B - $2.40B $2.30B - $2.35B Prior Guidance Current Guidance Adjusted Gross
Slide 22: 2023 Priorities
2023 Priorities —~¥ Vie a . 5 BAUSCH; Health :
Slide 23: 2023 Bausch Health (excl. B+L) Priorities
2023 Bausch Health (excl. B+L) Priorities1 Growth Performance Focus Unlocking Value Execute with Cultivate a Intensify focus Innovate and operational high-performance, and operating rigor evaluate strategic excellence across results-oriented behind R&D alternatives the enterprise culture and busines
Slide 24: Bausch Health
BAUSCE Health
Slide 25: Appendix
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Slide 26: YTD23 GAAP Financial Results
Consolidated YTD23 GAAP Financial Results Amounts in millions USD, except EPS amounts Nine Months Ended Favorable (Unfavorable) 9.30.23 9.30.22 Bausch HealthReported (excl. B+L) Debt Revenues $6,349 $5,931 7% GAAP Gross Profit $3,646 $3,302 10% Total: $16.6B2 57.4% 55.7% 170 bps GAAP Gross Margin •
Slide 27: YTD Non-GAAP Financial Results
Consolidated YTD Non-GAAP1 Financial Results Amounts in millions USD Nine Months Ended Favorable (Unfavorable) 9.30.23 9.30.22 Bausch Reported Health (excl. B+L) Constant Currency1 Debt Revenues $6,349 $5,931 7% 8% Adj. Gross Profit 1 $4,497 $4,219 7% 7% Total: $16.6B2 70.8% 71.1% (30) bps Adj. Gros
Slide 28: YTD23 Bausch Health (excl. B+L) Revenue
Unconsolidated YTD23 Bausch Health (excl. B+L) Revenue Revenue change vs YTD22, in millions USD Salix International Solta Medical Diversified 6% 11% 6% 21% 8% 30% 13% 47% $1,667 $781 $244 $684 52% 80% 24% 23% 79% Consumables Consoles Neurology Dermatology Xifaxan Relistor Trulance Other EMEA Latam C
Slide 29: YTD23 Results Bausch Health (excl. B+L)
YTD23 Results Bausch Health (excl. B+L) Reported: 7% Organic1: 7% % are organic1 unless specifically noted Salix Reported: 10% Organic1: 10% International Reported: 7% Organic1: 7% • Xifaxan® revenue 10%, TRx2 2% • EMEA revenue 8%, driven by Poland 12% • Total extended units ~2% • Canada revenue 6%
Slide 30: Inventory in Select U.S. Businesses (QTD)
Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Months on Hand As of As of As of As of Business Change Change Jun 30, Sep 30, Jun 30, Sep 30, Units 3Q22 3Q23 2022 2022 2023 2023 Dermatology 1.19 1.18 (0.01) 1.03 1.17 0.14 Neurology 1.08 1.14 0.06 1.12 1.18 0.06 Salix 0.94 0.96 0.02 Solta 1
Slide 31: Inventory in Select U.S. Businesses (YTD23)
Unconsolidated Inventory in Select U.S. Businesses (YTD23)1 Months on Hand As of As of As of As of Business Change Change Dec 31, Sep 30, Dec 31, Sep 30, Units YTD22 YTD23 2021 2022 2022 2023 Dermatology 1.03 1.18 0.15 1.07 1.17 0.10 Neurology 1.17 1.14 (0.03) 1.17 1.18 0.01 Salix 0.99 0.96 (0.03) S
Slide 32: Segment Profit
Unconsolidated Segment Profit1 In millions USD 3Q23 YTD23 Salix International Solta Medical Diversified Total Salix International Solta Medical Diversified Total Segment Revenue $614 $275 $83 $259 $1,231 $1,667 $781 $244 $684 $3,376 Segment Profit1 $429 $91 $33 $172 $725 $1,129 $236 $114 $417 $1,896
Slide 33: Other Financial Information
Consolidated Other Financial Information In millions USD unless otherwise indicated Three Months Ended Favorable (Unfavorable) Nine Months Ended Favorable (Unfavorable) Constant Constant Sep 30, 2023 Sep 30, 2022 Reported Sep 30, 2023 Sep 30, 2022 Reported Currency1 Currency1 Cash Interest Paid2 $33
Slide 34: Non-GAAP Adjustments EPS Impact
Consolidated Non-GAAP Adjustments EPS Impact In millions USD unless otherwise indicated Three Months Ended Nine Months Ended Sep 30, 2023 Sep 30, 2022 Sep 30, 2023 Sep 30, 2022 Income Income Income Income EPS Impact2 EPS Impact2 EPS Impact2 EPS Impact2 (Expense) (Expense) (Expense) (Expense) Net (lo
Slide 35: 3Q23 Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated 3Q23 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated 3Q23 3Q22 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating G&A G&A Profit Margin Advertising Expense Expense Income Profit
Slide 36: YTD23 Reconciliation of Reported 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 G&A G&A Profit Margin Advertising Expense Expense Income Pro
Slide 37: Reconciliation of Reported Net (Loss) Income to EBITDA and Adj. EBITDA
Consolidated Reconciliation of Reported Net (Loss) Income to EBITDA1 and Adj. EBITDA1 In millions USD unless otherwise indicated Three months ended Sep 30, Nine months ended Sep 30, 2023 2022 2023 2022 Net (loss) income $(382) $403 $(564) $198 Interest expense, net 333 382 946 1,149 Provision for in
Slide 38: 3Q23 Reconciliation of Reported Revenue to Organic Revenue
3Q23 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Three Months Ended Change in Reported Change in Organic Revenue Revenue1 September 30, 2023 September 30, 2022 Changes in Organic Divestitures Revenue as Exchange
Slide 39: YTD Reconciliation of Reported Revenue to Organic Revenue
YTD Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Nine Months Ended Change in Reported Change in Organic Revenue Revenue1 September 30, 2023 September 30, 2022 Changes in Organic Divestitures Revenue as Exchange Re
Slide 40: 3Q23 & YTD23 Reconciliation to Adjusted Cash Flows from Operations
3Q23 & YTD23 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (Non-GAAP)1 In millions USD Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Cash provided by (used in) operating activities $281 $(1,263) $642 $(1
Slide 41: Reconciliation to Adjusted Cash Flows from Operations Excluding B+L
3Q23 and YTD23 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 Nine Months Ended September 30, 2023 September 30, 2023 Bausch Health Bausch Health Bausch Health Bausch Health B+L B+L
Slide 42: Trailing Twelve Months Adjusted EBITDA
Trailing Twelve Months Adjusted EBITDA1 In millions USD Trailing Twelve Months Ended Sep-23 Jun-23 Mar-23 Dec-22 Sep-22 Net (Loss) Income $(974) $(189) $(355) $(212) $270 Interest expense, net 1,247 1,296 1,391 1,450 1,491 Provision for (benefit from) income taxes 234 214 172 83 (21) Depreciation an
Slide 43: Reconciliation of Reported Net (Loss) Income to Adj. EBITDA (excl. B+L)
Reconciliation of Reported Net (Loss) Income to Adj. EBITDA (excl. B+L)1,3 Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health (in millions) Companies Inc. Corporation (excl. B+L) Companies In
Slide 44: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP financial Asset Impairments, including loss on assets held for sale: The Company has excluded the impact of impairments of finite
Slide 45: Non-GAAP Appendix
Non-GAAP Appendix Separation and IPO costs and separation-related and IPO-related costs: The Company has excluded certain costs incurred Adjusted Net Income and Adjusted Net Income Attributable to Bausch Health in connection with activities regarding: (i) the separation of the eye-health business an
Slide 46: Non-GAAP Appendix
Non-GAAP Appendix Historically, management has used Adjusted net income (loss) (non-GAAP) (the most directly comparable GAAP financial Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) measure for which is GAAP net income (loss)) for s
Slide 47: Non-GAAP Appendix
Non-GAAP Appendix G&A expenses and operations, as these measures eliminate the effects of separation-related costs, IPO-related costs and legal and Adjusted Gross Profit/Adjusted Segment Gross Profit and Adjusted Gross Margin/Adjusted Segment Gross Margin other professional fees which given their na
Slide 48: Non-GAAP Appendix
Non-GAAP Appendix Constant Currency comparable GAAP financial measure) adjusted for the portion of the Company’s payment of separation costs, separation-related costs, Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and financial po
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