Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q2 2023 Earnings Presentation
48 slides from Bausch Health Companies's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 3, 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
2Q23 1 Business Update 2 Financial Results Agenda 3 2023 Guidance 4 2023 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 • Strong business performance - Revenues up 11% on an organic2 basis, with Salix, International & Solta all growing double digits • Favorable motion ruling in Xifaxan® litigation – continuing to make additional investments to accelerate Salix growth • Continuin
Slide 7: 2Q23 Bausch Health (excl. B+L) Revenue
Unconsolidated 2Q23 Bausch Health (excl. B+L) Revenue Revenue change vs 2Q22, in millions USD Salix International Solta Medical Diversified 6% 11% 7% 24% 20% 8% 12% 46% $557 $259 $88 $228 50% 79% 30% 27% 80% Consumables Consoles Neuro Dermatology Xifaxan Relistor Trulance Other EMEA Latam Canada Gen
Slide 8: Additional 2Q Developments
Additional 2Q Developments • Favorable motion ruling in Xifaxan® litigation – continuing to make additional investments to accelerate Salix growth • Continuing to strengthen balance sheet – further debt reduction in quarter and new AR Credit Facility enhance liquidity profile • B+L Distribution cont
Slide 9: R&D Update
R&D Update1 Salix Dermatology Solta Medical • RED-C: prevention and delay of first episode of • IDP-126: first triple combination product for the • Clear & Brilliant® Touch: fractionated laser device hepatic encephalopathy treatment of acne vulgaris for skin rejuvenation • Expect to complete enrollm
Slide 10: 2Q23 Financial Results
2 2Q23 Financial Results 10
Slide 11: 2Q23 Revenue
Consolidated 2Q23 Revenue Revenue change vs 2Q22, in millions USD Consolidated (excl. B+L) $2,167 $1,967 20% 19% 8% $1,132 49% $1,035 19% 62% 23% Vision Care 2Q23 2Q22 Salix International Surgical Solta Medical Diversified Products Ophthalmic Pharmaceuticals Reported 10% Reported 10% Reported 10% Or
Slide 12: 2Q23 Results Bausch Health (excl. B+L)
Unconsolidated 2Q23 Results Bausch Health (excl. B+L) Reported: 10% Organic1: 11% % are organic1 unless specifically noted Salix Reported: 11% Organic1: 11% International Reported: 11% Organic1: 11% • Canada revenue 7%, driven by promoted brand growth • Xifaxan® revenue 9%, TRx2 3% 21%, mostly offse
Slide 13: 2Q23 Bausch + Lomb Revenue
Unconsolidated 2Q23 Bausch + Lomb Revenue Revenue change vs 2Q22, in millions USD Vision Care Surgical Pharmaceuticals $1,035 $941 33% 24% Bausch Health (excl. B+L) Debt 42% $646 52% $195 $194 58% 67% 24% Total: $16.6B2 • Restricted: $15.6B Implantables Equipment • Unrestricted: $1B3 Consumer Contac
Slide 14: 2Q & YTD23 Revenue Performance
Consolidated 2Q & YTD23 Revenue Performance Amounts in millions USD 2Q23 2Q22 Reported Organic1 YTD23 YTD22 Reported Organic1 Salix $557 $501 11% 11% $1,053 $965Bausch Health 9% (excl. B+L) 9% International $259 $233 11% 11% $506 $477Debt 6% 8% Solta Medical $88 $57 54% 60% $161 $129 25% 29% Total:
Slide 15: 2Q23 GAAP Financial Results
Consolidated 2Q23 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) 6.30.23 6.30.22 Bausch HealthReported (excl. B+L) Revenues $2,167 $1,967 Debt 10% GAAP Gross Profit $1,212 $1,082 12% Total: $16.6B2 55.9% 55.0% 90 bps GAAP Gross Margin •
Slide 16: 2Q23 Non-GAAP Financial Results
Consolidated 2Q23 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) 6.30.23 6.30.22 Bausch Reported Health (excl. B+L) Constant Currency1 Debt Revenues $2,167 $1,967 10% 11% Adj. Gross Profit1 $1,518 $1,390 9% 10% Total: $16.6B2 70.1% 70.7% (60 bps) Adj.
Slide 17: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD As of 6.30.23 As of 12.31.22 As of 12.31.21 Cash and cash equivalents1 $588 $591 $2,119 Bausch Health (excl. B+L) Revolving Credit Facility5 $445 Debt $470 $285 Senior Secured Debt (principal amount)2 $13,200 $13,300 $7,958 Total: $16.6B2 Senior Uns
Slide 18: Long-Term Debt Maturity Profile
Consolidated Long-Term Debt Maturity Profile In millions USD As of June 30, 20231,2 $M Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 Restricted Bausch Health (excl. B+L) Debt Revolver $245 - - - - $245 - - - - Term Loan $1,937 - - - - $1,937 - Total:- $16.6B2 - - Secured Notes $6,906 - - $1,680
Slide 19: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1,2,4 As of June 30, 2023, in millions USD $6,000 $4,990 Bausch Health (excl. B+L) $5,000 Debt $4,325 $4,000 Total: $16.3B2 • Restricted: $15.3B • Unrestricted: $1B3 $2,764 $3,000 Restricted debt down ~$0.2B in 2Q23 vs 1Q23 $2,000 and dow
Slide 20: 2023 Guidance
3 2023 Guidance 20
Slide 21: Bausch Health 2023 August Guidance
Consolidated Bausch Health 2023 August Guidance2 All amounts are approximate and in USD Revenue2 Adj. EBITDA (non-GAAP)1,2,4 Bausch Health (excl. B+L) Key Assumptions2 $8.45B - $8.65B $3.00B - $3.15B • Adjusted Gross Margin ~80% $3.95B - $4.00B $0.70B - $0.75B • R&D Expense: ~$290M B+L B+L • Contrac
Slide 22: 2023 Priorities
2023 Priorities 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: YTD GAAP Financial Results
Consolidated YTD GAAP Financial Results Amounts in millions USD, except EPS amounts Six Months Ended Favorable (Unfavorable) 6.30.23 6.30.22 Bausch HealthReported (excl. B+L) Revenues $4,111 $3,885 Debt 6% GAAP Gross Profit $2,288 $2,131 7% Total: $16.6B2 55.7% 54.9% 80 bps GAAP Gross Margin • Restr
Slide 27: YTD Non-GAAP Financial Results
Consolidated YTD Non-GAAP1 Financial Results Amounts in millions USD Six Months Ended Favorable (Unfavorable) 6.30.23 6.30.22 Bausch Reported Health (excl. B+L) Constant Currency1 Debt Revenues $4,111 $3,885 6% 7% Adj. Gross Profit1 $2,880 $2,757 4% 6% Total: $16.6B2 70.1% 71.0% (90 bps) Adj. Gross
Slide 28: YTD Bausch Health (excl. B+L) Revenue
Unconsolidated YTD Bausch Health (excl. B+L) Revenue Revenue change vs YTD22, in millions USD Salix International Solta Medical Diversified 6% 12% 6% 24% 20% 8% 13% 48% $1,053 $506 $161 $425 51% 80% 28% 24% 80% Consumables Consoles Neuro Dermatology Xifaxan Relistor Trulance Other EMEA Latam Canada
Slide 29: YTD23 Results Bausch Health (excl. B+L)
YTD23 Results Bausch Health (excl. B+L) Reported: 4% Organic1: 5% % are organic1 unless specifically noted Salix Reported: 9% Organic1: 9% International Reported: 6% Organic1: 8% • Xifaxan® revenue 8%, TRx2 3% • Canada revenue 9%, driven by volumes across our promoted products • Total extended units
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 Mar 31, Jun 30, Mar 31, Jun 30, Units 2022 2022 2Q22 2023 2023 2Q23 Dermatology 1.12 1.19 0.07 1.08 1.03 (0.05) Neurology 1.10 1.08 (0.02) 1.15 1.12 (0.03) Solta Medical Salix 0.98
Slide 31: Inventory in Select U.S. Businesses (YTD)
Unconsolidated Inventory in Select U.S. Businesses (YTD)1 Months on Hand As of As of As of As of Business Change Change Dec 31, Jun 30, Dec 31, Jun 30, Units 2021 2022 YTD22 2022 2023 YTD23 Dermatology 1.03 1.19 0.16 1.07 1.03 (0.04) Neurology 1.17 1.08 (0.09) 1.17 1.12 (0.05) Solta Medical Salix 0.
Slide 32: Segment Profit
Unconsolidated Segment Profit1 In millions USD 2Q23 YTD23 Salix International Solta Medical Diversified Total Salix International Solta Medical Diversified Total Segment Revenue $557 $259 $88 $228 $1,132 $1,053 $506 $161 $425 $2,145 Segment Profit1 $386 $68 $45 $138 $637 $700 $145 $81 $245 $1,171 2Q
Slide 33: Other Financial Information
Consolidated Other Financial Information In millions USD unless otherwise indicated Three Months Ended Favorable (Unfavorable) Six Months Ended Favorable (Unfavorable) Constant Constant June 30, 2023 June 30, 2022 Reported June 30, 2023 June 30, 2022 Reported Currency1 Currency1 Cash Interest Paid2
Slide 34: Non-GAAP Adjustments EPS Impact
Consolidated Non-GAAP Adjustments EPS Impact In millions USD unless otherwise indicated Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Income Income Income Income EPS Impact2 EPS Impact2 EPS Impact2 EPS Impact2 (Expense) (Expense) (Expense) (Expense) Net
Slide 35: 2Q Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated 2Q Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated 2Q23 2Q22 Selling & Operating Operating Selling & Operating Operating Gross Profit Gross Margin G&A R&D Expense Gross Profit Gross Margin G&A R&D Expense Advertising E
Slide 36: YTD Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated YTD Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated YTD23 YTD22 Selling & Operating Operating Selling & Operating Operating Gross Profit Gross Margin G&A R&D Expense Gross Profit Gross Margin G&A R&D Expense Advertisin
Slide 37: Reconciliation of Reported Net Income (Loss) to EBITDA and Adj EBITDA
Consolidated Reconciliation of Reported Net Income (Loss) to EBITDA1 and Adj EBITDA1 In millions USD unless otherwise indicated Three months ended Jun 30, Six months ended Jun 30, 2023 2022 2023 2022 Net income (loss) $27 ($139) ($182) ($205) Interest expense, net 312 407 613 767 Provision for (bene
Slide 38: 2Q Reconciliation of Reported Revenue to Organic Revenue
2Q 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 June 30, 2023 June 30, 2022 Changes in Organic Divestitures Revenue as Exchange Revenue (Non
Slide 39: YTD23 Reconciliation of Reported Revenue to Organic Revenue
YTD23 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Six Months Ended Change in Reported Change in Organic Revenue Revenue1 June 30, 2023 June 30, 2022 Changes in Organic Divestitures Revenue as Exchange Revenue (No
Slide 40: Reconciliation of Cash from Operations to Adjusted Cash Flows
2Q & YTD Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (Non-GAAP)1 In millions USD Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cash provided by (used in) operating activities $206 $123 $360 $60 Payments of legacy
Slide 41: Reconciliation of Cash Flows from Operations Excluding B+L
2Q 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 Six Months Ended June 30, 2023 June 30, 2023 Bausch Health Bausch Health Bausch Health Bausch Health B+L B+L Companies Inc
Slide 42: Trailing Twelve Months Adjusted EBITDA
Trailing Twelve Months Adjusted EBITDA1 In millions USD Trailing Twelve Months Ended Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Net Income (Loss) ($189) ($355) ($212) $270 $139 Interest expense, net 1,296 1,391 1,450 1,491 1,458 Provision for (benefit from) income taxes 214 172 83 (21) (30) Depreciation and
Slide 43: Reconciliation of Net Income (Loss) to Adjusted EBITDA (excl. B+L)
Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA (excl. B+L)1 Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Bausch Bausch Bausch Bausch Health Health Health Health Companies Excluding Companies Excluding (in millions) Inc. B+L B+L Inc. B+L B+L Net income (loss) $ 2
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 (loss) (non-GAAP) is Net Income (its most directly comparable GAAP financial measure), adjusted for in connection with activities regarding: (i
Slide 46: Non-GAAP Appendix
Non-GAAP Appendix Historically, management has used Adjusted net income (loss) (non-GAAP) (the most directly comparable GAAP financial growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include measure for which is GAAP net i
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
Bausch Health Companies — Q2 2023 Earnings Presentation on 6ix