Bausch Health Companies Inc. · TSX:BHC

Bausch Health Companies — Q1 2025 Earnings Presentation

48 slides from Bausch Health Companies's earnings presentation, Apr 30, 2025

  1. Slide 1: 1Q 2025 Earnings

    1Q 2025 Earnings April 30, 2025 ©2025 Bausch Health and/or one of its affiliates. 1

  2. Slide 2: Forward-Looking Statements; Non-GAAP Information

    Forward-Looking Statements; Non-GAAP Information Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted applicable securities

  3. Slide 3: Agenda

    Agenda Business Update 1Q 2025 Financial Results 2025 Guidance Closing Remarks, Q&A ©2025 Bausch Health and/or one of its affiliates. 3

  4. Slide 4: Business Update

    Business Update ©2025 Bausch Health and/or one of its affiliates. 4

  5. Slide 5: Bausch Health (excl. B+L) Financial and Other Highlights

    Unconsolidated Bausch Health (excl. B+L) Financial and Other Highlights Revenue Adjusted Cash Balance Sheet and EBITDA1 Flow Litigation Update • 1Q25 Revenue grew 6% • 1Q25 Adjusted EBITDA1 • 1Q25 Adjusted Operating • Successfully completed and 7% on a reported and increased by 14%, Cash Flow1 was $

  6. Slide 6: Bausch Health (excl. B+L) Delivers

    Unconsolidated Bausch Health (excl. B+L) Delivers 8th 5th Consecutive quarter of Revenue and Adjusted Consecutive quarter of Salix Revenue growth 136% EBITDA1 growth Year-over-year organic1 33% Revenue growth in South Korea for Solta Solta organic1 Revenue growth in 1Q25 30% 9th 8% Year-over-year or

  7. Slide 7: Unlocking Value: Strategic Priorities

    Unlocking Value Working all levers Innovation Strategic Growth Inspiring progress and technological advancement Priorities1 Expanding growth across Enriching lives through our relentless drive to deliver segments and geographies better health outcomes People Efficiency Principled leaders, creative t

  8. Slide 8: Unlocking Value

    Unlocking Value Strategic • Completed refinancing to extend maturities Priorities1 • Remain committed to evaluating all options for maximizing the value of our Bausch Health and Bausch + Lomb assets 1. See Slide 2 for further information on forward-looking statements. ©2025 Bausch Health and/or one

  9. Slide 9: Growth

    Growth • Continued investments including media to support growth in Salix segment • Solta growth supported by U.S., Canada, and EMEA • U.S. launch of Next-Generation Fraxel® at annual Strategic ASLMS conference in April 2025, with further rollouts Priorities1 planned • Thermage FLX® approved as a me

  10. Slide 10: Innovation

    Innovation • RED-C program for the prevention and delay of the first episode of HE remains on track for anticipated early 2026 readout ​ Strategic • In the U.S., the patient population is at least 3 Priorities1 times larger than the OHE population that Xifaxan® serves today • Assessing additional da

  11. Slide 11: 1Q 2025 Financial Results

    1Q 2025 Financial Results ©2025 Bausch Health and/or one of its affiliates. 11

  12. Slide 12: 1Q25 GAAP Financial Results

    Consolidated 1Q25 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) March 31, 2025 March 31, 2024 Reported Revenues $2,259 $2,153 5% GAAP Gross Profit $1,302 $1,238 5% GAAP Gross Margin 57.6% 57.5% 10 bps Selling, A&P $597 $565 (6%) GAAP G&

  13. Slide 13: 1Q25 Non-GAAP Financial Results

    Consolidated 1Q25 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) March 31, 2025 March 31, 2024 Reported Constant Currency1 Revenues $2,259 $2,153 5% 7% Adj. Gross Profit 1 $1,580 $1,533 3% 5% Adj. Gross Margin 1 69.9% 71.2% (130 bps) - Selling, A&P (Sa

  14. Slide 14: 1Q25 Adjusted EBITDA & Adjusted Cash Flow from Operations

    Consolidated 1Q25 Adjusted EBITDA1,2 & Adjusted Cash Flow from Operations1 Amounts in millions USD 1Q25 Adjusted Cash Flow 1Q25 Adjusted EBITDA1,2 from Operations1 $576 $128 $675 $110 $99 ($18) Bausch Health (Excl. B+L) Bausch + Lomb Bausch Health (Excl. B+L) Bausch + Lomb BHC (Excl. B+L): 14% Adj.

  15. Slide 15: 1Q25 Revenue

    Consolidated 1Q25 Revenue Amounts in millions USD Consolidated Revenue vs 1Q24 (Excl. B+L) $2,259 $2,153 19% 24% 48% $1,122 10% 58% $1,137 23% 18% 1Q25 1Q24 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 5% Organic1: 6% Reported: 6% Organic1: 7% Reported

  16. Slide 16: Salix Segment – 1Q25

    Unconsolidated Salix Segment – 1Q25 Amounts in millions USD Segment Mix Revenue vs. 1Q24 Highlights Product Revenue TRx2 • Xifaxan® NRx3 up 3%​ 7% 6% 8% 1% 2% • Strong Xifaxan® non-retail growth $542 (6%) (8%) • Trulance® strong 1Q25 growth 20% (1%) 85% Totals: Xifaxan Relistor Trulance Other Report

  17. Slide 17: International Segment – 1Q25

    Unconsolidated International Segment – 1Q25 Amounts in millions USD Segment Mix Revenue vs. 1Q24 Highlights Region Reported Organic1 • Canada – Strong growth from Ryaltris®; continued Wellbutrin® competitor stock-outs Canada 9% 20% 24% 51% $262 EMEA 1% 1% • EMEA – 9th consecutive quarter of organic1

  18. Slide 18: Solta Medical Segment – 1Q25

    Unconsolidated Solta Medical Segment – 1Q25 Amounts in millions USD Geographic Mix Product Mix Highlights • Growth driven by volume 15% 6% 18% • South ​Korea +136%2; China +30%2 $113 $113 • Growth in U.S., EMEA, and Canada 82% 79% Reported: 28% Organic1: 33% APAC US Other Consumables Consoles CONTIN

  19. Slide 19: Diversified Segment – 1Q25

    Unconsolidated Diversified Segment – 1Q25 Amounts in millions USD Segment Mix Revenue vs. 1Q24 Highlights Business Reported Organic1 • Neurology – 15% growth driven by Wellbutrin® and Aplenzin® 22% Neurology 15% 15% 9% Dermatology (8%) (12%) • Dermatology – CABTREO® launch $205 momentum continues in

  20. Slide 20: Bausch + Lomb – 1Q25

    Unconsolidated Bausch + Lomb – 1Q25 Amounts in millions USD Vision Care Surgical Pharmaceuticals $1,137 $1,099 22% 73% 64% $656 $214 51% $267 36% 27% 27% Consumer Contact Lens Implantables Equipment Consumables/Other U.S. International 1Q25 1Q24 Reported: 3% Organic1: 5% Reported: 3% Organic1: 6% Re

  21. Slide 21: Bausch Health (excl. B+L) Revenue & Segment Profit – 1Q25

    Unconsolidated Bausch Health (excl. B+L) Revenue & Segment Profit1 – 1Q25 Amounts in millions USD Revenue Segment Profit1 Highlights 1Q25 vs. 1Q24 1Q25 vs. 1Q24 Salix $542 9% Salix $371 13% → Operating leverage on strong revenue growth International $262 (1%) International $85 (2%) → Reflects FX imp

  22. Slide 22: Bausch Health (excl. B+L) Debt

    Unconsolidated Bausch Health (excl. B+L) Debt As of 1Q25, amounts in millions USD 15,639 15,608 300 31 300 14,752 14,666 887 887 73 2,187 2,156 128 NET DEBT DECREASED BY 7,905 7,905 ~$85M Total AR TL Secured Debt 5,247 5,247 Unsecured Debt 4Q24 Net Debt2 4Q24 Cash 4Q24 Gross Debt2 TL Repayment 1Q25

  23. Slide 23: Bausch Health (excl. B+L) Debt Maturity Profile

    Refinanced Debt Unconsolidated New Financing Bausch Health (excl. B+L) Debt Maturity Profile1 Other Debt As of 4/8/25, amounts in millions USD 999 30 2,865 3,438 4,279 4,400 30 2,309 1,609 30 125 30 1,130 602 643 463 15 2025 2026 2027 2028 2029 2030 2031 2032 1. Debt values are shown at principal va

  24. Slide 24: 2025 Guidance

    2025 Guidance ©2025 Bausch Health and/or one of its affiliates. 24

  25. Slide 25: Full Year 2025 Guidance

    Consolidated Full Year 2025 Guidance1,2 All amounts are approximate, in billions USD 2025 Guidance1,2 2025 Guidance1,2 Bausch Health Companies Prior as of February 19, 2025 Current as of April 30, 2025 Net Revenue $9.900 - $10.150 $9.950 - $10.200 Adjusted EBITDA1 $3.525 - $3.675 $3.475 - $3.625 Bau

  26. Slide 26: Value Creation Framework

    Value Creation Framework1 Increase Bausch Health Maximize the Value of Optimize Our Enterprise Value Our BLCO Asset Capital Structure WORKING ALL LEVERS OF VALUE CREATION 1. See Slide 2 for further information on forward-looking statements. ©2025 Bausch Health and/or one of its affiliates. 26

  27. Slide 27: Key Takeaways

    Key Takeaways1 Achieved Eighth Improving the Balance Delivering Momentum Across Consecutive Quarter Sheet and Focusing on On Our All Segments of Growth Unlocking Value Commitments OUR EXECUTION PROVIDES A STRONG FOUNDATION FOR CONTINUED MOMENTUM ACROSS OUR BUSINESS 1. See Slide 2 for further informa

  28. Slide 28: Appendix

    Appendix ©2025 Bausch Health and/or one of its affiliates. 28

  29. Slide 29: On Track With Our Key R&D Initiatives

    On Track With Our Key R&D Initiatives1 Key Clinical Programs Phase 1 Phase 2 Phase 3 Approval/Launch Notes DERMATOLOGY First and only FDA-approved fixed-dose, triple-combination CABTREO® topical treatment for acne; second most successful launch First triple combination in US in 2024 by IQVIA product

  30. Slide 30: Balance Sheet Summary

    Consolidated Balance Sheet Summary Amounts in millions USD March 31, 2025 December 31, 2024 December 31, 2023 Cash and cash equivalents1 $1,157 $1,201 $962 Revolving Credit Facilities $160 5 $110 5 $275 5 AR Credit Facility $300 $300 $350 Senior Secured Debt (principal amount)2 $15,242 $15,233 $15,2

  31. Slide 31: Bausch Health (excl. B+L) Debt Maturity Profile

    Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1 As of 4/8/2025, amounts in millions USD $5,000 Bausch Health $4,309 $4,400 (excl. B+L) Debt $3,995 Total: $4,000 $605 $16.1B1 $779 Restricted: $15.8B Unrestricted: $0.3B2 $3,000 $352 $22 Increased debt by: $4,400 $2,000 $3,374 ~$485M $1

  32. Slide 32: 1Q25 Revenue Performance

    Consolidated 1Q25 Revenue Performance Amounts in millions USD 1Q25 1Q24 Reported Organic1 Salix $542 $499 9% 6% International $262 $265 (1%) 5% Solta Medical $113 $88 28% 33% Neurology $118 $103 15% 15% Dermatology $46 $50 (8%) (12%) Dentistry $23 $24 (4%) (4%) Generics $18 $25 (28%) (28%) Diversifi

  33. Slide 33: Inventory in Select U.S. Businesses (QTD)

    Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Months on Hand As of Dec 31, As of Mar 31, As of Dec 31, As of Mar 31, Business Units Change 1Q24 Change 1Q25 2023 2024 2024 2025 Dermatology 1.04 1.20 0.16 1.08 1.03 (0.05) Neurology 1.18 1.21 0.03 1.02 1.16 0.14 Salix 1.20 1.12 (0.08) 1.09

  34. Slide 34: Other Financial Information

    Consolidated Other Financial Information Amounts in millions USD Three Months Ended Favorable (Unfavorable) Constant March 31, 2025 March 31, 2024 Reported Currency1 Cash Interest Paid2 $433 $358 (21%) (21%) Net Interest Expense (GAAP) $319 $346 8% 8% Non-cash adjustments Depreciation $49 $46 (7%) (

  35. Slide 35: Non-GAAP Adjustments EPS Impact

    Consolidated Non-GAAP Adjustments EPS Impact Amounts in millions USD, except EPS impact Three Months Ended March 31, 2025 March 31, 2024 Income EPS Income EPS (Expense) Impact2 (Expense) Impact2 Net Loss ($86) ($0.23) ($77) ($0.21) Non-GAAP adjustments:1 Amortization of intangible assets 256 0.68 27

  36. Slide 36: 1Q25 Reconciliation of Reported Operating Income to Adjusted EBITA

    Consolidated 1Q25 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 Amounts in millions USD 1Q25 1Q24 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit Margin Advertising G&A

  37. Slide 37: Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA

    Consolidated Reconciliation of Reported Net Loss to EBITDA1 and Adjusted EBITDA1 Amounts in millions USD Three months ended March 31, 2025 2024 Net Loss ($86) ($77) Interest expense, net 319 346 Provision for income taxes 39 8 Depreciation and amortization 305 320 EBITDA 577 597 Adjustments: Asset i

  38. Slide 38: 1Q25 Segment Profit Reconciliation to Adjusted EBITDA

    Consolidated 1Q25 Segment Profit2 Reconciliation to Adjusted EBITDA1 Amounts in millions USD Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Segment Profit Revenue Segment Profit2 Segment Profit Margin Revenue Segment Profit2 Margin Salix $542 $371 68% $499 $329 66% International

  39. Slide 39: 1Q25 Reconciliation of Reported Revenue to Organic Revenue

    Consolidated 1Q25 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 Amounts in millions USD Three Months Ended Change in Change in Reported Organic March 31, 2025 March 31, 2024 Revenue Revenue1 Changes Organic Organic Revenue in Exchange Revenue Revenue Divestitur

  40. Slide 40: Reconciliation of Operating Cash Flow to Adjusted Cash Flow from Operations

    Consolidated 1Q25 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flow from Operations (Non-GAAP)1 Amounts in millions USD Three Months Ended March 31, 2025 2024 Cash provided by operating activities $211 $211 Net cash impact of legacy legal matters2 15 - Payments o

  41. Slide 41: Reconciliation of Operating Cash Flow to Adjusted Cash Flow, BHC, B+L and excl. B+L

    Consolidated 1Q25 Reconciliation of Reported Cash Provided by (Used in) Operating Activities to Adjusted Cash Flow from Operations (Non-GAAP)1 Amounts in millions USD Three Months Ended March 31, 2025 Bausch Health Bausch Health (excl. Companies Inc. B+L B+L) Cash provided by (used in) operating act

  42. Slide 42: Trailing Twelve Months Adjusted EBITDA

    Consolidated Trailing Twelve Months Adjusted EBITDA1 Amounts in millions USD Trailing Twelve Months Ended Mar-25 Dec-24 Sep-24 Jun-24 Mar-24 Net Loss ($81) ($72) ($217) ($507) ($479) Interest expense, net 1,328 1,355 1,383 1,377 1,347 Provision for income taxes 270 239 168 153 156 Depreciation and a

  43. Slide 43: Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA

    Consolidated Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA1 Amounts in millions USD Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) Compani

  44. Slide 44: 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 adjustments To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP of the

  45. Slide 45: Non-GAAP Appendix

    Non-GAAP Appendix • Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection assets, as described below: with activities regarding the separation of the eye-health business. Separation costs are incremental costs directly related to effectuating th

  46. Slide 46: Non-GAAP Appendix

    Non-GAAP Appendix Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting • Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non- future results and evaluating current performance. This

  47. Slide 47: Non-GAAP Appendix

    Non-GAAP Appendix Adjusted Gross Profit and Adjusted Gross Margin Total Adjusted Operating Expenses Adjusted gross profit (non-GAAP) represents gross profit (its most directly comparable GAAP financial measure) adjusted for Total Adjusted Operating Expenses (non-GAAP) represents operating expenses (

  48. Slide 48: Non-GAAP Appendix

    Non-GAAP Appendix Constant Currency Adjusted Cash Flow from Operations excluding Bausch + Lomb is not intended to be, and may not be, representative of Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and Cash Flow from Operations (f

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