Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q1 2023 Earnings Presentation
40 slides from Bausch Health Companies's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Earnings
Q1 2023 Earnings May 4, 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 ratios to provide supplemental information to readers. Management uses these non-GAAP measures and ra
Slide 4: Agenda
1Q23 1 Business Update 2 Financial Results Agenda 3 2023 Guidance 4 2023 Priorities 4
Slide 5: Business Update
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Slide 6: Powering Up Our Potential
Powering Up Our Potential1 Motivated, resilient, high-performing team Investing in profitable growth businesses Driving operational excellence and investments to drive growth Intensifying focus on R&D and business development 1.See Slide 2 for further information on forward-looking statements. 6
Slide 7: Advancing Our R&D Pipeline
Advancing Our R&D Pipeline1 Salix Dermatology Solta Medical • Amiselimod (S1P modulator): for mild to • IDP-126: first triple combination product for the • Clear & Brilliant Touch: fractionated laser device for moderate Ulcerative Colitis treatment of acne vulgaris skin rejuvenation • Phase 2 trial
Slide 8: 1Q23 Revenue
Consolidated 1Q23 Revenue Revenue change vs 1Q22, in millions USD Consolidated (excl. B+L) $1,944 $1,918 17% 20% 7% $1,013 49% 20% $931 63% 24% Vision Care 1Q23 1Q22 Salix International Surgical Solta Medical Diversified Products Ophthalmic Pharmaceuticals Reported 1% Reported (2%) Reported 5% Organ
Slide 9: 1Q23 Bausch Health (excl. B+L) Revenue
Unconsolidated 1Q23 Bausch Health (excl. B+L) Revenue Revenue change vs 1Q22, in millions USD Salix International Solta Medical Diversified 6% 12% 6% 23% 22% 8% 14% $496 $247 50% $73 $197 52% 27% 22% 80% 78% Consumables Consoles Neuro Dermatology Xifaxan Relistor Trulance Other EMEA Latam Canada Gen
Slide 10: 1Q23 Financial Results
2 1Q23 Financial Results 10
Slide 11: 1Q23 Results Bausch Health (excl. B+L)
1Q23 Results Bausch Health (excl. B+L) Reported: (2%) Organic1: Flat % are organic1 unless specifically noted Salix Reported: 7% Organic1: 7% International Reported: 1% Organic1: 5% • Xifaxan® revenue 7%, TRx2 3% • Canada revenue 11%, mostly driven by volumes across our promoted products • Total ext
Slide 12: 1Q23 Bausch + Lomb Revenue
Unconsolidated 1Q23 Bausch + Lomb Revenue Revenue change vs 1Q22, in millions USD Ophthalmic Revenue Vision Care Surgical Pharmaceuticals $931 $889 24% Bausch Health (excl. B+L) 39% Debt 41% $587 52% $183 $161 59% 61% 24% Total: $16.6B2 • Restricted: $15.6B Implantables Equipment • Unrestricted: $1B
Slide 13: 1Q23 Revenue Performance
Consolidated 1Q23 Revenue Performance Amounts in millions USD 1Q23 1Q22 Reported Organic1 Salix $496 $464 7%Bausch Health (excl.7% B+L) International $247 $244 1%Debt 5% Solta Medical $73 $72 1% 6% Total: $16.6B2 Neuro $102 $128 (20%) (20%) • Restricted: $15.6B Dermatology $43 $59 • Unrestricted: $1
Slide 14: 1Q23 GAAP Financial Results
Consolidated 1Q23 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) 3.31.23 3.31.22 Bausch HealthReported (excl. B+L) Revenues $1,944 $1,918 Debt 1% GAAP Gross Profit $1,076 $1,049 3% Total: $16.6B2 55.3% 54.7% 60 bps GAAP Gross Margin • Re
Slide 15: 1Q23 Non-GAAP Financial Results
Consolidated 1Q23 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) 3.31.23 3.31.22 Bausch Reported Health (excl. B+L) Constant Currency1 Debt Revenues $1,944 $1,918 1% 3% Adj. Gross Profit1 $1,362 $1,367 0% 1% Total: $16.6B2 70.1% 71.3% (120 bps) Adj. Gr
Slide 16: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD As of 3.31.23 As of 12.31.22 As of 12.31.21 Cash and cash equivalents1 $531 $591 $2,119 Bausch Health (excl. B+L) Revolving Credit Facility5 $495 Debt $470 $285 Senior Secured Debt (principal amount)2 $13,287 $13,300 $7,958 Total: $16.6B2 Senior Uns
Slide 17: Long-Term Debt Maturity Profile
Consolidated Long-Term Debt Maturity Profile In millions USD As of March 31, 20231,2 $M Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 Bausch Health (excl. B+L) Restricted Debt Revolver $395 - - - - $395 - - - - Term Loan $1,937 - - - - $1,937 - Total:- $16.6B2 - - • Restricted: $15.6B Secured N
Slide 18: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1,2,4 As of March 31, 2023, in millions USD $6,000 $4,990 Bausch Health (excl. B+L) $5,000 Debt $4,475 $4,000 Total: $16.5B2 • Restricted: $15.5B • Unrestricted: $1B3 $2,764 $3,000 Restricted debt down ~$0.1B in 1Q23 vs 4Q22 $2,000 $1,609
Slide 19: 2023 Guidance
3 2023 Guidance 19
Slide 20: Bausch Health 2023 May Guidance
Consolidated Bausch Health 2023 May Guidance2 All amounts are approximate and in USD Revenue2 Adj. EBITDA (non-GAAP)1,2,4 Bausch Health (excl. B+L) Key Assumptions2 $8.35B - $8.55B $3.00B - $3.15B • Contractual Interest Cost (non-GAAP)1,5: $1.3B $3.90B - $3.95B $0.70B - $0.75B • Adj. Tax Rate (non-G
Slide 21: 2023 Priorities
2023 Priorities BAUSCH Health
Slide 22: 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 23: Powering up our potential
BAUSCE Health Powering up our potential
Slide 24: Appendix
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Slide 25: 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 Dec 31, Mar 31, Dec 31, Mar 31, Units 2021 2022 1Q22 2022 2023 1Q23 Dermatology 1.03 1.12 0.09 1.07 1.08 0.01 Neurology 1.17 1.10 -0.07 1.17 1.15 -0.02 Solta Medical Salix 0.99 0.9
Slide 26: 1Q23 Segment Profit
Unconsolidated 1Q23 Segment Profit1 In millions USD Solta 1Q23 Salix International Diversified Total Medical Segment Revenue $496 $247 $73 $197 $1,013 Segment Profit1 $314 $77 $36 $107 $534 Solta 1Q22 Salix International Diversified Total Medical Segment Revenue $464 $244 $72 $249 $1,029 Segment Pro
Slide 27: 1Q23 Other Financial Information
Consolidated 1Q23 Other Financial Information In millions USD unless otherwise indicated Three Months Ended Favorable (Unfavorable) March 31, 2023 March 31, 2022 Reported Constant Currency1 Cash Interest Paid $408 $348 (3%) (3%) Net Interest Expense (GAAP) $301 $360 16% 16% Non-cash adjustments Depr
Slide 28: 1Q23 Non-GAAP Adjustments EPS Impact
Consolidated 1Q23 Non-GAAP Adjustments EPS Impact In millions USD unless otherwise indicated Three Months Ended March 31, 2023 March 31, 2022 Income Earnings per Income Earnings per (Expense) Share Impact2 (Expense) share Impact2 Net loss ($209) ($0.58) ($66) ($0.18) Non-GAAP adjustments:1 Amortizat
Slide 29: Reconciliation of Operating Income to Adjusted EBITA
1Q23 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated Q1 2023 Q1 2022 Selling & R&D Operating Operating Selling & R&D Operating Operating Gross Profit Gross Margin G&A Gross Profit Gross Margin G&A Advertising Expense Expense Income
Slide 30: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
1Q23 Reconciliation of Reported Net Income (Loss) to EBITDA1 and Adjusted EBITDA1 In millions USD unless otherwise indicated Three months ended Mar 31, 2023 2022 Net loss ($209) ($66) Interest expense, net 301 360 Provision for (benefit from) income taxes 73 (16) Depreciation and amortization 319 35
Slide 31: Reconciliation of Reported Revenue to Organic Revenue
1Q23 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 March 31, 2023 March 31, 2022 Changes in Organic Divestitures Revenue as Exchange Revenue
Slide 32: Reconciliation of Operating Cash Flow to Adjusted Cash Flows
1Q23 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flows from Operations (Non-GAAP)1 In millions USD Three Months Ended March 31, 2023 2022 Cash provided by (used in) operating activities $154 ($63) Payments of legacy legal settlements, net of insurance proceeds (
Slide 33: Adjusted Cash Flows from Operations Excluding B+L
1Q23 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 March 31, Bausch Health Bausch Health B+L Companies Inc. (excl. B+L) Cash provided by (used in) operating activities $154 ($56) $2
Slide 34: Trailing Twelve Months Adjusted EBITDA
Trailing Twelve Months Adjusted EBITDA1 In millions USD Trailing Twelve Months Ended Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Net (loss) income ($355) ($212) $270 $139 ($396) Interest expense, net 1,391 1,450 1,491 1,458 1,413 Provision for (benefit from) income taxes 172 83 (21) (30) (119) Depreciation a
Slide 35: Reconciliation of Net Loss to Adjusted EBITDA (excl. B+L)
Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA (excl. B+L)1 Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Bausch Bausch Health Bausch Health Bausch Companies Health Companies Health (in millions) Inc. B+L (Excl. B+L) Inc. B+L (Excl. B+L) Net (loss) income $ (20
Slide 36: 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 37: Non-GAAP Appendix
Non-GAAP Appendix Separation and IPO costs and separation-related and IPO-related costs: The Company has excluded certain costs incurred in connection with activities taken to: (i) separate the eye-health and the Solta aesthetic medical device businesses from the Adjusted Net Income and Adjusted Net
Slide 38: 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 39: Non-GAAP Appendix
Non-GAAP Appendix consistency and comparability with our past financial performance and facilitates period-to-period comparisons of our SG&A expenses, Adjusted Gross Profit/Adjusted Segment Gross Profit and Adjusted Gross Margin/Adjusted Segment Gross Margin G&A expenses and operations, as these mea
Slide 40: 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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