Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q4 2023 Earnings Presentation
39 slides from Bausch + Lomb's earnings presentation, Feb 21, 2024
Slide 1: 4Q23 & FY23 Financial Results
4Q23 & FY23 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 margins and economic factors over which we have no control, including inflationary pressures as a r
Slide 3: Q4 & FY Highlights, Financial Results & Outlook, 2024 Growth Drivers
Q4 & FY Highlights Financial Results & Outlook 2024 Growth Drivers 2
Slide 4: Three Key Takeaways
Three Key Takeaways Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation +19% CC1 revenue growth vs 4Q22 Executing new product launches, Expanding internal +12% CC1 revenue growth vs FY22 building on leadership in dry eye R&D capabilities acro
Slide 5: Executing on our Roadmap to Accelerate Growth
Executing on our Roadmap to Accelerate Growth1 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, manufacturing
Slide 6: Performance and Progress in 2023
Performance and Progress in 2023 Rewire Company for Optimal Performance Grow revenue at or above market Drive selling excellence across all businesses Build industry-leading business development platform Cultivate leading digital capabilities in marketing, R&D, manufacturing Enhance agility and inno
Slide 7: Strong Performance Across All Segments
Strong Performance Across All Segments Delivered +12% Growth CC FY231 Growth Across All Segments Growth in All Key Franchises FY23 Segment FY23 Key Franchise B+L CC Revenue Growth1 CC Revenue Growth1 Reported Revenue Growth +12% 46% +5% +10% Vision Care2 35% FY22 FY23 27% B+L Reported Revenue +7% Su
Slide 8: Financial Results
Financ ial BAUSCH+LOMB
Slide 9: 4Q23 Revenue Drivers
4Q23 Revenue Drivers Vision Care2 Surgical Pharmaceuticals2 $1,173M 24% 74% 34% $996M $662M 51% $204M $307M 66% 25% 26% 4Q22 4Q23 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other 4Q23 Revenue Growth +18% Reported 4Q23 CONSTANT CURRENCY REVENUE GROWTH 1 4Q23 Revenue G
Slide 10: FY23 Revenue Drivers
FY23 Revenue Drivers Vision Care2 Surgical Pharmaceuticals2 $4,146M 24% 35% 64% $3,768M $2,543M 51% $767M $836M 65% 36% 25% FY22 FY23 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other FY23 Revenue Growth +10% Reported FY23 CONSTANT CURRENCY REVENUE GROWTH 1 FY23 Reven
Slide 11: 4Q23 Bausch + Lomb P&L (Non-GAAP)
4Q23 Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 4Q23 4Q22 Change Change2 Vision Care Revenue3 $662M $624M 6% 8% Surgical Revenue $204M $188M 9% 7% 4Q23 Highlights Pharmaceuticals Revenue3 $307M $184M 67% 66% Total Revenue $1,173M $996M 18% 19% Constant Currency Adj. Gros
Slide 12: FY23 Bausch + Lomb P&L (Non-GAAP)
FY23 Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb FY23 FY22 Change Change2 Vision Care Revenue3 $2,543M $2,369M 7% 10% Surgical Revenue $767M $718M 7% 7% FY23 Highlights Pharmaceuticals Revenue3 $836M $681M 23% 24% Total Revenue $4,146M $3,768M 10% 12% Constant Currency Ad
Slide 13: 4Q23 Bausch + Lomb P&L (GAAP)
4Q23 Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 4Q23 4Q22 Change Change2 Vision Care Revenue3 $662M $624M 6% 8% Surgical Revenue $204M $188M 9% 7% Pharmaceuticals Revenue3 $307M $184M 67% 66% Total Revenue $1,173M $996M 18% 19% Gross Profit $632M $520M 22% 23% Gross Margin 53
Slide 14: FY23 Bausch + Lomb P&L (GAAP)
FY23 Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb FY23 FY22 Change Change2 Vision Care Revenue3 $2,543M $2,369M 7% 10% Surgical Revenue $767M $718M 7% 7% Pharmaceuticals Revenue3 $836M $681M 23% 24% Total Revenue $4,146M $3,768M 10% 12% Gross Profit $2,264M $2,004M 13% 15% Gros
Slide 15: Outlook
x 2) O ~ S O BAUSCH+LOMB
Slide 16: FY24 Revenue and Adjusted EBITDA (non-GAAP) Guidance
FY24 Revenue and Adjusted EBITDA (non-GAAP)1 Guidance3 Current Guidance (Feb. 2024) FY24 Guidance Total Revenue $4.600B - $4.700B Constant Currency Adj. EBITDA1 $840M - $890M ~12-14% Revenue Growth1 Key Assumptions Estimated Revenue Interest Expense ~$385M2 -$40M FX Headwinds R&D ~7-8% of revenue Ad
Slide 17: Growth Drivers
Growth Drivers 16
Slide 18: Drive Selling Excellence Across Key Launches
Drive Selling Excellence Across Key Launches1 Accelerate Strong Early Miebo® Performance, Unlock Full Xiidra® Potential 2023 2023 2023 Continue Momentum in Daily SiHy with Roll Out of Multifocal and Toric Lenses Expand in Large and Fast-Growing OTC Dry Eye Category 2023 2023 2023 Shift Surgical Port
Slide 19: Enhance Operational Excellence in Supply Chain
Enhance Operational Excellence in Supply Chain1 Strengthen supply chain in 2024… …pivot to strategic action in 2025 Introduced Digitized Way of Working Enhanced Agility Continue to Expand Margins Lynchburg, VA Distribution Center Established new retail operation Enhance automation and productivity t
Slide 20: Transform R&D, Prioritize Pipeline Innovation
Transform R&D, Prioritize Pipeline Innovation Solid R&D Foundation Expanding Capabilities, Reloading Pipeline 60+ Rewired R&D organization to Launched R&D hubs to evaluate Active Projects in Pipeline Across All Key Categories optimize and select efficiency and opportunities at execution of early sta
Slide 21: 2024: One of Most Active Launch Years in Company History
2024: One of Most Active Launch Years in Company History1 enVista Lumify Envy™ Preservative Free enVista Aspire™ Miebo™ Multifocal in U.S. PreserVision® Clinically-Proven PreserVision® AREDS 2 SVS launch in China Dry Eye INFUSE® Toric AREDS 2 IC-8® Apthera™ IOL Plus CoQ10 Xiidra® Supplement with OCU
Slide 22: Q&A
Q&A Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation 21
Slide 23: Appendix
Appendix BAUSCH+LOMB
Slide 24: Early Stage Launches and Near-term Pipeline Products to Watch
Early Stage Launches and Near-term Pipeline Products to Watch1 Product Status Catalysts to Watch Available in U.S. U.S. launch in process Miebo®2 Filed in Canada 1Q23 Canada approval expected 2024 Launched SVS in ~50 countries, including China in Geo-expansion continues SiHy Daily 2Q23; Multifocal l
Slide 25: Cash Flow and Balance Sheet Summary (4Q23)
Cash Flow and Balance Sheet Summary (4Q23) 4Q23 Cash flow from operations $15M Adj. Cash flow from operations (non-GAAP)1,2 $28M Depreciation $36M Stock Based Comp $16M Net Interest $96M CapEx $84M 24 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAA
Slide 26: Cash Flow and Balance Sheet Summary (FY23)
Cash Flow and Balance Sheet Summary (FY23) FY23 Cash flow used in operations ($17M) Adj. Cash flow from operations (non-GAAP)1,2 $56M Depreciation $142M Stock Based Comp $74M Net Interest3 $268M CapEx $181M 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on n
Slide 27: Top 10 Revenues (Includes FX Impact)
Top 10 Revenues (Includes FX Impact) Rank Product/Franchises FY23 4Q23 3Q23 2Q23 1Q23 FY22 4Q22 1 Ocuvite® + PreserVision® $409M $120M $104M $104M $81M $387M $114M 2 Surgical Consumables1 $394M $104M $93M $102M $95M $359M $94M 3 SofLens® $238M $59M $60M $59M $60M $246M $62M 4 Biotrue® ONEday $200M $
Slide 28: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care3 4Q23 4Q22 Reported Change Change1 Contact Lens Revenue $222M $219M 1% 3% Consumer Revenue $440M $405M 9% 11% Total Revenue $662M $624M 6% 8% Constant Currency Surgical2 4Q23 4Q22 Reported Change Change1 Implantables Revenue $48M $49M (2%) 0% Eq
Slide 29: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 4Q23 3Q23 2Q23 1Q23 4Q22 Vision Care2 Contact Lens $222M $228M $215M $226M $219M Consumer $440M $420M $431M $361M $405M Total Revenue $662M $648M $646M $587M $624M Surgical1 Implantables $48M $45M $47M $44M $49M Equipment $52M $47M $46M $44
Slide 30: Non-GAAP Adjustments EPS Impact ($M)
Non-GAAP Adjustments EPS Impact ($M)2 Three Months Ended Twelve Months Ended December 31 December 31 2023 2022 2023 2022 Income Earnings per Income Earnings per Income Earnings per Income Earnings per (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact Net (lo
Slide 31: Reconciliation of Reported Operating Loss/Income to Adjusted EBITA
Reconciliation of Reported Operating Loss/Income to Adjusted EBITA (non-GAAP)1 ($M) 4Q 2023 FY 2023 Gross Gross R&D Operating Gross Gross R&D Operating Profit Margin SG&A Expense Income Profit Margin SG&A Expense income 2023 GAAP $ 632 53.9% $ 483 $ 80 $ 49 $ 2,264 54.6% $ 1,736 $ 324 $ 130 Amortiza
Slide 32: Reconciliation of Net (Loss) Income 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 Twelve Months Ended December 31 December 31 2023 2022 2023 2022 Net (loss) income attributable to Bausch + Lomb Corporation $ (54) $ (1) $ (260) $ 6 Interest expense, net 96 44
Slide 33: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in December 31, 2023 December 31, 2022 Reported Revenue Constant Currency Revenue 1 Constant Currency Reven
Slide 34: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in December 31, 2023 December 31, 2022 Reported Revenue Constant Currency Revenue 1 Constant Currency Reven
Slide 35: 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 Twelve Months Ended Change in Change in December 31, 2023 December 31, 2022 Reported Revenue Constant Currency Revenue 1 Constant Currency Reve
Slide 36: 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 37: 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) periods until such intangible assets have been fully amortized. Any future acquisitions may
Slide 38: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude amortization, fair value adjustments to inventory in connection with business combinations and integration related invent
Slide 39: 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