Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q2 2024 Earnings Presentation
49 slides from Bausch Health Companies's earnings presentation, Aug 1, 2024
Slide 1: 2Q 2024 Earnings
2Q 2024 EARNINGS AUGUST 1, 2024 1
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
Agenda Business Update 2Q 2024 Financial Results 2024 Guidance 2024 Priorities Bausch Health Earnings 2Q 2024 4
Slide 5: Business Update
BUSINESS UPDATE Bausch Health Earnings 2Q 2024 5
Slide 6: Bausch Health (excl. B+L) Key Updates
Bausch Health (excl. B+L) Key Updates1 SOLID BUSINESS PERFORMANCE IN 2Q 2024 • 2Q net revenue of $1.19 billion, up 5% on a reported basis and 6% on an organic2 basis • Fifth consecutive quarter of revenue and Adjusted EBITDA2 growth • Reaffirmed 2024 guidance CONTINUED R&D PROGRESS • Amiselimod: • S
Slide 7: Adding New Talent to the Organization
Adding New Talent to the Organization Made important additions to our Executive Leadership Team in 2Q 2024: • Aimee Lenar – Executive Vice President, U.S. Pharma New role includes leadership of Salix Pharmaceuticals, Bausch Health’s gastroenterology(GI) business, as well as Neurology, Generics, Mark
Slide 8: R&D Pipeline
R&D Pipeline1 Key Clinical Programs Phase 1 Phase 2 Phase 3 Approval/Launch Notes DERMATOLOGY CABTREO® Successful U.S. commercial launch in 1Q 2024 First triple combination Anticipate possible Canadian approval and launch in product for the treatment of second half of 2024 acne vulgaris SALIX RED-C
Slide 9: Strategic Alternatives Progress
Strategic Alternatives Progress1 Ongoing Areas of Focus 2Q Developments Focus on investing in key assets and businesses to drive Fifth consecutive quarter of year-over-year growth in profitable growth revenue and Adjusted2 EBITDA, with continued progress on key pipeline initiatives Continue BHC (exc
Slide 10: 2Q 2024 Financial Results
2Q 2024 FINANCIAL RESULTS Bausch Health Earnings 2Q 2024 10
Slide 11: 2Q24 Revenue
Consolidated 2Q24 Revenue in millions USD Revenue Change vs 2Q23 Consolidated (excl. B+L) 2,403 17% 2,167 23% 47% $1,187 9% $1,216 26% 57% 21% 2Q24 2Q23 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 11% Organic1: 8% Reported: 5% Organic1: 6% Reported: 1
Slide 12: Salix – 2Q24
Unconsolidated Salix – 2Q24 in millions USD Segment Mix Revenue vs. 2Q23 Key Items 3%3% • Strong growth in core Xifaxan® 7% Total – Reported: 0% Organic1: 1% franchise - extended units growth of 4%; TRx growth of 1%; continued Product Revenue TRx2 growth in non-retail units $558 Xifaxan® 10% 1% • Re
Slide 13: International – 2Q24
Unconsolidated International – 2Q24 in millions USD Segment Mix Revenue vs. 2Q23 Key Items Total – Reported: 7% Organic1: 6% • Canada – Robust growth in promoted 24% products, led by Ryaltris®, Contrave® and Region Reported Organic1 Jublia® 45% • LATAM – Growth led by Mexico with solid $276 Canada 6
Slide 14: Solta Medical – 2Q24
Unconsolidated Solta Medical – 2Q24 in millions USD Segment Mix Key Items Total – Reported: 16% Organic1: 19% 25% • Continued overall robust demand in Asia- Pacific, led by South Korea and China • New V.P. and General Manager in China $102 • Successful launch of Thermage® FLX in China tracking in li
Slide 15: Diversified – 2Q24
Unconsolidated Diversified – 2Q24 in millions USD Segment Mix Revenue vs. 2Q23 Key Items • Neurology – Continued benefit from 10% Total – Reported: 10% Organic1: 12% competitor supply shortages; 10% Wellbutrin® and Aplenzin® revenue Business Reported Organic1 growth despite volume declines $251 51%
Slide 16: 2Q24 Bausch + Lomb Revenue
Unconsolidated 2Q24 Bausch + Lomb Revenue in millions USD Vision Care Surgical Pharmaceuticals $1,216 $1,035 25% Bausch Health (excl. B+L) Debt 71% 66% $697 $209 51% Total: $16.6B2 $310 • Restricted: $15.6B 34% 24% • Unrestricted: $1B3 29% 2Q24 2Q23 Consumer Contact Lens Implantables Equipment Consu
Slide 17: 2Q24 GAAP Financial Results
Consolidated 2Q24 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) June 30, 2024 June 30, 2023 Reported Revenues $2,403 $2,167 11% GAAP Gross Profit $1,409 $1,212 16% GAAP Gross Margin 58.6% 55.9% 270 bps Selling, A&P $587 $494 (19%) GAAP
Slide 18: 2Q24 Non-GAAP Financial Results
Consolidated 2Q24 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) June 30, 2024 June 30, 2023 Reported Constant Currency1 Revenues $2,403 $2,167 11% 12% Adj. Gross Profit1 $1,704 $1,518 12% 13% Adj. Gross Margin 1 70.9% 70.1% 80 bps Selling, A&P (Same a
Slide 19: Balance Sheet Summary
Consolidated Balance Sheet Summary In millions USD As of 6.30.2024 As of 12.31.2023 As of 12.31.2022 Cash and cash equivalents1 $623 $962 $591 Revolving Credit Facilities $350 5 $275 5 $470 AR Credit Facility $300 $350 $- Senior Secured Debt (principal amount)2 $15,151 $15,203 $13,300 Senior Unsecur
Slide 20: Long-Term Debt Maturity Profile
Consolidated Long-Term Debt Maturity Profile In millions USD As of June 30, 20241 $M Total 2024 2025 2026 2027 2028 2029 2030 2031 Restricted Revolver - - - - - - - - - Term Loan $1,937 - - - $1,937 - - - - Secured Notes $6,906 - $1,680 - $1,500 $3,374 - $352 - Unsecured Notes $5,247 - $535 $602 $64
Slide 21: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1 Bausch Health As of 2Q 2024, in millions USD (excl. B+L) Debt Total: $15.7B1 $5,000 Restricted: $14.4B $999 Unrestricted: $1.3B2 $4,000 $617 $643 Reduced debt by: $3,000 $1,500 ~$360M in 2Q24 $2,000 $535 $3,374 $1,000 $1,680 $1,937 $1,6
Slide 22: 2024 Guidance
2024 GUIDANCE Bausch Health Earnings 2Q 2024 22
Slide 23: Confirming Full Year 2024 Guidance
Confirming Full Year 2024 Guidance1,2 All amounts are approximate and in USD 2024 Guidance1,2 BHC B+L BHC excl. B+L Net Revenue $9.40B - $9.65B $4.70B - $4.80B $4.70B - $4.85B Organic Growth1 2% - 5% Adjusted EBITDA (non-GAAP)1,4 $3.21B - $3.36B $850M - $900M $2.36B - $2.46B Adjusted Operating Cash
Slide 24: 2024 Priorities
2024 PRIORITIES Bausch Health Earnings 2Q 2024 24
Slide 25: 2024 Priorities
2024 Priorities1 PEOPLE GROWTH EFFICIENCY INNOVATION UNLOCKING VALUE Drive results- Deliver on Revenue, Execute with Intensify focus Continue to oriented culture of Adjusted EBITDA 2 operational excellence and operating evaluate strategic accountability and Adjusted and a cost-focused rigor behind R
Slide 26: Bausch Health
BAUSCH Health
Slide 27: Appendix
APPENDIX Bausch Health Earnings 2Q 2024 27
Slide 28: 2Q & YTD24 Revenue Performance
Consolidated 2Q & YTD24 Revenue Performance Amounts in millions USD 2Q24 2Q23 Reported Organic1 YTD24 YTD23 Reported Organic1 Salix $558 $557 0% 1% $1,057 $1,053 0% 2% International $276 $259 7% 6% $541 $506 7% 4% Solta Medical $102 $88 16% 19% $190 $161 18% 21% Neurology $128 $115 11% 11% $231 $217
Slide 29: YTD GAAP Financial Results
Consolidated YTD GAAP Financial Results Amounts in millions USD, except EPS amounts Six Months Ended Favorable (Unfavorable) June 30, 2024 June 30, 2023 Reported Revenues $4,556 $4,111 11% GAAP Gross Profit $2,647 $2,288 16% GAAP Gross Margin 58.1% 55.7% 240 bps Selling, A&P $1,152 $973 (18%) GAAP G
Slide 30: YTD Non-GAAP Financial Results
Consolidated YTD Non-GAAP1 Financial Results Amounts in millions USD Six Months Ended Favorable (Unfavorable) June 30, 2024 June 30, 2023 Reported Constant Currency1 Revenues $4,556 $4,111 11% 12% Adj. Gross Profit1 $3,237 $2,880 12% 13% Adj. Gross Margin 1 71.0% 70.1% 90 bps Selling, A&P (Same as r
Slide 31: Inventory in Select U.S. Businesses (QTD)
Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Business As of As of Change As of As of Change Units Mar 31, 2023 Jun 30, 2023 2Q23 Mar 31, 2024 Jun 30, 2024 2Q24 Dermatology 1.08 1.03 (0.05) 1.20 1.16 (0.04) Neurology 1.15 1.12 (0.03) 1.21 1.08 (0.13) Salix 0.92 1.10 0.18 Solta 1.12 1.18
Slide 32: Inventory in Select U.S. Businesses (YTD)
Unconsolidated Inventory in Select U.S. Businesses (YTD)1 Business As of As of Change As of As of Change Units Dec 31, 2022 Jun 30, 2023 YTD23 Dec 31, 2023 Jun 30, 2024 YTD24 Dermatology 1.07 1.03 (0.04) 1.04 1.16 0.12 Neurology 1.17 1.12 (0.05) 1.18 1.08 (0.10) Salix 1.02 1.10 0.08 Solta 1.20 1.18
Slide 33: Segment Profit
Unconsolidated Segment Profit1 In millions USD 2Q24 YTD24 Salix International Solta Medical Diversified Total Salix International Solta Medical Diversified Total Segment Revenue $558 $276 $102 $251 $1,187 $1,057 $541 $190 $453 $2,241 Segment Profit1 $377 $86 $47 $166 $676 $706 $173 $87 $280 $1,246 2
Slide 34: 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, 2024 June 30, 2023 Reported Currency2 June 30, 2024 June 30, 2023 Reported Currency1 Cash Interest Paid1
Slide 35: 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, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Income EPS Income EPS Income EPS Income EPS (Expense) Impact2 (Expense) Impact2 (Expense) Impact2 (Expense) Impact2 Net
Slide 36: 2Q24 Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated 2Q24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated 2Q24 2Q23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit Mar
Slide 37: YTD24 Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated YTD24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 In millions USD unless otherwise indicated YTD24 YTD23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit
Slide 38: 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 June 30, Six months ended June 30, 2024 2023 2024 2023 Net (loss) income ($1) $27 ($78) ($182) Interest expense, net 342 312 688 613 Provision for incom
Slide 39: 2Q24 Reconciliation of Reported Revenue to Organic Revenue
Consolidated 2Q24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Three Months Ended Change in Change in Reported Organic June 30, 2024 June 30, 2023 Revenue Revenue1 Changes Organic Divestitures Organic Revenue in E
Slide 40: YTD24 Reconciliation of Reported Revenue to Organic Revenue
Consolidated YTD24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 In millions USD unless otherwise indicated For Six Months Ended Change in Change in Reported Organic June 30, 2024 June 30, 2023 Revenue Revenue1 Changes Organic Divestitures Organic Revenue in Ex
Slide 41: 2Q24 & YTD24 Reconciliation of Cash Provided by Operating Activities
Consolidated 2Q24 & YTD24 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, 2024 2023 2024 2023 Cash provided by operating activities $380 $206 $591 $360 Payments o
Slide 42: 2Q24 & YTD Reconciliation of Cash Provided by Operating Activities (B+L split)
Consolidated 2Q24 & YTD 24 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, 2024 June 30, 2024 Bausch Health Bausch Health Bausch Health Bausch Health Companies Inc. B+L (e
Slide 43: Trailing Twelve Months Adjusted EBITDA
Consolidated Trailing Twelve Months Adjusted EBITDA1 In millions USD Trailing Twelve Months Ended Jun-24 Mar-24 Dec-23 Sep-23 Jun-23 Net Loss ($507) ($479) ($611) ($974) ($189) Interest expense, net 1,377 1,347 1,302 1,247 1,296 Provision for income taxes 153 156 221 234 214 Depreciation and amortiz
Slide 44: Reconciliation of Reported Net (Loss) Income to Adj. EBITDA
Consolidated Reconciliation of Reported Net (Loss) Income to Adj. EBITDA1 In millions Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) 3 Companies Inc. Corporat
Slide 45: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures advisory costs, as well as certain severance-related costs (including the severance costs associated with the departure To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP of Bausch
Slide 46: Non-GAAP Appendix
Non-GAAP Appendix • Separation costs and separation-related costs: The Company has excluded certain costs incurred in and amortization of intangible assets and acquisition-related costs and adjustments excluding amortization of connection with activities regarding the separation of the eye-health bu
Slide 47: Non-GAAP Appendix
Non-GAAP Appendix Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, • Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non- forecasting future results and evaluating current performance. This
Slide 48: Non-GAAP Appendix
Non-GAAP Appendix Adjusted Gross Profit/Adjusted Segment Gross Profit and Adjusted Gross Margin/Adjusted Segment Gross Margin The Company believes that Adjusted SG&A (non-GAAP) and Adjusted G&A (non-GAAP) are useful to investors as they Adjusted gross profit (non-GAAP)/Adjusted segment gross profit
Slide 49: Non-GAAP Appendix
Non-GAAP Appendix Constant Currency Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) is
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