Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Valeant Pharmaceuticals International — FY2015 Earnings Presentation
21 slides from Bausch Health Companies's earnings presentation, Jan 8, 2015
Slide 1: 2015 Financial Guidance Conference Call
Exhibit 99.1 2015 Financial Guidance Conference Call January 8, 2015
Slide 2: Forward-looking Statements
Forward-looking Statements Forward-looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding guidance with respect to expected revenues, non-GAAP cash earnings per share, adjusted cash flows from ope
Slide 3: Agenda
Agenda 2014 Review – J. Michael Pearson 2015 Financial Guidance – Howard Schiller New 2015 Strategic Initiatives – J. Michael Pearson 2
Slide 4: Q4 Operational Highlights
Q4 Operational Highlights Strong organic growth across almost all business units Expect >12% same store organic growth for total company Q4 and >10% for full year Expect Bausch + Lomb organic growth >10% for full year Expect continued strong performance from Jublia and other recent product launches
Slide 5: Jublia Growth Accelerates from DTC
Jublia Growth Accelerates from DTC DTC TV Q4 2014 sales to be >$50 million – annualized run rate >$200 million Continue heavy DTC advertising as long as growth rate continues Zero co-pay in effect as long as growth rate continues 4
Slide 6: Q4 Guidance
Q4 Guidance Guidance Guidance Guidance 7/31/14 10/21/14 1/8/15 Revenue $2.1 – 2.3 billion $2.1 – 2.3 billion ~$2.2 billion Cash EPS $2.35 - $2.45 $2.45 - $2.55 $2.55+ Adjusted Cash Flow from N/A ~$600 million ~$600 million Operations Fx Impact: Revenue N/A ~$53 million ~$50 million Cash EPS ~$0.06 ~
Slide 7: Agenda
Agenda 2014 Review – J. Michael Pearson 2015 Financial Guidance – Howard Schiller New 2015 Strategic Initiatives – J. Michael Pearson 6
Slide 8: Financial Guidance for 2015
Financial Guidance for 2015 2015 Outlook Guidance 2014 (1) 10/21/14 (2) 1/8/15 (2) % over 2014 Revenue ~$8.1 billion ~$9.1 billion $9.2 - $9.3 billion ~14-15% Cash EPS ~$8.32+ ~$10.00 $10.10 - $10.40 ~21-25% Adjusted Cash ~$2.5+ billion ~$3.1 billion >$3.1 billion ~25+% Flow from (at least 90% cash
Slide 9: 2015 Guidance Assumptions
2015 Guidance Assumptions Exchange rates are based on current spot rates Planned impact from generics expected to be <$200m in revenues Targretin (July); Xenazine (August) No future acquisitions included in guidance All signed or closed business development transactions factored into guidance Gross
Slide 10: FX Exposure
FX Exposure Currency 10/15 Spot 12/31 Spot% Change Russian Ruble 40.692 60.736 -49% Euro 0.779 0.827 -6% Polish Zloty 3.288 3.544 -8% Japanese Yen 105.920 119.780 -13% Mexican Peso 13.532 14.752 -9% Australian Dollar 1.133 1.223 -8% Canadian Dollar 1.126 1.162 -3% Brazilian Real 2.458 2.658 -8% 2015
Slide 11: Limited Patent Risk
Limited Patent Risk 2015 2016 2017 2018 2019 Products 1) Xenazine 1) Ziana 1) Lotemax 1) Acanya 1) Zyclara 2) Targretin 2) Zirgan Gel 2) Solodyn 3) Visudyne 2) Macugen 3) Istalol Annual 2014 ~$335 million ~$90 million ~$115 million ~$300 million ~$30 million Sales % 2015 Revenue ~4% ~1% ~1% ~4% <1%
Slide 12: Planned Quarterly Disclosures
Planned Quarterly Disclosures Organic Growth Valeant (both same store and pro forma for total company) Bausch + Lomb Top 20 Global Brands with Price/Volume drivers Revenue breakdown by major Business Unit Developed Markets U.S. Dermatology; Consumer; Ophthalmology Rx; Contact Lens; Surgical; Neuro /
Slide 13: Agenda
Agenda 2014 Review – J. Michael Pearson 2015 Financial Guidance – Howard Schiller New 2015 Strategic Initiatives – J. Michael Pearson 12
Slide 14: New 2015 Strategic Initiatives
New 2015 Strategic Initiatives 1. Deliver strong (10% - 12%) organic growth and a cash conversion rate of >90% 2. Continue to over-deliver on the Bausch + Lomb acquisition through our decentralized operating model 3. Achieve $500+ million revenues, in aggregate, for key launch programs – Jublia, Ult
Slide 15: Strong Base Business Performance in 2015
Strong Base Business Performance in 2015 Continue to deliver strong organic growth Expect same store sales growth of 10% - 12%, including impact of generics Expect nearly all business units to deliver 10%+ organic growth Expect Bausch + Lomb to deliver organic growth of 10%+ Expect exceptional growt
Slide 16: Additional New Product Launches in 2015
Additional New Product Launches in 2015 U.S. Consumer Ocuvite Eye Health Gummies CeraVe Hydrating Cleansing Bar CeraVe Renewing Serum & Night Cream CeraVe Baby Cream & Sunscreen SPF 45 AcneFree Drying Lotion Ambi CC+ Cream U.S. Surgical VICTUS Hardware and Software Enhancements Stellaris and Stellar
Slide 17: Valeant Late Stage R&D Portfolio
Valeant Late Stage R&D Portfolio Product Category Description Expected launch year EnVista Toric Eye Health Toric IOL 2016 Brimonidine Eye Health OTC 2016 Vesneo Eye Health Glaucoma 2016 Post-operative pain and Lotemax Gel Next Gen Eye Health 2016 inflammation Ultra Plus Powers Eye Health Contact le
Slide 18: Key R&D milestones for 2015
Key R&D milestones for 2015 Product Category Action EnVista Toric Eye Health File PMA 1H 2015 Brimonidine (OTC) Eye Health File NDA 1H 2015 Vesneo (glaucoma) Eye Health File NDA 1H 2015 Lotemax Gel Next Gen Eye Health File NDA 2H 2015 Ultra Multi Focal Eye Health File PMA 1H 2015 Ultra Toric Eye Hea
Slide 19: Use Balance Sheet to Maximize Shareholder Value
Use Balance Sheet to Maximize Shareholder Value Leverage at ~3.5 times adjusted pro forma EBITDA creates substantial Balance Sheet capacity Business Development will continue to be the priority Developed Markets: Focus on building out existing platforms, adding new platforms in fast growing markets,
Slide 20: 2015 - Validation of Valeant's Business Model
2015 - Validation of Valeant’s Business Model Robust organic growth profile Double-digit organic growth expected in 2014, 2015 and beyond Geographical and product diversification creates lower-risk profile Durable product portfolio limits patent expiry exposure Rich pipeline of low-risk R&D programs
Slide 21: 2015 Financial Guidance Conference Call
2015 Financial Guidance Conference Call January 8, 2015
Valeant Pharmaceuticals International — FY2015 Earnings Presentation on 6ix