Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q2 2023 Earnings Presentation
39 slides from Bausch + Lomb's earnings presentation, Aug 2, 2023
Slide 1: 2Q23 Financial Results
2Q23 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 limited to, risks and uncertainties caused by or relating to a potential recession and other advers
Slide 3: 2Q23 Highlights & Financial Results, Outlook, Upcoming Catalysts
2Q23 Highlights & Financial Results Outlook Upcoming Catalysts 22
Slide 4: What We Are Hearing From Customers
What We Are Hearing From Customers Key takeaway from “Listening and Learning” tour: History and commitment to eye care are paramount We have the foundation to revitalize innovation and build a more agile company Customers and KOLs1 are eager to see Bausch + Lomb return to the top of the industry Lon
Slide 5: Opportunity to Leverage Infrastructure to Drive Profitable Growth
Opportunity to Leverage Infrastructure to Drive Profitable Growth 170-Year Heritage Global Footprint Broad Range of 2 Patients Across All Customers and Eye Care Needs Distribution Channels Global Talented & Dedicated Team Manufacturing Capabilities 4
Slide 6: 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 Accelerate Growth businesses • Build industry-leading business development platform Innovate & Execute • Cultivate leading digital capabilities in marketing,
Slide 7: Double Digit Total Revenue Growth with Strong Performance Across All Segments
Double Digit Total Revenue Growth with Strong Performance Across All Segments 2Q23 vs. 2Q22 10% Reported Revenue Growth 12% CC3 Revenue Growth1 Vision Care2 Surgical Pharmaceuticals2,4 2Q23 REPORTED REVENUE 2Q23 REPORTED REVENUE 2Q23 REPORTED REVENUE Pharmaceuticals 19% $646M $195M $194M Surgical $1
Slide 8: Financial Results
Financial Results 7
Slide 9: 2Q23 Revenue Drivers
2Q23 Revenue Drivers Vision Care4 Surgical Pharmaceuticals3,4 $1,035M 33% 24% $941M 58% $646M 52% $195M $194M 42% 67% 24% 2Q22 2Q23 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other 2Q23 Reported 2Q23 CONSTANT CURRENCY REVENUE GROWTH 1 10% Revenue Growth 2Q23 Constant
Slide 10: 2Q23 Total Bausch + Lomb P&L (Non-GAAP)
2Q23 Total Bausch + Lomb P&L1 (Non-GAAP)2 Reported Constant Currency Bausch + Lomb 2Q23 2Q224 Change Change2 Vision Care Revenue3 $646M $588M 10% 12% Surgical Revenue $195M $184M 6% 7% 2Q23 FX Headwinds: Pharmaceuticals Revenue3 $194M $169M 15% 16% -$18M Revenue Total Revenue $1,035M $941M 10% 12% A
Slide 11: 2Q23 Total Bausch + Lomb P&L (GAAP)
2Q23 Total Bausch + Lomb P&L1 (GAAP) Reported Constant Currency Bausch + Lomb 2Q23 2Q224 Change Change2 Vision Care Revenue3 $646M $588M 10% 12% Surgical Revenue $195M $184M 6% 7% Pharmaceuticals Revenue3 $194M $169M 15% 16% Total Revenue $1,035M $941M 10% 12% Gross Profit $562M $498M 13% 15% Gross
Slide 12: Outlook
Outlook 11
Slide 13: Raising Full-Year 2023 Revenue and Maintaining Adjusted EBITDA Guidance
Raising Full-Year 2023 Revenue and Maintaining Adjusted EBITDA (non-GAAP)1 Guidance3 Prior Guidance Current Guidance (May 2023) (Aug. 2023) Raising FY23 Revenue Guidance Total Revenue $3.90B - $3.95B $3.95B - $4.00B ~6.5-7.5% constant currency growth1 expected for FY23 Adj. EBITDA (non-GAAP)1 $700M
Slide 14: Upcoming Catalysts
Upcoming Catalysts 13
Slide 15: Investing in Launch Excellence to Drive Growth
Investing in Launch Excellence to Drive Growth1 enVista Envy™ enVista Aspire™ Lumify Preservative Free PreserVision® AREDS 2 Miebo™ INFUSE® Toric Multifocal in U.S. Plus CoQ10 PreserVision® MIMS® Glaucoma AREDS 2 IC-8® Apthera™ IOL SVS launch in China Procedure with OCUSorb™ 2023 2024 Biotrue® Hydra
Slide 16: MIEBO: Approved and Launching Soon
MIEBO™: Approved and Launching Soon1 CRITICAL SUCCESS FACTORS Grow the market by educating HCPs on disease etiology and difference between treatment modalities Establish MIEBO™ as the first and only therapeutic to address evaporative dry eye Provide broad and reliable access, reimbursement and affor
Slide 17: Dry Eye Disease Requires Different Treatment Options
Dry Eye Disease Requires Different Treatment Options DED is a Growing Condition that is Currently Underdiagnosed1 Estimated US population Tear Evaporation that has DED 50% ~38M Diagnosed DED ~19M 7% Inflammation *Bausch + Lomb announced intent to Current Patients on DED Rx Associated with acquire XI
Slide 18: Expanding Daily SiHy Franchise in High Growth Category
Expanding Daily SiHy Franchise in High Growth Category Launched Multifocal in 2Q23 in U.S. Launched SVS1 in China in 2Q23 U.S. Daily Disposable Market Dollar Sales by Material3 ~$5.5B +42% reported revenue growth 70% of INFUSE® in 2Q23 vs. 2Q22 $1.08B ~$0.4B 18% reported revenue growth switch fits a
Slide 19: Growth Momentum in Durable Consumer Portfolio
Growth Momentum in Durable Consumer Portfolio Eye Vitamins (+11% reported; +12% cc2) Continuing To Expand Franchise With Launch of CoQ10 and OCUsorb $140M+ +23% Revenue Franchise1 Reported Growth Strong U.S. Consumption Growth, Successful Launch in Canada Artelac® (+24% reported; +24% cc2) Expanding
Slide 20: Strong Demand in Surgical Portfolio with Continued Stream of Launches
Strong Demand in Surgical Portfolio with Continued Stream of Launches1 Strong Market Demand for Premium IOL Portfolio Equipment and Consumables Driving Profitable Growth Taking Mitigating Actions to Improve Availability of Supply 2023 2024 IC-8® Apthera™ Surgical SeeLuma™ MIMS® Glaucoma Viscoelastic
Slide 21: Performance and Progress Defined the Quarter
Performance and Progress Defined the Quarter Growing Revenue Improving Utilization of Rewiring Company for At Or Above Market Bausch + Lomb Platform Optimal Performance +12% CC Revenue Growth1 Leveraging Infrastructure to Pivoting to Making Sales Drive Profitable Growth Teams a Priority Strong Perfo
Slide 22: Appendix
Appendix BAUSCH+LOMB
Slide 23: Early Stage Launches and Near-term Pipeline Products to Watch
Early Stage Launches and Near-term Pipeline Products to Watch1 Product Status Upcoming Milestone Launched SVS in ~50 countries, including China in Geo-expansion continues SiHy Daily 2Q23; Multifocal launched in U.S. Toric launch expected in 2024 Preservative Free submitted 2Q23 Lumify® Expansion Opp
Slide 24: Cash Flow and Balance Sheet Summary (2Q23)
Cash Flow and Balance Sheet Summary (2Q23) 2Q23 Cash flow used in operations ($24M) Adj. Cash flow used in operations (non-GAAP)1,2 ($14M) Depreciation $37M Stock Based Comp $18M Interest $53M CapEx $27M 23 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on n
Slide 25: Cash Flow and Balance Sheet Summary (YTD)
Cash Flow and Balance Sheet Summary (YTD) 1Q23-2Q23 Cash flow used in operations ($80M) Adj. Cash flow used in operations (non-GAAP)1,2 ($38M) Depreciation $71M Stock Based Comp $42M Interest $100M CapEx $64M 24 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information
Slide 26: Top Revenues (Includes FX Impact)
Top 10 Revenues (Includes FX Impact) Rank Product/Franchises 2Q23 1Q23 FY22 4Q22 3Q22 2Q22 1 Ocuvite® + PreserVision® $104M $81M $387M $114M $98M $94M 2 Surgical Consumables1 $102M $95M $359M $94M $85M $93M 3 SofLens® $59M $60M $246M $62M $62M $61M 4 Biotrue® ONEday $49M $52M $201M $50M $53M $49M 5
Slide 27: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care3 2Q23 2Q22 Reported Change Change %1 Contact Lens Revenue $215M $213M 1% 4% Consumer Revenue $431M $375M 15% 17% Total Revenue $646M $588M 10% 12% Constant Currency Surgical2 2Q23 2Q22 Reported Change Change %1 Implantables Revenue $47M $49M (4%
Slide 28: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 2Q23 1Q23 4Q22 3Q22 2Q22 Vision Care2 Contact Lens $215M $226M $219M $222M $213M Consumer $431M $361M $405M $375M $375M Total Revenue $646M $587M $624M $597M $588M Surgical1 Implantables $47M $44M $49M $45M $49M Equipment $46M $44M $45M $42
Slide 29: YTD Total Bausch + Lomb P&L (Non-GAAP)
YTD Total Bausch + Lomb P&L1 (Non-GAAP)2 Bausch + Lomb 1Q23-2Q23 1Q22-2Q225 Reported Change Constant Currency Change2 Vision Care Revenue4 $1,233M $1,148M 7% 10% Surgical Revenue $378M $358M 6% 8% Pharmaceuticals Revenue4 $355M $324M 10% 12% Total Revenue $1,966M $1,830M 7% 10% Adj. Gross Profit2 $1
Slide 30: YTD Total Bausch + Lomb P&L (GAAP)
YTD Total Bausch + Lomb P&L1 (GAAP) Bausch + Lomb 1Q23-2Q23 1Q22-2Q224 Reported Change Constant Currency Change2 Vision Care Revenue3 $1,233M $1,148M 7% 10% Surgical Revenue $378M $358M 6% 8% Pharmaceuticals Revenue3 $355M $324M 10% 12% Total Revenue $1,966M $1,830M 7% 10% Gross Profit $1,064M $974M
Slide 31: Non-GAAP Adjustments EPS Impact
Non-GAAP Adjustments EPS Impact ($M)2 Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Earnings per Earnings per Earnings per Earnings per Income (Expense) Share Impact Income (Expense) Share Impact Income (Expense) Share Impact Income (Expense) Share Impact Net (loss) income
Slide 32: Reconciliation of Reported Operating Income to Adjusted EBITA
Reconciliation of Reported Operating Loss/Income to Adjusted EBITA (non- GAAP)1 ($M) 2Q 2023 YTD 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 $ 562 54.3% $ 417 $ 85 $ 43 $ 1,064 54.1% $ 835 $ 162 $ 41 Amortizat
Slide 33: Reconciliation of Net 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 Six Months Ended June 30 June 30 2023 2022 2023 2022 Net (loss) income attributable to Bausch + Lomb Corporation $ (32) $ 5 $ (122) $ 25 Interest expense, net 53 43 100 63 Provi
Slide 34: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in June 30, 2023 June 30, 2022 Reported Revenue Constant Currency Revenue 1 Constant Currency Revenue as Ch
Slide 35: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in June 30, 2023 June 30, 2022 Reported Revenue Constant Currency Revenue1 Constant Currency Revenue as Cha
Slide 36: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures operating performance. Although the Company excludes impairments of intangible assets from measuring the performance of the To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles Comp
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 Amortization of intangible assets: The Company has excluded the impact of amortization of intangible asset
Slide 38: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin which are a non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions, which Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude
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