Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Q4 2024 Earnings Presentation
60 slides from Bausch Health Companies's earnings presentation, Feb 19, 2025
Slide 1: ©2025 Bausch Health and/or one of its affiliates.
©2025 Bausch Health and/or one of its affiliates. 1
Slide 2: Forward-Looking Statements; Non-GAAP Information
Forward-Looking Statements; Non-GAAP Information Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted applicable securities
Slide 3: Agenda
Agenda Business Update 4Q & FY 2024 Financial Results 2025 Guidance Closing Remarks, Q&A Thermage® FLX Launch Meeting in China 3 ©2025 Bausch Health and/or one of its affiliates. Confidential and proprietary. FOR INTERNAL USE ONLY. 3
Slide 4: Business Update
Business Update Salix announces partnership with Bellamy Young as Spokesperson for Xifaxan® ©2025 Bausch Health and/or one of its affiliates. 4
Slide 5: Bausch Health (excl. B+L) Financial Highlights
Unconsolidated Bausch Health (excl. B+L) Financial Highlights Revenue Adjusted Cash Value EBITDA1 Flow Creation • 4Q24 Revenue grew 4% • 4Q24 Adj. EBITDA1 • 4Q24 Adjusted Operating • Relentlessly focused on and 7% on a reported and increased by 7%, while Cash Flow1 of $567M, up enhancing the value o
Slide 6: Strategic Priorities
People Principled leaders, creative thinkers, problem solvers, and result seekers Growth Expanding growth across segments and geographies Strategic Priorities Innovation Enriching lives through our relentless Inspiring innovation and drive to deliver better health technological advancement outcomes
Slide 7: People Strategic Priorities
People • Added key personnel to executive leadership team Strategic Priorities Enriching lives through our relentless drive to deliver better health outcomes JJ Charhon Aimee Lenar Jonathan Sadeh, Chief Financial Officer Executive Vice M.D., M.Sc. President, US Pharma Executive Vice President, CMO a
Slide 8: Growth and Innovation Strategic Priorities
Growth • In 2024, Solta grew 27% while Xifaxan® grew 10% with momentum • Durable International segment grew mid-single digits by geography with Canada and EMEA being Strategic Priorities1 the strongest contributors Enriching lives through our relentless drive to deliver better health outcomes Innova
Slide 9: Efficiency and Unlocking Value Strategic Priorities
Efficiency • Strong supply chain expertise, nimble in meeting unexpected supply needs Strategic Priorities1 • Solid execution on CABTREO ® launch Enriching lives through our relentless through 2024 drive to deliver better health outcomes Unlocking Value • Fully committed to utilizing all levers at o
Slide 10: Bausch Health (excl. B+L) Delivers Growth
Unconsolidated Bausch Health (excl. B+L) Delivers 16% • Xifaxan® volume growth in 4Q24 remains broad Xifaxan® revenue based, with ~5% retail script growth and ~18% growth in fourth quarter non-retail extended unit growth with solid Rx2 growth • Solta grew 34% in 4Q24, again led by Asia Pacific 27% •
Slide 11: 4Q & FY 2024 Financial Results
4Q & FY 2024 Financial Results ©2025 Bausch Health and/or one of its affiliates. 11
Slide 12: 4Q 2024 GAAP Financial Results
Consolidated 4Q 2024 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) December 31, 2024 December 31, 2023 Reported Revenues $2,559 $2,408 6% GAAP Gross Profit $1,550 $1,421 9% GAAP Gross Margin 60.6% 59.0% 160 bps Selling, A&P $582 $550 (6
Slide 13: FY 2024 GAAP Financial Results
Consolidated FY 2024 GAAP Financial Results Amounts in millions USD, except EPS amounts Twelve Months Ended Favorable (Unfavorable) December 31, 2024 December 31, 2023 Reported Revenues $9,625 $8,757 10% GAAP Gross Profit $5,737 $5,067 13% GAAP Gross Margin 59.6% 57.9% 170 bps Selling, A&P $2,299 $2
Slide 14: 4Q 2024 Non-GAAP Financial Results
Consolidated 4Q 2024 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) December 31, December 31, Reported Constant Currency1 2024 2023 Revenues $2,559 $2,408 6% 7% Adj. Gross Profit 1 $1,853 $1,724 7% 9% Adj. Gross Margin 1 72.4% 71.6% 80 bps - Selling, A
Slide 15: FY 2024 Non-GAAP Financial Results
Consolidated FY 2024 Non-GAAP1 Financial Results Amounts in millions USD Twelve Months Ended Favorable (Unfavorable) December 31, December 31, Reported Constant Currency1 2024 2023 Revenues $9,625 $8,757 10% 11% Adj. Gross Profit 1 $6,925 $6,221 11% 12% Adj. Gross Margin 1 71.9% 71.0% 90 bps - Selli
Slide 16: 4Q 2024 Revenue
Consolidated 4Q 2024 Revenue Amounts in millions USD Consolidated Revenue vs 4Q23 (excl. B+L) $2,559 $2,408 18% 22% 49% $1,279 11% 57% $1,280 25% 18% 4Q24 4Q23 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 6% Organic1: 9% Reported: 4% Organic1: 7% Repor
Slide 17: FY 2024 Revenue
Consolidated FY 2024 Revenue Amounts in millions USD Consolidated Revenue vs FY23 (excl. B+L) $9,625 18% $8,757 23% 48% $4,834 9% 57% $4,791 25% 20% FY24 FY23 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 10% Organic1: 8% Reported: 5% Organic1: 6% Repor
Slide 18: 4Q24 & FY24 Adjusted EBITDA
Consolidated 4Q24 & FY24 Adjusted EBITDA1,2 Amounts in millions USD Adjusted EBITDA1, 4Q 2024 Adjusted EBITDA1, FY 2024 $712 $2,553 $972 $3,425 $260 $872 Bausch Health (Excl. B+L) Bausch + Lomb Bausch Health (Excl. B+L) Bausch + Lomb BHC (Excl. B+L): 7% Adj. EBITDA1 Growth BHC (Excl. B+L): 8% Adj. E
Slide 19: 4Q24 & FY24 Adjusted Cash Flow from Operations
Consolidated 4Q24 & FY24 Adjusted Cash Flow from Operations1 Amounts in millions USD Adjusted Cash Flow from Adjusted Cash Flow from Operations1, 4Q 2024 Operations1, FY 2024 $567 $1,308 $601 $1,572 $263 $32 Bausch Health (Excl. B+L) Bausch + Lomb Bausch Health (Excl. B+L) Bausch + Lomb BHC (Excl. B
Slide 20: Salix Segment – 4Q 2024
Unconsolidated Salix Segment – 4Q 2024 Amounts in millions USD Segment Mix Revenue vs. 4Q23 Highlights Product Revenue TRx2 • Xifaxan® NRx3 up 5% 7% 6% 16% 5% • Strong Xifaxan® non-retail growth $634 (9%) (6%) • Trulance® healthy 4Q24 growth 6% 2% 87% • Relistor® flat for FY 2024 Totals: Xifaxan Rel
Slide 21: International Segment – 4Q 2024
Unconsolidated International Segment – 4Q 2024 Amounts in millions USD Segment Mix Revenue vs. 4Q23 Highlights Region Reported Organic1 • Canada – Strong Wellbutrin demand, promoted products +13% Canada 9% 16% 24% 50% • EMEA – Good growth in Poland and other markets2 $279 EMEA 4% 5% LATAM (25%) (14%
Slide 22: Solta Medical Segment – 4Q 2024
Unconsolidated Solta Medical Segment – 4Q 2024 Amounts in millions USD Geographic Mix Product Mix Highlights • Global growth driven by higher volumes 14% 7% 22% • China +49%2, fueled by Thermage® FLX $138 $138 • Korea +165%2 from consumer demand 78% Reported: 34% Organic1: 35% 79% APAC US Other Cons
Slide 23: Diversified Segment – 4Q 2024
Unconsolidated Diversified Segment – 4Q 2024 Amounts in millions USD Segment Mix Revenue vs. 4Q23 Highlights Business Reported Organic1 • Neurology – Benefit in 4Q23 from competitor supply disruptions 23% Neurology 1% 1% • Dermatology – CABTREO® launch Dermatology (13%) (4%) offset by discontinuatio
Slide 24: Bausch Health (excl. B+L) Revenue – FY 2024
Unconsolidated Bausch Health (excl. B+L) Revenue – FY 2024 Amounts in millions USD Salix International Solta Medical Diversified 8% 25% 5% 22% 2% 28% 48% 8% $2,333 $1,111 $440 $950 10% 85% 78% 57% 24% Xifaxan Relistor Trulance Other EMEA Latam Canada Consumables Consoles Neurology Dermatology Generi
Slide 25: Bausch + Lomb – 4Q 2024
Unconsolidated Bausch + Lomb – 4Q 2024 Amounts in millions USD Vision Care Surgical Pharmaceuticals $1,280 $1,173 26% 75% 66% $723 $231 49% $326 34% 25% 25% Consumer Contact Lens Implantables Equipment Consumables/Other U.S. International 4Q24 4Q23 Reported: 9% Organic1: 10% Reported: 9% Organic1: 1
Slide 26: Bausch + Lomb – FY 2024
Unconsolidated Bausch + Lomb – FY 2024 Amounts in millions USD Vision Care Surgical Pharmaceuticals $4,791 $4,146 25% 74% 65% $2,739 $843 51% $1,209 35% 24% 26% Consumer Contact Lens Implantables Equipment Consumables/Other U.S. International 4Q24 4Q23 Reported: 16% Organic1: 10% Reported: 8% Organi
Slide 27: Bausch Health (excl. B+L) Revenue & Segment Profit – 4Q 2024
Unconsolidated Bausch Health (excl. B+L) Revenue & Segment Profit1 – 4Q 2024 Amounts in millions USD Revenue Segment Profit1 Highlights 4Q 24 vs. 4Q 23 4Q 24 vs. 4Q 23 Salix $634 9% Salix $460 10% → Double-digit segment profit1 growth International $279 (4%) International $98 (1%) → Effective cost m
Slide 28: Bausch Health (excl. B+L) Debt
Unconsolidated Bausch Health (excl. B+L) Debt As of 4Q 2024, amounts in millions USD 15,670 15,639 15,270 300 300 31 400 400 14,752 567 80 2,218 2,187 NET DEBT DECREASED BY $518M – STRONG CASH 7905 7905 GENERATION IN 4Q 2024 Total AR TL Secured Debt 5,247 5,247 Unsecured Debt 3Q24 Net Debt2 3Q24 Cas
Slide 29: 2025 Guidance
2025 Guidance ©2025 Bausch Health and/or one of its affiliates. 29
Slide 30: Full Year 2025 Guidance
Full Year 2025 Guidance1,2 All amounts are approximate, in billions USD 2025 Guidance1,2 Bausch Health Companies Net Revenue $9.900 - $10.150 Adjusted EBITDA1 $3.525 - $3.675 Bausch + Lomb STRENGTH OF OUR PROFIT AND CASH FLOW Net Revenue $4.950 - $5.050 PERFORMANCE IN 2024 Adjusted EBITDA1 $0.900 -
Slide 31: Bausch Health (excl. B+L) 2025 Guidance Summary
Unconsolidated Bausch Health (excl. B+L) 2025 Guidance1,4 Summary All amounts are approximate, in millions USD Year Over Year FY 2024 Actuals FY 2025 Guidance1,2,4 Trend Net Revenue 5% 2% - 6% = Adj. Gross Margin1 81% ~81% = Adj. EBITDA1 8% 3% - 7% - Adj. Cash Flow from Operations1,3 $1,308 $975 - $
Slide 32: Value Creation Framework
Value Creation Framework1 Increase Bausch Health Maximize the Value of Optimize Our Enterprise Value Our BLCO Asset Capital Structure WORKING ALL LEVERS OF VALUE CREATION 1. See Slide 2 for further information on forward-looking statements. ©2025 Bausch Health and/or one of its affiliates. 32
Slide 33: Strategic Priorities
People Drive results-oriented culture of accountability Growth Deliver on Revenue, Adjusted EBITDA 2 and Adjusted Operating Cash Flow 2 Guidance Strategic Priorities1 Innovation Enriching lives through our relentless Intensify focus and operating rigor behind R&D and drive to deliver better health o
Slide 34: Key Takeaways
Key Takeaways Achieved Seventh Exceeded/High-End Carrying Delivering Consecutive Quarter of 2024 Guidance Momentum On Our of Growth w/Strong Cash Flow Into 20251 Commitments OUR EXECUTION PROVIDES A STRONG FOUNDATION FOR CONTINUED MOMENTUM ACROSS OUR BUSINESS 1. See Slide 2 for further information o
Slide 35: Appendix
Appendix ©2025 Bausch Health and/or one of its affiliates. 35
Slide 36: On Track With Our Key R&D Initiatives
On Track With Our Key R&D Initiatives1 Key Clinical Programs Phase 1 Phase 2 Phase 3 Approval/Launch Notes DERMATOLOGY CABTREO® First and only FDA-approved fixed-dose, triple-combination First triple combination topical treatment for acne successfully launched in the U.S. product for the treatment o
Slide 37: Balance Sheet Summary
Consolidated Balance Sheet Summary Amounts in millions USD As of December 31, 2024 2023 2022 Cash and cash equivalents1 $1,201 $962 $591 Revolving Credit Facilities $110 5 $275 5 $470 AR Credit Facility $300 $350 $- Senior Secured Debt (principal amount)2 $15,233 $15,203 $13,300 Senior Unsecured Deb
Slide 38: Bausch Health (excl. B+L) Debt Maturity Profile
Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1 As of 4Q 2024, amounts in millions USD $5,290 $5,000 $999 Bausch Health (excl. B+L) Debt $4,080 Total: $4,000 $617 $643 $15.6B1 Restricted: $14.3B Unrestricted: $1.3B2 $3,000 $1,500 $2,340 Reduced debt by: $2,000 $535 $3,374 ~$30M $1,60
Slide 39: 4Q & FY 2024 Revenue Performance
Consolidated 4Q & FY 2024 Revenue Performance Amounts in millions USD 4Q24 4Q23 Reported Organic1 FY24 FY23 Reported Organic1 Salix $634 $583 9% 12% $2,333 $2,250 4% 5% International $279 $290 (4%) 1% $1,111 $1,071 4% 4% Solta Medical $138 $103 34% 35% $440 $347 27% 29% Neurology $142 $141 1% 1% $54
Slide 40: Inventory in Select U.S. Businesses (QTD)
Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Months on Hand Business As of As of Change As of As of Change Units Sep 30, 2023 Dec 31, 2023 4Q23 Sep 30, 2024 Dec 31, 2024 4Q24 Dermatology 1.17 1.04 (0.13) 1.14 1.08 (0.06) Neurology 1.18 1.18 0.00 1.12 1.02 (0.10) Salix 1.25 1.20 (0.05) 1
Slide 41: Inventory in Select U.S. Businesses (FY24)
Unconsolidated Inventory in Select U.S. Businesses (FY24)1 Months on Hand Business As of As of Change As of As of Change Units Dec 31, 2022 Dec 31, 2023 YTD23 Dec 31, 2023 Dec 31, 2024 YTD24 Dermatology 1.07 1.04 (0.03) 1.04 1.08 0.04 Neurology 1.17 1.18 0.01 1.18 1.02 (0.16) Salix 1.02 1.20 0.18 1.
Slide 42: Other Financial Information
Consolidated Other Financial Information Amounts in millions USD Three Months Ended Favorable (Unfavorable) Twelve Months Ended Favorable (Unfavorable) December 31, December 31, Constant December 31, December 31, Constant 2024 2023 Reported Currency1 2024 2023 Reported Currency1 Cash Interest Paid2
Slide 43: Non-GAAP Adjustments EPS Impact
Consolidated Non-GAAP Adjustments EPS Impact Amounts in millions USD, except EPS impact Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Income EPS Income EPS Income EPS Income EPS (Expense) Impact2 (Expense) Impact2 (Expense) Impact2 (Ex
Slide 44: 4Q24 Reconciliation of Reported Operating Income to Adjusted EBITA
Consolidated 4Q24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 Amounts in millions USD 4Q24 4Q23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit Margin Advertising G&A
Slide 45: FY24 Reconciliation of Reported Operating Income to Adjusted EBITA
Unconsolidated FY24 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 Amounts in millions USD FY24 FY23 Gross Gross Selling & R&D Operating Operating Gross Gross Selling & R&D Operating Operating Profit Margin Advertising G&A Expense Expense Income Profit Margin Advertising G
Slide 46: Reconciliation of Reported Net Income (Loss) to EBITDA and Adjusted EBITDA
Consolidated Reconciliation of Reported Net Income (Loss) to EBITDA1 and Adjusted EBITDA1 Amounts in millions USD Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 Net Income (Loss) $98 ($47) ($72) ($611) Interest expense, net 328 356 1,355 1,302 Provision for inco
Slide 47: 4Q24 Segment Profit Reconciliation to Adjusted EBITDA
Consolidated 4Q24 Segment Profit2 Reconciliation to Adjusted EBITDA1 Amounts in millions USD Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Segment Profit Revenue Segment Profit2 Segment Profit Margin Revenue Segment Profit2 Margin Salix $634 $460 73% $583 $419 72% Interna
Slide 48: FY24 Segment Profit Reconciliation to Adjusted EBITDA
Consolidated FY24 Segment Profit2 Reconciliation to Adjusted EBITDA1 Amounts in millions USD Amounts in millions USD Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023 Segment Profit Revenue Segment Profit2 Segment Profit Margin Revenue Segment Profit2 Margin Salix $2,333 $1
Slide 49: 4Q24 Reconciliation of Reported Revenue to Organic Revenue
Consolidated 4Q24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 Amounts in millions USD For Three Months Ended Change in Change in Reported Organic December 31, 2024 December 31, 2023 Revenue Revenue1 Changes Organic Divestitures Organic Revenue in Exchange Rev
Slide 50: FY24 Reconciliation of Reported Revenue to Organic Revenue
Consolidated FY24 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 Amounts in millions USD For Twelve Months Ended Change in Change in Reported Organic December 31, 2024 December 31, 2023 Revenue Revenue1 Changes Organic Divestitures Organic Revenue in Exchange Re
Slide 51: 4Q24 & FY24 Reconciliation to Adjusted Cash Flow from Operations
Consolidated 4Q24 & FY24 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flow from Operations (Non-GAAP)1 Three Months Ended Twelve Months Ended Amounts in millions USD December 31, December 31, 2024 2023 2024 2023 Cash provided by operating activities $601 $390 $1,
Slide 52: 4Q24 & FY24 Reconciliation to Adjusted Cash Flow from Operations
Consolidated 4Q24 & FY24 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flow from Operations (Non-GAAP)1 Amounts in millions USD Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2024 Bausch Health Bausch Health Bausch Health Bausch Health Compa
Slide 53: Trailing Twelve Months Adjusted EBITDA
Consolidated Trailing Twelve Months Adjusted EBITDA1 Amounts in millions USD Trailing Twelve Months Ended Dec-24 Sep-24 Jun-24 Mar-24 Dec-23 Net Loss ($72) ($217) ($507) ($479) ($611) Interest expense, net 1,355 1,383 1,377 1,347 1,302 Provision for income taxes 239 168 153 156 221 Depreciation and
Slide 54: Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA
Consolidated Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA1 Amounts in millions USD Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) 3
Slide 55: Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA
Consolidated Reconciliation of Reported Net (Loss) Income to Adjusted EBITDA1 Amounts in millions USD Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L)
Slide 56: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures (including the severance costs associated with the departure of Bausch + Lomb’s former CEO). Investors should To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP understand that the
Slide 57: Non-GAAP Appendix
Non-GAAP Appendix • Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection assets, as described below: with activities regarding the separation of the eye-health business. Separation costs are incremental costs directly related to effectuating th
Slide 58: Non-GAAP Appendix
Non-GAAP Appendix Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting • Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non- future results and evaluating current performance. This
Slide 59: Non-GAAP Appendix
Non-GAAP Appendix Adjusted Gross Profit and Adjusted Gross Margin provide consistency and comparability with our past financial performance and facilitates period-to-period comparisons of our SG&A expenses, G&A expenses and operations, as these measures eliminate the effects of separation-related co
Slide 60: Non-GAAP Appendix
Non-GAAP Appendix Constant Currency Adjusted Cash Flow from Operations excluding Bausch + Lomb is not intended to be, and may not be, representative of Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company’s financial results and Cash Flow from Operations (f
Bausch Health Companies — Q4 2024 Earnings Presentation on 6ix