Bausch Health Companies Inc. · TSX:BHC

Bausch Health Companies — Valeant Pharmaceuticals International — Shareholder Meeting (June 2016)

27 slides from Bausch Health Companies's shareholder meeting presentation, Jun 14, 2016

  1. Slide 1: Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting

    Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting June 14, 2016 Laval, Quebec, Canada

  2. Slide 2: Introductions

    Introductions  Board of Directors  Executive Management  Joseph Papa  Thomas Appio  William Ackman  Robert Chai-Onn  Dr. Frederic Eshelman  Dr. Ari Kellen  Stephen Fraidin  Dr. Pavel Mirovsky  D. Robert Hale  Robert Rosiello  Robert Ingram  Anne Whitaker  Robert Power  Thomas Ross, S

  3. Slide 3: Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting

    Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting June 14, 2016 Laval, Quebec, Canada

  4. Slide 4: Election of Directors

    Election of Directors Total Votes 57% Voted For 98% Withheld 1.3% Votes as of 6/14/16

  5. Slide 5: Approval of Executive Compensation Plan

    Approval of Executive Compensation Plan Total Votes 58% Voted For 62% Abstain .3% Votes as of 6/14/16

  6. Slide 6: PricewaterhouseCoopers as Auditors

    PricewaterhouseCoopers as Auditors Total Votes 76% Voted For 99% Withheld 1% Votes as of 6/14/16

  7. Slide 7: Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting

    Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting June 14, 2016 Laval, Quebec, Canada

  8. Slide 8: 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 expected future performance of Valeant Pharmaceuticals International, Inc. (“Valeant” or the “Company”) an

  9. Slide 9: 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 including (i) Adjusted EBITDA, (ii) Cash flow available for debt repayment and other purposes (non-GAAP) an

  10. Slide 10: Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting

    Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting June 16, 2016 Laval, Quebec, Canada

  11. Slide 11: Strong Global Brands

    Strong Global Brands U.S. Gastrointestinal U.S. Dermatology (1) U.S. Ophthalmology U.S. Consumer and Eye Care (B+L) U.S. Oncology, Dentistry, Emerging markets (2) Ex-U.S. developed markets (2) Women’s Health, Neuro/Other (1) Including Solta and Obagi. (2) Including Ophthalmology, Dermatology, and GI

  12. Slide 12: Valeant's Global ~$3.5B Consumer-Oriented Business

    Valeant’s Global ~$3.5B1 Consumer-Oriented Business (includes Bausch+Lomb2, Skin Care, Other OTC) North Asia W. Europe 11% of Global Canada 19% of Global Consumer Consumer Japan 4% of Global Consumer 5% of Global Consumer U.S. Southeast Asia 45% of Global Consumer 3% of Global Consumer Mexico 2% of

  13. Slide 13: Current State of the Business

    Current State of the Business  We have the leading portfolio of dermatology brands and the strongest new product pipeline  Great global platforms (Bausch + Lomb)  Highly diversified product portfolio  Durable consumer, ophthalmic, and branded generic businesses  Strong cash flow generation But…

  14. Slide 14: Liquidity and Capital Structure Update

    Liquidity and Capital Structure Update  Solid current and forecasted liquidity position  $1.3B cash as of March 31, 2016  $730M permanent debt repayment year-to-date  Repaid in Q1  $145M scheduled amortization  $260M term loan maturities  Repaid in Q2  $125M for excess cash flow payment  $1

  15. Slide 15: Cash Flow Available for Debt Repayment and Other Purposes (non-GAAP)

    Cash Flow Available for Debt Repayment and Other Purposes (non-GAAP)1 $M 2016 Adjusted EBITDA (non-GAAP)1 (midpoint of guidance) ~$4,875 Less: Cash Interest Expense ~$1,700 Taxes (net of NOL benefit)2 ~$180 Change in Working Capital ~$0 Cash Restructuring ~$150 Contingent Consideration/Milestones ~$

  16. Slide 16: Valeant's Stabilization Plan

    Valeant’s Stabilization Plan 1. Drive Engagement  Re-recruit Valeant employees  Add new outside talent  Invest in relationships with patients, prescribers, payors and investors 2. Reallocate Strategic Resources  Fix Dermatology business  Accelerate Salix growth  Focus R&D investment in growth/

  17. Slide 17: Focus on Xifaxan Unmet Medical Need

    Focus on Xifaxan Unmet Medical Need Significant unmet need remains with hepatic encephalopathy (HE) & IBS-D patients HE Opportunity (>$5B) IBS-D Opportunity  Experts estimate that 5.5 million people in the  10-15% of the U.S. adult population suffers from US have cirrhosis1 IBS, many of which are

  18. Slide 18: R&D Highlights for 2016

    R&D Highlights for 2016 Early Stage1 Late Stage2 Significant active U.S. programs as of May 31, 2016 Surgical 3 28 31 Consumer 9 10 19 Dermatology3 10 8 18 Contact Lenses 3 6 9 Generics 2 4 6 Ophthalmology 1 3 4 Over 20 new GI 1 2 3 product launches in 2016 Inflammation 11 Total 30 61 1 Prior to Pha

  19. Slide 19: Programs Currently at the FDA

    Programs Currently at the FDA Program Indication Submission PDUFA Date Proposed: “For the treatment of opioid- induced constipation in adult patients with chronic non-cancer pain and for the treatment of opioid-induced constipation Relistor Oral in adult patients with advanced illness NDA July 19, 2

  20. Slide 20: 2016 R&D Events

    2016 R&D Events Congress Posters Date American Optometric Association 3 accepted June 2016 American Society of Clinical Oncology 6 accepted June 2016 National Association of Nurse Practitioners in Woman’s Health 1 accepted September 2016 North American Menopause Society 1 planned October 2016 Fall C

  21. Slide 21: Valeant Has a Strong Future

    Valeant Has a Strong Future  Strong global portfolio of brands  Durable emerging markets business/branded generics/OTC  Durable consumer business (OTC, Contact lens, Vitamins, Ophthalmic solutions)  Improved U.S. market access (managed care)  Plan to fix dermatology TRx profitability and drive

  22. Slide 22: Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting

    Valeant Pharmaceuticals International, Inc. 2016 Annual Meeting June 14, 2016 Laval, Quebec, Canada

  23. Slide 23: Appendix

    Appendix 23 VALEANT Pharmaceuticals International, | Ine

  24. Slide 24: Reconciliation of reported Net Income (Loss) to EBITDA and Adjusted EBITDA

    Reconciliation of reported Net Income (Loss) to EBITDA and Adjusted EBITDA Three Months Ended Year Ended $M March 31, December 31, 2015 2016 (restated) 2015 Net income (loss) attributable to Valeant Pharmaceuticals International, Inc. $ (373.7) $ 97.7 $ (291.7) Interest expense, net 425.7 296.9 1,55

  25. Slide 25: Non-GAAP Appendix (1/3)

    Non-GAAP Appendix (1/3) Description of Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures, as follows. Other companies may use similarly titled non-GAA

  26. Slide 26: Non-GAAP Appendix (2/3)

    Non-GAAP Appendix (2/3) • Acquisition-related contingent consideration: With respect to historical calculations of Adjusted EBITDA, the Company has excluded the impact of acquisition- related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with

  27. Slide 27: Non-GAAP Appendix (3/3)

    Non-GAAP Appendix (3/3) Cash Flow Available for Debt Repayment and Other Purposes Cash Flow Available for Debt Repayment and Other Purposes reflects certain adjustments, as further described below, to Adjusted EBITDA. Management uses this non-GAAP measure in analyzing the Company’s ability to servic

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