Bausch Health Companies Inc. · TSX:BHC
Bausch Health Companies — Valeant Pharmaceuticals International — FY2012 Earnings Presentation
25 slides from Bausch Health Companies's earnings presentation, Jan 6, 2012
Slide 1: 2012 Financial Guidance Conference Call
Exhibit 99.1 2012 Financial Guidance Conference Call January 6, 2012
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 preliminary results and guidance with respect to expected revenues, non-GAAP cash earnings per share, adju
Slide 3: Agenda
Agenda 2011 Update 2012 Review Other Updates 2
Slide 4: 2011 Achievements
2011 Achievements Acquisitions Completed 11 acquisitions – PharmaSwiss, Sanitas, Ortho, Dermik, iNova, Zovirax/Xerese, Elidel ~$2.9b in total purchase price Averaged 2.4x sales Established new growth platforms in South East Asia, South Africa and Russia Achieved realized synergies of $320 million fr
Slide 5: 2011 Update
2011 Update Fourth Quarter 2011 Guidance Revenue expected to be >$650 million >8% organic growth Cash EPS expected to be between $0.83 - $0.87 Adjusted cash flows from operations expected to be >$230 million* Currency headwinds higher than expected ~$40 million revenue impact ~$0.05 Cash EPS impact
Slide 6: Agenda
Agenda 2011 Update 2012 Review Other Updates 5
Slide 7: 2012 Guidance
2012 Guidance* Total revenues expected to be between $3.1 - $3.4 billion at constant currency rates ~30-40% increase over 2011 Currency fluctuations could have significant impact and not included in range Cash EPS expected to be between $3.95 – $4.20 ~40-45% increase over 2011 Adjusted Cash Flow fro
Slide 8: Organic Growth Guidance
Organic Growth Guidance We will continue to measure and report each quarter Strong organic growth remains a primary objective for each operating unit However, our primary focus is on total cash returns to shareholders All acquisitions subject to rigorous internal rate of return analysis We complete
Slide 9: New Segment Reporting
New Segment Reporting U.S. Dermatology U.S. Neurology and Other Canada/Australia Emerging Markets Latin America Central/Eastern Europe South East Asia/South Africa 8
Slide 10: U.S. Dermatology
U.S. Dermatology Revenue 2012 expectations = $900 - $950 million 60 - 75% increase over 2011 Key Growth Products Zovirax/Xerese; Acanya; CeraVe; Atralin; Carac; Renova; Retin-A Micro New product development IDP – 108 – onychomycosis - completed 2 successful Phase 3 trials IDP – 107 – oral acne IDP –
Slide 11: U.S Neurology
U.S Neurology Revenue 2012 expectations = $675 - $750 million 5-15% decrease over 2011 U.S. Neuro & Other <20% of total company revenue Wellbutrin XL is < 4% of total company revenue Key Products Wellbutrin XL; Xenazine; Legacy Valeant tail products New product launches Trobalt/Potiga Key 2012 agend
Slide 12: Canada
Canada Revenue 2012 expectations = $350 - $375 million 40-50% increase over 2011 Products under Meda JVs – we do not book the revenue, only our share of the profit (50%) e.g. Sublinox; Onsolis Key Products Cesamet; Wellbutrin XL; Tiazac XC; Sublinox; COLD-FX Key product launches in 2012 Opana, Lodal
Slide 13: Australia/New Zealand
Australia/New Zealand Revenue 2012 expectations = $200 - $250 million > 150% increase over 2011 OTC Business Cough/Cold – Difflam, Andolex, DuroTuss (iNova) Skincare – Dermaveen Dr. Lewinns (Legacy Valeant) Suncare – Hamilton’s, Invisible Zinc, Reef (Legacy Valeant) Key Rx Products Metermine; Duromi
Slide 14: Emerging Markets
Emerging Markets Revenue 2012 expectations = >$1.0 billion 40 - 50% over 2011 Key Markets Central/Eastern Europe Latin America South East Asia/South Africa 13
Slide 15: Central/Eastern Europe
Central/Eastern Europe Revenue 2012 expectations = >$625 million 30-40% increase over 2011 Currency may continue to be a headwind 22 countries Poland, Serbia, Hungary, Czech, Russia/Ukraine = ~80% of revenue Russia/Ukraine seen as new growth platforms Export opportunities Kazhakstan and other former
Slide 16: Latin America
Latin America Revenue 2012 expectations = >$275 million 10-15% over 2011 2 major countries Mexico Brazil Full Product Coverage OTC Branded Generics Similares Key 2012 agenda Target area for future acquisitions 15
Slide 17: South East Asia/South Africa
South East Asia/South Africa Revenue 2012 expectations = ~$100 million Own operations supplemented by distribution agreements Own operations – Malaysia; Philippines; Thailand; Hong Kong; South Africa Distribution – Vietnam; Indonesia; Singapore Branded, Branded Generics and OTC business Key 2012 Age
Slide 18: Agenda
Agenda 2011 Update 2012 Review Other Updates Trobalt/Potiga Update Cost Synergy Program for 2012 Currency Analysis Current Debt Structure ISTA Update New 2012 Strategic Objectives 17
Slide 19: Trobalt/Potiga Update
Trobalt/Potiga Update EU status Launch roll out began in May 2011 Currently launched in ~12 countries NICE recommendation secured Still early - less than 6 months of data in most countries U.S. status Approved June 2011 DEA scheduling completed December 2011 Launch meeting planned for late March 201
Slide 20: Cost Synergy Program in 2012
Cost Synergy Program in 2012 Expected cost synergies: $75 M Europe (PharmaSwiss & Sanitas) $85 M U.S. Dermatology (Ortho & Dermik) $25 M Australia (iNova) $15 M Canada (Afexa) ~$200 M Total Synergies Total synergy run rates to be achieved by mid-year 19
Slide 21: Currency Analysis
Currency Analysis Impact on Q411 Impact on 2012 budget actuals when when compared to 2011 compared to average rates forecasted rates Revenues: ~($75M) ~($40M) Cash EPS: ~($0.08) ~($0.05) 20
Slide 22: Current Debt Structure
Current Debt Structure Outstanding Principal Current debt = $6.7 6.75% Senior Notes due 2017 $500,000,000 billion Average interest 7.00% Senior Notes due 2020 $690,000,000 rate = ~5.7% 6.875% Senior Notes due 2018 $944,580,000 Term Loan A = $2.225 billion 6.75% Senior Notes due 2021 $650,000,000 Req
Slide 23: ISTA Update
ISTA Update Opportunity to add a new growth platform Merge Valeant’s small ophthalmology operations (<$50m) into ISTA platform Number of discussions with ISTA - no agreement on process or price Proposed $6.50 per share 68% premium over 60-day volume weighted trading average of $3.87 We are intereste
Slide 24: New 2012 Strategic Initiatives
New 2012 Strategic Initiatives 1) Increase non-US revenues to approximately 50% of the company 2) Exceed $75M synergy run-rate in Europe by end of 2012 3) Build / acquire at least once additional growth platform 4) Exceed $1.5B in emerging market sales 5) Continue to aggressively manage the Balance
Slide 25: 2012 Financial Guidance Conference Call
2012 Financial Guidance Conference Call January 6, 2012
Valeant Pharmaceuticals International — FY2012 Earnings Presentation on 6ix