Bausch Health Companies Inc. · TSX:BHC

Bausch Health Companies — Q2 2025 Earnings Presentation

53 slides from Bausch Health Companies's earnings presentation, Jul 30, 2025

  1. Slide 1: 2Q 2025 Earnings

    2Q 2025 Earnings July 30, 2025 ©2025 Bausch Health and/or one of its affiliates. 1

  2. 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 forward-looking statements speak only as of the date hereof. Bausch Health undertakes no obligation to update any of these forward-

  3. Slide 3: Agenda

    Agenda Business Update 2Q 2025 Financial Results 2025 Guidance Closing Remarks, Q&A ©2025 Bausch Health and/or one of its affiliates. 3

  4. Slide 4: Business Update

    Business Update ® ©2025 Bausch Health and/or one of its affiliates. 44

  5. Slide 5: Bausch Health (excl. B+L) Financial and Other Highlights

    Unconsolidated Bausch Health (excl. B+L) Financial and Other Highlights Revenue Adjusted Cash Balance Sheet and EBITDA1 Flow Legal Matters • 2Q25 Revenue grew 5% • 2Q25 Adjusted EBITDA1 • 2Q25 Adjusted Operating • Successfully completed on both a reported and increased by 10%, Cash Flow1 was $355M,

  6. Slide 6: Unlocking Value

    Unlocking Value Working all levers Innovation Strategic Growth Inspiring progress and technological advancement Priorities1 Expanding growth across Enriching lives through our relentless drive to deliver segments and geographies better health outcomes People Efficiency Principled leaders, creative t

  7. Slide 7: Unlocking Value

    Unlocking Value Strategic • Completed refinancing to extend maturities Priorities1 • Remain committed to evaluating all options for maximizing the value of our Bausch Health and Bausch + Lomb assets 1. See Slide 2 for further information on forward-looking statements. ©2025 Bausch Health and/or one

  8. Slide 8: Growth

    Growth • Bausch Health (excluding B+L) achieved 10% year-over-year Adjusted EBITDA 2 growth on a reported basis • Omnichannel implementation for Xifaxan® supporting 6th consecutive quarter of top line organic2 revenue growth in Salix Strategic Priorities1 • Salix’s launch of “I Wish I Knew” campaign

  9. Slide 9: Innovation

    Innovation • Strategic partnership with YUN NV announced in June with an expected launch of new probiotherapy solutions in Poland later this year • Expanding into cardiometabolic market in Latin America, leveraging our expertise and infrastructure • RED-C program for the prevention and delay of the

  10. Slide 10: Bausch Health (excl. B+L) Delivers

    Unconsolidated Bausch Health (excl. B+L) Delivers 9th 6th Consecutive quarter of Revenue and Adjusted EBITDA1 growth Consecutive quarter of Salix organic1 growth 115% 26% Organic1 Revenue growth in South Korea for Solta Solta organic1 Revenue growth in 2Q25 14% 10th 10% Organic1 Revenue growth in U.

  11. Slide 11: 2Q 2025 Financial Results

    2Q 2025 Financial Results ©2025 Bausch Health and/or one of its affiliates. 11 11

  12. Slide 12: 2Q25 GAAP Financial Results

    Consolidated 2Q25 GAAP Financial Results Amounts in millions USD, except EPS amounts Three Months Ended Favorable (Unfavorable) June 30, 2025 June 30, 2024 Reported Revenues $2,530 $2,403 5% Gross Profit $1,510 $1,409 7% Gross Margin 59.7% 58.6% 110 bps Selling, A&P $628 $587 (7%) G&A $266 $245 (9%)

  13. Slide 13: 2Q25 Non-GAAP Financial Results

    Consolidated 2Q25 Non-GAAP1 Financial Results Amounts in millions USD Three Months Ended Favorable (Unfavorable) June 30, 2025 June 30, 2024 Reported Constant Currency1 Revenues (Same as reported) $2,530 $2,403 5% 4% Adj. Gross Profit 1 $1,787 $1,704 5% 4% Adj. Gross Margin 1 70.6% 70.9% (30 bps) -

  14. Slide 14: 2Q25 Adjusted EBITDA & Adjusted Cash Flow from Operations

    Consolidated 2Q25 Adjusted EBITDA1,2 & Adjusted Cash Flow from Operations1 Amounts in millions USD 2Q25 Adjusted Cash Flow 2Q25 Adjusted EBITDA1,2 from Operations1,3 $676 $355 $871 $442 $195 $86 Bausch Health (Excl. B+L) Bausch + Lomb Bausch Health (Excl. B+L) Bausch + Lomb BHC (Excl. B+L): 10% Adj.

  15. Slide 15: 2Q25 Revenue

    Consolidated 2Q25 Revenue Amounts in millions USD Consolidated Revenue vs 2Q24 (Excl. B+L) $2,530 $2,403 17% 22% 50% $1,252 10% 59% $1,278 24% 18% 2Q25 2Q24 Salix International Solta Medical Diversified Vision Care Surgical Pharmaceuticals Reported: 5% Organic1: 4% Reported: 5% Organic1: 5% Reported

  16. Slide 16: Salix Segment – 2Q25

    Unconsolidated Salix Segment – 2Q25 Amounts in millions USD Segment Mix Revenue vs. 2Q24 Highlights Product Revenue TRx2 • Xifaxan® Retail Rx +6%; NRx3 +7%​; 7% Extended Units +7% 6% 10% 6% 3% • Xifaxan® direct-to-consumer $627 14% (4%) investment continuing to activate new patients, NBRx4 +8% 99% (

  17. Slide 17: International Segment – 2Q25

    Unconsolidated International Segment – 2Q25 Amounts in millions USD Geographic Mix Revenue vs. 2Q24 Highlights Region Reported Organic1 • EMEA – 10th consecutive quarter of organic1 growth​ EMEA 12% 6% 23% 50% • Canada – Promoted brands $278 Canada 12% 15% supporting growth; Aided by select one-time

  18. Slide 18: Solta Medical Segment – 2Q25

    Unconsolidated Solta Medical Segment – 2Q25 Amounts in millions USD Geographic Mix Revenue vs. 2Q24 Highlights Region Reported Organic1 • Global growth driven by volume expansion 18% Asia Pacific 28% 28% 5% • South ​Korea +115%1; China +4%1 $128 North America 19% 19% EMEA 21% 21% • U.S +14%1; Canada

  19. Slide 19: Diversified Segment – 2Q25

    Unconsolidated Diversified Segment – 2Q25 Amounts in millions USD Segment Mix Revenue vs. 2Q24 Highlights Business Reported Organic1 • Neurology – Driven by expected 25% non-recurrence of DoD demand for Neurology (8%) (8%) Cardizem® 10% Dermatology (26%) (26%) $219 • Dermatology – Driven by lower ne

  20. Slide 20: Bausch + Lomb – 2Q25

    Unconsolidated Bausch + Lomb – 2Q25 Amounts in millions USD Vision Care Surgical Pharmaceuticals $1,278 $1,216 66% 70% 24% 56% $753 $216 $309 34% 30% 20% Consumer Contact Lens Implantables Equipment Consumables/Other U.S. International 2Q25 2Q24 Reported: 5% Organic1: 3% Reported: 8% Organic1: 6% Re

  21. Slide 21: Bausch Health (excl. B+L) Revenue & Segment Profit – 2Q25

    Unconsolidated Bausch Health (excl. B+L) Revenue & Segment Profit1 – 2Q25 Amounts in millions USD Revenue Segment Profit1 Highlights 2Q25 vs. 2Q24 2Q25 vs. 2Q24 Salix $627 12% Salix $455 21% → Operating leverage on strong revenue growth International $278 1% International $78 (9%) → Macroeconomic ch

  22. Slide 22: Bausch Health (excl. B+L) Debt

    Unconsolidated Bausch Health (excl. B+L) Debt As of 2Q25, amounts in millions USD 207 14,666 84 53 14,655 355 NET DEBT DECREASED BY $11M 1Q25 Net Debt1 2Q25 Refinancing 2Q25 Adj. Aggregate 2Q25 Other 2Q25 Net Debt1 Impact2 Operating Legal Payments Cash Flow3 1. Debt values are shown at principal val

  23. Slide 23: 2025 Guidance

    2025 Guidance ©2025 Bausch Health and/or one of its affiliates. 23 23

  24. Slide 24: Full Year 2025 Guidance

    Consolidated Full Year 2025 Guidance1,2 All amounts are approximate, in billions USD 2025 Guidance1,2 2025 Guidance1,2 Bausch Health Companies Prior as of April 30, 2025 Current as of July 30, 2025 Net Revenue $9.950 - $10.200 $10.000 - $10.250 Adjusted EBITDA1 $3.475 - $3.625 $3.485 - $3.635 Bausch

  25. Slide 25: 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. 25

  26. Slide 26: Driving Results, Advancing Strategy & Unlocking Value

    Driving Results, Advancing Strategy & Unlocking Value1 Achieved Ninth Consecutive Quarter of Growth Focusing on Unlocking Value Delivering On Our Strategic Priorities Reaffirming Guidance 1. See Slide 2 for further information on forward-looking statements. ©2025 Bausch Health and/or one of its affi

  27. Slide 27: Appendix

    Appendix ©2025 Bausch Health and/or one of its affiliates. 27

  28. Slide 28: 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 First and only FDA-approved fixed-dose, triple-combination CABTREO® topical treatment for acne; second most successful launch First triple combination in US in 2024 by IQVIA product

  29. Slide 29: Balance Sheet Summary

    Consolidated Balance Sheet Summary Amounts in millions USD June 30, 2025 December 31, 2024 December 31, 2023 Cash and cash equivalents1 $1,743 $1,201 $962 Revolving Credit Facilities - $110 5 $275 5 AR Credit Facility $300 $300 $350 Senior Secured Debt (principal amount)2 $16,438 $15,233 $15,203 Sen

  30. Slide 30: Bausch Health (excl. B+L) Debt Maturity Profile

    Unconsolidated Bausch Health (excl. B+L) Debt Maturity Profile1,2 As of 2Q25, amounts in millions USD $5,000 Bausch Health $4,309 $4,400 (excl. B+L) Debt $3,995 Total: $4,000 $605 $16.1B1 $779 Restricted: $15.8B Unrestricted: $0.3B3 $3,000 $352 $23 Increased debt by: $4,400 $2,000 $3,374 ~$520M $1,6

  31. Slide 31: YTD GAAP Financial Results

    Consolidated YTD GAAP Financial Results Amounts in millions USD, except EPS amounts Six Months Ended Favorable (Unfavorable) June 30, 2025 June 30, 2024 Reported Revenues $4,789 $4,556 5% Gross Profit $2,812 $2,647 6% Gross Margin 58.7% 58.1% 60 bps Selling, A&P $1,225 $1,152 (6%) G&A $536 $474 (13%

  32. Slide 32: YTD Non-GAAP Financial Results

    Consolidated YTD Non-GAAP1 Financial Results Amounts in millions USD Six Months Ended Favorable (Unfavorable) June 30, 2025 June 30, 2024 Reported Constant Currency1 Revenues $4,789 $4,556 5% 5% Adj. Gross Profit 1 $3,367 $3,237 4% 4% Adj. Gross Margin 1 70.3% 71.0% (70 bps) - Selling, A&P (Same as

  33. Slide 33: 2Q25 & YTD25 Revenue Performance

    Consolidated 2Q25 & YTD25 Revenue Performance Amounts in millions USD 2Q25 2Q24 Reported Organic1 YTD25 YTD24 Reported Organic1 Salix $627 $558 12% 12% $1,169 $1,057 11% 9% International $278 $276 1% 1% $540 $541 0% 3% Solta Medical $128 $102 25% 26% $241 $190 27% 29% Neurology $118 $128 (8%) (8%) $

  34. Slide 34: Inventory in Select U.S. Businesses (QTD)

    Unconsolidated Inventory in Select U.S. Businesses (QTD)1 Months on Hand As of Mar 31, As of June 30, As of Mar 31, As of June 30, Business Units Change 2Q24 Change 2Q25 2024 2024 2025 2025 Dermatology 1.20 1.16 (0.04) 1.03 1.09 0.06 Neurology 1.21 1.08 (0.13) 1.16 1.17 0.01 Salix 1.12 1.18 0.06 0.9

  35. Slide 35: Inventory in Select U.S. Businesses (YTD)

    Unconsolidated Inventory in Select U.S. Businesses (YTD)1 Months on Hand As of Dec 31, As of June 30, Change As of Dec 31, As of June 30, Change Business Units 2023 2024 YTD24 2024 2025 YTD25 Dermatology 1.04 1.16 0.12 1.08 1.09 0.01 Neurology 1.18 1.08 (0.10) 1.02 1.17 0.15 Salix 1.20 1.18 (0.02) 1

  36. Slide 36: Other Financial Information

    Consolidated Other Financial Information Amounts in millions USD Three Months Ended Favorable (Unfavorable) Six Months Ended Favorable (Unfavorable) Constant Constant June 30, 2025 June 30, 2024 Reported Currency1 June 30, 2025 June 30, 2024 Reported Currency1 Cash Interest Paid2 $393 $492 20% 20% $

  37. Slide 37: Non-GAAP Adjustments EPS Impact

    Consolidated Non-GAAP Adjustments EPS Impact Amounts in millions USD, except EPS impact Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Income EPS Income EPS Income EPS Income EPS (Expense) Impact (Expense) Impact2 (Expense) Impact (Expense) Impact2 Net In

  38. Slide 38: 2Q25 Reconciliation of Reported Operating Income to Adjusted EBITA

    Consolidated 2Q25 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 Amounts in millions USD 2Q25 2Q24 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

  39. Slide 39: YTD25 Reconciliation of Reported Operating Income to Adjusted EBITA

    Consolidated YTD25 Reconciliation of Reported Operating Income to Adjusted EBITA (Non-GAAP)1 Amounts in millions USD YTD25 YTD24 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

  40. Slide 40: 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 June 30, Six months ended June 30, 2025 2024 2025 2024 Net Income (Loss) $128 ($1) $42 ($78) Interest expense, net 452 342 771 688 Provision for income taxes 12 49 51

  41. Slide 41: 2Q25 Segment Profit Reconciliation to Adjusted EBITDA

    Consolidated 2Q25 Segment Profit2 Reconciliation to Adjusted EBITDA1 Amounts in millions USD Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Segment Profit Revenue Segment Profit2 Segment Profit Margin Revenue Segment Profit2 Margin Salix $627 $455 73% $558 $377 68% International 2

  42. Slide 42: 2Q25 Reconciliation of Reported Revenue to Organic Revenue

    Consolidated 2Q25 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 Amounts in millions USD Three Months Ended Change in Change in Reported Organic June 30, 2025 June 30, 2024 Revenue Revenue1 Changes Organic Organic Revenue in Exchange Revenue Revenue Divestitures

  43. Slide 43: YTD25 Reconciliation of Reported Revenue to Organic Revenue

    Consolidated YTD25 Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1 Amounts in millions USD Six Months Ended Change in Change in Reported Organic June 30, 2025 June 30, 2024 Revenue Revenue1 Changes Organic Organic Revenue in Exchange Revenue Revenue Divestitures

  44. Slide 44: 2Q25 & YTD25 Reconciliation of Cash Provided by Operating Activities

    Consolidated 2Q25 & YTD25 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flow from Operations (Non-GAAP)1 Amounts in millions USD Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Cash provided by operating activities $289 $380 $500 $591 Net

  45. Slide 45: 2Q25 & YTD25 Reconciliation of Cash Provided by Operating Activities

    Consolidated 2Q25 & YTD25 Reconciliation of Reported Cash Provided by Operating Activities to Adjusted Cash Flow from Operations (Non-GAAP)1 Three Months Ended Six Months Ended Amounts in millions USD June 30, 2025 June 30, 2025 Bausch Health Bausch Health Bausch Health Bausch Health Companies Inc.

  46. Slide 46: Trailing Twelve Months Adjusted EBITDA

    Consolidated Trailing Twelve Months Adjusted EBITDA1 Amounts in millions USD Trailing Twelve Months Ended Jun-25 Mar-25 Dec-24 Sep-24 Jun-24 Net Income (Loss) $48 ($81) ($72) ($217) ($507) Interest expense, net 1,438 1,328 1,355 1,383 1,377 Provision for income taxes 233 270 239 168 153 Depreciation

  47. Slide 47: 2Q25 Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA

    Consolidated 2Q25 Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA1 Amounts in millions USD Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) Comp

  48. Slide 48: YTD25 Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA

    Consolidated YTD25 Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA1 Amounts in millions USD Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Bausch Health Bausch + Lomb Bausch Health Bausch Health Bausch + Lomb Bausch Health Companies Inc. Corporation (excl. B+L) Compani

  49. Slide 49: Non-GAAP Appendix

    Non-GAAP Appendix Description of Non-GAAP Financial Measures certain severance-related costs. Investors should understand that the outcome of these transformation initiatives may To supplement the financial measures prepared in accordance with U.S. GAAP, the Company uses certain non-GAAP result in f

  50. Slide 50: 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

  51. Slide 51: 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

  52. Slide 52: Non-GAAP Appendix

    Non-GAAP Appendix Adjusted Gross Profit and Adjusted Gross Margin Total Adjusted Operating Expenses Adjusted gross profit (non-GAAP) represents gross profit (its most directly comparable GAAP financial measure) adjusted for Other Total Adjusted Operating Expenses (non-GAAP) represents operating expe

  53. Slide 53: 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

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