Slides
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J.P. Morgan 43rd Annual Healthcare Conference January 13, 2025
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1 1 Forward-Looking Statements; Non-GAAP Information 1 This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward-looking statements”), including, but not limited to, statements regarding future prospects and performance of Bausch + Lomb Corporation (“Bausch + Lomb”, the “Company”, “we”, “us”, or “B+L”), our anticipated roadmap to accelerate growth and the steps thereof, our anticipated growth drivers and the expected timing and impact thereof, our key priorities for 2025 and beyond, the anticipated launch dates for and other details about certain of our pipeline products and R&D programs, the anticipated geographic expansions and planned line extensions for certain of our products, the expected market acceptance and performance for certain of our products (including Miebo®, and Xiidra® and the rest of the dry eye portfolio), and the expected market size for certain of the markets in which we have or expect to have products. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects,“ “predicts,” “projects,” “goals,” "intends," "plans," "should," "could," "would," "may,“ “might” "will,“ “strive,” "believes," "estimates," "potential," "target," “commit,” “forecast,” “outlook,” “guidance,” “tracking,” or "continue" and positive and negative variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs, and readers are cautioned that these statements may not be appropriate for other purposes. These forward- looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission (“SEC”) and the Canadian Securities Administrators (the “CSA”) (including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (which was filed with the SEC and CSA on February 21, 2024) and its most recent quarterly filings), which factors are incorporated herein by reference. They also include risks and uncertainties respecting the proposed plan to separate the Company into an independent, publicly traded company, separate from the remainder of Bausch Health Companies Inc. (“BHC”) (the “separation”), which include, but are not limited to, the expected benefits and costs of the separation, the expected timing of completion of the separation and its terms (including the expectation that, if the separation is to be effected through the transfer of all or a portion of BHC’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders (the “distribution”), then it will be completed following the achievement of targeted debt leverage ratios, subject to market conditions and receipt of applicable shareholder and other necessary approvals and other factors (including those described in BHC’s public statements)), the ability to complete the distribution considering the various conditions to the completion of the distribution (some of which are outside the Company’s and BHC’s control, including conditions related to regulatory matters and receipt of applicable shareholder and other approvals), the impact of any potential sales of the Company’s common shares by BHC, that market or other conditions are no longer favorable to completing the transaction, that applicable shareholder, stock exchange, regulatory or other approval is not obtained on the terms or timelines anticipated or at all, business disruption during the pendency of or following the separation, diversion of management time on separation- related issues, retention of existing management team members, the reaction of customers and other parties to the separation, the structure of the distribution, the qualification of the distribution as a tax-free transaction for Canadian and/or U.S. federal income tax purposes (including whether or not an advance ruling from the Canada Revenue Agency and/or the Internal Revenue Service will be sought or obtained), the ability of the Company and BHC to satisfy the conditions required to maintain the tax-free status of the distribution (some of which are beyond their control), other potential tax or other liabilities that may arise as a result of the distribution, the potential dis-synergy costs resulting from the separation, the impact of the separation on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets the Company is engaged in, behavior of customers, suppliers and competitors, technological developments and legal and regulatory rules affecting the Company’s business. In particular, the Company can offer no assurance that the separation will occur at all, or that any such transaction will occur on the terms and timelines or in the manner anticipated by the Company and BHC. They also include risks and uncertainties relating to acquisitions and other business development transactions the Company may pursue and complete, such as the acquisition of Xiidra® and certain other ophthalmology assets (the “XIIDRA Acquisition”) and our recent acquisition of Elios Vision, including risks that the Company may not realize the expected benefits of such transactions on a timely basis or at all and, in the case of the XIIDRA Acquisition, risks relating to increased levels of debt as a result of debt incurred to finance such transaction, including in regards to compliance with our debt covenants. Finally, they also include, but are not limited to, risks and uncertainties caused by or relating to a potential recession and other adverse economic conditions (such as inflation and slower growth), which could adversely impact our revenues, expenses and resulting margins and economic factors over which we have no control, including inflationary pressures as a result of historically high domestic and global inflation and otherwise, interest rates, foreign currency rates, and the potential effect of such factors on revenues, expenses and resulting margins. In addition, certain material factors and assumptions have been applied in making these forward-looking statements, including the assumption that the risks and uncertainties outlined above will not cause actual results or events to differ materially from those described in these forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch + Lomb undertakes no obligation to update any of these forward- looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes, unless required by law. 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 and ratios, including Constant Currency Revenue Growth (also referred to as “CC” revenue growth) and Organic Revenue Growth. The Company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP measures and ratios, address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP measures and ratios of other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. The reconciliations of these historic non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the appendix hereto. Constant currency revenue growth is calculated by adjusting or further adjusting a measure or ratio by changes in or impact of foreign currency exchange rates. Constant currency impact is determined by comparing 2024 amounts adjusted to exclude currency impact, calculated using 2023 monthly average exchange rates, to the actual 2023 reported amounts. Constant currency revenue growth is a change in GAAP revenue (its most directly comparable GAAP financial measure) adjusted for changes in foreign currency exchange rates. The Company uses Constant Currency Revenue Growth (non-GAAP) to assess performance of its reportable segments, and the Company in total, without the impact of foreign currency exchange fluctuations. The Company believes that such ratios are useful to investors as they provide a supplemental period-to-period comparison. Although changes in foreign currency exchange rates are part of our business, they are not within management’s control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the underlying business performance. Organic Revenue Growth, a non-GAAP ratio, is defined as a change on a period-over-period basis in revenues on a constant currency basis (if applicable) excluding the impact of recent acquisitions, divestitures and discontinuations (if applicable) . Organic revenue growth is a change in GAAP Revenue (its most directly comparable GAAP financial measure) adjusted for certain items, as further described below, of businesses that have been owned for one or more years. Organic revenue growth is impacted by changes in product volumes and price. The price component is made up of two key drivers: ( i) changes in product gross selling price and (ii) changes in sales deductions. The Company believes that such measures are useful to investors as they provide a supplemental period-to- period comparison. Organic revenue growth reflects adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates on revenues and (ii) the revenues associated with acquisitions, divestitures and discontinuations of businesses divested and/or discontinued. These adjustments are determined as follows: Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management’s control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact of changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue growth on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue growth excludes from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. Organic revenue growth excludes from the prior period, all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period.
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Iconic brand with >170-year heritage The most Integrated eye health company ~$4.7B LTM global revenue Market leader in Dry Eye Broad-based +10% 3Q24 YTD organic revenue growth Positioned for Next Cycle of innovation Unmatched Eye Health Platform Executing strategy to drive sustainable, profitable growth 2 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP measures and ratios. 2. For the last twelve months ended 9/30/2024. 1 2
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Vision Care +8% 3Q24 YTD Organic Revenue Growth1 Strong growth across key product franchises Surgical +9% 3Q24 YTD Organic Revenue Growth1 Building momentum in premium categories Pharma +20% 3Q24 YTD Organic Revenue Growth1 Expanding leadership in dry eye disease Delivering Growth Across All Segments 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP measures and ratios. 3
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Unmet Need in Eye Health Continues to Rise 1. World Health Organization: World report on vision. 2. Supply and demand: Navigating the future of ophthalmology (Healio). 3. Market Scope - 2021 Ophthalmic Landscape Market Report. 4. Global Prevalence of Myopia and High Myopia and Temporal Trends from 2000 through 2050’. Accelerating Prevalence of Myopia ~50% of global population expected to be myopic by 20504 Increasing Digital Lifestyle Trends ~1.4B of global population has symptoms of dry eye3 10x more eye care products used by 65+ age group vs. 65 and younger2 High Demand for Treatment >1B people have a vision impairment that is yet to be addressed1 Aging Global Population 4
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>$60B Market Growing Mid-Single Digits Global Addressable Market Revenue 1. See Slide 1 for further information on forward-looking statements. 2. CLI, Euromonitor, Market Scope, BCG, DRG, Management estimates. +5% CAGR +5% CAGR 2024E 2028E 2024E 2028E 2024E 2028E +4% CAGR Vision Care2 Surgical2 Pharma2 5 ~$19B ~$24B ~$13B ~$16B ~$31B ~$37B 1
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T O D AY • Launch new products to fuel growth • Build on broad-based sales execution • Strengthen and optimize supply chain • Drive operating efficiencies and margin expansion • Invest in innovation to drive strong, sustainable long-term growth 6 1. See Slide 1 for further information on forward-looking statements. 1 P H A S E 1 P H A S E 2 P H A S E 3 • Grow revenue at or above market • Drive selling excellence across all businesses • Build industry-leading business development platform • Cultivate leading digital capabilities in marketing, R&D, manufacturing • Enhance agility and innovation Rewire Company for Optimal Performance Innovate and Execute Accelerate Growth Executing Our Roadmap to Accelerate Growth
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77 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP measures and ratios. Driving product launch and selling excellence Broad-based performance across all segments, +10% 3Q24 YTD organic revenue growth1 Building operational excellence Deploying new capabilities and advancing broader network optimization strategy Reloading pipeline to fuel next cycle of innovation ~60 active R&D projects with focus on areas of highest unmet need Performance & Progress to Drive Growth 7
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Strengthening Dry Eye Leadership D RY E Y E P O RT F O L I O $867M LTM Revenue 1. For full product information, see www.bausch.com. 2. For the twelve months ended 9/30/2024. 8 1 2
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Driving Miebo & Xiidra Performance 6,704 10,155 12,037 12,877 14,678 4Q23 1Q24 2Q24 3Q24 4Q24 9 20,788 21,151 21,542 22,781 22,931 23,124 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 +7% +1% +5% +15% +8% Avg. Weekly TRx & Growth (% Y/Y)2Avg. Weekly TRx2 1. For full product information, see www.bausch.com. 2. IQVIA NPA Rapid Rx wk ending 12/27/24 1 +9%
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+75% INFUSE / Ultra ONEday 3Q24 YTD CC Revenue Growth2 Expanding Digital Capabilities to Drive Growth Momentum 1. For full product information, see www.bausch.com. 2. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP measures and ratios. 3. 2028 is estimate. CLI, Management estimates. Delivering Market Leading Lens Growth 10 With Multi-Year Growth Runway +12% CAGR ~$6.5B ~$3.7B 20282023 Global Daily SiHy Market3 1
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11 Fueling Consumer Growth With Innovation Preservative Free Launch Expected 2025 Expanding Lumify Franchise With Differentiated Formulations 27M 4.1M Total Dry AMD Population4 AREDS Users3 >6x 1. For full product information, see www.bausch.com. 2. B+L Consumer Data Science: Circana, Omnichannel POS CC MULO+, Latest 52 Weeks Ending 12-08-24. 3. Circana: Multi-outlet + last 52 weeks ending 05/19/24. 4. IQVIA, Market Sizing & Trends for Macular Degeneration Nov 2023; Circana Panel data last 52 weeks ending 05/19/24. Lumify® Luxe Soothing Drops 11 OTC Eye Drop Market Growth Driven by PF Products2 55% Advancing Eye Vitamin Innovation to Address Large Unmet Need in AMD 1
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Monofocal+ 12 1. For full product information, see www.bausch.com. 2. Constant currency. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAAP measures and ratios. 3. Expected Launch. See Slide 1 for further information on forward-looking statements. Trifocal 2025 EDOF 2026 Trifocal EDOF Small Aperture Gaining Growth Momentum +29% Premium IOL 3Q24 YTD CC Growth2 Expanding Comprehensive IOL Portfolio Continuing Steady Stream of Innovation3 1
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Building Scientific Talent Capabilities Elevating Cutting Edge Technologies Including Potential Game Changers Rewiring R&D Organization NEW PROGRAMS ADDED • Elios MIGS • Next-Gen Lumify® • enVista Beyond • Biomimetic Contact Lens • AREDS3 Vitamins • Dual-Action Lifitegrast • Ocular Pain • DD Myopia Control Lens • Next-Gen DD SiHy Lens • Premium FRP SiHy Lens • Intermediate AMD & GA • Adjustable IOL • siRNA for Retinal Disease • Glaucoma Neuroprotection PRIOR TO 2023 • Miebo® • enVista Aspire • enVista Envy • Lumify® PF • SiHy MF & Toric • LuxLife Trifocal • AREDS2 CoQ10 • SeeLuma • Arise Ortho-K Transforming Pipeline, Driving Innovation 13 1. For full product information, see www.bausch.com. 1
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14 First clinically validated, minimally invasive glaucoma surgery (MIGS) using an excimer laser2 ~80M people worldwide living with glaucoma3 increase in glaucoma prevalence expected from 2020 to 20404 ~47% ~20% of patients who need cataract surgery also have glaucoma or ocular hypertension5 Unlocking Surgical Growth Opportunities 1. See slide 1 for further information on forward-looking statements. 2. For full product information, see www.bausch.com. 3. https://www.hopkinsmedicine.org/health/conditions-and-diseases/glaucoma. 4. Allison K, Patel D, Alabi O. Cureus. 2020 Nov 24. 5. Tseng, VL, Yu, F, et al. JAMA. 2012 Aug. 1. 1
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15 Advancing Contact Lens Technology Hydrogel SiHy Biomimetic Category Disruptor in Daily Disposable Market Lower Oxygen Permeability Efficient Manufacturing Higher Oxygen Permeability Complex Manufacturing Higher Oxygen Permeability Efficient Manufacturing 1. See Slide 1 for further information on forward-looking statements. 1
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16 Ocular Surface PainDry Eye Disease Building Pipeline of Novel Therapeutics Next-Gen Lifitegrast Launch first dual-action therapeutic to address both evaporative and inflammatory dry eye disease pathology OJL332 Systemic Disorders Medications Postoperative Mental Comorbidity Eye Disorders Introduce first-in-class therapy for chronic ocular surface pain (COSP) for which there is no approved treatment 1. See Slide 1 for further information on forward-looking statements. 2. Lemp MA, et al. Cornea. 2012;31(5):472-478. 1 2 Glaucoma WB007 Elevate standard of care with first glaucoma therapy to lower intraocular pressure and improve visual acuity Geographic Atrophy Multiple Programs Target multiple opportunities in intermediate AMD and geographic atrophy with best-in-class partnerships NORMAL VISION VISION WITH ADVANCED GA NORMAL VISION VISION WITH GLAUCOMA 50% E V A P O R A T I V E 36% M I X E D Ocular Surface Pain
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1. See Slide 1 for further information on forward-looking statements. 2. For full product information, see www.bausch.com. Reloading Next Cycle of Innovation 17 1,2 Lumify Preservative Free Trifocal IOL MIGS Eye Vitamins Cataract / Retina Platform EDOF IOL First-of-its Kind Biomimetic Contact Lens Technology Next-Gen Daily SiHy Lens Next-Gen Lumify Intermediate AMD Geographic Atrophy Daily SiHy Myopia Control Lens OJL332 First Therapeutic For COSP Dual-Action Lifitegrast Premium FRP SiHy Lens Glaucoma siRNA for Retinal Disease Adjustable IOL
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Deliver Drive Build Enhance Discipline Key Priorities for 2025 and Beyond 18 revenue growth at or above market selling and product launch excellence innovation in areas of highest unmet need supply chain and pivot to strategic action in capital allocation 1. See Slide 1 for further information on forward-looking statements. 1
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19 Appendix
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20 20 Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and this Appendix for further information on non-GAAP measures and ratios. 2. The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. September 30, 2023 Revenue as Reported Changes in Exchange Rates2 Constant Currency Revenue (Non- GAAP)1 Revenue as Reported Amount Pct. Amount Pct. Bausch + Lomb Vision Care 2,016$ 42$ 2,058$ 1,881$ 135$ 7% 177$ 9% Surgical 612 6 618 563 49 9% 55 10% Pharmaceuticals 883 4 887 529 354 67% 358 68% Total Bausch + Lomb 3,511$ 52$ 3,563$ 2,973$ 538$ 18% 590$ 20% Calculation of Constant Currency Revenue for the Nine Months Ended Change in Change in September 30, 2024 Reported Revenue Constant Currency Revenue1 Revenue as Reported Changes in Exchange Rates3 Constant Currency Revenue (Non- GAAP)1 Revenue as Reported Amount Pct. Amount Pct. Daily SiHy 112 2 114 65 47 72% 49 75% Premium IOLs 42 2 44 34 8 24% 10 29% September 30, 2024 September 30, 2023 Reported Revenue Constant Currency Revenue1 Calculation of Constant Currency Revenue for the Nine Months Ended Change in Change in
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21 21 Reconciliation of Reported Revenue to Organic Revenue1 and Organic Revenue Growth1 ($M) 1. This is a non-GAAP measure or non-GAAP ratio. See Slide 1 and this Appendix for further information on non-GAAP measures and ratios. 2. The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. Revenue as Reported Changes in Exchange Rates2 Acquisitions Organic Revenue (Non- GAAP)1 Revenue as Reported Divestitures and Discontinuations Organic Revenue (Non- GAAP)1,2 Amount Pct. Amount Pct. Vision Care 2,016 42 (24) 2,034 1,881 (1) 1,880 135 7% 154 8% Surgical 612 6 (4) 614 563 - 563 49 9% 51 9% Pharmaceuticals 883 4 (260) 627 529 (6) 523 354 67% 104 20% Total Bausch + Lomb 3,511 52 (288) 3,275 2,973 (7) 2,966 538 18% 309 10% September 30, 2024 September 30, 2023 Reported Revenue Organic Revenue1 Calculation of Organic Revenue for the Nine Months Ended Change in Change in
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