Bausch Health Companies Inc. - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - Bausch Health Companies Inc.	d653523d8k.htm

2014 Financial

Guidance

Conference Call

January 7, 2014

Exhibit 99.1

Forward-looking Statements

Note 1: The guidance in this presentation is only effective as of the date given, January 7,

2014, and will not be updated or affirmed unless and until the Company publicly

announces updated or affirmed guidance.

Forward-looking Statements

Non-GAAP Information

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, adjusted cash flows

from operations, organic product sales growth, integration-related activities and benefits, synergies, launches and approvals of

products, assumptions with respect to 2014 guidance, and the 2014 strategic initiatives of Valeant Pharmaceuticals International, Inc.

(the “Company”). Forward-looking statements may be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,”

“could,” “should,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” or “continue” and variations or similar expressions.

These statements are based upon the current expectations and beliefs of management and 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, risks and uncertainties discussed in the company's most recent annual or quarterly report

filed with the Securities and Exchange Commission ("SEC") and other risks and uncertainties detailed from time to time in the

Company's filings with the SEC and the Canadian Securities Administrators ("CSA"), which factors are incorporated herein by

reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. The Company 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.

To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), the Company

uses non-GAAP financial measures that exclude certain items. Management uses non-GAAP financial measures internally for strategic

decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures,

management intends to provide investors with a meaningful, consistent comparison of the Company’s core operating results and

trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information

is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the

corresponding measures calculated in accordance with GAAP. The Company has provided preliminary results and guidance with

respect to cash earnings per share, adjusted cash flows from operations and organic product growth rates, which are non-GAAP

financial measures. The Company has not provided a reconciliation of these preliminary and forward-looking non-GAAP financial

measures due to the difficulty in forecasting and quantifying the exact amount of the items excluded from the non-GAAP financial

measures that will be included in the comparable GAAP financial measures. Reconciliations of historical non-GAAP financials can be

found at www.valeant.com.

Agenda

2013 Review –

J. Michael Pearson

2014 Priorities –

Howard Schiller

2014 Financial Guidance

Other Updates –

J. Michael Pearson

New 2014 Strategic Initiatives

Previous Q4 Guidance Unchanged

Fourth Quarter 2013 Guidance

Revenue expected to be >$2.0 billion

Cash EPS expected to be between $2.05 -

$2.10

Adjusted cash flows from operations expected to be greater than $625

million

Organic growth, unadjusted, is positive in the fourth quarter, both same

store sales and pro forma

See Note 1 regarding guidance

2013 Full Year Performance

See Note 1 regarding guidance

2012

As Reported

2013

Guidance

Growth

Revenue

$3.4 billion*

$5.7 -

$5.9 billion

~60% -

65%

Cash EPS

$4.14*

$6.11

$6.16

~35% -

37%

Adjusted Cash

Flow from

Operations

$1.2 billion*

>$1.8 billion

~50%

* Excludes $66 M from divestiture of IDP-111 generic Efudex and $45M Retigabine Milestone. Cash

EPS also excludes $.08/share one time Fx gain

2013 Highlights

Operations:

Added

another

significant

Specialty

platform

–

Eye

Health

Achieved nearly $2.0 billion sales in Emerging Markets

Significantly expanded our aesthetic business in U.S. & Canada

MVP Program

Completed plant consolidations in Brazil, Mexico and Canada

Returned U.S. Neuro & Other to growth

Business Development:

Completed over 25 transactions

Bausch + Lomb, Euvipharm (Vietnam), Natur Produkt, Obagi,

Majority

between

1.5-3

sales

Established new growth platforms

China, Eye Health, Middle East, Turkey, U.S. generics, Vietnam

Added scale to a number of priority businesses

Brazil, Medical Devices, U.S. OTC, Russia, South East Asia

Acquired significant number of pipeline/launch products

Bensal, Biotrue ONEDay for Presbyopia, BV Metrogel, Luzu, Neotensil (partnership with Living

Proof), Peroxiclear, PureVision2 Multifocal for Presbyopia, Trulign IOL, Zeus

Balance Sheet Management:

Raised $10.7 billion in capital, including both debt and equity

2013 Highlights (continued)

Strengthened Senior Management Team:

Dr.

Ari

Kellen

Company

Group

Chairman

Laizer

Kornwasser

Company

Group

Chairman

Dan

Wechsler

–

Company

Group

Chairman

Tom

Appio,

GM,

North

Asia

Muhittin

Bilgutay

–

Turkey,

MENA

Andy

Chang

–

Sales

Marketing,

Surgical

Angelo

Conti

–

U.S.

Manufacturing

Craig

Dashefsky

–

U.S.

Commercial

Operations

Dr.

Richard

D’Souza

–

R&D,

Eye

Health

Joe

Gordon

–

U.S.

Consumer

Kym

Hampton

–

GM,

South

Africa

Deb

Jorn

–

Sales/Marketing

Derm

Jacques

Lacomb

–

Manufacturing

Linda

LaGorga

Treasurer

Ray

Larwood

–

Sales,

Eye

Health

Pharma

Dr.

Calvin

Roberts,

CMO,

Eye

Health

Dr.

Baldo

Sforzolini

–

Medical/Clinical,

Eye

Health

Tracy

Valorie

–

Marketing,

Eye

Health

Pharma

Gaelle

Waltinger

–

GM,

Western

Europe

2013 Achievements

Average Growth

2009 -

2012

Y/Y Growth

2013

Revenue

65%

64%

Cash EPS

30%

36%

Total Shareholder Return

64%

96%

Agenda

2013 Review –

J. Michael Pearson

2014 Priorities –

Howard Schiller

2014 Financial Guidance

Other Updates –

J. Michael Pearson

New 2014 Strategic Initiatives

2014 Priorities

Continue Strong Organic Growth

All business units are expected to have positive growth in 2014

Business units expected to grow double digit in 2014

Aesthetics

Consumer

Contact Lens

Neurology & Other

Ophthalmic Rx

Oral Health

Significant sales force expansions

Aesthetics

–

reps

going

~200

Oral Health –

100 reps going to ~150

New Launches planned

Aesthetics

–

Emervel,

Neotensil,

Small

Particle

Hyaluronic

Acid

for

the

Lips

(SPHAL)

Derm Rx –

Bensal, CeraVe Baby Line, Jublia, Luzu

Eye Health –

BioTrue ONEday for Presbyopia, enVista Inserter, Peroxiclear, Victus

Fragmentation, Zeus

Branded generic launches >300

Asia

Central and Eastern Europe

Latin America

Middle East / N. Africa

2014 Expected Product Launches

Product

Business

Unit

Description

Estimated Launch Date

Bensal

Derm Rx

Topical

treatment for the inflammation and irritation

associated with many forms of dermatitis

CeraVe Baby Line

Consumer

OTC Moisturizer

Luzu

Derm Rx

Topical antifungal approved for tinea cruris, corporis, and

pedis

Neotensil

Aesthetics

Topical product that reduces the appearance of under-eye

bags within one hour

Jublia

Derm Rx

Topical antifungal for onychomycosis

2H 2014

(pending FDA approval)

enVista Inserter

Surgical

Latest enhancements

enVista inserter Jan/Feb approval

and Q1 launch

Trulign ranges

Surgical

Broader range of powers

BioTrue Oneday for

Presbyopia

Contact Lens

Daily Contact Lens

Launching regionally in 2014

Peroxiclear

Consumer

New hydrogen peroxide-based contact lens solution

Zeus

Contact Lens

Silicon Hydrogel monthly disposable contact lenses

Victus Enhancements

Surgical

Launch of multiple VICTUS enhancements

FDA corneal incision clearance

estimated 1H of 2014 / FDA lens

fragmentation estimated 2H of 2014

Hyaluronic Acid for Lips

Aesthetics

Small-particle filler

Q4 2014

Emervel

Aesthetics

Facial injectable filler line

Q4 2014/Q1 2015

2014 Priorities (continued)

Complete Bausch + Lomb Integration

Achieve >$850 million run rate synergies by year end

Synergy capture to accelerate 2H 2014 due to heavy R&D spend 1H and European

Workers’

Council process

Maintain double digit organic growth

Launch Key Products

Continue and/or complete Bausch + Lomb R&D projects

Brimonidine Phase 3 (Eye Whitener)

Latanoprostene bunod Phase 3 (glaucoma)

Lotemax Gel Next Generation (post op inflammation)

MIM-D3 Phase 3 (Dry Eye)

Zeus Toric & Multifocal contact lens

Continue to pursue Value Added Business Development with Tuck-In

Acquisitions

Continue to be opportunistic

Focus

Emerging

markets

–

especially

Middle

East,

Asia

and

Russia

Continue to pursue value added Merger of Equals (MOE)

Reduce leverage ratio to less than 4x adjusted pro forma EBITDA

2014 Guidance Assumptions

Exchange rates are based on current spot rates

Planned impact from generics to be >$200m in revenues vs. 2013 to

hurt organic growth, particularly Q1 and Q2

Atralin,

Lotemax

suspension,

Retin

Micro,

Vanos,

Wellbutrin

(Canada),

Zovirax,

~$50m negative total revenue impact from divestitures

Includes Solta

Expected to close in January

No other acquisitions included in guidance

Jublia (efinaconazole) U.S. approval expected 2H 2014

Potential launch to be breakeven

Gross Margins expected to be in low 70’s

Cash Flow Items

Cap Ex -

~$200m

Depreciation -

~$150m

Stock Based Comp -

~$75m

2014 Guidance Assumptions (continued)

Cash EPS expected to be 40% / 60% 1H vs. 2H

Q1 expected to be lowest quarter; Q4 expected to be highest quarter

Completion of late stage R&D programs

~$200m spend expected in 1H out of $300m total 2014 R&D spend

Expected synergy capture of >$850 million run rate by year end to accelerate 2H 2014 due

to heavy

R&D

spend

and

European

Workers’

Council

process

Net realized annual synergies projected to be at least $650 million

Launch costs from Luzu, Neotensil, Zeus

Expansion of Oral Health and Aesthetics sales forces; revenue expected to accelerate in 2H

Cash tax rate expected <5%

Leverage reduced to <4x adjusted pro forma EBITDA by the end of

year

Financial Guidance for 2014

See Note 1 regarding guidance

2014

% over 2013

Revenue

~40%

Cash EPS

~40%

Adjusted Cash Flow from

Operations

~40%

$8.25 - $8.75

$2.4 - $2.6 billion

$8.2 - $8.6 billion

Agenda

2012 Review –

J. Michael Pearson

2014 Priorities –

Howard Schiller

2014 Financial Guidance

Other Updates –

J. Michael Pearson

New 2014 Strategic Initiatives

Achieve Bausch + Lomb annual run-rate synergies of greater

than $900 million.

Successfully

launch

key

new

products

–

Bensal,

Jublia,

Luzu,

Neotensil, PeroxiClear, Zeus.

Build out high priority businesses in Middle East, Russia/CIS,

and South East Asia.

Reduce leverage ratio below 4x.

Do at least one significant deal that creates substantial

shareholder value.

6. Become one of the 5 most valuable pharma companies (as

measured by Market Cap) by the end of 2016.

2014 Financial

Guidance

Conference Call

January 7, 2014

Bausch Health Companies Inc. - FORM 8-K - EX-99.1 - January 7, 2014

Attached files

Bausch Health Companies Inc. Reports