_ .....
`
`... --'
`
`\
`I
`
`BAUSCH- Health
`
`Eye Therapies Exhibit 2073, 1 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Forward-Looking Statements
`
`Securities Administrators, which risks and uncertainties are incorporated herein by reference.
`In addition, certain material factors and assumptions have been applied in making these
`forward-looking statements, including, without limitation, assumptions regarding our 2019 full(cid:173)
`year guidance with respect to currency impact, adjusted SG&A expense (non-GAAP) and the
`Company's ability to continue to manage such expense in the manner anticipated, the
`anticipated timing and extent of the Company's R&D expense, the expected timing and impact
`of loss of exclusivity for certain of our products, expected base performance, expectations
`regarding our newly acquired TRULANCE®product and expectations regarding gross margin,
`assumptions respecting our targeted three-year CAGR of revenue growth and Adjusted
`EBITDA (non-GAAP) growth including, without limitation, expectations on constant currency
`and mid-point of 2019 guidance, assumptions regarding our expectations regarding revenue
`growth in 2019, including, but not limited to, expectations on exchange rate and mid-point of
`2019 guidance, and that the risks and uncertainties outlined above will not cause actual results
`or events to differ materially from those descr bed in these forward-looking statements, and
`additional information regarding certain of these material factors and assumptions may also be
`found in the Company's filings described above. The Company believes that the material
`factors and assumptions reflected in these forward-looking statements are reasonable in the
`circumstances, but readers are cautioned not to place undue reliance on any of these forward(cid:173)
`looking statements. These forward-looking statements speak only as of the date hereof.
`Bausch Health undertak es 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.
`
`The guidance in this presentation is only effective as of the date given, May 6,
`2019, and will not be updated or affirmed unless and until the Company publicly
`announces updated or affirmed guidance.
`
`Distribution or reference of this deck following May 6, 2019 does not constitute the
`Company re-affirming guidance.
`
`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 Bausch Health's future prospects and performance (including the
`Company's 2019 full-year guidance and targeted three-year CAGR1 of revenue growth and
`Adjusted EBITDA (non-GAAP) growth), planned dermatology growth, anticipated revenue from
`our Significant Seven products, the expected impact on long-term growth of new product
`approvals, the anticipated submission, approval and launch dates for certain of our pipeline
`products and R&D programs, the anticipated timing of commencement of studies or other
`development work of our pipeline products and R&D programs, the anticipated timing of the
`loss of exclusivity of certain of our products and the expected impact of such loss of exclusivity
`on our financial condition, expected reported revenue growth and expected revenue generated
`from the Significant Seven and TRULANCE®, expected cash generated from operations and
`the anticipated uses of same, expected growth in R&D investment and the amount of such
`growth, anticipated continued improvement in operational efficiency (Project CORE) and the
`expected impact of such efficiencies, management's commitments and expected targets and
`our ability to achieve the action plan and expected targets in the periods anticipated, the
`Company's mission (and the elements and timing thereof) and the Company's plans and
`expectations for 2019 and beyond. Forward-looking statements may generally be identified by
`the use of the words "anticipates," "expects," "goals," "intends," "plans," "should," "could,"
`"would," "may," "will," "believes," "estimates," "potential," "target," "commit," "tracking," or
`"continue" and 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, including the Company's 2019 full-year guidance and
`management's expectations and expected targets for 2019 and beyond, 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 and
`events to differ materially from those described in these forward-looking statements. These
`risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in
`the Company's most recent annual and quarterly reports and detailed from time to time in the
`Company's other filings with the Securities and Exchange Commission and the Canadian
`
`BAUSCH- Health
`
`1. Compound Annual Growth Rate.
`
`Eye Therapies Exhibit 2073, 2 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Non-GAAP Information
`
`(l)
`
`GAAP) to projected GAAP net income (loss), due to the inherent difficulty in forecasting
`and quantifying certain amounts that are necessary for such reconciliations. In periods
`where significant acquisitions or divestitures are not expected, the Company believes it
`might have a basis for forecasting the GAAP equivalent for certain costs, such as
`amortization, that would otherwise be treated as a non-GAAP adjustment to calculate
`projected GAAP net income (loss). However, because other deductions (e.g.,
`restructuri ng, gain or loss on extinguishment of debt and litigation and other matters)
`used to calculate projected net income (loss) may vary significantly based on actual
`events, the Company is not able to forecast on a GAAP basis with reasonable certainty
`all deductions needed in order to provide a GAAP calculation of projected net income
`(loss) at this time. The amounts of these deductions may be material and, therefore,
`could result in GAAP net income (loss) being materially different from (including
`materially less than) projected Adjusted EBITDA (non-GAAP).
`
`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) Adjusted EBITA, (iii) EBITA, (iv) EBITA
`Margin, (v) Adjusted Gross ProfiVAdjusted Gross Margin (vi) Adjusted Selling, A&P, (vii)
`Adjusted G&A, (viii) Adjusted SG&A, 0x) Total Adjusted Operating Expense, (x) Adjusted
`Net Income, (xi) Adjusted Tax Rate, (xii) Organic Revenue, Organic Operating Results,
`Organic Growth, Organic Change and Organic Revenue Decline and (xiii) Constant
`Currency. Management uses some of these non-GAAP measures as key metrics in the
`evaluation of Company performance and the consolidated financial results and, in part,
`in the determination of cash bonuses for its executive officers. The Company believes
`these non-GAAP measures are useful to investors in their assessment of our operating
`performance and the valuation of the Company. In addition, these non-GAAP measures
`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 are not prepared in accordance with GAAP nor do they have
`any standardized meaning under GAAP. In addition, other companies may use similar1y
`titled non-GAAP financial measures that are calculated differently from the way we
`calculate such measures. Accordingly, our non-GAAP financial measures may not be
`comparable to such similar1y titled non-GAAP measures. We caution investors not to
`place undue reliance on such non-GAAP measures, but instead to consider them with
`the most directly comparable GAAP measures. Non-GAAP financial measures 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 measures to the most directly
`comparable financial measures calculated and presented in accordance with GAAP are
`shown in the appendix hereto. However, for guidance and expected CAGR1 purposes,
`the Company does not provide reconciliations of projected Adjusted EBITDA (non-
`
`BAUSCH- Health
`
`1. Compound Annual Growth Rate.
`
`Eye Therapies Exhibit 2073, 3 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`1.7 Opening Remarks &
`~ 1Q19 Highlights
`
`D 1Q19 Financial Results
`D FY 2019 Guidance
`
`1-:-7 Segment Highlights
`~ & 2019 Catalysts
`
`BAUSCI+ Health
`
`Eye Therapies Exhibit 2073, 4 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Pivoting to Offense
`Highest Quarter of Organic Growth 1,2 for Total Company Since 3Q15
`New Product Approvals and Launches
`Core Business Execution
`• DUOBRllfM (FDAApproved; Launch Expected June 2019)
`• 5% total Company organic revenue growth1•2 versus
`1018; Highest quarter of total Company organic
`• BRYHALI™ Launch: Rapid prescription uptake by
`revenue growth 1,2 since 3015
`dermatologists within the first four months of launch4
`• ~77% of Bausch Health's total revenue is generated
`• LOTEMAX® SM (loteprednol etabonate ophthalmic gel)
`from the Bausch+ Lomb/International and the Salix
`0.38% (FDAApproved and Launched)
`segments, which saw combined 7% organic revenue
`• Tangible® Hydra-PEG® custom contact lens coating
`growth1•2 during 1019 compared to 10183
`technology (FDA Approved and Launched)
`• Highest quarter of Bausch + Lomb/International organic
`• Launch of Thermage FLX® in Asia Pacific
`revenue growth 1,2 since Bausch+ Lomb acquisition in 2013
`• Top 10 products in aggregate across the Company
`delivered 11% organic revenue growth1,2 versus 1018
`
`Strategic Capital Allocation and Debt
`Management
`• $413M of cash generated from operations during 1019
`• Increased R&D investment by ~30% in 1019 vs. 1018
`• Refinanced $1.58 of 2021 and 2023 Sr. Unsecured Notes
`• Reduced debt by >$100M in 1019 using cash on hand,
`while still completing the acquisition of certain assets of
`Synergy Pharmaceuticals
`
`Strategic Transactions
`• Completed the acquisition of certain assets of Synergy
`Pharmaceuticals, which included TRULANCE® (IBS-C)
`and investi gational compound dolcanatide
`• Acquired EM-1009 : lnvestigational eye drop for treatment
`of itchy eyes associated with allergies
`• Entered into license agreement with UCLA5 to develop
`and commercialize novel compound for treatment of
`NAFLD6 and NASH7
`• Entered into exclusive license agreement with Mitsubishi
`Tanabe to develop and commercialize late stage
`investigational S1 P8 modulator for the treatment of
`inflammatory bowel disease
`
`BAUS Cl+ Hea Ith
`
`5. University ofGa/ifomia.
`1. See Slide 2 and Appendix forfurthernon-GAAP informauon.
`2. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues on a
`6. Non-alcoholic fatty liver disease.
`constant currency basis (if applicable) exduding the impact of acquisitions, divestitures and disconUnuations. 7. Non-alcoholic steatohepatitis.
`3. See footnote 3 at slide 5 for further details regarding the realigned segment reporong structure and the
`8. Sphingosine 1-phosphate.
`conformed prior period presentation.
`9. U.S. rights.
`4. JQVIA for three months through 3129119.
`
`Eye Therapies Exhibit 2073, 5 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`19
`
`Highlights
`
`1Q19 Revenue
`(% Organic Change
`Y/Y)1,2,3
`
`1Q19 EB/TA
`(non-GAAP) 2
`
`B•L
`
`Bausch + Lomb
`/International
`
`$1,118M
`8%
`
`$319M
`
`$289M
`
`$57M
`
`$236M
`
`~77o/o
`
`of Bausch Health's total revenue
`is generated from the Bausch +
`Lomb/International and the Salix
`segments, which saw combined
`7% organic revenue growth1,2
`during 1Q19 compared to 1Q183
`
`+8°/o
`
`Bausch + Lomb/International
`segment organic revenue
`growth1,2 versus 1Q183
`
`+5°/o
`
`Salix
`
`Ortho
`
`Dermatologies
`
`Ortho Dermatologies
`
`Diversified Products
`
`Total Company
`
`$445M
`5%
`
`$138M
`(1%)
`
`$315M
`(4%)
`
`$2016M
`'s%
`
`$SS 1M
`Adj. EBITDA2
`(non-GAAP)
`
`Salix segment organic revenue
`growth1,2 versus 1Q183, driven by
`XIFAXAN® which saw 11 %
`reported revenue growth vs. 1Q18
`
`1. Organic growth, a non-GAAP metric, is defined as an increase on a yea,~:>\ler-year basis in revenues on a constant currency bas;s (if appkable} excluding the impact of acquisitions, divestitures and
`discontinuations.
`
`BAUSCH- Health 2. See Slide 2 and Appendix tor further non-GAAP information.
`
`3. Commencing in the second quarter of 2018, the Comp.any realigned its segment reporting structure and now operates in four operating segments. All segment references in this presentation are to this rea.igned
`segment reporting structure and prior period presentations of segment results have been conformed to the current segment reporting structure to allow investors to evaluate results between periods on a constant
`basis. For more information about the current segment reporting structure, please see 'Changes in Reportable Segments' in Note 2, •sJGNIFICANT ACCOUNTING POLICIES" to our unaudited interim Consolidated
`Financia.l Statements included in our quarterly repo,t on Form 10-Q for the quarter ended Ma.rch 31, 2019 and the appendix to our First-Quarter 2019 flnancia/ Result.s presentation.
`
`Eye Therapies Exhibit 2073, 6 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Bausch Health: Unique Health Care Solution
`
`Durable Revenue Flow
`• ~ 77% of total revenue is generated from the
`Bausch + Lomb/International and the Salix
`segments, which saw combined 7% organic
`revenue growth1•2 during 1019 compared to 1018
`
`-60% of Bausch Health's revenue is not
`exposed to U.S. branded prescription pricing
`
`Medical devices, OTC,
`prescription and branded
`generic products3
`-60%
`
`U.S. Branded
`Pharmaceuticals4
`-40%
`
`+
`+
`+ Insulated from U.S. branded prescription pricing
`+ Critical Mass of People Consuming BHC Products
`
`A Diverse Business
`• Only one product accounts for >10% of revenue
`• Operating in ~100 countries around the world
`• Diversified by revenue type
`• Opportunity to leverage global footprint
`
`•
`
`~60% of Bausch Health is not exposed to U.S. branded prescription pricing; these
`products are not subject to significant LOEs
`
`•
`
`Every day more than 150 million people around the world use a Bausch Health product
`
`BAUSCI+ Hea Ith 2. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues on a constant currency basis (if applicable) exduding the
`
`impact of acquisitions, dNes&tures and d1scontinuallons.
`3. lndudes Global Soffa, U.S. Generics, U.S. Dentistry, Global Vision care, Global Surgical, Global Consumer, International Ophtho and International Rx.
`4. lndudes U.S. Ortho Dermato}Ogics, Salix, U.S. Neuro, U.S. Ophlho.
`
`1. See Slide 2 and Appendix for further non-GAAP informauon.
`
`Eye Therapies Exhibit 2073, 7 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`19 Financial Results
`
`Revenues
`
`GAAP Net Loss
`
`Adj. Net Income (non-GAAP) 1
`Diluted Shares Outstanding
`
`GAAP EPS
`
`Three Months Ended
`
`Favorable (Unfavorable)
`
`3.31 .19
`
`3_31 _ 18
`
`Re orted
`p
`
`Constant
`Currency1-2
`
`Organic
`Change 1,3
`
`$2,016M
`
`$1,995M
`
`1%
`
`4%
`
`5%
`
`($52M)
`
`($2,581M)
`
`$358M
`356.2M
`
`($0.15)
`
`$312M
`353.2M
`
`($7.36)
`
`15%
`
`29%
`
`GAAP CF from Operations
`
`$413M
`
`$438M
`
`(6%)
`
`$1 ,480M
`
`$1,422M
`
`4%
`
`7%
`
`210 bps
`
`(2%)
`
`17%
`
`(27%)
`
`(2%)
`
`6%
`
`2%
`
`(6%)
`
`15%
`
`(29%)
`
`(5%)
`
`8%
`
`7%
`
`Adj. Gross Profit (non-GAAP)1,4
`(excluding amortization and impairments of
`intangible assets)
`
`Adj. Gross Margin (non-GAAP) 1
`
`Adj. Selling, A&P (non-GAAP)1
`
`Adj. G&A (non-GAAP) 1
`
`R&D
`
`73.4%
`
`$462M
`
`$113M
`
`$117M
`
`71.3%
`
`$451M
`
`$136M
`
`$92M
`
`Total Adj. Operating Expense (non-GAAP)1
`
`$692M
`
`$679M
`
`Adj. EBITA (non-GAAP) 1
`
`Adj. EBITDA (non-GAAP)1
`
`L
`
`$788M
`
`$851M
`
`$743M
`
`$832M
`
`BAUSCH- Health 3. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues on a constant currency basis (if applicable) excluding the impact of acquisitions,
`
`1. See Slide 2 and Appendix for further non-GAAP information.
`2. See Appendix tor further information on the use and calcu/auon of constant currency.
`
`divesutures and discontinuations.
`4. See snde 47 in the appendix tor details on amortizauon and impairments of intangible assets.
`
`Eye Therapies Exhibit 2073, 8 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`19 Financial Results 4
`
`Bausch + Lomb/International
`
`Three Mo nths Ended
`
`Favorable (Unfavorable)
`
`3.31.19
`
`3.31.18
`
`Re orted
`p
`
`Constant
`Currency1•2
`
`Organic
`Change1,3
`
`9%
`
`4%
`
`6%
`
`16%
`
`8%
`
`9%
`
`3%
`
`4%
`
`16%
`
`7%
`
`11 %
`
`(6%)
`
`(7%)
`
`(72%)
`
`(9%)
`
`13%
`
`+8°/o
`
`Bausch + Lomb/International
`segment organic revenue
`growth 1,3 versus 1Q18, driven
`by an increase in volume
`across all business units,
`particularly in Global Vision
`Care, Global Consumer and
`International Rx
`
`All five reporting businesses
`of the segment saw organic
`revenue growth 1,3 versus
`1Q18
`
`1. See Slide 2 and Appendix for further non-GAAP
`information.
`2. See Appendix for further information on the use and
`calculation of constant currency.
`3. Organic growth, a non-OAAP metric, is defined as an
`increase on a year-over-year basis in revenues on a
`constant cuffency basis (if applicable) excluding the
`impacf of acquisitions, divestitures and disrontinuations.
`4. See footnote 3 at slide 5 for further detaUs regarding the
`realigned segment reporting strucfure and the conformed
`prior period presentauon.
`5. See slide 47 in the appendix for detaUs on amortization
`and impairments of intangible assets.
`
`Global Vision Care Revenue
`
`Global Surgical Revenue
`
`Global Consumer Revenue
`
`Global Ophtho Rx Revenue
`
`- . -
`
`-
`
`$203M
`
`$1 67M
`
`$324M
`
`$1 61M
`
`Total Segment Revenue
`
`$1,118M
`
`$195M
`
`$171M
`
`$330M
`
`$143M
`. '
`$1,103M
`
`Gross Profit5
`(excluding amortization and
`impairments of intangible assets)
`
`$707M
`
`$669M
`
`4%
`
`(2%)
`
`(2%)
`
`13%
`
`I ' '
`
`1%
`
`6%
`
`Gross Margin
`
`Selling. A &P
`
`G&A
`
`R&D
`
`63.2%
`
`60.7%
`
`250bps
`
`$317M
`
`$313M
`
`$41M
`
`$30M
`
`$41M
`
`$18M
`
`(1%)
`
`0%
`
`(67%)
`
`(4%)
`
`7%
`
`Total Operating Expense
`
`$388M
`
`$372M
`
`EBITA (non-GAAP) 1
`
`$319M
`
`$297M
`
`EB/TA Margin (non-GAAP)1
`
`Revenue % of total
`
`EBITA % (non-GAAP) 1 of
`total
`
`29%
`
`55%
`
`40%
`
`27%
`
`55%
`
`40%
`
`BAUSCH- Health
`
`Eye Therapies Exhibit 2073, 9 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`19 Financial Results 4
`
`Salix
`
`Adj . Gross Marg in (non(cid:173)
`GAAP)1
`
`Selling. A&P
`
`G&A
`
`R&D
`
`Total Operating Expense
`
`85.6%
`
`84.1%
`
`150 bps
`
`$73M
`
`$11 M
`
`$SM
`
`$92M
`
`$66M
`
`$13M
`
`$4M
`
`$83M
`
`(11%)
`
`15%
`
`(1 00%)
`
`(11 %)
`
`Adj. EBITA (non-GAAP)1,5
`
`$289M
`
`$272M
`
`6%
`
`(11 %)
`
`15%
`
`(100%)
`
`(11 %)
`
`6%
`
`Adj . EB/TA Margin (non(cid:173)
`GAAP)1·5
`
`Revenue % of total
`
`Adj. EBITA % (non-GAAP)1
`of total
`
`5
`•
`
`65%
`
`22%
`
`37%
`0
`
`64%
`
`21 %
`
`37%
`
`BAUSCH- Health
`
`+5o/o
`
`Salix segment organic
`revenue growth 1,3 versus
`1Q18, despite the UC ERIS®
`LOE
`
`+11 °/o
`
`XIFAXAN® reported revenue
`growth versus 1Q18
`
`1. For 2019, see Slide 2 and Appendix for further non(cid:173)
`GAAP information.
`2. See Appendix for further information on the use and
`calculation of constant cu"ency.
`3. Organic growth, a non-GAAP metric, is defined as an
`increase on a year-over-year basis in revenues on a
`constant currency basis (if applicable) exduding the
`impact of acquisitions, divestitures and
`discontinuations.
`4. See footnote 3 at slide 5 for further detaHs regarding the
`realigned segment reporting structure and the
`conformed prior period presentation.
`5. 2018 numbers are on an as reported basis; no
`adjustments reflected in 2018.
`6. See slide 47 in the appendix for detaHs on amortization
`and impairments of intangible assets.
`
`Eye Therapies Exhibit 2073, 10 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`19 Financial Results 4
`
`Ortho Dermatologies
`
`Three Months Ended
`
`Favorable (Unfavorable}
`
`3.31.19
`
`3.31.18
`
`Reported
`
`Constant
`Currency1-2
`
`Organic
`Change1,3
`
`+34°/o
`
`Global Solta organic revenue
`growth 1,3 versus 1Q18,
`driven by strong demand of
`Thermage FLX® in Asia
`Pacific following the launc h
`in the region
`
`1. See Slide 2 and Appendix tor further non-GAAP
`information.
`2. See Appendix tor further information on the use and
`calculation of constant currency.
`3. Organic growth, a non-GAAP metric, is defined as an
`increase on a year-over-year basis in revenues on a
`constant currency basis (if applicable) excluding the
`impact of acquisitions, divestitures and discontinuations.
`4. See footnote 3 at slide 5 tor further detaUs regarding the
`realigned segment reporting structure and the conformed
`prior period presentation.
`5. As of the first quarter of 2019, So/odyn AG and Xerese,
`were removed from the Ortho Dennatologics business
`uM in the Ortho Dermatologies Segment and added
`respectively to the Generics and Dentistry business units
`in the Diversified Segment. Revenues tor these products
`were $2.3M and $0. 7M tor the first quarter of 2019 and
`2018, respectively. This change was made as
`management believes the products better align with the
`Generics and Dentistry business units. Prior period
`presentations of segment and business unit results have
`been conformed to current segment and business unit
`reporting structure to allow investors to evaluate results
`between periods on a consistent basis.
`6. See slide 47 in the appendix tordetaUs on amortization
`and impairments of intangible assets.
`
`(10%)
`
`34%
`
`(1%}
`
`(10%)
`
`34%
`
`(1%}
`
`1%
`
`4%
`
`56%
`
`8%
`
`16%
`
`30%
`
`Ortho Dermatologies Revenue5
`
`$100M
`
`$11 1M
`
`Global Solta Revenue
`
`Total Segment Revenue5
`
`$138M
`
`$140M
`
`(1 0%)
`
`31%
`
`(1 %}
`
`$120M
`
`$120M
`
`0%
`
`87.0%
`
`85.7%
`
`130bps
`
`Gross Profit6
`(excluding amortization and
`impairments of intangible assets)
`
`Gross Margin
`
`Selling, A&P
`
`G&A
`
`R&D
`
`Total Operating Expense
`
`$46M
`
`$6M
`
`$11M
`
`$63M
`
`$48M
`
`$16M
`
`$12M
`
`$76M
`
`4%
`
`63%
`
`8%
`
`17%
`
`30%
`
`EBITA (non-GAAP}1
`
`$57M
`
`$44M
`
`EB/TA Margin (non-GAAP)1
`
`41%
`
`31%
`
`Revenue % of total
`
`EBITA % (non-GAAP} 1 of total
`
`7%
`
`7%
`
`7%
`
`6%
`
`■ BAUSCt+ Health
`
`Eye Therapies Exhibit 2073, 11 of 61
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`

`

`19 Financial Results 4
`
`Diversified Products
`
`Three Months Ended
`
`Favorable (Unfavorable)
`
`3.31.19
`
`3.31.18
`
`Reported
`
`Constant
`Currency1,2
`
`Organic
`Change1,3
`
`(11%)
`
`16%
`
`(4%)
`
`(11 %)
`
`16%
`
`(5%)
`
`(2%)
`
`(8%)
`
`30%
`
`25%
`
`5%
`
`(2%)
`
`+16°/o
`
`Generics organic revenue
`growth 1,3 versus 1Q18
`
`1. See Slide 2 and Appendix tor further non-GAAP
`information.
`2. See Appendix tor further information on the use and
`calculation of constant currency.
`3. Organic growth, a non-GAAP metric, is defined as an
`increase on a year-over-year basis in revenues on a
`constant currency basis (if applicable) excluding the
`impact of acquisitions, divestitures and discontinuations.
`4. See footnote 3 at slide 5 tor further detaHs regarding the
`realigned segment reporting structure and the conformed
`prior period presentation.
`5. As of the first quarter of 2019, So/odyn AG and Xerese,
`were removed from the Ortho DennatoJogics business
`uM in the Ortho Dermatologies Segment and added
`respectively to the Generics and Dentistry business units
`in the Diversified Segment. Revenues tor these products
`were $2.3M and $0. 7M tor the first quarter of 2019 and
`2018, respectively. This change was made as
`management believes the products better align with the
`Generics and Dentistry business units. Prior period
`presentations of segment and business unit results have
`been conformed to current segment and business unit
`reporting structure to allow investors to evaluate results
`between periods on a consistent basis.
`6. See slide 47 in the appendix tor detaHs on amortization
`and impairments of intangible assets.
`
`Neuro & Othe r Revenue
`
`Generics Revenue5
`
`. -
`
`$1 86M
`
`$1 04M
`
`$209M
`
`$90M
`
`Total Segment Revenue 5
`
`$315M
`
`$330M
`
`Gross Profit6
`(excluding amortization and
`impairments of intangible assets)
`
`$272M
`
`$278M
`
`(11%)
`
`16%
`
`(5%)
`
`(2%)
`
`Gross Margin
`
`Selling. A&P
`
`G&A
`
`R&D
`
`86.3%
`
`84.2%
`
`2 10bps
`
`$26M
`
`$7M
`
`$3M
`
`$24M
`
`$10M
`
`$4M
`
`(8%)
`
`30%
`
`25%
`
`5%
`
`(2%)
`
`Total Operating Expense
`
`$36M
`
`$38M
`
`EBITA (non-GAAP) 1
`
`$236M
`
`$240M
`
`EB/TA Margin (non-GAAP)1
`
`Revenue% of total
`
`fo~~;A % (non-GAAP) 1 of
`
`75%
`
`16%
`
`30%
`
`73%
`
`17%
`
`32%
`
`BAUSCH- Health
`
`■
`
`Eye Therapies Exhibit 2073, 12 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`19 Balance Sheet Summary
`
`~~
`3.31.19
`
`~~
`12.31.18
`
`~~
`9.30.18
`
`~~
`6.30.18
`
`Cash, cash equivalents and
`restricted cash
`
`$784M
`
`$723M
`
`$973M
`
`$838M
`
`$909M
`
`Revolving credit drawn
`
`$OM
`
`$75M
`
`$75M
`
`$325M
`
`$250M
`
`Senior Secured Debt2
`
`$1 1,147M
`
`$10,950M
`
`$9,526M
`
`$9,890M
`
`$8,565M
`
`Senior Unsecured Debt2
`
`$1 3,327M
`
`$1 3,682M
`
`$1 5,529M
`
`$1 5,539M
`
`$17,002M
`
`Total Debt2
`
`Net Debt3
`
`TTM4 Adj. EBITDA
`(non-GAAP)1
`
`$24,474M
`
`$24,632M
`
`$25,055M
`
`$25,429M
`
`$25,567M
`
`$23,692M
`
`$23,911M
`
`$24,082M
`
`$24,591M
`
`$24,658M
`
`$3,493M
`
`$3,474M
`
`$3,491M
`
`$3,526M
`
`$3,609M
`
`BAUSCH- Health
`
`■
`
`1. See Slide 2 and Appendix for further non-GAAP information.
`2. Debi balances shown at principal value.
`3. Total debt net of unrestricted cash and cash equivalents
`4. Tra#ing Twelve Months.
`
`Eye Therapies Exhibit 2073, 13 of 61
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`

`

`19 Cash Flow Summary
`
`Three Months
`Ended 3.31.19
`
`Three Months
`Ended 3.31.18
`
`Net loss1
`
`($48M)
`
`($2,579M)
`
`Net cash provided by operating
`activities
`
`$413M
`
`$438M
`
`Net cash used in investing
`activities
`
`Net cash used in financing
`activities
`
`Net increase in cash, cash
`equiva lents and restricted
`cash
`
`($203M)
`
`($48M)
`
`($1 SOM)
`
`($288M)
`
`$61M
`
`$112M
`
`Cash, cash equivalents and
`restricted cash at end of period
`
`$784M
`
`$909M
`
`$413M of cash
`generated from
`operations during
`1Q19, in line with
`company expectations
`
`Completed the
`acquisition of certain
`assets of Synergy
`Pharmaceuticals Inc.
`for a cash purchase
`price of ~$190M,
`including restructuring
`
`■ BAUSCH- Health
`
`1. Net loss before net income attributable to non-<XJntrolling interests.
`
`Eye Therapies Exhibit 2073, 14 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Full-Year 2019 Revenue and Adjusted EBITDA (non-GAAP)1
`Guidance3,4
`
`Prior Guidance
`(February 2019)
`
`Current Guidance
`(May 2019)
`
`Total Revenues
`
`$8.308 · $8.508
`
`$8.358 • $8.558
`
`Adjusted EBITDA (non-GAAP)1
`
`$3.358 · $3.508
`
`$3.408 • $3.558
`
`Key Assumptions
`
`Prior Guidance
`(February 2019)
`
`Current Guidance
`(May 2019)
`
`Adj. SG&A Expense (non-GAAP)1
`
`R&D Expense
`
`Interest Expense 2
`
`Adj. Tax Rate (non-GAAP)1
`
`Avg. Fully Diluted Share Count
`
`Additional Non-Cash Assumptions
`
`Depreciation
`
`Stock-Based Compensation
`
`ADDITIONAL CASH ITEM
`ASSUMPTIONS
`
`Capital Expenditures
`
`Contingent Consideration /
`Milestones / License Agreements
`
`Restructuring and Other
`
`-$2.458
`
`-$455M
`
`-$1.608
`
`-10%
`
`-360M
`
`-$185M
`
`-$95M
`
`-$275M
`
`-$SOM
`
`-$SOM
`
`-$2.458
`
`-$455M
`
`-$1.608
`
`-8%
`
`-360M
`
`-$180M
`
`-$100M
`
`-$275M
`
`-$60M
`
`-$SOM
`
`Raised full-year 2019
`revenue and Adjusted
`EBITDA (non-GAAP)1
`guidance ranges
`
`Cash flow from operations
`for 2019 is expected to be
`$1,S00M - $1,600M
`
`Gross margin for 2019 is
`expected to be 71 % to
`72%
`
`BAUSCH- Health 3. The guidance in this presentation is only effective as of the dale given, May 6, 2019, and will not be updated or affirmed unless and until the Company publicly announces updated
`
`■
`
`1. See Slide 2 and Appendix for further non-GAAP information.
`2. Interest expense includes amortization and write-oown of defeffed financing costs of --$60M.
`
`or affirmed guidance. Distribution or reference of this deck following May 6, 2019 does not constitute the Company re-affirming guidance.
`4. See slide 1 for further information regarding forward-looking informauon.
`
`Eye Therapies Exhibit 2073, 15 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Raised Full-Year 2019 Revenue and Adjusted EBITDA
`(non-GAAP) 1 Guidance Bridge2,3
`
`2019 Feb
`Gwdance
`
`Currency
`Impact
`
`LOE
`
`TRULANCE®
`
`Base
`Performance
`
`2019 May
`Gwdance
`
`Revenue
`
`$8.508
`to
`$8.308
`
`Approx.
`($3OM)
`
`Approx.
`$OM
`
`Approx.
`+$55M
`
`Revenue
`
`$8.558
`to
`$8.358
`
`Approx.
`+$25M
`
`2019 Feb
`Gwdance
`
`Currency
`Impact
`
`LOE
`
`TRULANCE®
`
`Base
`Performance
`
`2019 May
`Gwdance
`
`Adj. EBITDA
`(non-GAAP)'
`
`$3.508
`to
`$3.358
`
`Approx.
`($5M)
`
`Approx.
`$OM
`
`Approx.
`$OM
`
`Approx.
`+$55M
`
`Adj. EBITDA
`(non-GAAP)'
`
`$3.558
`to
`$3.408
`
`Raised
`
`Full-Year 2019
`Revenue Guidance
`Range Based on
`TRULANCE®
`Expectations and
`Base Performance
`
`Raised
`
`Full-Year 2019
`Adjusted EBITDA
`(non-GAAP)1
`Guidance Range
`Based on Better
`Than Expected
`Base Performance
`
`BAUSCH- Health 2. The guidance in this presentation is only effective as of the dale given, May 6, 2019, and will not be updated or affirmed unless and until the Company publicly announces updated
`
`1. See Slide 2 and Appendix for further non-GAAP information.
`
`or affirmed guidance. Distribution or reference of this deck following May 6, 2019 does not constitute the Company re-affirming guidance.
`3. See slide 1 for further information regarding forward-looking information.
`
`Eye Therapies Exhibit 2073, 16 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`Key Highlights
`
`Segment saw 8% organic revenue growth 2,3 in 1Q19 vs.
`1Q18, due to increase in volume across all business units
`primarily driven by Global Vision Care, Global Consumer
`and International Rx
`
`• Highest quarter of Bausch + Lomb/International organic
`revenue growth2•3 since Bausch + Lomb acquisition in
`2013
`
`• Top 10 products in aggregate across B+Ulnternational
`segment delivered 8% organic revenue growth 2,3 in 1Q19
`versus 1Q18
`
`• Strong International organic revenue growth 2,3,especia/ly in
`China (+12%) and Japan (+10%), compared to 1Q18
`
`International Rx saw 9% organic revenue growth 2•3 in
`1Q19 vs. 1Q18, driven by increased volume
`
`Global Consumer saw 6% organic revenue growth 2,3 in
`1Q19 vs. 1Q18
`
`$1 ,205M
`
`$1,147M
`
`$1 ,209M
`
`$1 ,103M
`
`Bausch + Lomb/International Organic Growth2•3 (YN)
`
`8%
`
`6%
`
`6%
`
`6%
`
`4%
`
`4%
`
`5%
`
`3%
`
`2%
`
`2%
`
`1 6 2 6 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
`
`7%
`
`4%
`
`1%
`
`-2%
`
`• Ocuvite® and PreserVision® combined saw 8% organic
`revenue growth 2,3 in 1Q19 versus 1Q18
`
`-5% 4% 4%
`
`• Continued success of Lumify® launch, exceeding expectations
`
`• E-commerce growth: 89% Amazon growth in 1Q19 vs. 1Q18
`
`BAUSCH- Health 2. See Slide 2 and Appendix tor further non-GAAP information.
`3. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues on a constant currency basis (if applicable) excluding the impact of acquisitions,
`divesutures and disrontinuations.
`4. Products with sale outside the U.S. are impacted by FX exchange.
`
`1. See footnote 3 at slide 5 tor further detaifs regarding the realigned segment reporting structure and the conformed prior period presentation.
`
`Eye Therapies Exhibit 2073, 17 of 61
`Slayback v. Eye Therapies - IPR2022-00142
`
`

`

`#1
`
`in Redness Reliever
`category with ~28%
`market share 1
`
`#1
`95%
`
`Physician-recommended
`product in the Redness
`Reliever category2
`
`Satisfaction rati ng in a
`recent in-home-use(cid:173)
`study with over 300
`partici pants3
`
`% of Weekly Market Share in Redness Reliever Category1
`
`22.4%
`
`10.6%
`9.2%
`
`July
`2018
`
`Aug.
`2018
`
`Sept.
`2018
`
`Nov.
`2018
`
`Dec.
`2018
`
`Jan.
`2019
`
`Mar.
`2019
`
`LUMIFY® -
`
`CLEAR EYES® -
`
`VISINE® -
`
`ROHTO®
`
`Private Label
`
`■ BAUSCH- Health 1. Reta# Dollar Share tor total United States. JR/ MULO Data Endin