Bausch Health Companies Investor Conference Presentation Deck
24
Non-GAAP Appendix
Organic Revenue, Organic Growth, Organic Revenue Decline and
Organic Change
Organic growth/change, a non-GAAP metric, 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 growth/change is 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 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 uses organic revenue and organic growth/change to assess
performance of its business units and operating and reportable segments, and the Company in
total, without the impact of foreign currency exchange fluctuations and recent acquisitions,
divestitures and product discontinuations. The Company believes that such measures are
useful to investors as they provide a supplemental period-to-period comparison.
Organic growth/organic change 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 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.
Acquisitions, divestitures and discontinuations: In order to present period-over-period
organic revenues (non-GAAP) 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
(non-GAAP) growth/change 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 (non-GAAP) growth/change 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.
BAUSCH- Health
Please also see the reconciliation in this Appendix for further information as to how this non-
GAAP measure is calculated for the periods presented.
Constant Currency
Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the
Company's financial results and financial position. To assist investors in evaluating the
Company's performance, we have adjusted for foreign currency effects.
Constant currency impact is determined by comparing 2021 reported amounts adjusted to
exclude currency impact, calculated using 2020 monthly average exchange rates, to the actual
2020 reported amounts.
Adjusted Cash Flows from Operations (non-GAAP)
Adjusted cash flows from operations (non-GAAP) is Cash provided by operating activities (its
most directly comparable GAAP financial measure) adjusted for: (i) payments of legacy legal
settlements, net of insurance proceeds and (ii) payments for separation costs, IPO costs,
separation-related costs, and IPO-related costs and (iii) Amoun Cash Flow from Operations in
accordance to the terms related to the deal. As these payments arise from events outside of
the ordinary course of continuing operations as discussed above, the Company believes that
the adjustments of these items provide supplemental information with regard to the
sustainability of the Company's cash from operations, allow for a comparison of the financial
results to historical operations and forward-looking guidance and, as a result, provide useful
supplemental information to investors.
Management believes that Adjusted cash flows from operations (non-GAAP), along with the
GAAP and non-GAAP measures used by management, most appropriately reflect how the
Company measures the business internally. The Company uses Adjusted net cash provided by
operating activities (non-GAAP) both to assess the actual financial performance of the
Company and to forecast future results as part of its guidance. Management believes Adjusted
net cash provided by operating activities (non-GAAP) is a useful measure to evaluate current
performance amounts.
Please also see the reconciliation in this Appendix for further information as to how this non-
GAAP measure is calculated for the periods presented.
Bausch Pharma Revenue
Bausch Pharma Revenue, non-GAAP metrics, are determined by subtracting Bausch + Lomb segment revenues
for the applicable period from total Bausch Health revenues for the applicable period.View entire presentation