Bausch+Lomb Results Presentation Deck slide image

Bausch+Lomb Results Presentation Deck

Reconciliation of Reported Operating Income to Adjusted EBITA (non-GAAP)¹ ($M) (4Q and FY) 2022 GAAP Amortization of intangible assets Asset impairments Restructuring, integration and transformation costs Acquisition-related costs and adjustments (excluding amortization of intangible assets) Separation costs and separation-related costs Litigation and other matters 2022 Non-GAAP¹ 2021 GAAP Amortization of intangible assets Asset impairments Restructuring, integration and transformation costs Acquired in-process research and development costs² Separation costs and separation-related costs Legal and other professional fees 2021 Non-GAAP¹ BAUSCH + LOMB 2. $ $ 576 Gross Profit 520 56 Gross Profit² 530 67 1 $ $ 598 Gross Margin SG&A 52.2% $ 386 $ 5.6% 0.0% 0.0% 0.0% 0.0% 0.0% 57.8% $ 4Q 2022 0.0% 0.0% 59.7% $ (20) (5) 361 $ 4Q 2021 Gross Margin² SG&A 52.9% $ 365 $ 6.7% 0.1% 0.0% 0.0% (3) (1) 361 $ R&D Expense Operating income 78 $ 78 $ R&D Expense 70 $ 51 56 70 $ 21 1 Operating income 7 1 137 92 67 1 4 4 1 (1) 168 Gross Profit $ 2,004 244 1 $ 2,249 Gross Profit $ 1,994 292 12 $ 2,298 Gross Margin SG&A 53.2% $ 1,478 $ 6.5% 0.1% 0.0% 0.0% 0.0% 0.0% 59.7% $ Gross Margin FY 2022 53.0% $ 7.8% 0.3% 0.0% 0.0% 0.0% 0.0% 61.0% $ (31) (26) 1,421 $ FY 2021 SG&A 1,389 $ (9) (3) 1,377 $ R&D Expense Operating income 307 $ 307 $ R&D Expense 271 $ 207 244 271 $ 1 36 Operating income 35 1 520 329 292 12 11 5 3 (1) 651 This is a non-GAAP measure or non-GAAP ratio. See Slide 2 and Non-GAAP Appendix for further information on non-GAAP measures and ratios. Prior to 2022, in calculating Adjusted EBITA, the Company had excluded expenses associated with acquired IPR&D. Beginning in 2022, the Company no longer excludes acquired IPR&D in its calculation of Adjusted EBITA. The Company is making this change to alignt with evolving practice in this regard. The Company is making this change for 2022 periods and onwards and has not made this change for periods prior to 2022. The Company believes these costs are not material for the periods presented. In particular, there was no acquired IPR&D in the fourth quarter of 2022 and there was less then $1 million in aggregate acquired IPR&D for the twelve months ended December 31, 2022. For 2021, there was $4 million in the fourth quarter of 2021 and there was $5 million in aggregate acquired IPR&D for the twelve months ended December 31, 2021. 36
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