Third Quarter 2013
Financial Results
Conference Call
October 31, 2013
Forward-looking Statements
Forward-looking Statements
Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to,
statements regarding the performance of our business, synergies, pipeline approvals, patent risk and product exclusivity,
strategy, research and development, and financial guidance. 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.
Non-GAAP Information
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP),
the company uses non-GAAP financial measures that exclude certain items, such as amortization of inventory step-up,
amortization of alliance product assets & property, plant and equipment step up, stock-based compensation step-up,
contingent consideration fair value adjustments, restructuring, acquisition-related and other costs, In-process research and
development, impairments and other charges, ("IPR&D"), legal settlements outside the ordinary course of business, the
impact of currency fluctuations, amortization and other non-cash charges, amortization including intangible asset
impairments and write-down of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on
extinguishment of debt, (gain) loss on assets held for sale/impairment, net, (gain) loss on investments, net, and adjusts tax
expense to cash taxes. 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. Non-GAAP reconciliations
can be found in our press tables under the Investor Relations tab on www.valeant.com
Note 1: The guidance in this presentation is only effective as of the date given,
October 31, 2013, and will not be updated or affirmed unless and until the Company
publicly announces updated or affirmed guidance.
1
Agenda
1. Third Quarter Update
2. Bausch + Lomb Update
3. Financial Review and Guidance
2
Strong Q3 2013 Earnings and Cash
Generation Performance
Excluding Impact
of B+L Financing
Pre-Close
Q3
2013*
Q3
2012
2013
vs
2012
Total Revenue
$1.542 B
$884 M
74%
Product Sales
$1.506 B
$853 M
77%
$486 M
$358 M
Cash EPS
$1.43
Adjusted Cash Flow
$408 M
Cash Net Income
Q3
2013*
2013
vs.
2012
35%
$498 M
39%
$1.15
24%
$1.51
31%
$241 M
69%
* Q3 Results also reflect the impact of an earlier than expected generic entrant for Retin-A Micro of $0.04 per share
3
Revenue Breakout
Based on projected 2013 pro forma revenues
Devices
Durable Rx
Products
21%
76%
Gx/BGx
18%
41%
24%*
20%
Rx
Public
Pay
Rx
Products
75
25%
Subject to
Patent Cliff
OTC /
Solutions
* 24% of Rx revenue but only 10% of total revenue
4
Limited Patent Risk
2013*
Products
Total 2013
Revenue
% of pro
forma 2013
Revenue
*
2014
2015
1) Atralin
2) Lotemax
~$250 million
~$160 million
~$150 million
~$200 million
~$50 million
~3.1%
~2.0%
~2.0%
~2.6%
~0.6%
Suspension
1) Ziana
2) Zirgan
3) Targretin
2017
1) Bromday
2) Retin-A
Micro
3) Wellbutrin
XL (CAD)
4) Vanos
Does not include Zovirax franchise
1) Xenazine
2016
1) Lotemax
Gel
2) Macugen
3) Alrex
5
U.S. Business Profile
Top 10 U.S. Products










Arestin
CeraVe
Dysport
Elidel
Lotemax
PreserVision
Restylane
Solodyn
Wellbutrin XL
Xenazine
6
Q3 2013 Organic Growth
Same Store Sales
Excluding Zovirax
Franchise, RAM, BenzaClin
U.S.
5%
ROW Developed
1%
Total Developed Markets
4%
Total Emerging Markets
14%
Total Company
7%
Pro Forma
U.S.
5%
ROW Developed
2%
Total Developed Markets
4%
Total Emerging Markets
13%
Total Company
6%
7
Legacy Valeant - U.S.

Derm Rx

Increased generic penetration impacting total U.S. branded market
 Most Valeant brands continue to maintain/grow market share



e.g. Elidel; Acanya; Atralin; Carac; CeraVe
Solodyn stabilized at ~$200M per year
Aesthetics

Another strong quarter
 Continues to gain market share – particularly Dysport
 MVP program well received



Benefits from Mentor relationship
OraPharma continues to deliver double digit growth
Neuro & Other portfolio:

Strong double digit growth in Orphan drug portfolio and Xenazine
 Wellbutrin XL continues to be stable at ~$150M per year
 Partnered products* continue to decline
* Teva and Forest generic products
8
Legacy Valeant - Emerging Markets

Central & Eastern Europe grew at 15% (same store
sales)


South East Asia/South Africa continues extremely
strong growth trend


Two largest markets (Poland and Russia) continue to outpace
market growth
Same store sales growth nearly 20%
Latin America continues to deliver double digit
growth
9
Key Take Aways on Bausch + Lomb





Businesses continue to perform extremely well
during integration
Synergies tracking ahead of expectations
Decentralization has been embraced across the
company – especially outside the U.S.
Opportunity for additional synergies in supply chain
and manufacturing
Opportunity for localized business/business
development strategies
10
Key Take Aways on Bausch + Lomb Continued


As expected, R&D spend will be higher in first half of 2014 due
to multiple Phase III programs reaching completion
A number of key R&D developments since announcement:

Approved/Launched:
1) Peroxide Lens Cleaning Solution
2) Novel Silicone Hydrogel Monthly Disposable Contact Lens
3) Trulign Toric IOL
4) Soothe Long-lasting Dry Eye Therapy
5) PreserVision AREDS 2
6) PureVision 2 Multifocal for Presbyopia
7) BioTrueOne Day/PureVision2 Contact Lens (Japan)
8) Naturelle Contact Lens (China)
 Besivance patent extended to 2030
11
Bausch + Lomb
Integration Update
Integration and Synergy Update

>$850 million in synergies already identified




Cost to achieve synergies will be approximately
half of full synergies


Integrated 3 global Bausch + Lomb businesses into Valeant’s
decentralized structure
Synergizing corporate, global, regional and back office
functions
Rationalizing R&D portfolio
Spent ~$128M to date
IP integration on track to be completed January 1,
2014
13
Bausch + Lomb Performance
Since Acquisition Close
Same Store Organic Growth
U.S.
15%
ROW Developed
3%
Total Developed Markets
9%
Total Emerging Markets
14%
Total Company
10%
14
How We View Our Bausch + Lomb Businesses
Description
Strategy
Example Markets
Businesses
performing well
Accelerate
U.S.; Russia; China; Turkey;
Middle East; Germany
Localized strategies to
accelerate growth
Turbo Charge
Japan; Mexico; Brazil;
South East Asia;
Canada
Reinvigorate
Turn Around
U.K.; Italy; Spain; Nordics;
Australia; South Africa
15
Financial Report
Financial Summary
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
$853M
$942M
$1,039M
$1,064M
$1,506M
$31M
$44 M
$29M
$32M
$35M
$884M
$986M
$1,068M
$1,096M
$1,542M
Cost of Goods Sold% (% of product sales)
23%
24%
22%
23%
27%
SG&A% (% of total revenue)
20%
20%
23%
22%
23%
$19M
$20M
$24M
$24M
$49M
(excluding amortization)
54%
53%
52%
52%
47%
Cash EPS (Reported)
$1.15
$1.22
$1.30
$1.34
$1.43
Operations
$241M
$423M
$345M
$423M
$408M
Fully Diluted Share Count
312 M
312 M
312 M
314 M
340 M
Product Sales
Ongoing Service/Alliance Revenue
Total Revenue
R&D Expense
Operating Margin (% of total revenue)
Adjusted Cash Flow from
17
3Q Headwinds

Negative currency impact on revenue and profit



$20m+ revenue impact
$0.03 Cash EPS impact
Significant new currency exposures:


Bausch + Lomb pre-close interest expense and
additional share count


Euro; Yen; Chinese Renminbi; Turkish Lira; Argentinian Peso; Indian Rupee
Negative impact of $0.09
Retin-A Micro generic launched August 2013

Previous guidance assumed Q1 2014 launch


Negative Cash EPS impact of $0.04 in Q3
Negative Cash EPS impact of $0.08 expected in Q4
18
Financial Guidance for 2013 as of October 31,
2013
Previous Guidance
New Guidance
Implied Q4 2013

Revenue $5.8 - $6.2
billion

Revenue $5.7 $5.9 billion

Revenue $2.0 $2.2 billion

$6.00 - $6.20
Adjusted Cash
EPS

$6.11 - $6.16
Adjusted Cash
EPS

$2.05 - $2.10
Adjusted Cash
EPS

>$1.75 billion in
Adjusted Cash
Flow from
Operations

>$1.8 billion in
Adjusted Cash
Flow from
Operations

>$625 million in
Adjusted Cash
Flow from
Operations
See Note 1 regarding guidance
19
Third Quarter 2013
Financial Results
Conference Call
October 31, 2013