Bausch + Lomb (BLCO) investor relations material

Strategic direction and financial guidance

• Targeting 5%-7% constant currency revenue CAGR from 2025 to 2028, with all business units contributing and a focus on above-market growth.

• Adjusted EBITDA margin goal of 23% by 2028, a 600 basis point improvement from 2025, supported by premium product mix, manufacturing efficiencies, and disciplined cost management.

• Double-digit adjusted EPS growth and cash flow conversion exceeding 50% by 2028, with net leverage targeted at ~3.5x.

• Capital allocation priorities include strengthening the balance sheet, investing in R&D and commercial excellence, and disciplined M&A for innovation and geographic expansion.

• Vision 27 initiative underpins operational transformation and margin expansion, with ongoing execution tracked by a dedicated project management office.

Business segment growth and innovation

• All segments (consumer, surgical, contact lens, pharma) are expected to deliver 5%-7% constant currency revenue CAGR from FY25-28, with surgical projected at 6%-8%.

• Launches of new products such as Lumify Lux(e), AREDS3, and advanced dry eye solutions are expected to expand market leadership and address unmet needs.

• R&D investment will be maintained at ~8% of revenue, supporting a robust pipeline with over 60 projects and more than 20 launches in the past two years.

• The pipeline is projected to deliver up to ~$7B in peak sales, with launches staggered through 2032 and leveraging existing manufacturing lines for cost efficiency.

• Pipeline cadence designed for regular launches through 2032, supporting sustained growth and operational excellence.

Key product and pipeline highlights

• Consumer: Next-gen AREDS3 and Lumify Lux(e) launches in 2026-2027, with peak sales targets of $600M and $450M, and ongoing innovation in dry eye and eye vitamins.

• Pharma: Leading in dry eye with Mibo and Xiidra, developing dual-action therapies, neurosensory pain treatments, and neuroprotective glaucoma drops, with peak sales potential of $0.7B to $1.4B each.

• Contact lens: Project Halo, the first bioactive lens, launches in 2028 with $500M peak sales potential, followed by innovations in myopia control and premium comfort.

• Surgical: Expanding premium IOL portfolio, launching the first implant-free MIGS excimer laser in 2H26, and best-in-class cataract/retina combo system in 2028.

• Advancing precision medicine in retina via partnerships and AI-driven target discovery, and developing long-acting siRNA and implantable therapies for AMD and geographic atrophy.