 2015 Financial Guidance Conference Call January 8, 2015 Exhibit 99.1 |
 1 Forward-looking Statements Forward-looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding guidance with respect to expected revenues, non-GAAP cash earnings per share, adjusted cash flows from operations and organic product sales growth, future disclosures, patent exclusivity, launches and approvals of products, business development activities, share buybacks, and the 2015 strategic initiatives of Valeant Pharmaceuticals International, Inc. (the “Company”). 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 generally accepted accounting principles (GAAP), the Company uses non-GAAP financial measures that exclude certain items. 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. The Company has provided preliminary results and guidance with respect to cash earnings per share, adjusted cash flows from operations and organic product growth rates, which are non-GAAP financial measures. The Company has not provided a reconciliation of these preliminary and forward-looking non-GAAP financial measures due to the difficulty in forecasting and quantifying the exact amount of the items excluded from the non-GAAP financial measures that will be included in the comparable GAAP financial measures. Reconciliations of historical non-GAAP financials can be found at www.valeant.com. Note 1: The guidance in this presentation is only effective as of the date given, January 8, 2015, and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. |
 2 Agenda 2014 Review – J. Michael Pearson 2015 Financial Guidance – Howard Schiller New 2015 Strategic Initiatives – J. Michael Pearson |
 3 Q4 Operational Highlights Strong organic growth across almost all business units Expect >12% same store organic growth for total company Q4 and >10% for full year Expect Bausch + Lomb organic growth >10% for full year Expect continued strong performance from Jublia and other recent product launches Continued progress with key programs in R&D pipeline Strong Vesneo (glaucoma) Phase III data – expect to file NDA 1H 2015 Successful IDP – 118 (moderate to severe plaque psoriasis) Phase IIb data – move into phase III 1H 2015 Successful IDP – 120 (novel acne combination) data – move into Phase II 2H 2015 Received FDA approval for Onexton (Nov 25) – fourth U.S. approval in 2014 We believe first time any company has received 4 dermatology approvals in one year Meaningful Business Development activities completed at 2-3 times sales Nicox Diagnostics: Acquisition of U.S. Ophthalmic Diagnostics platform Croma: Global rights to IOLs and Viscoelastics Marathon (2015): Established specialty hospital portfolio |
 4 Jublia Growth Accelerates from DTC Q4 2014 sales to be >$50 million – annualized run rate >$200 million Continue heavy DTC advertising as long as growth rate continues Zero co-pay in effect as long as growth rate continues DTC TV |
 5 Q4 Guidance See Note 1 regarding guidance Guidance 7/31/14 Guidance 10/21/14 Guidance 1/8/15 Revenue $2.1 – 2.3 billion $2.1 – 2.3 billion ~$2.2 billion Cash EPS $2.35 - $2.45 $2.45 - $2.55 $2.55+ Adjusted Cash Flow from Operations N/A ~$600 million ~$600 million Fx Impact: Revenue Cash EPS N/A ~$53 million ~$0.06 ~$50 million ~$0.10 Absorbed additional negative Fx impact since 10/21/14 of ~$50 million to revenue and ~$0.10 to Cash EPS Excludes gain from Allergan transaction Net proceeds ~$300 million (gain less deal related out-of-pocket expenses) Restructuring charges <$50 million Net leverage ratio reduced to ~3.5 times adjusted pro forma EBITDA by year end Strength of balance sheet provides opportunities to make acquisitions and opportunistically buyback shares and/or pay down debt |
 6 Agenda 2014 Review – J. Michael Pearson 2015 Financial Guidance – Howard Schiller New 2015 Strategic Initiatives – J. Michael Pearson |
 7 Financial Guidance for 2015 See Note 1 regarding guidance 2015 2014 (1) Outlook 10/21/14 (2) Guidance 1/8/15 (2) % over 2014 Revenue ~$8.1 billion ~$9.1 billion $9.2 - $9.3 billion ~14-15% Cash EPS ~$8.32+ ~$10.00 $10.10 - $10.40 ~21-25% Adjusted Cash Flow from Operations ~$2.5+ billion ~$3.1 billion >$3.1 billion (at least 90% cash conversion) ~25+% 1) Three quarters of actuals plus fourth quarter guidance 2) 2015 outlook assumed benefit of debt paydown (approximately $0.10 per share) while 2015 guidance does not factor in any benefit from the use of free cash flow |
 8 2015 Guidance Assumptions Exchange rates are based on current spot rates Planned impact from generics expected to be <$200m in revenues Targretin (July); Xenazine (August) No future acquisitions included in guidance All signed or closed business development transactions factored into guidance Gross Margins expected to be ~75% SG&A spend (as a percentage of revenue) ~23-24% Reflects the additional investments to support launch brands R&D spend ~$250 million Interest expense ~$800 million Assumes no debt reduction beyond mandatory payments Cash EPS expected to be 45% / 55% 1H vs. 2H – similar to 2014 progression Sequential quarters expected to be higher than the previous quarter Cash tax rate expected to be ~5% Cash Flow Items Cap Ex - ~$200- $250 million Depreciation - ~$160 million Stock Based Comp - ~$100 million Restructuring charges expectations of <$25 million for Q1 and <$50 million for full year 2015 |
 9 FX Exposure 2015 Impact vs. 10/15/14 spot rates: • Cash EPS: ~$0.47 • Revenue: ~$300M Currency 10/15 Spot 12/31 Spot % Change Russian Ruble 40.692 60.736 -49% Euro 0.779 0.827 -6% Polish Zloty 3.288 3.544 -8% Japanese Yen 105.920 119.780 -13% Mexican Peso 13.532 14.752 -9% Australian Dollar 1.133 1.223 -8% Canadian Dollar 1.126 1.162 -3% Brazilian Real 2.458 2.658 Serbian Dinar 92.991 100.330 -8% South African Rand 11.075 11.571 -4% Singapore Dollar 1.272 1.326 -4% British Pound 0.624 0.642 -3% Swedish Krona 7.156 7.807 -9% Chinese Yuan 6.126 6.206 -1% Swiss Franc 0.940 0.994 -6% Indian Rupee 61.421 63.044 -3% South Korean Won 1,062.930 1,090.980 -3% |
 10 Limited Patent Risk 2015 2016 2017 2018 2019 Products 1) Xenazine 2) Targretin 1) Ziana 2) Zirgan 3) Visudyne 1) Lotemax Gel 2) Macugen 1) Acanya 2) Solodyn 3) Istalol 1) Zyclara Annual 2014 Sales ~$335 million ~$90 million ~$115 million ~$300 million ~$30 million % 2015 Revenue ~4% ~1% ~1% ~4% <1% Projected Generic Impact (1) <$200 million <$200 million <$150 million <$200 million <$30 million % of 2015 Revenue ~2% ~2% ~2% ~2% <1% 1) Impact to revenue in the year in which the product(s) go generic based on 2014 sales and date of loss of exclusivity |
 11 Planned Quarterly Disclosures Organic Growth Valeant (both same store and pro forma for total company) Bausch + Lomb Top 20 Global Brands with Price/Volume drivers Revenue breakdown by major Business Unit Developed Markets U.S. Dermatology; Consumer; Ophthalmology Rx; Contact Lens; Surgical; Neuro / Other / Generics; Dental; Aesthetics Other Developed (1) Emerging Markets EMENA; Asia; Latin America 1) Includes Japan, Australia, Canada and Western Europe |
 12 Agenda 2014 Review – J. Michael Pearson 2015 Financial Guidance – Howard Schiller New 2015 Strategic Initiatives – J. Michael Pearson |
 13 New 2015 Strategic Initiatives 1. Deliver strong (10% - 12%) organic growth and a cash conversion rate of >90% 2. Continue to over-deliver on the Bausch + Lomb acquisition through our decentralized operating model 3. Achieve $500+ million revenues, in aggregate, for key launch programs – Jublia, Ultra (Toric and Multi Focal), Luzu, Retin-A Micro 0.08%, Onexton 4. Continue to progress key development programs and prepare for launches e.g. Vesneo, Ultra, IDP-118 5. Deliver industry leading returns to shareholders through strong organic growth and financially disciplined business development 6. Develop / build the best management team in the industry |
 14 Strong Base Business Performance in 2015 Continue to deliver strong organic growth Expect same store sales growth of 10% - 12%, including impact of generics Expect nearly all business units to deliver 10%+ organic growth Expect Bausch + Lomb to deliver organic growth of 10%+ Expect exceptional growth from dermatology, contact lens, and Asia Advancement of key launch products/franchises with significant revenue opportunity Jublia: ~$300-$400 million Retin-A Micro Franchise: ~$150 million Ultra: ~$50-$75 million Luzu + Onexton: ~$50-$75 million |
 15 Additional New Product Launches in 2015 U.S. Consumer Ocuvite Eye Health Gummies CeraVe Hydrating Cleansing Bar CeraVe Renewing Serum & Night Cream CeraVe Baby Cream & Sunscreen SPF 45 AcneFree Drying Lotion Ambi CC+ Cream U.S. Surgical VICTUS Hardware and Software Enhancements Stellaris and Stellaris PC Software Upgrades Surgical Navigation System New injectors systems for our IOLs (enVista and Akreos) Branded Generics 250+ new launches planned in Emerging Markets |
 16 Valeant Late Stage R&D Portfolio Product Category Description Expected launch year EnVista Toric Eye Health Toric IOL 2016 Brimonidine Eye Health OTC 2016 Vesneo Eye Health Glaucoma 2016 Lotemax Gel Next Gen Eye Health Post-operative pain and inflammation 2016 Ultra Plus Powers Eye Health Contact lens 2016 BioTrue Toric Eye Health Contact lens 2016 IDP-118 Derm Moderate to severe plaque psoriasis 2017/2018 IDP-120 Derm Novel acne combination 2019 Emerade Allergy Anaphylaxis 2016/2017 Arestin LCM Oral Health Antibiotic treatment for periodontal (gum) disease 2016 |
 17 Key R&D milestones for 2015 Product Category Action EnVista Toric Eye Health File PMA 1H 2015 Brimonidine (OTC) Eye Health File NDA 1H 2015 Vesneo (glaucoma) Eye Health File NDA 1H 2015 Lotemax Gel Next Gen Eye Health File NDA 2H 2015 Ultra Multi Focal Eye Health File PMA 1H 2015 Ultra Toric Eye Health File PMA 2H 2015 BioTrue Toric Eye Health File PMA 2H 2015 IDP-118 (moderate to severe plaque psoriasis) Derm Initiate Phase III 1H 2015 IDP – 120 (novel acne combination ) Derm Initiate Phase II 2H 2015 Arestin LCM Oral Health File NDA 2H 2015 |
 18 Use Balance Sheet to Maximize Shareholder Value Leverage at ~3.5 times adjusted pro forma EBITDA creates substantial Balance Sheet capacity Business Development will continue to be the priority Developed Markets: Focus on building out existing platforms, adding new platforms in fast growing markets, or acquiring tail products with extremely high IRR’s and/or fast payback periods Emerging Markets: Focus on Branded Generics and OTC’s and look to build out platforms in Asia, Middle East and Latin America Expect steady flow of small/medium sized deals Timing of large transactions difficult to predict Business Development criteria remain the same Target 20% IRR’s at local statutory tax rates Require 6 years or less payback period Opportunistically repurchase shares and/or debt |
 19 2015 - Validation of Valeant’s Business Model Robust organic growth profile Double-digit organic growth expected in 2014, 2015 and beyond Geographical and product diversification creates lower-risk profile Durable product portfolio limits patent expiry exposure Rich pipeline of low-risk R&D programs Internal development – e.g. IDP-118, IDP-120, Onexton Acquisitions – e.g. Vesneo, Brimonidine, Ultra Product acquisitions/licenses – e.g. Emerade, Croma Strong cash flows and balance sheet Operating cash flows of over $3 billion expected in 2015 Absent large transactions, restructuring charges trending to zero Convergence of GAAP to non-GAAP cash flows Enhanced capacity to continue acquisition activity as well as opportunistically paydown debt and/or buy back shares Disciplined approach to business development Continue to be disciplined with capital deployment to generate above average returns for shareholders |
 2015 Financial Guidance Conference Call January 8, 2015 |