Perrigo 2016 Third Quarter Financial...

Perrigo 2016 Third Quarter

Financial Results

NOVEMBER 10, 2016

Note: Certain statements in this presentation are “forward-looking statements." These statements relate to future events or the Company’s

future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of

activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-

looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future

performance contained in this presentation are forward-looking statements. In some cases, forward-looking statements can be identified by

terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or

the negative of those terms or other comparable terminology.

Please see the Company's documents filed with the Securities and Exchange Commission, including the Company's report filed on Form 10-KT

for the transition period from June 28, 2015 to December 31, 2015, quarterly reports on Form 10-Q, and any amendments thereto for a

discussion of certain important risk factors that relate to forward-looking statements contained in this presentation. The Company has based

these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these

expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known

and unknown risks and uncertainties, many of which are beyond the Company’s control, including the timing, amount and cost of share

repurchases, future impairment charges, the ability to achieve its guidance, and the ability to execute and achieve the desired benefits of

announced initiatives. These and other important factors may cause actual results, performance or achievements to differ materially from those

expressed or implied by these forward-looking statements. The forward-looking statements in this presentation are made only as of the date

hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any

forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Measures

This presentation contains non-GAAP measures. The reconciliation of those measures to the most comparable GAAP measures is included at

the end of this presentation. A copy of this presentation, including the reconciliations, is available on the Company’s website at

www.perrigo.com.

2

Forward – Looking Statements

3 3

John Hendrickson

Strategic Vision & Action Plans Update

4

The Perrigo Advantage

VISION

QUALITY AFFORDABLE HEALTHCARE LEADERSHIP

Every Second of Every Day

use a Perrigo product PEOPLE

~2.2K

IMPACT IMPACT IMPACT In 2015 Perrigo Saved

Consumers Approximately

$7.5B That’s Over 20 Million Dollars of Saving Per Day

5

Action-Oriented

GOVERNING PRINCIPLES:

OPERATIONAL EXECUTION

ACTION- ORIENTED

TRANSPARENCY PROFITABILITY & CASH FLOW CONVERSION

ACTIONS PROGRESS

1 Corporate Governance New independent directors Geoff Parker and Ted Samuels

2 Conduct Portfolio Review VMS divestiture, pet treats plant, European sports nutrition brand,

and API India facility sales

Tysabri® strategic review, Rx evaluation, to be completed Q1 2017

3 Capitalize on BCH Opportunity Alternatives processes for South Africa, Russia and Argentina businesses

As announced last quarter, on track for $40M supply chain savings over next 2 years

4 Optimizing Organizational Effectiveness

Ireland supply chain initiatives are generating ~$40M run rate contribution to net income

Continue evaluations to optimize organizational efficiencies

5 Execute in CHC & Rx Segments Strong U.S. OTC market position & favorable dynamics in CHC

Leading position in extended topicals

6 6

New Independent Directors Strengthen Board Committees

Geoff Parker added to the Audit Committee

New Independent Directors with Significant Experience and Successful Track Records of Delivering

Shareholder Value

Geoff Parker and Ted Samuels bring substantial and directly relevant experience and expertise

Geoff Parker – former CFO of Anacor Pharmaceuticals; former Goldman Sachs partner in charge of West

Coast healthcare investment banking

Ted Samuels – President of Capital Guardian Trust Company, and Portfolio Manager at Capital Group, which

has $1.39 trillion in assets under management

The Board continues to evolve in order to support strategic initiatives, strengthen governance and deliver value

New Directors with Track Records of Delivering Value 1 Corporate Governance

Additional Board of Directors Changes

Michael Jandernoa and Gary Kunkle have elected to not stand for reelection

7

Opportunities for Tysabri® Royalty 2 Conduct Portfolio Review

Board Authorized Evaluation

Engaged Consultants & Financial Advisors

Tysabri® Strategic Alternatives Evaluation

Expect to Conclude Review in Q1 2017

No Update Expected Until Conclusion of Review

Committed to Investment Grade Ratings

8

Comprehensive Review of Rx Underway 2 Conduct Portfolio Review

Rx Segment Evaluation

Thoughtful Considerations Regarding:

Interdependencies within our businesses

Manufacturing & shared service functions

Expected to Conclude Evaluation in Q1 2017

Engaged Advisors to Assist in Evaluation of:

Market Position

Growth Opportunities

Dis-synergies

9 9

European Branded Business Capitalize on BCH Opportunity

3

Our Action Plan Our Core

Strengths

BCH is a top 5 European OTC business

Similar to U.S., favorable demographics driving an increased use of OTC products

Distribution across the continent into all major OTC channels

Leading local brands across numerous markets

Our

Objectives

Capture substantial shareholder value by growing business, increasing

margins and driving profitability

CHC-Level Profitability

Maintain as a Top 5 European OTC Business

Growth at or Above Market

10 10

Performance Enhancement in European Branded Business Capitalize on BCH Opportunity 3

Enhance

Leadership

Geographic and

Brand Strategy

Optimize

Infrastructure

Increased

Innovation

Well performing countries have effective leaders who quickly adapt to

changing market dynamics

New country leaders in Belgium, Italy, Germany & France

Manage underperforming geographies and brands through divestiture

or partnership

Align investments with our ability to win by product and by market

Increase efficiency and align costs with revenues

Integrate BCH onto Irish platform; overlay CHC operational philosophies to

increase operating margins; incentivize business teams to focus on margin

growth

Increase brand investments in innovation

Reinvigorate Pan-European innovation process

11 11

Optimizing Cost Structure Enhancing Organizational Effectiveness 4

Globalization

Cost

Effectiveness

Maximize global infrastructure for products, sourcing & supply

Further leverage global center of excellence

Previously announced Ireland supply chain initiatives are generating

~$40M run rate contribution to net income

Enhance low cost, integrated supply network

Align cost structure with market dynamics

Evaluation to be complete by Q1 2017

12 12

0.9%

2.3%

-1.5%

6.4%

3.5%

1.2%

2.4%

3.3%

2.8%

-2.1%

13.3%

4.7%

-1.8%

3.2%

-3.1%

1.0%

9.1%

2.6%

2.6%

4.2%

0.6%

-5% 0% 5% 10% 15%

Analgesics

Cough, Cold, Allergy, Sinus

Infant Formula

Smoking Cessation

Gastrointestinal

Diabetes

Total OTC

Store Brand National Brand Category

Source: IRI MULO Latest 52 Weeks Ending October 2nd, 2016

Strong U.S. OTC Market Position Favorable Market Dynamics

Demographics will drive increased OTC

utilization

Fewer people to fund healthcare, driving

the need for greater efficiency

OTC delivers greater healthcare

efficiency and value

Store brand proposition further

enhances OTC’s efficiency and value

Products expected to continue to switch

from Rx to OTC status

$19 billion market opportunity in

potential Rx-to-OTC switches

Enhancing Execution Consumer Healthcare 5

1

2

3

4

5

6

13 13

Pain

(Rx-to-OTC Potential)

$900M

Overactive Bladder

(All Strengths / Forms)

$2.5B

Erectile Dysfunction

(Oral Dosage Form)

$3.5B

Acne

(< 5% strength)

$2.5B

Migraine

(Triptan Category)

$1.2B

Nasals

$900M

Ophthalmic

(Drops/Liquid Dosage Forms)

$3.7B

Asthma

(Inhalants Only)

$4.0B

Enhancing Execution Consumer Healthcare – Rx-to-OTC Switches 5

MORE THAN $19B RX-TO-OTC MARKET OPPORTUNITY

47%

GRx Diclofenac

28%

15%

All Others 10%

17%

15%

6%

11% 8%

43% 45%

12%

29%

14%

53% 41%

6%

31%

GRx Rizatriptan

6% GRx Sumatriptan

35%

All Others 28%

48%

9%

All Others 43%

64%

GRx Mometason

e 22%

All Others 14%

39%

31%

21%

All Others

9%

14 14

Enhancing Execution Consumer Healthcare – New Product Pipeline 5

CHC ANDA PIPELINE >$1B IN NATIONAL BRAND SALES

15 15

$0.0

$0.5

$1.0 27 ANDAS pending FDA approval

5 paragraph IV litigation

3 active clinical studies

#1

Extended Topicals Portfolio Position Growth Opportunities

#5 #2 #4 #3 #6 #7 #8 #9 #10

Source: IMS National Sales Perspectives, IMS Form (VA VAGINALS, TO OTHER TOPICALS, DD DERMATOLOGICALS, AN RECTALS. TOP) LTM ending July, 2016

Enhancing Execution Rx Pharmaceuticals 5

$ Billions*

16 16

Expected 2016 new products ~$300M

Successful launches of store brand

version of Flonase® and the generic

version of BenzaClin®

Expected new products by end of 2017

Further launches of store brand versions

of Mucinex® family

Launch of generic version of ProAir®

New Products to Drive Growth

New Products Executing on the Consumer & Rx Strategies 5

17 17

3Q 2016 Financial Review

Judy Brown

18 18

($ in millions, except per share amounts)

Q3 2016 Q3 2016 Q3 2015 Reported Change YoY %

Non-GAAP Adjustments Reported Adjusted(1) Reported

Net Sales $1,355 $1,333 $1,345 1 %

Gross Profit $506 $633 $549 (8 %)

R&D Expense 50 50 42 21 %

Distribution, Selling & Administrative Expense ("DSG&A") 285 239 316 (10 %)

Restructuring and Impairments $1,687 $0 $2 NM

Operating Income (Loss) $(1,515) $344 $189 NM

Interest & Other Expense 56 56 56 — %

Net Income (Loss) $(1,255) $236 $113 NM

Diluted Earnings (Loss) Per Share $(8.76) $1.65 $0.77 NM

(1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts

(2) Held-for-sale businesses (U.S. VMS, European sports brand, and India API businesses)

NM = Not meaningful

Consolidated – Q3 2016 Selected Financial Information

• HFS(2) operating results

• Acquisition-related amortization

expenses

• Contingent consideration fair

value adjustment

• Restructuring

• Goodwill, intangible asset & held

for sale impairments

• Related tax effects

19 19

($ in millions) Q3 2016 Q3 2015 % Change

Y/Y % Change Constant

Currency Y/Y(1)(2)

Adjusted Consolidated Perrigo Net Sales(3) $1,333 $1,304 2 % 3 %

Adjusted Operating Income 344 359 (4 %)

Adjusted Consumer Healthcare (CHC) Net Sales(3) 648 634 2 % 3 %


Adjusted Branded Consumer Healthcare (BCH) Net Sales(4) 304 302 1 % 2 %


Prescription Pharmaceuticals (Rx) Net Sales 267 260 3 % 4 %

Adjusted Operating Income 114 110 4 %

Specialty Sciences Net Sales 93 85 10 % 11 %

Adjusted Operating Income 96 82 17 %


(2) Excludes impact of currency translation compared to prior year, including Fx impact on Tysabri® royalty stream

(3) Third quarter 2016 and 2015 net sales excludes net sales from held-for-sale businesses. Q3 2015 adjustment made for comparative purposes to sales only.

(4) Third quarter 2016 net sales excludes net sales from held-for-sale businesses.

Net Sales and Operating Income As Adjusted (1) – Q3 2016

20 20

$634 $648

$550

$575

$600

$625

$650

$675

Q2 2015 Q2 2016

• Adjusted net sales increased 3% on a constant

currency basis excluding sales from the U.S. VMS

business(2)

• Strong demand in U.S. Consumer Healthcare,

driven by increased sales in the infant formula and

smoking cessation categories

• New product sales of $33 million

$227M

Adjusted Gross Profit Adjusted Operating Income

Adjusted Gross Margin Adjusted Operating Margin

$128M

35.0% 19.8%

-7 % -7 %

-70 bps

-120 bps

2016 Q3 Year-Over-Year Adjusted Net Sales Growth


(2) Third quarter 2016 and 2015 net sales excludes net sales from the US VMS business of $21 million and $41 million, respectively. Q3 2015 adjustment made for comparative purposes to sales only.

Consumer Healthcare Segment As Adjusted(1) – Q3 2016

Q3 2015 Q3 2016

in m

illio

ns

21 21

2016 Q3 Year-Over-Year Adjusted Net Sales Growth

• Net sales increased 2% on a constant currency

basis excluding sales from the held-for-sale

European sports brand(2)

• GSK product portfolio and Yokebe contributed

$18 million


$302 $304

$285

$290

$295

$300

$305

$310

Q2 2015 Q2 2016

$144M



$30M

47.5% 10.0%

-31 % -15 %

-460 bps

-850 bps


(2) Third quarter 2016 net sales excludes net sales from a European sports brand, which is currently held-for-sale.

Branded Consumer Healthcare Segment As Adjusted (1) – Q3 2016

Q3 2015 Q3 2016

in m

illio

ns

22 22 (1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts

• Net sales increased 4% on a constant currency

basis driven primarily by sales from recent product

acquisitions and an increase in new product sales


• Adjusted operating margins 40 basis points above

the prior year

2016 Q3 Year-Over-Year Net Sales Growth

$260 $267

$230

$240

$250

$260

$270

$280

Q2 2015 Q2 2016

$159M



$114M

59.3% 42.5%

+4 % +7 %

+40 bps

+210 bps

Rx Pharmaceuticals Segment As Adjusted(1) – Q3 2016

Q3 2015 Q3 2016

in m

illio

ns

23 23 (1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts

• Continued trend of positive patient adds

• Physicians continue to choose this therapy for

patients requiring high efficacy

• Well-understood safety profile after nearly 10

years on the market

2016 Q3 Year-Over-Year Net Sales Growth

$85

$93

$70

$75

$80

$85

$90

$95

$100

Q2 2015 Q2 2016

$93M



$96M

100.0% 103.0%

+17 % +10 %

+610 bps

0 bps

Specialty Sciences Segment As Adjusted(1) – Q3 2016

Q3 2015 Q3 2016

in m

illio

ns

24 24

Balance Sheet

24

Balance Sheet

Committed to maintaining investment grade rating

Proactively repaid $500 million senior notes maturing in November

Strong cash flow conversion enabling capital allocation priorities focused on deleveraging

Total Cash(1)

$363M Total Debt(1)

$5.9B

(1) As of October, 1, 2016

25 25

(1) See attached Appendix for reconci l iat ion of Adjusted (Non-GAAP) to Reported (GAAP) amounts

(2) Calendar-year data for 2015 was derived from the Company’s audited results for the six-month period ended December 31, 2015 and unaudited results for the fiscal quarters ended March 28, 2015 and June 27, 2015

(3) December 31, 2015 exchange rates were used as the basis for calendar year 2016 guidance

(4) Excludes the expected results of held-for-sale businesses

Calendar Year 2016 Guidance

25

Calendar Year

2015(2)

Calendar Year

2016 Guidance

at June 30,

2016 Rates

Presented Aug.

10, 2016

Impact of Sept.

30, 2016 Rates

Compared to

June 30, 2016

Rates

Calendar Year

2016 Guidance

at Sept. 30,

2016 Rates

Reaffirmed Nov.

10, 2016

Net Sales $5.35B $5.3 - $5.5B (1),(3),(4)

$4.7M $5.3 - $5.5B

(1),(3),(4)

Adjusted

Diluted

EPS(1)

$7.59/share $6.85 -

$7.15/share $0.01/share

$6.85 -

$7.15/share

26 26

Calendar Year

2016 Segment Net Sales Guidance

Calendar Year 2016 Guidance

Calendar Year 2016

Guidance

Adjusted Net Sales $5.3B – $5.5B Adjusted DSG&A as % of Adjusted Net Sales(1) ~19.0%

Adjusted R&D as % of Adjusted Net Sales(1) ~3.5%

Adjusted Operating Income $1.38B – $1.43B

Interest Expense ~$225M

Adjusted Effective Tax Rate ~15%

Adjusted EPS $6.85 – $7.15

Diluted Shares Outstanding ~143.6M

Operating Cash Flow >$0.9B

(1) Percentages are +/- 75 basis points

(2) Guidance excludes the expected results of held-for-sale businesses

Consumer

Healthcare(2) ~$2.6B

Branded Consumer

Healthcare(2) ~$1.3B

Rx Pharmaceuticals ~$1.0B

27 27

John Hendrickson

Leveraging the Perrigo Advantage

28

Roadmap to Delivering Shareholder Value

GOVERNING PRINCIPLES:

OPERATIONAL EXECUTION

ACTION- ORIENTED

TRANSPARENCY PROFITABILITY & CASH FLOW CONVERSION

ACTIONS PROGRESS

1 Corporate Governance New independent directors Geoff Parker and Ted Samuels

2 Conduct Portfolio Review VMS divestiture, pet treats plant, European sports nutrition brand,

and API India facility sales

Tysabri® strategic review, Rx evaluation, to be completed Q1 2017

3 Capitalize on BCH Opportunity Alternatives processes for South Africa, Russia and Argentina businesses

As announced last quarter, on track for $40M supply chain savings over next 2-3 years

4 Optimizing Organizational Effectiveness

Ireland supply chain initiatives have generated ~$40M contribution to net income

Continue evaluations to optimize organizational efficiencies

5 Execute in CHC & Rx Segments Strong U.S. OTC market position & favorable dynamics in CHC

Leading position in extended topicals

29 29

Q&A / Contacts

Arthur J. Shannon

Vice President,

Global Affairs and European

Investor Relations

(269) 686-1709

[email protected]

Bradley Joseph

Vice President,

Global Investor Relations and

Corporate Communications

(269) 686-3373

[email protected]

Questions?

30 30

Three Months Ended

October 1, 2016

September 26, 2015

Intangible asset amortization expense $ 162.1 $ 147.6

Depreciation expense 24.9 27.9

Operating cash flow 303.9 136.1

October 1, 2016

December 31, 2015

Cash and cash equivalents $ 362.7 $ 417.8

Total assets 17,467.6 19,393.9

Long-term debt, less current portion 5,638 4,971.6

PERRIGO COMPANY PLC SUPPLEMENTAL SELECTED FINANCIAL

INFORMATION

(in millions)

(unaudited)

31 31

TABLE I

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended October 1, 2016

Consolidated Net Sales Gross Profit R&D Expense DSG&A

Expense

Restructuring and Impairment

Charges Operating

Income (Loss) Interest and

Other Expense Net Income

(Loss)

Diluted Earnings (Loss)

per Share

Reported $ 1,354.9 $ 506.3 $ 50.2 $ 284.8 $ 1,686.5 $ (1,515.2 ) $ 56.3 $ (1,255.2 ) $ (8.76 )

Adjustments:

Amortization expense related primarily to acquired intangible assets $ — $ 129.4 $ (0.3 ) $ (34.1 ) $ — $ 163.8 $ — $ 163.8 $ 1.15

Impairment charges — — — — (1,679.9 ) 1,679.9 — 1,679.9 11.70

Restructuring charges — — — — (6.6 ) 6.6 — 6.6 0.05

Acquisition and integration-related charges — — — (0.5 ) — 0.5 — 0.5 —

Contingent consideration fair value adjustment — — — (4.8 ) — 4.8 (0.3 ) 5.1 0.04

Operating results attributable to held-for-sale businesses* (21.8 ) (2.8 ) (0.2 ) (6.2 ) — 3.6 (0.4 ) 4.0 0.03

Loss on early debt extinguishment — — — — — — 0.4 (0.4 ) —

Non-GAAP tax adjustments*** — — — — — — — (368.0 ) (2.56 )

Adjusted $ 1,333.1 $ 632.9 $ 49.7 $ 239.2 $ — $ 344.0 $ 56.0 $ 236.3 $ 1.65

As a % of adjusted net sales 47.5 % 25.8 %

Diluted weighted average shares outstanding

Reported 143.3

Effect of dilution as reported amount was a loss, while adjusted amount was income**. 0.3

Adjusted 143.6

*Held-for-sale businesses include the U.S. VMS business, European sports brand, and India API business

**In the period of a net loss, diluted shares outstanding equal basic shares outstanding.

*** The non-GAAP tax adjustment includes the following: (1) $324.0 million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $21.6 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $22.4 million of discrete income tax adjustments related to impairment calculations for BCH intangible assets, which includes revisions to the weighted average blended tax rates used to calculate opening balance sheet deferred tax liabilities, jurisdictional tax rate changes in Italy, UK & Germany and the related impact on valuation allowances associated with the intangible assets. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income.

32 32

TABLE I (CONTINUED)

PERRIGO COMPANY PLC




(unaudited)

Three Months Ended September 26, 2015

Consolidated Net Sales Gross Profit R&D Expense DSG&A Expense Operating Income

Interest and Other Expense Net Income

Diluted Earnings per Share

Reported $ 1,344.7 $ 548.8 $ 41.6 $ 316.4 $ 188.6 $ 56.4 $ 112.6 $ 0.77

Adjustments:

Amortization expense related primarily to acquired intangible assets $ 109.1 $ (0.1 ) $ (38.4 ) $ 147.6 $ — $ 147.6 $ 1.00

Acquisition and integration-related charges — — (4.1 ) 4.1 0.2 3.9 0.03

Amortization of inventory fair value adjustments related to acquisitions 1.1 — — 1.1 — 1.1 0.01

Legal and consulting fees related to Mylan defense — — (15.6 ) 15.6 — 15.6 0.11

Derivative losses — — — — (4.8 ) 4.8 0.03

Losses from equity method investments — — — — (4.2 ) 4.2 0.03

Restructuring charges — — — 2.2 — 2.2 0.01

Non-GAAP tax adjustments** — — — — — (33.7 ) (0.23 )

Adjusted $ 659.0 $ 41.5 $ 258.3 $ 359.2 $ 47.6 $ 258.3 $ 1.76

As a % of reported net sales 49.0 % 26.7 %

For Comparative Purposes* Diluted weighted average shares outstanding 146.9

Reported $ 1,344.7

Operating results attributable to held-for-sale businesses (40.9 )

Adjusted $ 1,303.8

*2015 net sales adjustment made for 2016 adjusted net sales comparison purposes only and does not change any other prior year financial information or metrics as businesses were not held-for-sale in 2015.

** The non-GAAP tax adjustment includes the following: (1) $31.8 million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) a $1.9 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income.

33 33

TABLE II

PERRIGO COMPANY PLC


SELECTED SEGMENT INFORMATION

(in millions)

(unaudited)

Three Months Ended Three Months Ended

October 1, 2016 September 26, 2015

Consumer Healthcare (CHC) Net Sales Gross Profit Operating Income Net Sales Gross Profit

Operating Income

Reported $ 669.1 $ 216.8 $ 100.1 $ 675.2 $ 231.0 $ 117.3

Adjustments:

Amortization expense related to acquired intangible assets $ — $ 13.2 $ 19.2 $ 13.2 $ 19.3

Amortization of inventory fair value adjustments related to acquisitions — — — 0.6 0.6

Impairment charges — — 3.7 — —

Operating results attributable to held-for-sale business (21.0 ) (3.4 ) (0.1 ) — —

Restructuring charges — — 5.1 — 2.0

Contingent consideration fair value adjustment — — 0.2 — —

Acquisition and integration-related charges — — 0.1 — (0.5 )

Adjusted $ 648.1 $ 226.6 $ 128.3 $ 244.8 $ 138.7

As a % of adjusted net sales (2016) / As a % of reported net sales (2015) 35.0 % 19.8 % 36.2 % 20.5 %

For Comparative Purposes*

Reported $ 675.2

Operating results attributable to held-for-sale business (40.9 )

Adjusted $ 634.3

Three Months Ended

CHC Research and development expense October 1,

2016 September 26,

2015

Reported $19.6 $18.5

Operating results attributable to held-for-sale business (0.2) (0.5)

Adjusted $19.4 $18

Adjusted year-over-year change 8%

*Q3 2015 net sales adjustment made for Q3 2016 adjusted net sales comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. Q3 2015 gross margin and operating margin use reported net sales as the denominator.

34 34

TABLE II (CONTINUED)

PERRIGO COMPANY PLC



(in millions)

(unaudited)



Branded Consumer Healthcare (BCH) Net Sales Gross Profit Operating

Income (Loss) Net Sales Gross Profit Operating Income

Reported $ 304.0 $ 131.6 $ (1,684.3 ) $ 302.2 $ 164.3 $ 4.4

Adjustments:

Amortization expense related primarily to acquired intangible assets — 12.5 40.6 4.5 36.3

Impairment charges — — 1,670.0 — —

Amortization of inventory fair value adjustments related to acquisitions — — — 0.5 0.5

Operating results attributable to held-for-sale business (0.1 ) 0.2 3.0 — —

Restructuring charges — — 1.3 — 0.2

Contingent consideration fair value adjustment — — (0.4 ) — —

Acquisition and integration-related charges — — 0.1 — 2.8

Adjusted $ 303.9 $ 144.3 $ 30.3 $ 169.3 $ 44.2

As a % of adjusted net sales (2016) / As a % of reported net sales (2015) 47.5 % 10.0 % 56.0 % 14.6 %

35 35

TABLE II (CONTINUED)

PERRIGO COMPANY PLC



(in millions)

(unaudited)



Prescription Pharmaceuticals (Rx) Net Sales Gross Profit Operating Income Net Sales Gross Profit

Operating Income

Reported $ 267.4 $ 128.1 $ 77.9 $ 260.3 $ 130.4 $ 91.0

Adjustments:

Amortization expense related to acquired intangible assets 30.4 30.7 18.4 18.6

Contingent consideration fair value adjustment — 5.0 — —

Adjusted $ 158.5 $ 113.6 $ 148.8 $ 109.6

As a % of reported net sales 59.3 % 42.5 % 57.2 % 42.1 %



Specialty Sciences Net Sales Gross Profit Operating Income Net Sales Gross Profit

Operating Income

Reported $ 93.4 $ 20.6 $ 23.3 $ 84.5 $ 12.0 $ 9.0

Adjustment:

Amortization expense related to acquired intangible assets 72.8 72.8 72.5 72.8

Adjusted $ 93.4 $ 96.1 $ 84.5 $ 81.8

As a % of reported net sales 100.0 % 103.0 % 100.0 % 96.9 %

36 36

TABLE III

PERRIGO COMPANY PLC


CONSTANT CURRENCY

(in millions)

(unaudited)

Three Months Ended

October 1, 2016 September 26,

2015 Total Change FX Change

Constant Currency Change

Net sales

Consolidated* $ 1,333.1 $ 1,303.8 2% 1% 3%

CHC* 648.1 634.3 2% 1% 3%

BCH* 303.9 302.2 1% 1% 2%

Rx 267.4 260.3 3% 1% 4%

Specialty Sciences 93.4 84.5 10% 1% 11%

*2016 and 2015 net sales are adjusted to exclude sales attributable to held-for-sale businesses. See Tables I and II for non-GAAP reconciliations.

37 37

TABLE IV

PERRIGO COMPANY PLC


CURRENT 2016 GUIDANCE


(unaudited)

Full Year

2016 EPS Guidance

Reported 2016 Guidance Diluted EPS Range $(9.34) - $(9.04)

Amortization expense related primarily to acquired intangible assets 4.58

Goodwill, intangible asset, investment and held-for-sale impairment charges 14.99

Acquisition, integration and restructuring-related charges 0.27

Other (1) 0.09

Tax effect of non-GAAP adjustments (2) (3.74)

Adjusted 2016 Guidance Diluted EPS Range $6.85 - $7.15

(1) Equity method investment losses and results of operations from held-for-sale businesses

(2) Includes tax effect of pretax non-GAAP adjustments calculated based upon the specific rate of the applicable jurisdiction of the pretax item and certain adjustments for discrete tax items in the first nine months of the year.

Full year 2016 Guidance

Effective Tax Rate Taxes Pre-Tax Income Effective Tax Rate

Reported $ (362 ) $ (1,681 ) Approx. 22%

Tax effect of non-GAAP adjustments 537 2,862

Adjusted $ 175 $ 1,181 Approx. 15%

38 38

TABLE IV (CONTINUED)

PERRIGO COMPANY PLC


CURRENT 2016 GUIDANCE

(in millions)

(unaudited)

Full Year

2016 Guidance

Consolidated Net Sales

Reported $5,400 - 5,600

Operating results attributable to held-for-sale businesses (100)

Adjusted $5,300 - 5,500

Consolidated DSG&A as a % of Net Sales

Reported Approx. 22.2%

Amortization expense related primarily to acquired intangible assets (2.6)%

Operating results attributable to held-for-sale businesses (0.3)%

Restructuring and integration-related charges (0.3)%

Adjusted Approx. 19.0%

Consolidated R&D as a % of Net Sales

Reported Approx. 3.54%

Amortization expense related primarily to acquired intangible assets (0.02)%

Operating results attributable to held-for-sale businesses (0.02)%

Adjusted Approx. 3.50%

Consolidated Operating Income

Reported $(1,453) - $(1,403)

Amortization expense related primarily to acquired intangible assets 659

Goodwill, intangible asset, and held-for-sale impairment charges 2,127

Operating results attributable to held-for-sale businesses 9

Restructuring and integration-related charges 38

Adjusted $1,380 - $1,430

39 39

TABLE V

PERRIGO COMPANY PLC


2016 SEGMENT GUIDANCE

(in millions)

(unaudited)

Full Year

2016 Guidance

CHC Net Sales

Reported $ 2,700

Operating results attributable to held-for-sale business (100 )

Adjusted $ 2,600

BCH Net Sales

Reported $ 1,300.1

Operating results attributable to held-for-sale business (0.1 )

Adjusted $ 1,300.0

Actuals Guidance

First Half of 2016 Second Half of 2016

CHC Operating Margin

Reported 15.4% Approx 17.8%

Amortization expense related to acquired intangible assets 3.0% 1.5%

Operating results attributable to held-for-sale business 0.5% 0.1%

Impairment charges 0.6% 0.1%

Integration and restructuring-related charges 0.2% 0.2%

Adjusted 19.7% Approx. 19.7%

BCH Operating Margin

Reported Approx. (125.6)%

Amortization expense related primarily to acquired intangible assets 6.3%

Impairment charges 128.5%

Integration and restructuring-related charges 0.4%

Operating results attributable to held-for-sale business 0.4%

Adjusted Approx. 10%

Rx Operating Margin

Reported Approx. 24.4% - 28.4%

Amortization expense related to acquired intangible assets 15.6%

Adjusted Approx. 40.0 - 44.0%

40 40

TABLE VII

PERRIGO COMPANY PLC



(unaudited)

Twelve Months Ended December 31,

2015 Diluted Earnings (Loss) per Share

Reported $ (0.23 )

Adjustments:

Amortization expense related to acquired intangible assets 3.65

Losses from derivatives associated primarily with the Omega acquisition 1.87

Goodwill, intangible asset, held-for-sale and investment impairment charges 1.64

Legal and consulting fees related to Mylan defense 0.70

Acquisition and integration-related charges 0.25

Restructuring charges 0.19

Omega financing fees and loss on early debt extinguishment 0.14

Amortization of inventory and fixed asset fair value adjustments related to acquisitions 0.13

Initial payment made in connection with an R&D arrangement 0.13

Losses from equity method investments 0.08

Tax effect of non-GAAP adjustments (1) (0.95 )

Adjusted $ 7.59

(1) Includes tax effect of pretax non-GAAP adjustments calculated based upon the specific rate of the applicable jurisdiction of the pretax item and certain adjustments for discrete tax items.

41 41

TABLE VIII

PERRIGO COMPANY PLC



(unaudited)

Three Months Ended

October 1, 2016

Consolidated Tysabri® Excluding Tysabri®

Operating cash flow $ 304.0 $ 89.3 $ 214.7

Adjusted net income $ 236.3 $ 90.9 $ 145.4

Cash conversion ratio 129 % 98 % 148 %

Three Months Ended

October 1, 2016

September 26, 2015 Growth

Reported Net Sales

US CHC $ 584.6 $ 584.4 — %

OUS CHC 84.5 90.8 (7 )%

Total reported net sales $ 669.1 $ 675.2 (1 )%

Reported US CHC sales $ 584.6 $ 584.4 — %

Operating results attributable to held-for-sale business (21.0 ) (40.9 ) (49 )%

Adjusted US CHC sales $ 563.6 $ 543.5 4 %

42 42

TABLE VIII (continued)

PERRIGO COMPANY PLC



(unaudited)

Three Months Ended

October 1, 2016

September 26, 2015

Total Change

Adjusted operating income

Consolidated $ 344.0 $ 359.2 (4 )%

CHC 128.3 138.7 (7 )%

BCH 30.3 44.2 (31 )%

Rx 113.6 109.6 4 %

Specialty Sciences 96.1 81.8 17 %

Adjusted gross profit

Consolidated $ 632.9 $ 659.0 (4 )%

CHC 226.6 244.8 (7 )%

BCH 144.3 169.3 (15 )%

Rx 158.5 148.8 7 %

Specialty Sciences 93.4 84.5 10 %

Perrigo 2016 Third Quarter Financial...

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