Perrigo Company plc · NYSE:PRGO
Perrigo — Investor Day (September 2007)
73 slides from Perrigo's investor day presentation, Sep 18, 2007
Slide 1: Perrigo 2007 Analyst Conference
Perrigo 2007 Analyst Conference September 18, 2007 PERHIGD’ Woday's Agenda mCempany Overview Review 2007 accomplishments ¢Perrigo’s Corporate strategy «Business Unit Review «Global Capabilities *Quality, Operations and R&D *Financial Overview “Q&A
Slide 2: Safe Harbor Statement
5 Safe Harbor Statement Note: Certain statements in this presentation are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's f
Slide 3: The Problem: Rising Healthcare Expenditures
The Problem: Rising Heal Expenditures heare ON AGING POPULAT! COST CONTAINMENT Aging population, living Healthcare costs are rising longer and demanding more healthcare To meet the world’s growing need for high quality, affordable health care products
Slide 4: A Global Integrated Healthcare Company
A Global Integrated Healthcare Company Global Capabilities R&D Quality Manufacturing Finance, IT, Lega
Slide 5: 2007 Accomplishments
PERG 97 Accomplishments Achieved record sales for the year - $1.45 billion Another strong new product launch year - $77 million Invested in R&D - $66 million Continuing to diversify our portfolio * Coughicold sales account for 12% of total Improved our balance sheet - Cash flow ~ $130 million PERHRI
Slide 6: 2007 Accomplishments and Growth Strategy
3007 Accomplishments Acquired 2 Pediculicide products (5 SKUs) + Purchased store brand) products - $12 million cash * Compare to Rid® and Nix®- a new product category ¢ $10 million in sales Acquired 9 Generic Dermatalogical Products * Strong contributor in the 4" quarter - Enhances existing portfoli
Slide 7: PERFIGD
PERFIGD e Recruited Sr. VP of Global Quality position ¢ Expanded Quality team ¢ Invested $16 million this year ¢ Established Global Quality team / metrics ¢ Continuous improvement Customer service levels Improved manufacturing output Building critical mass Rescued customers to fill supply gaps Stren
Slide 8: Low Cost Manufacturer
PERARIGD 1 Cost Manufacturer * Procurement savings through global sourcing * Global manufacturing network Vertical integration ¢ Leveraging API knowledge + Initiated activities to improve gross margins and efficiency ¢ $77 million in new products in FY07 Nicotine Gum ($50+ million projected in CHC f
Slide 9: Key Strategies for 2008 and Beyond
PERHIGD’ Bowe Strategies for 2008 and Beyond Internal R&D New Products, New Products, New Products! — Omeprazole Coated Nicotine Gum Cetirizine tablets and liquid Famotidine Complete Clobetasol Foam Ciclopirox solution Leverage competitive market opportunities Focus on Generic Rx topicals with signi
Slide 10: Business Overview — CHC
WELCOME TO PERAIGD — Business Overview — CHC Jeff Needham, Senior VP Commercial Business Development Perrigo Consumer Healthcare Business Segments ¢ US Consumer Healthcare — Store Brand OTC — Store Brand Nutrition — Contract Manufacturing ° International Markets — Canada — Mexico — United Kingdom 10
Slide 11: Perrigo Markets: Total Market Size of $24 Billion
of $24 billion Perrigo Markets OTC Nutrition Total Perrigo competes in US categories with a total market size CONSUMER HEAL “Annual Retail | Store Brand Sales ($B) Share $19.3B 21.6% $4.7B 25.6% $24.0B _ 22.5% Analgesics Store Brand share is strong among key categories INSUMER HEALTHCA\ 40.9 CCAS Gl
Slide 12: Consumer Healthcare Market and Top Customers
CONSUMER HEAL The overall healthcare market continues to grow 25.9 Analgesics CCAS Gl NRT Vit/Min @ Category @ Store Brand Source: IRI,52WE8-05-07 4 Top U.S. customers count on Perrigo to help drive their store brand business Ahold Ahold McKesson m@| © Albertson’s Meijer AmeriSource Bergen Publix Su
Slide 13: Magic of Store Brands
PERRIGD CONSUMER HEALTHCARE Magic of Store Brands Store Brands provide consumer value while driving retailer profitability National Brand Consumer Price $10.00 Retail Cost 7.50 Retail Profit $2.50 % Profit 25% Consumer Savings PERFIGO CONSUMER HEALTHCARE Store Brands Drive Retailer Profit Contributi
Slide 14: Equivalence
Equivalence * Same active a = ingredients ¢« Comparable product attributes * Packaging that invites comparison The foundation of our marketing approach is National Brand Sige Br Tage! Compare]. Healthcare .— - Store Brand Fs Pits Sek + AND) u| store Brand ect | Consumers ePromouonss) | foowiedsee “i
Slide 15: Our Growth Drivers
Our growth drivers... * Innovation — New Products = Aggressive expansion of ANDA portfolio — Capitalize on switches of nearly $10B over the next 5 years — First-to-market performance * Solidify Perrigo’s Share of SB Healthcare Market = Long-term ownership of recent business gains — Entry of new cate
Slide 16: Omeprazole OTC Update
Omeprazole OTC Update e Filed: April 2006 e Tentative Approval: June 2007 ° Prilosec®©OTC $700M and growing (20%+ vs. LY) * Dexcel patent challenge process e End of 30 Month Stay: November 2008 12 PERAIGO CONSUMER HEALTHCARE Perrigo is the Clear Leader in Rx to OTC Switch + 57 approvals over the pas
Slide 17: Retailer Marketing Support
Retailer Marketing Support A key component of the Perrigo Advantage * Category Management — Serve as “Captain” for Store Brand analysis/decisions — Identify opportunities/strategies to maximize SB growth * Consumer Insights — Research — To base marketing/merchandising decisions — Convert consumers t
Slide 18: Customized Marketing Support
Customized Marketing Support Customer-specific materials designed/produced over past 12 months 428 Product Displays ¢ The battle is won or lost at the shelf - Distribution - Facings - Package Design PERRIGD CONSUMER HEALTHCARE esl esi toate
Slide 19: CHC Strategic Focus
PERRIGO CONSUMER HEALTHCARE OTC Proven Performance Oral Dose Smoking Cessation Q4'04 Q1'06 Current After PRGO launch of 18 uncoated gum PERRIGD CONSUMER HEALTHCARE Perrigo’s CHC Business Strategic Focus * Reinforce our position as the pre-eminent QUALITY manufacturer in the Store Brand marketplace +
Slide 20: Business Overview — UK
WELCOME TO “BEA PERRIGO a CONSUMER HEALTHCARE | Business Overview — UK Jeff Needham, Senior VP Commercial Business Development é -— Swadlinecte 0 Birmingham { } \fowiisl OA _ Watton London Bamstaple . ) rorteey J Otho UK's leading supplier of own label OTC medicines and nutritional supplements Annua
Slide 21: We compete in two primary businesses
We compete in two primary businesses OTC Medicines Nutritional Products * 74 Product Licenses | [* 130 Herbal Licenses | — Analgesics [* 470 VMS formulations | — Indigestion — Adult Multivitamins — Cough, Cold & Flu — Cod Liver Oil — Hayfever — Glucosamine — Gl— Stomach Upset = Herbal Supplements —
Slide 22: New Products Drive Growth
New Products Drive Growth New Store Brand Products ~ Bal — +B Be os ko Korean Ginseng UK Contract Manufacturing Business GED Wyeth recy ssimeaor PG BENCKISER ap OO em oy @ () Bayer Winthrop a ¢ Asignificant, strategic part of our UK business * Perrigo enjoys a strong reputation with global pharmaceu
Slide 23: Our UK Business Strategy
To help bull ‘e healthy baby Bisodol os ; Our UK Business Strategy ~ Solidify store brand leadership position Growth through new products Strategic expansion of our Contract Manufacturing business Look for opportunities to expand business into other EU markets 23
Slide 24: Business Overview — Mexico
Business Overview — Mexico Vicente Saro, Managing Director PERHIGE’ Io is Perrigo Mexico? More than 66 years of experience in Mexican Pharma market + Leaders in Store Brand Market in Mexico with 52% share + Sales & Marketing Offices in Mexico City + Manufacturing Plant in Ramos Arizpe, Coahuila (Nor
Slide 25: Store Brand Competitors
Store Brand Competitors Merck Sanfer 6% Kendrick “4 6% Serral_ ~ 9% I Protein- Apotex 14% Source: CID— Rolling 12 months until July 2007 Andromaco 1% Figures in Units 3 25
Slide 26: Store Brand Program and Product Growth
PERFIGD joing Store Brand program with all major Retailers and Pharmacy Chains in Mexico WAL*MART CosTco FARMACIAS DEL bevigivides (4\dhorro soonercal (@) \f eit \ “AS PERFIGTD Brand Product Growth . Tigo Mexico develops new products in different therapeutic classes * During FY 06 & 07 Perrigo Mexic
Slide 27: Store Brand Product Growth
PERFIGH (Store Brand Product Growth * Perrigo Mexico currently has 25 new products submitted to the health authorities to be launched in the next 12-18 months —National Brand sales of these 25 products is $127 million — Perrigo Mexico estimates an initial 12% market share PERHIGD (Business Breakdown
Slide 28: Mexico Business Strategies FY08
PERHIGD a Mexico Business Strategies FY08 * Primary focus on continued Store Brand segment growth * Selective, strategic growth of government business ¢ New product development ¢ Strategic M&A’s PERHIGD’ oawary - CHC Mass Customization Scale and Breadth of Offering Promotional Capabilities New Produ
Slide 29: Business Overview — Rx Pharmaceutical
WELCOME TO PERHIGD — Business Overview — Rx Pharmaceutical Sharon Kochan, EVP US Generics PEHRIGD Ry PHARMAGBUTICALS Generic Rx Business Top 3 Topical Players QUARTERLY PERFORMANCE KEY GROWTH DRIVERS iltiond + Top 3 player in topicals $45 ‘$40 + High barrier to entry — clinical endpoints $35 FY07 Sa
Slide 30: US Generics Market Overview
PERHIGO Rx PHARMAGBUTIGALS WS Generics Market Overview Market Drivers «Increased generic utilization ¢ Continued patent expiration ¢ Favorable demographic — aging population * Consolidation in the Pharma industry * Political trends, Democratic shift PERAIGD Rx PHARMACEUTICALS nerics Market Overview
Slide 31: Competitive Landscape
PERRIGO Ry PHARMACEUTICALS, Competitive Landscape US Generic Market US Topical Generic Market Highly Fragmented Key Players 20% 7194 141 a 114 Market Share Adjusted WAC Dollars ($M) 8 38 as “0 ‘Source: WK Health, Adjusted WAG Dollars (50%) Strategic Direction Achieve leadership position in the “exte
Slide 32: Rx Business Snapshot
PERRIGO Rx PHARMAGEBUTIGALS [Rx Business Snapshot nual R&D spend of more than 13% of sales * One of the strongest topical portfolios in the industry — 60 Topicals ANDAs and 5 Solid Oral Dose ANDAs + 13 ANDAs Pending — Exclusively topicals, with the exception of several Rx-to-OTC switch candidates —
Slide 33: Acquired Topical Products
PERRIGO Rx PHARMAGEUTIGALS, Oe" Mgpiroetn ointment USP neta? grams titi | puptrocin ointment USP, iets ot he : Terconazole Vaginal Suppositories, 00") * $20M+ of incremental annual sales enhances our position in the generic topical market ¢ Synergies with current manufacturing facilities — No increm
Slide 34: Rx Pipeline
PERHIGD Rx PHARMAGEUTICALS « Enhanced Packaging — Color coded dosage forms/strengths — Easy to read on shelf — Reduces possible dispensing errors ¢ Time Savings — One order point — One invoice — One less contact PERAIGO Rx PHARMACEUTICALS, son ll Pipeline Ciclopirox Topical Suspension 0.77% = Launch
Slide 35: Business Overview — API
WELCOME TO PERRIGD” — Business Overview - API Rafi Lebel, EVP & General Manager Perrigo Israel Rev. QUARTERLY PERFORMANCE (Millions) $35 $30 $25 $20 S15 $10 $6 $0 Active Pharmaceutical Ingredients — KEY GROWTH DRIVERS * FY07 Sales of $122 million One of the world’s largest API businesses Selling to
Slide 36: API Market Drivers and Strategic Direction
PERRIGO Drivers * Increased generic utilization in main markets * Continued patent expiration * Favorable demographic — aging population + Vertical integration Negative + Vertical integration + Market consolidation in which APIs and Pharma entities are joi into a unified integrated business * New ag
Slide 37: Perrigo Israel (ChemAgis) API Facilities
Perrigo Israel (ChemAgis) 2 y API Facilities Ze Tel-Aviv = + + API ete — Ramat Hovav, Israel if | — Weisbaden, Germany \ : Manufacturing facilities in Israel and \ Jw Germany meet all FDA and EU \ F requirements and cGMP compliant 7 f anv ( Remote Location in f Israeli Tax Enterprise Zone Therapeuti
Slide 38: API Key Activities & Updates
ge- West Europe ees . Mediterranean <1% ‘a & South America 2% Key Activities & Updates FY08 forecast sales growth of 7% Moxonidine continues to grow Securing long term agreements with key customers to major products Annual R&D spend 10% of sales Submitted Temozolomide PIV Increase forward integratio
Slide 39: API Pipeline and Opportunities
PERRIGD Rocoronium Cetirizine* - US Market (zyrec’) Modafinil (Provigit) Rocoronium (zemuron*, Esmeron*) Tioconazole™ (vagistat-1*) FY09 to FY11 (partial list) Anastrazole™ (Arimidox®) Atovaquone* (Mepron®, Malarone*) Azacitidine (vidaza*) Donepezil (ancept”) Exemestan* (Aromasin®) Imiquimod* (aidar
Slide 40: Perrigo — Other Category: Careline
PERHIGH Perrigo — “Other” Category Careline PERRIGG GP creine Perrigo Israel * Developing, manufacturing, marketing and selling in Israel a broad range of consumer products under Careline®, Neca® and Natural Formula® brand names since 1981 Developing, manufacturing and selling Store Brand skin care
Slide 41: Careline Strategy and Activities
PERAIGD Wain Changing the sales mix by focusing on four core categories with the highest growth and gross margin potential: — Skin Care — Color cosmetics — Hair styling — Hair care (Shampoo & Conditioner) ¢ Launching new products in each of the core categories * Repositioning of the new Careline bra
Slide 42: Launching New Products
launching New Products Activities Continued sales growth Launch new products in the four core categories in Israel Expand the products portfolio and customer base in US Store Brand market Increase GM and operational efficiency: — Higher margin product mix — Manufacturing US Store Brand products in I
Slide 43: Perrigo — Other Category: Pharmaceuticals & Diagnostics Israel
PERFIGG eading Consumer Products player in Israel Increase sales and Ol by focusing on core categories Leveraging our know-how and expertise to develop and manufacture in Israel store brand skin care products for US market Leveraging Perrigo position in| the store brand market to become a leading pl
Slide 44: Pharmaceuticals & Diagnostics Israel
PERAIGO . manufacturing, marketing and selling Pharmaceuticals (Rx & OTC) and Diagnostics in Israel since 1961 Majority of sales derived from distribution of branded products Arrangements with Bayer Schering Pharma (BSP), Siemens, Bayer Diagnostics, Solvay, Nycomed, Pfizer, GSK Leading local Pharmac
Slide 45: FY08 Forecast and Strategy
PERHIGD * Installment of two Siemens automation systems + Maintaining and improving the Diabetes care business * NewLaunches: hematology tests, immuno tests, evolution for coagulation, insulin injection pen PERHIGD FY08 Forecast sales growth more than 10% Maintain our leading position in core catego
Slide 46: Conclusion and Summary — Perrigo Israel
[eenetusion ding Pharmaceutical player in Israel Increase sales and Ol by launching new products developed by Perrigo & principals Leveraging Perrigo CHC portfolio in Israel Leveraging the development and manufacturing capabilities to develop and manufacture Rx products for US and EU PERRIGD PERHIGD
Slide 47: Global Quality
WELCOME TO PERRIGO eEeV7=" a Global Quality Louis Yu, PhD., Senior VP Global Quality PERAIGD is Defined by Meeting Customer Requirements 47
Slide 48: Our Goal: Consistent Quality and Sustainable Compliance
Our Goal: Consistent Quality and Sustainable Compliance + Effectiveness — being available when needed & consistently producing the desired) or expected output Efficiency — avoids loss or waste of energy and resources input to produce an output Compliance — conforms to regulations; products that poss
Slide 49: Core GMP Systems
PERHIGO’ (@Fba core GMP Systems ity M + Assure overall system compliance (e.g. Quality Management Systenr auditing, training, failure investigations) Facility mae Mm. Assure appropriate conditions for manufacturing (e.g. physical Equipment Systems environment z Cai amunn [Material Systems * Control
Slide 50: The c in cGMP and Cost Benefit Analysis
However, the c part of the cGMP is important: ¢ It means we must continually update our systems, procedures, standards to current FDA requirements and industry practice ¢ It means following procedures and holding tightly to our corporate core value of integrity, respect and| responsibility Cost Bene
Slide 51: Invest for the Future / Priorities in Quality
PERHIGD linvest for the Future CoQ Current — State \\ State Time Invest in sustainable Quality and Compliance now to help bring down the total cost of Quality COQ = Cost of Quality P= preventiverost IN =Investment | = Inspection Cost ROI= Return on Investment NC= Non-cont ee Cost PERAIGD ive Priorit
Slide 52: Global Supply Chain/Operations
Global Supply Chain/Operations John Hendrickson, EVP Global Operations and Supply Chain PERRIGD j fo Operational and Supply Strengths High volume purchasing with global footprint Integrated AP! production Broad manufacturing capabilities and flexibility Large packaging operations with mass customiza
Slide 53: Broad Manufacturing Capabilities
Broad Manufacturing Capabilities ° Tablets * Capsules * Solutions ¢ Suspensions * Sprays (Nasal) * Suppositories * Creams/ointments ® ¢ Powders * Lozenge * Foam Global Operations Footprint Domestic International + Michigan * Mexico - OTC/Rx Production — OTC/Rx Production + New York * England ; — OTC
Slide 54: Mass Customization
MASS CUSTOMIZATION One Branded Item Yields More Than 450 Store Brand SKUs * 51 customers — Unique packaging * 10 sizes — 20, 24, 50, 65, 100, 120, 165, 250, 500, 750 count * 45 promotional configurations — Twin packs, bonus sizes, displays * 17 case pack combinations 10,000+ SKUs = High Barrier to E
Slide 55: Broad Manufacturing Scale
Broad Manufacturing Scale Facilities Solid dose Liquids Semi-Solids API Noth | plants ‘America Europe | 3 Plants 3 Billion Tablets Middle! - 5 Plants 2 Million Units 6 Million Units 2.6 tons Far East Total: 34 Billion Tablets 4172 Million Units 431 Million Units 2.6 tons 6 Otential future network an
Slide 56: Built-in Value for our Customer
Built-in PRODUCT- Value for our Customer. Audi’ Qualifications | Suppliers OL CUSTOMER INFORMATION = Integration for Efficiency and Service 8 Customer Integrated Value Stream with Quality UV Bar Codes ‘On Every Bottle LabetiCarton Vision System on Every Line | Brite Stock Produced to Pull of Custome
Slide 57: Global Supply Chain/Operations Focus
PERRIGD al Supply Chain/Operations Focus + Integration of Compliance/Quality processes throughout the operations — Best-in-Class change-over operations — Full integration of “CAPA” strategies — Value Stream alignment of Quality processes * Deliver customer senvice that exceeds expectations — Full in
Slide 58: Supply Chain Focus / Global Scientific Affairs
PERAIGD 0 Supply Chain/Operations Focus ¢ Inventory/working capital reduction — Increased supplier integration — LLean-Sigma process expansion — increased velocity — Forecasting/demand planning processes * Labor/OH Efficiency — Utilize Lean-Sigma processes to streamline flow — Quality focus on “RFT”
Slide 59: Global Scientific Affairs (GSA)
GLOBAL SCIENTIFIC AFFAIRS (GSA) Centers of Excellence Allegan, MI ‘OTC R&D (eS R&D - topicals “Global Reg. Affairs ee) *APIRED Pre +OTC R&D New Products Reformulations ROW = Rest of World GSA Overview * Integrated Global R&D organization * Responsible for: — Organic development of new products — Sup
Slide 60: GSA Capabilities
‘SA Capabilities Development of range of dosage forms Complex topical products Specialized dosage forms High barrier ANDA/ NDA products: Solids & Liquids GSA Capabilities Rx to OTC Switch products Clinical Development Regulatory Affairs Project Management 60
Slide 61: API R&D and Innovation Performance
PERRIGD F.. in US - sales to 25 countries + Core Competencies — Non-infringing process development — 30+ patents granted; new IP: ~ 5+ new a year — From grams to multi-ton chemistry — Including niche chemistry (potent steroids, anti-cancer & CNS agents) ¢ Pipeline — 30+ projects, including FDF for E
Slide 62: Perrigo — Continually investing in R&D
Perrigo — Continually investing in R&D — in both $ and as % of sales $85 4 4.6% $65» Millions $45 + $25 T 2004 2005 2006 2007 2008 plan The Power of Perrigo « Approved ANDAs / NDA: « New product drug listing: ¢ New promotional materials reviewed: ¢ Government licenses / registrations maintained: 62
Slide 63: R&D Priorities and Global Capabilities Summary
PERRIGO Complex non-infringing Rx topicals = Modified release OTC ANDAs / NDAs — Rx to OTC switches Accelerate building R&D resources in India — Access to talent and lower cost — Establish core competency in solid dose development — Develop Regulatory support & maintenance function Establish Global
Slide 64: Financial Review
Financial Review Judy Brown, EVP and Chief Financial Officer perating Basis - see appendix for reconciliation to GAAP) ($ millions) H Net Sales M Net income $1,337 3 Yr CAGR Diluted EPS Shares O/S 64
Slide 65: Gross Profit, Operating Income, Cash Flow and EBITDA
PERFIGD rofit and Operating Income as Percent of Sales djusted Operating Basis - see appendix for reconciliation to GAAP) @ Gross Margin ® Operating Margin 30.1% ont erin Cash Flow and Adjusted EBITDA (See appe for reconciliation to GAAP) ($ millions) = Operating Cash Flow = Adjusted EBITDA $200 $41
Slide 66: Working Capital and Financial Performance Goals
PERFIGD ering Capital — Total and as Percent of Sales 2006 PERHIGD ic. Financial Performance - Goals Annual Growth over any 3 year period Revenue Growth +6-8% Net Income + 10-12% EPS. + 10-12% Operating Cash Flow 2 125% of Net Income Return on Equity + 12-15% fer 66
Slide 67: Financial Performance and FY2008 Outlook
PERARIGD Financial Performance — How did we do? Revenue Growth Net Income EPS Operating Cash Flow Return on Equity Y at or above goal over any 3 year period Alone FY 2007 FY 2005 - FY2007 Annual Growth +6-8% + 10-12% + 10-12% = 125% of Net Income + 12-15% below goal Gs 2000 Outlook — Adjusted Operat
Slide 68: Story of Both Growth and Investment
PERHIGD Story of Both Growth and Investment cept for EPS) 2007 2008 F R&D Invest Eamings Per Share) | | 16.5% 16.0% 15.5% 15.0% 14.5% 14.0% 13.5% 13.0% 2005 2006 mm DSG&A spend DSG8A as a % of Sales
Slide 69: Tax Rate — 2008 and Beyond
25-28% 2005 2006 2007. 2008 F ae PERHIGD serra — 2008 and Beyond + Inthe continuous process of moving to Pharmaceutical “best practices” structure Net result — tax rates continue to decrease over time Fiscal 2008 25% - 28% Fiscal 2009/10 24% - 28% Currently working on tax strategies which are expect
Slide 70: Expectations for 2008
PERHIGD rating Basis - see appendix for reconciliation to GAAP) Sales @ Net income $1,550-1,575 $1,447 $1,337 2005 2006 2007 2008 F Diluted EPS - $0.83 $0.84 $0.89 $41 .00-$ 11.10 Financial Performance — Expectations for 2008 Annual growth FY2006 over any 3 year period - FY2008 Revenue Growth +6-8%
Slide 71: Financial Plan Summary
PERRIGD Pircin Plan Summary Leverage target: Debt to EBITDA less than 3.5 (maintain investment grade) Fixed vs. Floating interest: 60:40 Cash utilization: — Reinvest in the businesses — Strategic acquisitions — Dilution reduction (Share repurchase) — Income to shareholders (Dividend) Business strate
Slide 72: Debt Capacity
Debt Capacity jm Add'l Capacity @ 3.5x | i= Credit Agreement Dry Powder ——_. 6/30/07 Israel =| Debentures O/S $278 million [ ae Bank Financing at FYE PERFIGH * Total/additional capacity at current EBITDA levels Assumes no incremental EBITDA + Maintains Investment Grade O/S Debt (Becicto-Back Loan *
Slide 73: ROIC and Conference Takeaways
in Invested Capital — Our new standard e a Adjusted Operating Income, adding back deal-related Net Operating Profit amortization less taxes at After Taxes (NOPAT) <= apple eee ny Invested Capital Total Assets less Cash, Investments, Goodwill; Deal- telated intangibles, Deferred taxes, Payables & Acc