Perrigo Company plc · NYSE:PRGO
Perrigo — Merger or Acquisition (March 2005)
35 slides from Perrigo's merger presentation, Mar 6, 2005
Slide 1: Acquisition of Agis Industries
Acquisition of Agis Industries “Expanding Value in Healthcare” March 6, 2005
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Acquisition of Agis
Acquisition of Agis Dave Gibbons: Chairman, Perrigo Mori Arkin: Chairman, Agis John Hendrickson: EVP, Perrigo Rafi Lebel: CEO, Agis Doug Schrank: CFO, Perrigo
Slide 4: A Unique and Powerful Combination of Two Leading Healthcare Companies
A Unique and Powerful Combination of Two Leading Healthcare Companies • Market leader in store brand • Strong and growing position OTC pharmaceuticals & in topical generics nutritionals • Growing API business • Emerging generics platform • Presence in OTC store • Excellent customer brand relationshi
Slide 5: Both Companies Have Consistent Track Records of Growth
Both Companies Have Consistent Track Records of Growth… Combined Net Sales ($mm) Net Sales ($mm)1 Net Sales ($mm)2 6% CAGR 13% CAGR 8% CAGR 1,295 1,111 1,178 1,037 835 834 898 763 344 397 274 276 2001A 2002A 2003A 2004A 2001A 2002A 2003A 2004A 2001A 2002A 2003A 2004A Operating Income ($mm) Operating
Slide 6: Driving Significant Shareholder Value
…Driving Significant Shareholder Value Combined Market Cap ($mm) Market Cap ($mm) Market Cap ($mm) 2,500 2,500 2,500 2,000 2,000 2,000 1,500 1,500 1,500 1,000 1,000 1,000 500 500 500 0 0 0 May-2000 to Nov-2004 May-2000 to Nov-2004 May-2000 to Nov-2004 Source: FactSet 1 Converted to US$ using spot ex
Slide 7: Value. Quality. Operational Excellence. Positioned For Growth.
Value. Quality. Operational Excellence. Positioned For Growth.
Slide 8: Founded 1887, Management LBO 1987, IPO December 1991
• Founded 1887 • Management LBO 1987 • IPO December 1991 (PRGO)
Slide 9: Store Brand Market Leader
Store Brand Market Leader • $900 million business - strong financials • Consumer packaged goods with pharmaceutical focus – 20 facilities – 2.8 million square feet – 3,900 employees – In Michigan, 13 facilities – 2 million square feet – 2,400 employees • Quality and customer service reputation • Pre
Slide 10: Supplier to more than 300 food, drug and mass merchandise chains
Supplier to more than 300 food, drug and mass merchandise chains...invented the category.
Slide 11: Slide 11
Slide 12: Store Brand Market Share
Store Brand Market Share Total market at retail ($ billions): S/B Perrigo Sales* Share Share • OTC $ 8.3 21% 65% • Nutritional $ 2.8 29% 25% $11.1 23% 56% Category Retail Market SB Share Rank Cough/Cold/ $3.5 billion 20% #1 Allergy/Sinus Vitamins $2.5 billion 29% #1 Analgesics $2.2 billion 22% #2 (T
Slide 13: Perrigo Product Development/Operational Capabilities
Perrigo Product Development/Operational Capabilities • Solid dose • Sustained release • Liquids • Topicals • Suspensions • Suppositories • Effervescents
Slide 14: Overview of Perrigo
Overview of Perrigo Over Fifteen Categories… and 500 Formulas OTC OTC Miscellaneous Nutrition Analgesics Feminine Hygiene Synthetics Cough/Cold/Allergies Diagnostic Tests Naturals Antacids Dermatological NBEs Laxatives Herbal Supplements Diet Aids Nutritional Suppositories Supplements Sleep Aids Die
Slide 15: Power of Store Brands
Power of Store Brands National Store Brand Brand Retail Price $1.00 $.70 Retail Profit .25 .40 % Profit 25% 57% Consumer Savings 30%
Slide 16: Contribution of Store Brand to a Retailer's Total Category
Contribution of Store Brand to a Retailer’s Total Category . . . 80 70% 70 60% 60 50 47% Sales ($) 40% 40 Vol (Units) 33% 30% Profit ($) 30 27% 20% 20% 20 10 0 Analgesics Cough/Cold Vitamins
Slide 17: Manufacturing and Distribution Locations
Manufacturing and Distribution Locations United Kingdom Michigan China New Jersey South Carolina California India Mexico
Slide 18: Financial Overview
—— ZEPEHAIGD Financial Overview SS
Slide 19: Perrigo Sales and Earnings
Perrigo Sales and Earnings (Adjusted for stock option compensation expense, tax benefit, litigation settlement) Sales Net Income (millions) (millions) 1,000 $919 100 $835 $834 $898 800 $736 $776 80 $71 $69 600 $52 60 $44 400 $38 40 200 $16 20 0 2000 2001 2002 2003 2004 LTM Dec 0 2004 CAGR Sales Net
Slide 20: Perrigo Gross Profit and Operating Income Percent of Sales
Perrigo Gross Profit and Operating Income Percent of Sales (Adjusted for stock option compensation expense) GP OI 20 40 30 27.6% 29.8% 15 25.0% 26.1% 11.8% 20.4% 9.8% 20 8.3% 10 7.4% 10 4.2% 5 0 2000 2001 2002 2003 2004 0 GP OI Note: Reconciliation to GAAP results provided at www.perrigo.com/investo
Slide 21: Perrigo EBITDA And Cash/Securities On Hand
Perrigo EBITDA And Cash/Securities On Hand EBITDA Cash (millions) (Adjusted for stock option compensation expense) (millions) 150 200 $133 $179 125 $172 $123 175 $110 150 $100 100 125 75 $67 $94 $77 100 $60 50 75 50 25 $7 $11 25 0 0 2000 2001 2002 2003 2004 LTM Dec 2004 Free Cash $103 $42 $77 $48 $9
Slide 22: Working Capital Trends w/o Cash And Investment Securities
Working Capital Trends w/o Cash And Investment Securities $ Millions 350 % 50 300 298 287 250 250 248 40 240 225 200 182 176 30 166 165 148 147 150 132 130 134 130 127 119 134 132 119 115 110 109 114 20 105 100 10 50 0 0 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02
Slide 23: Perrigo Return On Average Assets, Average Equity
Perrigo Return On Average Assets, Average Equity (Percent) (Adjusted for stock option compensation expense) 20 16.4% 16 12.5% 12 11.1% 11.5% 8.7% 8 6.6% 7.6% 4.9% 4.5% 4 3.1% 0 2000 2001 2002 2003 2004 ROA ROE
Slide 24: US National Report
(Week 21 - 2/4/2005) US National Report Population Affected Cumulative Season-to-Date % Change -18.9% Cumulative Q1 % Change (vs. last season) 23.7% Cumulative Q4 % Change (vs. last season) -31.4% 60,000,000 55,000,000 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,0
Slide 25: Perrigo Six-Month Sales And Earnings
Perrigo Six-Month Sales And Earnings Sales Earnings (millions) (millions) 600 100 500 $486 $445 $459 80 400 60 300 $42 $39 $34 40 200 20 100 0 0 2003 2004 2005 Sales Earnings
Slide 26: Business Strategy
—— ZEPEHAIGD Business Strategy SS
Slide 27: Strategic Focus
Strategic Focus Financial Operations Growth FY2000/01 FY2001/04 FY2004/08 Done Quality 2001/03 Productivity 2002/04 EXECUTING EXECUTING our ourfour fourkey keyStrategies: Strategies: Quality Quality--Customer CustomerService Service--Low LowCost CostProducer Producer--Growth Growth
Slide 28: Growth Strategy
Growth Strategy Long-Term Objective ? 10% Sales Growth Existing Business ? 5% Acquisitions ? 5% • Market growth • Complementary businesses • New products • OTC niche products • Share gains • Nutritional companies • Geographic expansion • Generic Rx entry
Slide 29: Perrigo's Current OTC ANDA Portfolio and Pipeline
Perrigo’s Current OTC ANDA Portfolio and Pipeline ANDA’s held by Perrigo 33 Perrigo ANDA’s Pending @ FDA 11 ANDAs marketed with Partner 5 ANDAs Pending with Partner 3 Total 52
Slide 30: Perrigo Leadership in Rx to OTCs
Perrigo Leadership in Rx to OTCs • First to market with over 80% of ANDA products • 37% of Perrigo sales in OTC market are from ANDA products • Perrigo is the leading store brand supplier of ANDA products; offer over 20 store brand ANDA products • During 2000 – 2004, 23 ANDA products and over $100 m
Slide 31: Growth Strategy
Growth Strategy Generic Prescription Drugs • Extension of existing OTC pharmaceutical business • Investment stage • Significant growth opportunity • Leverages Perrigo’s strengths as a leading high volume drug company with ANDA capabilities
Slide 32: Generic Prescription Drugs - Rx
Generic Prescription Drugs - Rx Since August 2003 • Three generic drug filings in fiscal 2004 • Seven filings in first half fiscal 2005 • Three more by June 30 2005 • Have received first two approvals – Ibuprofen oral suspension (Motrin®) – Citalopram tablets (Celexa®)
Slide 33: Why Invest In Perrigo
Why Invest In Perrigo: • Outstanding retailer relationships • Financial strength grounded in stable and growing cash flow • Continuous productivity improvement • Understand new product development and driving Store Brand market growth • Uniquely positioned for growth in changing generic Rx marketpla
Slide 34: A Unique and Powerful Combination
A Unique and Powerful Combination Customer Generic Rx Relationships Solid Dose / Liquid Capabilities API Perrigo + Agis OTC OTC & Nutritionals Differentiated Rx to OTC Pharma Technologies
Slide 35: A Unique and Powerful Combination of Two Leading Healthcare Companies
A Unique and Powerful Combination of Two Leading Healthcare Companies • Leading global healthcare company with strong presence in: – Generics – API – OTC pharmaceuticals & nutritionals • Strong R&D capabilities • Excellent customer relationships • Global management team • Financial strength