Perrigo Company plc · NYSE:PRGO
Perrigo — Q4 FY2012 Earnings Presentation
24 slides from Perrigo's earnings presentation, Aug 16, 2012
Slide 1: Perrigo Fiscal 2012 Fourth Quarter Conference Call
Quality, Affordable Healthcare Products Since 1887 Perrigo Fiscal 2012 Fourth Quarter Conference Call August 16, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 future
Slide 3: Perrigo Consolidated – FY 2012 Adjusted Financials
Perrigo Consolidated – FY 2012 Adjusted Financials* From Continuing Operations % Change Change as FY 2012 FY 2011 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 3,173 $ 2,755 15% Adjusted Cost of Sales 1,995 1,779 12% Adjusted Gross Profit 1,178 976 21% 170 bps Adjusted Opera
Slide 4: Perrigo Consolidated – Q4 FY 2012 GAAP Financials
Perrigo Consolidated – Q4 FY 2012 GAAP Financials From Continuing Operations % Change Q4 2012 Q4 2011 ($ in millions, except per share amounts) Y/Y Net Sales $ 832 $ 705 18% Cost of Sales 538 462 16% Gross Profit 294 242 21% Distribution 10 9 7% R&D 27 23 16% SG&A 95 86 11% Restructuring 2 1 62% Ope
Slide 5: Perrigo Consolidated – Q4 FY 2012 Adjusted Financials
Perrigo Consolidated – Q4 FY 2012 Adjusted Financials* From Continuing Operations % Change Change as a Q4 2012 Q4 2011 ($ in millions, except per share amounts) Y/Y % to sales Net Sales $ 832 $ 705 18% Adjusted Cost of Sales 524 454 16% Adjusted Gross Profit 307 251 23% 130 bps Distribution 10 9 7%
Slide 6: Net Sales Performance by Segment – Adjusted Financials
Net Sales Performance by Segment – Adjusted Financials* From Continuing Operations ($ in millions) Q4 2012 Q4 2011 % Change Y/Y Consolidated Perrigo $ 832 $ 705 18% Adjusted Operating Income 182 138 32% Consumer Healthcare 484 434 12% Adjusted Operating Income 82 77 6% Nutritionals 135 123 10% Adjus
Slide 7: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 7.7% Total OTC -2.7% 0.6% 6.8% Analgesics -11.1% -4.5% 7.9% Cough, Cold, Allergy, Sinus -1.0% 1.6% 11.3% Gastrointestinal -4.3% 0.8% 4.1% Smoking Cessation 2.9% 3.6% -5.1% Vitamins (*VMS) 9.2% 4.1% -5.4% Infant Formula (includes ABT
Slide 8: Consumer Healthcare Segment – Adjusted Financials
Consumer Healthcare Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q4 2012 Q4 2011 ($ in millions) Y/Y % to sales Net Sales $ 484 $ 434 12% Adjusted Cost of Sales 333 299 11% Adjusted Gross Profit 151 134 12% 20 bps Adjusted Operating Expenses 69 57 22% Adjusted Opera
Slide 9: Nutritionals Segment – Adjusted Financials
Nutritionals Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q4 2012 Q4 2011 ($ in millions) Y/Y % to sales Net Sales $ 135 $ 123 10% Adjusted Cost of Sales 94 83 14% Adjusted Gross Profit 41 40 2% (230) bps Adjusted Operating Expenses 19 23 (15%) Adjusted Operating In
Slide 10: Rx Segment – Adjusted Financials
Rx Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q4 2012 Q4 2011 ($ in millions) Y/Y % to sales Net Sales $ 157 $ 92 70% Adjusted Cost of Sales 75 39 90% Adjusted Gross Profit 82 53 55% (510) bps Adjusted Operating Expenses 19 12 57% Adjusted Operating Income $ 64 $
Slide 11: API Segment – Adjusted Financials
API Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q4 2012 Q4 2011 ($ in millions) Y/Y % to sales Net Sales $ 38 $ 37 4% Adjusted Cost of Sales 12 21 (43%) Adjusted Gross Profit 26 16 66% 2,560 bps Operating Expenses 8 9 (9%) Adjusted Operating Income $ 18 $ 7 159% 2,
Slide 12: Perrigo FY13 Segment Guidance
Perrigo FY13 Segment Guidance* From Continuing Operations FY 2013 Guidance 8/16/12 Conference Call CONSUMER HEALTHCARE Revenue Growth YoY 10% - 14% Adjusted Gross Margin % 30% - 35% Adjusted Operating Margin % 16% - 21% NUTRITIONALS Revenue Growth YoY 8% - 12% Adjusted Gross Margin % 27% - 32% Adjus
Slide 13: Perrigo FY13 Consolidated & EPS Guidance
Perrigo FY13 Consolidated & EPS Guidance* From Continuing Operations FY 2013 Guidance 8/16/12 Conference Call CONSOLIDATED PERRIGO Revenue Growth YoY 10% - 14% Adjusted Gross Margin % 36% - 40% R&D as % to Net Sales ~3.5% Adjusted DSG&A as % to Net Sales ~12.5% Adjusted Operating Margin % 20% - 24%
Slide 14: Growth FY13 and Beyond
Growth FY13 and Beyond Publicly disclosed products Across all segments, we expect to launch >60 new products, resulting in >$190M of revenue in FY 2013 Potential Rx to OTC switches • $10B in branded sales potential over the next 5 years Consumer Healthcare FY13 Pipeline Highlights Branded Sales ($M)
Slide 15: Growth FY13 and Beyond – Rx
Growth FY13 and Beyond – Rx Publicly disclosed products 37 ANDAs Pending FDA approval • ANDAs represent $4B in branded sales • 9 confirmed first-to-file ANDAs 5 Paragraph IV litigations • Repaglinide Tablets (Prandin®) • Acetaminophen IV (Ofirmev®) • Olopatadine (Patanase®) • Azelastine (Astepro®) •
Slide 16: Questions
Quality, Affordable Healthcare Products Since 1887 Questions Appendix 16
Slide 17: Table I
PERRIGO COMPANY Table I RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited) Three Months Ended Consolidated June 30, 2012 June 25, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 831,767 $ - $ 831
Slide 18: Table I (Continued)
PERRIGO COMPANY Table I RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (Continued) (unaudited) Fiscal Year Ended Consolidated June 30, 2012 June 25, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 3,173,
Slide 19: Table II Reportable Segments
PERRIGO COMPANY Table II REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Consumer Healthcare June 30, 2012 June 25, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 483,982 $ - $ 4
Slide 20: Table II Reportable Segments (Continued)
PERRIGO COMPANY Table II REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES (Continued) (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals June 30, 2012 June 25, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 156,
Slide 21: Table III FY 2013 Guidance and FY 2012 EPS
Table III Table III PERRIGO COMPANY FY 2013 GUIDANCE AND FY 2012 EPS RECONCILIATION OF NON-GAAP MEASURES (unaudited) Fiscal 2013 Guidance FY13 reported diluted EPS $4.77 - $4.97 Deal-related amortization (1) 0.53 FY13 adjusted diluted EPS $5.30 - $5.50 Fiscal 2012* FY12 reported diluted EPS from con
Slide 22: Table IV FY 2013 Guidance
Table IV Table IV PERRIGO COMPANY FY 2013 GUIDANCE RECONCILIATION OF NON-GAAP MEASURES (unaudited) Fiscal 2013 Guidance Consolidated Reported consolidated gross margin range 34.5% - 38.5% Deal-related amortization (1) 1.5% Adjusted consolidated gross margin range 36% - 40% Reported distribution, sal
Slide 23: Table IV FY 2013 Guidance (Continued)
Table IV Table IV PERRIGO COMPANY FY 2013 GUIDANCE (Continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Fiscal 2013 Guidance Nutritionals Reported gross margin range 24.8% - 29.8% Deal-related amortization (1) 2.2% Adjusted gross margin range 27% - 32% Reported operating margin range 6.7% - 1
Slide 24: Table V
PERRIGO COMPANY Table V RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Consolidated Q4 FY10 6/30/2012 Net sales $ 619,760 Total debt $ 1,369,325 Reported gross profit $ 198,001 Less: Cash and cash equivalents (602,489) Deal-related amortization (1) 5,846 Total net debt 766,836 Invent