Perrigo Company plc · NYSE:PRGO
Perrigo — Investor Day (September 2011)
167 slides from Perrigo's investor day presentation, Sep 27, 2011
Slide 1: 2011 Investor Day Corporate Overview
2011 Investor Day September 27, 2011 Corporate Overview Quality, Affordable Healthcare Products
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: Introduction – Joseph C. Papa, Chairman & CEO
Introduction Joseph C. Papa – Chairman & CEO 3 Quality, Affordable Healthcare Products
Slide 4: Today's Agenda
Introduction Five Strategic Pillars Growth & Achievements Since 2009 Continued Global Growth and Expansion Growth + Differentiation Fiscal 2012 Outlook Today‟s Agenda 4 Quality, Affordable Healthcare Products
Slide 5: A 125 Year Journey of Growth, Execution & Continuous Improvement
A 125 Year Journey of Growth, Execution & Continuous Improvement 5 Quality, Affordable Healthcare Products
Slide 6: Perrigo's Five Strategic Pillars
Perrigo‟s Five Strategic Pillars Strategy Code of Conduct / Core Values Mission: Quality Affordable Healthcare 6 Quality, Affordable Healthcare Products
Slide 7: Growth & Achievements Since 2009
Growth & Achievements Since 2009 Focused on Operational Excellence / Five Pillars Expanded adj. Grew revenue op. margin 37.4% to over 500bp to >$2.75B 19.6% Relentless New product focus on launch execution, success quality and R&D 7 Quality, Affordable Healthcare Products
Slide 8: Growth & Achievements Since 2009
Growth & Achievements Since 2009 Strengthened leadership position in Consumer Healthcare business • Best-in-class new product development / launches • Numerous paragraph IV challenges • 13 ANDAs currently filed and pending approval • Launched ~4 products per month in FY11 • Global expansion – Acquir
Slide 9: Growth & Achievements Since 2009
Growth & Achievements Since 2009 Expanded U.S. Rx segment • Acquired Paddock Labs • Acquired products with high barriers to entry • Grew ORx opportunity to >$40M in sales in FY11 Margin improvement in API segment • Adjusted gross margin increase of ~680BP from 38.7% in FY09 to 45.5% in FY11 • Adjust
Slide 10: Key Financial Performance
Key Financial Performance Revenue, Cash Flow & Adjusted Operating 4 Year in millions Margin Revenue $2,755 $3,000 $500 CAGR of 19% 19.6% $2,268 $2,500 18.0% $400 $2,006 4 Year $1,727 14.6% $2,000 13.8% $300 Adjusted $1,500 $1,368 9.0% Operating $200 Income CAGR $1,000 of 45% $100 $500 4 Year $0 $0 F
Slide 11: OTC Potential Future Product Pipeline
OTC Potential Future Product Pipeline 11 Quality, Affordable Healthcare Products
Slide 12: Long-Term Growth Opportunities
Long-Term Growth Opportunities Additional Adjacent Categories ~$7.6B • Opthalmic $2.5B • Wound care $2.1B • Additional diabetes categories $2.0B • Adult nutrition $0.7B • Pet care $0.3B Geographic Expansion 12 Quality, Affordable Healthcare Products
Slide 13: Fiscal 2012 Outlook
Fiscal 2012 Outlook Consumer Healthcare • Fexofenadine – Off to a strong launch • Lansoprazole, Guaifenesin, Minoxidil Foam, Fexofenadine D12 – On plan to launch • SB market share gains Nutritionals • Increase distribution in China • Price optimization & SB market share gains • All Whey Partial Hydr
Slide 14: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Solidify Store Brand market leadership/market share gains New product launches – our best pipeline ever Expand into additional adjacent categories Expand geographically into China, Europe and Latin America Build Rx critical mass / Integrate Paddo
Slide 15: Agenda
Agenda CHC Business Review Jeff Needham, Executive VP, GM Consumer Healthcare Nutritional Business Review Scott Jamison, Executive VP, GM Nutritionals Rx Business Review Sharon Kochan, Executive VP, GM Rx Pharmaceuticals API Business Review Rafi Lebel, Executive VP and President, Perrigo Israel Brea
Slide 16: Consumer Healthcare Segment
Consumer Healthcare Segment Jeff Needham – EVP & GM Consumer Healthcare 16 Quality, Affordable Healthcare Products
Slide 17: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Continue growth in consumer acceptance of store brands‟ value and quality = growing market share Perrigo continues to win share of store brands with the “Perrigo Advantage” Strong new product pipeline will continue to fuel growth Additional oppor
Slide 18: Perrigo's $1.7B Global Consumer Healthcare Business Competes in 6 Markets
Perrigo‟s $1.7B Global Consumer Healthcare Business Competes in 6 Markets Australia, $29 Mexico, $63 Canada, $11 US Contract, $119 UK, $126 US Store Brand OTC, $1,348 18 Quality, Affordable Healthcare Products
Slide 19: Consumer Healthcare Segment: Leveraging the Perrigo Advantage
Consumer Healthcare Segment* Leveraging the Perrigo Advantage Annual Revenue & Adj. Operating Margin in millions $2,000 25% 19.7% 18.0% $1,600 17.8% 20% 16.0% $1,200 15% 7.6% $800 $1,574 $1,685 10% $1,413 $1,169 $400 $880 5% $0 0% FY2007 FY2008 FY2009 FY2010 FY2011 Annual Revenue Adjusted Operating
Slide 20: United States
United States 20 Quality, Affordable Healthcare Products
Slide 21: Perrigo's U.S. Store Brand OTC Business
Perrigo‟s U.S. Store Brand (SB) OTC Business Compete across 15 OTC product categories totaling $31.0B in annual retail sales We supply 360 product formulas and 7,200 SKUs to over 40 U.S. SB customers 21 Quality, Affordable Healthcare Products
Slide 22: SB OTCs Continues its Growth in the U.S. Marketplace
SB OTCs Continues its Growth in the U.S. Marketplace Dollar Sales Growth National Brand Store Brand Category Growth OTC 1.7 -2.5 11.8 Analgesics -0.4 -8.4 15.7 CCAS 2.2 -2.2 14.8 GI 2.1 -2.1 12.6 NRT 1.5 -3.4 6.2 22 Source: IRI FDMx 52 Weeks Ending August 28, 2011 Quality, Affordable Healthcare Prod
Slide 23: OTC SB Share has Grown to ~32%
OTC SB Share has Grown to ~32% Store Brand OTC Dollar Share +600bps 31.6% 25.6% September 2009 September 2011 23 Source: IRI FDMx, Store Brand Dollar Share Quality, Affordable Healthcare Products
Slide 24: SB Market Share in First Year of Launch
SB Market Share in First Year of Launch Store Brand Volume Share – At 12 Month Mark 59.8% 49.4% 47.8% 42.9% 39.1% 35.6% 30.2% 24 Source: IRI FDMx, Store Brand Volume Share, 12th Month After Launch Quality, Affordable Healthcare Products
Slide 25: SBs have Significant Share in Established OTC Products
SB‟s have Significant Share in Established OTC Products Store Brand Volume Share – Established OTC Products 64% 63% 63% 54% 53% 25 Source: IRI FDMx, Store Brand Volume Share, 52 Weeks Ending August 28, 2011 Quality, Affordable Healthcare Products
Slide 26: SB APAP Share has Doubled since McNeil Recalls
SB APAP Share has Doubled since McNeil Recalls Perrigo “Hold The Gains” Objectives: • Plan-o-gram/Distribution Recommendations • Consumer/Physician Education • Aggressive Promotion Pediatric and Adult 90% Acetaminophen 80% 70% 60% Volume Share 50% 40% 30% 20% 10% 0% Oct , 2010 Aug, 2011 26 Source: I
Slide 27: A Case Study: SB Marketing in the U.S.
The Perrigo Advantage…. SB Marketing in the U.S. A Case Study… 27 Quality, Affordable Healthcare Products
Slide 28: Objectives for Success
Objectives for Success: Be first SB to market Obtain 40% SB share within one year of launch Promote at launch and monthly throughout first year Product & price offering is the most attractive option in the marketplace • Before Miralax® was made available OTC in Fall 2006, it was the #1 Prescribed Rx
Slide 29: Six Elements of the Perrigo Advantage Programs
Six Elements of the Perrigo Advantage Programs BIC Rx-OTC Switch Launch Ongoing Programs New Promo‟s & Programs Social Media CE Programs & OTC University Customer Research & Data Support Marketing PR 29 Quality, Affordable Healthcare Products
Slide 30: Best In Class Programs
Best In Class Programs 30 Quality, Affordable Healthcare Products
Slide 31: CE Programs & OTC University
CE Programs & OTC University CE Programs • Continuing Education credits for Pharmacist • 3 Modules: Value of SB, Gluten Free and Vitamin Finder • Customized programs can be developed OTC University • Mission: Provide a greater knowledge base of the OTC manufacturing environment by creating an unders
Slide 32: On-Going New Programs & Promotional Support
On-Going New Programs & Promotional Support • Exclusive partnership with Kraft® • Exclusive Perrigo program, Gluten Free • Crystal Light® pouches for use with option on OTC products ClearLax™ 32 Quality, Affordable Healthcare Products
Slide 33: Summary of Success – Results
Summary of Success – Results First to market with launch on day one of “Generic” OTC market formation Full retail launch with promotions Achieved nearly 100% share of SB business with 4 competitive approvals SB share grew to 40% in first 12 months SB business grew to an approximate $80M retail brand
Slide 34: Highlights of ANDA Pipeline Continues to be Rich
Highlights of ANDA Pipeline Continues to be Rich Over $ 17B Pipeline As valued by branded Rx or national brand OTC sales National Brand Brand Brand National Brand National Brand Brand Sales Sales Sales Mucinex Max Allegra 60mg $ 100 DM $ 157 Advil PE $ 49 Zantac 150 - $ 36 Mucinex Max $ 88 Claritin
Slide 35: OTC Potential Future Product Pipeline
OTC Potential Future Product Pipeline Potential Switch Products/Categories Brand Sales ($B) Statins $ 17.0 Singulair ® 4.8 Prostate 3.6 Cox-2 Inhibitors 3.5 Erectile Dysfunction 2.9 Nasal Allergy 2.5 Overactive Bladder 2.2 Omega-3 Fish Oils 1.6 Ophthalmic-Allergy/Dry Eye 1.3 Acne 0.6 Migraine 0.6 To
Slide 36: Opportunities to Expand Through Adjacent Categories
Opportunities to Expand our Business Through Adjacent Categories Baby Accessories, $1.9B Foot Care-Devices, $684M Skin Care, $4.3B OTC Pet Needs, $300M Wound Treatments, $2.1B Cough Drops, $770M Adult Incontinence, $1.4B Opthalmic/Eye Care, $1B Feminine Hygiene, Other, $232M Categories Where Perrigo
Slide 37: Diabetes Care Update
Diabetes Care Update Announced our Available with a AgaMatrix partnership in prescription for February 2011 consumers with 90% healthcare Reimbursed coverage Market Continue to broaden our distribution focusing on 10% Available for the the reimbursed market Cash cash paying with retailers nationwide
Slide 38: Canada
Canada 38 Quality, Affordable Healthcare Products
Slide 39: Canada CHC Business
Canada CHC Business Our $11M Canadian OTC Drug business is managed and exported from Perrigo‟s U.S. facilities • Canada sales are OTC consumer sales covering all key categories • Canada product portfolio contains over 60 licenses • 3 new ANDS products in development for FY12/13 Category Sales FY11 E
Slide 40: Canada CHC – Growth Strategies & Opportunities
Canada CHC – Growth Strategies & Opportunities First to market on key ANDS – comingle with U.S. investments where possible Grow key OTC categories with innovation and new products Partner with retailers to drive store brand share Target Stores launching – CY2013 Develop contract sales relationships
Slide 41: Mexico
Mexico 41 Quality, Affordable Healthcare Products
Slide 42: Perrigo Mexico
Perrigo Mexico A leader in SB and Rx drugs to retailers, distributors, government and branded customers Ramos Arizpe, Coahuila Government, Guadalajara 17% Mexico City 3rd Party - Sales/Marketing Mfg, 15% Export, Store 2% Brand, Distributors, 55% 8% Wholesalers, 4% 42 Quality, Affordable Healthcare P
Slide 43: Perrigo Mexico
Perrigo Mexico Our $63M Mexico business is a combination of OTC and SB Rx products/categories Analgesics Anti-inflammatory Antacids Anti-infectives Anti-biotics Beta- Antittusives Cardiovascular Contraceptives Descongestants lactamase inhibtors Dermatological Urinary Tract Gastrointestinal Anti-ulce
Slide 44: Perrigo Mexico
Perrigo Mexico We have a broad customer base across our business segments Retailers Wholesalers Distributors Government 44 Quality, Affordable Healthcare Products
Slide 45: Perrigo Mexico Growth Strategies
Perrigo Mexico Growth Strategies include: Growth through new products • Internal development • External partners Grow our contract manufacturing base Increase production support for Perrigo U.S. and other CHC markets Expand our business categories „foot print‟ • Organically and through acquisition G
Slide 46: UK
UK 46 Quality, Affordable Healthcare Products
Slide 47: Perrigo UK
Perrigo UK The UK leader in SB OTC Medicines Total revenue = $126M SB OTC = 78% Contract Manufacturing = 22% 47 Quality, Affordable Healthcare Products
Slide 48: Perrigo UK
Perrigo UK In-country manufacturing in Devon – SW England Supply products across OTC product categories Our UK customer Commercial Headquarters base includes all in South Yorkshire major UK retailers and a number of branded OTC marketers across Europe 48 Quality, Affordable Healthcare Products
Slide 49: Perrigo UK Growth Strategies
Perrigo UK Growth Strategies include: Geographic expansion to the broader European marketplace • Registration of Perrigo products in select markets • Ongoing investigation of prospective acquisitions • Out-licensing to national brand partners • Potential for strategic alliance with international par
Slide 50: Australia
Australia 50 Quality, Affordable Healthcare Products
Slide 51: Perrigo Australia
Perrigo Australia Perrigo Australia is headquartered in Perth, Western Australia with a sales/marketing office on the East coast. 51 Quality, Affordable Healthcare Products
Slide 52: Perrigo Australia
Perrigo Australia Perrigo Australia has a heritage as a leading supplier of Rx and specialty products to the Australia hospital channel Perrigo is at the forefront of developing a store brand/value brand consumer healthcare business in Australia and New Zealand Segment Sales ($MM) Domestic AUS Hospi
Slide 53: Australia – Key Segment Summary
Australia – Key Segment Summary Domestic AUS Hospital • Sales predominantly made into the Hospital channel (public and private) • Antiseptics/Disinfectants • Specialty Hospital Products • Rx Products Domestic AUS contract manufacturing of branded products for domestic AUS customers • Hormone Creams,
Slide 54: Broadening Australian Customer Base
Broadening Australian Customer Base 54 Quality, Affordable Healthcare Products
Slide 55: Perrigo Australia – Growth Strategy/Opportunities
Perrigo Australia – Growth Strategy/Opportunities Expand and grow our domestic AUS Hospital business • Expand product offering to include more generic Rx products from Perrigo’s global product offerings • Expand product offering in area of Invitro Fertilization • Continue to expand disinfectant/anti
Slide 56: Key Strategic Opportunity – Expansion of Global Footprint
Key Strategic Opportunity – Expansion of Global Footprint Entered Australia in March 2010 Have identified highest priority markets/regions • Continental European markets • Brazil/South America • Central/Latin America markets • China • Japan Developing both „organic‟ and „inorganic‟ market developmen
Slide 57: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Continue growth in consumer acceptance of store brands‟ value and quality = growing market share Perrigo continues to win share of store brands with the “Perrigo Advantage” Strong new product pipeline will continue to fuel growth Additional oppor
Slide 58: Nutritionals Segment
Nutritionals Segment Scott Jamison – EVP & GM Nutritionals 58 Quality, Affordable Healthcare Products
Slide 59: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Continue growth in consumer acceptance of store brands‟ value and quality = growing market share Strong new product pipeline will continue to fuel growth Additional opportunities to expand our presence in the store in continuing growth through ad
Slide 60: Nutritionals – Includes VMS and Infant Formula
Nutritionals – Includes VMS* and Infant Formula Annual Revenue in millions $600 $500 $400 $300 $503 $200 $226 $259 $100 $171 $158 $0 FY2007 FY2008 FY2009 FY2010 FY2011 New products Increased SB penetration 2011 Growth Drivers International growth in infant Improved operating performance nutrition in
Slide 61: A Company Built on a Compelling Value Proposition
A Company Built on a Compelling Value Proposition Perrigo Nutrition provides high-quality, national brand- equivalent products at competitive prices • Approximately 2x higher margins at retail Average Retail Price Retailer Gross Margin $21 to $24 $2 to $3 Consumers save $8 to $10 2x to 3x Higher Gro
Slide 62: The History of Store Brand Formulas
The History of Store Brand Formulas 1997: 2005: Wyeth Signs Exclusive PBM Acquires 2010: Agreement with PBM 2008: Vermont Facility PBM Acquired by for Launch of Store Launch Low- from Wyeth Perrigo 2010: Brand Formula Lactose Formula 2006: Launch Value Launch Organic 2009: Size Formulas & Partially
Slide 63: Track Record of Success that Enhances the Perrigo Growth Trajectory
Track Record of Success that Enhances the Perrigo Growth Trajectory Diversification Fuels Our Growth • 17 • 11 Countries Global Developing international products brings a global Expansion perspective to our R&D Platforms • 47 Growing with We develop new product platforms that continue the Our Consum
Slide 64: Core Product Depth – Develop Wide Variety of Quality Formulas
Core Product Depth – Develop Wide Variety of Quality Formulas R&D: Comprehensive Product Development Capability • Track record of leading the market and “fast following” • 1/10th Scale Pilot Plant enables us to move quickly from concept to commercialization Manufacturing: 1 of Only 4 FDA Approved Ma
Slide 65: Customer Customization
Customer Customization Across North America, Perrigo Nutrition has distributed private label infant formula products to more than 30,000 retail locations in the US, Canada and Mexico United States Canada Mexico 65 Quality, Affordable Healthcare Products
Slide 66: U.S. Infant Formula Category Overview
U.S. INFANT FORMULA CATEGORY OVERVIEW 66 Quality, Affordable Healthcare Products
Slide 67: Competing and Winning in a Highly Competitive Category
Perrigo Nutrition is Competing and Winning in a Highly Competitive Category FDMx Infant Formula Category Dollar % Chg vs. Year Ago 11.4% 7.6% -4% -9% 2010 2011 Store Brands Advertised Brands 67 Source: IRI FDMx – 2011 L52wks Ending 7/3/11 and Comp Periods for Previous Years Quality, Affordable Healt
Slide 68: Three Ways to Look at U.S. Market Share
Three Ways to Look at U.S. Market Share Infant Formula Category Brand Share FDMx Latest 52wks 4.3% Tremendous 14.2% potential exists for Store SB formulas to Brands grow in the U.S. market Gerber 46.9% Similac Removing WIC influence, SB Enfamil 34.5% market is ~8.6% $ Cat $ Share All Formulas 68 Sou
Slide 69: Investing in Demand Generation
Investing in Demand Generation The Infant Formula Category is Fundamentally Unique • Every Year: 4M Babies in the U.S. • Every Day: 11,000 New Moms • Consumer Usage: <12 Months Robust Marketing Programs to Educate New Moms • At Shelf • In Print • Online • Through HCP’s 69 Quality, Affordable Healthc
Slide 70: Marketing Programs Will Drive Growth in the U.S.
Marketing Programs Will Drive Growth in the U.S. Direct to Consumer • Breaking New Parent’s ChoiceTM Print Campaign this Fall • Updating Web Sites and Integrating Electronic Couponing Health Care Professionals • Expanded Presence at HCP Trade Shows including American Academy of Pediatrics (AAP), Nat
Slide 71: Product Innovation to Fuel Continued Growth
PRODUCT INNOVATION TO FUEL CONTINUED GROWTH 71 Quality, Affordable Healthcare Products
Slide 72: Growing in the Specialty Infant Formula Market
Growing in the Specialty Infant Formula Market Sales of Routine Milk-Based Formulas & Soy-Based Formulas +225.2% Lact Free $234 are Declining, But Specialty Formulas are Up Milk-based protein, but with the carbohydrate lactose removed for babies with lactose sensitivity Part Hydr $177 +10.8% U.S. FD
Slide 73: Robust New Product Pipeline – North American & International Markets
Robust New Product Pipeline – North American & International Markets Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Idea Market Analysis Development Filing Commercialization 12 10 14 9 7 # of Projects in Each Stage of Development 73 Note: Each “Project” represents 1 to 4 individual projects e.g., different
Slide 74: Key Recent New Product Launches
Key Recent New Product Launches (Post Acquisition) Newborn Powder Walmart Canada Lactose Free • $25 to $30MM Segment (Non-WIC) • Compare to Similac Sensitivity® • Compare to Enfamil Premium® Newborn • Parent’s ChoiceTM Label • Targets Moms with Babies 0 to 3 Months • Helps Meet the requirements of V
Slide 75: Infant Formula Product Pipeline
Infant Formula Product Pipeline Hypoallergenic China • $163M Extensively Hydrolyzed Segment (including WIC) • 4th Age • Compare to Nutramigen® & Alimentum • Organic Stage 1, 2, 3 • Average Retail Price of $25 to $30 per LB Canada Comfort Care • Probiotic (Compare to Nestle®) • $55M Segment (Non-WIC)
Slide 76: Adjacent Retail Categories
Adjacent Retail Categories Ready to Drink Nutritional Market $1.6B, +4% vs. Year Ago National Brand Examples $48 $85 Adult Nutrition Ensure® $154 Slim Fast®, Special K®, Weight Loss Atkins® $745 Kids Nutrition PediaSure® $240 Sports Nutrition Muscle Milk®, EAS® Glucose Products Glucerna®, Boost® $32
Slide 77: Growing Our Global Footprint
GROWING OUR GLOBAL FOOTPRINT 77 Quality, Affordable Healthcare Products
Slide 78: Sales in the Global Infant & Toddler Nutrition Market
Sales in the Global Infant & Toddler Nutrition Market $7,563 2.7% $1,911 8.2% $6,971 1.2% $9,820 12.0% $3,351 4.5% 8.5% $1,310 5.8% $264 Key Sales (US $M) CAGR 2008-2013 Sales dominated by Asia-Pacific (31%), Western Europe (24%) and North America (22%). Growth Will Be Fastest in Asia- Pacific, East
Slide 79: Competitive Landscape: Manufacturer Market Share
Competitive Landscape Manufacturer Market Share – World & By Region #1 6% Nestle 17% 19% 25% 22% 25% #2 28% Danone 21% 12% #3 Mead Johnson 14% 63% 23% 9% 10% #4 Abbot Labs 31% 5% 10% 13% 37% #5 5% 7% 41% Heinz 8% 8% 3% #6 Pfizer 13% 4% 4% 3% 9% #7 Hipp 8% 50% 24% 4% 5% 44% 43% 24% #8 Hero 8% 28% 18%
Slide 80: PBM In China
PBM In China History Strategy In Market Since 2006 Private Label • Hypermarkets • Sales, Marketing and Distribution Office • Supermarkets • 100+ Employees • Mom & Baby Stores • Only U.S. Manufactured Product in China Contract Manufacturing – Partner Private Label Supplier to Walmart brands • Strong
Slide 81: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Continue growth in consumer acceptance of store brands‟ value and quality = growing market share Strong new product pipeline will continue to fuel growth Additional opportunities to expand our presence in the store in continuing growth through ad
Slide 82: Perrigo Vitamins
PERRIGO VITAMINS 82 Quality, Affordable Healthcare Products
Slide 83: The U.S. Vitamin, Mineral, & Supplement Category
The U.S. Vitamin, Mineral, & Supplement Category The total supplement category, all channels, is $28.2B Food, Drug, Mass and Club is 29% or $8.2B Retail- Mail/DRTV, Within FDMC, Store Brand FDMC Radio has a 27% dollar share 29% 5% Network Marketing 17% Total category sales all channels is up 4% in
Slide 84: The Vitamin Consumer
The Vitamin Consumer The age wave in the U.S. will propel future growth Nutrition‟s Core Demographic is Only Getting Larger Population Growth over the Next Decade +22% Women make up 79% of purchases 64% of consumers are age 45+ +3% Income levels skew towards the higher end Ages 18 - 49 Ages 50 + Hig
Slide 85: Higher Profit New VMS Products are a Focus in FY12
Higher Profit New VMS Products are a focus in FY12 Our new 4X Probiotic is forecast to sell $10M in FY12 We have achieved broad distribution in food, drug, mass and club It is outselling Align in both units and dollars at leading retailers Compare to Procter & Gamble Align 85 Quality, Affordable Hea
Slide 86: Rx Pharmaceuticals Segment
Rx Pharmaceuticals Segment Sharon Kochan – EVP & GM Rx Pharmaceuticals 86 Quality, Affordable Healthcare Products
Slide 87: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Robust historical results – strong demand for our products Strong volume dynamics in the general generics market – extended topical market provides for various opportunities Long term focus on extended topicals – leadership role Largest, stronges
Slide 88: U.S. Extended Topicals Generic Market, Our Share
U.S. Extended Topicals Generic Market, Our Share US “Extended” Topical Generic Market, US “Extended” Topical Generic Market, December, 2008 May, 2011 $350 $350 $303 $300 $287 $300 $250 $250 $223 $206 $188 $185 $200 $187$184 $200 $152 $150 $126 $150 $95 $97 $89 $88 $86 $100 $70 $100 $73 $68 $66 $56 $
Slide 89: Launch Track Record
Launch Track Record 3 product launches in FY09 • Salicylic Acid Shampoo, Hydroquinone Time Release Cream, Loratadine Tablets 7 product launches in FY10 • Mesalamine Enema Kit, PEG-3350, Clindamycin Foam, Ciclopirox Shampoo, Imiquimod Cream, HC Pramoxine Cream, HC Pramoxine Rectal Cream 4 product lau
Slide 90: Leadership in the Generic Topical Market Driving Robust Results
Leadership in the Generic Topical Market Driving Robust Results Annual Revenue & Adj. Operating Margin in millions 38.2% $350 45% $300 40% 33.0% 31.2% 35% $250 23.7% 30% 23.1% $200 25% $344 $150 20% $238 15% $100 $160 $164 10% $137 $50 5% $0 0% FY2007 FY2008 FY2009 FY2010 FY2011 Annual Revenue Adjus
Slide 91: Rx Pharmaceuticals Segment Market Overview
Rx Pharmaceuticals Segment Market Overview 91 Quality, Affordable Healthcare Products
Slide 92: Sales and Total Rx Share Brands and Generics
Sales and Total Rx Share Brands and Generics Source: IMS Health, National Sales Perspectives, Nov 2010, Branded generics disaggregated, Source: IMS Health, National Prescription Audit, 92 Branded generics disaggregated, Dec 2010 Quality, Affordable Healthcare Products
Slide 93: Patent Expiry Over Time
Patent Expiry Over Time in Rx Revenue ($B) 40 37 35 30 29 25 23 BRx Sales ($B) 20 20 18 17 16 15 14 14 14 13 10 10 5 0 2005 2006 2007 2008 2009 2010 2011E 2012E 2013E 2014E 2015E 2016E Year GRx Expected to Enter 93 Source: Bernstein Research, The Long View: a bottom up model of the US generic market
Slide 94: All Generics Are Not Created Equal
All Generics Are Not Created Equal New and Generic Drug Approvals - June 1, 2011 Donepezil HCl Tabs Matrix Laboratories Ltd., Approval Donepezil HCl Tabs Cipla Ltd., Approval Donepezil HCl Tabs Wockhardt Ltd., Approval Donepezil HCl Tabs Roxane Laboratories, Inc., Approval Donepezil HCl Tabs Sandoz
Slide 95: Total U.S. Generic Market vs. Extended Topical Generic Market
Total U.S. Generic Market vs. Extended Topical Generic Market U.S. Generic Market U.S. Extended Topical Generic Highly Fragmented Market Key Players 25% $350 $303 $300 $287 19% 20% 17% Market Share $250 $223 15% $187 $184 $200 10% 8% 9% $150 8% $97 $89 $88 6% $100 $86 5% $73 $68 $66 5% 4% 4% 3% 3% 2
Slide 96: Total U.S. Brand Opportunities in Extended Topicals: $43.8B
Total U.S. Brand Opportunities in Extended Topicals: $43.8B $ in Billions 96 Source: WK Health (April 2011), WAC Dollars Quality, Affordable Healthcare Products
Slide 97: Rx Strategic Focus
Rx Strategic Focus Solidify our leadership position in the U.S. extended topical generic market • Strive to be first-to-market or at generic market formation • Aggressively pursue alliances and partnerships Increase overall scale Drive ORx® growth with new products Make inroads into innovative topic
Slide 98: Key Products – Perrigo U.S. Market Share
Key Products – Perrigo U.S. Market Share 98 Source: Wolters Kluwer Health - May 2011 (units) Quality, Affordable Healthcare Products
Slide 99: Quantitative Pipeline Snapshot
Quantitative Pipeline Snapshot 41 ANDAs Are Currently Pending FDA Approval • ANDAs represent $4B in branded sales • 9 confirmed first-to-file ANDAs 9 Ongoing PIV Litigations • Clobetasol Propionate 0.05% Emulsion Foam (Olux-E®) • Betamethasone 0.064%, Calcipotriene 0.005% Oint (Taclonex®) • Fenofibr
Slide 100: Recent PIV Litigation Settlements / Date Certain Launches
Recent PIV Litigation Settlements / Date Certain Launches Tablets launched in November, 2010; Date certain Levocetirizine Tablets and Syrup launch date for Syrup per settlement agreement: (Xyzal®) November, 2011 AG rights for two undisclosed topical products in January Two undisclosed topical produc
Slide 101: Inorganic Growth Opportunities
Inorganic Growth Opportunities Continue to aggressively seek out business development opportunities Product alliances / partnerships – wide net • Risk / reward sharing for extended topicals • Technologies / manufacturing capabilities we do not have (MDIs, patches, sterile) • Authorized generics M&A
Slide 102: Paddock Acquisition Rationale
Paddock Acquisition Rationale Strategic fit • Attractive portfolio of non-commodity Rx products (topicals, powders, sterile, controlled substances) • Adds scale to Rx segment (~$200M in sales) – platform for future growth • Large pipeline, including few promising products Structure • Acquisition of
Slide 103: Status of Paddock Labs / Perrigo Minnesota Integration
Status of Paddock Labs / Perrigo Minnesota Integration Closed acquisition on July 26th Eliminated ~20 overlapping positions, several executives Site now referred to as “Perrigo Minnesota,” long-term commitment Integration office established to track, run business and make decisions Executive Committ
Slide 104: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Favorable commercial dynamics Paddock acquisition Pipeline Triamcinolone Nasal Spray Business development 104 Quality, Affordable Healthcare Products
Slide 105: API Segment
API (Active Pharmaceutical Ingredient) Segment Rafi Lebel – EVP & President Perrigo Israel 105 Quality, Affordable Healthcare Products
Slide 106: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Develops, manufactures and markets API Focused on complex API products to third party customers Our products are sold in more than 30 countries and in 4 continents New product sales of $32M driven by Temozolomide in E.U. Growing vertical integrat
Slide 107: Leadership in the Active Pharmaceutical Ingredient Market
Leadership in the Active Pharmaceutical Ingredient Market Annual Revenue & Adj. Operating Margin in millions $200 25.9% 30% $175 25% 12.5% 18.2% $150 15.4% 17.5% 20% $125 $100 15% $75 $144 $156 $144 $136 10% $121 $50 5% $25 $0 0% FY2007 FY2008 FY2009 FY2010 FY2011 Annual Revenue Adjusted Operating M
Slide 108: API Business Overview
API Business Overview Uncompromising quality of service at every stage Specializes in tailor-made Research and Process Development Wide range of industrial capabilities based on complex chemical reactions and technologies Customer-tailored manufacturing scales, from lab to multi- ton quantities Stat
Slide 109: Global Generic Market
Global Generic Market Global generic market expected to grow to $250B by 2015 Continued Growth but Lower Growth Rate Global generic Merchant API market expected to grow to $30B by 2013 (~10% CAGR) Positive Factors • People living longer/consuming more drugs • Emerging markets continue to grow • $135
Slide 110: Our Strategic Direction
Our Strategic Direction Increase pipeline to leverage global generic API Israel - Ramat Hovav market growth Complex APIs & V.I. • Differentiation • High barrier products • Highly regulated markets • Selective FDF* with partners • Vertical Integration products Complete Solution • Customer service • V
Slide 111: Global Presence – FY11 Sales by Region
Global Presence – FY11 Sales by Region West Europe 53% East Europe 9% North America 25% Israel Far East, Japan, 3% Asia Pacific 8% Latin America Manufacturing Site 2% Sales Subsidiary 111 Quality, Affordable Healthcare Products
Slide 112: Commercial Landscape: Customers & Competition
Commercial Landscape Customers & Competition Some of Perrigo API top products are increasingly exposed to competition Top Customers New pipeline products including V.I. products enable Perrigo to grow sales and profit • Fresenius (APP) • Hamlen Since 1999, 60% of the Top 25 generic companies • Hi Te
Slide 113: Top & Vertically Integrated Products
Top & Vertically Integrated Products Top Products Therapeutic Use V.I. Products Therapeutic Use Cetirizine Non-sedative anti- Ammonium Ichthyosis vulgaris histamine Lactate and xerosis Flumazenil Benzodiazepine Fluticasone Anti-inflammatory antagonist Fluticasone Anti-inflammatory Halobetasol Anti-i
Slide 114: New Product Pipeline – 3rd Party & V.I. Products
New Product Pipeline – 3rd Party & V.I. Products FY 12 Therapeutic Use Fluticasone (new ANDA+ NDA + New Customers) Antiinflammatory, Antiallergic agent Anastrazole Aromatase inhibitor Cisatracurium (Nimbex®) Muscle relaxant neuromuscular blocking agent Imiquimod* (Aldara®)* Immune response modifier
Slide 115: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Global generic market (API & FDF) continues to grow in the next years Continued consolidation in the market results in less potential customers Increase our pipeline to leverage the global generic market growth and Perrigo‟s growth Our strategy f
Slide 116: Global Operations and Supply Chain
Global Operations and Supply Chain John Hendrickson, EVP Global Operations and Supply Chain 116 Quality, Affordable Healthcare Products
Slide 117: Strengths Aligned with Perrigo's Strategy
Journey of Growth, Execution & Continuous Improvement Quality fully integrated into operational systems Supply chain integrated with retail customers Cost focused throughout the supply chain Integrated API / supplier production for some key items High volume supply partners with global footprint Gre
Slide 118: Global Perrigo Sites
Global Perrigo Sites Over 8,700 employees worldwide! Perrigo Michigan Perrigo U.K. Perrigo Minnesota Perrigo Infant Formula – Virginia, Ohio and Vermont Perrigo South Carolina Perrigo Israel Perrigo China Perrigo Florida Perrigo Mexico Perrigo New York Perrigo India Perrigo Australia 118 Quality, Af
Slide 119: Perrigo Headquarters – Allegan, MI
Perrigo Headquarters – Allegan, MI Employees: 3,300 Primarily OTC Critical mass/scale Production of 35B tablets/year Mass customization More than 7K SKUs 119 Quality, Affordable Healthcare Products
Slide 120: Perrigo Holland, MI
Perrigo Holland, MI Employees: 375 OTC Contract / Manufacturing 120 Quality, Affordable Healthcare Products
Slide 121: Perrigo Minnesota
Perrigo Minnesota Employees: 400 Generic Rx products 121 Quality, Affordable Healthcare Products
Slide 122: Perrigo Infant Formula – Virginia, Ohio & Vermont
Perrigo Infant Formula – Virginia, Ohio & Vermont Employees: 500 Infant Formula and Foods 122 Quality, Affordable Healthcare Products
Slide 123: Perrigo Florida
Perrigo Florida Employees: 200 Pediatric electrolytes, enemas and feminine hygiene products 123 Quality, Affordable Healthcare Products
Slide 124: Perrigo New York
Perrigo New York Employees: 450 Prescription and OTC creams, ointments, liquids, shampoos and suppositories 124 Quality, Affordable Healthcare Products
Slide 125: Perrigo South Carolina
Perrigo South Carolina Employees: 400 Vitamins 250 in-house formulas 3,000 finished packaged SKUs 125 Quality, Affordable Healthcare Products
Slide 126: Perrigo Mexico
Perrigo Mexico Employees: 500 Mexico‟s SB leader OTC / Rx products U.S. FDA approved operations 126 Quality, Affordable Healthcare Products
Slide 127: Perrigo Australia
Perrigo Australia Employees: 150 OTC pharmaceuticals for retail and hospitals 127 127 Quality, Affordable Healthcare Products
Slide 128: Perrigo United Kingdom
Perrigo United Kingdom Employees: 500 OTC products Licensed for E.U. distribution Shipping and receiving 128 Quality, Affordable Healthcare Products
Slide 129: Perrigo Israel – Bnei Brak, Yerucham & Ramat Hovav
Perrigo Israel – Bnei Brak, Yerucham & Ramat Hovav Employees: 1,050 Corporate offices in Bnei Brak Manufacturing for U.S. Rx market; creams / ointments & foams / nasals Development, manufacturing & marketing of API R&D of prescription & OTC pharmaceuticals Drug / Device distribution in Israel 129 Qu
Slide 130: Perrigo India – Hyderabad
Perrigo India – Hyderabad Employees: 50 Formulation and analytical R&D for monograph and prescription products 130 Quality, Affordable Healthcare Products
Slide 131: Perrigo China – Shanghai
Perrigo China – Shanghai Employees: 60 Raw material sourcing & quality assurance Nutritional sales 131 Quality, Affordable Healthcare Products
Slide 132: Perrigo India API Facility
Perrigo India API Facility Employees: 140 API manufacturing R&D 132 Quality, Affordable Healthcare Products
Slide 133: One of the World's Leading Pharmaceutical Manufacturers
One of the World‟s Leading Pharmaceutical Manufacturers Facilities Solid dose Liquids Semi-Solids API/Powder North 40 Billion Tablets America 14 Plants 1.96 Billion Doses 520 Million Doses 45,000 tons EU 1 Plant 4 Billion Tablets 390 Million Doses Middle/ 4 Plants 1 Billion Tablets 80 Million Doses
Slide 134: Broad Operational and Supply Capabilities
Broad Operational and Supply Capabilities Tablets Capsules Solutions Suspensions Sprays (Nasal) Suppositories Creams/ointments Powders Lozenge Foam Aerosols Gums Injectables 134 Quality, Affordable Healthcare Products
Slide 135: National Brand Contract Sales
National Brand Contract Sales ($000‟s) $160,000 $140,000 Sales to national $120,000 brands has continued to increase $100,000 $80,000 Broad portfolio $60,000 of products combined with $40,000 strong marketing $20,000 expertise make this a natural fit $0 FY08 FY09 FY10 FY11 Contract 135 Quality, Affo
Slide 136: Five Pillars = Operational Excellence
Five Pillars = Operational Excellence CUSTOMER QUALITY COST INNOVATION PEOPLE SERVICE • Compliance • Capacity • Lean • New Product • Great Talent Status • Investments Initiative Launches • Development • Investments • Sourcing • Vertical Programs • Strategic Integration Investments Five Pillars Where
Slide 137: Quality
Quality All 19 plants globally in good compliance standing Allegan warning letter resolved and remediation extended to all sites; resolution achieved by: • Global team focus (30 global quality/operations non-Allegan resources lead the review teams full time) • Selective use of external resources (tw
Slide 138: Customer Service (Growth Capacity)
Customer Service (Growth Capacity) All operating sites producing at full strength Added over $25M of “capacity” assets in FY11 with over $35M planned for FY12 • Extended release/high tech tablets • Suspensions/complex liquids (nasal) • Creams/ointment expansions • API expansion Partnerships with key
Slide 139: Cost Effectiveness
Cost Effectiveness Utilization of Lean Sigma initiatives to drive costs (waste) out of the system • Waste reduction • Deviation elimination • Automated flow enabled by technology • Increased velocity through operations to drive working capital Utilization of global sourcing, resourcing and leverage
Slide 140: Innovation
Innovation Utilization of Stage Gate “launch” process to deliver one new product every week Efficiently integrate product and company acquisitions into the Perrigo systems to deliver synergistic/growth objectives Vertical integration of core technologies to deliver low cost, strong supply processes
Slide 141: People
People Hire high quality, core leaders to enable growth • Development programs • Education • Experiential opportunities Compensation tied to corporate results and ROIC metrics 141 Quality, Affordable Healthcare Products
Slide 142: Strengths Aligned with Perrigo's Strategy
Journey of Growth, Execution & Continuous Improvement Quality fully integrated into operational systems Supply chain integrated with retail customers Cost focused throughout the supply chain Integrated API / supplier production for some key items High volume supply partners with global footprint Gre
Slide 143: Global Finance
Global Finance Judy Brown, EVP and CFO 143 Quality, Affordable Healthcare Products
Slide 144: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Strong historical performance Continued growth and leverage of the P&L Strong, well capitalized balance sheet provides foundation for future growth Proven track record of acquisition integration into our existing processes and operations ROIC foc
Slide 145: Performance vs. Internal Goals
Performance vs. Internal Goals1 $ in millions 3 Year Perrigo Long-Term Financial Goals: FY08 FY09 FY10 FY11 Status CAGR Revenue: + 5 – 8 % $ 1,727 $ 2,006 $ 2,268 $ 2,755 17% EPS 2: + 10 – 16 % $ 1.79 $ 2.07 $ 3.03 $ 4.01 31% Operating Cash Flow 3,4: > 125% of NI 191% 165% 149% 110% 143% Segme
Slide 146: Revenue Performance
Revenue Performance* Top line growth fueled by both $3,500 organic and inorganic activities $3,000 $2,755 Four year organic CAGR of 12%; 7% non-organic $2,500 $2,268 in USD millions $2,006 Sales base diversification $2,000 continues $1,727 $1,500 $1,368 >$660M in new product sales over last 3 years
Slide 147: Perrigo Adjusted GM% and Adjusted OM% Performance
Perrigo Adjusted GM% and Adjusted OM% Performance* 36% 35.4% 22% 35% 21% 34.2% 34% 19.6% 20% Adj. Operating Margin % Adj. Gross Margin % 33% 18.0% 19% 32% 18% 31.0% 31% 17% 30% 16% 14.6% 29% 15% 28% 14% FY09 FY10 FY11 Adjusted Gross Margin Adjusted Operating Margin Adjusted operating margin increase
Slide 148: Adjusted Distribution, Selling, General & Administration Expenses
Adjusted Distribution, Selling, General & Administration Expenses* $400 15% Maintained adjusted $350 DSG&A as % of sales, $35 14% while incorporating two $300 acquisitions $28 in USD millions $250 $117 $24 13% $86 $200 Invested in new product $79 marketing, global HR 12% $150 and IT systems and tale
Slide 149: Operating Cash Flow and EBITDA
Operating Cash Flow and EBITDA* $700 Continued record cash $594 flow despite economy $600 $500 in USD millions $411 $400 $374 Cash Flow from $332 $307 Operations far $300 surpassed net income $240 for last ten years $200 $100 $0 FY12 projected Cash Flow from Operations FY09 FY10 FY11 of between $470
Slide 150: Cash Flow Management – GAAP Working Capital Turns Improvement
Cash Flow Management – GAAP Working Capital Turns Improvement 5.00 46% improvement in working 4.64 capital turns despite 4.50 increased complexity of portfolio and supply chain 4.00 3.61 3.50 3.17 3.00 Number of times AR turns improved 5%, while 2.50 AP turns increased 7% 2.00 1.50 1.00 Strong incre
Slide 151: Expanding Our Reach
Journey of Growth, Execution & Continuous Improvement • Acquisition of JB • Acquisition of PBM • Investment in • Acquisition of Labs (infant nutrition) AgaMatrix (Diabetes Paddock Labs Our Reach Expanding • Acquisition of Diba • Acquisition of Orion care) • Continued European (Mexico) Labs (Australi
Slide 152: How We've Grown – Financial Highlights FY09-FY11
How We‟ve Grown – Financial Highlights FY09-FY11 Adjusted in USD millions, Operating Adjusted except per share amounts Net Sales * Income * EPS * Fiscal 2009 $ 2,005.6 $ 293.2 $ 2.07 New Products: OTC/VMS 167.0 69.7 0.53 RX 141.3 70.7 0.60 API 32.0 12.8 0.12 Acquisitions 350.7 78.4 0.42 Core Pricing
Slide 153: Future Planning Horizons – Organic Growth Only
Future Planning Horizons – Organic Growth Only* FY13 - FY15 Goals FY12 Guidance Perrigo Long-Term Financial Goals (3 year CAGR) 15 - 18% Revenue Growth 5 - 10% 12 - 16% Adjusted EPS Growth 10 - 20% >125% NI Operating Cash Flow - annual target >125% NI YOY Revenue Segment 3 year CAGR Segments Growth
Slide 154: Debt Composition
Debt Composition Continues to Build on Consistent Principles $1.49 billion * Term Loans Average cost of borrowing 4.47% is a strategic as well as competitive advantage Private Placement Notes * Pro Forma to include July 2011 term loan for Paddock acquisition and Private Placement notes which will be
Slide 155: Debt Profile Continues to Support Long Term Flexibility
Debt Profile Continues to Support Long Term Flexibility in USD millions Maturities* Debt to Capital $265 44% $1,478 $175 $165 $150 $150 37% $893 $115 $125 46% $944** $115 $100 $75 56% $1,866 $40 63% $1,531 $15 54% $1,094 FY10 FY11 FY12 Proj Total Debt = $1,493M Total Debt Shareholders‟ Equity Year-E
Slide 156: Strong Balance Sheet and Cash Flows Drive Liquidity for Growth
Strong Balance Sheet and Cash Flows Drive Liquidity for Growth $0.34B By FYE12, $1.6B of Add’l debt total global within deployment possible $0.36B covenants * FY12 Change in $0.45B Cash Undrawn credit (net of Paddock) $0.35B Private Placement Notes $0.10B Cash (net of Paddock) $900M Committed Liquid
Slide 157: Uses of Liquidity
Uses of Liquidity Continued reinvestment in the business • CAPEX projected in the $95 -105M range in FY12 • Expected FY13-15 normalized CAPEX targeted to equal depreciation, or approximately $80 - 100M Shareholder return • Annual dividend increases consistent with long-term EPS growth • Value-based
Slide 158: What are the Filters We Use to Consider M&A?
What are the Filters We Use to Consider M&A? New Adjacency, Product or Market? Customer and Regulatory Environment Favorable? Does the opportunity allow us to expand our Do we have the necessary infrastructure? footprint to better Is the market already provide Quality, using OTCs, GRx, ROIC > (WACC
Slide 159: Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC)* Internal ROIC metric is foundational basis for all management decision making FY Reported This focus has resulted in 2007 8.8% consistent creation of excess returns in addition to growth 2008 13.3% 2009 13.3% Management focused on 2010 14.7% operating, or tangible
Slide 160: Journey of Growth, Execution & Continuous Improvement
Journey of Growth, Execution & Continuous Improvement Strong historical performance Continued growth and leverage of the P&L Strong, well capitalized balance sheet provides foundation for future growth Proven track record of acquisition integration into our existing processes and operations ROIC foc
Slide 161: Questions
Questions 161 Quality, Affordable Healthcare Products
Slide 162: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 163: Table I: Reconciliation of Non-GAAP Measures
FY 2007* FY 2008* FY 2009* FY 2010* FY 2011* Consolidated Net sales $1,367,717 $ 1,727,480 $ 2,005,590 $ 2,268,150 $ 2,755,029 Reported gross profit $ 364,258 $ 515,497 $ 597,100 $ 746,233 $ 944,870 Deal-related amortization (3) 12,383 22,409 19,361 18,736 30,663 Impairment of fixed assets - - 1,600
Slide 164: Table II: Reconciliation of Non-GAAP Measures
Table II PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) FY 2007* FY 2008* FY 2009* FY 2010* FY 2011* Consumer Healthcare Net sales $ 880,354 $ 1,169,131 $ 1,412,550 $ 1,573,749 $ 1,684,938 Reported operating income $ 61,270 $ 173,114 $ 240,047 $ 303,677 $ 293,097 Deal
Slide 165: Table III: FY 2012 Guidance
Table III PERRIGO COMPANY FY 2012 GUIDANCE RECONCILIATION OF NON-GAAP MEASURES (unaudited) Fiscal 2012 Guidance* FY12 reported diluted EPS from continuing operations range $3.79 - $3.94 Deal-related amortization (1) 0.54 Charge associated with inventory step-up 0.11 Charges associated with acquisiti
Slide 166: Table IV: Reconciliation of Non-GAAP Measures
Table IV PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (dollars in thousands) (unaudited) Fiscal Year 2012 2009 2010 2011 Guidance Net cash from operating activities $ 239,757 $ 332,363 $ 373,961 $ 483,500 Changes in operating assets and liabilities, net of asset and business acquisitions 12,0
Slide 167: Table V: Reconciliation of Non-GAAP Measures
Table V PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Fiscal Year (1) (1) 2007 2008 2009(1) 2010 2011 Reported operating income $ 97,971 $ 194,858 $ 247,307 $ 335,899 $ 490,205 Estimated income tax expense(2) (16,076) (41,337) (76,071) (91,649) (119,764) Net operatin