Perrigo Company plc · NYSE:PRGO
Perrigo — Q4 FY2009 Earnings Presentation
21 slides from Perrigo's earnings presentation, Aug 18, 2009
Slide 1: Perrigo Fiscal Fourth Quarter Conference Call
Perrigo Fiscal Fourth Quarter Conference Call August 18, 2009
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: All Category Update – Latest quarter
All Category Update – Latest quarter Category National Brand Store Brand 13.2% Total OTC & Nutrition 0.8% 3.9% 12.9% OTC -1.4% 2.1% 8.9% Analgesics 2.5% 4.1% Cough, Cold, Allergy, 14.0% 0.3% Sinus 0.3% 20.0% Gastrointestinal -1.5% 4.1% -0.3% Smoking Cessation 1.5% 0.7% 14.2% Nutrition 9.3% 10.7% -15
Slide 4: API Investment in India
API Investment in India The API business is a key strategic part of the Perrigo portfolio Rationale: Value: • Improve API return on invested capital • Decrease future manufacturing and development costs • Vertical integration strategy • Lower capital investment requirements • Expanding position in l
Slide 5: GAAP Financials - From Continuing Operations
GAAP Financials - From Continuing Operations Perrigo Consolidated Q4 2009 Q4 2008 % Change ($ in millions, except per share amounts) Y/Y Net Sales $ 508 $ 474 7% Cost of Sales 344 339 2% Gross Profit 164 135 21% Distribution and SG&A 72 72 -1% R&D 22 21 6% Restructuring 15 2 Operating Profit 56 40 3
Slide 6: Non-GAAP Financials – From Continuing Operations
Non-GAAP Financials* – From Continuing Operations % Change Q4 2009 Q4 2008 ($ in millions, except per share data) Y/Y Net Sales $ 508.2 $ 474.3 7% - - Reported Gross Profit 163.9 135.1 21% Inventory step-up - Galpharm - 2.9 Impairment of intangible asset - 10.3 Adjusted Gross Profit $ 163.9 $ 148.3
Slide 7: Adjusted Financials - From Continuing Operations
Adjusted Financials* - From Continuing Operations Perrigo Consolidated % Change Change as a Q4 2009 Q4 2008 ($ in millions, except per share amounts) Y/Y % to sales Net Sales $ 508 $ 474 7% Adjusted Cost of Sales 344 326 6% Adjusted Gross Profit 164 148 10% +90 bps Distribution and SG&A 72 72 -1% R&
Slide 8: Consumer Healthcare Adjusted Segment Financials
Adjusted Segment Financials* -From Continuing Operations Consumer Healthcare % Change Change as a Q4 2009 Q4 2008 ($ in millions) Y/Y % to sales Net Sales $ 407 $ 375 9% Adjusted Cost of Sales 287 261 10% Adjusted Gross Profit 120 114 5% -100 bps Adjusted Operating Expenses 64 57 12% Adjusted Operat
Slide 9: Rx Pharmaceuticals Adjusted Segment Financials
Adjusted Segment Financials* -From Continuing Operations Rx Pharmaceuticals % Change Change as a Q4 2009 Q4 2008 ($ in millions) Y/Y % to sales Net Sales $ 49 $ 38 27% Adjusted Cost of Sales 28 24 15% Adjusted Gross Profit 21 14 47% +570 bps Operating Expenses 9 10 -8% Adjusted Operating Profit $ 12
Slide 10: API Adjusted Segment Financials
Adjusted Segment Financials* -From Continuing Operations API % Change Change as a Q4 2009 Q4 2008 ($ in millions) Y/Y % to sales Net Sales $ 39 $ 38 2% Cost of Sales 22 25 -12% Gross Profit 17 13 27% +890 bps Adjusted Operating Expenses 8 10 -19% Adjusted Operating Profit $ 9 $ 4 146% +1390 bps Marg
Slide 11: Other Segment Financials
Segment Financials -From Continuing Operations Other % Change Change as a Q4 2009 Q4 2008 ($ in millions) Y/Y % to sales Net Sales $ 13 $ 23 -41% Cost of Sales 7 16 -54% Gross Profit 6 7 -11% +1520 bps Operating Expenses 4 6 -39% Operating Profit $ 2 $ 1 191% +1400 bps Margin Analysis Positive Impac
Slide 12: Perrigo FY09 Final Performance vs. August Guidance
Perrigo FY09 Final Performance vs. August Guidance* -From Continuing Operations 13% +16% 18% Consolidated Revenue Growth 18% +22.6% 24% Consumer Healthcare Revenue Growth Adjusted Consolidated 12% +13.3% 14% Operating Margin Adjusted EPS from 13% +15% 20% Continuing Operations Growth $210M $220M Ope
Slide 13: Perrigo FY10 Outlook
Perrigo FY10 Outlook -From Continuing Operations Consolidated Revenue Growth 4% to 6% from Fiscal 2009 Consolidated Operating Margin 13% to 14% of Net Sales Consumer Healthcare Revenue Growth 6% to 8% from Fiscal 2009 Cash Flow from Operations $220M to $260M Estimated Effective Worldwide Tax Rate Ap
Slide 14: Perrigo Fiscal 2010 Enablers
Perrigo Fiscal 2010 Enablers Goal 1: Execute on our Operating Plan Goal 2: Execute API Strategic Transformation 7% to 13% Consolidated Goal 3: Execute Nutrition Turnaround Strategy EPS Growth* Goal 4: International Expansion Innovation Low Cost Service Quality People *Growth as compared to adjusted
Slide 15: Store Brand Omeprazole Volume Share - FDMx
Perrigo Store Brand Omeprazole Volume Share - FDMx 45% 41.3% 40.8% 39.4% 40.3% 40% 38.4% 37.8% 35.8% 36.2% 36.7% 34.7% 33.9% 34.5% 35% 31.2% 30.8% Volume Share 30% 27.5% 25% 22.0% 20% 15% 10% 4.1% 5% 0% 6/08 3/08 1/08 /8/08 /6/08 /3/08 1/08 8/08 26/08 23/08 21/08 8/09 5/09 5/09 2/09 0/09 /7/09 3/1 4
Slide 16: Store Brand Cetirizine 10MG Volume Share - FDMx
Store Brand Cetirizine 10MG Volume Share - FDMx 60% 53.1% 53.2% 50.0% 51.2% 49.4% 50% 47.4% 47.3% 49.0% 45.9% 46.0% 43.8% 42.6% 42.0% 40% 37.7% 38.5% Volume Share 35.6% 30% 27.0% 20% 12.6% 10% 0% 7/08 6/08 3/08 1/08 /8/08 /6/08 /3/08 1/08 8/08 26/08 23/08 21/08 8/09 5/09 5/09 2/09 0/09 /7/09 2/1 3/1
Slide 17: Appendix
Appendix 17
Slide 18: Table II Reconciliation of Non-GAAP Measures
Table II PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited) Fourth Quarter Fiscal Year 2009 2008 % Change 2009 2008 % Change Net sales $ 508,209 $ 474,282 7% $ 2,006,862 $ 1,729,921 16% Reported gross profit $ 163,853 $ 135,093 21% $ 595,997 $ 51
Slide 19: Table II (Continued) Reportable Segments Reconciliation
Table II (Continued) REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Fourth Quarter Fiscal Year 2009 2008 % Change 2009 2008 % Change Consumer Healthcare Net sales $ 407,009 $ 374,645 9% $ 1,638,770 $ 1,336,140 23% Reported gross profit $ 119,782 $ 111,037 8% $ 460
Slide 20: Table II (Continued) Reportable Segments Reconciliation
Table II (Continued) REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Fourth Quarter Fiscal Year 2009 2008 % Change 2009 2008 % Change Rx Pharmaceuticals Net sales $ 48,840 $ 38,425 27% $ 164,163 $ 161,271 2% Reported gross profit $ 21,010 $ 3,969 $ 63,801 $ 58,622
Slide 21: Table III Reconciliation of Non-GAAP Measures
Table III PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Fourth Quarter Adjustment - Adjustment - Intangible Fourth Quarter Reported Cost of Sales Inventory Step-Up Asset Impairment Adjusted Cost of Sales 2009 2008 2009 2008 2009 2008 2009 2008 Segments Consumer Healt