Perrigo Company plc · NYSE:PRGO
Perrigo — Investor Day (September 2005)
87 slides from Perrigo's investor day presentation, Sep 22, 2005
Slide 1: Delivering Health Care Value
Delivering Health Care Value 1
Slide 2: Welcome to the 2005 Analysts' Meetings
Welcome to the 2005 Analysts’ Meetings Boston, MA September 22, 2005 New York, NY September 23, 2005 2
Slide 3: Safe Harbor Statement
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 futur
Slide 4: Meeting Presentation
Meeting Presentation Dave Gibbons Overview Strategic Review of Operations John Hendrickson Consumer Healthcare Mori Arkin/Adam Levitt Pharmaceuticals Rafi Lebel Active Pharmaceutical Ingredients Sharon Kochan Israel Doug Schrank Financial Review Dave Gibbons Q&A 4
Slide 5: Perrigo's Evolution
Perrigo’s Evolution 5
Slide 6: Perrigo-Agis March 2005
• Founded 1887 • Founded 1961 • Management LBO 1984 • IPO (TASE) May 1992 • IPO (NASDAQ) December (AGIS) 1991 (PRGO) Perrigo-Agis March 2005 Perrigo’s Evolution 6
Slide 7: Historically a generic pharmaceutical business with OTC focus
Historically A generic pharmaceutical business with an OTC consumer healthcare focus Today A New Model: A comprehensive generic pharmaceutical business with an established OTC consumer healthcare (CHC) business and a growing Rx business Perrigo’s Evolution 7
Slide 8: Agis Acquisition
Agis Acquisition Why generic Rx? • Leverage core capabilities • Higher growth category Why Agis? • Growth vehicle with generic Rx, API* and OTC • Fit with CHC core strengths – R&D for Rx and OTC switches – Low cost manufacturing / packaging What we purchased • Sales $400+ million; operating income $
Slide 9: Generic Rx & Generic OTC – Key Financial Statistics
Generic Rx & Generic OTC – Key Financial Statistics Fiscal 2006 Annual Sales by Business ($ million) Consumer Healthcare ˜ $1,000 (USA, UK, Mexico) Generic Rx, API (USA, Europe, IL) ˜ 390 and Other (Israeli Pharma & Consumer Products) $1,390 Annual Operating Cash Flow ˜ $80 -$100 (Before CAPEX & div
Slide 10: A Unique and Powerful Combination
A Unique and Powerful Combination Channel Generic Rx Relationships Solid Dose / Liquid Capabilities API Perrigo + Efficient Agis Manufacturing, Topical OTC Customized Packaging Differentiated Rx to OTC Pharma Technologies Perrigo’s Evolution 10
Slide 11: Generic Rx and OTC – Areas of Strength
Generic Rx and OTC – Areas of Strength • Maximize returns through overall portfolio management (Rx & OTC) • Collaborative R&D Centers of Excellence (solid dose, liquids, topical, API) • Strong R&D capabilities, low cost purchasing and efficient manufacturing/packaging • Leverage Rx expertise for har
Slide 12: Fiscal 2005 Accomplishments and Challenges
Fiscal 2005 Accomplishments and Challenges Key Accomplishments • Sales up 14% or $126 million to $1,024 • Acquired Agis March 2005 • Launched 9 OTC (including Nicotine Gum) and 6 Rx new products; first solid dose Rx sales New challenges • Pseudoephedrine/Methamphetamine/reformulation • Agis integrat
Slide 13: The New Perrigo
| mmm The New Perrigo
Slide 14: The New Perrigo
The New Perrigo: Established CHC + Growing specialized Rx/API Markets: US, Europe, Israel and Mexico Business units: • CHC – store brand OTC and nutritional • Rx – topical, oral solid dose • API – active ingredients for generic pharma industry • Israeli businesses – pharmaceutical, cosmetics, toilet
Slide 15: People & Production Facilities
People & Production Facilities • 5,800 people worldwide: – 3,200 in US – 1,500 in Israel – 1,100 in Europe and Mexico • 200+ life science professionals • 9 FDA inspected manufacturing facilities - approximately 4.3 million sq. ft. The New Perrigo 15
Slide 16: FY2005 Pro Forma Sales By Segment
FY2005 Pro Forma Sales By Segment Other API Gx CHC The New Perrigo 16
Slide 17: FY2005 Pro Forma Sales By Geographic Market
FY2005 Pro Forma Sales By Geographic Market Israel Mexico UK Europe Other US The New Perrigo 17
Slide 18: Research and Development Investment as a Percent of Sales
Research and Development Investment as a Percent of Sales 10% 8 6 4.8% 4 3.8% 3.1% 2.8% 3.1% 2 0 2002 2003 2004 2005 2006(F) The New Perrigo 18
Slide 19: Vision
Vision 19
Slide 20: Two Conflicting Issues
Two Conflicting (Colliding) Issues: PULATION COST CO AGING PO NTAINME NT Aging population with less Healthcare costs rising, disposable income driving a huge focus on needing more healthcare cost containment Vision 20
Slide 21: The Solution
The Solution CO ION ST AT CO L NTA OPU INM INGP EN T AG Perrigo’s vision is to be a part of the solution to this paradigm. To provide high-quality, low-cost pharma products that help cost containment in an increasingly “self-medicated” market on both sides of the pharmacy counter…. Generic Rx + Stor
Slide 22: Business model provides value to all constituents
Perrigo’s business model provides value to all constituents in the process GENERIC Rx & STORE BRAND OTC √ Healthcare Cost Containment √ √ Consumer Savings √ √ Retailer Profit √ √ Perrigo Profit √ WIN! WIN! Vision 22
Slide 23: Strategic Business Portfolio
Strategic Business Portfolio 23
Slide 24: Strategic Overview
Strategic Overview CHC API Rx Strategic Business Portfolio 24
Slide 25: CHC
CHC Strategy • Maintain leadership in SB • First to market with NBE, Rx switch, niche products • Efficient supply chain: global sourcing, LEAN manufacturing, “make to order” processes Key advantages • Broad SB OTC and nutritional product offering • Strong customer relationships • R&D for a wide vari
Slide 26: Generic Rx
Generic Rx Strategy • Focus on hard-to-develop, diverse topical forms • Target Rx-to-OTC switch candidates • Continue to pursue successful partnerships with branded companies Key advantages • Unique expertise in topical generics • Topical dosage form diversification • High quality R&D backed by stro
Slide 27: API
API Strategy • Customer’s first choice – Quality, customer responsiveness and IP innovation – Focus on complex, differentiated APIs • Forward integration synergies (i.e. finished dose for the US, and Europe) Key advantages • Multi-disciplinary development expertise • Proactive patent protection (23
Slide 28: Sustaining Strong Base While Driving Generics Growth
Sustaining Strong Base While Driving Generics Growth Core CHC Business Proven track record of: • Quality and service • Efficient manufacturing; customized packaging • First to market with key new products • Retailer relationships Strategy For Future Growth • Common brand - Perrigo • Leverage strong
Slide 29: Perrigo Consumer Healthcare
Perrigo Consumer Healthcare John Hendrickson
Slide 30: Introduction To Store Brands
Introduction To Store Brands
Slide 31: The Store Brand Leader
The Store Brand Leader The world’s largest manufacturer/supplier of OTC/Nutritional products for Store Brands 31
Slide 32: Store Brand Share
Store Brand Share Total market at retail (IRI data): Store Brand Perrigo Sales* Share Share • OTC $10.7 24% 65% • Nutritional $ 3.4 20% 25% $14.1 23% 55% Store Brand Category Retail Market Share Rank Cough/Cold/Allergy/Sinus $3.7 billion 21% #1 Vitamins $2.2 billion 29% #1 Analgesics $2.1 billion 22
Slide 33: Retail customers
SAFEWAY all (9) is =O Vvs? meijer ; pharmacy a equaline equate s[Publixts es a qua RITE P LD PERRIGD
Slide 34: Power of Store Brands
Power of Store Brands National Store Brand Brand Consumer Price $1.00 $.70 Retail Cost .75 .30 Retail Profit $ .25 $.40 % Profit 25% 57% Consumer Savings 30% Consumer Healthcare 34
Slide 35: Contribution of Store Brand to a Retailer's Total Category
Contribution of Store Brand to a Retailer’s Total Category . . . 80 70% 70 60% 60 50 47% Sales ($) 40% 40 Vol (Units) 33% 30% Profit ($) 30 27% 20% 20% 20 10 0 Analgesics Cough/Cold Vitamins Consumer Healthcare 35
Slide 36: Product Forms
Product Forms • Solid dose • Suspensions • Sustained release • Suppositories • Liquids • Effervescents • Creams • Aerosol Sprays • Ointments • Gum Consumer Healthcare 36
Slide 37: Over Fifteen Categories and 500 Formulas
Over Fifteen Categories… and 500 Formulas OTC OTC Miscellaneous Nutrition Analgesics Feminine Hygiene Multiple Vitamins Cough/Cold/Allergy/ Diagnostic Tests Single Ingredient Sinus Dermatological Vitamins Antacids Foot Care Minerals Laxatives Suppositories Supplements Smoking Cessation Sleep Aids Fi
Slide 38: Store Brand Leader
Store Brand Leader • $1 billion in sales • Consumer packaged goods with pharmaceutical focus – Multiple facilities in the U.S., Mexico and U.K. – 3 million square feet – 4,200 employees • Quality and customer service reputation • Broad product range • Preferred supplier – strong retailer relationshi
Slide 39: CHC Store Brand Suppliers' Sales
CHC Store Brand Suppliers’ Sales ($ millions) Perrigo $933 Leiner $685 NBTY* $300 (est) LNK Int'l $100 (est) Accumed $30 - 50 (est) Alpharma* $30 - 50 (est) G&W $30 - 50 (est) Guardian $30 - 50 (est) Ivax* $30 - 50 (est) Taro* $30 - 50 (est) 0 200 400 600 800 1000 *Estimated store brand segment sale
Slide 40: Overall Market Trends
Overall Market Trends • Overall industry growth continues at 1 – 2% • Consumers becoming more comfortable with Store Brands • Most new products cannibalize existing sales (exception – Smoking Cessation, Loratadine and Omeprazole) • Top 10 retailers growing in market share • Faster new product and pa
Slide 41: Review of Fiscal 2005
— —~< Review of Fiscal 2005
Slide 42: Fiscal 2005
Fiscal 2005 Key Accomplishments • Launched nicotine gum, loratadine 10 mg tablet, miconazole 3-day combo, foot care products • Developed 12-month integration plan for Agis’ SB topical business • Completed liquid brite stock project New/Continuing Issues • Pseudoephedrine/product reformulation • CCF
Slide 43: Outlook For Fiscal 2006
— —~ Outlook For Fiscal 2006
Slide 44: Strategic Objectives
Strategic Objectives Achieve 5% growth in Sales with faster growth in Operating Income • Growth – Continue first to market with new products – Tailor growth plans for top 10 accounts – Expand into adjacent categories – Continue to expand globally into China • Integrated supply chain – Global sourcin
Slide 45: Fiscal 2006 Overall Summary
Fiscal 2006 Overall Summary • Overall revenue growth target approximates 10% including Agis OTC’s – New product sales exceed $90 million – Pseudoephedrine sales loss of approximately $62 - 72 million – Continued store brand penetration in UK and Mexican markets • Maintain operating income - flat fro
Slide 46: Fiscal 2006 New Product Sales: Total $90M+
Fiscal 2006 New Product Sales: Total $90M+ • Smoking Cessation • New Phenylephrine Items • New APAP products - APAP Arthritis - APAP 8 Hour - APAP EZ Swallow Tab Consumer Healthcare 46
Slide 47: Pseudoephedrine Legislative Update
Pseudoephedrine Legislative Update Nov Nov Oct ‘05 ‘05 Note: Talent/Feinstein bill currently moving through Congress ‘05 July ‘05 *June ‘05 July Oct ‘04 Oct Dec ‘05 *July ‘05 ‘05 ‘05 July ‘05 May Sept ‘05 ‘05 Jan July Oct ‘05 ** ‘05 July ‘05 July June ‘05 ‘05 June ‘05 05 ‘05 June ‘ Oct Jan Apr ‘05 *
Slide 48: Pseudoephedrine Sales Revenue Impact
Pseudoephedrine Sales Revenue Impact Sales Fiscal 2005 Pseudoephedrine products $182 Expected sales decline $(62 – 72) Estimated Fiscal 2006 $110 - 120 Caution: This is an Estimated Scenario!! Consumer Healthcare 48
Slide 49: Fiscal 2006 Operations and Supply Chain Initiatives
Fiscal 2006 Operations and Supply Chain Initiatives • Sustained quality culture • Successfully launch new products • Manage pseudoephedrine conversion to phenylephrine • Utilize LEAN Sigma to: – Reduce inventory – Increase productivity • Integrate New York-based OTC business Consumer Healthcare 49
Slide 50: Fiscal 2006 Summary
Fiscal 2006 Summary Fiscal 2006 is most complicated in recent history – $90+ million new products – Pseudoephedrine to phenylephrine conversion – Agis OTC integration – Successfully invest in new products for Fiscal 2007 – Fiscal 2009 launch CHC team is confident it will be accomplished Consumer Hea
Slide 51: Generic Rx
Generic Rx Mori Arkin/Adam Levitt 51
Slide 52: Who We Are
Who We Are • Developer, manufacturer, and marketer of topical and oral solids Rx generics for the US market • Unique proven expertise in topical generics • High quality R&D backed by strong IP protection • Integration of expensive or difficult to source active ingredients • Sales of more than $100 m
Slide 53: USA Generic Trends
USA Generic Trends • Increasing competition and excess capacity result in price pressures – Forward integrated newcomers (India) – Authorized generics • Industry consolidation and partnering are accelerating • Largest companies have scale advantage • High quality R&D, RA and IP becoming more critica
Slide 54: USA Generic Rx Topical Trends
USA Generic Rx Topical Trends • High barriers to entry – costly clinical trials and difficult development process • Only few companies have a manufacturing scale advantage (Perrigo, Taro, Fougera) • High quality R&D, RA and IP remain critical • Competition is increasing (from 1-2 to 2-4 generic play
Slide 55: Generic Rx Suppliers – Topical
Generic Rx Suppliers – Topical 12 months ending May 2005 – WAC Sales ($ millions) TARO FOUGERA PERRIGO TEVA ALPHARMA STIEFEL PADDOCK G&W SPEAR DERM BAUSCH & LOMB 0 50 0 0 0 0 0 10 15 20 25 30 Source: NDC health, sales in WAC prices, actual net sales are lower. US$, Millions Generic Rx 55
Slide 56: Fiscal 2005 Accomplishments
Fiscal 2005 Accomplishments • Launched 9 Rx products including: – Mesalamine Enema (first-to-market with Teva) – Halobetasol Cream and Ointment (first-to-market with Fougera) – Mometasone Lotion (Paragraph IV exclusivity) – Mometasone Cream - agreement with Taro (first-to-market) – Ibuprofen suspens
Slide 57: FY2006 Key Objectives
FY2006 Key Objectives • Solidify our position as leading US topical generic player • Expand solid dose generics and non-dermatological topicals (i.e. nasal sprays and trans-dermal hormones) • Target products that require multi-disciplinary expertise • Successfully launch internally developed ANDAs a
Slide 58: Major Generic Rx Products
Major Generic Rx Products Product Brand product Indication AMMONIUM LACTATE LOTION AND CREAM,12% Lac-hydrin® Moisturizer BENZOYL PEROXIDE TOPIC.GEL,USP Benzamycin® Acne therapy CLINDAMYCIN PHOS. PLEDGETS, 1% Cleocin® Vaginal infection KETOCONAZOLE 2% SHAMPOO Nizoral® Tinea Veriscolor Ulcerative coli
Slide 59: API
API Rafi Lebel 59
Slide 60: Who We Are
Who We Are • World class developer and manufacturer of APIs selling to more than 25 countries • Advanced R&D capabilities resulting in an array of proprietary patents (23 granted, 39 filed) • Full cGMP production – from grams to multi-ton • 22 US DMF’s, 14 European & 7 Canadian DMF’s - additional DM
Slide 61: API Market Trends
API Market Trends • Continued need for high quality, reliable API supplier with strong IP position • Increasing price pressure as generic Rx market becomes more competitive • Increasing competition from low cost Indian companies • More finished dose companies are vertically integrating into API • Co
Slide 62: Fiscal 2005 Key Accomplishments
Fiscal 2005 Key Accomplishments • Maintained our leading position for our key products: – Pentoxifylline, Tramadol, Midazolam, Fenofibrate, Fluticasone and Moxonidine • Achieved important milestones in anti-cancer products development • Key Donepezil patent granted in the US, strengthening our posit
Slide 63: Fiscal 2006 Key Objectives
Fiscal 2006 Key Objectives • Successfully launch APIs: – Zonisamide, Granisetron and Tramadol for new proprietary formulations • Launch of Granisetron as finished dose in the European market (April 2006) • Maintain leading market share on key products • Prepare additional capacity for new product la
Slide 64: Major API Products
Major API Products Product Brand product Indication Reduce leg pain caused by poor Pentoxifylline Trental® blood circulation Tramadol Ultram® Ultracet® Pain reliever Treatment of Narcolepsy, obstructive Modafinil Provigil® sleep apnea/hyponea Fluticasone Flonase NS®, Cutivate® Asthma, anti-inflammat
Slide 65: Israel: Business Overview
Israel: Business Overview (Pharmaceuticals & Consumer Products) Sharon Kochan 65
Slide 66: Israel Pharmaceuticals Overview
Israel Pharmaceuticals Overview • Overall market size $700 million • Leading supplier of domestic pharmaceuticals and related products • The majority of sales in Israel are derived from distribution of branded products • Agreements with multi-national pharma companies: – Schering AG, Bayer AG, Solva
Slide 67: Israel Consumer Products Overview
Israel Consumer Products Overview • Overall retail market $680 million • The leading local player, with strong national brands: – Careline, Neca and Natural Formula • Strong market position – Number 1 in 3 categories – Number 2 in 3 categories Israel Business 67
Slide 68: Financial Review
Financial Review Doug Schrank 68
Slide 69: Perrigo Sales and Earnings
Perrigo Sales and Earnings (See appendix for reconciliation to GAAP) (millions) Sales Net income 1,200 200 $1,024 1,000 $898 $835 $834 150 $753 $776 800 Net income Sales 600 100 $71 $63 400 $52 $45 $39 50 200 $15 CAGR 0 0 NS 5.2% Diluted EPS - 2000 2001 2002 2003 2004 2005 NI 27.1% Operating Basis $
Slide 70: Gross Profit and Operating Income as Percent of Sales
Perrigo Gross Profit and Operating Income as Percent of Sales (See appendix for reconciliation to GAAP) 40% 28.5% 29.8% 30% 27.1% 27.7% 26.2% 21.5% 20% 12.0% 9.8% 9.4% 10% 7.6% 8.6% 4.0% 0% 2000 2001 2002 2003 2004 2005 Gross profit Operating income 70 Financial Review
Slide 71: Return On Average Assets, Average Equity
Perrigo Return On Average Assets, Average Equity (See appendix for reconciliation to GAAP) 20% 14.4% 15% 12.0% 11.1% 11.1% 10.4% 10.1% 10% 8.4% 7.2% 7.6% 7.0% 6.3% 4.3% 5% 2.7% 0% 2000 2001 2002 2003 2004 2005 ROA Adj* ROA ROE *Adjusted to exclude the $400MM restricted cash deposit Financial Review
Slide 72: Cash Flow and EBITDA
Cash Flow and EBITDA* (See appendix for reconciliation to GAAP) (millions) Operating cash flow $142 150 EDITDA $139 125 $118 $114 $119 $104 $103 100 $85 $80 $78 75 $69 $55 50 25 0 2000 2001 2002 2003 2004 2005 Free Cash Flow $103 $42 $77 $48 $90 $51 *Adjusted to add back share based compensation Fin
Slide 73: Purchase Price Accounting Distorts Economic Balance Sheet
Purchase Price Accounting Distorts Economic Balance Sheet Total Other Shareholders' Liability Debt/Total Assets Debt LIA Equity Plus SE Capitalization June '04 $759 $0 $223 $536 $759 June '05 1,705 681 433 591 1,705 53.5% Eliminate Cash (34) (34) Eliminate Deposit & Back-To-Back (400) (400) 1,271 24
Slide 74: Back-to-Back Loan
Back–to –Back Loan Objective: Cash Movement Structure: $400 million Israeli loan @ $5.025% or $20.1 million - interest expense $400 million USA deposit @ $4.900% or $19.6 million - interest income Annual cost $500 thousand If deposit returned, debt is repaid If debt is repaid, deposit is returned Re
Slide 75: Debt Components
Debt Components Estimate June Interest 2005 Interest Rates Expense Bank term loan $100 * $150 Fixed @ 4.77% notional $9 Bank revolver 115 * 65 Variable @ 3.3 - 3.9% in FY 2005 3 215 Debentures Israel 41 41 Fixed@5.6% annual rate 2 Long term 256 256 Short term 25 25 U.S. swingline plus Germany, UK 1
Slide 76: EBITDA And Credit Ratios
EBITDA And Credit Ratios Fiscal 2005 Net Income ($353) IP R&D and Non-recurring Adjustments 426 Subtotal 73 Depreciation & Amortization 35 Taxes 22 Share-based Compensation 8 Interest 3 Estimated EBITDA $141 Estimated Proforma EBITDA $185 Debt $281 Estimated Interest $15 Debt/EBITDA 1.5 Interest Cov
Slide 77: Tax Facts
Tax Facts Historical Rates Fiscal 2003 36% Fiscal 2004 36% Fiscal 2005 34% (excluding one-time purchase price accounting adjustments) Projected Israel Statutory Rates Fiscal 2006 31% Fiscal 2009 27% Fiscal 2007 29% Fiscal 2010 25% Fiscal 2008 28% US Manufacturing Credit Phased In Over Fiscal 2006 -
Slide 78: Future Tax Rate Impacts
Future Tax Rate Impacts • U.S. Manufacturing credit • Move to a Pharmaceutical “Best Practices” structure – Increased non-US operations • Israel Enterprise Benefits • Asian Activities (China and India) – Transfer pricing strategies • Net result, lower tax rates Fiscal 2006 34% - 33% Fiscal 2007 34%
Slide 79: Sarbanes-Oxley 404 Plan – ex-Agis Entities
Sarbanes-Oxley 404 Plan – ex-Agis Entities Perrigo FY 06 Q1 FY 06 Q2 FY 06 Q3 FY 06 Q4 Location New York & System conversions 404 compliant Germany Deploy corporate policies System conversions and deploy IT infrastructure controls 302 compliant Israel Focus on financial statement close process contr
Slide 80: Financial Plan Summary
Financial Plan Summary • Leverage target: Debt to EBITDA less than 3.0 (maintains investment grade) • Fixed vs. Floating interest: 60:40 (presently 70:30) • Cash utilization: – Reinvest in the businesses – Strategic acquisitions – Income to shareholders (dividend) – Dilution reduction • Business str
Slide 81: Fiscal 2006 Outlook – Operating Basis
Fiscal 2006 Outlook – Operating Basis * Consumer Rx Healthcare Israel Consolidated Sales $1,000 $390 $1,390 Operating Income 105 42 147 Interest 15 Unallocated Expenses 20 Income Before Taxes $109 - $115 Taxes $37 - $39 Net Income $72 - $76 million EPS $0.74 - $0.78 * Excludes $(0.04) EPS impact of
Slide 82: Perrigo Sales and Earnings
Perrigo Sales and Earnings (See appendix for reconciliation to GAAP) (millions) Sales Net income 1,600 200 $1,391 1,400 1,200 150 $1,024 Net income 1,000 $898 $834 Sales $776 $835 800 $753 $72 -100 600 $71 $76 $63 $52 $45 400 $39 50 200 $15 CAGR 0 0 NS 9.2% Diluted EPS - 2000 2001 2002 2003 2004 200
Slide 83: Delivering Health Care Value
Delivering Health Care Value 1
Slide 84: Appendix I
Appendix I Brief bio of key managers: • David T. Gibbons, 62, has been a director of Perrigo since June 2000. He has served as the President and Chief Executive Officer of Perrigo since May 2000 and as Chairman of the Board since August 2003. He served as President of Rubbermaid Europe from August 1
Slide 85: Appendix I
Appendix I Brief bio of key managers (Continued): • Refael Lebel, 48, was named Executive Vice President and General Manager, Perrigo Israel in March 2005. He served as Agis’ Chief Executive Officer from August 2003 to March 2005 and was its Vice President and Chief Financial Officer from January 20
Slide 86: Reconciliation of Non-GAAP Measures
Table I PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited) Appendix Fiscal Year 2000 2001 2002 2003 2004 2005 Reported net sales $ 753,486 $ 763,085 $ 835,063 $ 834,100 $ 898,204 $ 1,024,098 PPA product discontinuation - 12,500 - - - - Adjusted n
Slide 87: Purchase Price Accounting Distorts "Real" Balance Sheet
Purchase Price Accounting Distorts “Real” Balance Sheet Elimination June June Back-to- Adjusted IP Adjusted 2004 2005 Cash Back 2005 R&D 2005 Cash Equivalent $258 $34 ($34) $0 $0 Current Assets 214 575 575 575 Net PP&E 228 324 324 324 Goodwill 36 150 150 150 IP R&D - - - $387 387 Intangibles 4 148 1