Perrigo Company Plc · NYSE:PRGO
Perrigo — Merger or Acquisition (May 2015)
48 slides from Perrigo's merger presentation, May 5, 2015
Slide 1: Mylan's Q1 2015 Earnings and Offer to Acquire Perrigo
Filed by Mylan N.V. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rules 14a-12(b) and 14d-2(b) of the Securities Exchange Act of 1934 Subject Company: Perrigo Company plc Commission File No. 001-36353 Mylan’s Creating May 5, 2015 Q1 a one-of-a-kind 2015 Earningsg
Slide 2: Legal
Legal IRISH Mylan‘s have RESPONSIBILITY The relating information taken DEALING relevant offer be Under must A Interests virtue Terms Rule Goldman no 2with disclosure aone directors single the not 8, period‘ also all Matters of in the LAW else please to securities‘ securities‘) proposed offer in reas
Slide 3: Legal: Additional Information
Legal ADDITIONAL In an Mylan CAREFULLY INFORMATION 724-514-1813 A website PARTICIPANTS deemed statement/prospectus 2015 be This NON-SOLICITATION (2) communication shall FURTHER The otherwise the jurisdiction. TRADEMARK All and/or 3names copy connection offer different the laws trademarks, distributi
Slide 4: Legal: Forward-Looking Statements
Legal FORWARD-LOOKING This Act Mylan‘s —Abbott Mylan‘s, and forecast,? differ Proposal, satisfied, could Transaction; being clients, Perrigo large sell ability the personnel; risks, control GAAP Form in through 4Mylan guidance. the ability products, ofcommunication targets competitor and 10-K materi
Slide 5: Legal: Non-GAAP
Legal NON-GAAP This percentage investors‘ addition, its investors also currency We comparison third-party forth encouraged GAAP NO To Takeover sentence, less SYNERGY There Synergy announcement greater The 5respective financial the routinely PROFIT than Synergy report communication inMatters are exte
Slide 6: Agenda
Q1Highly Agenda Perrigo Mylan 6A 2015+Deal Perrigo: Earnings Compelling Strategic Redefining Offer Rationale the Delivery of Global Healthcare
Slide 7: Q1 Mylan Generics
Q1 Mylan Generics: $1,500 $2,000 +15% Revenue $1,000 0T +8% $500 +12% +33% *Total constant 7financial otal 2015 North Mylan delivered +8% currency Highlights measures. Q1 +15% American Q1 2015 growth 2014 solid basis. Source: reflects $European Q1 in Constant performance millions Mylan theRest quart
Slide 8: Abbott's Additional Highlights
•8Abbott‘s Additional Successfully Made Q1 2015 Integration non-U.S. good completed Highlights efforts developed progress the continue acquisition markets to progress on strategic of specialty growthwell and branded generics business drivers
Slide 9: Q1 2015 Financial Results and Guidance
$Q1millions, Total (30) Diluted *Adjusted **(cc) Adjusted measures. guidance 2015 bps Revenue refers EPS* Share EBITDA* Financial midpoints metrics Source: metrics except to$0.70 Count $1,872 constant and EPS Mylan Results $505 to 6% 444 constant 15% 2014 Q1 $4.00-$4.30 currency 10% 12% Q1 2015 (cc)
Slide 10: Agenda
•Agenda • Q1 10 2015 Perrigo Mylan A Highly Earnings +Deal Strategic Perrigo: Rationale Redefining Compelling Offer the Delivery of Global Healthcare
Slide 11: Mylan + Perrigo: Redefining the Delivery of Global Healthcare
•• Operational Mylan Integrated, Unprecedented, Well positioned One+manufacturing Perrigo: of Robust Immense global the Unmatched 70 for massive leverage Redefining pipeline reach commercial future industry’s and across quality, global across growth shared scale, sites the platform manufacturing bro
Slide 12: Transaction Aligns With and Expands Strategic Growth Drivers
Transaction + 12OTC Aligns With and Expands Strategic Growth Drivers
Slide 13: Transaction Benefits All Stakeholders
Transaction Customers and Patients high-quality Employees can Partners Shareholders Creditors Suppliers 13 invest larger, Better Enhances &scale more cost-advantaged Ability More Benefits Enhanced medicine Opportunity positioned and inopportunities to Mylan‘s employee significant All better in posit
Slide 14: Mylan: Track Record of Acquisition Execution
Mylan: Generics 2007 2006 2013Non-US Fully Track Delivered 1Disciplined 14Source: vertical record Proven and Mylan acquisition approach of specialty developed global Track achieving 2013operational Record to synergies Analyst pharmaceutical acquisitions markets andasexceeding Day of an platform spec
Slide 15: Mylan: Consistent Execution and Value Creation
Mylan: Total 11% $6.8 $7.7 $5.1 $6.1 2008* $4.7 17% $3.1 $1.9 $2.4 $1.0 $1.3 $1.4 $1.7 Adjusted 27% $4.15 2008 $0.80 $1.30 $1.61 $2.04 $2.59 $2.89 $3.56 Mylan 50% 23.8 30% S&P 10% 2financial 500 15Source: Pharmaceuticals” $6.9 $5.5 $2.0 % CAGR Mylan 500 2009 Revenue(1) 2009* 3-year 20% Consistent gu
Slide 16: Agenda
•Agenda • Q1 16 2015 Perrigo Mylan A Highly Earnings +Deal Strategic Perrigo: Rationale Redefining Compelling Offer the Delivery of Global Healthcare
Slide 17: Diversified and Differentiated Product Portfolio
•• Leadership Diversified Mylan‘s Perrigo and and Differentiated global boasts Significant critical market 6,000 front and mass Product in Perrigo’s portfolio unique back Gx, Portfolio Rxplus includes formulas presence and moreOTC with than 23,000 thousands in1,400 SKUs ofspecialty generic, worldwid
Slide 18: Mylan Robust Pipelines to Drive Growth
•1Mylan Robust Track Mylan (for More 269 31 record Pipelines 2014) than ANDAs Generic ANDAs Identified ofmore 3,700 success to Drive global pending Rx pending ANDA thanin Growth securing FDA FDA 30 filings pending approvals inapproval, Approvals3 newapproval, product regulatory positions including o
Slide 19: Shared Commitment to R&D
119 Shared Other Biologics Rx Products Extended Topicals In Perrigo 2 2015 to OTC Complex Commitment anticipates Mylan Source: Expansion Brandanticipates Respiratory OTC Mylan spending to R&D Midpoint2015 spending of~$150 guidance to Build range million approximately Future presentation given atper
Slide 20: Unprecedented Global Manufacturing Platform
Unprecedented Virginia, Ohio, Michigan Ireland Brazil Footprint 1Quality 20 AddsVermont Australia 31 Israel Reliability West of Poland for70 Mylan Perrigo Virginia, U.K. Global manufacturing Japan Flexibility China (source: Manufacturing Minnesota Texas sites Perrigo: France Hungary around Platform
Slide 21: Difficult to Replicate Global Platform
Difficult Massive Quality, Proven Broad 1Diverse (source: 21Addscapabilities 50 ability and scale, Mylan: global tobillion Replicate complex to flexibility scale prospectus manage oral including and Global technology solid and infrastructure thesupplement dosage/year active Platform global vertical
Slide 22: Unique Combined Consumer-Focused Platform
Unique Combined ~ ™ 21Experienced is Wartner 76% Source: Jungle a trademark ofConsumer USA FormulaTM Perrigo’s Perrigo: organization commercial B.V. of Chefaro Investor Focused product XLSis boasts aMedicalTM platform trademark Ireland portfolio presentation Global broad Ltd. enhanced Platform is of
Slide 23: Unmatched Retail and Customer Channel Reach
•switches(1) Unmatched Retail Differentiated Pharmacy acrossOperational & •services 1need Wholesalers PowerfulAbility Opportunity for and Aligned Supply leverage to channels—selling platform meaningful with Source: scale and Governments Deliver Broad tomacro and leverage Barclays Product critical fo
Slide 24: Significantly Broader Geographic Reach
•• Significantly Broad Geographic Brings Significant Leverages Assets from Complements de-risks Reach, Perrigo‘s opportunity Mylan‘s Abbott Perrigo’s Providing productsto recent brought Omega‘s OTCto global manyPerrigo optimize new acquisition Mylan an expansion with markets platforms from salesforc
Slide 25: Strengthened North America Offering
•• Unique Strengthened Adding Perrigo’s value Northlarge proposition America Gx OTC and productOffering through complementary diversity and generics breadth portfolios of portfolio to Mylan’s that spansextensive, Gx, Rx existing and OTC product offering and commercial organization will transform how
Slide 26: Operational Synergies
Operational •Total COGS and R&D •Sales 26 1The Operational Rules Operational Source: synergy by AsSynergies Vertical Limits enhanced Run-rate & (i) the efficiencies • Distribution Synergies integration Overlapping need expected product estimate stated Irish Accelerate in•for R&D firm wasand Mylanof
Slide 27: Combined Strong Financial Profile
•• Combined Strong Financial Substantial Transaction enterprise Approximately At least US$800 Achievable Profile free isfor by cash accretive $15.3 the expected flow million end toof billion of drivingto2014 adjusted maintain rapid inrevenue annual EPS pro on pre-tax investment deleveraging a fully
Slide 28: Agenda
•Agenda • Q1 28 2015 Perrigo Mylan A Highly Earnings +Deal Strategic Perrigo: Rationale Redefining Compelling Offer the Delivery of Global Healthcare
Slide 29: Highly Compelling Mylan Offer
Highly significant Mylan $75 Values Perrigo EBITDA1 21Committed Proinforma Fully cash Offer raised Perrigo attractive diluted shareholders cash offer and for isitsat ownership aPerrigo’s in-hand 2.3 offer Highly with formal $232.23 Mylan will to clear +acquire Compelling offer own recent was per ong
Slide 30: Clear Path to Completion
••Process Clear Mylan Filed Legally Offer Rule and is Committed Mylan fully Started has Certain 2.5 Customary is Preparing Mylannot binding has committed announcement financing made Path already conditional required tender Confident commitment conditions shareholder in to to secure ability toComplet
Slide 31: Investors Strongly Supportive of Combination
Investors April 125% Price 115% Perrigo 120% Inde 1-Apr-2015 95% 100% 105% Daily Mylan Source: 31 xe d8: from Perrigo 110% Bloomberg Mylan Strongly 01-Apr-2015 4-Apr-2015 S&P Announcement Supportive as 500of7-Apr-2015 to 10-Apr-2015. 10-Apr-2015 of ofCombination Proposal 10-Apr-2015 to Acquire
Slide 32: Third-Party Analyst Commentary
Third-Parties “From companies spaces. could year “And “We unique “behind “Complementary compelling MYL’s 54321–“These Wells Jimglobalization Bank Barclays, Deutsche UBS, believe we Cramer result avalue strengths two Therefore, of “Mylan Fargo, the business see America with Bank, “U.S. portfolio: wou
Slide 33: Cash Plus Mylan Shares: EPS Accretion
•33 Cash Perr $7.75¹ Mylan +32% EPS $75 Perrigo If Perrigo Plus the 21midpoint Includes guidance shares Source: per Perrigo to Substantial standalone Mylan/ Increase per +Perrigo Today Perrigo Share $800mm Perrigo ranges of Perrigo: Based Perrigo Perrigo’s goCash Adjusted is+expected Perrigo Shareho
Slide 34: Precedent Transactions and Perrigo Valuation
How Perrigo …But Transaction (USD) $+15% Price Closing 6-Apr Selected Size Date 5-Feb-15 17-Nov-14 6-May-14 Leerink Source Mylan Implied 1Source: profit lesser -2015; 2MYL The 73 Announced 63 58 JPMLTM Transaction Does Still forecast than information 7-Apr the assumes Bernstein, Share $DB Claims Blo
Slide 35: Compelling Choice for Perrigo Shareholders
Immediate Attractive Participation A Clear Proven 35powerful Choice and execution certain and Value, global in for highly continued Perrigo path by Powerful platform, Mylan compelling andShareholders growth timetable Long-Term leadership de-risking cash of to stronger and team closing Perrigo’s Grow
Slide 36: Proven Track Record Executing Strategy
Proven at Adjusted 2008-2015 2008 Non-US Next 1. calculated 2. 36 least Source: Stated 2007 2009 Track developed 2018 diluted based Mylan 2010 adjusted Record target; 2012 2011 on EPS prospectus markets 2008 diluted Executing long-term growth1 2015 2012 – 2015 $4.15 2015 2013 specialty supplement $6
Slide 37: Appendix
Appendix
Slide 38: Reconciliation of Non-GAAP Metrics
Reconciliation Below N.V. (Unaudited; GAM>net Purchase Interest NorKaSh Clean Acquisition Restructuring expense) Cost Research Tax Adjusted a. e<pense Throe s2015 144.0 17.7 12.2 9.2 22.5 78.8 8.0 17.9 7.8 7.0 $(72.6) 443.8 3856.6 309.1 MJustment 8.4 10.3 19.4 (3.0) effect 3.1 10.9 19.4 23.4 0.9 and
Slide 39: Reconciliation of Adjusted EBITDA
Reconciliation Belowis (Unaudited; March 2015 GAAP Net Income Interest Depreciation EBITOA Add SharEH>asedcompensation Litigation Restructuring Adjusted 39 contrlbuuon aadlllstmen1S: compared 2014 stments: 31, not taxes expense a$EBITDA settlements,net reconcil earnings 340.5 USD and 4.7 &ofto 79.5
Slide 40: Reconciliation of Adjusted Gross Profit
Reconciliation a. (Unaudited; March 2015 Purchase (140.2) 53% 8.1% $GAAP Acquisition Deduct (66.5) Restructuring Adjusted 21.8% 40990.6 169.9 483.2 Adjusted 50% 2014 6.8% (5.8) 20.5% 31, eost R&D SG&A (99.9) $ accounting cost gross R&D SG&A 865.6 118.0 377.7 gross of related USD & of sale of profrt
Slide 41: Reconciliation of Cash Flow and Tax Metrics
Reconciliation (Unaudited; Ma 2015 Pr&-la.X P\Jn:hase Litigallon Interest Resuucturing Tax Adfusted $GAAP Acquisition Add: 268 R&D Adjusted Olh« 41267 nths •“oct 2014 expense s net pre.-tax Income expense. Endod pre-tax income cash e“ectlve tossrelated of accoonUng settlements. cash related USD edju
Slide 42: Segment Summary
Summary 1. (Unaudited; March 2015 Constant Generics: North Europe Rest Generics Third Specialty: Other Totalthird lntersegment Specialty Elimination Consolidated 2.01.7218.6202.8 1,515.8 1,656.6 1.3 1.5 42 Theof 2014 party third America constant 31, Wood 406.2 total total of party Percent Actual par
Slide 43: Reconciliation of Revenue
Reconciliation (Unaudited; 2014 revenue GAAP to — tax 43 the — —Interest income 2013 clean 385 pre-tax —Litigation 2012 — $energy USD 1,893 expense, — income of2011 Non-GAAP — ininvestments $millions) — settlements, 1,523 2010 (loss) primarily (29)$2009 —Restructuring $1,466 Year Metrics 975 79 accr
Slide 44: Reconciliation of Adjusted Diluted EPS
Reconciliation (Unaudited; 2014 (432) GAAP interest (earnings) Diluted Adjusted 44 2013 (260) (earnings) $shares pre-tax diluted (4) loss 2012 (216) USD $ 398 of (3) attributable 2011 earnings income Non-GAAP loss (198) in $394 (2) millions) 2010 attributable 420 (253) $$—per 1,893 to2009 439 $the s
Slide 45: Reconciliation of 2015 Guidance
Reconciliation The December restructuring unknown. earnings Twelve GAAP accretion income 45 reconciliations net Months tax per of These 31, earnings related contingent share programs 2015. ofEnded GAAP Non-GAAP data. items below and Mylan December that consideration diluted amounts (245) are would e
Slide 46: Reconciliation of 2015 Cash Flow Guidance
Reconciliation Income 260 Twelve (Unaudited; payments 46 Other Months taxes 20 expense, USD 30 245 ofEnded Other Non-GAAP in 300 net millions) Interest (43) 20 45 (53) Adjusted Metrics December expense Adjusted 285 EBITDA 31, cash 335 2015 provided Depreciation $ Lower 2,900by $Upper 3,300 operating
Slide 47: Reconciliation of Adjusted EBITDA
Reconciliation (Unaudited; 2014 to amortization, expense 286 47 the307 2013 noncontrolling 66 1762012 47 USD 84 including 43 of118 2011 Non-GAAP 42 in 49 millions) 31 interest 2010 157 product 31 31 Adjusted 2009 and Year Metrics Bystolic and 2008 equity Ended IPR&D EBITDA GAAP revenue method Decemb
Slide 48: Mylan: Seeing is believing
Mylan Seeing is believing