Perrigo Company plc · NYSE:PRGO
Perrigo — Q2 FY2012 Earnings Presentation
24 slides from Perrigo's earnings presentation, Feb 7, 2012
Slide 1: Perrigo Fiscal 2012 Second Quarter Conference Call
Perrigo Fiscal 2012 Second Quarter Conference Call February 7, 2012 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: Corporate Overview
Corporate Overview Quality, Affordable Healthcare Products 125 Years of Keeping Quality and our Customers First 1887 - 2012 1887 1985 2005 2009 2012 98 20 4 3 Years Years Years Years Luther Exceeds $1 Billion $2 Billion $3 Billion Perrigo $100 Million in annual in annual in annual sells mark in annu
Slide 4: Perrigo Consolidated – Q2 FY 2012 GAAP Financials
Perrigo Consolidated – Q2 FY 2012 GAAP Financials From Continuing Operations Q2 2012 Q2 2011 % Change Y/Y ($ in millions, except per share amounts) Net Sales $ 838 $ 718 17% Cost of Sales 543 468 16% Gross Profit $ 295 $ 250 18% Distribution 9 9 3% R&D 31 25 27% SG&A 94 84 12% Operating Income $ 161
Slide 5: Perrigo Consolidated – Q2 FY 2012 Adjusted Financials
Perrigo Consolidated – Q2 FY 2012 Adjusted Financials* From Continuing Operations % Change Change as Q2 2012 Q2 2011 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 838 $ 718 17% Adjusted Cost of Sales 530 461 15% Adjusted Gross Profit $ 308 $ 257 20% 90 bps Distribution 9 9 3
Slide 6: Net Sales Performance by Segment – Adjusted Financials
Net Sales Performance by Segment – Adjusted Financials* From Continuing Operations ($ in millions) Q2 2012 Q2 2011 % Change Y/Y Consolidated Perrigo $ 838 $ 718 17% Adjusted Operating Income 179 145 24% Consumer Healthcare 471 430 10% Adjusted Operating Income 79 77 3% Nutritionals 128 133 (4%) Adju
Slide 7: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 6.0% Total OTC & VMS* 0.0% 1.8% 8.0% Total OTC -2.0% 1.1% 7.1% Analgesics -5.5% -0.8% 11.2% Cough, Cold, Allergy, Sinus -0.5% 2.7% 10.9% Gastrointestinal -4.8% -0.2% 1.5% Smoking Cessation -0.2% 0.7% -2.8% Vitamins (*VMS) 7.3% 4.6% 0
Slide 8: Consumer Healthcare Segment – Adjusted Financials
Consumer Healthcare Segment – Adjusted Financials* From Continuing Operations Change as a % Q2 2012 Q2 2011 % Change Y/Y ($ in millions) to sales Net Sales $ 471 $ 430 10% Adjusted Cost of Sales 324 292 11% Adjusted Gross Profit $ 147 $ 138 6% (90) bps Adjusted Operating Expenses 67 61 11% Adjusted
Slide 9: Nutritionals Segment – Adjusted Financials
Nutritionals Segment – Adjusted Financials* From Continuing Operations Change as a % Q2 2012 Q2 2011 % Change Y/Y ($ in millions) to sales Net Sales $ 128 $ 133 (4%) Adjusted Cost of Sales 96 85 13% Adjusted Gross Profit $ 32 $ 49 (33%) (1,110) bps Adjusted Operating Expenses 19 23 (15%) Adjusted Op
Slide 10: Rx Segment – Adjusted Financials
Rx Segment – Adjusted Financials* From Continuing Operations Change as a % Q2 2012 Q2 2011 % Change Y/Y ($ in millions) to sales Net Sales $ 177 $ 98 82% Adjusted Cost of Sales 76 51 51% Adjusted Gross Profit $ 101 $ 47 114% 870 bps Adjusted Operating Expenses 20 11 79% Adjusted Operating Income $ 8
Slide 11: API Segment – Adjusted Financials
API Segment – Adjusted Financials* From Continuing Operations Change as a % Q2 2012 Q2 2011 % Change Y/Y to sales ($ in millions) Net Sales $ 43 $ 40 6% Adjusted Cost of Sales 22 22 (2%) Adjusted Gross Profit $ 21 $ 18 16% 410 bps Operating Expenses 8 8 11% Adjusted Operating Income $ 13 $ 11 19% 33
Slide 12: Perrigo Increases Lower End of Consolidated FY12 Guidance
Perrigo Increases Lower End of Consolidated FY12 Guidance* From Continuing Operations FY 2012 Guidance Updated FY 2012 Guidance Updated FY 2012 Guidance 8/16/11 Conference Call 10/27/11 Conference Call 2/7/12 Conference Call CONSOLIDATED PERRIGO Revenue Growth Y/Y 15% - 18% 17% - 20% 17% - 20% Adjus
Slide 13: Perrigo Reiterates FY12 Segment Guidance
Perrigo Reiterates FY12 Segment Guidance* From Continuing Operations FY 2012 Guidance Updated FY 2012 Guidance Reiterated FY 2012 Guidance 8/16/11 Conference Call 10/27/11 Conference Call 2/7/12 Conference Call CONSUMER HEALTHCARE Revenue Growth Y/Y 12% - 14% 12% - 14% 12% - 14% Adjusted Gross Margi
Slide 14: Growth FY12 and Beyond – Consumer Healthcare
Growth FY12 and Beyond – Consumer Healthcare Publicly disclosed products Across all segments, we expect to launch >45 new products, resulting in >$190M of revenue in FY 2012 Potential Rx to OTC switches • $10B in branded sales potential over the next 5 years Second Half FY12 Expected Launches Brande
Slide 15: Growth FY12 and Beyond – Rx
Growth FY12 and Beyond – Rx Publicly disclosed products 37 ANDAs Pending FDA approval • ANDAs represent $4B in branded sales • 8 confirmed first-to-file ANDAs 5 Paragraph IV litigations 5 projects in clinical studies Rx Pipeline Highlights Branded Sales ($M) Generic version of Duac® Gel $141 Generic
Slide 16: Questions / Appendix
Questions Appendix 16 Quality, Affordable Healthcare Products
Slide 17: Table I
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table I (in thousands, except per share amounts) (unaudited) Three Months Ended Consolidated December 31, 2011 December 25, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 838,170 $
Slide 18: Table II
PERRIGO COMPANY REPORTABLE SEGMENTS Table II RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Consumer Healthcare December 31, 2011 December 25, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 471,277
Slide 19: Table II (Continued)
PERRIGO COMPANY REPORTABLE SEGMENTS Table II (Continued) RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals December 31, 2011 December 25, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sale
Slide 20: Table III
PERRIGO COMPANY FY 2012 GUIDANCE AND FY 2011 EPS Table III RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance* FY12 reported diluted EPS from continuing operations range $3.90 - $4.00 Deal-related amortization (1,2) 0.53 Charge associated with inventory step-up (2) 0.18 C
Slide 21: Table IV
PERRIGO COMPANY FY 2012 GUIDANCE Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance Consolidated Reported consolidated gross margin range 32.5% - 35.5% Deal-related amortization (1,2) 1.7% Inventory step-up (2) 0.8% Adjusted consolidated gross margin range 35% -
Slide 22: Table IV (continued)
PERRIGO COMPANY FY 2012 GUIDANCE Table IV (continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance Nutritionals Reported gross margin range 28.1% - 30.1% Deal-related amortization (1) 2.9% Adjusted gross margin range 31% - 33% Reported operating margin range 7.4% -
Slide 23: Table V
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table V (in thousands) (unaudited) 12/31/2011 Total debt $ 1,492,546 Less: Cash and cash equivalents (531,410) Total net debt 961,136 Total shareholders' equity 1,630,811 Total capital $ 2,591,947 Net debt to total capital ratio 37.1% Consolidated
Slide 24: Table VI
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table VI (in thousands) (unaudited) Three Months Ended Change Consolidated December 31, 2011 December 25, 2010 $ % Net sales, as reported $ 838,170 $ 717,515 $ 120,655 17% Less: Paddock acquisition (68,552) - (68,552) - Net sales, organic $ 769,618