fourth quarter and full year 2017 earnings … · fourth quarter and full year 2017 earnings...

FOURTH QUARTER AND FULL YEAR 2017 EARNINGS CONFERENCE CALL

FEBRUARY 6, 2018

Allergan Cautionary StatementsForward Looking Statements

2

This communication includes statements that refer to estimated or anticipated future events and are forward looking statements. We have based our forward looking statements on management’s beliefs and assumptions based on information available to our management at the time these statements are made. Such forward looking statements reflect our current perspective of our business, future performance, existing trends and information as of the date of this filing. These include, but are not limited to, our beliefs about future revenue and expense levels and growth rates, prospects related to our strategic initiatives and business strategies, including the integration of, and synergies associated with, strategic acquisitions, express or implied assumptions about government regulatory action or inaction, anticipated product approvals and launches, business initiatives and product development activities, assessments related to clinical trial results, product performance and competitive environment, and anticipated financial performance. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “intend,” “could,” “would,” “should,” “estimate,” “continue,” or “pursue,” or the negative or other variations thereof or comparable terminology, are intended to identify forward looking statements. The statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. We caution the reader that these statements are based on certain assumptions, risks and uncertainties, many of which are beyond our control. In addition, certain important factors may affect our actual operating results and could cause such results to differ materially from those expressed or implied by forward looking statements. These factors include, among others the inherent uncertainty associated with financial projections; the anticipated size of the markets and continued demand for Allergan’s existing products; Allergan’s ability to successfully develop and commercialize new products; Allergan’s ability to conform to regulatory standards and receive requisite regulatory approvals; availability of raw materials and other key ingredients; uncertainty and costs of legal actions and government investigations; fluctuations in Allergan’s operating results and financial condition, particularly given our manufacturing and sales of branded products; the impact of uncertainty around of timing of generic entry related to key products, including Restasis ®, on our financial results; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected cost reductions, projected synergies, restructurings, increased costs, and adverse tax consequences; expectations regarding contingent payments, including regarding litigation and related liabilities, purchase price adjustment or transaction consideration payments; the results of the ongoing business following the completion of the divestiture of Allergan’s generics business to Teva; the adverse impact of substantial debt and other financial obligations on the ability to fulfill and/or refinance debt obligations; risks associated with relationships with employees, vendors or key customers as a result of acquisitions of businesses, technologies or products; our compliance with federal and state healthcare laws, including laws related to fraud, abuse, privacy security and others; generic product competition with our branded products; uncertainty associated with the development of commercially successful branded pharmaceutical products; costs and efforts to defend or enforce technology rights, patents or other intellectual property; expiration of patents on our branded products and the potential for increased competition from generic manufacturers; competition between branded and generic products; Allergan’s ability to obtain and afford third-party licenses and proprietary technology we need; Allergan’s potential infringement of others’ proprietary rights; our dependency on third-party service providers and third-party manufacturers and suppliers that in some cases may be the only source of finished products or raw materials that we need; Allergan’s competition with certain of our significant customers; the impact of our returns, allowance and chargeback policies on our future revenue; successful compliance with governmental regulations applicable to Allergan’s and Allergan’s respective third party providers’ facilities, products and/or businesses; the difficulty of predicting the timing or outcome of product development efforts and regulatory agency approvals or actions, if any; Allergan’s vulnerability to and ability to defend against product liability claims and obtain sufficient or any product liability insurance; Allergan’s ability to retain qualified employees and key personnel; the effect of intangible assets and resulting impairment testing and impairment charges on our financial condition; Allergan’s ability to obtain additional debt or raise additional equity on terms that are favorable to Allergan; difficulties or delays in manufacturing; our ability to manage environmental liabilities; global economic conditions; Allergan’s ability to continue foreign operations in countries that have deteriorating political or diplomatic relationships with the United States; Allergan’s ability to continue to maintain global operations and the exposure to the risks and challenges associated with conducting business internationally; risks associated with tax liabilities, or changes in U.S. federal or international tax laws to which we are subject, including the risk that the Internal Revenue Service disagrees that Allergan is a foreign corporation for U.S. federal tax purposes; risks of fluctuations in foreign currency exchange rates; risks associated with cyber-security and vulnerability of our information and employee, customer and business information that Allergan stores digitally; Allergan’s ability to maintain internal control over financial reporting; changes in the laws and regulations, affecting among other things, availability, pricing and reimbursement of pharmaceutical products; the highly competitive nature of the pharmaceutical industry; Allergan’s ability to successfully navigate consolidation of our distribution network and concentration of our customer base; the difficulty of predicting the timing or outcome of pending or future litigation or government investigations; developments regarding products once they have reached the market; risks related to Allergan’s incorporation in Ireland, such as changes in Irish law and such other risks and other uncertainties detailed in Allergan’s periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan’s Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, and from time to time in Allergan’s other investor communications. Except as expressly required by law, Allergan disclaims any intent or obligation to update or revise these forward-looking statements.

Non‐GAAP Financial MeasuresThis document contains non‐GAAP financial measures. The Appendix hereto presents reconciliations of certain non‐GAAP financial measures to the most directly comparable GAAP measures. The non‐GAAP measures include non-GAAP

performance net income, non-GAAP performance net income per share, adjusted EBITDA, non-GAAP operating income and other non-GAAP financial statement line items.

The Company believes that its non-GAAP measures provide useful information to investors because these are the financial measures used by our management team to evaluate our operating performance, make day to day operating decisions, prepare internal forecasts, communicate external forward looking guidance to investors, compensate management and allocate the Company’s resources. We believe this presentation also increases comparability of period to period results.

The Company’s determination of significant charges or credits may not be comparable to similar measures used by other companies and may vary from period to period. The Company uses both GAAP financial measures and the disclosed non-GAAP adjusted financial measures internally. These non-GAAP adjusted financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

Agenda

Q4 and FY 2017 HighlightsBrent Saunders, Chairman & CEO

Commercial HighlightsBill Meury, Chief Commercial Officer

R&D UpdateDavid Nicholson, Chief R&D Officer

Q4 2017 Financial ResultsTessa Hilado, Chief Financial Officer

1

2

3

4

Q&A5

3

BRENT SAUNDERSCHAIRMAN & CEO

2017 Was a Pivotal Year Marked by Strong Execution:

Drove strong revenue growth1 +9.4%

EXECUTION2017 Priority

Entered & grew Regenerative Medicine and CoolSculpting® business

Submitted 17 major dossiers; Achieved 15 major approvals

Completed $15B share repurchase program + $2B authorized repurchase program in progress; initiated quarterly dividend; paid net debt of $2.9B

Managed expenses to maintain profit margins

Launched 12 new products

1. FY 2017 versus prior year. Includes ALLODERM® STRATTICETM and CoolSculpting®

Advanced all 6 Stars into Phase 3; Filed ESMYA® NDA

5

Strong Q4 and FY 2017 Performance

6

$4.3B

+12% vs Q4 ’16

$4.86

+25% vs Q4 ’16

50.3%

$15.9B

+9% vs FY’16

$13.51

+2% vs FY’15

$7.65B

48.0%

Q4 2017

Non-GAAPAdjusted Operating

Income and Operating Margin

Non-GAAPPerformance Net Income per Share

Total Net Revenues

$16.35

+21% vs FY’16

FY 2017

Please refer to the GAAP to non-GAAP tables in the appendix for a reconciliation of our non-GAAP results

$2.0B

$5.9B

Cash Flow from Operations

$2.17B

7

FY 2017 Revenue Performance Drivers

7

1 Includes new product launches. Experienced 22% YoY growth and 13% YoY growth excluding Regenerative Medicine & CoolSculpting. 2 Includes established brands, all other product revenues and other revenues. Experienced 6% YoY growth. 3 Includes brands with patent expiration and/or risk of generic competition in 2017-2020. Refer to Table 13 in the appendix.

Durable growth with mid-single digit outlook✓ 12% excluding Regenerative Medicine & CoolSculpting✓ 42% Cash Pay + Botox Rx

Promoted Brands & Brands With Ongoing

Exclusivity1

$10.9B

Outlook: High single digit organic growth

Other Product Revenues2

$2.0B

$12.9B81% of FY 2017 Revenue

Outlook: Flat to single digit decline

• 19% of FY 2017 Revenues

✓ Includes Restasis and Aczone

• Outlook: Declining as per LOE exposure

Brands Facing LOE Risk3

$3.0B $15.9B

Total 2017 AGN Net Revenues

9.4% FY 2017 Revenue Growth

(+4.0% ex-Regenerative Medicine & CoolSculpting)

BILLMEURYCHIEF COMMERCIAL OFFICER

Strong Q4 Performance From Key Growth Drivers Partially Offset by Decline From Products Losing Exclusivity

9

1. 11.1% growth excluding FX and Namenda IR. 2. Includes Viberzi, Vraylar, Namzaric, Kybella, Xen, True Tear and Rhofade.

($M)

4,32612%1

+$462M YoY

3,864

14%

21% -1%

-61%

-3%

-38%-31%

71%

12%

18% 17%

5%

1%0%

2%

16%

-1%

256

118

82

50

2219 13 12 3 3 0

2 2 2 223

4394

16

36

Q4’16Rev

-1%

Q4’17Rev

10

US Medical Aesthetics: Growth Fueled Across 3 Pillars

FacialAesthetics

Plastics /Regenerative Medicine

Growth driven by two new premium Inspira implant launches in 2017. Unit mkt share at an all-time high

Increased share of voice from expanded hospital sales force post LifeCell acquisition

Alloderm continues to exceed expectations driven by pre-pec penetration

Botox and Juvederm lines continued to show strong and durable growth

Juvederm Collection share at all time high with successful launch of Vycross premium fillers

Body Contouring

Business is accelerating with 3,300 accounts at YE

System placements at all time high

Overall mix shift towards consumables: 56% FY’16 61% FY’17

+14% +15% +21%

Q4’17 Growth Y/Y Q4’17 Proforma Growth Y/Y Q4’17 Proforma Growth Y/Y

age

Expanding our Filler Line Beyond Juvederm

11

We lose 1% of our youth proteins every year after age 20

Parks, WC, et al. (1993). Adv in Molecular and Cell Bio. 6:133-181Waller, JM & Maibach, HI. (2006). Skin Research and Tech. 12: 145–154

Vycross

RejuvecrossTM

The first in a new generation of AGN fillers intended to provide rejuvenation through the addition of tropoelastin(precursor of elastin)

Combination of Low and High Molecular weight HA uniquely formulated for specific areas of the face

First filler proven to last up to 1 year,

smooth formulations

Hylacross

✓ HA, collagen and elastin work together to create skin strength, firmness, shape and quality

• Allergan is working on innovative combinations with HA that will represent an even more complete solution for healthy youthful skin

✓ AGN entered agreement to acquire Elastagen in February 2018 for ~$95M upfront plus contingent milestones

CNS: Vraylar & Botox Tx Drivers of Sustainable Growth

12

• 16% Q4 growth vs prior year, ex Fx, and 14% FY 2017 growth vs. 2016, ex Fx

• Still highly underpenetrated

• Toxin with most therapeutic indications (9 indications)

Continues to Exceed Expectations with

Blockbuster Potential

Celebrating 30 years in the Market with

Sustainable Double Digit Growth

• Unique profile with long-term revenue stream built on multi-indication strategy

• Fastest growing anti-psychotic brand, with double digit volume growth in every quarter and tripled net sales from launch year to reach $288M

Revenue growth refers to non-GAAP

Source: Vraylar: IMS weekly NPA, updated through week ending 01/12/17

Therapeutic

Chronic Migraine Adult

Spasticity

Cervical Dystonia/

Other

OAB/ NDO

~6% penetration

~2% penetration

~3% penetration

Vraylar TRX

0

2,000

4,000

6,000

8,000

10,0003Q16

+127%4Q16+40%

1Q17+18%

2Q17+19%

3Q17+14%

4Q17+13%

Source: US census data and Allergan internal data

GI: Anchored by IBS

13

Constipation DiarrheaIBS• TRx volume has stabilized since the contraindication

and we see positive signals in Primary Care

• Primary Care represents 90% of new writers and is expected to grow in 2018

VIBERZI TRXWeekly TRX – launch aligned

• Reaching $700M in 2017

• Broad Formulary Access Advantage

• DTC Effectiveness Drives OTC switches

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

LINZESS (12/14/12) Amitiza (4/21/06) Trulance (3/24/17) 72mcg LINZESS (3/17/17)

Source: IMS weekly data

3,500

4,000

4,500

5,000

5,500

Stabilization of TRx

Gall Bladder Contraindication

Eye Care: >$2B Global Franchise Beyond Restasis

14

• Maintained stable revenues for Restasis throughout 2017 (-1% decline vs PY)

• Took cost initiatives to right-size the organization in light of LOE

• $480M durable, cash pay eye drop business

• Maintained category leadership with stable growth in US and International

• Shifting treatment to drop-less therapy with Xen and pipeline

• Double digit growth continues in US and International

• Pipeline focus to shift retina paradigm treatment with Abicipar

Dry Eye Glaucoma Retina

Source is IMS Rx Audit (NPA)

STRONG Q4 GROWTH IN EVERY REGION ANCHORED BY MEDICAL AESTHETICS & EYECARE

Sustained International Double Digit Revenue Growth

15

Growth rates in charts reflect Q4 2017 growth versus prior year excluding FX impactLACAN: Latin America and Canada. APAC / MEA: Asia Pacific / Middle East and Africa

Europe

+10%

LACAN

+16%

APAC+MEA

+25%

✓ Fast growing countries:

• APAC+MEA; China +69%, South Korea +23%

• LACAN; Brazil +15%, Canada +14%

• Europe: Turkey +22%; Germany +13%

✓ Botox Cx & Tx, Juvederm Collection of Fillers and Ozurdex key drivers of growth

$389M

33.1%

Q4’17 YoY growth

$343M

3.6%

Q4’17 YoY growth

20%

CxTx

28% 17% 11%

Q4’17 YoY growth:

DAVIDNICHOLSONCHIEF R&D OFFICER

Continue to Deliver on Our Pipeline in Q4

17

• Vraylar (Cariprazine) Schizophrenia Maintenance sNDA (US)

• BOTOX FHL (US)

• Ozurdex RVO (China)

• Avycaz HABP/VABP (US)*

• BOTOX CFL (China)

• 133 Plus Tissue expander (China)

• Microcell Implantable breast prosthesis and tissue expander (EU)

• Liletta contraception sNDAfor SHI 5-yr data (US)

• Viibryd (Vilazodone) GAD (Canada)

• Sarecycline Acne (US)

• Ubrogepant Phase 3 single attack migraine study ACHIEVE I positive topline results

• Cariprazine Bipolar Depression Phase 3 study RGH-MD-54 positive topline results

• RORΥT inhibitor for psoriasis Phase 2 study initiation

• Rapastinel Suicidality POC study initiation

4 Major Pharma and Device Approvals

6 Major Regulatory Submissions:

4 Major Milestones:

17

* Approval obtained on February 1, 2018

Advancing the Pipeline Beyond 6 Stars20182017

AtogepantProphylaxis migraine

Ph. IIb topline results

ESMYAUterine fibroids

FDA approvaland launch

CariprazineBipolar Depression

Positive Ph. III topline

Ph. III recruitment complete

UbrogepantAcute migraine

Ph. III topline results

RapastinelDepression

Ph. III on track

AbiciparAMD


Bimatoprost SRGlaucoma

Ph. III enrollment completion

RORyTPsoriasis

Ongoing Ph. II

BrazikumabCrohn’s

CVCNASH

Ph. III initiated

RelamorelinGastroparesis

Ph. III initiated

2019 2020

Launch

Launch

Launch

BotoxPlatysma/Masseter

Ph. III initiationAbiciparDME

Ongoing Ph. II

Pilo/OxyPresbyopia

Ph. IIb enrollment completion

Ongoing Ph. IIb/III

Ph. III short-term topline results


Launch

Ph. III initiation

BrazikumabUC

Ph. II initiation

Ph. III initiation

Ph. III initiation

Estimated timelines

18

Ph. II combination CVC/LJN452

Maintenance topline results

19

Ubrogepant Meets Co-Primary Endpoints and Demonstrates Increasing Efficacy Beyond 2 Hours

Co-Primary Endpoints Met For Each Ubrogepant Dose1

Ubrogepant Demonstrates Continued Efficacy Beyond 2 Hours2

Bipolar I depression Submission: 2H2018

Endpoints Statistics Placebo(N=456)

Ubro

50mg(N=423)

Ubro

100mg(N=448)

Co-Primary Endpoint 1: Pain Freedom 2 Hours After Initial Dose

Pain Free at 2 Hours, %

11.8 19.2 21.2

Adjusted

p-value- 0.0023 0.0003

Co-Primary Endpoint 2: Absence of Most Bothersome Symptom3

2 Hours After Initial Dose

Absence of MBS3, %

27.8 38.6 37.7

Adjusted

p-value- 0.0023 0.0023

Note: Modified ITT population only.1. As compared to Placebo. 2. Patients were permitted to take second dose of investigational product or rescue medication after 2 hour timepoint. 3. Most Bothersome Symptoms including Photophobia, Phonophobia or Nausea.

0

20

40

60

80

100

0 0.5 1 1.5 2 3 4 6 8

Pe

rce

nt

Time After Dose (Hours)

Placebo

Ubrogepant 50mg

Ubrogepant 100mg

(*)

Kaplan-Meier Plot of Time to Pain Freedom

Within 8 Hours of Initial Dose

(*) P-value < 0.0001, log-rank test comparing the 3 curves

20

Cariprazine: Efficacious in Treatment of Bipolar I Depression

RGH-MD-54 Study RGH-MD-56 Study

Met primary efficacy objective. MADRS total score change from baseline to week 6 was statistically significant for

1.5mg dose

Met primary efficacy objective and well tolerated. MADRS total score change from baseline to week 6 was statistically

significant for both 1.5 mg and 3 mg doses.

(*) Week 6 (primary endpoints), Adjusted P-values: Car 3mg vs Pl = 0.1122; Car 1.5mg vs Pl = 0.0030; Car 0.75mg vs Pl = 0.1292. (†) Week 2, Non-adjusted P-values: Car 3mg vs Pl = 0.0045; Car 1.5mg vs Pl = 0.0013; Car 0.75mg vs Pl = 0.0025. (‡) Week 4, Non-adjusted P-values: Car 3mg vs Pl = 0.0005; Car 1.5mg vs Pl = 0.0006; Car 0.75mg vs Pl = 0.0020.

(*) Week 6 (primary endpoints), Adjusted P-values: Car 3mg vs Pl = 0.0103; Car 1.5mg vs Pl = 0.0331. (†) Week 2,Non-adjusted P-values: Car 3mg vs Pl = 0.0016; Car 1.5mg vs Pl =0.0174. (‡) Week 4, Non-adjusted P-values: Car 3mg vs Pl = 0.0040; Car 1.5mg vs Pl =0.0893

Bipolar I depression sNDA Submission: 2H2018

TESSAHILADOCHIEF FINANCIAL OFFICER

Q4 2017 Financial Performance

22

* Please refer to the GAAP to non-GAAP tables in the appendix for a reconciliation of our non-GAAP results1. 11.0% excluding Fx

Strong Revenue Growth of 12%1 versus prior year

• Growth mainly driven by the addition of Regenerative Medicine products, CoolSculpting and continued growth of key brands

• Offset by Minastrin and Asacol HD loss of exclusivity, continued decline in Namenda XR and Aczone

Margins Remain Strong

• Gross margin decline versus prior year mainly attributed to negative impact from product mix

• Operating margins increase of 1.9% due to lower R&D spend and operating leverage

Higher Net Interest Expense/Other versus prior year mainly attributed to lower “other income” which includes a reduced Teva dividend in Q4 2017

Cash Flow from Operations remains strong at $2.05B

$ millions, except per

share amount

(non-GAAP)*Q4 2017 Q4 2016 ∆ Y/Y

Net Revenue 4,326.1 3,864.3 12.0%

Gross Margin % 85.9% 87.0% -1.1%

R&D Expense 405.7 425.9 -4.7%% of Revenue 9.4% 11.0% -1.6%

S&M 815.2 782.2 4.2%

G&A 317.6 284.8 11.5%

SG&A 1,132.8 1,067.0 6.2%

% of Revenue 26.2% 27.6% -1.4%

Adjusted Operating

Income 2,174.3 1,868.7 16.4%

Adj Op. Margin % 50.3% 48.4% 1.9%

Net Interest

(Expense) /Other (246.6) (221.7) 11.2%

Performance Net

Income per Share$4.86 $3.90 24.6%

Tax Rate 11.4% 10.4% 1.0%

Cash Flow From

Ops 2,048.4 (89.5) N/A

1,5711,882

1,533 1,525

753916

7 3

Q4 2017 Performance by Segment

23

Contribution Margin

71.6% 66.3% 55.0% N/A73.5% 63.5% 54.2%

Revenue growth and contribution margins refer to non-GAAP

19.8% -0.5%

21.6%

(Revenues $M)

Q4’16 Q4’17 Q4’16 Q4’17 Q4’16 Q4’17 Q4’16 Q4’17

US Specialized Therapeutics US General Medicine International Corporate

16.8% ex-Fx

US Specialized Therapeutics revenues grew 19.8% driven by Regenerative Medicine, CoolSculpting and growth in key brands offset by decline in Med Derm

• Contribution margin decline mainly attributed to lower margins from Regenerative Medicine and CoolSculpting

Stable US General Medicine revenues due to continued strong growth in Vraylar, Linzess and Lo Loestrin offset by decline in Minastrin and Namenda XR

• Contribution margin improvement versus prior year due to lower promotional and selling expenses

International revenues double digit growth mainly attributed to facial aesthetics, Regenerative Medicine and CoolSculpting

• Contribution margin increase due to operating leverage

Capitalization as of December 31st 2017

24

• Total debt expected to decrease by an additional $4.2B in debt2

• Debt to adjusted EBITDA improved from 4.3x to 3.7x in 2017

• Completed ~$450M of the $2B share buyback

Capitalization ($B) Q4 2017

Cash and Marketable Securities1 $6.4

Total Debt $30.1

Debt to Adjusted EBITDA 3.7x

Net Debt to Adjusted EBITDA 2.9x

1. Includes Teva shares valued at $1.8B 2. Includes $3.75B in senior note contractual maturities in Q1 2018 plus $459M in marginal loan associated with early retirement of 2019 bondsAdjusted EBITDA refers to non-GAAP

FY and Q1 2018 Guidance

25

FY 2018 Guidance Assumptions

Total Net Revenue $15,000 – $15,300

• Restasis generic entry between April – July 2018

• Namenda XR, Estrace, Aczone generic competition ongoing and Delzicolearly Q2

Non-GAAP Gross Margin 85.5% – 86.0% • Includes impact of LOEs

Non-GAAP SG&A ~$4,250 • Includes impact from cost cutting initiatives

Non-GAAP R&D Spend ~$1,500 • Includes impact from cost cutting initiatives

Non-GAAP Tax rate % ~14.0% • Includes impact from US tax reform

Non-GAAP Net Interest Expense/Other ~$900

Non-GAAP Adjusted Diluted Performance Net Income per Share

$15.25 – $16.00

Non-GAAP Average Share Count ~350 Million • Includes share buyback completion Q2-Q4

Cash Flow from Operations $4,700 – $5,000• Assumes all success based milestones from existing transactions

achieved, anticipated restructuring and other payments

1Q 2018 Guidance

Total Reported Net Revenue $3,500 – $3,600 • Q1 revenue estimate reflects our normal seasonality, LOEs

Non-GAAP Adjusted Diluted Performance Net Income per Share $3.20 - $3.40

In millions except per share amounts

APPENDIX

Continue to Advance the Pipeline …2017 Achievements and key 2018 Highlights

MEDICAL AESTHETICS/ DERMATOLOGY

EYE CARE

GI

WH

CNS

URO, AI, OTHER

28

SUBMISSIONSTHERAPEUTIC AREAS APPROVALS DEVELOPMENT MILESTONES

Volbella lipsJapan

Optive Omega OTC Dry Eye 2H EU

AvycazcUTI with Ph3 US

ESMYAUterine fibroids2H

Botox MDD Ph 2 Results

ESMYA 2nd Ph 3 topline results

RORyt agonist PsoriasisEntry Ph 2b 2H

Muscarinic Receptor M1 and M4 AgonistPh 1 2H ; Entry Ph 1 2H respectively

Botox CFLChina 2H

Linzess72mcg

True Tear Dry Eye

SarecyclineAcne 2H

SarecyclinePh 3 topline 1H

Bimatoprost SR Ph 3 enrollment completion 2H

Pilo/OxyPh 2b enrollment completion

Abicipar AMD Topline 2H

Abicipar DME Ph 3 Entry 2H

UbrogepantTopline 1H

AtogepantTopline 1HPh 2/3 trial

2017 2018

ESMYAUterine fibroids1H

CVCPh 3 Initiated

RelamorelinPh 3 Initiated 2H

RestaysisEU dry eye 1H

SarecyclineAcne 2H

Vraylar(Cariprazine)Schizophrenia Maintenance 2H

SaphrisBipolar Depression maintenance & lowest effective dose

Rapastinel Ph 2 Suicidality Study Initiation 2H

Achieved YTD

VraylarSchizophrenia Maintenance

VoliftJapan

Brimo DDS GA Ph 2 interim topline 2H

CVC + LJN452 Entry Ph 2b 1H

CariprazineBipolar DepPh 3 Results 1H

AvycazHABP/VABPUS 1H

AvycazHABP/VABP US1H

Optive Omega OTC Dry Eye 2H EU

BotoxForehead Lines(US)

Biosimilar BevicazumabMultiple Cancer

Biosimilar HerceptinMAA (EU)BLA (US)

Viibryd(GAD) (CAN)

Liletta5 year data

Ozurdex RVO (China)

CariprazineBipolar Dep(US) 2H

BiosimilarHerceptin (US/EU) 1H

CoolSculpting Jawline(US) 2H

Volift/NLF(China) 2H

BrazikumabCrohn’s Ph3 FPD 2H

SetipiprantSHG topline 2H

Voluma XC (Cannula) topline 2H

Volift-NLF/Volbella-Lips (JPN) 1H

Brazikumab UCPh 2 Initiation 2H

29

Potential Cash Impact from R&D and Approval Milestones

✓ SUCCESS BASED DEVELOPMENT AND APPROVAL MILESTONES CASH FLOW POTENTIAL IMPACT

Amounts in the table above represent payments assuming all anticipated milestones are achieved on commitments in place as of December 31, 2017. Amounts and timing are subject to change depending on project status.

Subsequent to December 31, 2017, Allergan entered into an acquisition agreement with Elastagen for an upfront payment of ~$95M plus contingent considerations of up to $165M, not included in the table above.

Table above does not include upfront consideration in connection with the 2018 acquisition of Repros.

Amounts in the table above only reflect R&D Milestone payments and Approval Milestones; Sales Milestones are not included. Such milestone payments will only be payable in the event that the Company achieves contractually defined, success-based milestones, such as the advancement of the specified research and development programs or the receipt of regulatory approval for the specified compounds or products.

($M) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Thereafter

CF Operating 360 179 255 281 9 1,004

CF Investing 26 87 130 168 258 2,655

CF Financing 23 - 58 150 - 80

Total 409 266 443 599 267 3,739

30

Q4 2017 Cash and Marketable Securities

$5,442

$6,449

$2,048($796)

($1,051) $800

$6

9/30/17 Cash & Marketable

Securities

Cash Flow from Operations

Cash Flow from Investing

Cash Flow from Financing

Other comprehensive income on Cash &

Marketable Securities

12/31/17 Cash & Marketable

Securities

Change in Marketable Securities

1. Include a reduction of previously accrued liabilities of $33.8M2. Includes severance payments of $32.5M which reduced accrued liabilities3. Includes a reduction of previously accrued liabilities of $8M4. Includes the net purchases of marketable securities and cash proceeds from the sale of other investing assets5. Net purchased investments shown as a component of cash used in investing activities, including proceeds from the sale of Teva securities of $64.9M in the open market

Includes:

Debt Make-whole Premium (35)

Payments of legal settlements1

(43)

Severance and integration payments2

(71)

Payments for R&D milestones3

(13)

Includes:

Net Purchase/ sale of

Investments and Other Assets4

(671)

Capital Expenditures (116)

Includes:Teva Shares mark-to-market

adjustment 129

Other marketable securities5

671

($M)

Includes:

Dividends (301)

Share buybacks (457)

Net repayments of long-term

indebtedness (309)

Q4 2017 Reconciliation Tables

Table 1: Allergan plc’s statement of operations for the three and twelve months ended December 31, 2017 and 2016

Table 2: Allergan plc's product revenue for significant promoted products globally, within the U.S. and international for the three and twelve months ended December

31, 2017 and 2016

Table 3: Allergan plc’s Condensed Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016

Table 4: Allergan plc’s Consolidated Statements of Cash Flows for the three and twelve months ended December 31, 2017 and 2016

Table 5: GAAP to Non-GAAP adjustments for the three and twelve months ended December 31, 2017 and 2016

Table 6: Reconciliation of Allergan plc's reported net income / (loss) from continuing operations attributable to shareholders and diluted earnings per share to non-GAAP

performance net income and non-GAAP performance net income per share for the three and twelve months ended December 31, 2017 and 2016

Table 7: Reconciliation of Allergan plc's reported net income / (loss) from continuing operations attributable to shareholders for the three and twelve months ended

December 31, 2017 and 2016 to adjusted EBITDA and adjusted operating income

Table 8: Allergan plc's segment contribution reconciled to the non-GAAP contribution for the same financial statement line items for the three and twelve months ended

December 31, 2017 and 2016

Table 9: Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and twelve months ended

December 31, 2017 and 2016

Table 10: Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and twelve months ended December 31,

2017 and 2016

Table 11: Allergan plc's product revenue for significant promoted products within the International segment for the three and twelve months ended December 31, 2017

and 2016

Table 12: Reconciliation of anticipated GAAP loss from continuing operations to non-GAAP performance net income attributable to shareholders for the three months

ending March 31, 2018 and the twelve months ending December 31, 2018

Table 13: 2017 and 2016 YTD Revenue Performance Drivers by product

31

Table 1: Allergan plc’s statement of operations for the three and twelve months ended December 31, 2017 and 2016

2017 2016 2017 2016

4,326.1$ 3,864.3$ 15,940.7$ 14,570.6$

580.9 479.7 2,168.0 1,860.8

408.2 913.3 2,100.1 2,575.7

1,266.8 1,276.8 5,016.7 4,740.3

1,922.2 1,638.5 7,197.1 6,470.4

207.0 427.0 1,452.3 743.9

31.5 29.0 3,927.7 5.0

4,416.6 4,764.3 21,861.9 16,396.1

(90.5) (900.0) (5,921.2) (1,825.5)

14.7 46.4 67.7 69.9

(263.3) (292.7) (1,095.6) (1,295.6)

(70.7) 35.0 (3,437.3) 219.2

(319.3) (211.3) (4,465.2) (1,006.5)

(409.8) (1,111.3) (10,386.4) (2,832.0)

(3,918.3) (1,071.2) (6,670.4) (1,897.0)

3,508.5 (40.1) (3,716.0) (935.0)

(385.3) 41.3 (402.9) 15,914.5

3,123.2 1.2 (4,118.9) 14,979.5

(1.9) (1.8) (6.6) (6.1)

3,121.3 (0.6) (4,125.5) 14,973.4

69.6 69.6 278.4 278.4

3,051.7$ (70.2)$ (4,403.9)$ 14,695.0$

10.37$ (0.31)$ (11.99)$ (3.17)$

(1.16) 0.11 (1.20) 41.35

9.21$ (0.20)$ (13.19)$ 38.18$

9.97$ (0.31)$ (11.99)$ (3.17)$

(1.09) 0.11 (1.20) 41.35

8.88$ (0.20)$ (13.19)$ 38.18$

0.70$ -$ 2.80$ -$

331.3 356.8 333.8 384.9

351.6 356.8 333.8 384.9

Total other income (expense), net

Asset sales and impairments, net

Interest income

Interest (expense)

Other income (expense), net

(Income) attributable to noncontrolling interest

Dividends on preferred shares

Income / (loss) per share attributable to ordinary shareholders - diluted:

Continuing operations

Discontinued operations

Net income / (loss) per share - diluted

Net income / (loss) attributable to shareholders

Net income / (loss) attributable to ordinary shareholders

Income / (loss) per share attributable to ordinary shareholders - basic:

Continuing operations

Discontinued operations

Net income / (loss) per share - basic

(Loss) before income taxes and noncontrolling interest

Net income / (loss) from continuing operations, net of tax

(Benefit) for income taxes

(Loss) / income from discontinued operations, net of tax

Net income / (loss)

Basic

Diluted

Weighted average shares outstanding:

Dividends per ordinary share

ALLERGAN PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

Twelve Months Ended

Table 1

Three Months Ended

December 31,

Net revenues

Operating (loss)

Operating expenses:

Non-operating income (expense):

Cost of sales (excludes amortization and impairment of

acquired intangibles including product rights)

Research and development

Selling, general and administrative

Amortization

In-process research and development impairments

Total operating expenses

December 31,

32

Table 2: Allergan plc's product revenue for significant promoted products globally, within the U.S. and international for the three and twelve months ended December 31, 2017 and 2016

US Spe c ia lize d

The ra pe utic s

US Ge ne ra l

Me dic ine Inte rna tiona l Corpora te Tota l

US Spe c ia lize d

The ra pe utic s

US Ge ne ra l

Me dic ine Inte rna tiona l Corpora te Tota l

Tota l

Cha nge

Tota l Cha nge

Pe rc e nta ge

Botox®612.4$ -$ 251.9$ -$ 864.3$ 529.2$ -$ 210.1$ -$ 739.3$ 125.0$ 16.9%

Restasis®400.3 - 14.6 - 414.9 393.1 - 18.3 - 411.4 3.5 0.9%

Juvederm Collection**139.5 - 154.7 - 294.2 121.6 - 116.2 - 237.8 56.4 23.7%

Linzess®/Constella®- 194.8 5.8 - 200.6 - 173.6 4.6 - 178.2 22.4 12.6%

Lumigan®/Ganfort®80.9 - 99.7 - 180.6 86.0 - 92.5 - 178.5 2.1 1.2%

Bystolic® /Byvalson®- 157.5 0.6 - 158.1 - 159.8 0.4 - 160.2 (2.1) (1.3)%

Alphagan®/Combigan®101.8 - 46.7 - 148.5 102.3 - 42.0 - 144.3 4.2 2.9%

Eye Drops47.3 - 73.8 - 121.1 46.4 - 69.3 - 115.7 5.4 4.7%

Lo Loestrin®- 126.5 - - 126.5 - 107.5 - - 107.5 19.0 17.7%

Breast Implants69.0 - 40.1 - 109.1 56.8 - 37.4 - 94.2 14.9 15.8%

Estrace® Cream- 101.5 - - 101.5 - 103.0 - - 103.0 (1.5) (1.5)%

Alloderm®97.9 - 2.5 - 100.4 - - - - - 100.4 n.a.

Namenda XR®- 97.8 - - 97.8 - 141.1 - - 141.1 (43.3) (30.7)%

Viibryd®/Fetzima®- 89.0 1.0 - 90.0 - 89.7 (0.1) - 89.6 0.4 0.4%

Vraylar™- 87.7 - - 87.7 - 43.2 - - 43.2 44.5 103.0%

Ozurdex ® 26.4 - 60.9 - 87.3 22.6 - 48.8 - 71.4 15.9 22.3%

Coolsculpting Consumables51.9 - 15.3 - 67.2 - - - - - 67.2 n.a.

Carafate ® /Sulcrate ®- 59.2 0.8 - 60.0 - 61.3 0.7 - 62.0 (2.0) (3.2)%

Zenpep®- 58.5 - - 58.5 - 55.6 - - 55.6 2.9 5.2%

Asacol®/Delzicol®- 42.8 13.4 - 56.2 - 62.9 13.2 - 76.1 (19.9) (26.1)%

Coolsculpting Systems & Add On Applicators42.5 - 11.7 - 54.2 - - - - - 54.2 n.a.

Canasa®/Salofalk®- 47.0 5.0 - 52.0 - 43.7 4.7 - 48.4 3.6 7.4%

Armour Thyroid- 51.3 - - 51.3 - 44.7 - - 44.7 6.6 14.8%

Viberzi®- 42.9 0.2 - 43.1 - 38.0 - - 38.0 5.1 13.4%

Aczone®38.0 - 0.2 - 38.2 61.2 - - - 61.2 (23.0) (37.6)%

Saphris®- 37.7 - - 37.7 - 43.2 - - 43.2 (5.5) (12.7)%

Namzaric®- 36.8 - - 36.8 - 19.5 - - 19.5 17.3 88.7%

Rapaflo®28.2 - 1.8 - 30.0 29.0 - 1.6 - 30.6 (0.6) (2.0)%

Teflaro®- 29.2 - - 29.2 - 31.7 - - 31.7 (2.5) (7.9)%

SkinMedica®24.7 - 2.3 - 27.0 26.8 - - - 26.8 0.2 0.7%

Savella®- 23.9 - - 23.9 - 29.1 - - 29.1 (5.2) (17.9)%

Avycaz®- 18.5 - - 18.5 - 9.2 - - 9.2 9.3 101.1%

Latisse®15.9 - 2.1 - 18.0 23.2 - 2.3 - 25.5 (7.5) (29.4)%

Liletta®- 14.5 - - 14.5 - 8.3 - - 8.3 6.2 74.7%

Tazorac®14.1 - 0.2 - 14.3 27.5 - 0.2 - 27.7 (13.4) (48.4)%

Dalvance®- 13.0 1.2 - 14.2 - 12.6 - - 12.6 1.6 12.7%

Kybella® /Belkyra®12.1 - 1.7 - 13.8 12.0 - 0.7 - 12.7 1.1 8.7%

Lexapro®- 12.4 - - 12.4 - 15.8 - - 15.8 (3.4) (21.5)%

Minastrin® 24- 5.3 - - 5.3 - 78.4 - - 78.4 (73.1) (93.2)%

Enablex®- 0.8 - - 0.8 - 2.4 - - 2.4 (1.6) (66.7)%

Namenda® IR- - - - - - 2.3 - - 2.3 (2.3) (100.0)%

Other Products Revenues 78.9 176.7 107.7 3.1 366.4 33.2 156.4 90.3 7.2 287.1 79.3 27.6%

Less product sold through our Anda Distribution businessn.a. n.a. n.a. - - n.a. n.a. n.a. - - - n.a.

T otal Net Revenues1,881.8$ 1,525.3$ 915.9$ 3.1$ 4,326.1$ 1,570.9$ 1,533.0$ 753.2$ 7.2$ 3,864.3$ 461.8$ 12.0%

ALLE RGAN P LC

NE T RE V E NUE S T OP GLOBAL P RODUCT S

(Unaudited; in millions)

Thre e Months Ende d De c e mbe r 3 1, 2 0 17 Thre e Months Ende d De c e mbe r 3 1, 2 0 16 Move me nt

** Represents sales of all f illers including Juvederm and Voluma product lines.

T able 2

33

Table 2 (cont’d): Allergan plc's product revenue for significant promoted products globally, within the U.S. and international for the three and twelve months ended December 31, 2017 and 2016

US S pecialized

T herapeutics

US General

M edicine International Corporate T otal

US S pecialized

T herapeutics

US General

M edicine International Corporate T otal

Tota l

Cha nge

Tota l Cha nge

Pe rc e nta ge

Botox® 2,254.4$ —$ 914.5$ —$ 3,168.9$ 1,983.2$ —$ 803.0$ —$ 2,786.2$ 382.7$ 13.7%

Restasis® 1,412.3 - 61.3 - 1,473.6 1,419.5 - 68.0 - 1,487.5 (13.9) (0.9)%

Juvederm Collection** 501.1 - 540.7 - 1,041.8 446.9 - 420.4 - 867.3 174.5 20.1%

Linzess®/Constella® - 701.1 21.9 - 723.0 - 625.6 17.3 - 642.9 80.1 12.5%

Lumigan®/Ganfort® 317.5 - 371.5 - 689.0 326.4 - 361.7 - 688.1 0.9 0.1%

Bystolic® /Byvalson® - 612.2 2.2 - 614.4 - 638.8 1.7 - 640.5 (26.1) (4.1)%

Alphagan®/Combigan® 377.3 - 175.1 - 552.4 376.6 - 169.3 - 545.9 6.5 1.2%

Eye Drops 199.5 - 281.0 - 480.5 186.5 - 276.2 - 462.7 17.8 3.8%

Lo Loestrin® - 459.3 - - 459.3 - 403.5 - - 403.5 55.8 13.8%

Namenda XR® - 452.8 - - 452.8 - 627.6 - - 627.6 (174.8) (27.9)%

Breast Implants 242.6 - 156.9 - 399.5 206.0 - 149.9 - 355.9 43.6 12.3%

Estrace® Cream - 366.6 - - 366.6 - 379.4 - - 379.4 (12.8) (3.4)%

Viibryd®/Fetzima® - 333.2 3.1 - 336.3 - 342.3 - - 342.3 (6.0) (1.8)%

Alloderm® 321.2 - 7.5 - 328.7 - - - - - 328.7 n.a.

Ozurdex ® 98.4 - 213.4 - 311.8 84.4 - 179.0 - 263.4 48.4 18.4%

Vraylar™ - 287.8 - - 287.8 - 94.3 - - 94.3 193.5 n.m.

Asacol®/Delzicol® - 195.5 50.2 - 245.7 - 360.8 53.7 - 414.5 (168.8) (40.7)%

Carafate ® /Sulcrate ® - 235.8 2.9 - 238.7 - 229.0 2.4 - 231.4 7.3 3.2%

Zenpep® - 212.3 - - 212.3 - 200.7 - - 200.7 11.6 5.8%

Coolsculpting Consumables 150.1 - 41.6 - 191.7 - - - - - 191.7 n.a.

Canasa®/Salofalk® - 162.7 18.3 - 181.0 - 178.7 17.7 - 196.4 (15.4) (7.8)%

Armour Thyroid - 169.1 - - 169.1 - 166.5 - - 166.5 2.6 1.6%

Aczone® 166.3 - 0.5 - 166.8 217.3 - - - 217.3 (50.5) (23.2)%

Viberzi® - 156.6 0.5 - 157.1 - 93.3 - - 93.3 63.8 68.4%

Saphris® - 155.2 - - 155.2 - 166.8 - - 166.8 (11.6) (7.0)%

Coolsculpting Systems & Add On Applicators 106.6 - 32.1 - 138.7 - - - - - 138.7 n.a.

Namzaric® - 130.8 - - 130.8 - 57.5 - - 57.5 73.3 127.5%

Teflaro® - 121.9 - - 121.9 - 133.6 - - 133.6 (11.7) (8.8)%

Rapaflo® 108.1 - 7.3 - 115.4 116.6 - 5.8 - 122.4 (7.0) (5.7)%

SkinMedica® 96.8 - 3.7 - 100.5 108.3 - - - 108.3 (7.8) (7.2)%

Savella® - 98.2 - - 98.2 - 103.2 - - 103.2 (5.0) (4.8)%

Tazorac® 65.4 - 0.7 - 66.1 95.5 - 0.8 - 96.3 (30.2) (31.4)%

Latisse® 56.4 - 8.3 - 64.7 77.9 - 8.5 - 86.4 (21.7) (25.1)%

Minastrin® 24 - 61.4 - - 61.4 - 325.9 1.4 - 327.3 (265.9) (81.2)%

Avycaz® - 61.2 - - 61.2 - 36.1 - - 36.1 25.1 69.5%

Kybella® /Belkyra® 49.5 - 6.8 - 56.3 50.2 - 2.3 - 52.5 3.8 7.2%

Dalvance® - 53.9 2.4 - 56.3 - 39.3 - - 39.3 17.0 43.3%

Lexapro® - 51.8 - - 51.8 - 66.6 - - 66.6 (14.8) (22.2)%

Liletta® - 37.6 - - 37.6 - 23.3 - - 23.3 14.3 61.4%

Enablex® - 3.6 - - 3.6 - 17.1 - - 17.1 (13.5) (78.9)%

Namenda® IR - 0.1 - - 0.1 - 15.1 - - 15.1 (15.0) (99.3)%

Other Products Revenues 280.1 675.5 395.1 21.4 1,372.1 116.4 598.9 342.2 33.7 1,091.2 280.9 25.7%

Less product sold through our Anda Distribution business n.a. n.a. n.a. - - n.a. n.a. n.a. (80.0) (80.0) 80.0 (100.0)%

T otal Net Revenues 6,803.6$ 5,796.2$ 3,319.5$ 21.4$ 15,940.7$ 5,811.7$ 5,923.9$ 2,881.3$ (46.3)$ 14,570.6$ 1,370.1$ 9.4%

** Represents sales of all f illers including Juvederm and Voluma product lines.

Twe lve Months Ende d De c e mbe r 3 1, 2 0 17 Twe lve Months Ende d De c e mbe r 3 1, 2 0 16 M ovement

34

Table 3: Allergan plc’s Condensed Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016

December 31, December 31,

2017 2016

1,817.2$ 1,724.0$

4,632.1 11,501.5

2,899.0 2,531.0

904.5 718.0

1,123.9 1,383.4

81.6 27.0

1,785.4 1,611.3

587.0 515.4

54,648.3 62,618.6

49,862.9 46,356.1

118,341.9$ 128,986.3$

5,616.3$ 5,076.8$

30,075.3 32,768.7

8,813.2 14,940.3

73,837.1 76,200.5

118,341.9$ 128,986.3$ Total liabilities and equity

Assets

Table 3

Total assets

Current liabilities

Current and long-term debt and capital leases

Deferred income taxes and other liabilities

Property, plant and equipment, net

Investments and other assets

Product rights and other intangibles

Goodwill

Inventories

Cash and cash equivalents

Accounts receivable, net

Prepaid expenses and other current assets

Assets held for sale

Total equity

Liabilities & Equity

ALLERGAN PLC

CONDENSED CONSOLIDATED BALANCE SHEETS


Marketable securities

35

Table 4: Allergan plc’s Consolidated Statements of Cash Flows for the three and twelve months ended December 31, 2017 and 2016

2017 2016 2017 2016

3,123.2$ 1.2$ (4,118.9)$ 14,979.5$

48.3 38.2 171.5 155.8

1,922.2 1,638.5 7,197.1 6,475.2

24.9 18.7 102.2 181.4

72.5 64.6 293.3 334.5

(4,577.8) (926.8) (7,783.1) (1,443.9)

- (308.0) - (24,511.1)

- (464.7) - 5,285.2

207.0 427.0 1,452.3 743.9

31.5 29.0 3,927.7 5.0

- - 3,273.5 -

387.4 - 387.4 -

62.9 - 62.9 -

5.5 - 131.7 42.4

(7.5) - (15.7) -

8.2 6.4 27.8 51.0

(81.6) (143.5) (133.2) (66.8)

(18.8) (43.9) (37.0) (59.9)

(49.8) (150.6) (188.3) (191.0)

(37.1) (46.8) (144.8) (268.4)

(17.9) (129.0) 27.9 29.9

452.2 (18.4) 95.9 313.5

468.0 (195.0) 1,114.1 (326.6)

25.1 113.6 29.1 (283.9)

2,048.4 (89.5) 5,873.4 1,445.7

(115.9) (80.9) (349.9) (331.4)

(10.0) (2.0) (614.3) (2.0)

- 499.7 - 33,804.2

(1,350.0) (298.0) (9,783.8) (15,743.5)

678.9 7,731.6 15,153.3 7,771.6

1.3 - 7.1 33.3

- (1,124.4) (5,290.4) (1,198.9)

(795.7) 6,726.0 (878.0) 24,333.3

525.0 - 3,550.0 1,050.0

(3.1) - (20.6) -

(834.4) (17.7) (6,413.6) (10,848.7)

16.2 34.1 183.4 172.1

3.6 (83.4) (511.6) (161.1)

(456.6) (12,317.8) (493.0) (15,076.4)

(301.2) (69.6) (1,218.2) (278.4)

(1,050.5) (12,454.4) (4,923.6) (25,142.5)

2.3 (12.8) 21.4 (8.5)

204.5 (5,830.7) 93.2 628.0

1,612.7 7,554.7 1,724.0 1,096.0

1,817.2$ 1,724.0$ 1,817.2$ 1,724.0$

Sale of businesses to Teva

Debt issuance and other financing costs

Cash Flows From Investing Activities:

Proceeds from sale of investments and other assets

In-process research and development impairments

Loss on asset sales and impairments, net

Net cash provided by / (used in) operating activities

Proceeds from sales of property, plant and equipment

Acquisitions of businesses, net of cash acquired

Cash Flows From Financing Activities:

Proceeds from borrowings on long-term indebtedness, including credit facility

Additions to property, plant and equipment

Additions to product rights and other intangibles

Additions to investments

Net cash (used in) / provided by

investing activities

Amortization of inventory step up

Amortization of deferred financing costs

Amortization

Provision for inventory reserve

Share-based compensation

Decrease / (increase) in prepaid expenses

and other current assets

Deferred income tax benefit

Non-cash extinguishment of debt

Net income impact of other-than-temporary loss

on investment in Teva securities

Pre-tax gain on sale of businesses to Teva

Non-cash tax effect of gain on sale of businesses to Teva

Charge to settle Teva related matters, net of tax

Loss on forward sale of Teva shares

Increase / (decrease) in income and other

taxes payable

Increase / (decrease) in other assets and liabilities

Contingent consideration adjustments,

including accretion

Other, net

Changes in assets and liabilities (net of effects

of acquisitions):

Decrease / (increase) in accounts receivable, net

Decrease / (increase) in inventories

Increase / (decrease) in accounts payable

and accrued expenses

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Payments on debt, including capital lease obligations

Proceeds from stock plans

Other financing, including contingent consideration

Repurchase of ordinary shares

Dividends

Effect of currency exchange rate changes on cash

and cash equivalents

Net cash (used in) financing activities

Net increase / (decrease) in cash and cash equivalents

Depreciation

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS


Twelve Months Ended December 31,

Cash Flows From Operating Activities:

Net income / (loss)

Reconciliation to net cash provided by operating activities:

Three Months Ended December 31,

Table 4

36

Table 5: GAAP to Non-GAAP adjustments for the three and twelve months ended December 31, 2017 and 2016

Ne t

Re ve nue COGS

Re se a rc h &

De ve lopme nt

Se lling &

Ma rke ting

Ge ne ra l &

Administra tive Amortiza tion

Asse t sa le s

a nd

Impa irme nts,

ne t

Inte re st

e xpe nse ,

ne t

Othe r

inc ome

(e xpe nse )

Inc ome

ta xe s

GAAP 4,326.1$ 580.9$ 408.2$ 877.7$ 389.1$ 1,922.2$ 238.5$ (248.6)$ (70.7)$ (3,918.3)$

Impact of selling through purchase accounting mark-up on acquired inventory - (5.5) - - - - - - - -

Purchase accounting impact on stock-based compensation for acquired awards - (1.3) (3.8) (6.7) (3.2) - - - - -

Severance due to integration of acquired entities - - - (0.8) (0.6) - - - - -

Non-acquisition related severance and restructuring related to the December 2017 restructuring program - (7.7) (18.2) (56.5) (23.5) - (17.7) - - -

Other non-acquisition related severance and restructuring - (8.7) - 0.4 0.6 - - - - -

Costs associated with disposed businesses - (2.3) - (0.1) (2.3) - - - - -

Integration charges of acquired businesses - - (0.9) 0.2 (18.9) - - - - -

Brand related milestones and upfront expenses for asset acquisitions

Other - - (5.3) - - - - - - -

Accretion and fair-value adjustments to contingent consideration - 55.9 25.7 - - - - - - -

Net income impact of determining that the loss on investment of Teva securities is other-than-temporary - - - - - - - - - -

Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (6.4) - -

Impairment of IPR&D products acquired in the Allergan Acquisition - - - - - - (207.0) - - -

Asset sales and impairments, other - - - - - - (13.8) - - -

Impact of debt refinancing - - - - - - - - 27.6 -

Loss on forward sale of Teva shares - - - - - - - - 62.9 -

Litigation settlement related charges - - - - (22.2) - - - - -

Other adjustments - - - 1.0 (1.4) (1,922.2) - - (11.4) -

Income taxes on pre-tax adjustments - - - - - - - - - 567.6

Discrete income tax events - - - - - - - - - 3,570.2

Non-GAAP Adjusted 4,326.1$ 611.3$ 405.7$ 815.2$ 317.6$ -$ -$ (255.0)$ 8.4$ 219.5$

ALLERGAN PLC

GAAP TO NON- GAAP ADJUSTMENTS

(Una udite d; in millions)

Thre e Months Ende d De c e mbe r 3 1, 2 0 17

Table 5

37

Table 5 (cont’d): GAAP to Non-GAAP adjustments for the three and twelve months ended December 31, 2017 and 2016

Net

Revenue COGS

Research &

Development Selling & Marketing

General &

Administrative Amortization

Asset sales

and

Impairments,

net

Interest

expense,

net

Other

income

(expense)

Income

taxes

GAAP 3,864.3$ 479.7$ 913.3$ 836.8$ 440.0$ 1,638.5$ 456.0$ (246.3)$ 35.0$ (1,071.2)$

Expenditures incurred with the Pfizer transaction - (1.3) (2.7) (31.5) (4.9) - - - - -


Severance due to integration of acquired entities and other restructuring programs - (0.4) (4.6) (11.8) (8.6) - - - - -

Integration charges of acquired businesses - (5.3) (2.4) (1.2) (54.3) - - - - -


AstraZeneca plc - - (250.0) - - - - - - -

Chase Pharmaceuticals Corporation - - (122.9) - - - - - - -

Motus Therapeutics, Inc. - - (199.5) - - - - - - -

Urogen license agreement - - (17.5) - - - - - - -

Other adjustments - - (2.7) - - - - - - -

Accretion and fair-value adjustments to contingent consideration - 30.8 136.9 - (24.2) - - - - -

Mark-to-market adjustments for foreign currency option contracts - - - - 9.5 - - - - -


Abandonment and decrease in realization of certain R&D projects acquired in the Allergan acquisition - - - - - - (348.0) - - -

Decrease in realization of certain R&D projects acquired in the Vitae acquisition - - - - - - (46.0) - - -

Decrease in realization of certain R&D projects acquired in the ForSight acquisition - - - - - - (33.0) - - -



Other adjustments - - - - (10.6) (1,638.5) - - - -

Income taxes on pre-tax adjustments - - - - - - - - - 869.9

Discrete income tax events - - - - - - - - - 372.3

Non-GAAP Adjusted 3,864.3$ 501.8$ 425.9$ 782.2$ 284.8$ -$ -$ (256.7)$ 35.0$ 171.0$

ALLERGAN PLC

GAAP TO NON-GAAP ADJUSTMENTS


Three Months Ended December 31, 2016

The non-GAAP income tax expense is determined based on our pre-tax income adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate for the three months ended December 31, 2017 was impacted by U.S. income taxed at rates higher than the Irish statutory rate, partially offset by income earned in jurisdictions with tax rates lower than the Irish statutory rate.

The non-GAAP effective tax rate for the three months ended December 31, 2017 excludes discrete tax benefits of approximately $2.8 billion related to the impacts of recently enacted U.S. tax law changes, approximately $710 million related to certain temporary differences expected to reverse at tax rates different than what was originally recorded and approximately $55 million related to individually

insignificant items.

38


Net Revenue COGS

Research &


General &


Asset sales and

Impairments, net Interest expense, net

Other income

(expense) Income taxes

GAAP 15,940.7$ 2,168.0$ 2,100.1$ 3,514.8$ 1,501.9$ 7,197.1$ 5,380.0$ (1,027.9)$ (3,437.3)$ (6,670.4)$


Expenditures incurred with the Pfizer transaction - (2.0) (2.4) (5.6) (10.5) - - - - -


Severance due to integration of acquired entities - (0.5) (3.0) (19.5) (17.3) - - - - -

Non-acquisition related severance and restructuring related to the December 2017 restructuring program (7.7) (18.2) (56.5) (23.5) - (17.7) - - -

Other non-acquisition related severance and restructuring - (53.8) (15.1) (24.3) (9.3) - - - - -

Costs associated with disposed businesses - (4.9) - (0.3) (16.0) - - - - -

Integration charges of acquired businesses - (0.6) (3.2) (4.1) (95.0) - - - - -


Assembly Biosciences, Inc. - - (50.0) - - - - - - -

Lysosomal Therapeutics, Inc. - - (145.0) - - - - - - -

Editas Medicine Inc. - - (90.0) - - - - - - -

Akarna Therapeutics, Ltd. - - (39.6) - - - - - - -

Heptares Therapeutics Ltd. - - (15.0) - - - - - - -

Lyndra, Inc. - - (15.0) - - - - - - -

Other - - (37.2) - - - - - - -

Accretion and fair-value adjustments to contingent consideration - 183.2 (50.0) - - - - - - -

Net income impact of determining that the loss on investment of Teva securities is other-than-temporary - - - - - - - - 3,273.5 -


Termination of agreement for SER-120 - - - - - - (147.4) - - -

Impairment of Restasis intangible assets and dry eye IPR&D projects acquired in the Allergan acquisition - - - - - - (3,394.0) - - -

Impairment of Aczone intangible assets - - - - - - (646.0) - - -

Impairment of IPR&D products acquired in the Allergan Acquisition - - - - - - (774.0) - - -

Decrease in realization of certain R&D projects acquired in the Uteron acquisition - - - - - - (91.3) - - -

Decrease in realization of certain R&D projects acquired in the Warner Chilcott acquisition - - - - - - (278.0) - - -


Settlement of Naurex, Inc. agreement - - - - - - - - (20.0) -

Loss on forward sale of Teva shares - - - - - - - - 62.9 -

Impact of debt refinancing - - - - (12.6) - - - 189.1 -


Other adjustments - (12.5) 0.7 (0.5) 11.7 (7,197.1) - - (5.4) -

Income taxes on pre-tax adjustments - - - - - - - - - 3,717.9

Discrete income tax events - - - - - - - - - 3,790.9

Non-GAAP Adjusted 15,940.7$ 2,132.9$ 1,598.8$ 3,370.9$ 1,183.9$ -$ -$ (1,061.1)$ 62.8$ 838.4$

Twelve Months Ended December 31, 2017


ALLERGAN PLC

GAAP TO NON-GAAP ADJUSTMENTS

39


Net Revenue COGS

Research &


General &


Asset sales and

Impairments, net Interest expense, net

Other income

(expense) Income taxes

GAAP 14,570.6$ 1,860.8$ 2,575.7$ 3,266.4$ 1,473.9$ 6,470.4$ 748.9$ (1,225.7)$ 219.2$ (1,897.0)$


Expenditures incurred with the Pfizer transaction - (4.8) (8.4) (57.7) (62.4) - - - (150.0) -


Severance due to integration of acquired entities and other restructuring programs - (4.0) (11.3) (19.8) (26.4) - - - - -

Integration charges of acquired businesses - (14.2) 1.0 (4.9) (180.8) - - - - -


Topokine Therapeutics, Inc. - - (85.8) - - - - - - -

Anterios, Inc. - - (89.2) - - - - - - -

Retrosense Therapeutics, LLC - - (59.7) - - - - - - -

Akarna Therapeutics, Ltd. - - (48.2) - - - - - - -

AstraZeneca plc - - (250.0) - - - - - - -

Chase Pharmaceuticals Corporation - - (122.9) - - - - - - -

Motus Therapeutics, Inc. - - (199.5) - - - - - - -

Urogen license agreement - - (17.5) - - - - - - -

Merck license agreement - - (100.0) - - - - - - -

Heptares Therapeutics Ltd. - - (125.0) - - - - - - -

Other - - (36.9) - - - - - - -

Accretion and fair-value adjustments to contingent consideration - 17.4 71.1 - (24.3) - - - - -

Mark-to-market adjustments for foreign currency option contracts - - - - (8.9) - - - - -


Women's healthcare portfolio product impairment - - - - - - (24.0) - - -

Abandonment of certain R&D projects acquired in the Allergan acquisition - - - - - - (592.9) - - -

Decrease in realization of certain R&D projects acquired in the Vitae acquisition - - - - - - (46.0) - - -

Decrease in realization of certain R&D projects acquired in the ForSight acquisition - - - - - - (33.0) - - -

Abandonment of certain R&D projects acquired in the Forest acquisition - - - - - - (42.0) - - -



Other adjustments - - (5.8) (0.1) (10.1) (6,470.4) - - - -

Income taxes on pre-tax adjustments - - - - - - - - - 2,132.2

Discrete income tax events - - - - - - - - - 300.0

Non-GAAP Adjusted 14,570.6$ 1,804.7$ 1,433.8$ 3,118.5$ 963.2$ -$ -$ (1,276.7)$ 69.2$ 535.2$

ALLERGAN PLC

GAAP TO NON-GAAP ADJUSTMENTS(Unaudited; in millions)

The non-GAAP income tax expense is determined based on our pre-tax income adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate for the twelve months ended December 31, 2017 was impacted by U.S. income taxed at rates higher than the Irish statutory rate, partially offset by income earned in jurisdictions with tax rates lower than the Irish statutory rate.

The non-GAAP effective tax rate for the twelve months ended December 31, 2017 excludes discrete tax benefits of approximately $2.8 billion related to the impacts of recently enacted U.S. tax law changes, approximately $710 million related to certain temporary differences expected to reverse at tax rates different than what was originally recorded and approximately $285 million related to individually

insignificant items.

Twelve Months Ended December 31, 2016

40

Table 6: Reconciliation of Allergan plc's reported net income / (loss) from continuing operations attributable to shareholders and diluted earnings per share to non-GAAP performance net income and non-GAAP performance net income per share for the three and twelve months ended December 31, 2017 and 2016

2017 2016 2017 2016

3,506.6$ (41.9)$ (3,722.6)$ (941.1)$

1,922.2 1,638.5 7,197.1 6,470.4

108.4 800.4 4,083.4 1,593.6

(81.6) (143.5) (133.2) (64.2)

238.5 456.0 5,380.0 748.9

16.2 (9.5) 210.1 8.9

113.6 - 208.4 -

22.2 17.3 96.5 117.3

(4,137.8) (1,242.2) (7,508.8) (2,432.2)

1,708.3$ 1,475.1$ 5,810.9$ 5,501.6$

9.97$ (0.12)$ (11.15)$ (2.45)$

4.86$ 3.90$ 16.35$ 13.51$

331.3 356.8 333.8 384.9

20.3 21.8 21.6 22.3

351.6 378.6 355.4 407.2

Table 6

(1) Includes stock-based compensation primarily due to the Zeltiq, Allergan and Forest acquisitions as well as the valuation accounting impact in

interest expense, net.

Income taxes on items above and other discrete income tax adjustments

Diluted weighted average ordinary shares outstanding

Diluted income / (loss) per share from continuing operations attributable to

shareholders- GAAP

Non-GAAP performance net income per share attributable to shareholders

Basic weighted average ordinary shares outstanding

Effect of dilutive securities:

Dilutive shares

Accretion and fair-value adjustments to contingent consideration

Impairment/asset sales and related costs

Non-acquisition restructurings, including Global Supply Chain initiatives

Legal settlements

Non-GAAP performance net income attributable to shareholders

Non-recurring losses / (gains)

Three Months EndedDecember 31, December 31,

ALLERGAN PLC

RECONCILIATION TABLE

(Unaudited; in millions except per share amounts)

Twelve Months Ended

GAAP to Non-GAAP Performance net income calculation

Diluted earnings per share

GAAP income / (loss) from continuing operations attributable to shareholders

Adjusted for:

Amortization

Acquisition, divestiture and licensing charges(1)

41

Table 7: Reconciliation of Allergan plc's reported net income / (loss) from continuing operations attributable to shareholders for the three and twelve months ended December 31, 2017 and 2016 to adjusted EBITDA and adjusted operating income

2017 2016 2017 2016

3,506.6$ (41.9)$ (3,722.6)$ (941.1)$

263.3 292.7 1,095.6 1,295.6

(14.7) (46.4) (67.7) (69.9)

(3,918.3) (1,071.2) (6,670.4) (1,897.0)

48.3 38.2 171.5 152.7

1,922.2 1,638.5 7,197.1 6,470.4

1,807.4$ 809.9$ (1,996.5)$ 5,010.7$

95.7 732.2 4,007.5 1,436.8

238.5 456.0 5,380.0 748.9

16.2 (9.5) 210.1 8.9

113.6 - 208.4 -

22.2 17.3 96.5 117.3

(81.6) (143.5) (133.2) (64.2)

72.5 113.3 324.8 370.3

2,284.5$ 1,975.7$ 8,097.6$ 7,628.7$

(48.3) (38.2) (171.5) (152.7)

(8.5) (34.1) (85.2) (68.2)

- - 22.3 -

(53.4) (34.7) (215.7) (162.5)

2,174.3$ 1,868.7$ 7,647.5$ 7,245.3$

Table 7

ALLERGAN PLC

ADJUSTED EBITDA and ADJUSTED OPERATING INCOME, RECONCILIATION TABLE


Three Months Ended

December 31,

Twelve Months Ended

December 31,

Accretion and fair-value adjustments to contingent consideration

Share-based compensation including cash settlements

Depreciation

Dividend income

Share-based compensation not related to restructuring charges and purchase

accounting impact on stock-based compensation for acquired awards

Impairment/asset sales and related costs

Non-recurring (gain) / losses

Legal settlements

Adjusted Operating Income

GAAP income / (loss) from continuing operations attributable to shareholders

EBITDA

Adjusted for:

Adjusted EBITDA

Adjusted for:

Plus:

Interest expense

Interest income

(Benefit) for income taxes

Depreciation

Amortization

Acquisition, divestiture and licensing charges


Other-than-temporary security impairments

42

Table 8: Allergan plc's segment contribution reconciled to the non-GAAP contribution for the same financial statement line items for the three and twelve months ended December 31, 2017 and 2016

Table 8

US Specialized

Therapeutics

Segment

US General

Medicine Segment

International

Segment Corporate Total Company

US Specialized

Therapeutics

Segment

US General

Medicine Segment

International


1,881.8$ 1,525.3$ 915.9$ 3.1$ 4,326.1$ 1,570.9$ 1,533.0$ 753.2$ 7.2$ 3,864.3$

146.0 220.7 137.1 107.5 611.3 75.9 230.2 108.9 86.8 501.8

328.8 245.8 240.6 - 815.2 292.2 282.9 205.5 1.6 782.2

58.8 47.6 34.1 177.1 317.6 47.8 46.7 30.7 159.6 284.8

1,348.2$ 1,011.2$ 504.1$ (281.5)$ 2,582.0$ 1,155.0$ 973.2$ 408.1$ (240.8)$ 2,295.5$

71.6% 66.3% 55.0% n.m. 59.7% 73.5% 63.5% 54.2% n.m. 59.4%

92.2% 85.5% 85.0% n.m. 85.9% 95.2% 85.0% 85.5% n.m. 87.0%

US Specialized

Therapeutics

Segment

US General Medicine

Segment

International


US Specialized

Therapeutics

Segment

US General Medicine

Segment

International


6,803.6$ 5,796.2$ 3,319.5$ 21.4$ 15,940.7$ 5,811.7$ 5,923.9$ 2,881.3$ (46.3)$ 14,570.6$

495.4 843.9 478.7 314.9 2,132.9 290.9 879.8 418.2 215.8 1,804.7

1,369.5 1,084.1 913.8 3.5 3,370.9 1,137.0 1,185.7 788.2 7.6 3,118.5

208.2 177.3 120.6 677.8 1,183.9 174.2 174.9 117.2 496.9 963.2

4,730.5$ 3,690.9$ 1,806.4$ (974.8)$ 9,253.0$ 4,209.6$ 3,683.5$ 1,557.7$ (766.6)$ 8,684.2$

69.5% 63.7% 54.4% n.m. 58.0% 72.4% 62.2% 54.1% n.m. 59.6%

92.7% 85.4% 85.6% n.m. 86.6% 95.0% 85.1% 85.5% n.m. 87.6%

(2) Excludes amortization and impairment of acquired intangibles including product rights.

(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.

Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016

(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers for the US Specialized Therapeutics Segment and the US General Medicine Segment in the twelve months ended December 31, 2016 of $80.0 million, which are reclassified to discontinued operations through Corporate. The corresponding reclassification recorded in cost of goods sold was $78.2 million in the twelve months ended December

31, 2016.

Segment contribution

Segment margin

Segment gross margin(3)

Net revenues (1)

Operating expenses:

Cost of sales(1)(2)

Selling and marketing

General and administrative

ALLERGAN PLC

Segment Contribution to Non-GAAP Allergan plc Contribution

(Unaudited; $ in millions)

Three Months Ended December 31, 2017 Three Months Ended December 31, 2016

(1) Excludes amortization and impairment of acquired intangibles including product rights.

(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.

Net revenues

Operating expenses:

Segment gross margin(2)

Cost of sales(1)

Selling and marketing

General and administrative

Segment contribution

Segment margin

43

Table 9: Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and twelve months ended December 31, 2017 and 2016

2017 2016 Dollars %

Total Eye Care 671.7$ 660.1$ 11.6$ 1.8%

Restasis®

400.3 393.1 7.2 1.8%

Alphagan®/Combigan

®101.8 102.3 (0.5) (0.5)%

Lumigan®/Ganfort

®80.9 86.0 (5.1) (5.9)%

Ozurdex®

26.4 22.6 3.8 16.8%

Eye Drops 47.3 46.4 0.9 1.9%

Other Eye Care 15.0 9.7 5.3 54.6%

Total Medical Aesthetics 712.9 440.3 272.6 61.9%

Facial Aesthetics 380.0 333.0 47.0 14.1%

Botox® Cosmetics 228.4 199.4 29.0 14.5%

Juvederm Collection 139.5 121.6 17.9 14.7%

Kybella®

12.1 12.0 0.1 0.8%

Plastic Surgery 69.0 57.3 11.7 20.4%

Breast Implants 69.0 56.8 12.2 21.5%

Other Plastic Surgery - 0.5 (0.5) (100.0)%

Regenerative Medicine 128.9 - 128.9 n.a.

Alloderm®

97.9 - 97.9 n.a.

Other Regenerative Medicine 31.0 - 31.0 n.a.

Body Contouring 94.4 - 94.4 n.a.

Coolsculpting® Systems & Add On Applicators 42.5 - 42.5 n.a.

Coolsculpting® Consumables 51.9 - 51.9 n.a.

Skin Care 40.6 50.0 (9.4) (18.8)%

SkinMedica®

24.7 26.8 (2.1) (7.8)%

Latisse®

15.9 23.2 (7.3) (31.5)%

Total Medical Dermatology 85.5 114.3 (28.8) (25.2)%

Aczone®

38.0 61.2 (23.2) (37.9)%

Tazorac®

14.1 27.5 (13.4) (48.7)%

Botox® Hyperhidrosis 16.8 16.3 0.5 3.1%

Other Medical Dermatology 16.6 9.3 7.3 78.5%

Total Neuroscience & Urology 395.4 342.5 52.9 15.4%

Botox® Therapeutics 367.2 313.5 53.7 17.1%

Rapaflo®

28.2 29.0 (0.8) (2.8)%

Other Neuroscience & Urology - - - n.a.

Other Revenues 16.3 13.7 2.6 19.0%

Net revenues 1,881.8$ 1,570.9$ 310.9$ 19.8%

ALLERGAN PLC

US Specialized Therapeutics Product Revenue


Table 9

Three Months Ended December 31, Change

44

Table 9 (cont’d): Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and twelve months ended December 31, 2017 and 2016

2017 2016 (1) Dollars %

Total Eye Care 2,460.2$ 2,437.7$ 22.5$ 0.9%

Restasis®

1,412.3 1,419.5 (7.2) (0.5)%

Alphagan®/Combigan

®377.3 376.6 0.7 0.2%

Lumigan®/Ganfort

®317.5 326.4 (8.9) (2.7)%

Ozurdex®

98.4 84.4 14.0 16.6%

Eye Drops 199.5 186.5 13.0 7.0%

Other Eye Care 55.2 44.3 10.9 24.6%

Total Medical Aesthetics 2,449.2 1,622.9 826.3 50.9%

Facial Aesthetics 1,362.8 1,226.3 136.5 11.1%

Botox® Cosmetics 812.2 729.2 83.0 11.4%

Fillers 501.1 446.9 54.2 12.1%

Kybella®

49.5 50.2 (0.7) (1.4)%

Plastic Surgery 242.6 210.4 32.2 15.3%

Breast Implants 242.6 206.0 36.6 17.8%

Other Plastic Surgery - 4.4 (4.4) (100.0)%


Alloderm®

321.2 - 321.2 n.a.





Skin Care 153.2 186.2 (33.0) (17.7)%

SkinMedica®

96.8 108.3 (11.5) (10.6)%

Latisse®

56.4 77.9 (21.5) (27.6)%

Total Medical Dermatology 340.8 396.5 (55.7) (14.0)%

Aczone®

166.3 217.3 (51.0) (23.5)%

Tazorac®

65.4 95.5 (30.1) (31.5)%

Botox® Hyperhidrosis 67.2 65.2 2.0 3.1%

Other Medical Dermatology 41.9 18.5 23.4 126.5%

Total Neuroscience & Urology 1,483.1 1,306.3 176.8 13.5%

Botox® Therapeutics 1,375.0 1,188.8 186.2 15.7%

Rapaflo®

108.1 116.6 (8.5) (7.3)%

Other Neuroscience & Urology - 0.9 (0.9) (100.0)%

Other Revenues 70.3 48.3 22.0 45.5%

Net revenues 6,803.6$ 5,811.7$ 991.9$ 17.1%

(1) Includes revenues earned that w ere distributed through our former Anda Distribution business to third party customers.

Twelve Months Ended December 31, Change

45

Table 10: Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and twelve months ended December 31, 2017 and 2016

2017 2016 Dollars %

Total Central Nervous System (CNS) 349.0$ 339.0$ 10.0 2.9%

Namenda XR®97.8 141.1 (43.3) (30.7)%

Namzaric®36.8 19.5 17.3 88.7%

Viibryd®/Fetzima®89.0 89.7 (0.7) (0.8)%

Vraylar™ 87.7 43.2 44.5 103.0%

Saphris®37.7 43.2 (5.5) (12.7)%

Namenda® IR - 2.3 (2.3) (100.0)%

Total Gastrointestinal (GI) 453.2 444.0 9.2 2.1%

Linzess®194.8 173.6 21.2 12.2%

Asacol®/Delzicol® 42.8 62.9 (20.1) (32.0)%

Carafate®/Sulcrate

®59.2 61.3 (2.1) (3.4)%

Zenpep®58.5 55.6 2.9 5.2%

Canasa®/Salofalk®47.0 43.7 3.3 7.6%

Viberzi® 42.9 38.0 4.9 12.9%

Other GI 8.0 8.9 (0.9) (10.1)%

Total Women's Health 285.8 314.5 (28.7) (9.1)%

Lo Loestrin®126.5 107.5 19.0 17.7%

Estrace® Cream 101.5 103.0 (1.5) (1.5)%

Minastrin® 24 5.3 78.4 (73.1) (93.2)%

Liletta®14.5 8.3 6.2 74.7%

Other Women's Health 38.0 17.3 20.7 119.7%

Total Anti-Infectives 66.6 58.0 8.6 14.8%

Teflaro®29.2 31.7 (2.5) (7.9)%

Dalvance®13.0 12.6 0.4 3.2%

Avycaz®18.5 9.2 9.3 101.1%

Other Anti-Infectives 5.9 4.5 1.4 31.1%

Diversified Brands 319.4 327.8 (8.4) (2.6)%

Bystolic® /Byvalson®157.5 159.8 (2.3) (1.4)%

Armour Thyroid 51.3 44.7 6.6 14.8%

Savella®23.9 29.1 (5.2) (17.9)%

Lexapro®12.4 15.8 (3.4) (21.5)%

Enablex®0.8 2.4 (1.6) (66.7)%

PacPharma 4.3 2.3 2.0 87.0%

Other Diversified Brands 69.2 73.7 (4.5) (6.1)%

Other Revenues 51.3 49.7 1.6 3.2%

Net revenues 1,525.3$ 1,533.0$ (7.7)$ (0.5)%

ALLERGAN PLC

US General Medicine Product Revenue


Table 10


46

Table 10 (cont’d): Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and twelve months ended December 31, 2017 and 2016

2017 2016 (1) Dollars %

Total Central Nervous System (CNS) 1,359.9$ 1,303.6$ 56.3 4.3%

Namenda XR®

452.8 627.6 (174.8) (27.9)%

Namzaric®

130.8 57.5 73.3 127.5%

Viibryd®/Fetzima

®333.2 342.3 (9.1) (2.7)%

Saphris®

155.2 166.8 (11.6) (7.0)%

Vraylar™

287.8 94.3 193.5 n.m.

Namenda® IR 0.1 15.1 (15.0) (99.3)%

Total Gastrointestinal (GI) 1,695.0 1,721.0 (26.0) (1.5)%

Linzess®

701.1 625.6 75.5 12.1%

Asacol®/Delzicol

®195.5 360.8 (165.3) (45.8)%

Carafate®/Sulcrate

®235.8 229.0 6.8 3.0%

Zenpep®

212.3 200.7 11.6 5.8%

Canasa®/Salofalk

®162.7 178.7 (16.0) (9.0)%

Viberzi®

156.6 93.3 63.3 67.8%

Other GI 31.0 32.9 (1.9) (5.8)%

Total Women's Health 1,044.2 1,179.6 (135.4) (11.5)%

Lo Loestrin®

459.3 403.5 55.8 13.8%

Estrace® Cream 366.6 379.4 (12.8) (3.4)%

Minastrin® 24 61.4 325.9 (264.5) (81.2)%

Liletta®

37.6 23.3 14.3 61.4%

Other Women's Health 119.3 47.5 71.8 151.2%

Total Anti-Infectives 257.3 225.1 32.2 14.3%

Teflaro®

121.9 133.6 (11.7) (8.8)%

Dalvance®

53.9 39.3 14.6 37.2%

Avycaz®

61.2 36.1 25.1 69.5%

Other Anti-Infectives 20.3 16.1 4.2 26.1%

Diversified Brands 1,242.6 1,366.6 (124.0) (9.1)%

Bystolic®

/Byvalson®

612.2 638.8 (26.6) (4.2)%

Armour Thyroid 169.1 166.5 2.6 1.6%

Savella®

98.2 103.2 (5.0) (4.8)%

Lexapro®

51.8 66.6 (14.8) (22.2)%

Enablex®

3.6 17.1 (13.5) (78.9)%

PacPharma 14.0 52.0 (38.0) (73.1)%

Other Diversified Brands 293.7 322.4 (28.7) (8.9)%

Other Revenues 197.2 128.0 69.2 54.1%

Net revenues 5,796.2$ 5,923.9$ (127.7)$ (2.2)%

(1) Includes revenues earned that w ere distributed through our former Anda Distribution business to third party customers.


47

Table 11: Allergan plc's product revenue for significant promoted products within the International segment for the three and twelve months ended December 31, 2017 and 2016

2017 2016 Dollars %

Total Eye Care 342.7$ 315.0$ 27.7$ 8.8%

Lumigan®/Ganfort

®99.7 92.5 7.2 7.8%

Alphagan®/Combigan

®46.7 42.0 4.7 11.2%

Ozurdex®

60.9 48.8 12.1 24.8%

Optive®

30.6 26.2 4.4 16.8%

Other Eye Drops 43.2 43.1 0.1 0.2%

Restasis®

14.6 18.3 (3.7) (20.2)%

Other Eye Care 47.0 44.1 2.9 6.6%

Total Medical Aesthetics 389.3 284.6 104.7 36.8%

Facial Aesthetics 311.4 244.0 67.4 27.6%

Botox® Cosmetics 155.0 127.1 27.9 22.0%


Belkyra® (Kybella

®) 1.7 0.7 1.0 142.9%

Plastic Surgery 40.6 37.8 2.8 7.4%

Breast Implants 40.1 37.4 2.7 7.2%

Earfold™

0.5 0.4 0.1 25.0%


Alloderm®

2.5 - 2.5 n.a.




Coolsculpting®

Consumables 15.3 - 15.3 n.a.

Skin Care 4.5 2.8 1.7 60.7%

Botox® Therapeutics and Other 160.6 138.3 22.3 16.1%


Asacol®/Delzicol

®13.4 13.2 0.2 1.5%

Constella®

5.8 4.6 1.2 26.1%

Other Products 44.5 37.5 7.0 18.7%

Other Revenues 23.3 15.3 8.0 52.3%

Net revenues 915.9$ 753.2$ 162.7$ 21.6%

ALLERGAN PLC

International Product Revenue



Table 11

48

Table 11 (cont’d): Allergan plc's product revenue for significant promoted products within the International segment for the three and twelve months ended December 31, 2017 and 2016

2017 2016 Dollars %

Total Eye Care 1,282.1$ 1,219.4$ 62.7$ 5.1%

Lumigan®/Ganfort

®371.5 361.7 9.8 2.7%

Alphagan®/Combigan

®175.1 169.3 5.8 3.4%

Ozurdex®

213.4 179.0 34.4 19.2%

Optive®

114.1 101.9 12.2 12.0%

Other Eye Drops 166.9 174.3 (7.4) (4.2)%

Restasis®

61.3 68.0 (6.7) (9.9)%

Other Eye Care 179.8 165.2 14.6 8.8%

Total Medical Aesthetics 1,366.6 1,064.6 302.0 28.4%

Facial Aesthetics 1,104.5 902.7 201.8 22.4%

Botox® Cosmetics 557.0 480.0 77.0 16.0%


Belkyra® (Kybella

®) 6.8 2.3 4.5 195.7%

Plastic Surgery 158.6 150.7 7.9 5.2%

Breast Implants 156.9 149.9 7.0 4.7%

Earfold™

1.7 0.8 0.9 112.5%


Alloderm®

7.5 - 7.5 n.a.





Skin Care 13.3 11.2 2.1 18.8%

Botox® Therapeutics and Other 587.4 537.3 50.1 9.3%


Asacol®/Delzicol

®50.2 53.7 (3.5) (6.5)%

Constella®

21.9 17.3 4.6 26.6%

Other Products 157.8 143.3 14.5 10.1%

Other Revenues 83.4 60.0 23.4 39.0%

Net revenues 3,319.5$ 2,881.3$ 438.2$ 15.2%


49

Table 12: Reconciliation of anticipated GAAP loss from continuing operations to non-GAAP performance net income attributable to shareholders for the three months ending March 31, 2018 and the twelve months ending December 31, 2018

LOW HIGH LOW HIGH

(380.0)$ (308.0)$ (743.0)$ (480.0)$

1,700.0 1,700.0 6,450.0 6,450.0

150.0 150.0 480.0 480.0

5.0 5.0 (10.0) (10.0)

- - 200.0 200.0

- - - -

15.0 15.0 20.0 20.0

- - - -

(365.0) (365.0) (1,060.0) (1,060.0)

1,125.0 1,197.0 5,337.0 5,600.0

(1.13)$ (0.92)$ (2.16)$ (1.40)$

3.20$ 3.40$ 15.25$ 16.00$

336.0 336.0 344.0 344.0

16.0 16.0 6.0 6.0

352.0 352.0 350.0 350.0

Diluted earnings per share

(in millions, except per share information)

Table 12

Acquisition, divestiture, licensing and other non-recurring charges

Accretion and fair-value adjustments to contingent

considerationImpairment/asset sales and related costs

Legal settlements

Income taxes on items above and other discrete income tax adjustments

Non-GAAP performance net income attributable to shareholders

Non-recurring (gains) / losses


Three months ending March 31, 2018

GAAP (loss) from continuing operations attributable to shareholders

Adjusted for:

Amortization

Twelve months ending December 31,

2018

Basic weighted average ordinary shares outstanding

Effect of dilutive securities:

Dilutive shares

Diluted weighted average ordinary shares outstanding

Diluted (loss) per share from continuing operations attributable to

shareholders- GAAP

Non-GAAP performance diluted net income per share attributable to

shareholders

50

Table 13: 2017 and 2016 YTD Revenue Performance Drivers by product

US Specialized

Therapeutics

US General

Medicine International Corporate Total

US Specialized

Therapeutics

US General

Medicine International Corporate Total Total Change

Total Change

Percentage

Botox® 2,254.4$ -$ 914.5$ 3,168.9$ 1,983.2$ -$ 803.0$ 2,786.2$ 382.7$ 13.7%

Juvederm Collection 501.1 - 540.7 1,041.8 446.9 - 420.4 867.3 174.5 20.1%

Linzess®/Constella® - 701.1 21.9 723.0 - 625.6 17.3 642.9 80.1 12.5%

Lumigan®/Ganfort® 317.5 - 371.5 689.0 326.4 - 361.7 688.1 0.9 0.1%

Bystolic® /Byvalson® - 612.2 2.2 614.4 - 638.8 1.7 640.5 (26.1) -4.1%

Alphagan®/Combigan® 377.3 - 175.1 552.4 376.6 - 169.3 545.9 6.5 1.2%

Eye Drops 199.5 - 281.0 480.5 186.5 - 276.2 462.7 17.8 3.8%

Lo Loestrin® - 459.3 - 459.3 - 403.5 - 403.5 55.8 13.8%

Breast Implants 242.6 - 156.9 399.5 206.0 - 149.9 355.9 43.6 12.3%

Viibryd®/Fetzima® - 333.2 3.1 336.3 - 342.3 - 342.3 (6.0) -1.8%

Alloderm 321.2 - 7.5 328.7 - - - - 328.7 0.0%

Vraylar™ - 287.8 - 287.8 - 94.3 - 94.3 193.5 205.2%

Coolsculpting Consumables 150.1 - 41.6 191.7 - - - - 191.7 0.0%

Ozurdex ® 98.4 - 213.4 311.8 84.4 - 179.0 263.4 48.4 18.4%

Carafate ® /Sulcrate ® - 235.8 2.9 238.7 - 229.0 2.4 231.4 7.3 3.2%

Zenpep® - 212.3 - 212.3 - 200.7 - 200.7 11.6 5.8%

Coolsculpting Systems & Add On Applicators 106.6 - 32.1 138.7 - - - - 138.7 0.0%

Viberzi® - 156.6 0.5 157.1 - 93.3 - 93.3 63.8 68.4%

Namzaric® - 130.8 - 130.8 - 57.5 - 57.5 73.3 127.5%

Teflaro® - 121.9 - 121.9 - 133.6 - 133.6 (11.7) -8.8%

Dalvance® - 53.9 2.4 56.3 - 39.3 - 39.3 17.0 43.3%

Avycaz® - 61.2 - 61.2 - 36.1 - 36.1 25.1 69.5%

Kybella® /Belkyra® 49.5 - 6.8 56.3 50.2 - 2.3 52.5 3.8 7.2%

Other Regenerative medicines 112.7 - 9.0 121.7 - - - - 121.7 0.0%

Other Promoted and New Launch Products 25.2 - 14.4 39.6 - 6.3 6.3 33.3 528.6%

Total Promoted and New Launches 4,756.1 3,366.1 2,797.5 10,919.7 3,660.2 2,894.0 2,389.5 8,943.7 1,976.0 22.1%

Restasis® 1,412.3 - 61.3 1,473.6 1,419.5 - 68.0 1,487.5 (13.9) -0.9%

Namenda XR® - 452.8 - 452.8 - 627.6 - 627.6 (174.8) -27.9%

Estrace® Cream - 366.6 - 366.6 - 379.4 - 379.4 (12.8) -3.4%

Asacol®/Delzicol® - 195.5 50.2 245.7 - 360.8 53.7 414.5 (168.8) -40.7%

Aczone® 166.3 - 0.5 166.8 217.3 - - 217.3 (50.5) -23.2%

Canasa®/Salofalk® - 162.7 18.3 181.0 - 178.7 17.7 196.4 (15.4) -7.8%

Rapaflo® 108.1 - 7.3 115.4 116.6 - 5.8 122.4 (7.0) -5.7%

Minastrin® 24 - 61.4 - 61.4 - 325.9 1.4 327.3 (265.9) -81.2%

Namenda® IR - 0.1 - 0.1 - 15.1 - 15.1 (15.0) -99.3%

Total Top Brands with LOE/Risk 1,686.7 1,239.1 137.6 3,063.4 1,753.4 1,887.5 146.6 3,787.5 (724.1) -19.1%

Saphris® - 155.2 - 155.2 - 166.8 - 166.8 (11.6) -7.0%

Tazorac® 65.4 - 0.7 66.1 95.5 - 0.8 96.3 (30.2) -31.4%

SkinMedica® 96.8 - 3.7 100.5 108.3 - - 108.3 (7.8) -7.2%

Latisse® 56.4 - 8.3 64.7 77.9 - 8.5 86.4 (21.7) -25.1%

Liletta® - 37.6 - 37.6 - 23.3 - 23.3 14.3 61.4%

Armour Thyroid - 169.1 - 169.1 - 166.5 - 166.5 2.6 1.6%

Savella® - 98.2 - 98.2 - 103.2 - 103.2 (5.0) -4.8%

Lexapro® - 51.8 - 51.8 - 66.6 - 66.6 (14.8) -22.2%

Enablex® - 3.6 - 3.6 - 17.1 - 17.1 (13.5) -78.9%

Other Products Revenues 142.2 675.5 371.7 21.4 1,210.8 116.4 598.9 335.9 33.7 1,084.9 125.9 11.6%

Less product sold through our former Anda Distribution business n.a. n.a. n.a. - - n.a. n.a. n.a. (80.0) (80.0) 80.0 -100.0%

Total all other 360.8 1,191.0 384.4 21.4 1,957.6 398.1 1,142.4 345.2 (46.3) 1,839.4 118.2 6.4%

Total Net Revenues 6,803.6$ 5,796.2$ 3,319.5$ 21.4$ 15,940.7 5,811.7$ 5,923.9$ 2,881.3$ (46.3)$ 14,570.6 1,370.1$ 9.4%

Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2017 Movement

51

fourth quarter and full year 2017 earnings … · fourth quarter and full year 2017 earnings...

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