fourth quarter & calendar year 2016 earnings conference ... c… · improved corporate...

Fourth Quarter & Calendar Year 2016 Earnings Conference Call

May 23, 2017

Certain statements in this presentation are “forward-looking statements.” These statements relate to future events or the Company’s future financial performance and

involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or

its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified

by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or the negative of those

terms or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and

projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only

predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, including: the timing, amount and cost of any

share repurchases; future impairment charges; customer acceptance of new products; competition from other industry participants, some of whom have greater

marketing resources or larger market shares in certain product categories than we do; pricing pressures from customers and consumers; potential third-party claims

and litigation, including litigation relating to our restatement of previously-filed financial information; potential impacts of ongoing or future government investigations

and regulatory initiatives; general economic conditions; fluctuations in currency exchange rates and interest rates; the consummation of announced acquisitions or

dispositions, and our ability to realize the desired benefits thereof; our ability to achieve our guidance, and our ability to execute and achieve the desired benefits of

announced cost-reduction efforts and other initiatives. In addition, the Company may identify and be unable to remediate one or more material weaknesses in its

internal control over financial reporting, may encounter unanticipated material issues or additional adjustments that could delay the filing of required periodic reports

with the United States Securities and Exchange Commission, or may be unable to regain compliance with the NYSE continued listing rules. Furthermore, the Company

and/or its subsidiaries may incur additional tax liabilities in respect of 2016 and prior years as a result of any restatement or may be found to have breached certain

provisions of Irish company legislation in respect of prior financial statements and if so may incur additional expenses and penalties. These and other important factors,

including those discussed under “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2016, as well as the Company’s subsequent filings with

the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied

by these forward-looking statements. The forward-looking statements in this presentation are made only as of the date hereof, and unless otherwise required by

applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise.

Non-GAAP Measures

This presentation contains non-GAAP measures. The reconciliation of those measures to the most comparable GAAP measures is included at the end of this

presentation. A copy of this presentation, including the reconciliations, is available on the Company’s website at www.perrigo.com.

2

Forward – Looking Statements

3 3

John Hendrickson

Agenda

4 4

Call Agenda

I. Foundation for Growth

IV. Noteworthy Impacts of the Restatement

VI. Calendar Year 2017 Guidance

III. Calendar Year & Fourth Quarter 2016 Results

V. Fourth Quarter 2016 Financial Results

II. Form 10-K Filing

VII. Durable Business Model

5 5

I. Foundation for Growth Focused Execution Against 2017 Plan

Key Actions to Create Value

Moved efficiently to drive portfolio

strategies

Improved corporate governance

Implemented cost initiatives across the

organization

New leadership team focused on driving

growth

Debt pay-down strategy to enhance

financial flexibility

Execute against 2017 plan; file Q1

financials as soon as practical

Pharmaceutical

Supply

Chain

Fast Moving

Consumer

Goods

Pharmaceutical

Supply Chain

FMCG

Quality Affordable

Healthcare Products®

6 6

2016 Form 10-K (“Jumbo 10-K”)

• Updated financial information for the fiscal years ended

June 28, 2014 and June 27, 2015; the transition period

from June 28, 2015 to December 31, 2015

2016 Forms 10-Q/A

• Updated financial information for the quarterly periods

ended April 2, 2016, July 2, 2016 and October 1, 2016

Recast historical financial results to be filed on Form 8-

K to assist in modeling

Information Filed

II. Form 10-K Filing

Completed All Historical Filings within Four Weeks

7 7 (1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts

.

Updated

2016

Guidance

Announced

8/10/2016

Impact of

Tysabri®

Accounting

Change

Final 2016 Guidance

(adjusted for Tysabri®

accounting change)

Restated

Financial

Results

Announced

5/22/2017

Performance

vs. Final Guidance

Consolidated

Adjusted Net Sales1 $5.3 - $5.5B $(352M) $5.0B - $5.2B $5.2B High End of Range

Adjusted EPS1 $6.85 - $7.15 $(2.14) $4.70 - $5.00 $5.07 Outperformed Range

Operating Cash

Flow >$0.9B $(351M) >$550M $611M Outperformed Range

III. Performance vs. Updated 2016 Guidance – Excluding Tysabri® Outperformed or Performed at High End of Final Guidance Ranges

Strong finish to end the year

Achieved Final 2016 Guidance

Solid cash flow

Calendar 2016 Key Takeaways

8 8

($ in millions) Q4 2016 Q4 2015 % Change

Y/Y

% Change Constant

Currency Y/Y

Adjusted Consolidated Perrigo Net Sales(2) $1,331 $1,315 1 % 4 %

Adjusted Operating Income 259 266 (3 %)

Adjusted CHC Americas Net Sales(2) 627 599 5 % 5 %

Adjusted Operating Income 139 125 11 %

CHC International Net Sales 420 434 (3 %) 3 %

Adjusted Operating Income 36 53 (31 %)

Rx Pharmaceuticals Net Sales 266 259 3 % 3 %

Adjusted Operating Income 115 109 5 %

(1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts

(2) For comparative purposes, fourth quarter 2015 net sales have been adjusted in this presentation to exclude $44 million of sales attributable to the U.S. VMS business, which was sold in the third quarter 2016; this 2015 net sales

adjustment does not impact any other prior year amounts or metrics

III. Net Sales and Operating Income As Adjusted(1) – Q4 2016 Growth in All Segments

9 9

Noteworthy Impacts of the Restatement

Fourth Quarter 2016 Financial Results

Calendar Year 2017 Guidance

Ron Winowiecki

10 10

GAAP Net

Income ($M)

GAAP

EPS

2/27/17 Presentation $ (4,142) $ (28.91)

1. Tysabri® $ (77) $ (0.54)

2. Omega DTA $ (32) $ (0.22)

1. Tysabri® royalty asset treated as financial

asset rather than intangible asset

Remove Tysabri® royalty stream from net sales

Remove the amortization expense associated

with the intangible asset

Include quarterly changes in fair value of the

financial asset as a component of non-cash

other income/expense

2. Identification of certain Omega deferred tax

assets

Reduction of goodwill, offset by a

corresponding reduction to net deferred tax

liabilities at the date of the Omega acquisition

Noteworthy Impacts of Restatement


Changes From 2/27/17 GAAP Metrics

11 11

3. Impairment Adjustments

As a result of the reduction of goodwill related

to the identification of Omega deferred tax

assets, revision of goodwill impairments taken

since acquisition

Animal Health Reporting Unit impairment

identified in Q4 2016 determined to be related

to goodwill rather than intangible assets

originally identified

4. Finalization of Taxes

Certain deferred tax asset valuation allowances

were adjusted to reflect more recent forecasted

information including the sale of the Tysabri®

royalty stream in Q1 2017

5. Other Previously Identified Adjustments

Noteworthy Impacts of Restatement


GAAP Net

Income ($M)

GAAP

EPS

2/27/17 Presentation $ (4,142) $ (28.91)

1. Tysabri® $ (77) $ (0.54)

2. Omega DTA $ (32) $ (0.22)

3. Impairment Adjustments $ 126 $ 0.88

4. Finalization of Taxes $ 109 $ 0.76

5. Other Adjustments $ 3 $ 0.02

5/22/17 Reported GAAP $ (4,013) $ (28.01)

Total change in GAAP from

2/27/17 $ 129 $ 0.90

Changes From 2/27/17 GAAP Metrics


Updated

2016

Guidance

Announced

8/10/2016

Impact of

Tysabri®

Accounting

Change

Final 2016 Guidance

(adjusted for Tysabri®

accounting change)

Restated

Financial

Results

Announced

5/22/2017

Performance

vs. Final Guidance

Consolidated

Adjusted Net Sales1 $5.3 - $5.5B $(352M) $5.0B - $5.2B $5.2B High End of Range

Adjusted EPS1 $6.85 - $7.15 $(2.14) $4.70 - $5.00 $5.07 Outperformed Range

Operating Cash

Flow >$0.9B $(351M) >$550M $611M Outperformed Range

V. Performance vs. Updated 2016 Guidance – Excluding Tysabri® Outperformed or Performed at High End of Final Guidance Ranges

13 13

($ in millions, except per share amounts)

Q4 2016 Q4 2016 Q4 2015 Reported Non-GAAP Adjustments

Reported Adjusted(1) Reported Change YoY %

Net Sales $1,331 NM $1,359 (2 %)

Gross Profit $488 $554 $544 (10 %)

R&D Expense 42 42 47 (11 %)

Distribution, Selling & Administrative Expense ("DSG&A") 315 254 365 (13 %)

Restructuring and Impairments $615 — $240 156 %

Operating Income (Loss) $(485) $259 ($108) 350 %

Interest , Other and Expense Associated with change in fair value of the Tysabri® royalty stream

1,159 53 178 NM

Net Income (Loss) $(1,359) $178 $(218) NM

Diluted Earnings (Loss) Per Share $(9.48) $1.24 $(1.51) NM


NM = Not meaningful

V. Consolidated – Q4 2016 Financial Information

• Amortization of intangible assets

• Goodwill and intangible asset

impairment charges

• Tysabri® royalty stream change in

fair value

14 14

• Adjusted net sales increased 5% on a constant

currency basis(2)

• Strong demand in U.S. Consumer Healthcare,

driven by increased sales in the infant formula,

antacid and smoking cessation categories

• New product sales of $27 million

• Margins driven by product mix and supply chain

efficiencies, partially offset by price erosion in

certain OTC categories

$223M

Adjusted Gross Profit Adjusted Operating Income

Adjusted Gross Margin(3) Adjusted Operating Margin (3)

$139M

35.5% 22.2%

+11 % +2 %

+270 bps

+150 bps

2016 Q4 Year-Over-Year Adjusted Net Sales Growth(2)


(2) For comparative purposes, fourth quarter 2015 net sales have been adjusted in this presentation to exclude $44 million of sales attributable to the U.S. VMS business, which was sold in the third quarter 2016; this 2015 net sales

adjustment does not impact any other prior year amounts or metrics

(3) Q4 2016 and 2015 adjusted gross margin and operating margin use reported net sales as the denominator

V. CHC Americas Segment As Adjusted(1) – Q4 2016 in

mill

ion

s

$599

$627

$500.0

$530.0

$560.0

$590.0

$620.0

$650.0

Q4 2015 Q4 2016Q4 2015 Q4 2016

15 15

$434

$420

$380.0

$390.0

$400.0

$410.0

$420.0

$430.0

$440.0

$450.0

$460.0

Q4 2015 Q4 2016

2016 Q4 Year-Over-Year Net Sales

• Net sales on a constant currency basis

increased 3% as foreign currency had a negative

impact of $26 million

• New product sales of $26 million primarily from

line extensions

• Increases in net sales offset partially by lifestyle

and natural health/vitamins categories and lower

sales in the German and French markets

• Margins impacted by higher net sales in the

Belgian distribution business, which was exited

at the end of Q4

• Excluding the exited Belgium distribution

business from both years, adjusted gross margin

of 51.4% was 242 basis points lower year-over-

year

$176M


Adjusted Gross Margin(2) Adjusted Operating Margin(2)

$36M

41.9% 8.7%

-31 % -15 %

-340 bps

-590 bps



V. CHC International Segment As Adjusted(1) – Q4 2016 in

mill

ion

s

Q4 2015 Q4 2016

$445

constant currency



• Net sales on a constant currency basis increased

3% driven primarily by net sales from product

acquisitions and new product sales of $15 million

• Price erosion in line with expectations

• Adjusted operating margin increased 110 bps

2016 Q4 Year-Over-Year Net Sales Growth

$149M


Adjusted Gross Margin(2) Adjusted Operating Margin(2)

$115M

56.1% 43.2%

+5 % +3 %

+110 bps

+10 bps

V. Rx Pharmaceuticals Segment As Adjusted(1) – Q4 2016 in

mill

ion

s

$259 $266

$240.0

$250.0

$260.0

$270.0

$280.0

Q4 2015 Q4 2016Q4 2015 Q4 2016

17 17

V. Balance Sheet

17

Executing on Debt Pay-down Strategy

Committed to maintaining investment grade profile

Make-whole call on our $600M 2.300% notes due 2018 completed on May 8, 2017

2017 Mid-year debt pay-down assumption yields second half interest $40M lower than first half

Total Cash

$622M Total Debt

$5.8B

As of December 31, 2016

18 18

2017 Guidance

Announced

2/27/2017

Exclude

Tysabri®

New 2017

Guidance

Consolidated Net Sales $5.0B - $5.2B $(359M) $4.6B - $4.8B

Consumer Healthcare Americas ~$2.4B ~$2.4B

Consumer Healthcare International ~$1.4B ~$1.4B

Prescription Pharmaceuticals ~$925M ~$925M

Adjusted EPS(2) $6.30 - $6.65 $(2.15) $4.15 - $4.50

Operating Cash Flow >$850M $(300M)(1) >$575M

VI. Calendar Year 2017 Guidance to Exclude Tysabri®

No Change in Underlying

Strength of Business

(1) Tysabri® cash flow after-tax, assumes $2.1 billion mid-year debt reduction, which equates to estimated second half interest savings of $40 million


Operating Cash Flow guidance increased by $25M from 2/27/2017

19 19

Calendar Year 2017 Calendar Year

2017 Guidance

Net Sales $4.6B – $4.8B

DSG&A as % of Net Sales(2) ~20%

R&D as % of Net Sales(2) ~4%

Adjusted Operating Income $930M – $990M

Interest Expense ~$175M

Adjusted Effective Tax Rate ~19.5%

Adjusted EPS $4.15 – $4.50

Diluted Shares Outstanding ~144M

Operating Cash Flow >$575M

(1) See attached appendix for reconciliation of adjusted (non-GAAP) to reported (GAAP) amounts

(2) Percentages are +/- 75 basis points

CHC

Americas ~$2.4B

CHC

International ~$1.4B

Rx Pharma ~$925M

VI. Calendar Year 2017 Guidance(1)

Expect first half results weighted towards first quarter; Full-year results weighted towards

second half

Adjusted

Operating

Margin

Net Sales

Guidance

Low

20%

Low – Mid

Teens

High

30%

20 20

John Hendrickson

Leveraging the Perrigo Advantage

21 21

21.1% 22.1%

21.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

CY14 CY15 CY16

in m

illio

ns (

$)

Rx + Other Consumer-Facing Businesses Adjusted Net Sales Consolidated Adjusted Operating Margin

73%

77%

78%

Consumer-Facing Business(1)

VII. Durable Business Model Approximately 80% of Perrigo is Consumer-Facing

Key Competitive Advantages

Consumer Focused Assets

Global Operating Platform

Efficient Supply Chain

130-Year Legacy as a Trusted

Partner

Leader in Innovation


22 22

Contact

Bradley Joseph

Vice President,

Global Investor Relations and Corporate Communications

(269) 686-3373

[email protected]

23 23

Calendar Year 2016 Results

23


(2) Calendar-year data for 2015 was derived from the Company’s audited results for the six-month period ended December 31, 2015 and unaudited results for the fiscal quarters ended March 28, 2015 and June 27, 2015

(3) June 30, 2016 exchange rates were used as the basis for updated calendar year 2016 guidance

(4) Excludes the expected results of held-for-sale businesses

Calendar

Year 2015(2)

Calendar Year

2016 Guidance

at June 30,

2016 Rates

Presented Aug.

10, 2016;

Reaffirmed Nov,

10, 2016

Calendar Year

2016 Guidance

at June 30, 2016

Rates

Pro-forma

Without Tysabri®

Impact of Dec.

31, 2016 Rates

Compared to

June 30, 2016

Rates

Operational

Impact

(midpoint to

actual)

Calendar

Year 2016

Net Sales $5.0B $5.3 - $5.5B (1),(3),(4)

$5.0 - $5.2B (1),(3),(4)

$(14M) $82M $5.2B (1),(4)

Adjusted

Diluted

EPS(1)

$5.57/share $6.85 -

$7.15/share

$4.70 -

$5.00/share (3),(4)

$(0.00)/share $0.22/share $5.07/share

24 24

TABLE I

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended December 31, 2016

Consolidated Net Sales Gross Profit R&D Expense DSG&A

Expense

Restructuring and Impairment

Charges Operating

Income (Loss)

Interest, Other, and Change in Fair Value of

Tysabri®

Royalty Stream Net Income

(Loss)

Diluted Earnings (Loss)

per Share

Reported $ 1,331.2 $ 487.7 $ 41.6 $ 315.4 $ 615.3 $ (484.6 ) $ 1,159.3 $ (1,359.1 ) $ (9.48 )

Adjustments:

Tysabri® royalty stream - change in fair value $ — $ — $ — $ — $ — $ (1,115.6 ) $ 1,115.6 $ 7.78

Impairment charges — — — (602.2 ) 602.2 1.7 600.5 4.18

Amortization expense related primarily to acquired intangible assets 62.0 (0.1 ) (32.8 ) — 94.9 — 94.9 0.67

Unusual litigation — — (18.4 ) — 18.4 — 18.4 0.13

Restructuring charges — — — (13.1 ) 13.1 — 13.1 0.09

Operating results attributable to held-for-sale businesses* 4.2 — (7.3 ) — 11.5 — 11.5 0.08

Acquisition and integration-related charges — — (3.0 ) — 3.0 (0.3 ) 3.3 0.02

Gain on divestitures — — — — — 7.8 (7.8 ) (0.05 )

Non-GAAP tax adjustments*** — — — — — — (312.9 ) (2.18 )

Adjusted $ 553.9 $ 41.5 $ 253.9 $ — $ 258.5 $ 52.9 $ 177.5 $ 1.24

As a % of adjusted net sales 41.6 % 19.4 %

Diluted weighted average shares outstanding

Reported 143.4

Effect of dilution as reported amount was a loss, while adjusted amount was income** 0.2

Adjusted 143.6

*Held-for-sale businesses include the European sports brand and the India API business.

**In the period of a net loss, diluted shares outstanding equal basic shares outstanding.

*** The non-GAAP tax adjustment includes the following: (1) $(187.1) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $20.6 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) Discrete income tax adjustments of $(26.9) million related to jurisdictional tax rate changes in France & Italy, $102.6 million net impact of valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures and $(222.1) million valuation allowance release due to the sales of Tysabri. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income.

25 25

TABLE I (CONTINUED)

PERRIGO COMPANY PLC




(unaudited)

Three Months Ended December 31, 2015

Consolidated Net Sales Gross Profit

R&D Expense

DSG&A Expense


Charges Operating

Income (Loss)

Interest and Other

Expense Pretax Income

(Loss)

Income Tax Expense (Benefit)

Net Income (Loss)

Diluted Earnings (Loss) per

Share

Reported $ 1,359.1 $ 543.7 $ 46.6 $ 364.5 $ 240.3 $ (107.7 ) $ 178.3 $ (286.0 ) $ (67.6 ) $ (218.4 ) $ (1.51 )

Adjustments:

Tysabri® royalty stream - change in fair value $ — $ — $ — $ — $ — $ (116.6 ) $ 116.6 $ — $ 116.6 $ 0.80

Amortization expense related primarily to acquired intangible assets 38.2 (0.2 ) (16.5 ) — 54.9 — 54.9 — 54.9 0.38

Acquisition and integration-related charges — — (8.5 ) — 8.5 (0.8 ) 9.3 — 9.3 0.06

Legal and consulting fees related to Mylan defense — — (71.3 ) — 71.3 — 71.3 71.3 0.49

Impairment charges — — — (215.6 ) 215.6 (10.7 ) 226.3 — 226.3 1.56

Unusual litigation — — 1.7 — (1.7 ) — (1.7 ) (1.7 ) (0.01 )

Losses on equity method investments — — — — — (2.7 ) 2.7 — 2.7 0.02

Loss on debt extinguishment — — — — — (0.9 ) 0.9 — 0.9 0.01

Restructuring charges — — — (24.7 ) 24.7 — 24.7 — 24.7 0.17

Non-GAAP tax adjustments*** — — — — — — — 84.2 (84.2 ) (0.58 )

Adjusted $ 581.9 $ 46.4 $ 269.9 $ — $ 265.6 $ 46.6 $ 219.0 $ 16.6 $ 202.4 $ 1.39

As a % of reported net sales 42.8 % 19.5 %

2015 QTD Net Sales excluding the U.S. VMS business and the European sports brand Diluted weighted average shares outstanding

Reported $ 1,359.1 Reported 144.9

Operating results attributable to held-for-sale businesses* (44.5 ) Effect of dilution as reported amount was a loss, while adjusted amount was income**. 0.5

Adjusted $ 1,314.6 Adjusted 145.4

*Held-for-sale businesses include the U.S. VMS business and European sports brand.


*** The non-GAAP tax adjustment includes the following: (1) $(91.4) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $0.4 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $6.8 million discrete income tax adjustments related to debt restructuring for the acquisition of Omega. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income.

26 26

TABLE I (CONTINUED)

PERRIGO COMPANY PLC




(unaudited)

Twelve Months Ended December 31, 2016


R&D Expense

DSG&A Expense


Charges

Operating Income (Loss)

Interest, Other, and Change in Fair Value of

Tysabri® Royalty Stream

Pretax Income (Loss)

Income tax

expense (benefit)

Net Income (Loss)

Diluted Earnings (Loss) per Share

Reported $ 5,280.6 $ 2,051.8 $ 184.0 $ 1,205.5 $ 2,662.0 $ (1,999.7 ) $ 2,848.6 $ (4,848.

3 ) $ (835.5 ) $ (4,012.8 ) $ (28.01 )

Adjustments:

Impairment charges $ — $ — $ — $ — $ (2,631.0 ) $ 2,631.0 $ (22.4 ) $ 2,653.4 $ — $ 2,653.4 $ 18.48

Tysabri® royalty stream - change in fair value — — — — — — (2,608.2 ) 2,608.2 — 2,608.2 18.16

Amortization expense related primarily to acquired intangible assets — 226.7 (0.9 ) (136.3 ) — 363.9 — 363.9 — 363.9 2.59

Restructuring charges — — — — (31.0 ) 31.0 — 31.0 — 31.0 0.22

Acquisition and integration-related charges — 4.7 — (19.6 ) — 24.3 (1.1 ) 25.4 — 25.4 0.18

Unusual litigation — — — (18.4 ) — 18.4 — 18.4 — 18.4 0.13

Operating results attributable to held-for-sale businesses* (112.8 ) (11.4 ) (1.2 ) (25.5 ) — 15.3 — 15.3 — 15.3 0.11

Losses on equity method investments — — — — — — (4.2 ) 4.2 — 4.2 0.03

Gain on divestitures — — — — — — 7.7 (7.7 ) — (7.7 ) (0.05 )

Non-GAAP tax adjustments*** — — — — — — — — 971.3 (971.3 ) (6.77 )

Adjusted $ 5,167.8 $ 2,271.8 $ 181.9 $ 1,005.7 $ — $ 1,084.2 $ 220.4 $ 863.8 $ 135.8 $ 728.0 $ 5.07

As a % of sales 44.0 % 21.0 %

*Held-for-sale businesses include the U.S. VMS business, European sports brand, and India API business Diluted weighted average shares outstanding

**In the period of a net loss, diluted shares outstanding equal basic shares outstanding. Reported 143.3

***The non-GAAP tax adjustment includes the following: (1) $(802.5) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) Discrete income tax adjustments of: $(49.3) million related to jurisdictional tax rate changes in Italy, UK, Germany & France, $102.6 million net impact of valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures, and $(222.1) million valuation allowance release due to the sale of Tysabri. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income.

Effect of dilution as reported amount was a loss, while adjusted amount was income** 0.3

Adjusted 143.6

27 27

TABLE I (CONTINUED)

PERRIGO COMPANY PLC




(unaudited)

Twelve Months Ended December 31, 2015


R&D Expense

DSG&A Expense


Charges Operating Income

Interest and Other Expense

Pretax income

Income Tax

Expense

Net Income (Loss)

Diluted Earnings (Loss) per

Share

Reported $ 5,014.7 $ 2,049.4 $ 186.3 $ 1,162.5 $ 250.2 $ 450.4 $ 391.2 $ 59.2 $ 61.1 $ (1.9 ) $ (0.01 )

Adjustments:

Losses on acquisition-related foreign currency hedges $ — $ — $ — $ — $ — $ (268.5 ) $ 268.5 $ — $ 268.5 $ 1.87

Amortization expense related primarily to acquired intangible assets 156.1 (0.4 ) (95.1 ) — 251.7 — 251.7 — 251.7 1.76

Impairment charges — — (0.4 ) (222.4 ) 222.8 (12.5 ) 235.3 — 235.3 1.64

Legal and consulting fees related to Mylan defense — — (100.3 ) — 100.3 — 100.3 — 100.3 0.70

Acquisition and integration-related charges — — (35.2 ) — 35.2 (0.5 ) 35.7 — 35.7 0.25

Restructuring charges 0.4 — — (27.8 ) 28.2 — 28.2 — 28.2 0.20

Loss on debt extinguishment — — — — — (20.5 ) 20.5 — 20.5 0.14

Initial payment made in connection with an R&D arrangement — (18.0 ) — — 18.0 — 18.0 — 18.0 0.13

Losses on equity method investments — — — — — (10.7 ) 10.7 — 10.7 0.07

Unusual litigation — (0.3 ) — 0.3 — 0.3 — 0.3 —

Tysabri® royalty stream - change in fair value — — — — — 88.8 (88.8 ) — (88.8 ) (0.62 )

Non-GAAP tax adjustments*** — — — — — — — 79.6 (79.6 ) (0.56 )

Adjusted $ 2,205.9 $ 167.9 $ 931.2 $ — $ 1,106.9 $ 167.3 $ 939.6 $ 140.7 $ 798.9 $ 5.57

As a % of sales 44.0 % 22.1 %

2015 YTD Net Sales excluding the U.S. VMS business and the European sports brand Diluted weighted average shares outstanding

Reported $ 5,014.7 Reported 144.6

Operating results attributable to held-for-sale businesses* (162.6 )

Weighted average effect of 6.8 million shares issued on November 26, 2014 to finance the Omega acquisition, which closed on March 30, 2015. In addition, effect of dilution as reported amount was a loss, while adjusted amount was income**. (1.2 )

Adjusted $ 4,852.1 Adjusted 143.4

*Held-for-sale businesses include the U.S. VMS business and the European sports brand.


*** The non-GAAP tax adjustment includes the following: (1) $(135.5) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $2.5 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $53.4 million of discrete income tax adjustments related to debt restructuring for the acquisition of Omega. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income.

28 28

TABLE II

PERRIGO COMPANY PLC


SELECTED SEGMENT INFORMATION

(in millions)

(unaudited)

Three Months Ended Three Months Ended

December 31, 2016 December 31, 2015

Consumer Healthcare Americas Net Sales Gross Profit Operating Income Net Sales Gross Profit

Operating Income

Reported $ 626.8 $ 210.0 $ 83.3 $ 643.2 $ 206.2 $ 92.8

Adjustments:

Amortization expense related primarily to acquired intangible assets $ 12.6 $ 17.7 $ 12.2 $ 17.9

Unusual litigation — 10.2 — 0.3

Impairment charges — 27.1 — 1.5

Restructuring charges — (0.1 ) — 12.8

Acquisition and integration-related charges — 1.2 — —

Adjusted $ 222.6 $ 139.4 $ 218.4 $ 125.3

As a % of reported net sales 35.5 % 22.2 % 34.0 % 19.5 %

For Comparative Purposes*

Reported $ 643.2

Operating results attributable to held-for-sale business (44.3 )

Adjusted $ 598.9

*Q4 2015 net sales adjustment made for comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. Q4 2015 gross margin and operating margin use reported net sales as the denominator.

29 29

TABLE II (CONTINUED)

PERRIGO COMPANY PLC



(in millions)

(unaudited)



Consumer Healthcare International Net Sales Gross Profit Operating

Income (Loss) Net Sales Gross Profit Operating

Income (Loss)

Reported $ 419.5 $ 151.3 $ (76.1 ) $ 434.3 $ 196.3 $ (155.5 )

Adjustments:

Amortization expense related primarily to acquired intangible assets 20.8 48.4 11.4 23.0

Impairment charges — 34.1 — 185.1

Unusual litigation — 8.2 — —

Operating results attributable to held-for-sale business* 3.6 10.3 — —

Restructuring charges — 10.5 — 0.2

Acquisition and integration-related charges — 1.0 — (0.2 )

Adjusted $ 175.7 $ 36.4 $ 207.7 $ 52.6


*Held-for-sale business includes European sports brand

30 30

TABLE II (CONTINUED)

PERRIGO COMPANY PLC



(in millions)

(unaudited)



Prescription Pharmaceuticals Net Sales Gross Profit Operating Income Net Sales Gross Profit

Operating Income

Reported $ 265.9 $ 121.0 $ (258.5 ) $ 259.1 $ 130.8 $ 94.3

Adjustments:

Amortization expense related to acquired intangible assets 28.0 28.1 14.2 14.3

Unusual litigation — — — (2.0 )

Restructuring charges — 2.1 — 2.6

Impairment charges — 342.4 — —

Acquisition and integration-related charges — 0.9 — —

Adjusted $ 149.0 $ 115.0 $ 145.0 $ 109.2


31 31

TABLE III

PERRIGO COMPANY PLC


CONSTANT CURRENCY

(in millions)

(unaudited)

Three Months Ended

December 31, 2016

December 31, 2015 Total Change FX Change

Constant Currency Change

Net sales

Consolidated* $ 1,331.2 $ 1,314.6 1% (3)% 4%

CHCA* 626.8 598.9 5% —% 5%

CHCI 419.5 434.1 (3)% (6)% 3%

RX 265.9 259.1 3% —% 3%

Twelve Months Ended

Net sales December 31,

2016 December 31,

2015 Total Change FX Change

Constant Currency Change

Consolidated* $ 5,167.8 $ 4,852.1 7% (1)% 8%

*Q4 2015, full year 2015, and full year 2016 net sales are adjusted to exclude sales attributable to held-for-sale businesses. See Tables I and II for non-GAAP reconciliations.

32 32

TABLE IV

PERRIGO COMPANY PLC


2017 GUIDANCE


(unaudited)

Full Year

2017 EPS Guidance

Reported $0.22 - $0.57

Amortization expense related primarily to acquired intangible assets 2.40

Sale of Tysabri® royalty stream (2) (0.03)

Restructuring charges 0.28

Loss on early debt extinguishment 0.12

Tax effect of non-GAAP adjustments (1) 1.16

Adjusted $4.15 - $4.50

(1) Includes tax effect of pretax non-GAAP adjustments calculated based upon the specific rate of the applicable jurisdiction of the pretax item and certain adjustments for discrete tax items.

(2) Subject to the finalization of the gain/loss on the sale of Tysabri®

Reported Amortization

expense Adjusted

Full year 2017 guidance EPS as of February 27, 2017 $0.60 - $0.95 $6.30 - $6.65

Impact of previous accounting for Tysabri on 2017 Guidance

Net sales $ 352.0 $ — $ 352.0

Cost of sales (290.0 ) 290.0 —

Operating income $ 62.0 $ 290.0 $ 352.0

Tax at 12.5% statutory rate $ (7.7 ) $ (44.0 )

Net income $ 54.3 $ 307.6

Diluted shares 143.6 143.6

Earnings per share impact removed from February 27, 2017 full year 2017 guidance $ 0.38 $ 2.14

Full year EPS range excluding impact of Tysabri $0.22 - $0.57 $4.15 - $4.50

33 33

TABLE IV (CONTINUED)

PERRIGO COMPANY PLC


2017 GUIDANCE

(in millions)

(unaudited)

Full Year

2017 Guidance

Consolidated DSG&A as a % of Net Sales

Reported Approx. 23.3%

Amortization expense related primarily to acquired intangible assets (2.5)%

Restructuring charges (0.8)%

Adjusted Approx. 20.0%

Consolidated Operating Income

Reported $545 - $605

Amortization expense related primarily to acquired intangible assets 345

Restructuring charges 40

Adjusted $930 - $990

Effective Tax Rate Tax expense Pre-tax income Effective Tax Rate

Reported $ (13 ) $ 401 Approx. (3)%

Non-GAAP adjustments 168 399

Adjusted $ 155 $ 800 Approx. 19.5%

34 34

TABLE IV (CONTINUED)

PERRIGO COMPANY PLC


2017 GUIDANCE

(in millions)

(unaudited)

Gross margin Operating margin

CHCA

Reported Approx. 33% Approx. 17 - 21%

Amortization expense related to acquired intangible assets 2% 3%

Adjusted Approx. 35% Approx. 20 - 24%

CHCI

Reported Approx (3)% -1%

Amortization expense related primarily to acquired intangible assets 13%

Adjusted Approx. 10 - 14%

RX

Reported Approx. 25 - 29%

Amortization expense related to acquired intangible assets 10%

Adjusted Approx. 35 - 39%

35 35

TABLE V

PERRIGO COMPANY PLC


REVISED 2016 GUIDANCE AS OF MAY 22, 2017

(in millions)

(unaudited)

AS OF 5/22/17

Full Year

Revised 2016 EPS Guidance

Reported $(28.38) - $(28.08)


Operating results attributable to held-for-sale businesses (1) 0.11

Impairment charges 18.48


Tysabri® royalty stream - change in fair value 18.16

Gain on divestitures (0.05)

Acquisition and integration-related charges 0.18

Unusual litigation 0.13

Losses on equity method investments 0.03

Tax effect of non-GAAP adjustments (2) (6.77)

Adjusted $4.70 - $5.00

Full Year

(in billions) Revised 2016 Net Sales

Guidance

Consolidated Net Sales

Reported $5.1 - $5.3

Operating results attributable to held-for-sale businesses (1) (0.1)

Adjusted $5.0 - $5.2

(1)

Held-for-sale businesses include the U.S. VMS business, European sports brand, and the India API business.


36 36

TABLE VI

PERRIGO COMPANY PLC


August 10, 2016

(unaudited)

AS OF 8/10/16

Full Year

2016 EPS Guidance

Reported 2016 Guidance Diluted EPS Range $0.26 - $0.56


Goodwill, intangible asset, investment and held-for-sale impairment charges 3.29

Integration and restructuring-related charges 0.27

Other (1) 0.09

Tax effect of non-GAAP adjustments (2) (1.56)

Adjusted 2016 Guidance Diluted EPS Range $6.85 - $7.15

(1) Equity method investment losses, results of operations from held-for-sale businesses, and loss on early debt extinguishment


Reported Amortization expense Adjusted

Full year 2016 guidance EPS as of August 10, 2016 $0.26 - $0.56 $6.85 - $7.15

Impact of previous accounting for Tysabri on 2016 Guidance

Net sales $ 352.0 $ — $ 352.0

Cost of sales (290.0 ) 290.0 —

Operating income $ 62.0 $ 290.0 $ 352.0

Tax at 12.5% statutory rate $ (7.7 ) $ (44.0 )

Net income $ 54.3 $ 307.6

Diluted shares 143.6 143.6

Earnings per share impact excluded from August 10, 2016 full year 2016 guidance $ 0.38 $ 2.14

Full year EPS range excluding impact of Tysabri $(0.12) - $0.18 $4.70 - $5.00

37 37

TABLE V continued

PERRIGO COMPANY PLC


August 10, 2016

(unaudited)

In billions AS OF 8/10/16

Full Year

2016 Guidance

Consolidated Net Sales

Reported $5.4 - $5.6

Operating results attributable to held-for-sale businesses (1) (0.1)

Adjusted $5.3 - $5.5

Less Tysabri® impact (0.3)

Adjusted net sales after change in accounting for Tysabri® $5.0 - $5.2

(1) Held-for-sale businesses include the U.S. VMS business, European sports brand, and the India API business.

38 38

TABLE VI

PERRIGO COMPANY PLC



(unaudited)

Three Months Ended

December 31, 2016

December 31, 2015

Total Change

Adjusted operating income

Consolidated $ 258.5 $ 265.6 (3 )%

CHCA 139.4 125.3 11 %

CHCI 36.4 52.6 (31 )%

RX 115.0 109.2 5 %

Adjusted gross profit

Consolidated $ 553.9 $ 581.9 (5 )%

CHCA 222.6 218.4 2 %

CHCI 175.7 207.7 (15 )%

RX 149.0 145.0 3 %

39 39

TABLE VII

PERRIGO COMPANY PLC


CONSUMER-FACING METRICS

(in millions)

(unaudited)

Calendar YTD Consumer-Facing Net Sales excluding held-for-sale businesses Calendar 2014 Calendar 2015 Calendar 2016

Reported CHCA net sales $ 2,503.6 $ 2,554.2 $ 2,507.1

Reported CHCI net sales 348.7 1,360.6 1,652.2

Operating results attributable to held-for-sale businesses* (176.5 ) (162.6 ) (112.8 )

Adjusted consumer-facing net sales $ 2,675.8 $ 3,752.2 $ 4,046.5

Consolidated net sales $ 3,853.8 $ 5,014.7 $ 5,280.6

Operating results attributable to held-for-sale businesses* (176.5 ) (162.6 ) (112.8 )

Adjusted consolidated net sales $ 3,677.3 $ 4,852.1 $ 5,167.8

As a % of total adjusted net sales 73 % 77 % 78 %

*Held-for-sale businesses include the U.S. VMS business and a European sports brand. The adjustments to 2014 and 2015 are for comparison purposes only and do not change any other prior year financial information or metrics since these businesses were not held-for-sale in 2014 or 2015.

40 40

TABLE VII (continued)

PERRIGO COMPANY PLC


CY14 ADJUSTED OPERATING MARGIN

(in millions)

(unaudited)

Twelve Months Ended

December 27, 2014

Consolidated Net

Sales Operating Income

Reported $ 3,853.8 $ 593.6

As a % of sales 15.4 %

Adjustments:

Amortization expense related primarily to acquired intangible assets $ 132.2

Acquisition and integration-related charges 22.7


Initial payment made in connection with an R&D arrangement 10.0

Unusual litigation 17.8

Adjusted $ 811.3

As a % of sales 21.1 %

41 41

TABLE VIII

PERRIGO COMPANY PLC


CHCI

(in millions)

(unaudited)

Consumer Healthcare International distribution sales

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended Year Ended

April 1, 2016

July 1, 2016

September 30, 2016

December 31, 2016

December 31, 2016

Distribution sales $ 48.8 $ 38.6 $ 41.7 $ 81.8 $ 210.9

CHCI excluding BCH Belgium Distribution business



Adjusted gross profit (1) Net sales Adjusted gross

margin (1) Adjusted gross

profit (1) Net sales Adjusted gross

margin (1) Change in adjusted

gross margin

CHCI $ 175.7 $ 419.5 $ 207.7 $ 434.3

Less: BCH Belgium Distribution Business — (81.8 ) — (48.7 )

Add: Change in fx rates 11.2 25.7

CHCI excluding distribution adjusted for change in fx rates $ 186.9 $ 363.4 51.4 % $ 207.7 $ 385.6 53.9 % (242 bps)

(1) CHCI gross profit is adjusted. See reconciliation in Table II. There are no adjustments to the BCH Belgium Distribution Business.

CHCI constant currency

Three Months Ended

December 31, 2016

CHCI net sales $ 419.5

Foreign exchange impact 25.7

CHCI constant currency net sales $ 445.2

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