Perrigo Presentation

Topics: Investment, PEG ratio, Profit Pages: 20 (784 words) Published: April 20, 2014
University of Illinois
April 9, 2014

127 years old
and still
growing

Organic
growth top
and bottom
line

Reinventing
ourselves with
new segments
and disciplined
acquisitions
2

A 127-year History of Quality
Affordable Healthcare Products®

Unico
Holdings

1887

1921

2005

2006

2007

2008

2010

2011

2012

2013

2014

Introduction of

“private label”

3

Growth & Achievements
Since 2009*
Focused on Operational Excellence / Five Pillars

Adj. gross
margin
expansion of
179%

Revenue
growth of 106%
to >$4B
Cash flow from
operations
growth of 171%
to $700M

SKUs growth of
50% from
12,000 to 18,000

*Figures represent FY2009 data compared to the midpoint of 2014 guidance

Adjusted
operating
income growth
of 259%

4

Strong Consistent Growth…
Balanced Combination of Organic and Inorganic Contribution

$3.5

4

Contribution to
PRGO CAGR
(2005-13)

$1.8

Inorganic 8%

Organic 8%

$3.2
$2.8

3

Total sales ($B)

$2.3
$2.0
$1.7

2

$1.0
1

$1.4

$1.4

$0.4

$0.6

$0.8

$1.5
$1.2

$0.4

$0.1

$0.5
$1.3

$1.5

$1.6

$1.6

$1.7

$1.8

$0.9

$1.0

$1.0

2005

2006

2007

2008

2009

2010

2011

2012

2013

9%

9%

9%

14%

15%

18%

20%

22%

23%

0

Adj. Operating
Margin*:

Total 16%

>1,400 BPS Expansion
*See Appendix for reconciliation of adjusted operating margin to GAAP Note: Organic sales exclude the effects of acquisitions; acquisitions and their subsequent growth remain in inorganic sales in years following the acquisition; Adj. operating margin data prior to FY07 may not be comparable to succeeding years due to recasting of financials

5

Stock Performance
F O C U S O N AD J U S T E D G R O S S AN D O P E R ATI N G M AR G I N * E X PAN S I O N 1H:FY14

Rev. 5-Year CAGR 14%
FY13
$180

Rev. 5-Year CAGR 15%

FY11
$160

Rev. 5-Year CAGR 15%
FY09

$140

Rev. 5-Year CAGR 17%

$120

Adj. Gross Margin 31%

Adj. Gross Margin 35%

Adj. Gross Margin 38%

Adj. Gross Margin 41%
Adj. Operating Margin 24%

Adj. Operating Margin 23%

Adj. Operating Margin 20%

Adj. Operating Margin 15%

$100
$80

Stock up more than
615% in 5 years!

$60
$40

TO TAL S H AR E H O L D E R R E TU R N

$20
$0
2/20/2009

2/20/2010

2/20/2011

2/20/2012

2/20/2013

2/20/2014
6

*See Appendix for reconciliation of adjusted gross and operating margin to GAAP

Perrigo Competes in Large
and Growing Markets
Global Market Size
($B)

Growth Rate1

OTC

$67

3 – 5%

Nutrition

$97

~7%*

Infant Formula

$40

~7% **

Rx Pharma

$1,000

5 – 6%***
* Expected growth rate 2013 – 2018
** Expected growth rate 2013 – 2017
*** Expected growth rate 2013 – 2016

1 Internal plus external estimates used to estimate global market size and growth rates

7

$1.5B

6K

10K

25K

In Sales

Employees

SKUs

Batches/year
8

>$4B

9.6K

18K

45K+

In Sales

Employees

SKUs, markets
over
3,000 products

Batches/year
9

The Magic of Store Brands – The Economic
Formula Works Across Every Category
National Brand

Store Brand
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