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UBS Global Consumer & Retail Conference 2025 March 12, 2025
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2 Forward-Looking Statements 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,” “forecast,” “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: supply chain impacts on the Company’s business, including those caused or exacerbated by armed conflict, trade and other economic sanctions and/or disease; general economic, credit, and market conditions; the impact of the war in Ukraine and any escalation thereof, including the effects of economic and political sanctions imposed by the United States, United Kingdom, European Union, and other countries related thereto; the outbreak or escalation of conflict in other regions where we do business including the Middle East; current and future impairment charges, including those related to the sale of the Héra SAS ("HRA Pharma") Rare Diseases Business, if we determine that the carrying amount of specific assets may not be recoverable from the expected future cash flows of such assets; 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 the Company does; pricing pressures from customers and consumers; resolution of uncertain tax positions and any litigation relating thereto, ongoing or future government investigations and regulatory initiatives; uncertainty regarding the Company’s ability to obtain and maintain its regulatory approvals; potential costs and reputational impact of product recalls or sales halts; potential adverse changes to U.S. and foreign tax, healthcare and other government policy; the effect of epidemic or pandemic disease; the timing, amount and cost of any share repurchases (or the absence thereof) and/or any refinancing of outstanding debt at or prior to maturity; fluctuations in currency exchange rates and interest rates; the Company's ability to achieve benefits expected from its sale of the HRA Rare Diseases Business, including potential earnout payments, and the sale of Orion Laboratories Hospital & Specialty Business and the risk that potential costs or liabilities incurred or retained in connection with those transactions may exceed the Company's estimates or adversely affect the Company's business or operations; the risk that potential costs or liabilities incurred or retained in connection with the sale of the Company's Rx business may exceed the Company’s estimates or adversely affect the Company’s business or operations; the Company’s ability to achieve the benefits expected from the acquisitions of HRA Pharma and Nestlé’s Gateway infant formula plant along with the U.S. and Canadian rights to the GoodStart® infant formula brand and other related formula brands ("Gateway") and/or the risks that the Company’s synergy estimates are inaccurate or that the Company faces higher than anticipated integration or other costs in connection with the acquisitions; risks associated with the integration of HRA Pharma and Gateway, including the risk that growth rates are adversely affected by any delay in the integration of sales and distribution networks; the consummation and success of other announced and unannounced acquisitions or dispositions, and the Company’s ability to realize the desired benefits thereof; and the Company’s ability to execute and achieve the desired benefits of announced cost-reduction efforts and other strategic initiatives and investments, including the Company’s ability to achieve the expected benefits from its ongoing restructuring programs described in the Form 10-K (as defined below). Adverse results with respect to pending litigation could have a material adverse impact on the Company's operating results, cash flows and liquidity, and could ultimately require the use of corporate assets to pay damages, reducing assets that would otherwise be available for other corporate purposes. These and other important factors, including those discussed under “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2024 (“Form 10-K), 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. Any of the potential changes shared will be subject to all applicable information and consultation processes, as legally required. 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.
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3 Perrigo is Well Positioned in the Self-Care Market Our Vision Our Purpose To provide the best self-care for everyone Make lives better through trusted health and wellness solutions, accessible to all Our Right to Win 1. Nicholas Hall. 2. Circana L52 w/e 12/29/24, in the categories where Perrigo participates – cough cold, allergy, digestive health, pain, nicotine replacement, skin care and women’s health. 3. Share according to Circana Scanner panel latest 13-weeks ending 12/29/24, total US Multi Outlet+, non-WIC (Women, Infants, and Children program) powder formula, excluding ready-to-feed and toddler formula. 4. Nicholas Hall MAT Q3 2024, Europe excluding Russia. Self-Care is a $400B Global Market1 Strong #1 and #2 Brands in EU 62% Household Penetration in the U.S. and ~50% U.S. Store Brand Market2 Expansion of Perrigo Global Household Penetration of ~5% provides growth runway
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4 With a Unique, Complementary & Expandable Business Model Store Brand Generates Cash to Invest in Brands & Innovation Scalable, Low-Cost Supply Chain to Deliver 100+ Molecules in Brands & Store Brands Anywhere Consumer-led Innovation Scales Across Brand & Store Brand & Geographies Same Capabilities Drive Brand & Store Brand Demand Generation 1. HHP = Household Penetration. Driving Self- Care Access & HHP
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5 Built on Distinctive Capabilities and Unrivaled Scale Scale of Customer Relationships Breadth & Scale of Innovation Scale of Global Regulatory Interface Scale of Manufacturing Supply 100+ Molecules at 100% Price Point Coverage = Greater HHP Potential
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6 With a Clear Plan of Stability and Reliability Stabilize Streamline Strengthen CSCA Store Brand Share Expand Focused and Prioritized Brand Portfolio with R&D Prioritize A&P to Scalable High- Margin, ‘High-Grow’ Brands Portfolio and Organization to Drive Focused and Scalable Growth Manufacturing Network to Enable Reach and Scale CSCA Nutrition by Ensuring Consistent and Reliable Supply of Infant Formula Sustainable Total Shareholder Return (TSR) Lower Earnings Volatility, Higher Margins & Cash from Higher Returns & Revenue Growth
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7 Setting a Path for Significant Value Creation Potential from Re-Igniting Growth and Improving Cash Flow FY 2024 FY 2025 FY 2026 FY 2027 • 2.5% to 4.5% Organic2 Revenue CAGR • High-Single to Low Double-Digit adj. EPS CAGR • 40%+ Improvement in FCF3/Sales in 2027 • Net Leverage <3x in 2027, Potential to Accelerate 2025 – 2027 Targets1 Stabilize Streamline Strengthen 1. Assumes exchange rates constant to FY2024 actual exchange rates (USD/EURO of approximately $1.08). 2. Change in organic net sales excludes the effects of acquisitions, divestitures, exited product lines and the impact of currency. 3. Free cash flow = operating cash flow – capital expenditures.
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8 In 2025, We Expect Solid Top and Bottom- Line Growth, Along With Margin Expansion Metric FY 2025 Targets (constant currency to FY’24) Net Sales Growth Organic Net Sales Growth Adj. Gross Margin Adj. Operating Margin Adj. Diluted EPS Operating Cash Conversion % Free Cash Flow / Net Sales % Net Leverage 1% - 3% 2.5% - 4.5% ~40% ~15% $2.90 - $3.10 growth of 13% to 21% YoY ~100% ~6% ~3.5x Adj. EBITDA FY 2025 Guidance (*) 1. Operating cash conversion = operating cash flow / adjusted net income. 2. Free cash flow = operating cash flow – capital expenditures. 3. Assumes exchange rates constant to FY2024 actual exchange rates (USD/EURO of approximately $1.08). * Expect Interest Expense of ~$155M and Weighted Average Shares Outstanding of ~138.5M. Non-GAAP Measures: This presentation contains Non-GAAP measures. The reconciliation of those measures to the most comparable GAAP measures are included at the end of this presentation. The Company cannot reconcile its expected fiscal year 2025 financial targets or fiscal years 2025-2027 financial targets without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include, but are not limited to, timing of restructuring charges, acquisition/divestiture costs, gains or losses on sales of assets, and the income tax effects of these items.
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9 From 2025 to 2027, We Expect Strong Performance 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts. 2. Assumes exchange rates constant to FY2024 actual exchange rates (USD/EURO of approximately $1.08). ‘Three S’ Plan Prioritize ‘High-Grow’ Brands, Amplify with R&D and A&P Reinforce CSCA Business Execution in U.S. Store Brand and Infant Formula Simplify Portfolio and CSCI, Choiceful Innovation, One Operating Model Stabilize Streamline Strengthen FY 2025-2027 Targets (constant currency to FY’24) Organic Net Sales Growth 2.5% - 4.5% Adj. Diluted EPS Growth High-Single/Low Double-Digit % CAGR Free Cash Flow / Net Sales % +200bps *)
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10 With a Clear Plan to Reduce Net Leverage to <3.0x by 2027 $559M $400M - $500M Cash on Balance Sheet Dec. 31, 2024 Operating Cash Flow Capital Expenditures Dividends Debt Reduction Cash on Balance Sheet Dec. 31, 2027E Expect OCF conversion in 2025 of ~100%, driven by business performance, working capital reductions and lapping one-time costs Expect full repayment of Term Loan A (due in 2027) and other debt amortizations Drivers Expected Sources & Uses of Cash (2025-2027) Net Leverage <3.0x Net Leverage 4.0x 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts. 2. Operating cash conversion = operating cash flow / adjusted net income. 3. Assumes USD/EURO exchange rate of approximately $1.08 for forecasted periods.
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11 Advancing Store Brand Infant Formula Recovery Product Availability Leading to Higher Number of Shelf Facings Highlights Spring shelf resets to enhance store brand shelf positioning and expand number of store brand shelf facings On track to reintroduce ~20% of SKU assortment1 across customer base Continuing to drive demand activation activities with retail partners 1. Baseline of 2019 SKUs – distribution recovery calculated as a % of available portfolio.
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12 Higher U.S. Cough Cold Incidences Partially Offset by Lower E.U. Incidences; Expect Q1:25>Q2:25 Adj. EPS U.S. Percentage of Outpatient Visits for Respiratory Illness Reported 1. Source: CDC Flu Data. Comments In the U.S. YTD 2025 U.S. cough cold incidences are outpacing the prior year In the E.U., YTD 2025 cough cold incidences are trending below prior year with relatively higher stocks in channel 2025
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13 2025 Priorities Key Takeaways Well positioned in the $400B self-care market with unique advantages and unparalleled opportunities Will employ our unique, complementary & expandable business model built on distinctive capabilities with unrivaled scale ‘Three S’ plan provides clear path to drive attractive, sustainable total shareholder return Committed to growing dividend policy and de-levering Achieve CSCA OTC Store Brand and Nutrition Stabilization, in addition to accretive initiatives Continue to Streamline portfolio and organization, increasing agility and profitability Reinvest in ‘High-Grow’ brands to begin delivering growth in 2026 and beyond
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14 Thank You
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Appendix
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