Second Quarter 2019 Financial Results August 8, 2019...3. Adjusted Net Sales. $1.13B. Adjusted...

Second Quarter 2019 Financial ResultsAugust 8, 2019

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 involveknown 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 tobe materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology suchas “may,” “will,” “could,” “would,” “should,” “expect,” “forecast,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or the negative of those terms or othercomparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Companybelieves these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknownrisks and uncertainties, many of which are beyond the Company’s control, including: the timing, amount and cost of any share repurchases; future impairment charges; thesuccess of management transition; customer acceptance of new products; competition from other industry participants, some of whom have greater marketing resources orlarger market shares in certain product categories than the Company does; pricing pressures from customers and consumers; resolution of uncertain tax positions, includingthe Company’s appeal of the Notice of Assessment (the “NoA”) issued by the Irish tax authority and the Notice of Proposed Assessment (“NOPA”) issued by the U.S. InternalRevenue Service and the impact that an adverse result in such proceedings would have on operating results, cash flows, and liquidity; potential third-party claims andlitigation, including litigation relating to the Company’s restatement of previously-filed financial information and litigation relating to uncertain tax positions, including the NoAand the NOPA; potential impacts of ongoing or future government investigations and regulatory initiatives; the impact of tax reform legislation and healthcare policy; generaleconomic conditions; fluctuations in currency exchange rates and interest rates; the consummation of announced acquisitions or dispositions and the success of suchtransactions, 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 strategic and other initiatives. Statements regarding the separation of the RX business, including the expected benefits, anticipated timing, form of anysuch separation and whether the separation ultimately occurs, are all subject to various risks and uncertainties, including future financial and operating results, our ability toseparate the business, the effect of existing interdependencies with our manufacturing and shared service operations, and the tax consequences of the planned separation tothe Company or its shareholders. Furthermore, the Company may incur additional tax liabilities in respect of 2016 and prior years or be found to have breached certainprovisions of Irish company law in connection with the Company’s restatement of previously-filed financial statements, which may result in 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, 2018, as well as theCompany’s subsequent filings with the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially fromthose expressed or implied by these forward-looking statements. The forward-looking statements in this presentation are made only as of the date hereof, and unlessotherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result ofnew 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 are included at theend of this presentation.

3

Adjusted Net Sales $1.13BAdjusted Operating

Income~$184M

Adjusted Diluted

EPS$0.86

Consolidated Q2 Results

(1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts(2) Source: IRI Total US MULO – 13 Weeks Ending 6/16/19 - OTC includes GI ex Probiotics, Cough Cold, Allergy, Smoking Cessation ex Patch, Analgesics & Topicals. Infant Formula excluding WIC products.

Q2 Business Highlights

Consumer Americas

• Net sales increased 1% (YoY/CC) excluding the held-for-sale animal health business and exited infant foods business

• OTC net sales increased 4% (YoY/CC) driven by an extended cough/cold season, coupled with a strong start to the allergy season; gained market share in nearly every category

• OTC category growth rate tripled during the quarter compared to prior year, from 1.1% to 3.5%; Store Brand grew 3.8%, gaining share from National Brand(2)

Consumer International

• Market share remained stable in a growing European marketplace

• Net sales decreased 2% (YoY/CC) as strong new products of $30 million were more than offset by unfavorable currency, restructuring efforts in France which disrupted sales effectiveness, weaker seasonal effects in the EU and discontinued products

• Net sales of core branded products grew 3%

RX• Net sales increased 3% (YoY) driven by new product sales of $27M and

improved customer service, partially offset by pricing pressure

• Continued moderation of pricing pressure

Second Quarter 2019 Financial Results(1) Delivered on Financial Guidance for 3rd Consecutive Quarter

4

($ in millions, except per share amounts) Q2 2019 Reported

Q2 2019 Adjusted(1)

Q2 2018 Reported

Q2 2018 Adjusted(1)

Reported Change YoY%

Non-GAAP Adjustments

Net Sales $1,149 $1,127 $1,186 NA (3%) Operating results attributable to held-for-sale business

Gross Profit $431 $466 $471 $524 (9%)Acquisition-related amortization expenses and operating results attributable to held-for-sale business

R&D Expense $44 $43 $92 $42 (52%)Acquisition-related amortization expenses and operating results attributable to held-for-sale business

Distribution, Selling & Administrative Expense (DSG&A)

$291 $239 $276 $242 6%

Acquisition-related amortization expenses; acquisition and integration-related charges and contingent consideration adjustments; unusual litigation, separation and reorganization expense, and operating results attributable to held-for-sale business

Restructuring, Impairment Charges, and Other Operating Income (Loss)

$41 $0 $9 $0 373%Restructuring charges and other termination benefits; acquisition and integration-related charges and contingent consideration adjustments; and impairment charges

Operating Income $55 $184 $95 $240 (42%)

Interest & Other Expense and Change in Financial Asset

$28 $31 $39 $34 (29%)Change in financial assets; gain/loss on investment securities, and gain/loss on divestitures

Effective Tax Rate 67% 23% 35% 18% 3,210 bps

Net Income $9 $117 $36 $169 (75%)

Diluted Earnings per Share $0.07 $0.86 $0.26 $1.22 (73%)

Consolidated – Q2 2019 Summary

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

5

Consolidated Net Sales Summary – Q2 2019(1)

Adjusted Net Sales Increased 1% Vs. Prior Year, Ex. Animal Health, Infant Foods and Currency

Net Sales Q2 2019

Q22018

$ Change

% Change

%Change

(CC)

Consolidated Reported Net Sales $1.15B $1.19B ($40M) (3%) (1%)

Consolidated Adjusted Net Sales(ex. Animal Health, infant foods)

$1.13B $1.14B ($10M) (2%) 1%

(1) See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts(2) Worldwide Consumer includes the CSC Americas segment, CSC International segment and Corporate

Q2 CONSOLIDATED NET SALES HIGHLIGHTS

• New product sales of $65 million and increased demand-driven sales in the Consumer Self-Care Americas and RX businesses were partially offset by lower sales in the Consumer Self-Care International business

• Discontinued products of $27 million, including $10 million from the exited infant foods business

• Unfavorable currency impact of $24 million

6

Worldwide Consumer Net Sales Summary – Q2 2019(1)

Adjusted Net Sales were Flat Vs. Prior Year, Ex. Animal Health, Infant Foods and Currency

Net Sales($ in millions)

Q2 2019

Q22018

$ Change

% Change

%Change

(CC)

Worldwide Consumer Reported Net Sales(2) $910M $955M ($45M) (5%) (2%)

Worldwide Consumer Adjusted Net Sales(2)(ex. Animal Health, Infant Foods)

$887M $913M ($26M) (3%) 0%

CSC Americas Adjusted Net Sales (ex Animal Health, Infant Foods)

$559 $555 $4 1% 1%

CSC International Net Sales $328 $358 ($30M) (9%) (2%)


Q2 NET SALES HIGHLIGHTS

• CSC Americas: Strong sales in the core OTC business driven by an extended cough/cold season and strong start to allergy season, were partially offset by the lower contract manufacturing sales as some infant formula customers exited the category, discontinued products and an infant formula recall

• CSC International: $30 million in new products were more than offset by adverse currency movements, lower net sales in France due to a restructuring of our sales force, weak seasonal effects in the EU and discontinued products

• Unfavorable currency impact of $24 million

7

ADJUSTED GROSS PROFIT HIGHLIGHTS

• CSC Americas: Lower YoY due primarily to the impacts of the held-for-sale animal health business, lower infant formula contract manufacturing and operational inefficiencies; adjusted gross margin improved 150 basis points sequentially due primarily to favorable product mix and higher sales volumes in OTC

• CSC International: New product launches more than offset by the impacts of unfavorable product mix due primarily to the sales force realignment in France

Worldwide Consumer Gross Profit Summary – Q2 2019(1)Adjusted GP Down 3%, ex. Animal Health, Infant Foods and Currency; CSCA Adjusted GM Continued to Improve Sequentially

Adjusted Gross Profit($ in millions)

Q22019

Q22018

$ Change

% Change

Worldwide Consumer(2) $366 $408 ($42) (10%)

WW Consumer gross margin % 41.2% 42.7% (150 bps)

CSC Americas $190 $213 ($23) (11%)

Americas gross margin % 34.0% 35.7% (170 bps)

CSC International $175 $195 ($20) (10%)

International gross margin % 53.5% 54.5% (100 bps)

32.7%

30.4%

32.5%

34.0%

28%

29%

30%

31%

32%

33%

34%

35%

Q3 2018 Q4 2018 Q1 2019 Q2 2019

CSCA Adjusted Gross Margin


8

ADJUSTED OPERATING EXPENSE HIGHLIGHTS

• Flat to last year; excluding adverse currency movements and the held-for-sale animal health business, adjusted operating expenses were 8% higher versus the prior year period, due primarily to:

• R&D expenses increased 13% ex. Animal Health, Infant Foods and Currency

• Performance-based compensation plan accruals returned to 100%

• The absence of a one-time insurance recovery that benefited 2Q18

Worldwide Consumer Operating Expense Summary – Q2 2019(1)

Adjusted Operating Expenses ($ in millions)

Q22019

Q22018

$ Change

% Change

Worldwide Consumer(2) $248 $247 $1 0%CSC Americas $77 $84 ($7) (9%)CSC International $125 $139 ($14) (10%)


9

Worldwide Consumer Operating Income Summary – Q2 2019(1)

Adjusted OM Was 13%; CSCA Adjusted OM Continued to Improve Sequentially

19.0%

18.0% 18.3%

20.3%

16%

17%

18%

19%

20%

21%

Q3 2018 Q4 2018 Q1 2019 Q2 2019

CSCA Adjusted Operating Margin

ADJUSTED OPERATING INCOME HIGHLIGHTS

• CSC Americas: Gross margin flow through and higher R&D expenses, partially offset by lower SG&A expenses; adjusted operating margin improved 200 basis points sequentially to 20.3%

• CSC International: Adjusted operating margin of 15.3% was relatively flat compared to prior year

Adjusted Operating Income ($ in millions)

Q22019

Q22018

$Change

% Change

Worldwide Consumer(2) $118 $161 ($43) (27%)WW Consumer operating margin % 13.3% 16.8% (350 bps)

CSC Americas $114 $129 ($15) (12%)Americas operating margin % 20.3% 21.6% (130 bps)

CSC International $50 $56 ($6) (11%)International operating margin % 15.3% 15.6% (30 bps)


10

RX Segment Performance– Q2 2019(1)

Continued Strong Performance Despite Challenging Marketplace

RX PERFORMANCE HIGHLIGHTS

• Net Sales: New product sales of $27 million, improved customer service levels and improved product mix were partially offset by continued, although moderating, pricing pressure and discontinued products

• Adjusted Gross Profit: Pricing pressure and higher sales volumes of relatively lower margin authorized generic products

• Adjusted Operating Income: Gross margin flow-through partially offset by lower administrative expenses; R&D expenses were similar to prior year

RX Performance(in millions)

Q22019

Q22018

$Change

% Change

RX Net Sales $239 $232 $7 3%Adjusted Gross Profit $100 $116 ($16) (14%)RX adjusted gross margin % 41.7% 50.0% (830 bps)

Adjusted Operating Expenses $34 $37 ($3) (7%)Adjusted Operating Income $66 $79 ($13) (17%)RX operating margin % 27.4% 34.1% (670 bps)

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

11

1.1%

-0.6%

0.5%

3.0%

2.7%

-0.4%

3.5%

0.8%

-1.8%

0.5%

5.3%

2.0%

1.2%

4.7%

1.7%

3.4%

0.6%

1.7%

3.8%

-3.1%

-3.1%

-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

TOTAL OTC

COUGH COLD

ALLERGY

SMOKING CESSATION

GASTROINTESTINAL

ANALGESICS

NON-WIC INFANT FORMULA

Dollar Sales % Change Vs. Year Ago

TOTAL NATIONAL BRAND STORE BRAND

U.S. Store Brand OTC Growth Continues to Outpace National Brand

Source: IRI Total US MULO – 52 Weeks Ending 6/16/19OTC includes GI ex Probiotics, Cough Cold, Allergy, Smoking Cessation ex Patch, Analgesics & Topicals. Infant Formula excluding WIC products.

12(1) See attached appendix for reconciliation of adjusted (non-GAAP) to reported (GAAP) amounts(2) Includes contributions from the Animal Health business in the first quarter 2019 only as the business is accounted for as held for sale beginning in the second quarter 2019(3) Worldwide Consumer includes the CSC Americas segment, CSC International segment and Corporate

Calendar Year 2019 Guidance Including Ranir(1)(2)

Calendar Year 2019Consolidated Guidance

Net Sales $4.75B - $4.85B

Adjusted Operating Income $775M - $825M

Adjusted Diluted EPS $3.75 - $4.05

Calendar Year 2019Guidance

Net SalesAdjusted Operating

Margin

Worldwide Consumer

(Adjusted Net Sales)~$3.84B ~13.0%

CSCAmericas

(Adjusted Net Sales)~$2.49B ~20.0%

CSCInternational ~$1.35B ~15.5%

Rx ~$970M ~30.0%

13

Calendar Year 2019 Assumptions Including Ranir(1)(2)

ASSUMPTIONS• Excludes held-for-sale Animal Health business(2)

• YoY impact to 2019 net sales of $75 million• YoY impact to 2019 adj. operating income of $11 million

• Exit of CSCA Infant foods product line• YoY impact to 2019 net sales of $29 million

• Worldwide Consumer adjusted net sales growth of 5%YoY excluding held-for-sale animal health business, exited infant foods and currency

• Ranir contributions included in CSCA segment, starting July 1, 2019

• Phasing of Ranir contributions expected to be similar in Q3 and Q4

• Rx net sales growth assumes pricing expectations similar to 2018

• Adjusted EPS more heavily weighted to the fourth quarter driven by new products and productivity improvements

• Q2 planned A&P investments now expected in Q4

UPSIDE FACTOR (Not included in guidance) 2019 POTENTIAL IMPACT

Generic ProAir® Approval + $0.00 – $0.10 cents (+$0.10 cents per quarter)

Incremental Cost Savings Initiative + $0.00 – $0.05 cents

Total + $0.00 – $0.15 cents

(1) See attached appendix for reconciliation of adjusted (non-GAAP) to reported (GAAP) amounts(2) Includes contributions from the Animal Health business in the first quarter 2019 only as the business is accounted for as held for sale beginning in the second quarter 2019

14

MODELING METRICS CALENDAR YEAR 2019

Adjusted DSG&A (including A&P) as % of Net Sales ~21%

R&D as % of Net Sales ~4%Interest Expense ~$125MAdjusted Effective Tax Rate ~21%Diluted Shares Outstanding ~136MOperating Cash Flow ~$500M

Calendar Year 2018 Calendar Year 2019

Guidance at June 29, 2019 Fx Rates

Impact of Dec 31, 2018 Fx Rates Compared to June 29, 2019 Fx Rates

Net Sales $4.73B $4.75 – $4.85B ($70M)

Adjusted Diluted EPS $4.55/share $3.75 – $4.05/share ($0.06/share)

Calendar Year 2019 Assumptions Including Ranir(1)(2)

(1) See attached appendix for reconciliation of adjusted (non-GAAP) to reported (GAAP) amounts(2) Includes contributions from the Animal Health business in the first quarter 2019 only as the business is accounted for as held for sale beginning in the second quarter 2019

APPENDIX

TABLE IPERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION(in millions, except per share amounts)

(unaudited)

Three Months Ended June 29, 2019

ConsolidatedNet

SalesGross Profit

R&D Expense

DSG&A Expense

Restructuring, Impairment

Charges, and Other

Operating Income

Operating Income

Interest, Other, and Change in Financial Assets

Income Tax Expense

Net Income

Diluted Earnings per Share

Reported $ 1,149.0 $ 430.8 $ 43.9 $ 291.0 $ 40.9 $ 55.0 $ 28.0 $ 18.0 $ 9.0 $ 0.07As a % of reported net sales 37.5% 3.8% 25.3% 4.8% 2.4% 1.6% 0.8%Effective tax rate 66.6%Adjustments:Amortization expense related primarily to acquired intangible assets $ — $ 45.9 $ (0.2) $ (28.3) $ — $ 74.4 $ — $ — $ 74.4 $ 0.56Acquisition and integration-related charges and contingent

consideration adjustments — — — (2.2) (0.9) 3.1 — — 3.1 0.02Impairment charges — — — — (27.8) 27.8 — — 27.8 0.20Gain/loss on divestitures — — — — — — (0.8) — 0.8 0.01Unusual litigation — — — (7.0) — 7.0 — — 7.0 0.05Restructuring charges and other termination benefits — — — — (12.2) 12.2 — — 12.2 0.09Operating results attributable to held-for-sale business* (22.3) (11.2) (0.4) (7.3) — (3.5) — — (3.5) (0.03)Change in financial assets — — — — — — 5.5 — (5.5) (0.04)Loss on investment securities — — — — — — (1.8) — 1.8 0.01Separation and reorganization expense — — — (7.5) — 7.5 — — 7.5 0.05Non-GAAP tax adjustments** — — — — — — — 17.2 (17.2) (0.13)Adjusted $ 1,126.7 $ 465.5 $ 43.3 $ 238.7 $ — $ 183.5 $ 30.9 $ 35.2 $ 117.4 $ 0.86As a % of adjusted net sales 41.3% 3.8% 21.2% 16.3% 2.7% 3.1% 10.4%Effective tax rate 23.1%

Diluted weighted average shares outstandingReported 136.5

*Held-for-sale business includes the animal health business.**The non-GAAP tax adjustments are due to tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax items.

TABLE I (CONTINUED)PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURESSELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)(unaudited)

Three Months Ended June 30, 2018

ConsolidatedNet

SalesGross Profit

R&D Expense

DSG&A Expense


Charges, and Other

Operating Income

Operating Income


Income Tax

ExpenseNet

Income


Reported $ 1,186.4 $ 471.0 $ 91.9 $ 275.8 $ 8.6 $ 94.7 $ 39.4 $ 19.1 $ 36.2 $ 0.26As a % of reported net sales 39.7% 7.7% 23.2% 8.0% 3.3% 1.6% 3.1%Effective tax rate 34.5%Adjustments:

Amortization expense primarily related to acquired intangible assets $ 52.9 $ (0.2) $ (33.4) $ — $ 86.5 $ — $ — $ 86.5 $ 0.62Acquisition and integration-related charges and contingent

consideration adjustments— (50.0) — (3.2) 53.2 — — 53.2 0.38

Change in financial assets — — — — — 0.6 — (0.6) —Impairment charges — — — (1.7) 1.7 — — 1.7 0.01Loss on investment securities — — — — — (6.3) — 6.3 0.05Restructuring charges and other termination benefits — — — (3.7) 3.7 — — 3.7 0.03Non-GAAP tax adjustments* — — — — — — 18.1 (18.1) (0.13)

Adjusted $ 523.9 $ 41.7 $ 242.4 $ — $ 239.8 $ 33.7 $ 37.2 $ 168.9 $ 1.22As a % of reported net sales 44.2% 3.5% 20.4% 20.2% 2.8% 3.1% 14.2%Effective tax rate 18.1%

2018 QTD Net Sales excluding the animal health business**Reported $ 1,186.4 Diluted weighted average shares outstanding

Operating results attributable to held-for-sale business*** (31.9) Reported 138.7Adjusted $ 1,154.5

*The non-GAAP tax adjustments are due primarily to tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax items.**For comparative purposes only.***Held-for-sale business includes the animal health business.

TABLE I (CONTINUED)PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURESSELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)(unaudited)

Twelve Months Ended December 31, 2018

ConsolidatedNet

SalesGross Profit

R&D Expense

DSG&A Expense


Charges, and Other

Operating Income

Operating Income


Income Tax

ExpenseNet

Income


Reported $ 4,731.7 $ 1,831.5 $ 218.6 $ 1,125.8 $ 250.6 $ 236.5 $ (54.1) $ 159.6 $ 131.0 $ 0.95As a % of reported net sales 38.7% 4.6% 23.8% 5.0% (1.1)% 3.4% 2.8%Effective tax rate 54.9%Adjustments:

Amortization expense related primarily to acquired intangible assets $ 206.7 $ (1.0) $ (130.9) $ — $ 338.6 $ — $ — $ 338.6 $ 2.44Acquisition and integration-related charges and contingent

consideration adjustments— (50.0) — (6.6) 56.6 — — 56.6 0.41

Restructuring charges and other termination benefits — — (7.4) (21.0) 28.4 — — 28.4 0.21Gain/Loss on divestitures — — 3.6 1.4 (5.0) (2.7) — (2.3) (0.02)Milestone income related to royalty rights — — — — — 3.0 — (3.0) (0.02)Change in financial assets — — — — — 188.7 — (188.7) (1.36)Unusual litigation — — (3.2) — 3.2 — — 3.2 0.02Separation and reorganization expense — — (13.9) — 13.9 — — 13.9 0.10Impairment charges — — — (224.4) 224.4 — — 224.4 1.62Losses on investment securities — — — — — (9.3) — 9.3 0.07Non-GAAP tax adjustments* — — — — — — (17.5) 17.5 0.13

Adjusted $ 2,038.2 $ 167.6 $ 974.0 $ — $ 896.6 $ 125.6 $ 142.1 $ 628.9 $ 4.55As a % of reported net sales 43.1% 3.5% 20.6% 18.9% 2.7% 3.0% 13.3%Effective tax rate 18.4%

Diluted weighted average shares outstandingReported 138.3

*The non-GAAP tax adjustments include the following: (1) $(42.5) million net impact related to valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures and (2) $25.0 million of tax effects of pretax non-GAAP adjustments.

TABLE IIPERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURESSELECTED SEGMENT INFORMATION

(in millions)(unaudited)

Three Months Ended Three Months EndedJune 29, 2019 June 30, 2018

Consumer Self-Care AmericasNet

SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income

Net Sales

Gross Profit

R&D Expense

DSG&A Expense

Operating Income

Reported $ 582.1 $ 196.8 $ 18.8 $ 70.2 $ 107.8 $ 596.9 $ 202.5 $ 66.4 $ 72.4 $ 64.6As a % of reported net sales 33.8% 3.2% 12.1% 18.5% 33.9% 11.1% 12.1% 10.8%Adjustments:

Amortization expense related primarily to acquired intangible assets $ — $ 4.7 $ — $ (4.5) $ 9.2 $ 10.6 $ — $ (4.8) $ 15.3Unusual litigation — — — (0.2) 0.2 — — — —Impairment charges — — — — — — — — 0.6Operating results attributable to held-for-sale business* (22.3) (11.2) (0.4) (7.3) (3.5) — — — —Acquisition and integration-related charges and contingent

consideration adjustments— — — — — — (50.0) — 48.5

Adjusted $ 559.8 $ 190.3 $ 18.4 $ 58.2 $ 113.7 $ 213.1 $ 16.4 $ 67.6 $ 129.0As a % of adjusted net sales (2019) / As a % of reported net sales (2018) 34.0% 3.3% 10.4% 20.3% 35.7% 2.7% 11.3% 21.6%

2018 QTD Net Sales excluding the animal health business**Reported $ 596.9

Operating results attributable to held-for-sale business* (31.9)Adjusted $ 565.0

*Held-for-sale business includes the animal health business.**For comparative purposes only.

TABLE II (CONTINUED)PERRIGO COMPANY PLC




Consumer Self-Care InternationalNet

SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income (Loss)

Net Sales

Gross Profit

R&D Expense

DSG&A Expense

Operating Income

Reported $ 327.5 $ 155.4 $ 11.2 $ 138.0 $ (2.9) $ 357.9 $ 173.2 $ 11.2 $ 156.5 $ 4.0As a % of reported net sales 47.4% 3.4% 42.1% (0.9)% 48.4% 3.1% 43.7% 1.1%Adjustments:

Amortization expense primarily related to acquired intangible assets $ 19.9 $ (0.1) $ (23.8) $ 43.8 $ 21.8 $ (0.3) $ (28.4) $ 50.4Impairment charges — — — — — — — 1.0Restructuring charges and other termination benefits — — — 9.1 — — — 0.5

Adjusted $ 175.3 $ 11.1 $ 114.2 $ 50.0 $ 195.0 $ 10.9 $ 128.1 $ 55.9As a % of reported net sales 53.5% 3.4% 34.9% 15.3% 54.5% 3.0% 35.8% 15.6%


Prescription PharmaceuticalsNet

SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income

Net Sales

Gross Profit

R&D Expense

DSG&A Expense

Operating Income

Reported $ 239.4 $ 78.6 $ 13.8 $ 21.4 $ 14.7 $ 231.6 $ 95.3 $ 14.4 $ 22.6 $ 53.6As a % of reported net sales 32.8% 5.8% 8.9% 6.1% 41.1% 6.2% 9.8% 23.1%Adjustments:

Amortization expense related primarily to acquired intangible assets $ 21.2 $ (0.1) $ 21.3 $ 20.6 $ (0.2) $ 20.8Separation and reorganization expense — (0.8) 0.8 — — —Impairment charges — — 27.8 — — —Acquisition and integration-related charges and contingent

consideration adjustments— — 0.9 — — 4.7

Adjusted $ 99.8 $ 20.5 $ 65.5 $ 115.9 $ 22.4 $ 79.1As a % of reported net sales 41.7% 8.6% 27.4% 50.0% 9.7% 34.1%




Three Months EndedMarch 30, 2019


SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income

Reported $ 581.8 $ 184.0 $ 15.6 $ 73.3 $ 94.2As a % of reported net sales 31.6% 2.7% 12.6% 16.2%Adjustments:

Amortization expense related primarily to acquired intangible assets $ 5.4 $ (4.7) $ 10.1Unusual litigation — (1.2) 1.2Impairment charges — — 4.1Restructuring charges and other termination benefits — — 0.8Acquisition and integration-related charges and contingent

consideration adjustments— — (4.1)

Adjusted $ 189.4 $ 67.4 $ 106.3As a % of reported net sales 32.5% 11.6% 18.3%

Three Months EndedDecember 31, 2018


SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income


Amortization expense primarily related to acquired intangible assets $ 5.5 $ (4.7) $ 10.2Unusual litigation — — —Impairment charges — — 0.2Restructuring charges and other termination benefits — — —Acquisition and integration-related charges and contingent

consideration adjustments— — —





Three Months EndedMarch 30, 2019

Consumer Self-Care InternationalNet

SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income


Amortization expense primarily related to acquired intangible assets $ 20.8 $ (0.1) $ (24.2) $ 45.1Restructuring charges and other termination benefits — — — 0.6Unusual litigation — — (0.3) 0.3

Adjusted $ 189.2 $ 10.2 $ 124.9 $ 54.1As a % of reported net sales 53.9% 2.9% 35.6% 15.4%

Three Months EndedSeptember 29, 2018


SalesGross Profit

R&D Expense

DSG&A Expense

Operating Income (Loss)

Reported $ 596.2 $ 184.7 $ 13.8 $ 72.9 $ (123.9)As a % of reported net sales 31.0% 2.3% 12.2% (20.8)%Adjustments:

Amortization expense primarily related to acquired intangible assets $ 10.6 $ (4.7) $ 15.3Impairment charges — — 221.8Restructuring charges and other termination benefits — — —Acquisition-related charges and contingent consideration adjustments — — —


TABLE IIIPERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURESCONSTANT CURRENCY


Three Months Ended

June 29, 2019

June 30, 2018

Total Change

FX Change

Constant Currency Change

Net salesConsolidated $ 1,149.0 $ 1,186.4 (3.1)% 2.0% (1.1)%CSCA $ 582.1 $ 596.9 (2.5)% —% (2.5)%CSCI $ 327.5 $ 357.9 (8.5)% 6.7% (1.8)%RX $ 239.4 $ 231.6 3.4% —% 3.4%

Consolidated $ 1,149.0 $ 1,186.4Less: animal health (22.3) (31.9)Less: infant foods (0.8) (10.0)

$ 1,125.9 $ 1,144.5 (1.6)% 2.1% 0.5%

CSCA $ 582.1 $ 596.9Less: animal health (22.3) (31.9)Less: infant foods (0.8) (10.0)

$ 559.0 $ 555.0 0.7% 0.1% 0.8%

CSCI $ 327.5 $ 357.9Less: France — (11.0)

$ 327.5 $ 346.9 (5.6)% 6.9% 1.3%

Worldwide consumerCSCA $ 582.1 $ 596.9CSCI 327.5 357.9

$ 909.6 $ 954.8 (4.7)% 2.4% (2.3)%Less: animal health (22.3) (31.9)Less: infant foods (0.8) (10.0)

$ 886.5 $ 912.9 (2.9)% 2.7% (0.2)%

TABLE III (continued)PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURESCONSTANT CURRENCY


Three Months Ended

June 29, 2019

June 30, 2018

Total Change

FX Change

Constant Currency Change

Consolidated adjusted operating expenseConsolidated $ 282.0 $ 284.1Less: animal health — (10.2)

$ 282.0 $ 273.9 3.0% 3.3% 6.2%

Worldwide consumer adjusted gross profitCSCA $ 190.3 $ 213.1CSCI 175.3 195.0 (10.1)% 6.4% (3.7)%

$ 365.6 $ 408.1 (10.4)% 3.0% (7.4)%Less: animal health — (16.6)Less: infant foods (0.2) (2.1)

$ 365.4 $ 389.4 (6.2)% 3.2% (3.0)%

Worldwide consumer adjusted operating expenseCSCA $ 76.6 $ 84.1CSCI 125.3 139.1Unallocated 45.7 24.2

$ 247.6 $ 247.4 0.1% 3.5% 3.6%Less: animal health — (10.2)

$ 247.6 $ 237.2 4.4% 3.7% 8.1%

Worldwide consumer adjusted R&D expenseCSCA $ 18.4 $ 16.4CSCI 11.1 10.9

$ 29.5 $ 27.3 8.1% 2.9% 11.0%Less: animal health — (0.6)

$ 29.5 $ 26.7 10.5% 3.0% 13.5%

Worldwide consumer adjusted operating incomeCSCA $ 113.7 $ 129.0CSCI 50.0 55.9Unallocated (45.7) (24.2)

$ 118.0 $ 160.7 (26.6)% 2.2% (24.4)%

TABLE IVPERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES(in millions)(unaudited)

Three Months EndedJune 29,

2019June 30,

2018 $ Change ChangeWorldwide consumer adjusted net sales

CSCA $ 582.1 $ 596.9CSCI 327.5 357.9Less: animal health (22.3) —

$ 887.3 $ 954.8

Worldwide consumer adjusted gross profitCSCA $ 190.3 $ 213.1CSCI 175.3 195.0

Total $ 365.6 $ 408.1 $ (42.5) (10.4)%As a percent of worldwide consumer adjusted net sales 41.2% 42.7% (150) bps

Worldwide consumer adjusted operating incomeCSCA $ 113.7 $ 129.0CSCI 50.0 55.9Unallocated (45.7) (24.2)

$ 118.0 $ 160.7 $ (42.7) (26.6)%As a percent of worldwide consumer adjusted net sales 13.3% 16.8% (350) bps

TABLE IV (CONTINUED)PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES(in millions, except per share amounts)

(unaudited)

Three Months Ended

June 29, 2019

June 30, 2018

Total Change

Consolidated adjusted net sales $ 1,126.7 NA (5.0)%Consolidated adjusted net income $ 117.4 $ 168.9 (30.5)%Consolidated adjusted EPS $ 0.86 $ 1.22 (29.4)%

Adjusted net salesCSCA $ 559.8 NA (6.2)%

Adjusted gross profitCSCA $ 190.3 $ 213.1 (10.7)%CSCI $ 175.3 $ 195.0 (10.1)%RX $ 99.8 $ 115.9 (13.8)%

Adjusted gross marginCSCA 34.0% 35.7% (170) bpsCSCI 53.5% 54.5% (100) bpsRX 41.7% 50.0% (830) bps

Adjusted operating incomeCSCA $ 113.7 $ 129.0 (11.9)%CSCI $ 50.0 $ 55.9 (10.6)%RX $ 65.5 $ 79.1 (17.2)%

Adjusted operating marginCSCA 20.3% 21.6% (130) bpsCSCI 15.3% 15.6% (30) bpsRX 27.4% 34.1% (670) bps


RECONCILIATION OF NON-GAAP MEASURES2019 CONSOLIDATED GUIDANCE(1)

(unaudited)

Full Year2019 EPS Guidance

Reported(2) $1.23 - $1.53Amortization expense related primarily to acquired intangible assets 2.20Impairment charges 0.23Unusual litigation 0.20Restructuring charges and other termination benefits 0.16Separation and reorganization expense 0.13Acquisition-related charges and contingent consideration adjustments 0.09Losses on investment securities 0.06Change in financial assets (0.12)Operating results attributable to held-for-sale business* (0.03)Tax effect of non-GAAP adjustments (0.40)

Adjusted $3.75 - $4.05

(1) Guidance table includes Q1 and Q2 actual results for all reconciling line items, plus estimated amortization expense, separation and reorganization expense, unusual litigation, acquisition-related charges and the corresponding tax effect for Q3-Q4.(2) Guidance excludes Q2-Q4 impact related to the Royalty Pharma contingent milestone payments.*Held-for-sale business includes the animal health business.



(unaudited)

Full Year2019 Guidance

Consolidated DSG&A (includes A&P) as a % of Net SalesReported Approx. 17.1%

Amortization expense related primarily to acquired intangible assets 2.4%Unusual litigation 0.6%Separation and reorganization expense 0.4%Acquisition-related charges and contingent consideration adjustments 0.3%Operating results attributable to held-for-sale business* 0.2%

Adjusted Approx. 21.0%

Consolidated Operating IncomeReported Approx. $369 - $419 million

Amortization expense related primarily to acquired intangible assets 300Impairment charges 32Unusual litigation 28Restructuring charges and other termination benefits 22Separation and reorganization expense 17Acquisition and integration-related charges and contingent consideration adjustments 12Gain/loss on divestitures (1)Operating results attributable to held-for-sale business* (4)

Adjusted Approx. $775 - $825 million

Effective Tax RateTax expense(in millions)

Pre-tax income (in millions)

Effective Tax Rate

Reported $ 87 $ 277 Approx. 29.0%Non-GAAP adjustments 54 398

Adjusted $ 141 $ 675 Approx. 21.0%

(1) Guidance table includes Q1 and Q2 actual results for all reconciling line items, plus estimated amortization expense, separation and reorganization expense, unusual litigation, acquisition-related charges and the corresponding tax effect for Q3-Q4.*Held-for-sale business includes the animal health business.

TABLE IV (continued)PERRIGO COMPANY PLC


(unaudited)

Full Year2019 Guidance

Consolidated cash conversionOperating cash flow $500 million

Adjusted net income Approx. $514 - $553 millionCash conversion ratio Approx. 97% - 90%


RECONCILIATION OF NON-GAAP MEASURES2019 SEGMENT GUIDANCE(1)

(unaudited)

Full Year 2019 Guidance

Operating marginCSCAReported Approx. 18.4%

Amortization expense related to acquired intangible assets 1.5%Impairment charges 0.2%Unusual litigation 0.1%Restructuring charges and other termination benefits 0.1%Operating results attributable to held-for-sale business* (0.1)%Acquisition and integration-related charges and contingent consideration adjustments (0.2)%


CSCIReported Approx. 1.7%

Amortization expense related primarily to acquired intangible assets 13.1%Restructuring charges and other termination benefits 0.7%


RXReported Approx. 17.9%

Amortization expense related to acquired intangible assets 9.0%Impairment charges 2.9%Acquisition and integration-related charges and contingent consideration adjustments 0.2%Separation and reorganization expense 0.1%Gain on divestitures (0.1)%


Worldwide consumerReported Approx. (9.9)%

Amortization expense related to acquired intangible assets 21.9%Restructuring charges and other termination benefits 1.2%Impairment charges 0.4%Unusual litigation 0.2%Acquisition and integration-related charges and contingent consideration adjustments (0.4)%Operating results attributable to held-for-sale business* (0.4)%

Adjusted Approx. 13.0%(1) Guidance table includes Q1 and Q2 actual results for all reconciling line items, plus estimated amortization expense, separation and reorganization expense, unusual litigation, acquisition-related charges and the corresponding tax effect for Q3-Q4.*Held-for-sale business includes the animal health business.

TABLE VPERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES(in millions)(unaudited)

Six Months EndedJune 29,

2019Operating cash flow $ 158.3

Adjusted net income $ 263.0Cash conversion ratio 60%

Three months ended Six Months EndedMarch 30,

2019June 29,

2019June 29,

2019CSCI advertising and promotional spend $ 50.7 $ 42.1 $ 92.8Consolidated depreciation expense $ 21.1 $ 21.4 $ 42.5

Second Quarter 2019 Financial Results August 8, 2019...3. Adjusted Net Sales. $1.13B. Adjusted...

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