SECOND QUARTER 2017 EARNINGS CONFERENCE CALL. Focused, Sustainable Growth Pharma Leader

Transcription

1 SECOND QUARTER 2017 EARNINGS CONFERENCE CALL Focused, Sustainable Growth Pharma Leader

2 ALLERGAN CAUTIONARY STATEMENTS Forward Looking Statements 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; the inherent uncertainty associated with financial projections; fluctuations in Allergan s operating results and financial condition, particularly given our manufacturing and sales of branded products; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, 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 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 March 31, 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 Measures This 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. 2

3 AGENDA Q Highlights Brent Saunders, Chairman & CEO Commercial Highlights Bill Meury, Chief Commercial Officer R&D Update David Nicholson, Chief R&D Officer Q Financial Results Tessa Hilado, Chief Financial Officer Q&A 3

4 BRENT SAUNDERS Chairman & CEO

5 2017 IS A PIVOTAL YEAR 1 ST HALF ON TRACK Continue to execute on strong revenue growth Integration well on track for LifeCell and Zeltiq EFFECTIVE EXECUTION AT THE CORE OF A PIVOTAL YEAR Managing expenses in light of LOE headwinds Continue to advance the 6 Stars and prioritize our pipeline investments Raising revenue guidance to $15,850-$16,050M from $15,800-$16,000M and performance net income per share guidance to $16.05-$16.45 from $15.85-$16.35 Net revenue, net revenue growth and performance net income per share refer to non-gaap 5

6 Q RESULTS STRONG EXECUTION Strong Net Revenues and Performance Net Income per Share Growth Net Revenues = $4.0B +9% growth Performance Net Income per Share of $ % growth Margins Remained Strong Gross Margin of 87.3% * Operating Margin of 47.1%** Growth Margins Strong Execution Pipeline Capital Allocation Further Advanced Pipeline and 6 Stars Completed 8 major pharma & device approvals year to date 5 of 6 Stars in Phase 3 Deploying Capital Efficiently Share repurchase remains on track to be settled in Q3 Total net debt reduced by $1.5B in Q2 17 * Gross margin in the three months ended June 30, 2017 includes a reimbursement of $15M for costs previously expensed through cost of sales. ** Includes unfavorable transactional Fx impact of $71M Net revenue growth, gross margin, operating margin and performance net income per share refer to non-gaap 6

7 BILL MEURY Chief Commercial Officer

8 Q2 COMMERCIAL EXECUTION CONTINUES TO FOCUS ON OUR KEY PRIORITIES Fueling Medical Keeping the Building a CNS Strengthening Growing the Aesthetics Focus on flagship with IBS International Growth Eye Care Vraylar Leadership Business MA = Medical Aesthetics; EC = Eye Care, CNS = Central Nervous System, GI = Gastrointestinal; INTL = International 8

9 STRONG, DURABLE GROWTH PARTIALLY OFFSET BY DECLINE FROM PRODUCTS LOSING EXCLUSIVITY ($ millions) % 19 12% % 17% 15% 12% 12% % -9% -24% $322M Y/Y 4,007 9% % -29% 6% 3,685 5% 0.1% 0.3% -67% Q2 16 Rev Q2 17 Rev % growth excluding FX, Namenda IR and including ($24M) of revenues in Q2,16 related to the portion of Allergan product revenues sold by our former Anda Distribution Business which is reported in discontinued operations 2. Reflects 2 months from Coolsculpting 3. Viberzi (Q2 17 revenues $41M), Vraylar (Q2 17 revenues $66M), Kybella (Q2 17 revenues $15M), Namzaric (Q2 17 revenues $33M),XEN (Q2 17 revenues $6M), and Rhofade (Q2 17 revenues $5M) 4. Juvederm Collection refers to the sales of all fillers including Juvederm and Voluma 5. Represents all other products with less than $200M annual revenues, approximately <20% of total Q2 Net revenue and revenue growth refer to non-gaap 9

10 MEDICAL AESTHETICS: STRONG, SUSTAINABLE GROWTH ACROSS 3 PILLARS Facial Aesthetics Plastics / Regenerative Body Contouring +15% +8% +40% Q2 17 Growth Y/Y Q2 17 Pro-forma Growth Y/Y Q2 17 Pro-forma Growth Y/Y Botox and Juvederm lines show strong growth across all geographies Juvederm Collection share at all time high of ~52% in US Kybella market development and co-positioning with CoolSculpting Alloderm continues to exceed expectations driven by new pre-pec procedure Sales for breast implants increased versus prior year with launch of Inspira Business is accelerating System placements are at a high Consumable demand is very strong Pro-forma growth rates in Q2 versus prior year are worldwide and exclude Fx 10

11 MEDICAL AESTHETICS IS A BIG AND LONG TERM OPPORTUNITY FURTHER PENETRATION AND EXPANSION POTENTIAL Summary US Consumer penetration is still low, between 5% and 10% across our business The market has potential to expand four to five fold, totaling ~30MM Americans Growth from men outpacing women by 2:1 margin Millennial growth >30% and represents the single largest consumer segment by potential ~30MM Americans unhappy with their appearance 20% User of Aesthetic procedures 14% Significant Opportunity Not considering aesthetic procedure 66% Will consider an aesthetic procedure Segments significantly under-penetrated Plastics / Regenerative Consumer Penetration ~10% Facial Aesthetics Consumer Penetration ~5% Body Contouring Consumer Penetration ~5% Millennial Movement (Procedures, 000) Male Movement (Procedures, 000) 843 ~31% 1, ~14% Source: 2017 FI Market data source: 2017 Pan-Aesthetic Study; Males and millennials data source: Cosmetic Surgery National Data Bank Statistics, ASAPS,

12 TMOTs Share ($Millions) EYE CARE: FOCUS ON MAINTAINING LEADERSHIP IN DRY EYE WHILE EXPANDING RETINA Restasis Volume Holds Restasis Q2 volume demand stable vs prior year o Revenues impacted by trade buying patterns Allergan maintains promotional leadership and strong formulary coverage \ Growth Continues to Accelerate Strong, double-digit growth continues +15% YoY in Q2 excluding Fx Primary source of growth is anti-vegf failures o MDPF share of total volume at ~10% 100% 80% 60% DRY EYE MARKET UNIT SHARE (52 WEEKS) Restasis (total); 81% $80 $75 $70 $65 NET REVENUES IN 2 YEARS $575M in global net revenues over 2 years 40% 20% Competitor; 19% $60 $55 $50 0% $45 Source: IMS RAPID, All Channels, *Units is 1 Month of Therapy based on Extended Units. QuintilesIMS lost visibility to a mail order supplier and restated historical data starting July 2016 by removing data from that supplier. Current QuintilesIMS data is reduced by ~2.3% to previous QuintilesIMS Total Restasis demand volume Revenues and revenue growth refers to non-gaap 12

13 CNS LAUNCHES: VRAYLAR & NAMZARIC CONTINUE TO BE THE FOCUS Exceeding Expectations Demand growth ahead of oral atypical antipsychotic market and competitor brands (Rexulti and Latuda) Vraylar s managed care coverage continues to build - covered on all top 10 commercial plans Short-term growth catalyst is psychiatry Launch Trajectory Remains Strong Still on track to exit year at 25%-30% of Namenda franchise Formulary access to remain strong through 2018 Namzaric demand: 46% is coming from Aricept monotherapy, 31% from XR, and 23% from IR and other AChEIs Offers long-term revenue stream built on multi-indication strategy VRAYLAR WEEKLY TRX NAMZARIC NRX Days of Therapy (DOT) Growth Source: IMS weekly data Revenue growth refers to non-gaap 13

14 GI: LINZESS & VIBERZI DEMONSTRATE STRENGTH IN IBS Linzess Demand Remains Strong After 5 Years ~19% increase in volume demand 72 mcg is expanding use beyond 145 mcg and 290 mcg: ~17% of all new Linzess patients are starting on 72mcg Key to growth includes: Maintaining promotional leadership Preserving formulary coverage Demand Has Stabilized Moderate impact to demand as health care professionals were educated on label change Primary care has been the strongest growth segment Focus is on GI specialists and expanding beyond severe segment Promotional levels (including DTC) and formulary coverage are on track 30,000 LINZESS TRX 28,700 27,400 26,100 24,800 23,500 22,200 20,900 19,600 18,300 17,000 6,000 5,600 5,200 4,800 4,400 4,000 3,600 3,200 2,800 2,400 2,000 VIBERZI TRX SINCE LAUNCH FDA Label Change Source: IMS weekly data 14

15 INTERNATIONAL BUSINESS CONTINUES STRONG GROWTH International Sales +16.2% (excluding Fx) Growth in Every Region LACAN Canada & LATAM +16% Europe +10% APAC+ MEA +20% Fastest growing countries: APAC+MEA: China +61% LACAN: Brazil +18%, Canada +14% Europe: Sweden +27%; Spain +25% Medical Aesthetics and Botox Tx Key Drivers of International Growth Juvederm Collection of fillers +30% YoY Botox Cx +16% YoY Botox Tx +14% YoY Growth rates in chart reflect Q growth vs prior year excluding FX impact LACAN: Latin America and Canada APAC / MEA: Asia Pacific / Middle East and Africa 15 Revenue growth refer to non-gaap

16 DAVID NICHOLSON Chief R&D Officer

17 DEVELOPMENT PROGRESS OF 6 STAR PROGRAMS Ubrogepant Acute Migraine Atogepant Migraine Prophylaxis Rapastinel MDD ESMYA Uterine Fibroids Abicipar AMD Recruitment on two Phase 3 trials in US progressing well Topline results expected 1H 2018 Phase 3 program agreed with FDA* Phase 2b trial in US on track. Topline results 1H 2018 Phase 3 trials on track Topline results from short-term studies expected 2019 NDA submission for treatment of abnormal uterine fibroid bleeding on track 2H 2017 Approval expected 1H/2H 2018 Two Phase 3 trials underway. Topline results 2H STAR PROGRAMS Cenicriviroc NASH Phase 3 initiated. Phase 2 CENTAUR year 2 data on track for 2H 2017 Relamorelin Diabetic Gastroparesis Initiate Phase 3 2H 2017 Topline data expected 2020 * Two pivotal studies, UBR-MD-01/02: N=1,650 patients per study, randomized (1:1:1) to 3 treatment groups. 01: placebo, 50mg, 100mg; 02: placebo, 25mg, 50mg. Long-term safety study, UBR-MD-04: N=1,250 patients, extension study for patients in 01/ 02 pivotals. Additional N=400 patient study randomized (1:1), placebo: 100mg, treated for two months with at least 15 treatments per month. 17

18 TESSA HILADO Chief Financial Officer

19 Q FINANCIAL PERFORMANCE $ millions, except per share amount (Non GAAP)* Q Q Y/Y Net Revenue 4,007 3, % Gross Margin % 87.3% 88.0% -0.7% R&D Expense % % of Revenue 9.8% 9.4% 0.4% S&M % G&A % SG&A 1,217 1, % % of Revenue 30.4% 28.2% 2.2% Operating Income 1,887 1, % Op. Margin % 47.1% 50.4% -3.3% Net Interest (Expense) /Other (237) (354) -33.0% Strong revenue growth of 9% 1 versus prior year Growth mainly driven by the addition of Regenerative Medicine products and Coolsculpting and continued double-digit growth of key brands and new product launches Offset by Asacol HD and Minastrin loss of exclusivity, continued decline in Namenda XR and declines in Restasis and Aczone Margins remained strong Maintained strong gross margin; negative impact from product mix offset by royalty buy-outs and a reimbursement of $15M for costs previously expensed through cost of sales Operating spend managed tightly despite FX headwinds: > Additional expenses for Regenerative Medicine products and Coolsculpting and promotional spend on key brands offset by lower selling costs in General Medicines segment > Higher G&A mainly due to unfavorable transactional Fx impact year over year. Excluding this impact, G&A increased ~2% Lower net interest expense versus prior year mainly attributed to debt reduction and Teva dividend Performance Net Income per Share $4.02 $ % Paid down net debt of $9.4B since Q Tax Rate 13.1% 7.1% 6.0% Strong cash flow from operations of $1.63B Cash Flow From Ops 1,629 1, % ~$1.60B adjusted cash flow excluding R&D asset acquisitions, restructuring charges and other one-time payments and receipts * All metrics are as a % of Net Revenues. Please refer to the GAAP to non-gaap tables in the appendix for a reconciliation of our non-gaap results % excluding Fx, Namenda IR, and including ($24) M of revenues in Q related to the portion of Allergan product revenues sold by our former Anda Distribution Business which is reported in discontinued operations. 19

20 Q PERFORMANCE BY SEGMENT ($M) 1, % 1,715 1,449 1, % % 13.4% (Ex Fx) 859 (10) 6 Q2'16 Q2'17 Q2'16 Q2'17 Q2'16 Q2'17 Q2'16 Q2'17 US Specialized Therapeutics US General Medicine International Corporate Contribution Margin 72.5% 68.8% 59.2% 62.7% 53.4% 54.3% N/A US Specialized Therapeutics revenues grew 15% driven by new acquisitions and growth in key brands offset by reductions in Restasis and Aczone Contribution margin decline attributed to lower margins from LifeCell and Zeltiq acquisitions, as well as increase in promotional spending on key brands and new products Rhofade and Xen US General Medicine revenues decline due to Asacol HD and Minastrin loss of exclusivity, coupled with Namenda XR decline offset by strong growth in Vraylar, Linzess and Lo Loestrin Contribution margin improvement versus prior year due to royalty buy back and lower promotional and selling expenses International segment continues to experience double digit revenue growth and improving contribution margin Contribution margin improved due to sales growth coupled with favorable mix Revenue growth and contribution margins refer to non-gaap 20

21 CAPITALIZATION AS OF JUNE 30TH 2017 Capitalization ($B) Q Cash and Marketable Securities 1 $5.8 Total Debt 2 $30.2 Debt to Adjusted EBITDA 4.0x Net Debt to Adjusted EBITDA 3.2x Cash and Marketable Securities impacted by recent deals 3 Total debt reduced by $1.5B in Q and expected to decrease by an additional ~$3.8B in contractual maturities in 2018 Paid down YTD net debt of $2.6B 1. Includes Teva shares of ~$3.3B. Teva holdings lock-up expiration August 3rd 2. Includes $30.3B in Senior Notes 3. Cash paid for deals in Q was ~$2.4B EBITDA refers to non-gaap 21

22 2017 GUIDANCE UPDATE In millions, except for share amounts Previous Guidance Revised Guidance Assumptions Total Reported Net Revenue $15,800 $16,000 $15,850 $16,050 Assumes Namenda XR generic entry in Q Assumes Fx impact negligible 1 Other assumptions remain unchanged 2 Non-GAAP Gross Margin 86.0% 87.0% 86.5% 87.0% Reflects 1H better than expected gross margin Non-GAAP SG&A $4,450 $4,550 $4,500 $4,600 Increase in G&A reflects unfavorable transactional Fx Non-GAAP R&D Spend ~$1,600 ~$1,600 No Change Non-GAAP Tax Rate % ~13.0% ~13.0% No Change Non-GAAP Net Interest Expense/Other ~$1,075 ~$1,000 Assumes Teva dividend in Q3 and lower net interest expense 3 Non-GAAP Average Share Count ~356M ~356M Non-GAAP Performance Net Income per Share $15.85 $16.35 $16.05 $16.45 No change Subject to ASR settlement in Q3 1. Prior guidance included ~$100M of Fx headwind 2. Stable Restasis, no Estrace Gx assumed for the year 3. Reflects Teva announcement of reduced dividend by 75% 22

23 23

24 APPENDIX 24

25 CONTINUE TO ADVANCE THE PIPELINE 2017 AND KEY 2018 HIGHLIGHTS SUBMISSIONS THERAPEUTIC AREAS APPROVALS DEVELOPMENT MILESTONES MEDICAL AESTHETICS/ DERMATOLOGY EYE CARE Rhofade Rosacea True Tear Dry Eye Sarecycline Acne 2H Restaysis EU dry eye 1H Volbella lips Japan Botox CFL China 2H MDPF Ganfort EU 1H Volift Japan Sarecycline Acne 2H Omega 3 OTC Dry Eye 2H EU RORyt agonist Psoriasis Entry Ph 2b 2H Bimatoprost SR Ph 3 enrollment completion 2H Bimatoprost ring Entry Ph 3 2H Abicipar DME Ph 3 Entry 1H Brimo DDS Atrophic AMD Ph 2 topline 2H Sarecycline Ph 3 topline 1H Pilo/Oxy Ph 2b topline 1H Abicipar AMD Ph 3 topline 2H GI Linzess 72mcg CVC Ph 3 Initiated CVC + LJN452 Entry Ph 2b 1H Linzess Delayed Release IBS-C Entry Phase 3 2H Relamorelin Start Ph 3 2H WH ESMYA Uterine fibroids 1H/2H ESMYA Uterine fibroids 2H ESMYA 2nd Ph 3 topline results CNS URO, AI, OTHER Vraylar Schizophrenia Maintenance 2H Avycaz cuti with Ph3 US Saphris Bipolar Depression maintenance & launch effective dose Avycaz HABP/VABP US Vraylar Negative Symptoms 2H Avycaz HABP/VABP US 1H Vraylar Schizophrenia Maintenance Muscarinic Receptor M1 and M4 Agonist Ph 1 2H ; Entry Ph 1 2H respectively Botox MDD Ph 2 Results Rapastinel Ph 2 Suicidality Study Initiation 2H Atogepant Topline Ph 2b 1H Ubrogepant Topline Ph 3 1H Cariprazine Bipolar Dep Ph 3 Results 2H Achieved YTD

26 Q RECONCILIATION TABLES Table 1: Allergan plc s statement of operations for the three and six months ended June 30, 2017 and 2016 Table 2: Allergan plc's product revenue for the three and six months ended June 30, 2017 and 2016 Table 3: Allergan plc s Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 Table 4: Allergan plc s Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2017 and 2016 Table 5: GAAP to non-gaap reconciliation for the three and six months ended June 30, 2017 and 2016 Table 6: Table 7: Table 8: Reconciliation of reported net (loss) from continuing operations attributable to shareholders and diluted earnings per share to non-gaap performance net income and performance net income per share for the three and six months ended June 30, 2017 and 2016 Reconciliation of reported net (loss) from continuing operations attributable to shareholders for the three and six months ended June 30, 2017 and 2016 to adjusted EBITDA and adjusted operating income Net Revenues and contribution margin for US Specialized Therapeutics Segment, US General Medicine Segment, International Segment and Corporate for the three and six months ended June 30, 2017 and 2016 Table 9: Net Revenues for US Specialized Therapeutics Segment for the three and six months ended June 30, 2017 and 2016 Table 10: Net Revenues for US General Medicine Segment for the three and six months ended June 30, 2017 and 2016 Table 11: Net Revenues for International Segment for the three and six months ended June 30, 2017 and 2016 Table 12: GAAP to non-gaap reconciliation of FY 2017 performance net income attributable to shareholders 26

27 TABLE 1:ALLERGAN PLC S STATEMENT OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 The following presents Allergan plc s statement of operations for the three and six months ended June 30, 2017 and 2016: Table 1 ALLERGAN PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in millions, except per share amounts) Three Months Ended Six Months Ended June 30 June 30, Net revenues $ 4,007.4 $ 3,684.8 $ 7,580.3 $ 7,084.1 Operating expenses: Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) , Research and development , ,039.6 Selling, general and administrative 1, , , ,306.3 Amortization 1, , , ,222.8 In-process research and development impairments , Asset sales and impairments, net 14.0 (17.6) 21.4 (19.3) Total operating expenses 4, , , ,743.2 Operating (loss) (902.4) (487.6) (1,808.4) (659.1) Non-operating income (expense): Interest income Interest (expense) (277.4) (345.8) (567.1) (678.6) Other income (expense), net (133.5) (2,056.3) Total other income (expense), net (394.3) (193.2) (2,581.5) (522.6) (Loss) before income taxes and noncontrolling interest (1,296.7) (680.8) (4,389.9) (1,181.7) (Benefit) for income taxes (581.2) (258.2) (1,113.3) (666.9) Net (loss) from continuing operations, net of tax (715.5) (422.6) (3,276.6) (514.8) (Loss) / income from discontinued operations, net of tax (8.4) (77.3) (11.5) Net (loss) (723.9) (499.9) (3,288.1) (243.5) (Income) attributable to noncontrolling interest (2.0) (1.8) (3.0) (2.5) Net (loss) attributable to shareholders (725.9) (501.7) (3,291.1) (246.0) Dividends on preferred shares Net (loss) attributable to ordinary shareholders $ (795.5) $ (571.3) $ (3,430.3) $ (385.2) (Loss) / income per share attributable to ordinary shareholders - basic: Continuing operations $ (2.35) $ (1.25) $ (10.20) $ (1.66) Discontinued operations (0.02) (0.19) (0.03) 0.69 Net (loss) per share - basic $ (2.37) $ (1.44) $ (10.23) $ (0.97) (Loss) / income per share attributable to ordinary shareholders - diluted: Continuing operations $ (2.35) $ (1.25) $ (10.20) $ (1.66) Discontinued operations (0.02) (0.19) (0.03) 0.69 Net (loss) per share - diluted $ (2.37) $ (1.44) $ (10.23) $ (0.97) Dividends per ordinary share $ 0.70 $ - $ 1.40 $ - Weighted average shares outstanding: Basic Diluted

28 TABLE 2: ALLERGAN PLC'S PRODUCT REVENUE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

29 TABLE 2 (CONT D): ALLERGAN PLC'S PRODUCT REVENUE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

30 TABLE 3: ALLERGAN PLC S CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2017 AND DECEMBER 31, 2016 The following table presents Allergan plc s Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, Table 3 ALLERGAN PLC CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; in millions) June 30, December 31, Assets Cash and cash equivalents $ $ 1,724.0 Marketable securities 4, ,501.5 Accounts receivable, net 2, ,531.0 Inventories Other current assets ,383.4 Assets held for sale Property, plant and equipment, net 1, ,611.3 Investments and other assets Product rights and other intangibles, net 62, ,618.6 Goodwill 49, ,356.1 Total assets $ 124,734.8 $ 128,986.3 Liabilities & Equity Current liabilities $ 4,843.3 $ 5,076.8 Current and long-term debt and capital leases 30, ,768.7 Deferred income taxes and other liabilities 14, ,940.3 Total equity 75, ,200.5 Total liabilities and equity $ 124,734.8 $ 128,

31 TABLE 4: ALLERGAN PLC S CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 The following table presents Allergan plc s Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2017 and Table 4 ALLERGAN PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions) Three Months Ended June 30, Six Months Ended June 30, Cash Flows From Operating Activities: Net (loss) $ (723.9) $ (499.9) $ (3,288.1) $ (243.5) Reconciliation to net cash provided by operating activities: Depreciation Amortization 1, , , ,227.6 Provision for inventory reserve Share-based compensation Deferred income tax benefit (766.0) (1,478.8) (327.1) In-process research and development impairments , Loss on asset sales and impairments, net 14.0 (17.6) 21.4 (19.3) Net income impact of other-than-temporary loss on investment in Teva securities - - 1, Amortization of inventory step up Non-cash extinguishment of debt (8.2) - (8.2) - Amortization of deferred financing costs Contingent consideration adjustments, including accretion (15.5) Other, net (3.8) (17.3) (22.6) (26.4) Changes in assets and liabilities (net of effects of acquisitions): Decrease / (increase) in accounts receivable, net (192.2) (352.6) (139.0) (501.2) Decrease / (increase) in inventories (44.6) (34.7) (95.1) (183.2) Decrease / (increase) in prepaid expenses and other current assets Increase / (decrease) in accounts payable and accrued expenses (207.5) Increase / (decrease) in income and other taxes payable (425.4) (477.6) Increase / (decrease) in other assets and liabilities (22.4) (213.4) (23.5) (267.5) Net cash provided by operating activities 1, , , ,632.9 Cash Flows From Investing Activities: Additions to property, plant and equipment (104.0) (97.9) (137.2) (182.8) Additions to product rights and other intangibles (240.0) - (586.3) - Additions to investments (400.0) - (6,787.9) - Proceeds from sale of investments and other assets 3, , Proceeds from sales of property, plant and equipment Acquisitions of businesses, net of cash acquired (2,416.0) - (5,290.4) - Net cash provided by / (used in) investing activities (89.0) (142.8) Cash Flows From Financing Activities: Proceeds from borrowings on long-term indebtedness, including credit facility 3, , Debt issuance and other financing costs (17.5) - (17.5) - Payments on debt, including capital lease obligations (4,563.3) (2,981.4) (5,579.2) (3,835.6) Proceeds from stock plans Payments of contingent consideration and other financing (428.8) (31.5) (505.1) (63.8) Repurchase of ordinary shares (5.7) (14.1) (35.2) (67.3) Dividends (306.1) (69.6) (611.9) (139.2) Net cash (used in) financing activities (2,226.3) (3,058.9) (3,601.2) (3,098.6) Effect of currency exchange rate changes on cash and cash equivalents 5.2 (3.2) Net (decrease) in cash and cash equivalents (206.0) (1,771.3) (837.1) (606.5) Cash and cash equivalents at beginning of period 1, , , ,096.0 Cash and cash equivalents at end of period $ $ $ $

32 TABLE 5: GAAP TO NON-GAAP RECONCILIATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

33 TABLE 5 (CONT D): GAAP TO NON-GAAP RECONCILIATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

34 TABLE 5 (CONT D): GAAP TO NON-GAAP RECONCILIATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

35 TABLE 5 (CONT D): GAAP TO NON-GAAP RECONCILIATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

36 TABLE 6: RECONCILIATION OF REPORTED NET (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SHAREHOLDERS AND DILUTED EARNINGS PER SHARE TO NON-GAAP PERFORMANCE NET INCOME AND PERFORMANCE NET INCOME PER SHARE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 The following table presents a reconciliation of Allergan plc's reported net (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 six months ended June 30, 2017 and 2016: Table 6 ALLERGAN PLC RECONCILIATION TABLE (Unaudited; in millions except per share amounts) Three Months Ended Six Months Ended June 30, June 30, GAAP to Non-GAAP Performance net income calculation GAAP (loss) from continuing operations attributable to shareholders $ (717.5) $ (424.4) $ (3,279.6) $ (517.3) Adjusted for: Amortization 1, , , ,222.8 Acquisition and licensing charges (1) , Accretion and fair-value adjustments to contingent consideration (15.5) Impairment/asset sales and related costs , Non-recurring (gain) / losses (8.6) Legal settlements Income taxes on items above and other income tax adjustments (796.9) (364.9) (1,510.4) (907.8) Non-GAAP performance net income attributable to shareholders $ 1,435.1 $ 1,398.0 $ 2,630.9 $ 2,647.8 Diluted earnings per share Diluted (loss) per share from continuing operations attributable to shareholders- GAAP $ (2.14) $ (1.07) $ (9.78) $ (1.31) Non-GAAP performance net income per share attributable to shareholders $ 4.02 $ 3.35 $ 7.37 $ 6.34 Basic weighted average ordinary shares outstanding Effect of dilutive securities: Dilutive shares Diluted weighted average ordinary shares outstanding (1) Includes stock-based compensation due to the Zeltiq, Allergan and Forest acquisitions as well as the valuation accounting impact in interest expense, net. 36

37 TABLE 7: RECONCILIATION OF REPORTED NET (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SHAREHOLDERS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 TO ADJUSTED EBITDA AND ADJUSTED OPERATING INCOME We define adjusted EBITDA as an amount equal to consolidated net income / (loss) from continuing operations attributable to shareholders for such period adjusted for the following: (i) interest expense, (ii) interest income, (iii) (benefit) for income taxes, (iv) depreciation and amortization expenses, (v) stockbased compensation expense, (vi) asset impairment charges and losses / (gains) and expenses associated with the sale of assets, including the exclusion of discontinued operations, (vii) business restructuring charges associated with Allergan s global supply chain and operational excellence initiatives or other restructurings of a similar nature, (viii) costs and charges associated with the acquisition of businesses and assets including, but not limited to, milestone payments, integration charges, other charges associated with the revaluation of assets or liabilities and charges associated with the revaluation of acquisition related contingent liabilities that are based in whole or in part on future estimated cash flows, (ix) litigation charges and settlements and (x) other unusual charges or expenses. We define non-gaap adjusted operating income as adjusted EBITDA including depreciation and certain stock-based compensation charges and excluding dividend income. The following table presents a reconciliation of Allergan plc's reported net (loss) from continuing operations attributable to shareholders for the three and six months ended June 30, 2017 and 2016 to adjusted EBITDA and adjusted operating income: Table 7 ALLERGAN PLC ADJUSTED EBITDA and ADJUSTED OPERATING INCOME, RECONCILIATION TABLE (Unaudited; in millions) Three Months Ended Six Months Ended June 30, June 30, GAAP (loss) from continuing operations attributable to shareholders $ (717.5) $ (424.4) $ (3,279.6) $ (517.3) Plus: Interest expense Interest income (16.6) (2.5) (41.9) (5.4) (Benefit) for income taxes (581.2) (258.2) (1,113.3) (666.9) Depreciation Amortization 1, , , ,222.8 EBITDA $ $ 1,326.6 $ (292.6) $ 2,785.6 Adjusted for: Acquisition and licensing and other charges , Impairment/asset sales and related costs , Non-recurring (gain) / losses (8.6) Legal settlements Accretion and fair-value adjustments to contingent consideration (15.5) Share-based compensation including cash settlements Adjusted EBITDA $ 2,027.2 $ 1,934.8 $ 3,761.4 $ 3,750.2 Adjusted for: Depreciation (39.6) (32.8) (81.2) (73.8) Dividend income (34.1) - (68.2) - Share-based compensation not related to restructuring charges and purchase accounting impact on stock-based compensation for acquired awards (66.3) (43.8) (107.0) (84.8) Adjusted Operating Income $ 1,887.2 $ 1,858.2 $ 3,505.0 $ 3,

38 TABLE 8: NET REVENUES AND CONTRIBUTION MARGIN FOR US SPECIALIZED THERAPEUTICS SEGMENT, US GENERAL MEDICINE SEGMENT, INTERNATIONAL SEGMENT AND CORPORATE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND

39 TABLE 9: NET REVENUES FOR US SPECIALIZED THERAPEUTICS SEGMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 The following table details Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and six months ended June 30, 2017 and ALLERGAN PLC US Specialized Therapeutics Product Revenue (Unaudited; in millions) Table 9 Three Months Ended June Change 30, (1) Dollars % Total Eye Care $ $ $ (36.0) (5.7)% Restasis (34.9) (9.4)% Alphagan /Combigan % Lumigan /Ganfort (1.6) (2.0)% Ozurdex % Eye Drops % Other Eye Care (4.9) (27.8)% Total Medical Aesthetics % Facial Aesthetics % Botox Cosmetics % Juvederm Collection % Kybella % Plastic Surgery % Breast Implants % Other Plastic Surgery (1.1) (100.0)% Regenerative Medicine n.a. Alloderm n.a. Other Regenerative Medicine n.a. Body Contouring n.a. Coolsculpting Systems & Add On Applicators n.a. Coolsculpting Consumables n.a. Skin Care (8.1) (17.3)% SkinMedica (3.7) (12.7)% Latisse (4.4) (24.9)% Total Medical Dermatology (15.3) (15.8)% Aczone (13.1) (24.2)% Tazorac (10.6) (45.3)% Botox Hyperhidrosis % Other Medical Dermatology n.m. Total Neuroscience & Urology % Botox Therapeutics % Rapaflo (3.7) (12.6)% Other Neuroscience & Urology (0.9) (100.0)% Other Revenues % Net revenues $ 1,715.0 $ 1,488.9 $ % (1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers. 39

40 TABLE 9 (CONT D): NET REVENUES FOR US SPECIALIZED THERAPEUTICS SEGMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 Six Months Ended June 30, Change (1) Dollars % Total Eye Care $ 1,153.2 $ 1,169.1 $ (15.9) (1.4)% Restasis (24.8) (3.7)% Alphagan /Combigan % Lumigan /Ganfort (8.8) (5.4)% Ozurdex % Eye Drops % Other Eye Care % Total Medical Aesthetics 1, % Facial Aesthetics % Botox Cosmetics % Fillers % Kybella % Plastic Surgery % Breast Implants % Other Plastic Surgery (2.8) (100.0)% Regenerative Medicine n.a. Alloderm n.a. Other Regenerative Medicine n.a. Body Contouring n.a. Coolsculpting Systems & Add On Applicators n.a. Coolsculpting Consumables n.a. Skin Care (12.9) (13.8)% SkinMedica (2.3) (4.1)% Latisse (10.6) (28.3)% Total Medical Dermatology % Aczone (5.5) (6.3)% Tazorac (4.3) (10.6)% Botox Hyperhidrosis % Other Medical Dermatology % Total Neuroscience & Urology % Botox Therapeutics % Rapaflo (10.8) (17.3)% Other Neuroscience & Urology (0.9) (100.0)% Other Revenues % Net revenues $ 3,197.0 $ 2,787.6 $ % (1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers. 40

41 TABLE 10: NET REVENUES FOR US GENERAL MEDICINE SEGMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and six months ended June 30, 2017 and Table 10 ALLERGAN PLC US General Medicine Product Revenue (Unaudited; in millions) Three Months Ended June 30, Change (1) Dollars % Total Central Nervous System (CNS) $ $ % Namenda XR (47.8) (28.7)% Namzaric % Viibryd /Fetzima % Vraylar n.m. Saphris % Namenda IR (4.1) (100.0)% Total Gastrointestinal (GI) (31.2) (7.1)% Linzess % Asacol /Delzicol (74.2) (61.9)% Carafate /Sulcrate % Zenpep % Canasa /Salofalk (8.3) (17.8)% Viberzi % Other GI (3.3) (29.2)% Total Women's Health (48.1) (16.2)% Lo Loestrin % Estrace Cream (7.1) (7.3)% Minastrin (71.6) (86.3)% Liletta % Other Women's Health % Total Anti-Infectives % Teflaro (2.2) (6.3)% Dalvance % Avycaz % Other Anti-Infectives % Diversified Brands (3.0) (1.0)% Bystolic /Byvalson % Armour Thyroid % Savella % Lexapro (3.4) (20.6)% Enablex n.a. PacPharma (11.0) (74.8)% Other Diversified Brands % Other Revenues % Net revenues $ 1,427.7 $ 1,449.1 $ (21.4) (1.5)% (1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers. 41

42 TABLE 10 (CONT D): NET REVENUES FOR US GENERAL MEDICINE SEGMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 Six Months Ended June 30, Change (1) Dollars % Total Central Nervous System (CNS) $ $ % Namenda XR (98.9) (29.1)% Namzaric % Viibryd /Fetzima (7.3) (4.4)% Saphris (2.5) (3.0)% Vraylar n.m. Namenda IR (9.8) (99.0)% Total Gastrointestinal (GI) (47.3) (5.6)% Linzess % Asacol /Delzicol (122.5) (54.3)% Carafate /Sulcrate % Zenpep % Canasa /Salofalk (11.1) (12.6)% Viberzi % Other GI (0.9) (5.6)% Total Women's Health (67.1) (12.0)% Lo Loestrin % Estrace Cream (14.3) (8.0)% Minastrin (110.1) (67.7)% Liletta % Other Women's Health % Total Anti-Infectives % Teflaro (5.0) (7.3)% Dalvance % Avycaz % Other Anti-Infectives % Diversified Brands (115.0) (16.0)% Bystolic /Byvalson (23.4) (7.5)% Armour Thyroid (3.4) (4.1)% Savella % Lexapro (8.7) (24.7)% Enablex (10.9) (85.2)% PacPharma (36.8) (84.6)% Other Diversified Brands (36.1) (19.5)% Other Revenues n.m. Net revenues $ 2,773.5 $ 2,902.8 $ (129.3) (4.5)% (1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers. 42

43 TABLE 11: NET REVENUES FOR INTERNATIONAL SEGMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 The following table details Allergan plc's product revenue for significant promoted products within the International segment for the three and six months ended June 30, 2017 and ALLERGAN PLC International Product Revenue (Unaudited; in millions) Three Months Ended June Change 30, Dollars % Table 11 Total Eye Care $ $ $ % Lumigan /Ganfort (0.1) (0.1)% Alphagan /Combigan (1.5) (3.4)% Ozurdex % Optive % Other Eye Drops (2.9) (6.3)% Restasis (2.0) (10.4)% Other Eye Care % Total Medical Aesthetics % Facial Aesthetics % Botox Cosmetics % Juvederm Collection % Belkyra (Kybella ) n.m. Plastic Surgery % Breast Implants % Earfold n.m. Regenerative Medicine n.a. Alloderm n.a. Other Regenerative Medicine n.a. Body Contouring n.a. Coolsculpting Systems & Add On Applicators n.a. Coolsculpting Consumables n.a. Skin Care (0.5) (15.6)% Botox Therapeutics and Other % Botox Therapeutics % Asacol /Delzicol % Constella % Other Products (1.6) (3.9)% Other Revenues % Net revenues $ $ $ % 43

44 TABLE 11 (CONT D): NET REVENUES FOR INTERNATIONAL SEGMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 Six Months Ended June 30, Change Dollars % Total Eye Care $ $ $ % Lumigan /Ganfort (2.3) (1.3)% Alphagan /Combigan (1.0) (1.2)% Ozurdex % Optive % Other Eye Drops (8.2) (9.2)% Restasis (3.1) (9.0)% Other Eye Care % Total Medical Aesthetics % Facial Aesthetics % Botox Cosmetics % Fillers % Belkyra (Kybella ) n.m. Plastic Surgery % Breast Implants % Earfold n.m. Regenerative Medicine n.a. Alloderm n.a. Other Regenerative Medicine n.a. Body Contouring n.a. Coolsculpting Systems & Add On Applicators n.a. Coolsculpting Consumables n.a. Skin Care (0.9) (15.5)% Botox Therapeutics and Other % Botox Therapeutics % Asacol /Delzicol (1.4) (5.3)% Constella % Other Products % Other Revenues % Net revenues $ 1,595.8 $ 1,430.3 $ % 44

45 TABLE 12: GAAP TO NON-GAAP RECONCILIATION OF FY 2017 PERFORMANCE NET INCOME ATTRIBUTABLE TO SHAREHOLDERS The following table provides a reconciliation of anticipated GAAP loss from continuing operations to non-gaap performance net income attributable to shareholders for the year ending December 31, 2017: Table 12 (in millions, except per share information) GAAP (loss) from continuing operations attributable to shareholders Adjusted for: Amortization Acquisition, licensing and other non-recurring charges Accretion and fair-value adjustments to contingent consideration Impairment/asset sales and related costs Non-recurring (gains) / losses Legal settlements Income taxes on items above and other income tax adjustments Non-GAAP performance net income attributable to shareholders LOW HIGH $ (3,465.0) $ (3,330.0) 7, , , , , , (2,020.0) (2,015.0) 5, ,855.0 Diluted earnings per share Diluted (loss) per share from continuing operations attributable to shareholders- GAAP Non-GAAP performance diluted net income per share attributable to shareholders Basic weighted average ordinary shares outstanding Effect of dilutive securities: Dilutive shares Diluted weighted average ordinary shares outstanding $ (10.37) $ (9.97) $ $