PERRIGO COMPANY PLC Canaccord Genuity's 46th Annual Growth Conference

Good afternoon, everyone. I'm Susan Anderson, one of Canaccord's analysts in the consumer space, and we're very excited to have here Perrigo with us, including Interim President and CEO, Albert Manzone, CFO, Eduardo Bezerra. With that, Albert, I'll turn it over to you to give us a brief update and overview of Perrigo, and then we can do some Q&A.

Thank you, Susan. I'm going to stand up. Thank you, Susan, for having us, and thank you all for attending today Perrigo presentation. I'm going to take you through a quick presentation and then happy to take any questions that you may have. If we look at this is the usual, so you have all read it. If I go to Perrigo, the Perrigo mission is pretty fundamental and simple, which is really to provide affordable quality self-care to the larger number of people in the world. That's really the mission. The market we are competing in is large and attractive with about EUR 400 billion target market. We do have something, and I will come back to it, which is pretty unique. We have the largest number of molecules that we can work with, which is 250 molecules and formulations.

We have put in place over the last year a model which I will come back to, which is really to stabilize, streamline, and then strengthen the Perrigo Company. I'm going to talk to you about that. Let me start with the addressable market, the EUR 400 billion. This is obviously in OTC and specialty care. This is a large market. It's resilient, it's growing, and it's needed. This is a good market to be in. It provides essential needs, whether it is in pain, in sleep, cessation, et cetera. Big global expansion opportunity, of course, because the needs of the consumer, and I will also come back to it, the needs of the consumer across the world on those basic needs is pretty much the same. In terms of our position, I would say we have two main geographic positions.

One is the U.S., the other one is Europe. When I say U.S., you have obviously a piece in Canada. Think about the U.S. as mostly a store brand business. 90% of our business in the U.S. is store brands. It's brands that we have the name of the retailer on it. We do have over 50% share of all store brand business in North America, and we have 60% household penetration, which is again, one of the highest, if not the highest, which means that 60% of U.S. households will have one of our products in their home. If you move to Europe, you have a very different business. You have a mostly branded business. 90% is branded, 10% only store, and that's mostly in the U.K. In Europe, we have in the U.K. 80% household because we play both branded and store brands.

For the rest of the markets in Europe, we are mostly a branded business with very strong brands like Compeed or Jungle Formula. We have obviously, if you look at the world, big opportunities for international expansion in due time. This is essentially on the right side, the categories we compete in. We have about eight categories, which are pain and sleep, healthy lifestyle, digestive health, skin health, infant formula, oral care, upper respiratory. We are in the process of simplifying that portfolio, which I am going to come to. We have, as I told you, number 1 share in U.S. store, over 50%, and we have number 1 and number 2 brands in Europe. You see essentially some of the pictures of some of the brands that we do have across the two regions. What is important is how do we take those benefits forward?

What you have here is 250 molecules and formulations. What we have developed over the last one year is the ability to innovate across those molecules and then deploy those in any market at any price point that we so choose to do with our retail partners or with the consumers. This is very important. This is, I think, one of the key connector points in between the store brands and the branded business. Our innovation is agnostic. Since one year, we are going to have next year 58% that is going to create a longer chassis, common chassis, and then deploy it across different brands and different prices. We do this with very strong retail partnership.

With a 50% of U.S. share of branded store brands and with the ability to innovate and create demand generations, we are the only, I would say, store brand business that can really sit down with the retail partners, co-develop, co-innovate, and launch and create demand generation. We are very excited by the work we are doing with the big retailers in North America, be it brick and mortar, be it e-commerce Partners. For that, we have, in addition to the innovation and the demand generation and the retail partnerships, you need the muscle behind, which is, for us, the largest U.S. OTC manufacturing capabilities in North America, strong in Europe, which allows us to essentially scale our innovation and to provide it at low cost, which is essentially what you want in a store brand business.

We have, of course, strong regulatory expertise, which, as you know, is critical in this industry, especially when you work across different markets. What I want to spend a little bit of time is on the 3S plan. One of the things some of you may know that I have been on board since nine weeks. I have said the first thing most important is to stay the course. The strategy, which I know since being on the board in 2022, is very foundational and is what Perrigo needs. The first thing that we needed to do was to stabilize the business, which has been started a year ago. The first thing that you wanted to do when you think about store brands, when you think about partnering with retailer, you want good service levels.

This is what we have been doing, increasing our service levels, which allow us to work closely with the retailers. We also have, as you know, an infant formula business, which we have stabilized, and that has gone a long way to help deliver consistent execution, which we're in the process of. The second thing is to simplify, and I'm big on simplification because simplification drive execution. A sharper, I would say, strategy. On that sharper strategy, simplification of the portfolio is key. We have two businesses that are under strategic review. One is the infant formula and the other one is oral care. We have already taken care of dermocosmetics.

We have cost savings in place, and that allows us, number one, to improve, of course, the profitability of the business, but also to deleverage, which I would come back to the end, is one of my top three priorities. Once you stabilize and streamline the business, of course, what you are left to do is to strengthen it. I would say that there, the thing that I'm excited about has been essentially to put in place a category-led model. What does that mean? Very simply put, instead of doing everything bottom up, starting from a given market, you start from the consumer standpoint, which for anybody that has been in the business, you always know that if you start with a consumer, you are usually in a good place.

It's even more important for us since in this type of category we're in, the consumer needs are pretty similar across the world in terms of pain, sleep, or any of those categories. This category-led model has been launched in Q1 2026. It's already proven very effective. 58% of our innovation next year is going to be launched with this in mind, with a category-led model, with the right price points, and it's going to be 3x what it was this year. We're excited about this. We're already seeing gains in market share. The market, as you know, and we can talk during the Q&A, was soft in the first half, the market in general. We were gaining share. In the second half, the market is going to expect to be coming back.

We are continuing to gain share as we get into the Q3, and we have a lot of innovation and demand generation and normalized seasonality that we're looking forward to drive the second half. What I would say is that so far, what I've been talking to you about is a lot of structural improvements, which are much more important, we think, than the transitory headwinds that we have had in the first half of 2026. Those structural improvements are demonstrated by the share improvements and gains by the improving cost structure, by the enhanced retail partnerships, because we are doing a lot of work with them as we speak, and by a simplified portfolio. What you look on the right side, as you look at the results, is transitory headwinds, which are not here to stay.

But of course, there has been, for a lot of the industries, a first half where the consumer were a little bit skittish with economic uncertainty. Number 2, the cough cold season and actually allergy season has been abnormally low. We project for the second half some level of normalization, but all not the way too bright. We are conservative in a way. We have obviously, with the lower cold flu season, we have an under-absorption in the manufacturing facility, as a result of this. With the interest rates where they are, retailers have been destocking in the first half. Most of those noise will recede in the second half, which is why when we look at our projection and our full year, we are where we are. So what is exciting about Perrigo?

I have been brief, but I have told you a little bit, and the important thing is when you look at the multiple, you see a significant gap in between Perrigo and the rest of the sector. I will say that, first of all, in all humility, we have to re-earn the trust of the investment community. That is normal, because we have been inconsistent in the past, and that would come one quarter at a time. I was happy about Q2, and I was happy about the reaction to Q2, which seems to indicate that if we put one good quarter after another, and we not only have a sharper strategy but also great execution, we are going to get some re-rating.