Full Year 2009 Results
Shire plc
February 19, 2010

Angus Russell

Michael Cola

Chief Executive Officer

President, Specialty
Pharmaceuticals

Graham Hetherington

Sylvie Grégoire

Chief Financial Officer

President, Human
Genetic Therapies

Our purpose

We enable people with life-altering conditions to lead better lives

1

THE “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIESLITIGATION REFORM ACT OF 1995

Statements included herein that are not historical facts are forward-looking
statements. Such forward-looking statements involve a number of risks anduncertainties and are subject to change at any time. In the event such risks or
uncertainties materialize, Shire’s results could be materially adversely affected.
The risks and uncertainties include, but are not limited to, risks associated with:
the inherent uncertainty of research, development, approval, reimbursement,
manufacturing and commercialization of Shire’s Specialty Pharmaceutical and
Human Genetic Therapies products, as well as the ability to secure andintegrate new products for commercialization and/or development; government
regulation of Shire’s products; Shire’s ability to manufacture its products insufficient quantities to meet demand; the impact of competitive therapies on
Shire’s products; Shire’s ability to register, maintain and enforce patents andother intellectual property rights relating to its products; Shire’s ability to obtainand maintain government and other third-party reimbursement for its products;
and other risks and uncertainties detailed from time to time in Shire’s filings
with the Securities and Exchange Commission.

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2

Agenda• Opening remarks

Angus Russell• Financial review

Graham Hetherington• Specialty Pharma update

Michael Cola

• HGT update

Sylvie Grégoire• Concluding remarks

Angus Russell

• Q&A

All

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3

Opening remarks

Angus Russell
CEO

Our purpose

We enable people with life-altering conditions to lead better lives

4

Excellent results in a transformational year

• Core product sales(1) up 25% to $2.1 billion• Up 28% on Like for Like(2) basis• Q4 2009 core product sales(1) up 36% versus Q4 2008

• FY 2009 Non GAAP diluted earnings per ADS: $3.49• Q4 2009 Non GAAP diluted earnings per ADS: $1.11• Leveraging our existing infrastructure• Decrease in full year SG&A expense versus 2008

• Cash generation of $921 million during 2009
(1) Core products represent Shire’s products excluding ADDERALL XR(2) 'Like for Like Growth' excludes movements in exchange rates by applying 2008 exchange rates to 2009 results.

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5

Shire’s business model has been the key to our successBusiness Model

Financial impact past 7 years(2003 – 2009)• Specialty
biopharmaceuticalcompany% Growth

CAGR• Treatment of symptomatic
diseases

Revenues

190%

16%

• Small sales forces

EBITDA

169%

15%• Focus on lower risk
projects with relatively fastdevelopment timelines andstrong IP protection

Note: data covers timeframe of 1/1/2003 through 12/31/2009

To be as brave as the people we help
6Strategy is delivering

Focused on the needsof patientsVPRIV (velaglucerase alfa) and REPLAGAL currently
addressing unmet needs

Launching new
products

INTUNIV – first and only selective a2A agonist indicatedfor the treatment of ADHD*

Acquisitions andgeographic expansion

Presence in 28 countries and growing
Acquisition of EQUASYM facilitates immediate access to
EU ADHD market

Pipeline opportunities
for long term growth

Progress in development programs, antithrombotic,
CarrierWave technology, HGT research, and newtechnology (Santaris)

Sustaining ourfinancial performance

Aspiration to grow sales in the mid-teens range year-onyear on average over the course of 2009 through 2015

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7
*The active ingredient in INTUNIV, is thought to selectively stimulate a2A adrenoreceptors in the prefrontal cortex. See Intuniv Wayne, PA: Shire US Inc; 08/2009 andWang M, Ramos BP, Paspalas CD, et al. α2A-Adrenoceptors strengthen working memory networks by inhibiting cAMP-HCN channel signaling in prefrontal cortex. Cell. 2007;129:397-410

Financial Review
Graham Hetherington
CFO

Our purpose

We enable people with life-altering conditions to lead better lives

8Strong 2009 earnings

Reported EPS-ADS*: $3.49

Adjusted EPS-ADS*: $3.17(Excludes impact of ADDERALL XR change in best estimate)

Ahead of Expectations+ Strong Q4 Product sales- Higher R&D+ XR Royalties- Higher SG&A
+ XR Product sales$2.83

2009 Guidance framework (updated Oct 2009)
EPS-ADS Range

To be as brave as the people we help

$3.23

* EPS-ADS represents Non GAAP diluted earnings per ADS

9

2009 Performance summary
Financial Year

Fourth Quarter

2009
$m

2008
$m

Reported
GrowthLike for Like
Growth(3)2009$mReported
GrowthLike for Like
Growth(3)

3,008

3,022

-

+2%

893

+17%

+14%

982

1,035

-5%

-5%

336

+26%

+24%

Adjusted EPS - ADS (1) (2)

$3.17

n/a

n/a

$0.79

n/a

Reported EPS - ADS (1)

$3.49

$3.86

-10%

$1.11

+9%

Total Revenues

EBITDA (1)(1) These are Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalent used to calculate these measures.
(2) Adjusted EPS – ADS on a diluted basis excludes the 32c effect of the change in best estimate of Medicaid rebate liability for ADDERALL XR.
(3) 'Like for Like Growth' excludes movements in exchange rates by applying 2008 exchange rates to 2009 results.

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2009 Revenue summary
Financial Year

Fourth Quarter

2009
$m

2008
$m

Reported
GrowthLike for Like
Growth(3)2009$mReported
GrowthLike for Like
Growth(3)Core Product Sales (1)

2,067

1,653

+25%

+28%

585

+36%

+32%

ADDERALL XR Sales

627

1,101

-43%

-43%

192

-30%

-30%

Total Product Sales

2,694

2,754

-2%

-

777

+10%

+8%

Royalty and Other
Revenue

314

268

+17%

+20%

116

+89%

+87%

Total Revenues

3,008

3,022

-

+2%

893

+17%

+14%

(1) Core product sales represent Shire’s product sales excluding ADDERALL XR.
(2) These are Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalent used to calculate these measures.
(3) 'Like for Like Growth' excludes movements in exchange rates by applying 2008 exchange rates to 2009 results.

To be as brave as the people we help11

2009 Total revenues in-line with 2008

+$48m
+$96m
+$186mXR
Prod Sales

+$18m

+$29m

ELAPRASE FOSRENOLREPLAGAL

+$37m
Other
Other

LIALDAVYVANSE$3.0bn+$68m$3.0bnXR Royalties-$474mCore Products Reported Growth
FY +25%
Q4 +36%2008
ACTUAL2009
ACTUALTo be as brave as the people we help
12

2009 Portfolio Strength and Diversity – Core Product Sales
Financial Year

Fourth Quarter

2009
$m

2008
$m

Reported
GrowthLike for Like
Growth(2)2009$mReported
GrowthLike for Like
Growth(2)VYVANSE

505

319

+58%

+58%

145

+41%

+40%

ELAPRASE

353

305

+16%

+20%

94

+26%

+19%

LIALDA / MEZAVANT

236

140

+68%

+69%

67

+63%

+62%

PENTASA

215

186

+16%

+16%

58

+23%

+23%

REPLAGAL

194

176

+10%

+16%

61

+37%

+26%

FOSRENOL

184

155

+19%

+23%

47

+40%

+33%

FIRAZYR

6

-

n/a

n/a

2

n/a

n/a

INTUNIV

5

-

n/a

n/a

5

n/a

n/a

VPRIV

3

-

n/a

n/a

3

n/a

n/a

OTHER

366

372

-2%

+5%

103

+21%

+16%

CORE PRODUCT SALES (1)

2,067

1,653

+25%

+28%

585

+36%

+32%

(1) Core product sales represent Shire’s product sales excluding ADDERALL XR.
(2) 'Like for Like Growth' excludes movements in exchange rates by applying 2008 exchange rates to 2009 results.

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13

Core product sales growth
FY 2009$2.1bnFY 2007$1.1bn

700
600
500

$m

400
300

CAGR = 35%

200
100
0
Q1 0 7

Q2 0 7

Q3 0 7 Q4 0 7

Q1 0 8

Q2 0 8

Q3 0 8 Q 4 0 8

Q1 0 9Q2 0 9Q3 0 9 Q4 0 9Core product sales represent Shire’s product sales excluding ADDERALL XR.

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14

Operating leverage emerging – Key financial ratiosYear on Year Movements:

FY 2009

FY 2008-2%+27%

Core Product Sales (ex XR)

+25%

+45%

R&D(1)+10%+27%

SG&A(1)-3%+13%

R&D(1)

19%

17%

SG&A(1)42%

42%

R&D(1)

25%

29%

SG&A(1)55%

71%

Total Product Sales

Ratios:% of Total Product Sales% of Core Product Sales(1) These are Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalents used to calculate these measures.

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2009 Cashflow
Millions of USD+921

Cash generation- 262

Capital expenditure- 253

Tax and interest payments- 120

EQUASYM, licenses & Jerini payments- 54

Payment of dividend

Other financing+27

Proceeds from Virochem sale

+19

Proceeds from sale of Jerini
Peptides businessNet cash Inflow

Cash and cash equivalents at December 31, 2008

247

Cash inflow to December 31, 2009285

Cash and cash equivalents as at December 31, 2009 (1)532Convertible Debt

+7

(1,100)Finance lease obligation+285

Net debt at December 31, 2009

(47)
(2)

(615)

(1) Shire’s balance of cash and cash equivalents at December 31, 2009 includes $33m of restricted cash.
(2) Shire has a revolving credit facility of $1.2bn which was undrawn at December 31, 2009.

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16

ADDERALL XR dynamics
Macro assumptions:• Citizen Petition holds through 2010
• States continue to invoice for Medicaid
rebates at 2009 levels

2010 Dynamics versus Q4 2009(see appendix for detailed analysis)

US Product Sales:

Total ADDERALL XR Revenues (Including Royalties)
600

Demand sales

Further brand erosion by authorised
generics

Supply Chain stock

Destocking due to lower demand

Sales deductions

Sales deductions at 60-70% as
Medicaid & Contract Managed Caremix increases

Range of Analyst Expectations
500

All Analyst Consensus

400

300

Potential Range$mOther Sales:

200

High
100

Teva/Impax

2010

2011

2012

2013

=

Royalties:

Low
2009

Promotion behind newly launched
VyvanseCanada

2014

2015

Impax

- Q4 2009 includes Impax pipeline(c.75% of Royalty)+ Potential for Impax to grow share

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17

Emerging shape of Shire 2010 Income Statement
2010 Dynamics
Direction
Versus FY 09(see Appendix for more analysis)Core Product Sales

2009 growth continues, with potential toaccelerate

Total Product Sales

Core product growth > AXR decline

Royalties

Growth in AXR royalty offset by lower otherroyalty income

Gross Margins=• 5-10% growth in R&D and SG&A investment• Operating leverage on Core Product Sales

R&D and SG&A
Tax rate=

Reported EPS-ADS
Note: Sensitivity to Forex Movements:
EPS-ADS $A 10 cent strengthening of the $ against the €-0.08
A 10 cent strengthening of the $ against the £
0.03
-0.05
Interest on convertible = $34m pa

To be as brave as the people we help18

2010 Organic growth dynamics

GROWTH DYNAMICS KEY ELEMENTSSUSTAINED CORE
PRODUCT SALESGROWTH• Continued growth from existing portfolio• New product launches e.g. INTUNIV, VPRIV and REPLAGAL• Continued international growth

LEVERAGEINFRASTRUCTURE
INVESTMENT• SG&A $ increases less than product sales over time
• Sustained tax rate
• Completion of manufacturing expansion

INVESTMENT INPIPELINE• Focused growth in R&D $• Leverage technology platforms• Incremental returns from investments• Sustained future growth

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19

Specialty Pharma update

Michael Cola
President, Specialty Pharmaceuticals

Our purpose

We enable people with life-altering conditions to lead better lives

20

Specialty Pharma – 2009 key highlights•

Successfully managed through AXR generic erosion by capturingsignificant cash flow while growing VYVANSE sales•

Gained FDA approval for and launched INTUNIV•

Initiated multiple VYVANSE non-ADHD programs•

Acquired EQUASYM to jump-start EU ADHD footprint•

Approaching $0.5bn in net sales for the GI portfolio•

Expanded pipeline through multiple initiatives including the
progression of multiple CarrierWave programs and SPD 535(anagrelide analogue)

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21

VYVANSE demonstrated outstanding growth in 2009 in the face of
ADDERALL XR going generic••Measure2009 vs. 2008

Net Sales+58%

TRx Volume+65%

Dec Avg Market Share

13.3% (+2.6 share points)

Total ADHD Market
TRx Volume+9.2%

Q409 growth vs. Q408 growth was similarly strong
Market share grew in both the pediatric and adult patient segments

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Source: IMS NPA Monthly

22

INTUNIV Launch update• Although it is still early post launch for INTUNIV, we arevery encouraged by the early indicators• For the week ending February 5th, 2010, the overall national
market share was 1.2%, and it is significantly higher in theimportant child / adolescent psychiatry and general psychiatry
subsets of prescribers• Approximately 7,500 physicians have prescribed INTUNIV• Payors: formulary status still being reviewed by managed careplans. Currently most commercial managed care plans providing
unrestricted access. Medicaid reimbursement progressing as
expected
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Source: IMS NPA

23

Select growth opportunities for Specialty Pharma portfolio•

INTUNIV: continuing progress on life cycle opportunities• On-going studies to evaluate efficacy in combination with stimulants andevening dosing•

VYVANSE non-ADHD: Phase 2 clinical trials actively enrolling
patients with data beginning in 2011
• Adjunctive therapy in depression• Cognitive impairment in depression• Negative symptoms and cognitive impairment in schizophrenia•

Globalization of the ADHD portfolio• VYVANSE• Launched in Canada this month• Market authorization filings under review in Mexico and Brazil• Continued enrollment of EU registration trials•

LIALDA: global Phase 3 trials in diverticulitis are ongoing

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24

Efforts continue to progress early pipeline products• SPD 535 (anagrelide analogue) - platelet lowering ability
without PDEIII inhibition• Initial PoC program targets prevention of thrombotic complications
associated with arteriovenous grafts in hemodialysis• Proof-of-principle for broader utility as an anti-coagulant• Estimated data availability – mid-2010• CarrierWave• Primarily focused in pain and ADHD
• Estimated data availability - mid-2010

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25

HGT update
Sylvie Grégoire
President, Human Genetic Therapies

Our purpose

We enable people with life-altering conditions to lead better lives

26

$353m

2009

$0.5m

$6m

2009

Fabry franchise – REPLAGAL• 60% of 2009 patient accrual occurred in Q4 with the
majority coming from patient switches• Q4 ‘09 revenue increase 26% vs. Q3 ’09 (20% CER)
• Exit 2009 as market leader in the EU• Early access for patients through FDA-approved
treatment protocol and emergency IND• BLA filed December 2009

$305m

$176m

$194m

2009

•

HAE franchise - FIRAZYR• Now launched in twelve countries, including the fivelargest European countries• Making good progress on reimbursement• Well received by patients and treating physicians• Additional marketing authorization submissions filed

2008

•

Hunter franchise – ELAPRASE• 20% CER revenue growth vs. 2008
• Lexington roller bottle facility - Approved in EU and on
track for H1 2010 approval in the US

2008

•

2008

HGT – 2009 key highlights – current marketed products

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27

More than 300 cumulative patients added to REPLAGAL therapy in2009 with the majority coming from patient switches

Net new patient additions

200

150

100

50

0
Q1

Q2
Net new treatment naïve patients

Q3

Q4

Patient switches

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28

HGT – 2009 key highlights•

Responding to evolving market demands in 2009
• All three Phase 3 studies demonstrated positive results• Manufacturing timelines accelerated by 18 months• Early access programs for patients implemented in the US and many
countries around the world• Over 400 patients have received VPRIV• NDA submitted – PDUFA date February 28, 2010
• MAA submitted, accelerated assessment granted• Manufacturing and clinical site inspections complete
To be as brave as the people we help29

Product launch preparations for 2010 and beyond

•

VPRIV
• Intended price at launch: $1350 for 400Uvial• Direct co-pay assistance to eligible patients in US to reduce
patient burden/access barrier• Continued financial assistance through patient associations• Sales force training and readiness efforts complete• REPLAGAL• Focus on market growth and switch• Continue to address unmet need in the US• Ongoing discussions with FDA regarding BLA submission

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30

HGT product development pipeline• FIRAZYR• FAST-3 and self administration studies continue to enroll• Complete response to FDA by late 2010

• idursulfase-IT for Hunter CNS• First patient dosed• Sanfilippo A• Phase 1 to begin H1 2010

• HGT 1110 for MLD• Focus shifted to direct CNS delivery• HGT research and Santaris collaboration• Protein therapy• Locked nucleic acid technology
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31

Leveraging our infrastructure
Direct business in 28 countries and products
distributed in approximately 50 countries

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32

Investment for future growth

•
•
•
•

Manufacturing to begin July 2010
Additional capacity up to four 2000L bioreactors
Alternate site for manufacturing
Single use bioreactor technology further reduces manufacturing risk

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33

Concluding remarks
Angus Russell
CEO

Our purpose

We enable people with life-altering conditions to lead better lives

34

Potential launches from 2010-2016*

2010

2011

2012

2013-2016• VYVANSE (Canada)• FOSRENOL CKD(EU)• VPRIV (US&EU)• FIRAZYR (ROW)• REPLAGAL (US)• VYVANSE (Latin
America)• FIRAZYR (US)• VPRIV (ROW)• VYVANSE (EU)• HGT 1110 (MLD)• IDURSULFASE-IT• SANFILIPPO ERT• HGT 2610 (GLD)• JUVISTA• LIALDA
DIVERTICULITIS• SPD 535

*Subject to regulatory approvals

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35

Solid foundation for future growth•••

Strong financial performance•Core product sales* up 25% in 2009•

Proactive cost management•

Strong cash generation

Strategy is delivering•

Driving growth from balanced portfolio of 8 key products•

INTUNIV launch off to a strong start•

VPRIV now available pre-approval•

REPLAGAL BLA filed in December 2009•

Increasing our global reach•Developing, advancing and enhancing our strong pipeline

Aspiration to grow sales in the mid-teens range on average
between 2009 and 2015
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*Core products represent Shire’s products excluding ADDERALL XR

36

Questions and Answers

Our purpose

We enable people with life-altering conditions to lead better lives

37

APPENDIX

Our purpose

We enable people with life-altering conditions to lead better lives

38

2009 Key financial ratios

FINANCIAL RATIOS (% of product sales)

FY 09

y-o-y
Growth

FY 08

y-o-y
Growth

Product sales

2,694

-2%

2,754

27%

Gross margin

86%

R&D

19%

10%

17%

27%

SG&A

42%

-3%

42%

13%

EBITDA(1) (% of product sales)

25%

28%

EBITDA(2) (% total revenue)

33%

34%

88%

FINANCIAL RATIOS (% of core product sales)
Core product sales

2,067

25%

1,653

R&D - Core product sales

25%

29%

SG&A - Core product sales

55%

71%

45%

(1) Excluding royalties and other revenues.
(2) Including royalties and other revenues.
This slide contains Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalent used to calculate these measures.

To be as brave as the people we help
39

ADDERALL XR Dynamics
Direction
Versus
Q4 09

2009
Q2

TRx (‘000s)

2,288

1,181

875

911

5,255

Value per Rx$209.53$210.20$229.20$226.44$215.88

Demand Sales

$479m

$248m

$201m

$206m

$1,134m

Further brand erosion by authorized
generics

Supply Chain
stocking/(destocking)($16m)($67m)$6m$23m($54m)

Destocking due to lower demand

Gross Sales

$463m

$181m

$207m

$229m

$1,080m

Sales Deductions($173m)($131m)($151m)($52m)($507m)

37%

72%

73%

23%

47%

$290m

$50m

$56m

$177m

$573m

$6m

$6m

$6m

$9m

$27m

Net Sales - Teva/Impax

-

$11m

$9m

$6m

$27m

Total Product Revenue

$296m

$67m

$71m

$192m

$627m

-

$14m

$2m

$52m

$68m

$296m

$81m

$73m

$244m

$695m

as % of Gross Sales
Net Sales - US
Net Sales - Canada

XR Royalties
Total Revenues

2009
Q3

2009
Q4

2009
Q1

2009
FY

2010 Dynamics

Sales deductions at 60–70% as Medicaid& Contract Managed care mix increases

Promotion behind newly launched
VYVANSE

=-Q4 includes Impax pipeline (c. 75% of royalty)+ Potential for Impax to grow share

Key assumptions: CP holds through 2010; and States continue to invoice for Medicaid rebates at 2009 levels.

To be as brave as the people we help
40

Emerging Shape of Shire Income Statement

Core product sales
versus 2008
Total product sales
versus 2008
Royalties
versus 2008
Gross margin (1) (2)R&D (2)versus 2008

SG&A (2)versus 2008
Tax Rate

2009
Q1

2009
Q2

2009
Q3

2009
Q4

2009
FY

$459m

$491m

$532m

$585m

$2,067m

+24%

+20%

+20%

+36%

+25%

$756m

$558m

$603m

$777m

$2,694m

+20%

-21%

-15%

+10%

-2%

$51m

$67m

$60m

$115m

$293m

-22%

+3%

-1%

+109%

+19%

89%

84%

84%

87%

86%

$117m

$118m

$144m

$144m

$523m

+$9m

-$9m

+$27m

+$21m

+$48m

$271m

$285m

$267m

$315m

$1,138m

-$27m

-$14m

-$16m

+$26m

-$31m

24%

2%

33%

31%

25%

Direction
Versus FY 09

2010 Dynamics

2009 growth continues, withpotential to accelerateCore product growth offsetting
decline in ADDERALL XR sales

Higher authorized generic AXR
royalties offset by lower otherroyalty income=•5-10% growth in R&D and
SG&A investment•Operating leverage on Core
Product Sales=(1) Gross margin calculated as a percentage of product sales(2) These are Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalents used to calculate these measures.
Interest on convertible = $34m pa

To be as brave as the people we help41

2009 Royalties
Financial Year

Fourth Quarter

2009
$m

2008
$m

Reported
Growth2009$m

Reported
Growth3TC and ZEFFIX

164

181

-9%

44

+5%

ADDERALL XR

68

-

n/a

52

n/a

REMINYL

48

63

-25%

14

+1%

Other

13

2

n/a

5

n/a

Total Royalties

293

246

+19%

115

+109%

To be as brave as the people we help42

2009 FY Operating income / EPS
Financial Year
Operating income

2009
$m

2008
$m

Fourth Quarter

Reported
Growth2009$m

Reported
Growth

+51%

268

+39%

GAAP

620

412

Adjustments

269

546

Non GAAP(1)

889

958

-7%

313

+30%

GAAP

$2.69

$0.86

+214%

$0.94

+20%

Non GAAP(1)

$3.49

$3.86

-10%

$1.11

+9%

45

EPS - ADS (diluted)(1) These are Non GAAP financial measures. See appendix for a list of items excluded from the US GAAP equivalent to calculate these measures.

To be as brave as the people we help43

2009 FY EPS reconciliation
FY 09

FY 08

$m

cents/ADS$mcents/ADSUS GAAP Net income / Diluted EPS (ADS)

491.6

269.1c

156.0

85.8c

Amortization and asset impairments

136.9

72.6c

223.3

118.5cAcquisitions and integration activities

51.0

26.3c

273.4

141.9cDivestments and re-organizations

81.3

42.0c

49.4

25.6c

Non GAAP adjustments to operating income

269.2

140.9c546.1

286.0cInterest expense (TKT appraisal rights)

-

-

73.0

37.9c

Write down of investments

-

-

58.0

30.1c

Gain on disposal of investment(55.2)(28.5c)(9.4)(4.9c)

Discontinued operations

12.4

6.4c

17.6

9.1c

Taxes on above adjustments(75.7)(39.0c)(112.4)(58.2c)Non GAAP Net income / Diluted EPS (ADS)

642.3

348.9c728.9

385.8cTo be as brave as the people we help
44

2009 Cash generation reconciliation
Financial Year
2009

2008

$m
Net cash provided by operating activities
Payments for acquired and in-licensed products

Fourth Quarter

$m

2009
$m

2008
$m

627

800

237

275

37

-

-

-

Acquisition of METAZYM from Zymenex

-

135

-

-

Class action escrow payment

-

27

-

-

Interest on TKT appraisal rights settlement

-

147

-

147

Tax and interest payments (net)

253

134

32

27

Effect of foreign exchange on cash

4

(12)

-

(6)

921

1,231

269

443

Cash Generation

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Presentation of 2008 R&D and SG&A
To be consistent with our 2009 presentation, for 2008 comparatives we have reclassified certain Medical Affairs
costs related to promotional and marketing activities from R&D to SG&A, as follows:
All amounts in $ million

2008 Q1

2008 Q2

2008 Q3

2008 Q4

As reported

Reclassified

As reported

Reclassified

As reported

Reclassified

As reported

Reclassified

R&D

122.0

111.8

145.3

136.4

127.1

120.2

132.2

125.9

SG&A

334.5

344.7

428.8

437.7

320.4

327.3

339.2

345.5

456.5

456.5

574.1

574.1

447.5

447.5

471.4

471.4

R&D

119.1

108.9

135.7

126.8

123.7

116.8

129.1

122.8

SG&A

287.4

297.6

289.6

298.5

276.7

283.6

282.6

288.9

406.5

406.5

425.3

425.3

400.4

400.4

411.7

411.7

US GAAPNON GAAP

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Non GAAP measures••

This presentation contains financial measures not prepared in accordance with US GAAP.
These Non GAAP financial measures are used by Shire’s management to make operating
decisions because they facilitate internal comparisons of the Company’s performance to historicalresults and to competitors’ results. They should not be considered in isolation from, as substitutes
for, or superior to financial measures prepared in accordance with US GAAP.

•

The following items are excluded from these non-GAAP financial measures:
Amortization and asset impairments:•
Intangible asset amortization and impairment charges; and•Other than temporary impairment of investments.
Acquisitions and integration activities:•
Upfront payments and milestones in respect of in-licensed and acquired products;•
Costs associated with acquisitions, including transaction costs, and fair value adjustments on contingent
consideration and acquired inventory;•
Costs associated with the integration of companies; and•Incremental interest charges arising on the settlement of litigation with the former dissenting shareholders of
TKT.
Divestments, re-organizations and discontinued operations:•
Gains and losses on the sale of non-core assets;•
Costs associated with restructuring and re-organization activities;•
Termination costs;•
Costs associated with the introduction of the new holding company; and•Income / (losses) from discontinued operations.

To be as brave as the people we help
47