Mylan Reports Second Quarter 2014 Adjusted Diluted EPS of $0.69, In Line With Guidance

Mylan Reports Second Quarter 2014 Adjusted Diluted EPS of $0.69, In Line With
                                   Guidance

Narrows 2014 Adjusted Diluted EPS Guidance Range to $3.25 to $3.45

Reaffirms Opportunity to Accelerate 2018 Target of at Least $6.00 in Adjusted
Diluted EPS

PR Newswire

PITTSBURGH, Aug. 7, 2014

PITTSBURGH, Aug.7, 2014 /PRNewswire/ -- Mylan Inc. (Nasdaq: MYL) today
announced its financial results for the three and six months ended June30,
2014.

Second Quarter 2014 Highlights

  oTotal revenues of $1.84 billion, up 8% versus the prior year period with
    positive growth across all regions and businesses

       oGenerics segment third party sales of $1.53 billion, up 6% on a
         constant currency basis
       oSpecialty segment third party sales of $287.8 million, up 22%

  oAdjusted gross profit of $923.4 million, up 11%; GAAP gross profit of
    $808.8 million, up 9%
  oAdjusted gross margin of 50%, up from 49% in the prior year period; GAAP
    gross margin of 44%
  oAdjusted diluted earnings per share (EPS) of $0.69, an increase of 1% and
    in line with company guidance; GAAP diluted EPS of $0.32
  oTotal revenue guidance for 2014 narrowed to $7.8 billion to $8.0 billion;
    adjusted diluted EPS guidance for 2014 narrowed to $3.25 to $3.45
  oReaffirms opportunity to accelerate target of at least $6.00 in adjusted
    diluted EPS in 2018.^(1)

Mylan CEO Heather Bresch commented, "We continued to deliver strong results in
the second quarter of 2014, driven by double-digit revenue growth in our
Specialty business and Rest of World region, and continued solid performance
in Europe and North America. We were able to achieve these results, which were
right in line with our expectations, despite ongoing delays in approvals of
key products by the U.S. Food and Drug Administration, once again
demonstrating our ability to execute and maximize our global platform and
commercial opportunities.

"Further, the recently-announced strategic acquisition of Abbott's non-U.S.
developed markets specialty and branded generics business builds on our strong
momentum, expands and further diversifies our business in our largest markets
outside of the U.S., and clearly positions Mylan for the next phase of our
growth. The anticipated enhanced financial flexibility created by this
transaction immediately positions us to execute on additional highly strategic
and financially accretive transactions in the near term. As a result, we see
opportunities to accelerate achievement of our $6.00 adjusted diluted EPS
target in 2018.

"With that said, given the pendency of the Abbott transaction and management's
current activities around additional strategic opportunities, we will be
postponing our Investor Day until a later date."

Mylan CFO John Sheehan added, "Our second quarter results saw continued growth
across all of our regions and businesses, and we look forward to a strong
second half of 2014. In addition, during the second quarter, we continued to
generate strong cash flows which further improves our financial
flexibility—flexibility that will be additionally enhanced through the
proposed Abbott transaction."

Total Revenue
                                 Three Months Ended
                                 June 30,
                                                         Percent
(Unaudited; in millions)         2014        2013
                                                         Change
Total Revenues                   $ 1,837.3   $ 1,701.7   8    %
Generics Third Party Net Sales 1,528.5     1,450.4     5    %
North America                    736.6       716.5       3    %
Europe                           395.9       359.4       10   %
Rest of World                    396.0       374.5       6    %
Specialty Third Party Net Sales  287.8       236.9       22   %
Other Revenue                    21.0        14.4        46   %

Generics Segment Revenue

Generics segment third party net sales were $1.53 billion for the quarter, an
increase of 5% when compared to the prior year period. When translating third
party net sales for the current quarter at prior year comparative period
exchange rates ("constant currency"), third party net sales would have
increased by 6%.

  oThird party net sales from North America were $736.6 million for the
    quarter, an increase of 3%. The increase was due principally to sales from
    new products, and to a lesser extent, net sales from acquired businesses
    partially offset by pricing and volume on the base business. The effect of
    constant currency on third party net sales was insignificant in North
    America.
  oThird party net sales from Europe were $395.9 million for the quarter, an
    increase of 10%, or 5% on a constant currency basis. This increase was
    primarily the result of increased volumes in Italy and France combined
    with sales from new products, and to a lesser extent, net sales from
    acquired businesses within the region. These increases were offset
    partially by lower pricing throughout Europe as a result of
    government-imposed pricing reductions and competitive market conditions.
  oThird party net sales from the Rest of World were $396.0 million for the
    quarter, up 6%, or 11% on a constant currency basis. This increase was
    driven primarily by higher third party sales volumes from our operations
    in India, in particular strong growth in the anti-retroviral (ARV)
    franchise, which manufactures products used in the treatment of HIV/AIDS.
    Sales also were impacted positively by volume growth and new product
    introductions in Japan. In Australia, local currency third party net sales
    decreased versus the comparable prior year period as a result of
    significant government-imposed pricing reform and lower volumes on
    existing products, partially offset by new products.

Specialty Segment Revenue

Specialty segment reported third party net sales of $287.8 million for the
quarter, an increase of 22% when compared to the prior year period. The
increase was due to higher sales of the EpiPen® Auto-Injector driven by market
expansion, as well as price. The effect of constant currency on Specialty
segment third party net sales was insignificant. The EpiPen® Auto-Injector
remains on track to become a billion dollar product in 2014.

Total Gross Profit

Adjusted gross profit was $923.4 million and adjusted gross margins were 50%
as compared to adjusted gross profit of $834.2 million and adjusted gross
margins of 49% in the comparable prior year period. Strong adjusted gross
margins were the result of growth in the EpiPen® Auto-Injector combined with
the benefits and efficiencies of Mylan's vertically integrated operating
platform. These increases were offset partially by unfavorable pricing on
existing products, including products launched in the prior year. GAAP gross
profit for the quarter was $808.8 million and GAAP gross margins were 44% as
compared to GAAP gross profit of $742.4 million and GAAP gross margins of 44%
in the comparable prior year period.

Total Profitability

Adjusted earnings from operations for the quarter were $409.9 million, down
less than 1% from the comparable prior year period. The decrease in adjusted
earnings from operations was due to an increase in SG&A and R&D. The increase
in SG&A was impacted by our direct-to-consumer marketing campaign for the
EpiPen® Auto-Injector, and to a lesser extent, by increases in legal and
marketing costs in the North American region of the Generics business to
support anticipated new product launches. R&D was at the high end of the
guidance range as we continued to progress our biologics and respiratory
growth platforms. GAAP earnings from operations were $226.1 million for the
quarter, a decrease of 27% from the comparable prior year period.

EBITDA, which is defined as net income (excluding the non-controlling interest
and losses from equity method investees) plus income taxes, interest expense,
depreciation and amortization, was $371.8 million for the quarterand $423.1
million for the comparable prior year period. After adjusting for certain
items as further detailed in the reconciliation below, adjusted EBITDA was
$488.1 million for the quarter and $461.0 million for the comparable prior
year period. GAAP net earnings attributable to Mylan Inc. decreased by $52.5
million, or 29.5%, to $125.2 million as compared to $177.7 million for the
prior year comparable period.

Cash Flow

Adjusted cash provided by operating activities was $559 million for the six
months ended June 30, 2014, compared to $283 million for the comparable prior
year period. The increase in adjusted cash provided by operating activities is
the result of working capital improvement. On a GAAP basis, cash provided by
operating activities was $448 million for the six months ended June 30, 2014,
compared to $274 million for the comparable prior year period. Capital
expenditures were approximately $153 million for the six months ended June 30,
2014 as compared to approximately $126 million in the comparable period in
2013. The increase in capital expenditures is the result of expenditures to
expand our global operating platform, including capital investments in our
strategic growth drivers.

Guidance

Given delays in approvals of key products by the U.S. Food and Drug
Administration, Mylan is narrowing its 2014 guidance range for total revenue
to $7.8 billion to $8.0 billion and adjusted diluted EPS to $3.25 to $3.45.
The guidance ranges include the fourth quarter launches of generic Copaxone®
and generic Celebrex®.

Furthermore, Mylan expects third quarter adjusted diluted EPS in the range of
$0.90 to $0.95. Given the anticipated launches of key products mentioned
above, the fourth quarter is expected to be the strongest quarter of the year.

The following table provides a full summary of Mylan's 2014 full year guidance
ranges on an adjusted basis.

                                    2014                    2014
(In millions, except EPS and %'s)   Current Guidance        Prior Guidance**
Total Revenue                       $7,800 - $8,000         $7,800 - $8,200
Gross Profit Margin*                51% - 53%               51% - 53%
SG&A as % of Total Revenue*         18% - 20%               18% - 20%
R&D as % of Total Revenue*          7% - 8%                 7% - 8%
EBITDA*                             $2,200 - $2,400         $2,200 - $2,400
Net Income*                         $1,265 - $1,370         $1,265 - $1,460
Diluted EPS*                        $3.25 - $3.45           $3.25 - $3.60
Operating Cash Flow*                $1,200 - $1,400         $1,200 - $1,400
Capital Expenditures                $350 - $400             $350 - $450
Tax Rate*                           24% - 26%               24% - 26%
Average Diluted Shares Outstanding  390 - 400               389 - 405
* Adjusted metrics
** Prior guidance communicated on Feb. 27, 2014 during Mylan's Q4 and FY13
earnings conference call.

Conference Call

Mylan will host a conference call and live webcast, today, August7, 2014, at
10:00 a.m. ET, in conjunction with the release of its financial results. The
dial-in number to access the call is 800.514.4861 or 678.809.2405 for
international callers. To access the live webcast please log onto Mylan's
website (www.mylan.com) at least 15 minutes before the event is to begin to
register and download or install any necessary software. A replay of the
webcast will be available at www.mylan.com/investors for a limited time.

Non-GAAP Financial Measures

This press release includes the presentation and discussion of certain
financial information that differs from what is reported under accounting
principles generally accepted in the United States ("GAAP"). These non-GAAP
financial measures, including, but not limited to, adjusted diluted EPS,
adjusted cash provided by operating activities, adjusted gross profit,
adjusted gross margins, adjusted earnings from operations, adjusted interest
expense, adjusted net earnings, constant currency total revenue, constant
currency third party net sales, adjusted R&D, adjusted SG&A, adjusted tax
rate, EBITDA and adjusted EBITDA, are presented in order to supplement
investors' and other readers' understanding and assessment of the Company's
financial performance. Management uses these measures internally for
forecasting, budgeting and measuring its operating performance. In addition,
primarily due to acquisitions, Mylan believes that an evaluation of its
ongoing operations (and comparisons of its current operations with historical
and future operations) would be difficult if the disclosure of its financial
results were limited to financial measures prepared only in accordance with
GAAP. In addition, the Company believes that including EBITDA and supplemental
adjustments applied in presenting adjusted EBITDA pursuant to our credit
agreement is appropriate to provide additional information to investors to
demonstrate the Company's ability to comply with financial debt covenants
(which are calculated using a measure similar to adjusted EBITDA) and assess
the Company's ability to incur additional indebtedness. Set forth below, Mylan
has provided reconciliations of such non-GAAP financial measures to the most
directly comparable GAAP financial measure. Investors and other readers are
encouraged to review the related GAAP financial measures and the
reconciliations of the non-GAAP measures to their most directly comparable
GAAP measures set forth below, and investors and other readers should consider
non-GAAP measures only as supplements to, not as substitutes for or as
superior measures to, the measures of financial performance prepared in
accordance with GAAP.

Below is a reconciliation of GAAP net earnings attributable to Mylan Inc. (the
"Company") and GAAP diluted EPS to adjusted net earnings attributable to Mylan
Inc. and adjusted diluted EPS for the quarter and six month period compared to
the respective prior year period (in millions, except per share amounts):

                  Three Months Ended June 30,           Six Months Ended June 30,
                  2014               2013               2014               2013
GAAP net earnings
attributable to
Mylan Inc. and    $ 125.2   $ 0.32   $ 177.7   $ 0.46   $ 241.1   $ 0.61   $ 284.6   $ 0.72
GAAP

diluted EPS
Purchase
accounting
related
amortization      90.8               85.5               194.5              177.6
(primarily

included in cost
of sales) (a)
Litigation        23.2               6.9                26.3               8.7
settlements, net
Interest expense,
primarily
amortization of   11.5               8.9                22.4               16.6
convertible

debt discount
Non-cash
accretion and
fair value
adjustments of    8.7                (2.0)              17.1               3.8

contingent
consideration
liability
Clean energy
investments       17.2               3.5                36.6               7.9
pre-tax loss (b)
Financing related
costs (included   —                  8.7                —                  8.7
in other income,
net)
Acquisition
related costs
(primarily
included in cost
of
                  26.0               5.2                49.4               24.6
sales and
selling, general
and
administrative
expense)
Restructuringand
other special
items included
in:
Cost of sales     9.9                6.3                20.2               17.6
Research and
development       16.0               0.9                16.9               24.2
expense
Selling, general
and               21.9               11.7               41.3               35.3
administrative
expense
Other income      3.3                (2.9)              0.3                3.9
(expense), net
Tax effect of the
above items and
other income tax  (80.4)             (48.8)             (132.4)            (106.0)

related items
Adjusted net
earnings
attributable to
Mylan Inc. and    $ 273.3   $ 0.69   $ 261.6   $ 0.68   $ 533.7   $ 1.34   $ 507.5   $ 1.29

adjusted diluted
EPS
Weighted average
diluted common    397.4              387.1              397.0              393.0
shares
outstanding
(a) Purchase accounting related amortization expense for the six months ended June 30,
2013, includes $5.1 million of in-process research

 and development asset impairment charges.
(b) Adjustment represents exclusion of the pre-tax loss related to Mylan's investments in
clean energy investments, the activities of which

qualify for income tax credits under section 45 of the U.S. Internal Revenue Code. The
amount is included in other expense, net.



Below is a reconciliation of GAAP net earnings attributable to Mylan Inc. to
EBITDA and adjusted EBITDA for the quarter and six month period compared to
the respective prior year period (in millions):

                                        Three Months Ended  Six Months Ended
                                        June 30,            June 30,
                                        2014      2013      2014      2013
GAAP net earnings attributable to Mylan $ 125.2   $ 177.7   $ 241.1   $ 284.6
Inc.
Add adjustments:
Net contribution attributable to the
noncontrolling interest and equity      21.6      4.5       45.1      10.0
method investments
Income taxes                            11.2      41.0      46.3      72.7
Interest expense                        84.6      81.8      167.3     159.8
Depreciation and amortization           129.2     118.1     264.4     247.0
EBITDA                                  $ 371.8   $ 423.1   $ 764.2   $ 774.1
Add adjustments:
Stock-based compensation expense        17.1      11.2      32.5      23.3
Litigation settlements, net             23.2      6.9       26.3      8.7
Restructuring& other special items     76.0      19.8      124.8     98.8
Adjusted EBITDA                         $ 488.1   $ 461.0   $ 947.8   $ 904.9

About Mylan

Mylan is a global pharmaceutical company committed to setting new standards in
health care. Working together around the world to provide 7 billion people
access to high quality medicine, we innovate to satisfy unmet needs; make
reliability and service excellence a habit; do what's right, not what's easy;
and impact the future through passionate global leadership. We offer a growing
portfolio of more than 1,300 generic pharmaceuticals and several brand
medications. In addition, we offer a wide range of antiretroviral therapies,
upon which approximately 40% of HIV/AIDS patients in developing countries
depend. We also operate one of the largest active pharmaceutical ingredient
manufacturers and currently market products in approximately 140 countries and
territories. Our workforce of more than 20,000 people is dedicated to
improving the customer experience and increasing pharmaceutical access to
consumers around the world. But don't take our word for it. See for yourself.
See inside. mylan.com

Forward-Looking Statements

This press release may contain "forward-looking statements." These statements
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements may include,
without limitation, statements about the proposed acquisition (the
"Transaction") by the Company of Abbott Laboratories ("Abbott") non-U.S.
developed markets specialty and branded generics business (the "Acquired
Business"), the expected timetable for completing the Transaction, benefits
and synergies of the Transaction, future opportunities for the combined
company and products and any other statements regarding the Company's and the
Acquired Business' future operations, anticipated business levels, future
earnings, planned activities, anticipated growth, market opportunities,
strategies, competition, and other expectations and targets for future
periods. These often may be identified by the use of words such as "will",
"may," "could," "should," "would," "project," "believe," "anticipate,"
"expect," "plan," "estimate," "forecast," "potential," "intend," "continue,"
"target" and variations of these words or comparable words. Because
forward-looking statements inherently involve risks and uncertainties, actual
future results may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to: the Company and Abbott's ability
to meet expectations regarding the accounting and tax treatments and the
timing and completion of the Transaction; changes in relevant tax and other
laws; the Company and Abbott's ability to consummate the Transaction; the
conditions to the completion of the Transaction, including the receipt of
approval of the Company's shareholders; the regulatory approvals required for
the Transaction not being obtained on the terms expected or on the anticipated
schedule; the integration of the Acquired Business by the Company being more
difficult, time-consuming or costly than expected; operating costs, customer
loss and business disruption (including, without limitation, difficulties in
maintaining relationships with employees, customers, clients or suppliers)
being greater than expected following the transaction; the retention of
certain key employees of the Acquired Business being difficult; the
possibility that the Company may be unable to achieve expected synergies and
operating efficiencies in connection with the transaction within the expected
time-frames or at all and to successfully integrate the Acquired Business; the
Company's and the Acquired Business' expected or targeted future financial and
operating performance and results; the Company's (prior to or after the close
of the Transaction) capacity to bring new products to market, including but
not limited to where the Company uses its business judgment and decides to
manufacture, market, and/or sell products, directly or through third parties,
notwithstanding the fact that allegations of patent infringement(s) have not
been finally resolved by the courts (i.e., an "at-risk launch"); the scope,
timing and outcome of any ongoing legal proceedings and the impact of any such
proceedings on the Company's and the Acquired Business' consolidated financial
condition, results of operations or cash flows; the ability to protect the
intellectual property and preserve the intellectual property rights of the
Company and the Acquired Business; the effect of any changes in customer and
supplier relationships and customer purchasing patterns; the ability to
attract and retain key personnel; changes in third-party relationships; the
impacts of competition; changes in economic and financial conditions of the
Company's business or the Acquired Business; the inherent challenges, risks
and costs in the Company's ability to identify, acquire and integrate
complementary or strategic acquisitions of other companies, products or assets
and in achieving anticipated synergies; uncertainties and matters beyond the
control of management; and inherent uncertainties involved in the estimates
and judgments used in the preparation of financial statements, and the
providing of estimates of financial measures, in accordance with GAAP and
related standards or on an adjusted basis. For more detailed information on
the risks and uncertainties associated with the Company's business activities,
see the risks described in the Company's Annual Report on Form 10-K for the
year ended December31, 2013 and its other filings with the Securities and
Exchange Commission ("SEC"). You can access the Company's Form 10-K and other
filings with the SEC through the SEC website at www.sec.gov, and the Company
strongly encourages you to do so. The Company undertakes no obligation to
update any statements herein for revisions or changes after the date of this
release. Further, uncertainties or other circumstances, or matters outside of
the Company's control between the date of this release and the date that its
Form 10-Q for the quarter ended June30, 2014, is filed with the SEC could
potentially result in adjustments to reported results. Long-term targets,
including, but not limited to, 2018 targets, do not reflect Company guidance.

Additional Information and Where to Find It

In connection with the Transaction, New Moon B.V., a private limited liability
company (besloten vennootschap met beperkte aansprakelijkheid) organized under
the laws of the Netherlands ("New Mylan") and a wholly-owned subsidiary of the
Company and the Company intend to file relevant materials with the SEC,
including a New Mylan registration statement on Form S-4 that will include a
proxy statement of the Company that also constitutes a prospectus of New
Mylan. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY,
NEW MYLAN, THE ACQUIRED BUSINESS AND THE TRANSACTION. A definitive proxy
statement will be sent to shareholders of the Company seeking approval of the
Transaction. The proxy statement/prospectus and other documents relating to
the Transaction (when they are available) can be obtained free of charge from
the SEC's website at www.sec.gov. These documents (when they are available)
can also be obtained free of charge from the Company upon written request to
the Company at 724-514-1813 or investor.relations@mylan.com.

Participants in Solicitation

This communication is not a solicitation of a proxy from any investor or
shareholder. However, the Company, New Mylan and certain of their directors
and executive officers may be deemed to be participants in the solicitation of
proxies in connection with the Transaction under the rules of the SEC.
Information regarding the Company's directors and executive officers may be
found in its definitive proxy statement relating to its 2014 Annual Meeting of
Shareholders filed with the SEC on March 10, 2014. This document can be
obtained free of charge from the sources indicated above. Additional
information regarding the interests of these participants will also be
included in the proxy statement/prospectus when it becomes available.

Non-Solicitation

This communication shall not constitute an offer to sell or the solicitation
of an offer to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act of 1933, as amended.



Mylan Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited; in millions, except per share amounts)
                                Three Months Ended      Six Months Ended
                                June 30,                June 30,
                                2014        2013        2014        2013
Revenues:
Net sales                       $ 1,816.4   $ 1,687.3   $ 3,519.4   $ 3,306.7
Other revenues                  20.9        14.4        33.5        26.5
Total revenues                  1,837.3     1,701.7     3,552.9     3,333.2
Cost of sales                   1,028.5     959.3       2,006.3     1,897.3
Gross profit                    808.8       742.4       1,546.6     1,435.9
Operating expenses:
Research and development        155.4       111.4       273.4       237.9
Selling, general and            404.1       315.4       781.8       666.8
administrative
Litigation settlements, net     23.2        6.9         26.3        8.7
Total operating expenses        582.7       433.7       1,081.5     913.4
Earnings from operations        226.1       308.7       465.1       522.5
Interest expense                84.6        81.8        167.3       159.8
Other expense, net              3.7         7.2         8.3         3.8
Earnings before income taxes    137.8       219.7       289.5       358.9
and noncontrolling interest
Income tax provision            11.2        41.0        46.3        72.7
Net earnings                    126.6       178.7       243.2       286.2
Net earnings attributable to    (1.4)       (1.0)       (2.1)       (1.6)
the noncontrolling interest
Net earnings attributable to    $ 125.2     $ 177.7     $ 241.1     $ 284.6
Mylan Inc. common shareholders
Earnings per common share
attributable to Mylan Inc.
common shareholders:
Basic                           $ 0.34      $ 0.47      $ 0.65      $ 0.73
Diluted                         $ 0.32      $ 0.46      $ 0.61      $ 0.72
Weighted average common shares
outstanding:
Basic                           373.8       381.2       373.1       387.2
Diluted                         397.4       387.1       397.0       393.0



Mylan Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; in millions)
                                                    June 30,     December 31,
                                                    2014
                                                                 2013^(1)

ASSETS
Assets
Current assets
Cash and cash equivalents                           $ 193.9      $  291.3
Accounts receivable, net                            1,761.6      1,820.0
Inventories                                         1,791.1      1,656.9
Other current assets                                730.5        703.0
Total current assets                                4,477.1      4,471.2
Intangible assets, net                              2,416.2      2,517.9
Goodwill                                            4,392.8      4,340.5
Other non-current assets                            4,316.7      3,965.2
Total assets                                        $ 15,602.8   $  15,294.8
 LIABILITIES AND
EQUITY
Liabilities
Current liabilities                                 $ 2,601.3    $  2,964.0
Long-term debt                                      7,918.2      7,586.5
Other non-current liabilities                       1,730.6      1,784.4
Total liabilities                                   12,250.1     12,334.9
Noncontrolling interest                             18.7         18.1
Mylan Inc. shareholders' equity                     3,334.0      2,941.8
Total liabilities and equity                        $ 15,602.8   $  15,294.8
^(1) As updated by the Form 8-K filed by the Company on August 6, 2014.



Mylan Inc. and Subsidiaries
Recast of Geographical Regions
(Unaudited; in millions)
As previously disclosed, beginning in 2014, the regions within the Generics segment
have been revised to North America, Europe and Rest of World. The Rest of World
region includes the former Asia Pacific region, Brazil and the export sales to
emerging markets, which were previously included in the EMEA and North America
regions within the Generics segment. The following table provides a summary of the
Generics segment's 2013 total third party net sales and total revenues recast for
the change in its geographic regions to conform to the presentation for the current
period. The recast had no impact on total third party sales or total revenues for
the Generics segment.
Recast for Geographic Changes
Within the Generics Segment:
             Three Months Ended                              Six Months  Year Ended
                                                             Ended
             March 31,   June 30,    September   December    June 30,    December
             2013       2013       30,         31,         2013       31,
                                     2013       2013                   2013
Generics:
North        $ 731.5     $ 716.5     $ 705.5     $ 853.1     $ 1,448.0   $ 3,006.6
America
Europe       348.5       359.4       346.5       375.3       707.9       1,429.7
Rest of      327.8       374.5       346.9       389.4       702.3       1,438.6
World
Total
third-party  1,407.8     1,450.4     1,398.9     1,617.8     2,858.2     5,874.9
net sales
Other
third-party  5.0         7.8         5.5         7.5         12.8        25.8
revenues
Intersegment 0.6         1.9         1.7         1.5         2.5         5.7
revenues
Generics
total        $ 1,413.4   $ 1,460.1   $ 1,406.1   $ 1,626.8   $ 2,873.5   $ 5,906.4
revenues



Mylan Inc. and Subsidiaries
Summary of Revenues by Segment
(Unaudited; in millions)
             Three Months Ended      Six Months Ended        Three Months Ended   Six Months Ended
             June 30,                June 30,                Percent Change       Percent Change
                                                                    Constant             Constant
             2014        2013        2014        2013        Total                Total
                                                                    Currency^(1)         Currency^(1)
Generics:
Third party
net sales
North        $ 736.6     $ 716.5     $ 1,518.8   $ 1,448.0   3   %  3      %      5  %   5      %
America
Europe       395.9       359.4       751.8       707.9       10  %  5      %      6  %   2      %
Rest of      396.0       374.5       766.2       702.3       6   %  11     %      9  %   18     %
World
Total third
party net    1,528.5     1,450.4     3,036.8     2,858.2     5   %  6      %      6  %   8      %
sales
Other third
party        16.0        7.8         22.2        12.8
revenues
Total third
party        1,544.5     1,458.2     3,059.0     2,871.0
revenues
Intersegment 1.3         1.9         2.6         2.5
revenues
Generics
total        1,545.8     1,460.1     3,061.6     2,873.5
revenues
Specialty:
Third party  287.8       236.9       482.5       448.5       22  %  22     %      8  %   8      %
net sales
Other third
party        5.0         6.6         11.4        13.7
revenues
Total third
party        292.8       243.5       493.9       462.2
revenues
Intersegment 2.7         5.9         4.4         13.8
revenues
Specialty
total        295.5       249.4       498.3       476.0
revenues
Elimination
of           (4.0)       (7.8)       (7.0)       (16.3)
intersegment
revenues
Consolidated
total        $ 1,837.3   $ 1,701.7   $ 3,552.9   $ 3,333.2   8   %  8      %      7  %   8      %
revenues
^(1) The constant currency percent change is derived by translating third party net sales for the
current period at prior year comparative period exchange rates.



Mylan Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(Unaudited; in millions)
                              Three Months Ended      Six Months Ended
                              June 30,                June 30,
                              2014         2013       2014         2013
GAAP cost of sales            $ 1,028.5    $ 959.3    $ 2,006.3    $ 1,897.3
Deduct:
Purchase accounting related   (86.9)       (85.5)     (186.8)      (177.6)
amortization
Acquisition related costs     (17.8)       —          (35.4)       —
Restructuring & other special (9.9)        (6.3)      (20.2)       (17.6)
items
Adjusted cost of sales        $ 913.9      $ 867.5    $ 1,763.9    $ 1,702.1
Adjusted gross profit (a)     $ 923.4      $ 834.2    $ 1,789.0    $ 1,631.1
Adjusted gross margin (a)     50        %  49      %  50        %  49        %
                              Three Months Ended      Six Months Ended
                              June 30,                June 30,
                              2014         2013       2014         2013
GAAP R&D                      $ 155.4      $ 111.4    $ 273.4      $ 237.9
Deduct:
Restructuring & other special (16.1)       (1.0)      (17.1)       (24.2)
items
Adjusted R&D                  $ 139.3      $ 110.4    $ 256.3      $ 213.7
Adjusted R&D as % of total    7.6       %  6.5     %  7.2       %  6.4       %
revenue
                              Three Months Ended      Six Months Ended
                              June 30,                June 30,
                              2014         2013       2014         2013
GAAP SG&A                     $ 404.1      $ 315.4    $ 781.8      $ 666.8
Deduct:
Acquisition related costs     (8.1)        (3.6)      (13.9)       (22.4)
Restructuring & other special (21.8)       (2.0)      (41.1)       (23.9)
items
Adjusted SG&A                 $ 374.2      $ 309.8    $ 726.8      $ 620.5
Adjusted SG&A as % of total   20.4      %  18.2    %  20.5      %  18.6      %
revenue
                              Three Months Ended      Six Months Ended
                              June 30,                June 30,
                              2014         2013       2014         2013
GAAP total operating expenses $ 582.7      $ 433.7    $ 1,081.5    $ 913.4
Deduct:
Litigation settlements, net   (23.2)       (6.9)      (26.3)       (8.7)
Acquisition related costs     (8.1)        (3.6)      (13.9)       (22.4)
Restructuring & other special (37.9)       (3.0)      (58.2)       (48.1)
items
Adjusted total operating      $ 513.5      $ 420.2    $ 983.1      $ 834.2
expenses
Adjusted earnings from        $ 409.9      $ 414.0    $ 805.9      $ 796.9
operations (b)
                              Three Months Ended      Six Months Ended
                              June 30,                June 30,
                              2014         2013       2014         2013
GAAP interest expense         $ 84.6       $ 81.8     $ 167.3      $ 159.8
Deduct:
Interest expense related to
clean energy investments      (3.9)        (2.6)      (7.8)        (4.1)
(c)
Non-cash accretion of
contingent consideration      (8.7)        (8.0)      (17.1)       (15.7)
liability
Non-cash interest, primarily
amortization of convertible   (7.6)        (6.3)      (14.6)       (12.5)
debt discount
Adjusted interest expense     $ 64.4       $ 64.9     $ 127.8      $ 127.5
                              Three Months Ended      Six Months Ended
                              June 30,                June 30,
                              2014         2013       2014         2013
GAAP other expense            $ (3.7)      $ (7.2)    $ (8.3)      $ 3.8
Add:
Equity method losses from     17.2         3.5        36.6         7.9
clean energy investments
Purchase accounting related   3.9          —          7.7          —
amortization
Acquisition related costs     —            1.7        —            2.2
Restructuring & other special 3.3          5.7        0.3          12.5
items
Adjusted other income         $ 20.7       $ 3.7      $ 36.3       $ 18.8



Reconciliation of cash provided by operating activities
                                                     Six Months Ended June 30,
                                                     2014            2013
GAAP cash provided by operating                      $   448         $  274
activities
Add:
Payment of litigation settlements                    54              1
Payment of interest rate swap settlement             —               1
Acquisition related costs                            37              6
Increase in deferred revenue                         —               1
R&D expense                                          20              —
Adjusted cash provided by operating activities       $   559         $  283



(a)  Adjusted gross profit is calculated as total revenues less adjusted cost
      of sales. Adjusted gross margin is calculated as adjusted gross profit
   divided by total revenue.
(b)   Adjusted earnings from operations is calculated as adjusted gross profit
      less adjusted total operating expenses.

(c)  Adjustment represents exclusion of activity related to Mylan's
      investments in clean energy investments, the activities of which qualify
 for income tax credits under section 45 of the U.S. Internal Revenue
      Code.

Reconciliation of forecasted guidance

The reconciliations below are based on management's estimate of adjusted net
earnings and adjusted diluted EPS, adjusted EBITDA and adjusted cash provided
by operating activities for the year ending December 31, 2014. Mylan expects
certain known GAAP charges for 2014, as presented in the reconciliation below.
Other GAAP charges, including those related to potential litigation, asset
impairments and restructuring programs that would be excluded from the
adjusted results are possible, but their amounts are dependent on numerous
factors that we currently cannot ascertain with sufficient certainty or are
presently unknown. These GAAP charges are dependent upon future events and
valuations that have not yet occurred or been performed. The unaudited
forecasted amounts presented below are stated in millions, except for earnings
per share data.

Reconciliation of forecasted net earnings and EPS to adjusted net earnings
                                         Twelve Months Ended December 31, 2014
                                         Lower               Upper
GAAP net earnings attributable to Mylan  $  805     $ 2.05   $ 885     $ 2.20
Inc. and diluted GAAP EPS
Purchase accounting related amortization 375                 390
Interest expense, primarily amortization 44                  46
of convertible debt discount
Non-cash accretion of contingent         35                  38
consideration liability
Pre-tax loss of clean energy investments 77                  80
Restructuringand other special items    260                 280
Tax effect of the above items and other  (331)               (349)
income tax related items
Adjusted net earnings attributable to    $  1,265   $ 3.25   $ 1,370   $ 3.45
Mylan Inc. and adjusted diluted EPS
                                         Three Months Ended September 30, 2014
                                         Lower               Upper
GAAP net earnings attributable to Mylan  $  270     $ 0.68   $ 285     $ 0.71
Inc. and diluted GAAP EPS
Purchase accounting related amortization 94                  98
Interest expense, primarily amortization 10                  12
of convertible debt discount
Non-cash accretion of contingent         9                   11
consideration liability
Pre-tax loss of clean energy investment  19                  22
Restructuring& other special items      40                  45
Tax effect of the above items and other  (92)                (96)
income tax related items
Adjusted net earnings attributable to    $  350     $ 0.90   $ 377     $ 0.95
Mylan Inc. and adjusted diluted EPS



Reconciliation of forecasted net earnings to adjusted EBITDA
                                                            Lower     Upper
GAAP net earnings attributable to Mylan Inc.                $ 805     $ 885
Add adjustments:
Net contribution attributable to the noncontrolling         90        100
interest and equity method investees
Income taxes                                                110       165
Interest expense                                            340       350
Depreciation and amortization                               535       550
EBITDA                                                      $ 1,880   $ 2,050
Add adjustments:
Stock-based compensation expense                            60        70
Restructuring& other special items                         260       280
Adjusted EBITDA                                             $ 2,200   $ 2,400



Reconciliation of forecasted cash provided by operating activities
                                                     Lower     Upper
GAAP cash provided by operating activities $ 1,055   $ 1,215
Add:
Estimated payment of legal settlements               55        55
R&D Expense                                          20        40
Acquisition related costs                            40        60
Other items                                          30        30
Adjusted cash provided by operating activities       $ 1,200   $ 1,400



SOURCE Mylan Inc.

Website: http://www.mylan.com
Contact: Nina Devlin (Media), 724.514.1968, Kris King (Investors),
724.514.1813
 
Press spacebar to pause and continue. Press esc to stop.