The New Valeant: Delivering on Our Commitments J.P. Morgan Healthcare Conference January 10, 2017 Forward-Looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding expected future performance of Valeant Pharmaceuticals International, Inc. (“Valeant” or the “Company”), including statements reiterating guidance, the anticipated growth of and plans for the Company’s operating and reportable segments, the anticipated timing of the closing of certain of the Company’s recent divestitures and the anticipated use of proceeds from such divestitures, the anticipated receipt of clinical data for certain of our pipeline products and the expected timing of such data, the anticipated steps and phases for certain of our R&D projects and the expected timing of such steps and phases, the anticipated submission, approval and launch dates for certain of our pipeline products and R&D programs, the expected timing of the loss of exclusivity of certain of our products and the estimated impact of such loss of exclusivity, anticipated debt reduction and repayment (including our ability to pay down debt and the availability of cash flow and asset sales proceeds for such purpose), and the Company’s mission and the plans, goals and strategies related thereto. Forward-looking statements may generally be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” “target,” or “continue” and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in Valeant’s other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes, except as required by law. 2 Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures including EBITDA. Management uses non-GAAP measures as key metrics in the evaluation of Company performance and the consolidated financial results. The Company believes these non-GAAP measures are useful to investors in their assessment of our operating performance and the valuation of our Company. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, non-GAAP financial measures are not prepared in accordance with GAAP, as they exclude certain items as described herein. Therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. 3 We Have Stabilized - Reiterating 2016 Guidance OUR MISSION To Improve People’s Lives With Our Healthcare Products STABILIZE TURNAROUND TRANSFORM 2016 2017-2018 2018+ Focus on specialty driven markets w/above average growth rates Paid down debt Lead in our categories Attracted new talent Invest in pipeline/quality/product launches New Product Approvals Launch new products Derm Recovery Strengthen balance sheet Salix Growth Reallocate spending on high ROI Balance organic and inorganic growth Launched new segments programs Improve gross profit 4 Address legacy Issues Significant Progress in 2016 / Delivering on Commitments Streamlined Portfolio – Divested (or agreed to divest) 3 Skincare Brands, Dendreon, Delta (Brazil), Vietnam/Indonesia, Brodalumab EU Rights, Ruconest, OEM Business, Other Built New Leadership Team Launched New Prior Authorization Program for Dermatology/Dermatology Rx Recovery Continued Consistent Growth in Consumer Business Partnered with Wilson’s Disease Association Initiated Xifaxan New Formulation Activities/PCP Strategy Stabilized Salesforce Launched Relistor® Oral Tablets Won 18-0 Vote from Brodalumab FDA Advisory Committee Licensed Novel Bowel Cleansing Product Candidate Introduced PreserVision® AREDS 2 Formula + Multivitamin Launched Bausch + Lomb ULTRA® for Presbyopia contact lenses Reduced Permanent Debt – Paid down ~$1.84B in full year 2016; $294M in Q4 (exceeded $1.7B commitment for 2016) 5 Delivering on Commitments: Divestitures • Upon completion of the transactions announced today, we will have generated asset sale proceeds of ~$2.35B (upfront) and future milestones of ~$0.35B, or total potential proceeds of $2.7B • We have simplified our operating model by divesting or agreeing to divest: CeraVe, AcneFree & AMBI Delta (Brazil) Dendreon Euvipharm (Vietnam) Synergetics OEM Armoxindo (Indonesia) Ruconest Paragon Brodalumab EU Rights Cosmederme (Canada) 6 Delivering on Commitments: Divestitures • Announced sale of CeraVe, AcneFree and DIVESTITURE AMBI skincare brands to L’Oreal for $1.3B in cash • Reshaping consumer product portfolio in STRATEGIC RATIONALE response to compelling in-bound interest from global beauty company • Substantial return on investment PURCHASE PRICE • +20x annualized earnings contribution to VRX TIMING • Expected to close in Q1 2017 USE OF PROCEEDS • Pay down term loan debt 7 Delivering on Commitments: Divestitures • Announced sale of Dendreon to Sanpower DIVESTITURE Group for $819.9M in cash • Exiting non-core oncology business in U.S. STRATEGIC RATIONALE Diversified Products segment • Premium to purchase price in February 2015 PURCHASE PRICE • ~7x multiple of EBITDA TIMING • Expected to close in Q2 2017 USE OF PROCEEDS • Pay down term loan debt 8 Delivering on Commitments: New Leadership Team New Leadership Hires Paul Herendeen Christina Ackermann Bill Humphries Executive Vice President, Finance Executive Vice President Executive Vice President, Chief Financial Officer General Counsel Dermatology Scott Hirsch Louis Yu Sam Eldessouky Senior Vice President, Business Chief Quality Officer Senior Vice President Strategy Corporate Controller Expanded Roles Tom Appio Tracy Valorie Dennis Asharin Mark McKenna Senior Vice President, Executive Vice Senior Vice President Senior Vice President, Manufacturing and Supply President/President, Int’l Bausch + Lomb GI Chain Joe Gordon Barb Purcell Kelly Webber Chuck Hess Senior Vice President/General Senior Vice President Senior Vice President, GM, Surgical Manager, Neurology, Bausch + Lomb Generics and Obagi Human Resources + Primary Care Sales Force Expansion 9 Delivering on Commitments: Stabilized Valeant Sales Force Quarterly Sales Force Retention 94.0% 93.6% 91.1% 89.2% 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Delivering on Commitments: Strengthened Balance Sheet Commitment Result • Repay $1.7B permanent debt in 2016 Achieved $1.84B • Complete all 2017 scheduled amortization Achieved payments by year-end • Evaluate/complete asset sales within 6 months Achieved/Continuing We continue to expect free cash flow and non-core asset sales to reduce debt by more than $5B within 18 months from Aug. 9th 2016 11 Delivering on Commitments: Grew GI/Salix Business • Promoted brands in the portfolio grew +10% YoY with 4% growth from H1 to H2 2016 • Successfully stabilized sales force in H2 compared to H1 with 45% reduction in voluntary turnover • Initiated primary care salesforce expansion in Q4 • Xifaxan continues to drive performance of Salix business with projected +17% Y/Y growth and 4% growth in H2 v. H1 GI Promoted Brands TRx Growth 2014 2015 2016 1,331,032 +10% 1,207,401 +16% 1,041,332 Annual TRx Creating the “New Valeant” OUR MISSION To Improve People’s Lives With Our Healthcare Products STABILIZE TURNAROUND TRANSFORM 2016 2017-2018 2018+ Focus on specialty driven markets Paid down debt w/above average growth rates Lead in our categories Attracted new talent Invest in pipeline/quality/product New Product Approvals launches Launch new products Derm Recovery Strengthen balance sheet Balance organic and Salix Growth Reallocate spending on high ROI inorganic growth Launched new segments programs Improve gross profit 13 Address legacy Issues Invest in R&D/Quality/New Product Launches R&D PROGRAM HIGHLIGHTS % of R&D Launch Timeframe Programs 43 R&D Facilities 2017-2019 ~80% 2020-beyond ~20% # R&D/Quality 1,000+ Employees Derm, Y/Y Increase in Other, 20 38% R&D Spending 23 GI, 16 Total Company active R&D projects ~135 B+L, 76 Expected new product launches 50+ in 2017 14 R&D Catalysts in 2017 • SAN-300 (Rheumatoid Arthritis) Phase II data read out H1 • enVista® Trifocal (Intraocular Lens) Initiate IDE study in H1 • New Material (Ophthalmic Viscosurgical Device); Initiate IDE in H1 • Loteprednol Gel 0.38% (Ocular Inflammation) Complete Phase III enrollment • IDP-120 (Acne) Initiate Phase III