Valeant: An Enduring Engine for Growth December 16, 2015 Forward-looking Statements Forward-looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding guidance with respect to expected revenues, non-GAAP cash earnings per share, adjusted cash flows from operations and organic product sales growth, future disclosures, launches and approvals of products, business development activities, and the 2016 strategic initiatives of Valeant Pharmaceuticals International, Inc. (the “Company”). Forward-looking statements may be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “could,” “should,” “would,” “may,” “will,” “believes,” “estimates,” “seeks,” “potential,” or “continue” and variations or similar expressions. These statements are based upon the current expectations and beliefs of management, and depend on assumptions, data or methods that may be incorrect or imprecise 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 or quarterly report filed with the Securities and Exchange Commission ("SEC") and other risks and uncertainties detailed from time to time in the Company's filings with the SEC and the Canadian Securities Administrators ("CSA"), which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. The Company 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. Note 1: The guidance in this presentation is only effective as of the date given, December 15, 2015, and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. 1 <portrait> J. Michael Pearson Chairman and CEO 2 Drivers of Valeant’s success Our collection of great healthcare brands around the world Our relentless focus on providing easy and affordable access for physicians and patients Our innovative strategies (often disruptive), which have challenged industry convention Our exceptionally productive approach to R&D Our decentralized model and talented people, which give us a competitive edge (speed of decision making and in- depth customer knowledge) 3 A collection of great brands in a breadth of therapeutic areas Valeant 2016 forecast revenues Total: $12.5 – 12.7 B Oncology, Dentistry, Women’s Health, 17% Dermatology and Neuro and Other 22% Skin Care 22% Emerging markets (including 19% Ophthalmology and Ophthalmology, Eye Care (B+L) Dermatology, and GI sales) 21% Gastrointestinal (GI) 4 Dermatology ▪ Great brands in attractive segments ▪ Importance of trust-based physician relationships ▪ Concentrated, specialist prescriber base ▪ Attractive from a payor standpoint – High component of cash pay – Reasonably priced products ▪ Lower-cost, lower risk R&D 4-year mkt CAGR: ~5% 5 Ophthalmology (B+L) ▪ Strong underlying global growth drivers (e.g., demographics) ▪ Attractive specialty Rx and OTC segments ▪ Importance of trust-based physician relationships ▪ Concentrated, specialist prescriber base ▪ Significant unmet medical needs ▪ Opportunity for lower-risk innovation ▪ Low exposure to reimbursement pressure; significant cash pay ▪ Durable products 4-year mkt CAGR: ~6% 6 Gastrointestinal ▪ Concentrated, specialist prescriber population ▪ Importance of trust-based physician relationships ▪ Concentrated, specialist prescriber base ▪ Less of a priority for many larger pharma companies ▪ Favorable reimbursement ▪ Opportunity for low-risk, incremental innovation 7 Emerging markets ▪ 1,000+ brands with sales in emerging markets ▪ High growth markets (e.g., Mexico, China, Middle East / North Africa) ▪ Rich pipeline of upcoming launches ▪ Decentralized operating model ▪ Products not dependent on reimbursement ▪ Local R&D capabilities 4-year mkt CAGR: ~7% 8 Valeant Access Program with Walgreens – Physician/Pharmacist/Patient-led experience ▪ Direct distribution to patients through Walgreens Branded Access Program ▪ All products in Walgreens on consignment; Walgreens never takes title ▪ Walgreens paid a distribution and pharmacy fulfillment fee Branded Generic ▪ Valeant sets prices to the patient Access Program ▪ Ensures affordable, immediate access to all Valeant brands in program that physicians prescribe (for eligible patients) 9 Our innovative strategies – the early years 2008 2009 2010 Then ▪ Dramatically ▪ Began building ▪ Executed ▪ ~$600M in revenue reduced OPEX undervalued merger of (e.g., to focus BGx and OTC equals with ▪ 8% operating margin predominantly on businesses Biovail (strong and 1% growth customer-facing (e.g., in strategic fit, areas) emerging improved tax markets) rate) ▪ Imminent Effudex generics ▪ Shifted from high- risk/high-spend ▪ Initiated new ▪ Bloated cost base and R&D (e.g. R&D capability infrastructure neurology, and operating virology) to lower model (e.g., cost “singles and Dow) ▪ High risk, high spend R&D doubles” ▪ Demotivated organization ▪ Built unrivaled M&A capabilities (e.g., requiring returns in excess of cost of capital) 10 Our innovative strategies – recent years 2011 2013 2015 /12 /14 Now ▪ Built a leading ▪ Gained critical ▪ Secured entry into US market mass in attractive GI space with ▪ $12.5-12.7B in revenue position in ophthalmology acquisition of Salix dermatology, with acquisition ▪ Double-digit organic with a series of B+L ▪ Created even better, growth of focused branded access acquisitions ▪ New R&D model program with Walgreens (e.g., Medicis, beginning to ▪ Great brands around Obagi, pay dividends ▪ Launched with the world Dermik/Ortho) Walgreens the first ▪ Created branded generics ▪ Attractive geographies attractive program in the US and TA platforms access program in dermatology initially through ▪ Energized and partnership with committed talent base Philidor 11 Our R&D model ▪ 6 NDAs approved in last 3 years ▪ 200+ active US programs Rx R&D spend as a % of 8% branded Rx ▪ Dermatology Phase II and sales Phase III success rates 3-5x better than industry averages ▪ Highest 5 year output1 on R&D spend in the industry 1 Number of NMEs/BLAs approved 2009-'14 for each $1 billion spent; peer set is 15 companies with the highest number of NME/BLA approvals 12 Our decentralized model ▪ Empowers local leaders to make decisions that are right for their business ▪ Allows us to move with speed and agility ▪ Aligns with our customers’ needs ▪ Ensures strong centralization and controls in key functions/ activities, e.g., – Finance – Compliance – Audit – Pharmacovigilance 13 How you can measure our progress in 2016 ▪ Retained all key management talent and added new key hires ▪ Dermatology returned to growth ▪ Maximized Xifaxan – created our first $1B brand ▪ Got approval and successfully launched – Brodalumab – Latanoprostene Bunod – Relistor Oral ▪ Delivered $100-150M in addyi sales in 2016 ▪ Brought leverage to ~4.0x by end of 2016 14 Who you will hear from – Our business leaders Robert Rosiello Deb Jorn Tracy Valorie EVP, CFO EVP, Dermatology and GI SVP and GM, Women’s Health and Bausch + Lomb Pharmaceutical Division Mark McKenna Yang Yang Joe Gordon VP and GM, BU Director, SVP and GM, Bausch + Lomb Vision Care China & Japan Consumer Health Care Fernando Zarate Dr. Tage Ramakrishna GM, Mexico, Andean region, Chief Medical Officer, Head of Central America and R&D and Quality Caribbean 15 Financial guidance <portrait> Robert Rosiello Executive VP, CFO 16 Revised Q4 2015 and full-year 2015 guidance Previous Q4 Revised Q4 2015 2015 Guidance Guidance Revenue ~$3.25 - $3.45B ~$2.7 - $2.8B Adjusted EPS* ~$4.00 - $4.20 ~$2.55 - $2.65 per share per share Adj. Cash >$1.0B >$600M Flow from Operations* * Non-GAAP (see Appendix) 17 Bridge from previous Q4 2015 guidance Adjusted Revenue EPS* Midpoint of previous guidance ~$3,350M ~$4.10 Philidor separation ~($250M) ~($0.65) Estimated one-time revenue impact from ~($150M) ~($0.40) Walgreens transition Pricing and volume-related changes (e.g., non- ~($200M) ~($0.45) promoted products) Midpoint of revised guidance ~$2,750M ~$2.60 * Non-GAAP (see Appendix) 18 Philidor separation . Announced Philidor separation October 30 . Provided free scripts from October 31 to November 8 . Dispensed refills without seeking reimbursement from payors from November 9 to present . Average cash pay price declined from $67 to $23 . Lost ~20% of scripts from business disruption in Q4, virtually all Philidor covered scripts Estimated Q4 Revenue Impact: (~$250M) 19 One-time revenue impact from Walgreens transition . Transition to consignment model at Walgreens for current inventory on hand Under this arrangement, Valeant will hold title to products sold under this program until dispensed to a patient Valeant will credit Walgreens for any inventory on hand in its stores or distribution centers as part of transition . Estimated reduction in traditional channel inventories for the products included in Walgreens program 20 2016 guidance 2016 Guidance Revenue ~$12.5B – 12.7B Adj. EPS* ~$13.25 – 13.75 per share Adj. EBITDA* ~$6.9 – 7.1B * Non-GAAP (see Appendix) 21 Bridge from previous 2016 EBITDA outlook Previous 2016 Adj. EBITDA* Outlook >$7.50B Dermatology Patient Access Program ramp-up ~($225M) Changes