Pershing Square Activist Presentation Deck

Patent Cliff Portfolio (Cont.) We use a discounted cash flow analysis to value the cliff portfolio Methodology: ► 10% Discount Rate ► Based on our analysis of Val-gan's patent cliff portfolio, we believe the portfolio has an average remaining life of ten years ► We sensitize our DCF analysis to annual growth rates of 0% to 5% until the patent cliff, after which cash flows fall to zero Years of Cash Flow Remaining 10yrs Annual Growth Until Patent Cliff DCF Value As a Multiple of 2014E Cash Flow Assumption: We assume generic Restasis competition in 2024 based on Allergan's recent patent filings. See appendix for model 81 0.0% 6.1x 10yrs 2.5% 6.8x 10yrs 5.0% 7.4x

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