Pershing Square Activist Presentation Deck

Cash Net Income Reconciliation: Cash Taxes Valeant's adjusted tax rate is a more accurate measure of the company's annual cash tax expense ■ For GAAP purposes, Valeant reports an effective tax rate of 34% ■ Adjusting this rate to reflect the cash taxes that Valeant actually pays is a more accurate measure of Valeant's annual tax expense Valeant's cash tax rate is sustainably low ■ Valeant's cash tax rate in 2013 was 3% of Adjusted Pre-Tax Profits ■ We believe that Valeant, on a standalone basis, can continue to achieve a mid-single digit tax rate for the foreseeable future Source: Management Interviews 109

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