2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 290 Executive Summary (continued) Compensation Philosophy Pay-for-performance underlies Endo’s compensation philosophy. The Compensation Committee (referred to in this “Compensation Discussion and Analysis” section as the Committee) believes that the most effective executive compensa- tion program is one that is designed to provide incentives that advance the interests of shareholders and deliver levels of compensation that are commensurate with performance. Endo’s compensation philosophy is designed to support our business strategy by attracting and retaining highly-talented individuals and motivating them to achieve competitive corpo- rate performance, while embracing the Company’s key values and behaviors. The Company’s commitment to its pay-for-performance philosophy was demonstrated again in 2017. In the context of the Company’s financial, strategic, operating and compliance achievements, as well as legacy issues and external challenges impacting Endo’s stock price performance this past year, the Committee remained committed to the Company’s pay-for-performance philosophy, which is reflected in the awarded and realized pay levels for all NEOs. Strategic Vision & Results A highly focused generics and specialty branded pharmaceutical company delivering quality medicines to patients in need through excellence in development, manufacturing and commercialization. Build on strengths in generic and branded pharmaceuticals: ✓ Investments in XIAFLEX ® contributed to significant product growth, generating high single-digit demand growth for 2017, with combined low double-digit fourth quarter growth run rates for Peyronie’s Disease and Dupuytren’s Contracture ✓ Realized meaningful revenue and profitability contributions from new U.S. generics product launches, while enhancing the Company’s product selection process ✓ Successfully navigated the business challenges within the consolidating U.S. generics industry ✓ Significantly expanded the Company’s non-U.S. product portfolio and pipeline, filing several products for the Canadian market, while closing several in-licensing deals Invest prudently in product pipeline: ✓ Significantly progressed cellulite treatment development program for collagenase clostridium histolyticum (CCH), with agreed upon plan with FDA including primary endpoint, safety measures and analysis method ✓ ExpandedVASOSTRICT ® patentestateandlistedadditionalpatentinOrangeBook;aggressivelypursuedpatentandtradesecretlawsuits againstchallengersforVASOSTRICT ® andADRENALIN ® ✓ Launched17newgenericproductsin2017,whileprogressingtheinitiationoftwopivotalPhaseIIIclinicaltrialsofCCHforthetreatmentof cellulite ✓ Placedintensefocusonhighvalueproductopportunitieswhileeliminatingnon-coreassets,includingthereturnofBELBUCA™toBDSI ✓ InconsultationwiththeFDA,voluntarilyceasedshipmentsofOPANA ® ERaspartoftheremovaloftheproductfromthemarket Enhance focus on operational execution: ✓ Implemented a series of restructuring initiatives, resulting in a leaner operating model leading to projected annualized cost savings of $95-$115 million ✓ Refinanced$3.7billionexistingcreditagreement,significantlyenhancingtheCompany’soperationalflexibilityoverthemediumtolong-term ✓ Met all compliance objectives, including no warning letters received and reductions in filed alerts and recalls, with none due to internal systems quality failures ✓ Divested non-core assets, finalizing the Litha Healthcare sale to Acino Pharma AG and the Somar sale to AI Global Investments (Netherlands) PCC Limited Meet financial objectives establishing a foundation for growth: ✓ Achieved 98.2% of targeted Adjusted Revenue, 105.2% of targeted Adjusted EBITDA Margin and 110.2% of targeted Adjusted Diluted EPS from Continuing Operations objectives ✓ Refinanced debt to allow for greater operating flexibility ✓ Optimized annual Capital Expenditure budget, appropriately investing in growth drivers 2017 Financial Results as a Percent of Operating Plan Target 50% 60% 70% 120% 100% 110% 90% 80% 105.2% 110.2% 98.2% Adjusted Diluted EPS from Continuing Operations Adjusted Revenue Adjusted EBITDA Margin 32 Total of 03 pages in section ENDO INTERNATIONAL PLC