13 2019 INTEGRATED SUMMARY REPORT We continue to advance our productivity agenda and control future growth opportunities, as we did with the acquisition of operating expenses while investing in key brands and our late-stage Loxo Oncology in 2019 and Dermira, Inc. in early 2020. pipeline. We made targeted, strategic investments across our Finally, we return cash to shareholders through our dividend, commercial portfolio and pipeline, which we believe will enhance which increased 15% in 2019 and will increase another 15% in our opportunities for future growth. We expect ongoing 2020, as well as through further share repurchases. productivity improvements that will lead to further operating margin expansion, and we’re on track to achieve our operating As we enter this new decade, we have an opportunity to margin target in 2020. deliver meaningful value to our shareholders, customers, We also delivered solid earnings per share growth and generated employees and communities by creating new standards of strong cash flow in 2019. Our capital allocation priorities remain care and advancing the boundaries of what’s possible in unchanged. We focus first on funding our promising pipeline and some of the world’s most serious diseases. our recently launched medicines. We then look to leverage business development to access external innovation and augment our RECONCILING ITEMS BETWEEN EPS-DILUTED AND NON-GAAP EPS-DILUTED Discontinued Operations from disposition of Elanco1 -3.93 -0.08 Amoritization of intangible assets 0.18 0.28 Asset impairment, restructuring, and other special 0.58 0.24 Charges related to withdrawal of Lartruvo 0.14 -- charges1 Impact of reduced shares outstanding for Gain on sale of China antibiotics business1 -0.26 -- non-GAAP reporting2 0.07 0.20 Charge related to repurchase of debt1 0.22 -- Income taxes3 -0.05 -0.27 Acquired in-process research and development1 0.21 1.96 Other, net -- -0.02 1 For more information on these reconciling items, see the Financial Results section of the Executive Overview in Management’s Discussion and Analysis in the company’s latest Form 10-K filed with the U.S. Securities and Exchange Commission. 2 Non-GAAP earnings per share assume that the disposition of Elanco occurred at the beginning of all periods presented and, therefore, exclude the approximately 65.0 million shares of Lilly common stock retired in the Elanco exchange offer. 3 For 2019, amount relates to a tax benefit from a capital loss on the disposition of subsidiary stock. For 2018, amount relates to adjustments to the 2017 Toll Tax for U.S. tax reform proposed regulations and tax expenses associated with the separation of Elanco. 4 Numbers may not add due to rounding.