Slide 1: Second Quarter 2015 Earnings Teleconference
Second Quarter 2015 Earnings Teleconference July 28, 2015
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Second Quarter 2015 Earnings
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information l Our discussions during this conference call will include forward-looking statements about, among other things, our anticipated future operating and financial performance, business plans and prospects, in-line products and product candid
Slide 4: Opening Remarks
Opening Remarks Ian Read Chairman and Chief Executive Officer Second Quarter 2015 Earnings
Slide 5: CEO Perspectives
CEO Perspectives l We achieved another quarter of strong operational performance Ü We continue to see solid revenue growth from newer products (Eliquis, Prevnar 13 Adult and Ibrance) as well as several key in-line products (Lyrica, Sutent, Xalkori and Inlyta) l We are focusing our resources on areas
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Second Quarter 2015 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) Second Quarter 2015 2014 Change Reported Revenues(1) $11,853 $12,773 (7%) Adjusted Income(2) 3,525 3,769 (6%) Adjusted Diluted EPS(2) 0.56 0.58 (3%) Reported Net Income(1) 2,626 2,912 (10%) Reported Diluted EPS(1) 0.4
Slide 8: Impact of Foreign Exchange on Revenues and Select Adjusted Income Components
Impact of Foreign Exchange on Revenues(1) and Select Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Second Quarter 2015 2014 FX Impact Reported Revenues(1) $11,853 $12,773 ($1,045) » (8%) Cost of Sales(1) 2,123 2,320 255 » 11% SI&A Expenses(1) 3,372 3,486 22
Slide 9: Global Innovative Pharmaceutical (GIP) Selected Financial Highlights
Global Innovative Pharmaceutical (GIP) Selected Financial Highlights ($ Millions, Except Percentages) Second Quarter l Q2 2015 revenues increased 8% operationally to $3,497M vs. Q2 2014 % Change 2015 2014 Ü Driven primarily by operational growth of Eliquis Total Oper. globally, Xeljanz and Viagra in
Slide 10: Global Vaccines, Oncology and Consumer Healthcare (VOC) Selected Financial Highlights
Global Vaccines, Oncology and Consumer Healthcare (VOC) Selected Financial Highlights ($ Millions, Except Percentages) Second Quarter l Q2 2015 revenues increased 29% operationally to $3,133M vs. Q2 2014 % Change 2015 2014 Ü Primarily driven by continued uptake of Prevnar 13 Total Oper. in adults as
Slide 11: Global Established Pharmaceutical (GEP) Selected Financial Highlights
Global Established Pharmaceutical (GEP) Selected Financial Highlights ($ Millions, Except Percentages) Second Quarter l Q2 2015 revenues declined 14% operationally to $5,090M vs. Q2 2014 % Change 2015 2014 Ü Primarily driven by LOEs of Celebrex and Zyvox Total Oper. in the U.S. and Lyrica in certain
Slide 12: 2015 Financial Guidance
(1)(2) 2015 Financial Guidance $45.0 to $46.0 billion Reported Revenues(3) (previously $44.0 to $46.0 billion) 18.0% to 18.5% Adjusted Cost of Sales(3) as a % of Reported Revenues(3) (previously 18.5% to 19.5%) Adjusted SI&A Expenses(3) $12.8 to $13.8 billion $7.3 to $7.6 billion Adjusted R&D Expens
Slide 13: Key Takeaways
Key Takeaways Achieved solid Q2 2015 financial performance, with our third consecutive quarter of operational revenue growth, despite significant negative impacts from product LOEs Ü Primarily driven by the strong performance of Prevnar 13 in adults, Eliquis, Ibrance and Xeljanz, all of which are ea
Slide 14: Q&A Session
Second Quarter 2015 Earnings Teleconference Q&A Session July 28, 2015