Slide 1: Second Quarter 2010 Earnings Teleconference
Second Quarter 2010 Earnings Teleconference August 3, 2010
Slide 2: Introduction
Second Quarter 2010 Earnings Introduction Chuck Triano Senior Vice President, Investor Relations 2 Second Quarter 2010 Earnings
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Our discussions during this conference call will include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ ar
Slide 4: Opening Remarks
Second Quarter 2010 Earnings Opening Remarks Jeff Kindler Chairman & Chief Executive Officer 4 Second Quarter 2010 Earnings
Slide 5: Business Mix Shifting to Strengthen Platform for Sustainable Financial Performance
Business Mix Shifting to Strengthen Platform for Sustainable Financial Performance Q2 2009 Q2 2010 Oncology Oncology Unit Unit Established Established Products Unit 2% Products Unit 3% 16% 16% 34% 47% Primary Care Unit Primary Emerging Emerging 13% Care Unit 13% Markets Unit Markets Unit 8% 13% Dive
Slide 6: Opening Remarks
Second Quarter 2010 Earnings Opening Remarks Jeff Kindler Chairman & Chief Executive Officer 6 Second Quarter 2010 Earnings
Slide 7: Financial Review
Second Quarter 2010 Earnings Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer 7 Second Quarter 2010 Earnings
Slide 8: Income Statement Highlights
Income Statement Highlights ($ millions, except per-share amounts) Second Quarter 2010 2009 Change Reported Revenues $17,327 $10,984 58% Reported Net Income(1) 2,475 2,261 9% Reported Diluted EPS(1) 0.31 0.34 (9%) Adjusted Income(2) 4,959 3,249 53% Adjusted Diluted EPS(2) 0.62 0.48 29% Reported Net
Slide 9: Quarterly Adjusted Income Components
Quarterly Adjusted Income(1) Components ($ millions, except per-share amounts) Second Quarter 2010 2009 Change Revenues(1) $17,321 $10,966 58% Cost of Sales(1) 2,951 1,686 75% SI&A Expenses(1) 4,727 3,264 45% R&D Expenses(1) 2,182 1,656 32% Adjusted Total Costs(2) 9,860 6,606 49% Provision for Incom
Slide 10: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components Compared with the year-ago quarter ($ millions, except percentages) Second Quarter Adjusted(1) FX Impact Revenues(1) $17,321 $584 5% Cost of Sales(1) 2,951 (99) (6%) SI&A Expenses(1) 4,727 126 4% R&D Expenses(1) 2,182 21 1% Adjusted Total C
Slide 11: Biopharmaceutical Revenues
Biopharmaceutical Revenues ($ millions) Second Quarter(1) Total Legacy Pfizer FX 2010 2009(1) Change Operational Operational Impact Growth Growth Primary Care $5,923 $5,160 15% 3% 12% 5% Specialty Care 3,769 1,423 165% 5% 160% 8% Established Products 2,730 1,670 63% 5% 58% (10%) Emerging Markets 2,2
Slide 12: Diversified Revenues
Diversified Revenues ($ millions) Second Quarter Total Legacy Pfizer FX 2010 2009 Change Operational Operational Impact Growth Growth Animal Health $893 $648 38% 7% 31% 2% Consumer Healthcare 678 — N/A N/A N/A N/A Nutrition 476 — N/A N/A N/A N/A Capsugel 195 185 5% 1% 4% 4% Total $2,242 $833 169% 12
Slide 13: Broader Portfolio Driving Revenue Expansion in Emerging Markets
Broader Portfolio Driving Revenue Expansion in Emerging Markets ($ millions, except percentages) ~$3,100 $3,000 ~$1,450 ~$800 BRIC-MT(1) Markets Contributed ~46% Diversified of Total Emerging $2,000 ~$1,650 ~$1,000 Markets Growth ~$150 Established Legacy Pfizer Products Biopharmaceutical ~$800 R
Slide 14: 2010 Financial Guidance
2010 Financial Guidance(1)(2) Reported Revenues $67.0 to $69.0 Billion Adjusted Cost of Sales(3) as a Percentage of Revenues 19.0% to 20.0% Adjusted SI&A Expenses(3) $19.0 to $20.0 Billion Adjusted R&D Expenses(3) $9.1 to $9.6 Billion Adjusted Other (Income)/Deductions(3) $1.2 to $1.4 Billion Effect
Slide 15: 2012 Financial Targets
2012 Financial Targets(1) Reported Revenues $65.2 to $67.7 billion Adjusted R&D(2) Expenses $8.0 to $8.5 billion Adjusted Operating Margin(2) High 30%s to Low 40%s Adjusted Other (Income)/Deductions(2) $1.0 to $1.2 billion Effective Tax Rate on Adjusted Income(2) Approximately 30% Reported Diluted E
Slide 16: Key Takeaways
Key Takeaways 9 Quarterly results reflect strong operational performance of more balanced business mix and product portfolio in a challenging environment; Positively impacted by legacy Wyeth operations 9 Reaffirm (1) all elements of 2010 financial guidance with Adjusted Diluted EPS expected to be in
Slide 17: Q&A Session
Second Quarter 2010 Earnings Q&A Session August 3, 2010 17 Second Quarter 2010 Earnings