Slide 1: 3rd Quarter 2021 Results
3rd Quarter 2021 Results 3rd Quarter 2021 Sales Worldwide Increased =. $23.3B 10.7% Diluted Earnings Per Share $1.37 Worldwide Increased 10.6% ited Earnings Per Share* Excluding acquisitions/ operational basis Adjusted $2.60 Increased «. 18.29 Increased =. 3.0% yf. $3.7 Billion a “Our third-quarter
Slide 2: 3rd Quarter 2021 Earnings Call
rd 3 Quarter 2021 Earnings Call October 19, 2021
Slide 3: Cautionary Note on Forward-looking Statements
Cautionary Note on Forward-looking Statements This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strate
Slide 4: Strategic Partnerships, Collaborations & Licensing Arrangements
Strategic Partnerships, Collaborations & Licensing Arrangements During the course of this morning’s presentation, we will discuss a number of products and compounds developed in collaboration with strategic partners or licensed from other companies. The following is an acknowledgement of those relat
Slide 5: Agenda
Agenda 1 Enterprise Highlights 2 Sales Performance and Earnings Review 3 Capital Allocation and Guidance 4 Q&A Ashley McEvoy Thibaut Mongon Jennifer Taubert Joseph J. Wolk Executive Vice President Executive Vice President Executive Vice President Executive Vice President Worldwide Chairman, Worldwid
Slide 6: 3rd Quarter 2021 Sales
3rd Quarter 2021 Sales % CHANGE Dollars in Billions Regional Sales Results Q3 2021 Q3 2020 Reported Operational1 U.S. $12.0 $11.1 7.9% 7.9% Europe 5.6 4.8 15.9 14.6 Western Hemisphere 1.5 1.3 15.7 13.4 (ex U.S.) Asia-Pacific, Africa 4.3 3.9 10.5 8.5 International 11.4 10.0 13.8 12.1 Worldwide (WW) $
Slide 7: 3rd Quarter 2021 Financial Highlights
3rd Quarter 2021 Financial Highlights Dollars in Billions, except EPS Reported %; Operational %1 Sales GAAP Earnings GAAP EPS $23.3 $21.1 $3.7 $1.37 $3.6 $1.33 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 10.7%; 9.9%1 3.2% 3.0% Adjusted Earnings2 Adjusted EPS2 $7.0 $2.60 $5.9 $2.20 Q3 2021 Q3 202
Slide 8: Consumer Health Highlights – 3rd Quarter 2021
Consumer Health Highlights – 3rd Quarter 2021 Strong growth primarily driven by OTC Reported: WW 5.3%, U.S. 4.5%, Int’l 5.9% Key Drivers of Operational Performance1 Operational1: WW 4.1%, U.S. 4.5%, Int’l 3.7% • Growth driven by increased pediatric fever incidences, category recovery for Cough, Cold
Slide 9: Pharmaceutical Highlights – 3rd Quarter 2021
Pharmaceutical Highlights – 3rd Quarter 2021 Continued above-market performance driven by double-digit growth in key products Reported: WW 13.8%, U.S. 12.2%, Int’l 15.9% Key Drivers of Operational Performance1 • Growth driven by continued strong uptake of STELARA in Crohn’s Disease and Operational1:
Slide 10: Medical Devices Highlights – 3rd Quarter 2021
Medical Devices Highlights – 3rd Quarter 2021 Growth primarily driven by COVID-19 related market recovery and innovation Reported: WW 8.0%, U.S. 0.8%, Int’l 15.4% Key Drivers of Operational Performance1 Operational1: WW 7.0%, U.S. 0.8%, Int’l 13.3% Interventional • Market recovery, success of new pr
Slide 11: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings 3rd Quarter 2021 2021 2020 % (Unaudited; Dollar and Shares in Millions Except Per Share Figures) Increase Amount % to Sales Amount % to Sales (Decrease) Sales to customers $23,338 100.0 $21,082 100.0 10.7 Cost of products sold 7,250 31.1 6,972 33.1 4.0 Gr
Slide 12: Adjusted Income Before Tax by Segment
Adjusted Income Before Tax by Segment1 3rd Quarter 2021 % to Sales $8.1B 3Q 2021 3Q 2020 $7.2B Pharmaceutical 43.9% 46.4% Medical Devices 25.5% 21.6% $5.7 Consumer Health 23.3% 24.4% $5.3 Total 34.5% 34.4% Pharmaceutical $1.7 Medical Devices $1.3 Consumer Health $0.9 $0.9 Expenses Not Allocated to S
Slide 13: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 14: Notable New Announcements in 3rd Quarter 2021
rd Notable New Announcements in 3 Quarter 20211 Pharmaceutical • Regulatory Decisions: – INVEGA HAFYERA (paliperidone palmitate) Receives FDA Approval For First and Only Twice-Yearly Treatment for Adults with Schizophrenia – XARELTO (rivaroxaban) Plus Aspirin Receives FDA Approval For Expanded Perip
Slide 15: Capital Allocation Strategy
Capital Allocation Strategy Dollars in Billions Q3 2021 Cash and Marketable Capital Allocation $31 Securities HIGHER PRIORITY Debt ($34) Organic growth business needs Net Debt ($3) Free cash flow1 Free Cash Flow2 ~$15 Note: values may have been rounded Q3 2021: Competitive dividends Investment in M&
Slide 16: 2021 Revenue Guidance
2021 Revenue Guidance October (Base Business) July (Base Business) Comments Tightening of range and Adjusted Operational Sales1,2 9.9% - 10.5% 9.5% - 10.5% strong base performance $90.3B - $90.8B $90.0B - $90.8B Operational Sales2 Midpoint of 9.7% 9.4% – 10.0% 9.0% – 10.0% $91.6B - $92.1B $91.3B - $
Slide 17: 2021 P&L Guidance
2021 P&L Guidance October (Incl. COVID-19 July (Incl. COVID-19 Comments Vaccine) Vaccine) Tightening of range and Adjusted Operational Sales1,2 12.9% - 13.5% 12.5% - 13.5% strong base performance $92.8B - $93.3B $92.5B - $93.3B Operational Sales2 12.4% – 13.0% 12.0% – 13.0% Midpoint of 12.7% $94.1B
Slide 18: Q&A
Q&A Ashley McEvoy Thibaut Mongon Jennifer Taubert Joseph J. Wolk Executive Vice President Executive Vice President Executive Vice President Executive Vice President, Worldwide Chairman, Worldwide Chairman, Worldwide Chairman, Chief Financial Officer Medical Devices Consumer Health Pharmaceuticals
Slide 19: Goluenafoluuen
Goluenafoluuen