Slide 1: First Quarter 2010 Earnings Teleconference
First Quarter 2010 Earnings Teleconference May 4, 2010
Slide 2: Introduction
First Quarter 2010 Earnings Teleconference Introduction Chuck Triano Senior Vice President, Investor Relations
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 a
Slide 4: Opening Remarks
First Quarter 2010 Earnings Teleconference Opening Remarks Jeff Kindler Chairman & Chief Executive Officer
Slide 5: Financial Review
First Quarter 2010 Earnings Teleconference Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer
Slide 6: Income Statement Highlights
First-Quarter 2010 Income Statement Highlights ($ millions, except per-share amounts) First Quarter 2010 2009 Change Reported Revenues $16,750 $10,867 54% Reported Net Income(1) 2,026 2,729 (26%) Reported Diluted EPS(1) 0.25 0.40 (38%) Adjusted Income(2) 4,882 3,667 33% Adjusted Diluted EPS(2) 0.60
Slide 7: Quarterly Adjusted Income Components
First-Quarter 2010 Quarterly Adjusted Income(1) Components ($ millions, except per-share amounts) First Quarter 2010 2009 Change Revenues(1) $16,743 $10,845 54% Cost of Sales(1) 2,935 1,314 123% SI&A Expenses(1) 4,375 2,833 54% R&D Expenses(1) 2,196 1,665 32% Adjusted Total Costs(2) 9,506 5,812 64%
Slide 8: Impact of Foreign Exchange on Adjusted Income Components
First-Quarter 2010 Impact of Foreign Exchange on Adjusted Income(1) Components Compared with the year-ago quarter ($ millions, except per-share amounts) First Quarter Adjusted(1) FX Impact Revenues(1) $16,743 $733 7% Cost of Sales(1) 2,935 266 20% SI&A Expenses(1) 4,375 156 6% R&D Expenses(1) 2,196
Slide 9: Biopharmaceutical Revenues
First-Quarter 2010 Biopharmaceutical Revenues ($ millions) First Quarter Total Legacy Pfizer FX 2010 2009 Change Operational Operational Impact Growth Growth Primary Care $5,866 $5,322 10% 4% 6% (1%) Specialty Care 3,521 1,463 141% 10% 131% (2%) Established Products 2,786 1,615 73% 6% 67% (9%) Emerg
Slide 10: Diversified Revenues
First-Quarter 2010 Diversified Revenues ($ millions) First Quarter Total Legacy Pfizer FX 2010 2009 Change Operational Operational Impact Growth Growth Animal Health $846 $537 58% 10% 48% 17% Consumer Healthcare 663 -- N/A N/A N/A N/A Nutrition 458 -- N/A N/A N/A N/A Capsugel 174 154 13% 5% 8% 8% To
Slide 11: Wyeth Integration Update
First-Quarter 2010 Wyeth Integration Update Leadership Team Announced in April 2009; Headquarter Sites and Country Leadership Decisions Announced on Day 1 All Colleague Reporting Relationships Known on Day 1 Communicated Changes in U.S. Field Force in October 2009; Changes Fully Implemented by Year-
Slide 12: Current and Anticipated Financial Impact of U.S. Healthcare Legislation
First-Quarter 2010 Current and Anticipated Financial Impact of U.S. Healthcare Legislation 2010 2011 2012 Revenues ~$300 million ~$900 million ~$800 million Factors impacting 2010 – Increase to base Medicaid rebate rate(1) – Extension of Medicaid rebates to certain managed care organizations(2) –
Slide 13: 2010 Financial Guidance
First-Quarter 2010 2010 Financial Guidance (1) (2) Reported Revenues $67.0 to $69.0 Billion Adjusted Cost of Sales(3) as a 19.0% to 20.0% Percentage of Revenues 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 t
Slide 14: 2012 Financial Targets
First-Quarter 2010 2012 Financial Targets(1) $65.2 to $67.7 billion Reported Revenues (previously $66.0 to $68.5 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
Slide 15: Key Takeaways
First-Quarter 2010 Key Takeaways Quarterly results reflect solid operational performance in a challenging environment; Positively impacted by legacy Wyeth operations On track to achieve operational cost-reduction targets Reaffirm 2010 financial guidance despite the impact of U.S. healthcare le
Slide 16: Q&A Session
First Quarter 2010 Earnings Teleconference Q&A Session May 4, 2010