Zoetis Inc. · NYSE:ZTS

Zoetis — Q2 2019 Earnings Presentation

13 slides from Zoetis's earnings presentation, Aug 6, 2019

  1. Slide 1: Second Quarter 2019 Financial Results

    SECOND QUARTER 2019 FINANCIAL RESULTS August 6, 2019 1 1

  2. Slide 2: Forward-Looking Statements; Non-GAAP Financial Information

    FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to business plans or prospects, future operating or financial performance, future guidance, future operating models, expectations regarding products, expectations

  3. Slide 3: Juan Ramón Alaix, Chief Executive Officer

    JUAN RAMÓN ALAIX CHIEF EXECUTIVE OFFICER 3 3

  4. Slide 4: Key Takeaways

    KEY TAKEAWAYS INNOVATION, DIVERSITY AND EXECUTION DRIVE STRONG Q2 RESULTS • Generated 14% operational1 growth in revenue in the second quarter, including the impact of the Abaxis acquisition, with 17% operational1 increase in adjusted net income2 • Primary growth drivers were diagnostic sales from t

  5. Slide 5: Glenn David, Chief Financial Officer

    GLENN DAVID CHIEF FINANCIAL OFFICER 5 5

  6. Slide 6: Income Statement Highlights

    INCOME STATEMENT HIGHLIGHTS Second Quarter 2019* 2018* Change Revenue $1,547 $1,415 9% Reported Net Income 371 384 (3)% Reported Diluted Earnings Per Share $0.77 $0.79 (3)% Adjusted Net Income1 436 375 16% Adjusted Diluted Earnings Per Share1,2 $0.90 $0.77 17% * Millions of dollars, except per share

  7. Slide 7: Adjusted Income Statement Highlights

    ADJUSTED INCOME STATEMENT HIGHLIGHTS Second Quarter Foreign 2019* 2018* Change Operational1 Exchange Revenue $1,547 $1,415 9% (5)% 14% Adjusted Cost of Sales2 457 443 3% (9)% 12% as a percent of revenue3 29.5% 31.3% NA NA NA Adjusted SG&A Expenses2 388 357 9% (3)% 12% Adjusted R&D Expenses2 110 102

  8. Slide 8: US Segment Performance

    US SEGMENT PERFORMANCE Second Quarter Foreign 2019* 2018* Change Operational1 Exchange Revenue $780 $677 15% - 15% Livestock 280 271 3% - 3% Companion Animal 500 406 23% - 23% Cost of Sales 158 140 13% - 13% Gross Profit 622 537 16% - 16% Gross Margin 79.7% 79.3% NA NA NA Operating Expenses 127 116

  9. Slide 9: International Segment Performance

    INTERNATIONAL SEGMENT PERFORMANCE Second Quarter Foreign 2019* 2018* Change Operational1 Exchange Revenue $742 $728 2% (8)% 10% Livestock 444 463 (4)% (8)% 4% Companion Animal 298 265 12% (9)% 21% Cost of Sales 218 229 (5)% (13)% 8% Gross Profit 524 499 5% (6)% 11% Gross Margin 70.6% 68.5% NA NA NA

  10. Slide 10: International Market Revenue

    INTERNATIONAL MARKET REVENUE Second Quarter Foreign 2019* 2018* Change Operational1 Exchange Total International $741.9 $727.9 2% (8)% 10% Australia 48.8 50.9 (4)% (8)% 4% Brazil 74.2 68.3 9% (15)% 24% Canada 53.7 55.6 (3)% (4)% 1% China 56.0 60.1 (7)% (6)% (1)% France 27.1 29.5 (8)% (8)% - Germany

  11. Slide 11: 2019 Financial Guidance

    2019 FINANCIAL GUIDANCE Selected Line Items (millions of dollars, except per share amounts) May Guidance August Guidance Revenue $6,100 to $6,225 $6,175 to $6,275 Operational growth1 7.5% to 9.5% 8.5% to 10.0% Organic Operational growth2 4.5% to 6.5% 5.5% to 7.0% Adjusted cost of sales as a percenta

  12. Slide 12: Q&A

    Q&A 12 12

  13. Slide 13: Slide 13

Zoetis — Q2 2019 Earnings Presentation on 6ix