Slide 1: First Quarter 2014 Earnings Teleconference
First Quarter 2014 Earnings Teleconference May 5, 2014
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations First Quarter 2014 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. 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
Opening Remarks Ian Read Chairman and Chief Executive Officer First Quarter 2014 Earnings
Slide 5: CEO Perspectives
CEO Perspectives l Q1 2014 financial performance was in line with expectations; revenues reflected the continuing impact of product losses of exclusivity and the expiration or near-term termination of certain collaborations Ü Excluding losses of exclusivity and co-promote expirations, we had 1% oper
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2014 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) First Quarter 2014 2013 Change Reported Revenues(1) $11,353 $12,410 (9%) Adjusted Income(2) 3,665 3,740 (2%) Adjusted Diluted EPS(2) 0.57 0.51 12% Reported Net Income(1) 2,329 2,750 (15%) Reported Diluted EPS(1) 0.36
Slide 8: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) First Quarter 2014 2013 FX Impact Revenues(1) $11,296 $12,410 ($364) » (3%) Cost of Sales(1) 1,986 2,229 116 » 5% SI&A Expenses(1) 3,020 3,178 73 » 2% R&D Expenses(1) 1,612 1,618 6
Slide 9: 2014 Adjusted Financial Guidance
2014 Adjusted Financial Guidance(1)(2)(3) Adjusted Revenues(4) $49.2 to $51.2 Billion Adjusted Cost of Sales(4) as a % of Adjusted Revenues(4) 19.0% to 20.0% Adjusted SI&A Expenses(4) $13.5 to $14.5 Billion Adjusted R&D Expenses(4) $6.4 to $6.9 Billion Adjusted Other (Income) / Deductions(4) ~$100 M
Slide 10: Global Innovative Pharmaceutical (GIP) Segment
Global Innovative Pharmaceutical (GIP) Segment Geno Germano Group President First Quarter 2014 Earnings
Slide 11: Global Innovative Pharmaceutical (GIP) Segment Highlights
Global Innovative Pharmaceutical (GIP) Segment Highlights l GIP is comprised of innovative new products, world-class brands as well as a pipeline that includes various high-potential late-stage candidates l GIP intends to make targeted investments this year to drive future revenue growth: Ü Focused
Slide 12: GIP Selected Financial Highlights
GIP Selected Financial Highlights ($ Millions, Except Percentages) First Quarter l Q1 2014 revenues decreased 4% operationally to $3,076 vs. Q1 2013 % Change 2014 2013 Total Oper. l Cost of sales, SI&A expenses and R&D expenses Revenues $3,076 $3,306 (7%) (4%) in aggregate increased 12% operationall
Slide 13: Global Vaccines, Oncology and Consumer Healthcare (VOC) Segment
Global Vaccines, Oncology and Consumer Healthcare (VOC) Segment Albert Bourla Group President First Quarter 2014 Earnings
Slide 14: VOC Segment Highlights
Global Vaccines, Oncology and Consumer Healthcare (VOC) Segment Highlights l VOC is composed of three global and distinct businesses driven by an innovative pipeline and successful product launches l Achieved several pipeline milestones Ü Presented positive results from the Prevenar 13 CAPiTA trial
Slide 15: VOC Selected Financial Highlights
VOC Selected Financial Highlights ($ Millions, Except Percentages) First Quarter l Q1 2014 revenues grew 1% operationally to $2,174 vs. Q1 2013 % Change 2014 2013 Total Oper. l Cost of sales, SI&A expenses and R&D expenses in Revenues $2,174 $2,190 (1%) 1% aggregate decreased 3% operationally Ü Cost
Slide 16: Global Established Pharmaceutical (GEP) Segment
Global Established Pharmaceutical (GEP) Segment John Young Group President First Quarter 2014 Earnings
Slide 17: Global Established Pharmaceutical (GEP) Segment Highlights
Global Established Pharmaceutical (GEP) Segment Highlights l GEP is a highly-diversified operating segment with distinctive opportunities across portfolios and geographies l GEP is comprised of three primary product groupings with different market dynamics Ü Peri-LOE Developed -- Comprised of produc
Slide 18: GEP Selected Financial Highlights
GEP Selected Financial Highlights ($ Millions, Except Percentages) First Quarter l Q1 2014 revenues declined 10% operationally to $5,990 vs. Q1 2013 % Change 2014 2013 Total Oper. l Cost of sales, SI&A expenses and R&D expenses in Revenues $5,990 $6,861 (13%) (10%) aggregate decreased 12% operationa
Slide 19: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2014 Earnings
Slide 20: Key Takeaways
Key Takeaways • Q1 2014 financial performance was in line with our expectations Ü Reflected the continuing impact of product losses of exclusivity, the expiration and near-term termination of certain collaboration agreements and an operating environment that remains challenging Confirmed all compone
Slide 21: Q&A Session
First Quarter 2014 Earnings Teleconference Q&A Session May 5, 2014