Slide 1: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results November 4, 2021
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Non-GAAP Financial Statements Information This presentation contains forward-looking statements, which reflect the current views of We use non-GAAP* financial measures, such as adjusted net income, adjusted diluted Zoetis with respect to: business plans or prospects; future operating
Slide 3: Kristin Peck, Chief Executive Officer
Kristin Peck Chief Executive Officer
Slide 4: Key Takeaways
THIRD QUARTER FINANCIAL RESULTS Key Takeaways Strong Global Growth Continued in Q3 • Generated 10% operational1 revenue growth and 10% operational1 increase in adjusted net income2, with the U.S. increasing 7%, and International up 14% operationally • Companion animal revenue grew 19% operationally,
Slide 5: Wetteny Joseph, EVP and Chief Financial Officer
Wetteny Joseph Executive Vice President and Chief Financial Officer
Slide 6: Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Income Statement Highlights Third Quarter 2021* 2020* Change Revenue $1,990 $1,786 11% Reported Net Income 552 479 15% Reported Diluted Earnings Per Share $1.16 $1.00 16% Adjusted Net Income1 597 524 14% Adjusted Diluted Earnings Per Share1,2 $1.25 $1.10 14% * Million
Slide 7: Adjusted Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Third Quarter Foreign 2021* 2020* Change Exchange Operational1 Revenue $1,990 $1,786 11% 1% 10% Adjusted Cost of Sales2 583 543 7% (2)% 9% as a percent of revenue3 29.3% 30.4% NA NA NA Adjusted SG&A Expenses2 496 407 22% 2% 20% Adj
Slide 8: U.S. Segment Performance
THIRD QUARTER FINANCIAL RESULTS U.S. Segment Performance Third Quarter 2021* 2020* Change Revenue $1,065 $996 7% Companion Animal 775 664 17% Livestock 290 332 (13)% Cost of Sales 199 194 3% Gross Profit 866 802 8% Gross Margin 81.3% 80.5% NA Operating Expenses 183 157 17% Other (Income)/Deductions
Slide 9: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2021* 2020* Change Exchange Operational1 Revenue $904 $767 18% 4% 14% Companion Animal 427 331 29% 5% 24% Livestock 477 436 9% 2% 7% Cost of Sales 273 245 11% (1)% 12% Gross Profit 631 522 21% 5% 16% Gross Margin
Slide 10: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2021* 2020* Change Exchange Operational1 Total International $903.4 $766.9 18% 4% 14% Australia 69.8 59.7 17% 7% 10% Brazil 78.1 62.2 26% 4% 22% Canada 55.3 49.7 11% 8% 3% Chile 32.6 23.4 39% 2% 37% China 71.5 65
Slide 11: Financial Guidance
THIRD QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2021 Revenue $7,700 to $7,750 Operational growth1 14% to 14.5% Adjusted cost of sales as a percentage of revenue2 Approximately 30% Adjusted SG&A expenses2 $1,910 to $1,94
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
THIRD QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Third quarter ended September 30, Foreign 2021* 2020* Change Exchange Operational1 Revenue by Product Category Parasiticides (small animal) $325 $243 34% 2% 32% Key Dermatology 321 251 28% 2% 26% Diagnos
Slide 15: Zoetis
zoetis