Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results May 6, 2025
Slide 2: Forward-Looking Statements
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, R&D costs; timing and likelihood of success;
Slide 3: Presenters
FIRST QUARTER FINANCIAL RESULTS Presenters Strategy Financial and Business Performance Update Kristin Peck Wetteny Joseph Chief Executive Officer Executive Vice President and Chief Financial Officer 3
Slide 4: Strong Start to 2025
FIRST QUARTER FINANCIAL RESULTS Strong Start to 2025 Revenue Adj. Net Income2 Adj. Diluted EPS2 $2.2B $662M $1.48 9% 6% 8% organic operational1 YoY organic operational1 YoY organic operational1 YoY 5% Volume | 4% Price KEY HIGHLIGHTS Strong growth across Simparica franchise grew Key Dermatology OA p
Slide 5: Investments for Growth
FIRST QUARTER FINANCIAL RESULTS Investments for Growth Advancements in Innovation Simparica Trio® Poulvac® Procerta® Poulvac® IB Primer and QX Gained a new label HVT-IBD-ND and HVT-IBD Received approval for indication in the U.S. to Received approval in an association claim prevent flea tapeworm the
Slide 6: First Quarter Segment Highlights
FIRST QUARTER FINANCIAL RESULTS First Quarter Segment Highlights United States U.S. Segment Revenue U.S. Companion Animal Revenue U.S. Livestock Revenue $1.2B $1.0B $0.2B 6% organic operational growth1 Year 8% growth YOY 2% organic operational1 decline YOY over Year (YOY) International Int'l. Segmen
Slide 7: Reported to Organic Operational Results
FIRST QUARTER FINANCIAL RESULTS Reported to Organic Operational Results Understanding First Quarter 2025 Underlying Results First Quarter Reported Foreign Organic Operational1 Divestitures (millions of dollars) 2025 2024 Change Exchange Operational2 U.S. Companion animal $973 $898 8% —% 8% —% 8% Liv
Slide 8: 2025 Updated Guidance
FIRST QUARTER FINANCIAL RESULTS 2025 Updated Guidance Revenue Adj. Net Income1 $9,425M - $9,575M $2,775M - $2,825M Prior guidance: $9,225M - $9,375M Prior guidance: $2,700M - $2,750M Adj. Diluted EPS1 Organic Operational Growth2 $6.20 - $6.30 6% - 8% 5% - 7% Prior guidance: $6.00 - $6.10 Revenue Adj
Slide 9: Simparica Franchise
FIRST QUARTER FINANCIAL RESULTS Simparica Franchise • Simparica franchise grew 19% operationally, fueled by ongoing shift toward triple-combination – the (Millions of dollars) 1Q Revenue YoY fastest growing segment in animal health • In the U.S., 60% of puppies are now on triple combinations - a cle
Slide 10: Key Dermatology Franchise
FIRST QUARTER FINANCIAL RESULTS Key Dermatology Franchise (Millions of dollars) 1Q Revenue YoY • Key dermatology franchise grew revenue 10% operationally 10%1 • Comprehensive and differentiated portfolio offers unmatched flexibility to pet owners • Retail strategy continues to drive growth and compl
Slide 11: Osteoarthritis (OA) Pain mAb Franchise
FIRST QUARTER FINANCIAL RESULTS Osteoarthritis (OA) Pain mAb Franchise (Millions of dollars) 1Q Revenue YoY • OA pain franchise grew revenue 15% operationally • We continue to build and scale a new category of 15%1 care through engagement and education in an effort to accelerate adoption • Advancing
Slide 12: Our Continued Commitment to Value Creation
FIRST QUARTER FINANCIAL RESULTS Our Continued Commitment to Value Creation Key components of our three to five-year outlook Grow revenue faster Invest in innovation Increase adjusted net Return excess capital than the market and growth capabilities income faster than revenue to shareholders • Broade
Slide 13: Financial Results and Guidance
Financial Results and Guidance 13
Slide 14: Income Statement Highlights
FIRST QUARTER FINANCIAL RESULTS Income Statement Highlights First Quarter 2025 2024 Change (millions of dollars, except per share data) Revenue $2,220 $2,190 1% Reported Net Income 631 599 5% Reported Diluted Earnings Per Share $1.41 $1.31 8% Adjusted Net Income1 662 634 4% Adjusted Diluted Earnings
Slide 15: Adjusted Income Statement Highlights
FIRST QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights First Quarter Foreign (millions of dollars) 2025 2024 Change Exchange Operational1 Revenue $2,220 $2,190 1% (4)% 5% Adjusted Cost of Sales2 620 642 (3)% (10)% 7% as a percent of revenue3 27.9% 29.3% NA NA NA Adjusted SG&A Expenses2
Slide 16: U.S. Segment Performance
FIRST QUARTER FINANCIAL RESULTS U.S. Segment Performance First Quarter (millions of dollars) 2025 2024 Change Revenue $1,183 $1,163 2% Companion Animal 973 898 8% Livestock 210 265 (21)% Cost of Sales 199 217 (8)% Gross Profit 984 946 4% Gross Margin 83.2% 81.3% NA Operating Expenses 205 190 8% Othe
Slide 17: International Segment Performance
FIRST QUARTER FINANCIAL RESULTS International Segment Performance First Quarter Foreign (millions of dollars) 2025 2024 Change Exchange Operational1 Revenue $1,008 $1,007 —% (7)% 7% Companion Animal 573 552 4% (6)% 10% Livestock 435 455 (4)% (8)% 4% Cost of Sales 302 313 (4)% (14)% 10% Gross Profit
Slide 18: International Segment Performance
FIRST QUARTER FINANCIAL RESULTS International Segment Performance First Quarter Foreign (millions of dollars) 2025 2024 Change Exchange Operational1 Total International $1,008 $1,007 —% (7)% 7% Australia 75 73 3% (5)% 8% Brazil 88 101 (13)% (19)% 6% Canada 67 61 10% (7)% 17% Chile 34 31 10% (1)% 11%
Slide 19: Financial Guidance
FIRST QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items Full Year 2025 Full Year 2025 as of (millions of dollars, except per share amounts) as of May 6, 2025 February 13, 2025 (Prior Guidance) Revenue $9,425 to $9,575 $9,225 to $9,375 Organic operational growth1 6% to 8% 6% to 8% Adju
Slide 20: Q&A
FIRST QUARTER FINANCIAL RESULTS Q&A 20
Slide 21: Appendix
FIRST QUARTER FINANCIAL RESULTS Appendix 21
Slide 22: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FIRST QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures First Quarter Foreign (millions of dollars) 2025 2024 Change Exchange Operational1 Revenue by Product Category Key Dermatology $387 $360 8% (2)% 10% Key Dermatology (international) 138 127 9% (6)% 15% OA
Slide 23: Reconciliation Of GAAP To Non-GAAP Financial Measures
FIRST QUARTER FINANCIAL RESULTS Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Results to Organic Operational Results First Quarter Foreign Organic (millions of dollars, except per share data) 2025 2024 Change Exchange Operational1 Divestitures Operational2 Adjusted net income $662 $
Slide 24: zoetis
zoetis