Slide 1: First Quarter 2017 Earnings Teleconference
First Quarter 2017 Earnings Teleconference May 2, 2017
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations First Quarter 2017 Earnings
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 about, among other things, our anticipated future operating and financial performance, business plans and prospects, in-line products and product candid
Slide 4: Opening Remarks
Opening Remarks Ian Read Chairman and Chief Executive Officer First Quarter 2017 Earnings
Slide 5: CEO Perspectives
CEO Perspectives Solid start to 2017 with strong performances for our core Innovative Health brands (Ibrance, Eliquis, Lyrica and Xeljanz) and for the key growth drivers of our Essential Health business Both of our businesses remain focused on executing their individual strategies Pipeline hig
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2017 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) First Quarter 2017 2016 Change Revenues $12,779 $13,005 (2%) Reported Net Income(1) 3,121 3,038 3% Reported Diluted EPS(1) 0.51 0.49 6% Adjusted Income(2) 4,192 4,177 — Adjusted Diluted EPS(2) 0.69 0.67 3% Reported Re
Slide 8: Impact of Foreign Exchange on Revenues and Select Adjusted Income Components
Impact of Foreign Exchange on Revenues and Select Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) First Quarter 2017 2016 FX Impact Revenues $12,779 $13,005 ($116) (1%) Adjusted Cost of Sales(1) 2,434 2,565 28 1% COS as a Percentage of Revenues 19.1% 19.7% —
Slide 9: 2017 Financial Guidance
2017 Financial Guidance(1)(2) Revenues $52.0 to $54.0 billion Adjusted Cost of Sales(3) as a Percentage of Revenues 20.0% to 21.0% Adjusted SI&A Expenses(3) $13.7 to $14.7 billion Adjusted R&D Expenses(3) $7.5 to $8.0 billion Adjusted Other (Income) / Deductions(3) Approximately $100 million of dedu
Slide 10: Key Takeaways
Key Takeaways First quarter 2017 performance was solid, with operational revenue growth excluding Hospira Infusion Systems from all periods, despite a ~$300M negative impact due to fewer selling days compared to the prior year quarter Reaffirmed all components of our 2017 financial guidance Accompli
Slide 11: First Quarter 2017 Earnings Teleconference Q&A Session
First Quarter 2017 Earnings Teleconference Q&A Session May 2, 2017