Zoetis Inc. · NYSE:ZTS
Zoetis — Q4 2021 Earnings Presentation
26 slides from Zoetis's earnings presentation, Feb 15, 2022
Slide 1: Fourth Quarter and Full Year 2021 Financial Results
Fourth Quarter and Full Year 2021 Financial Results February 15, 2022
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
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Key Takeaways Strong Global Growth Continued in 2021 • Generated 15% operational1 revenue growth and 19% operational1 increase in adjusted net income2, with revenue in the U.S increasing 14% and International up 17% operationally1. • Full year revenue o
Slide 5: Wetteny Joseph, Executive Vice President and Chief Financial Officer
Wetteny Joseph Executive Vice President and Chief Financial Officer
Slide 6: Income Statement Highlights - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Income Statement Highlights Fourth Quarter 2021* 2020* Change Revenue $1,967 $1,807 9% Reported Net Income 414 359 15% Reported Diluted Earnings Per Share $0.87 $0.75 16% Adjusted Net Income1 474 438 8% Adjusted Diluted Earnings Per Share1,2 $1.00 $0.91
Slide 7: Income Statement Highlights - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Income Statement Highlights Full Year 2021* 2020* Change Revenue $7,776 $6,675 16% Reported Net Income 2,037 1,638 24% Reported Diluted Earnings Per Share $4.27 $3.42 25% Adjusted Net Income1 2,240 1,844 21% Adjusted Diluted Earnings Per Share1,2 $4.70
Slide 8: Adjusted Income Statement Highlights - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Adjusted Income Statement Highlights Fourth Quarter Foreign 2021* 2020* Change Exchange Operational1 Revenue $1,967 $1,807 9% —% 9% Adjusted Cost of Sales2 598 584 2% (3)% 5% as a percent of revenue3 30.4% 32.3% NA NA NA Adjusted SG&A Expenses2 586 511
Slide 9: Adjusted Income Statement Highlights - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Adjusted Income Statement Highlights Full Year Foreign 2021* 2020* Change Exchange Operational1 Revenue $7,776 $6,675 16% 1% 15% Adjusted Cost of Sales2 2,289 2,030 13% 1% 12% as a percent of revenue3 29.4% 30.4% NA NA N/A Adjusted SG&A Expenses2 1,971
Slide 10: U.S. Segment Performance - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS U.S. Segment Performance Fourth Quarter 2021* 2020* Change Revenue $1,040 $952 9% Companion Animal 763 634 20% Livestock 277 318 (13)% Cost of Sales 213 194 10% Gross Profit 827 758 9% Gross Margin 79.5% 79.6% NA Operating Expenses 197 184 7% Other (Inc
Slide 11: U.S. Segment Performance - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS U.S. Segment Performance Full Year 2021* 2020* Change Revenue $4,042 $3,557 14% Companion Animal 2,990 2,391 25% Livestock 1,052 1,166 (10)% Cost of Sales 788 709 11% Gross Profit 3,254 2,848 14% Gross Margin 80.5% 80.1% NA Operating Expenses 681 602 13
Slide 12: International Segment Performance - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Fourth Quarter Foreign 2021* 2020* Change Exchange Operational1 Revenue $902 $832 8% —% 8% Companion Animal 419 344 22% (1)% 23% Livestock 483 488 (1)% 1% (2)% Cost of Sales 273 274 —% (2)% 2% Gross Profit 629 558 13% 2
Slide 13: International Segment Performance - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Full Year Foreign 2021* 2020* Change Exchange Operational1 Revenue $3,652 $3,035 20% 3% 17% Companion Animal 1,699 1,261 35% 5% 30% Livestock 1,953 1,774 10% 2% 8% Cost of Sales 1,106 971 14% 1% 13% Gross Profit 2,546 2
Slide 14: International Segment Performance - Fourth Quarter by Country
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Fourth Quarter Foreign 2021* 2020* Change Exchange Operational1 Total International $902.3 $832.8 8% —% 8% Australia 62.8 53.4 18% 2% 16% Brazil 84.1 77.0 9% —% 9% Canada 63.0 66.1 (5)% 4% (9)% Chile 36.1 28.3 28% (1)%
Slide 15: International Segment Performance - Full Year by Country
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Full Year Foreign 2021* 2020* Change Exchange Operational1 Total International $3,651.9 $3,035.4 20% 3% 17% Australia 258.8 207.2 25% 11% 14% Brazil 311.5 258.3 21% (7)% 28% Canada 231.5 209.8 10% 7% 3% Chile 136.3 100.
Slide 16: Financial Selected Guidance
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS FinancialSelected GuidanceLine Items Foreign Exchange (millions of dollars, except per share amounts) Impact Full Year 2022 Revenue $8,325 to $8,475 ~ $(160) Operational growth1 9% to 11% Adjusted cost of sales as a percentage of revenue2 Approximately
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Fourth quarter ended December 31, Foreign 2021* 2020* Change Exchange Operational1 Revenue by Product Category Parasiticides (small animal) $308 $233 32% —% 32% Key Dermatology 316 257 23%
Slide 20: Reconciliation Of Adjusted Net Income To Adjusted EBIT
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Adjusted Net Income To Adjusted EBIT Dollars in millions 2019 2020 2021 Adjusted net income attributable to Zoetis1 $1,755 $1,844 $2,240 Interest expense2 223 231 224 Interest income2 (37) (12) (6) Income taxes2 390 413 511 Adjusted EB
Slide 21: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2021
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2021 GAAP1 Purchase Acquisition- Certain Non-GAAP in USD millions, except per share data Reported Accounting Related Costs Significant Items Adjusted2 Cost of sales $2,303 $(6) $— $(8) $2,
Slide 22: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2020
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2020 GAAP1 Purchase Acquisition- Certain Non-GAAP in USD millions, except per share data Reported Accounting Related Costs Significant Items Adjusted2 Cost of sales $2,057 $(8) $— $(19) $2
Slide 23: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2019
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2019 GAAP1 Purchase Acquisition- Certain Significant Non-GAAP in USD millions, except per share data Reported Accounting Related Costs Items Adjusted2 Cost of sales $1,992 $(24) $— $(77) 1
Slide 24: Reconciliation Of Adjusted Net Income Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Adjusted Net Income Growth To Non- GAAP Financial Measures Adjusted Change From Foreign Operational in USD millions Net Income1 Prior Year Exchange Growth2 2019 $1,755 15% 1% 14% 2020 $1,844 5% (5)% 10% 2021 $2,240 21% 2% 19% 1 Adjuste
Slide 25: Reconciliation Of Reported Revenue To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Reported Revenue To Non-GAAP Financial Measures Organic Change From Prior Operational Operational in USD millions Revenue Year Foreign Exchange Growth1 Acquisitions2 Growth3 2019 $6,260 7% (3)% 10% 2% 8% 2020 $6,675 7% (2)% 9% 1% 8% 20
Slide 26: zoetis
zoetis