Slide 1: Third Quarter 2009 Earnings Teleconference
Third Quarter 2009 Earnings Teleconference October 20, 2009
Slide 2: Introduction
Third Quarter 2009 Earnings Teleconference Introduction Chuck Triano Senior Vice President, Investor Relations
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. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ a
Slide 4: Opening Remarks
Third Quarter 2009 Earnings Teleconference Opening Remarks Jeff Kindler Chairman & Chief Executive Officer
Slide 5: Financial Review
Third Quarter 2009 Earnings Teleconference Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer
Slide 6: Income Statement Highlights
Third-Quarter 2009 Income Statement Highlights ($ Millions, Except Per-Share Amounts) Third Quarter 2009 2008 Change Reported Revenues $11,621 $11,973 (3%) Reported Net Income(1) 2,878 2,278 26% Reported Diluted EPS(1) 0.43 0.34 26% Adjusted Income(2) 3,461 4,180 (17%) Adjusted Diluted EPS(2) 0.51 0
Slide 7: Quarterly Adjusted Income Components
Third-Quarter 2009 Quarterly Adjusted Income(1) Components ($ Millions, Except Per-Share Amounts) Third Quarter 2009 2008 Change Revenues(1) $11,603 $12,159 (5%) Cost of Sales(1) 1,787 1,760 1% SI&A Expenses(1) 3,225 3,429 (6%) R&D Expenses(1) 1,619 1,769 (8%) Adjusted Total Costs(2) 6,631 6,958 (5%
Slide 8: Factors Impacting Adjusted Income Components
Third-Quarter 2009 Factors Impacting Adjusted Income(1) Components Compared with the Year-Ago Quarter ($ Millions, Except Per-Share Amounts) Third Quarter Adjusted(1) Operational Impact Fx Impact Revenues(1) $11,603 $50 -- ($606) (5%) Cost of Sales(1) 1,787 (17) (1%) 44 2% SI&A Expenses(1) 3,225 (78
Slide 9: Business Revenues
Third-Quarter 2009 Business Revenues ($ Millions) Third Quarter Fx Operational 2009 2008 Change Impact Impact Primary Care $5,511 $5,769 (4%) (4%) -- Specialty Care 1,573 1,529 3% (3%) 6% Oncology 371 389 (5%) (7%) 2% Established Products 1,618 1,834 (12%) (3%) (9%) Emerging Markets 1,604 1,672 (4%)
Slide 10: Progress On Cost Reduction Initiatives
Third-Quarter 2009 Progress On Cost Reduction Initiatives Period Cost Reduction Net cost reductions totaling approx. $210 million realized in Q309 FY2007 $600 million(1) Total YTD reduction of $950 million FY2008 2,170 million(1) In Q409, a portion of the reductions achieved to date in 2009 ar
Slide 11: Updated 2009 Financial Guidance
Third-Quarter 2009 Updated 2009 Financial Guidance Guidance(2), (3) $49.0 to $50.0 Billion Reported Revenues (Previously $45.0 to $46.0 Billion) $1.45 to $1.50 Reported Diluted EPS(1) (Previously $1.30 to $1.45) $2.00 to $2.05 Adjusted Diluted EPS(1) (Previously $1.90 to $2.00) Guidance Updated to R
Slide 12: Key Takeaways
Third-Quarter 2009 Key Takeaways Excluding foreign exchange, results consistent with our expectations in a challenging macroeconomic and operating environment – Revenues were up 2% vs. Q308 excluding foreign exchange and the prior year product returns adjustment Net cost reductions of approximat
Slide 13: Q&A Session
Third Quarter 2009 Earnings Teleconference Q&A Session October 20, 2009