Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results August 4, 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
SECOND QUARTER FINANCIAL RESULTS Key Takeaways 2Q Growth in line with expectations • Generated 8% operational1 revenue growth and 9% operational1 increase in adjusted net income2, with revenue in the U.S. increasing 9% and International up 8% operationally. • Companion animal revenue grew 14% operat
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
SECOND QUARTER FINANCIAL RESULTS Income Statement Highlights Second Quarter 2022* 2021* Change Revenue $2,052 $1,948 5% Reported Net Income 529 512 3% Reported Diluted Earnings Per Share $1.12 $1.07 5% Adjusted Net Income1 567 566 —% Adjusted Diluted Earnings Per Share1,2 $1.20 $1.19 1% * Millions o
Slide 7: Adjusted Income Statement Highlights
SECOND QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Second Quarter Foreign 2022* 2021* Change Exchange Operational1 Revenue $2,052 $1,948 5% (3)% 8% Adjusted Cost of Sales2 620 565 10% 2% 8% as a percent of revenue3 30.2% 29.0% NA NA NA Adjusted SG&A Expenses2 522 488 7% (1)% 8% Ad
Slide 8: U.S. Segment Performance
SECOND QUARTER FINANCIAL RESULTS U.S. Segment Performance Second Quarter 2022* 2021* Change Revenue $1,091 $1,004 9% Companion Animal 895 794 13% Livestock 196 210 (7)% Cost of Sales 198 192 3% Gross Profit 893 812 10% Gross Margin 81.9% 80.9% NA Operating Expenses 207 170 22% Other (Income)/Deducti
Slide 9: International Segment Performance
SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Foreign 2022* 2021* Change Exchange Operational1 Revenue $943 $924 2% (6)% 8% Companion Animal 471 435 8% (8)% 16% Livestock 472 489 (3)% (5)% 2% Cost of Sales 288 278 4% —% 4% Gross Profit 655 646 1% (9)% 10% Gross Ma
Slide 10: International Segment Performance
SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Foreign 2022* 2021* Change Exchange Operational1 Total International $943.2 $923.9 2% (6)% 8% Australia 80.1 69.1 16% (7)% 23% Brazil 85.9 75.7 13% 12% 1% Canada 66.8 67.1 —% (2)% 2% Chile 34.2 33.6 2% (4)% 6% China 96
Slide 11: Financial Guidance
SECOND QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2022 Revenue $8,225 to $8,325 Operational growth1 9.5% to 10.5% Adjusted cost of sales as a percentage of revenue2 29.0% - 29.5% Adjusted SG&A expenses2 $2,065 to $2,100
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
SECOND QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Three months ended June 30, 2022* 2021* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $315 $280 13% (3)% 16% Diagnostics (companion animal) 83 93 (11)% (2)% (9)% Reven
Slide 15: Zoetis
zoetis