Slide 1: Second Quarter 2017 Earnings Teleconference
Second Quarter 2017 Earnings Teleconference August 1, 2017
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Second 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 Second Quarter 2017 Earnings
Slide 5: CEO Perspectives
CEO Perspectives Another strong quarter for the Innovative Health business Ibrance, Eliquis and Xeljanz are performing well, with continued market penetration in their current indications and the potential for new indications for Xeljanz and Ibrance Xtandi underlying demand was strong this qua
Slide 6: Potential for Multiple Blockbuster Approvals over Next 5 Years
Potential for Multiple Blockbuster Approvals over Next 5 Years Approximately half potentially receiving approval by 2020 New Molecular Entities & Combos Oncology Inflammation & Immunology - Xtandi non-metastatic PROSPER/EMBARK - Xeljanz Psoriatic Arthritis & Ulcerative Colitis - Ibrance Intermediate
Slide 7: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Second Quarter 2017 Earnings
Slide 8: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) Second Quarter 2017 2016 Change Revenues $12,896 $13,147 (2%) Reported Net Income(1) 3,073 2,047 50% Reported Diluted EPS(1) 0.51 0.33 53% Adjusted Income(2) 4,063 3,929 3% Adjusted Diluted EPS(2) 0.67 0.64 5% Reporte
Slide 9: Impact of Foreign Exchange on Revenues and Select Adjusted Income Components
Impact of Foreign Exchange on Revenues and Select Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Second Quarter 2017 2016 FX Impact Revenues $12,896 $13,147 ($202) (2%) Adjusted Cost of Sales(1) 2,595 3,062 191 6% COS as a Percentage of Revenues 20.1% 23.3%
Slide 10: 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 Approximately $200 million of income Adjusted Other (Income) / Deductions(
Slide 11: Key Takeaways
Key Takeaways Delivered solid Q2 2017 financial results, with 2% operational revenue growth versus Q2 2016, excluding HIS from both periods, led by strong growth from Ibrance, Eliquis and Xeljanz, as well as the contribution from recently-acquired products including Xtandi Raised midpoint of 2017 ad
Slide 12: Q&A Session
Second Quarter 2017 Earnings Teleconference Q&A Session August 1, 2017