Slide 1: Creating the World's Premier Biopharmaceutical Company
Creating the World’s Premier Biopharmaceutical Company January 26, 2009
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information 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 are di
Slide 3: Creating the World's Premier Biopharmaceutical Company
Creating the World’s Premier Biopharmaceutical Company 3 Creating the World’s Premier Biopharmaceutical Company
Slide 4: Jeff Kindler
Jeff Kindler Chairman and Chief Executive Officer
Slide 5: Creating the World's Premier Biopharmaceutical Company
Creating the World’s Premier Biopharmaceutical Company Drives Improved Performance Through Extends Global Health Care Leadership Unique, Flexible Business Model Human, Animal, Consumer Health; Nutritionals Focused, agile business units Primary and Specialty Care Backed by resources, scale of
Slide 6: Pfizer Has Transformed Itself and is Ready for This Acquisition
Pfizer Has Transformed Itself and is Ready for This Acquisition Primary Specialty Established Emerging Animal Oncology Care Care Products Markets Health Research and Business Units Biotherapeutics & Bioinnovation Sales & Center Development Medical Marketing Customer Manufacturing Focused Supporting
Slide 7: Why Wyeth Is Right For Pfizer
Why Wyeth Is Right For Pfizer Each of Pfizer’s Strategic Objectives Advanced in a Single Transaction Stated Objective Wyeth Presence / Capability Become a Leader in Biologics Enbrel, manufacturing excellence, pipeline Enter the Vaccines Market Prevnar, strong late-stage pipeline Expand Invest to Win
Slide 8: Diversification by Therapies
Diversification by Therapies Today Projected 2012 Capsugel Total Specialty Total Specialty 2% 17% Nutritional 30% Animal Oncology Capsugel Consumer 1% Animal Oncology Health ID* Health Inflammation 6% 5% Other 3% 4% 5% 4% 6% Specialty 6% 8% ID* 10% Other Primary 31% Other 10% Other Specialty 27% Pri
Slide 9: Diversification by Platforms
Diversification by Platforms Today Projected 2012 Animal Animal Health Biologics 2% Capsugel 1% Health Biologics Capsugel 2% Nutritional 6% Consumer 6% 3% 11% Vaccines 4% 5% 70% 90% Small Small Molecule Molecule 9 Creating the World’s Premier Biopharmaceutical Company
Slide 10: R&D Focus on Innovative Therapies in Key Areas of Unmet Medical Need
R&D Focus on Innovative Therapies in Key Areas of Unmet Medical Need Neuroscience Inflammation Oncology Metabolic Disorders Expands High Priority Disease Areas and Enhances Biologics Capabilities Vaccines Infectious Diseases Biotherapeutics 10 Creating the World’s Premier Biopharmaceutical Company
Slide 11: Revenue Leadership in Key Product Areas
Revenue Leadership in Key Product Areas + #1 Primary care #9 Primary care #1 Primary care #1 CV #1 CV #4 CNS #7 CNS #2 CNS Biopharma #10 Specialty1 #8 Specialty1 #2 Specialty1 Leadership #3 ID #7 ID #2 ID #4 Immunology #4 Immunology #9 Oncology #8 Oncology #4 Va
Slide 12: Revenue Leadership in Key Geographic Areas
Revenue Leadership in Key Geographic Areas + Geographic Leadership US #1 (9% share) #12 (3% share) #1 (12% share) Europe #2 (7% share) #10 (3% share) #1 (10% share) Asia (ex Japan) #1 (6% share) #12 (1% share) #1 (7% share) Japan #1 (6% share) #15+ #1 (6% share) Lat
Slide 13: Creating the Premier Health Care Portfolio
Creating the Premier Health Care Portfolio + Total Revenue: ~$48 Billion Total Revenue: ~$71 Billion* Consumer/ Primary Specialty Animal Health Nutritionals 2008 Revenue: ~$46B* 2008 Revenue: ~$17B* 2008 Revenue: ~$4B* 2008 Revenue: ~$4B* CNS Oncology Vitamins Vaccines CV Ophthalmology
Slide 14: Focused Business Units Backed by Global Resources
Focused Business Units Backed by Global Resources Agility and Speed Scale and Reach Patient-centric decision making Diversification and stability Entrepreneurial culture Relevance to payors P&L responsibility Fixed cost efficiencies Operational accountability Critical mass in key areas Ability to ha
Slide 15: Frank D'Amelio
Frank D’Amelio Chief Financial Officer
Slide 16: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per-Share Amounts) Fourth Quarter Full Year 2008 2007 Change 2008 2007 Change Reported Revenues $12,346 $12,870 (4%) $48,296 $48,418 -- Reported Net Income 266 2,724 (90%) 8,104 8,144 -- Reported Diluted EPS 0.04 0.40 (90%) 1.20 1.17 3% Adjusted Revenu
Slide 17: 2008 Financial Guidance vs. Actual
2008 Financial Guidance vs. Actual Guidance Actual Adjusted Revenues(1) $48.0 to $49.0 Billion $48.3 Billion Decrease of at least $2 Billion Decrease of $2.8 Billion Adjusted Total Costs(5) versus 2006 on a constant versus 2006 on a constant currency basis (3) currency basis (3) Adjusted Cost of Sal
Slide 18: 2009 Financial Guidance
2009 Financial Guidance Guidance(3) Adjusted Revenues(2) $44.0 to $46.0 Billion Adjusted Cost of Sales(2) as a Percentage of 14.5% to 15.5% Adjusted Revenues(2) Adjusted SI&A Expenses(2) $13.5 to $14.0 Billion Adjusted R&D Expenses(2) $7.1 to $7.5 Billion Adjusted Other Income(2) $500 to $700 Millio
Slide 19: 2009 Guidance Bridge
2009 Guidance Bridge Adjusted Revenue(1) Adjusted Diluted EPS(1) Full Year 2008 Results $48.3 billion $2.42 Foreign Exchange (~$3 billion) (~$0.21) Effective Tax Rate(3) – (~$0.21) Pension Expense – (~$0.04) Interest Income – (~$0.04) 2009 Guidance(2) $44.0 – $46.0 billion $1.85 – $1.95 2009 Underly
Slide 20: Financial Terms
Financial Terms Acquire all outstanding Wyeth common shares Purchase Price Currently valued at $50.19 per share* $33 per share in cash Cash/Share Mix Current value of $17.19 per share in equity (fixed exchange ratio of 0.985) Funding Combination of cash, debt and equity Pfizer shareholde
Slide 21: Transaction Funding
Transaction Funding Commitment from syndicate Sources of banks for debt financing JPMorgan, Bank of America Cash $22.5 Billion Merrill Lynch, Barclays, Citigroup, Goldman Sachs Debt 22.5 Billion Anticipated credit ratings Moody’s: A1/Stable long Pfizer Stock 23.0 Billion term, P1/affirmed sh
Slide 22: Meaningful Savings
Meaningful Savings $2B of Savings Announced Today Plus $4B of Deal Savings Savings Savings Achieved Savings Planned Post-Close Planned 2007-2008 2009-2011 Qtr 4 2009-2012 $12B $4.0 Billion $10B 50% within 12 months 75% within 24 months $8B 100% within 36 months $2.0 Billion $6B Approx. 50% f
Slide 23: 2012 Financial Targets
2012 Financial Targets Total Revenues Comparable to pro forma 2008 results of ~$70 billion Adjusted Operating Margin(1) High 30%s to Low 40%s Adjusted Diluted EPS(1) Comparable to Pfizer 2008 results of $2.42 Operating Cash Flow $20+ billion Cash Position Net positive Portfolio Diversification No pr
Slide 24: Jeff Kindler
Jeff Kindler Chairman and Chief Executive Officer
Slide 25: The Right Transaction at the Right Time for the Right Reasons
The Right Transaction at the Right Time for the Right Reasons Best Portfolio of Products, Pipeline and Capabilities in the Industry Strong Revenue Diversification from Stable, Growing Areas Leadership Positions in Key Growing Therapeutic Areas Combines Entrepreneurial, Focused Businesses with Global
Slide 26: The Premier Global Biopharmaceutical Company
The Premier Global Biopharmaceutical Company 26 Creating the World’s Premier Biopharmaceutical Company