Slide 1: First Quarter 2008 Earnings Teleconference
First Quarter 2008 Earnings Teleconference April 17, 2008
Slide 2: Introduction
First Quarter 2008 Earnings Teleconference Introduction Amal Naj Senior Vice President, WW Investor Development & Strategy
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
Slide 4: Opening Remarks
First Quarter 2008 Earnings Teleconference Opening Remarks Jeff Kindler Chairman & Chief Executive Officer
Slide 5: Financial Review
First Quarter 2008 Earnings Teleconference Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer
Slide 6: Income Statement Highlights
First-Quarter 2008 Income Statement Highlights ' ($ Millions, Except Per-Share Amounts) First Quarter 2008 2007 Change Reported Revenues $11,848 $12,474 (5%) Reported Net Income 2,784 3,392 (18%) Reported Diluted EPS 0.41 0.48 (15%) Adjusted Income(1) 4,099 4,804 (15%) Adjusted Diluted EPS(1) 0.61 0
Slide 7: Certain Significant Items
First-Quarter 2008 Certain Significant Items ' ($ Millions, on a Pre-Tax Basis) First Quarter 2008 2007 Restructuring Charges $177 $795 Implementation Costs 357 174 Cost-Reduction Initiatives $534 $969 Other 7 10 Total Certain Significant Items $541 $979 Lower Expenses Related to Our Total Cost-Redu
Slide 8: Quarterly Adjusted Income Components
First-Quarter 2008 Quarterly Adjusted Income (1) Components ' ($ Millions, Except per-Share Amounts) First Quarter 2008 2007 Change Revenues(1) $11,796 $12,431 (5%) Cost of Sales(1) 1,800 1,744 3% SI&A Expenses(1) 3,409 3,313 3% R&D Expenses(1) 1,638 1,628 1% Provision for Income Taxes(1) 1,150 1,33
Slide 9: Quarterly Select Product Highlights
First-Quarter 2008 Quarterly Select Product Highlights ' ($ Millions) Worldwide U.S. International 2008 Change 2008 Change 2008 Change In-Line Products(1) Lipitor $3,137 (7%) $1,751 (18%) $1,386 13% Viagra 460 6% 223 (1%) 237 13% Celebrex 611 2% 464 (2%) 147 20% Lyrica 582 47% 351 45% 231 51% Xalata
Slide 10: 2008 Financial Guidance
First-Quarter 2008 2008 Financial Guidance ' Guidance(3) Revenues $47.0 to $49.0 Billion Decrease of at least $1.5–$2 Billion versus Adjusted Total Costs(1) 2006 on a constant currency basis (2) Adjusted Cost of Sales(1) as a 14.5% to 15.5% Percentage of Revenue Adjusted R&D Expenses(1) $7.3 to $7.6
Slide 11: Key Takeaways
First-Quarter 2008 Key Takeaways ' Reaffirmed 2008 guidance New products(1) continue to perform well – particularly Chantix and Sutent Steady growth from several in-line products(2) – including Lyrica, Geodon, Viagra and Xalatan As anticipated, year-over-year results were negatively impacted
Slide 12: Q&A Session
First Quarter 2008 Earnings Teleconference Q&A Session