Slide 1: Third Quarter 2013 Earnings Teleconference
Third Quarter 2013 Earnings Teleconference October 29, 2013
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Third Quarter 2013 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. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ ar
Slide 4: Opening Remarks
Opening Remarks Ian Read Chairman and Chief Executive Officer Third Quarter 2013 Earnings
Slide 5: CEO Perspectives
CEO Perspectives ● Generated solid financial results in Q3 2013 and continued to progress many of our marketed products and pipeline assets ● Remain focused on improving launch performance for Eliquis and Xeljanz ● Significant late-stage pipeline opportunities warrant continued level of R&D investme
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Third Quarter 2013 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) Third Quarter 2013 2012 Change Reported Revenues(1) $12,643 $12,953 (2%) Adjusted Income(2) 3,859 3,754 3% Adjusted Diluted EPS(2) 0.58 0.50 16% Reported Net Income(1) 2,590 3,208 (19%) Reported Diluted EPS(1) 0.39 0.
Slide 8: BRIC-MT Biopharmaceutical Revenue Performance
BRIC-MT(1) Biopharmaceutical Revenue Performance ($ Millions, Except Percentages) Operational Growth / (Decline) $1,101 $1,115 Q3 2013 vs. YTD 2013 vs. Q3 2012 YTD 2012 $1,000 India 4% 7% $800 Turkey (20%) (27%) Russia 12% 12% $600 Mexico (13%) -- $400 Brazil 6% (3%) $200 China 8% 13% BRIC-MT(1) 2%
Slide 9: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Third Quarter 2013 2012 FX Impact Revenues(1) $12,576 $12,953 ($271) (2%) Cost of Sales(1) 2,178 2,213 96 4% SI&A Expenses(1) 3,351 3,441 62 2% R&D Expenses(1) 1,625 1,841 8 -- Tota
Slide 10: 2013 Financial Guidance
2013 Financial Guidance(1)(2) $50.8 to $51.8 Billion Adjusted Revenues(3) Previously $50.8 to $52.8 Billion 18.0% to 18.5% Adjusted Cost of Sales(3) as a % of Adjusted Revenues(3) Previously 18.0% to 19.0% $14.2 to $14.7 Billion Adjusted SI&A Expenses(3) Previously $14.2 to $15.2 Billion $6.3 to $6.
Slide 11: Key Takeaways
Key Takeaways • Results reflect product losses of exclusivity in various geographies and continued volatility in Emerging Markets Continue to expect mid-single-digit operational revenue growth in Emerging Markets in FY 2013 Continue to mitigate the impact of product LOEs with expense discipline
Slide 12: Third Quarter 2013 Earnings Teleconference Q&A Session
Third Quarter 2013 Earnings Teleconference Q&A Session October 29, 2013