Zoetis Inc. · NYSE:ZTS
Zoetis — Q1 2017 Earnings Presentation
14 slides from Zoetis's earnings presentation, May 4, 2017
Slide 1: First Quarter 2017 Financial Results
FIRST QUARTER 2017 FINANCIAL RESULTS May 4, 2017 1 1
Slide 2: Forward-Looking Statements; Non-GAAP Financial Information
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to business plans or prospects, future operating or financial performance, future guidance, future operating models, expectations regarding products, future use of
Slide 3: Juan Ramón Alaix, Chief Executive Officer
JUAN RAMÓN ALAIX CHIEF EXECUTIVE OFFICER 3 3
Slide 4: Key CEO Takeaways
KEY CEO TAKEAWAYS STRONG START TO 2017 • Strong start to 2017 with operational1 revenue growth driven largely by sales of companion animal products such as Simparica, Apoquel and Cytopoint, and our livestock portfolio featured growth in swine, cattle and fish across our international markets • Adjus
Slide 5: Glenn David, Chief Financial Officer
GLENN DAVID CHIEF FINANCIAL OFFICER 5 5
Slide 6: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS First Quarter 2017* 2016* Change Revenue $1,231 $1,162 6% Reported Net Income 238 204 17% Reported Diluted Earnings Per Share $0.48 $0.41 17% Adjusted Net Income1 261 239 9% Adjusted Diluted EPS1 $0.53 $0.48 10% * Millions of dollars, except per share data 6 1Adjusted net
Slide 7: Adjusted Income Statement Highlights
ADJUSTED INCOME STATEMENT HIGHLIGHTS First Quarter Foreign 2017* 2016* Change Operational2 Exchange Revenue $1,231 $1,162 6% - 6% Adjusted Cost of Sales1 438 378 16% 2% 14% as a percent of revenue 35.6% 32.5% NA NA NA Adjusted SG&A Expenses1 306 300 2% - 2% Adjusted R&D Expenses1 89 89 - - - Effecti
Slide 8: US Segment Performance
US SEGMENT PERFORMANCE First Quarter Foreign 2017* 2016* Change Operational1 Exchange Revenue $605 $582 4% - 4% Livestock 282 288 (2)% - (2)% Companion Animal 323 294 10% - 10% Cost of Sales 137 131 5% - 5% Gross Profit 468 451 4% - 4% Gross Margin 77.4% 77.5% NA - NA Operating Expenses 96 92 4% - 4
Slide 9: International Segment Performance
INTERNATIONAL SEGMENT PERFORMANCE First Quarter Foreign 2017* 2016* Change Operational1 Exchange Revenue $615 $567 8% (1)% 9% Livestock 421 395 7% - 7% Companion Animal 194 172 13% (2)% 15% Cost of Sales 213 196 9% - 9% Gross Profit 402 371 8% (1)% 9% Gross Margin 65.4% 65.4% NA NA NA Operating Expe
Slide 10: International Market Revenue
INTERNATIONAL MARKET REVENUE First Quarter Foreign 2017* 2016* Change Operational1 Exchange Total International $615 $567 8% (1)% 9% Australia 40 35 14% 4% 10% Brazil 66 46 43% 28% 15% Canada 34 33 3% 3% - China 52 38 37% (10)% 47% France 29 36 (19)% (4)% (15)% Germany 28 29 (3)% (2)% (1)% Italy 22
Slide 11: Financial Guidance
FINANCIAL GUIDANCE Selected Line Items 2017 (millions of dollars, except per share amounts) Revenue $5,100 to $5,225 Operational growth1 5.5% to 7.5% Adjusted cost of sales as a percentage of revenue2 32% to 33% Adjusted SG&A expenses2 $1,265 to $1,325 Adjusted R&D expenses2 $360 to $380 Adjusted in
Slide 12: One Time Costs 2015 - 2017
ONE TIME COSTS 2015 - 2017 Pre-tax Charges1 2015 - 2017 (millions of dollars) Stand-up costs, acquisition-related costs and other2 $280 Operational efficiency initiative $305 to $315 Supply network strategy $55 to $65 Certain significant items and acquisition-related costs $640 to $660 1Excludes non
Slide 13: Q&A
Q&A 13 13
Slide 14: Zoetis
zoetis