Slide 1: Second Quarter 2012 Earnings Teleconference
Second Quarter 2012 Earnings Teleconference July 31, 2012
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Second Quarter 2012 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 Second Quarter 2012 Earnings
Slide 5: CEO Perspectives
CEO Perspectives ● Solid quarterly performance despite significant product losses of exclusivity, driven by: Emerging Markets with 14% operational revenue growth, including strong volume growth in key markets such as China and Russia Greater expense discipline resulting from ongoing efforts to s
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Second Quarter 2012 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per-Share Amounts and Percentages) Second Quarter 2012 2011 Change Reported Revenues $15,057 $16,485 (9%) Adjusted Income(1) 4,671 4,650 -- Adjusted Diluted EPS(1) 0.62 0.59 5% Reported Net Income(1) 3,253 2,610 25% Reported Diluted EPS(1) 0.43 0.33 30
Slide 8: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Second Quarter 2012 2011 FX Impact Revenues $15,057 $16,485 ($451) (3%) Cost of Sales(1) 2,665 3,025 284 9% SI&A Expenses(1) 3,937 4,777 95 2% R&D Expenses(1) 1,664 2,050 17 1% Tota
Slide 9: Emerging Markets Biopharmaceutical Revenue Mix
Emerging Markets Biopharmaceutical Revenue Mix ($ Millions, Except Percentages) Emerging Markets Business Unit BRIC-MT(1) Biopharmaceutical $2,620, up 14% operationally vs. Q2 2011 $1,228, up 20% operationally vs. Q2 2011 Established Primary Care Primary Care Products +12% +13% +17% 26% 26% Establis
Slide 10: BRIC-MT Biopharmaceutical Revenue Performance
BRIC-MT(1) Biopharmaceutical Revenue Performance ($ Millions, Except Percentages) Operational Growth / (Decline) $1,228 $1,200 Q2 2012 vs. YTD 2012 vs. $1,100 Q2 2011 YTD 2011 $1,000 India 11% 12% Russia 33% 47% $800 Turkey 24% (5%) $600 Mexico (20%) (3%) $400 Brazil 32% 12% China 36% 34% $200 BRIC-
Slide 11: 2012 Financial Guidance
2012 Financial Guidance(1)(2) Reported Revenues $58.0 to $60.0 Billion Adjusted Cost of Sales(3) as a Percentage of Revenues 19.5% to 20.5% Adjusted SI&A Expenses(3) $16.3 to $17.3 Billion Adjusted R&D Expenses(3) $6.5 to $7.0 Billion Adjusted Other (Income) / Deductions(3) Approximately $1.0 Billio
Slide 12: Key Takeaways
Key Takeaways • Quarterly results reflect solid operational performance despite the loss of exclusivity of several products in various geographies, most notably Lipitor in most major markets • Anticipate filing a registration statement by mid-August for a potential initial public offering (IPO) of u
Slide 13: Q&A Session
Second Quarter 2012 Earnings Teleconference Q&A Session July 31, 2012