Slide 1: First Quarter 2018 Earnings Teleconference
First Quarter 2018 Earnings Teleconference May 1, 2018
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations First Quarter 2018 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 about, among other things, our anticipated future operating and financial performance, business plans and prospects, in-line products and product candid
Slide 4: Opening Remarks
Opening Remarks Ian Read Chairman and Chief Executive Officer First Quarter 2018 Earnings
Slide 5: CEO Perspectives
CEO Perspectives Innovative Health delivered a solid quarter with 3% operational revenue growth, despite the impact of moving U.S. Viagra to Essential Health and unfavorable customer buying patterns for Ibrance and Xeljanz in the U.S. Growth drivers (Ibrance, Xtandi, Xeljanz and Eliquis) are all
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2018 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) First Quarter 2018 2017 Change Revenues $12,906 $12,779 1% Reported Net Income(1) 3,561 3,121 14% Reported Diluted EPS(1) 0.59 0.51 15% Adjusted Income(2) 4,668 4,192 11% Adjusted Diluted EPS(2) 0.77 0.69 12% Q1 2018
Slide 8: Impact of Foreign Exchange on Revenues and Select Adjusted Income Components
Impact of Foreign Exchange on Revenues and Select Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) First Quarter 2018 2017 FX Impact Revenues $12,906 $12,779 $430 3% Adjusted Cost of Sales(1) 2,536 2,432 (240) (10%) COS as a Percentage of Revenues 19.7% 19.0%
Slide 9: 2018 Financial Guidance
2018 Financial Guidance(1)(2) Revenues $53.5 to $55.5 billion Adjusted Cost of Sales(3) as a Percentage of Revenues 20.5% to 21.5% Adjusted SI&A Expenses(3) $14.0 to $15.0 billion Adjusted R&D Expenses(3) $7.4 to $7.9 billion Adjusted Other (Income)/Deductions(3) Approximately $400 million of income
Slide 10: Key Takeaways
Key Takeaways Delivered solid Q1 2018 financial results, with Adjusted diluted EPS(1) up 12% compared to the same period last year Reaffirmed all components of our 2018 financial guidance Accomplished several product and pipeline milestones since our previous quarterly update Presented full result
Slide 11: First Quarter 2018 Earnings Teleconference Q&A Session
First Quarter 2018 Earnings Teleconference Q&A Session May 1, 2018