Slide 1: Fourth Quarter 2009 Earnings Teleconference
Fourth Quarter 2009 Earnings Teleconference February 3, 2010
Slide 2: Introduction
Fourth Quarter 2009 Earnings Teleconference Introduction Chuck Triano Senior Vice President, Investor Relations
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 a
Slide 4: Opening Remarks
Fourth Quarter 2009 Earnings Teleconference Opening Remarks Jeff Kindler Chairman & Chief Executive Officer
Slide 5: Financial Review
Fourth Quarter 2009 Earnings Teleconference Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer
Slide 6: Income Statement Highlights
Fourth-Quarter 2009 Income Statement Highlights ($ millions, except per-share amounts) Fourth Quarter Full Year 2009 2008 Change 2009 2008 Change Reported Revenues $16,537 $12,346 34% $50,009 $48,296 4% Reported Net Income(1) 767 266 188% 8,635 8,104 7% Reported Diluted EPS(1) 0.10 0.04 150% 1.23 1.
Slide 7: Quarterly Adjusted Income Components
Fourth-Quarter 2009 Quarterly Adjusted Income(1) Components ($ millions, except per-share amounts) Fourth Quarter 2009 2008 Change Revenues(1) $16,520 $12,311 34% Cost of Sales(1) 2,886 1,444 100% SI&A Expenses(1) 5,345 3,510 52% R&D Expenses(1) 2,799 2,212 27% Adjusted Total Costs(2) 11,030 7,166 5
Slide 8: 2009 Financial Guidance vs. Actual
Fourth-Quarter 2009 2009 Financial Guidance vs. Actual Guidance(2), (3) Actual Reported Revenues $49.0 to $50.0 Billion $50.0 Billion Reported Diluted EPS(1) $1.45 to $1.50 $1.23 Adjusted Diluted EPS(1) $2.00 to $2.05 $2.02 Achieved Reported Revenue and Adjusted Diluted EPS(1) Guidance; Actual R
Slide 9: Factors Impacting Adjusted Income Components
Fourth-Quarter 2009 Factors Impacting Adjusted Income(1) Components Compared with the Year-Ago Quarter ($ millions, except per-share amounts) Fourth Quarter Adjusted(1) FX Impact Revenues(1) $16,520 $469 4% Cost of Sales(1) 2,886 568 39% SI&A Expenses(1) 5,345 135 4% R&D Expenses(1) 2,799 17 1% Tota
Slide 10: Biopharmaceutical Revenues
Fourth-Quarter 2009 Biopharmaceutical Revenues ($ millions) Fourth Quarter Total Legacy Pfizer FX 2009 2008 Change Operational Operational Impact Growth Growth Primary Care $6,521 $5,930 10% 4% 6% 1% Specialty Care 2,934 1,595 84% 5% 79% 9% Established Products 2,749 1,749 57% 6% 51% 1% Emerging Mar
Slide 11: Diversified Revenues
Fourth-Quarter 2009 Diversified Revenues ($ millions) Fourth Quarter Total Legacy Pfizer FX 2009 2008 Change Operational Operational Impact Growth Growth Animal Health $901 $783 15% 4% 11% 1% Consumer Healthcare 494 -- * -- 100% -- Capsugel 223 203 10% 5% 5% 5% Nutrition 191 -- * -- 100% -- Total $1
Slide 12: Meaningful Cost Reductions Projected Through 2012
Fourth-Quarter 2009 Meaningful Cost Reductions Projected Through 2012 ($ billions) Cost reductions expected to be $8 achieved half from SI&A and half $7B from R&D and manufacturing Projected cost reductions at $6 $4-5B 2008 average foreign exchange rates compared with the 2008 $4 pro-forma adjus
Slide 13: Progress On Pfizer Stand-Alone Cost Reduction Initiatives
Fourth-Quarter 2009 Progress On Pfizer Stand-Alone Cost Reduction Initiatives Total full-year 2009 reduction Period Activity Amount of ~$200 million During Q4 2009, a portion Q1 to Q3 Net Reductions $950 million(1) of the reductions achieved in 2009 Achieved Q1–Q3 2009 were invested in the follo
Slide 14: 2010 Financial Guidance
Fourth-Quarter 2008 2010 Financial Guidance Guidance(2)(3) Reported Revenues $67.0 to $69.0 Billion Adjusted Cost of Sales(1) as a 19.0% to 20.0% Percentage of Revenues Adjusted SI&A Expenses(1) $19.0 to $20.0 Billion Adjusted R&D Expenses(1) $9.1 to $9.6 Billion Adjusted Other (Income)/Deductions(1
Slide 15: 2012 Financial Targets
Fourth-Quarter 2009 2012 Financial Targets Previous Current(2) Comparable to pro forma Reported Revenues $66.0 to $68.5 billion 2008 results of ~$70 billion Adjusted R&D(1) Expenses -- $8.0 to $8.5 billion Adjusted Operating Margin(1) High 30%s to Low 40%s High 30%s to Low 40%s Adjusted Other -- $1.
Slide 16: Key Takeaways
Fourth-Quarter 2009 Key Takeaways Achieved 2009 revenue and adjusted diluted EPS(1) guidance Realized $200 million in operational net cost reductions on a Pfizer stand-alone basis after significant investment in the business Provided 2010 financial guidance – Continue to balance investment in
Slide 17: Q&A Session
Fourth Quarter 2009 Earnings Teleconference Q&A Session February 3, 2010