Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results May 4, 2023
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Non-GAAP Financial Statements Information This presentation contains forward-looking statements, which reflect the current views of We use non-GAAP* financial measures, such as adjusted net income, adjusted diluted Zoetis with respect to: business plans or prospects; future operating
Slide 3: Kristin Peck, Chief Executive Officer
Kristin Peck Chief Executive Officer
Slide 4: Key Takeaways
FIRST QUARTER FINANCIAL RESULTS Key Takeaways 1Q Revenue Growth and Earnings Results • Generated 4% operational1 revenue growth and a 3% operational decline in adjusted net income2, with International revenue up 10% operationally, partially offset by a decline of 1% in the U.S. • Our livestock portf
Slide 5: Wetteny Joseph, Executive Vice President and Chief Financial Officer
Wetteny Joseph Executive Vice President and Chief Financial Officer
Slide 6: Income Statement Highlights
FIRST QUARTER FINANCIAL RESULTS Income Statement Highlights First Quarter 2023* 2022* Change Revenue $2,000 $1,986 1% Reported Net Income 552 595 (7)% Reported Diluted Earnings Per Share $1.19 $1.26 (6)% Adjusted Net Income1 607 625 (3)% Adjusted Diluted Earnings Per Share1,2 $1.31 $1.32 (1)% * Mill
Slide 7: Adjusted Income Statement Highlights
FIRST QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights First Quarter Foreign 2023* 2022* Change Exchange Operational1 Revenue $2,000 $1,986 1% (3)% 4% Adjusted Cost of Sales2 584 565 3% (9)% 12% as a percent of revenue3 29.2% 28.4% NA NA NA Adjusted SG&A Expenses2 498 458 9% (2)% 11% A
Slide 8: U.S. Segment Performance
FIRST QUARTER FINANCIAL RESULTS U.S. Segment Performance First Quarter 2023* 2022* Change Revenue $1,005 $1,020 (1)% Companion Animal 721 774 (7)% Livestock 284 246 15% Cost of Sales 203 185 10% Gross Profit 802 835 (4)% Gross Margin 79.8% 81.9% NA Operating Expenses 188 165 14% Other (Income)/Deduc
Slide 9: International Segment Performance
FIRST QUARTER FINANCIAL RESULTS International Segment Performance First Quarter Foreign 2023* 2022* Change Exchange Operational1 Revenue $978 $948 3% (7)% 10% Companion Animal 504 489 3% (7)% 10% Livestock 474 459 3% (7)% 10% Cost of Sales 291 265 10% (10)% 20% Gross Profit 687 683 1% (5)% 6% Gross
Slide 10: International Segment Performance by Market
FIRST QUARTER FINANCIAL RESULTS International Segment Performance First Quarter Foreign 2023* 2022* Change Exchange Operational1 Total International $977.5 $947.5 3% (7)% 10% Australia 81.8 64.9 26% (6)% 32% Brazil 84.0 76.8 9% 5% 4% Canada 50.1 49.0 2% (6)% 8% Chile 39.2 41.2 (5)% —% (5)% China 102
Slide 11: Financial Guidance
FIRST QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2023 Revenue $8,575 to $8,725 Operational growth1 6% to 8% Adjusted cost of sales as a percentage of revenue2 29.5% to 30.0% Adjusted SG&A expenses2 $2,060 to $2,100 Adjus
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FIRST QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Three months ended March 31, 2023* 2022* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $290 $307 (6)% (3)% (3)% Diagnostics (companion animal) 88 92 (4)% (1)% (3)% Key
Slide 15: Zoetis
zoetis