Zoetis Inc. · NYSE:ZTS
Zoetis — 42nd Annual J.P. Morgan Healthcare Conference (January 2024)
22 slides from Zoetis's conference presentation, Jan 8, 2024
Slide 1: Zoetis: Innovation Unleashed
Zoetis: Innovation Unleashed 42nd Annual JP Morgan Healthcare Conference
Slide 2: Forward-Looking Statements and 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, R&D costs; timing and likelihood of success;
Slide 3: What you will hear today
What you will hear today Investing in capabilities and Building on our Growing in a innovation that Creating leadership in dynamic and differentiate shareholder animal health resilient industry Zoetis value We have the right strategy, Animal health is an Continued investments in We are well-position
Slide 4: Our purpose and vision
Our purpose To nurture the world and humankind by advancing care for animals. Our vision To be the most trusted and valued animal health company, shaping the future of animal care through our innovation, customer obsession and purpose-driven colleagues.
Slide 5: Zoetis at a glance
Zoetis at a $8.1B 7 8 glance Annual revenue Major product categories Core animal species Revenue from 70+ 100+ 64% companion Years of experience Countries where Zoetis 29 animal products1 Revenue from products are sold Manufacturing sites 35% livestock products1 We provide: Medicines, Vaccines, Diag
Slide 6: Our strategic priorities
Our strategic priorities Deliver an exceptional Power our business Lead through innovation experience to delight through digital solutions across our diverse portfolio our customers and data insights Support a workplace Advance sustainability Perform with excellence where our colleagues in animal he
Slide 7: Growth opportunities for animal health
Growth opportunities for animal health Essential demand for Recession-resistant protein and petcare in nature of Animal the world today Health Unmet need for Pet owners animal care and willingness to pay for increases in treatment and care medicalization More investment in sustainable animal agricul
Slide 8: Animal health poised for strong, sustainable growth
Animal health poised for strong, sustainable growth Innovation and market expansion are Key market drivers in the increasing opportunities next 5-10 years Expected Market Growth ($B)1 • Increasing medicalization $70B-$85B • Growing human-animal bond • Innovating to treat chronic 1 $55B–$65B diseases
Slide 9: Proven track record of beating the market
Proven track record of beating the market Zoetis has consistently grown faster than the core animal health market 15% 10% 8% 8% 8% 8% 8% 8% 8% 7% 7% 7% 6% 6% 5% 5% 4% 4% 3% 2% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Zoetis organic operational revenue growth 1 Industry operational revenue g
Slide 10: Pet owners today are more focused on animal care than ever before
Pet owners today are more focused on animal care than ever before Younger and Stronger wealthier pet human-animal owners bond Increase Longer pet in pet lives medicalization New tech Improving vet developments clinic spend
Slide 11: Zoetis revenue growth has outpaced U.S. vet clinic revenue and visits
Zoetis revenue growth has outpaced U.S. vet clinic 4-Year CAGR revenue and visits 8.1% 15.6% 1 1 • Solid vet clinic growth drivers saw spike in 2021 due to pandemic, now normalizing to pre-pandemic levels Total Zoetis Zoetis U.S. Companion • Clinic revenue growth has remained strong even with recent
Slide 12: We have a proven track record of building billion-dollar franchises
We have a proven track record of building billion-dollar franchises Petcare innovation differentiates Zoetis Next Big Opportunity Zoetis 2022 revenues: Expected Zoetis peak annual revenue1: Dermatology Parasiticides Osteoarthritis Pain (OA) $1.3B $1.6B $1B+ vs. <$1M in 2013 vs. $373M in 2013 1 Zoeti
Slide 13: Driving the next billion-dollar opportunity: OA pain
Driving the next billion-dollar opportunity: OA pain Revolutionizing pain treatment for dogs and cats to drive outsized growth Global OA Pain Market Creating new market via innovation ($US B) • Librela launched in the U.S. in October 2023, confident supply outlook – building on strong momentum from
Slide 14: Livestock continues to benefit from key fundamental growth drivers
Livestock continues to benefit from key fundamental growth drivers Global Increased access population to animal protein growth globally Lack of relevance Short-term of alternative headwinds proteins have dissipated
Slide 15: Global demographic trends drive animal protein demand
Global demographic Meat Consumption (Billions of Kg) trends drive animal 12.0 vs. Global Population (Billions) 360 protein demand 10.0 330 9.7 308 8.2 Population growth, compounding with 8.0 310 GDP growth, will increase meat 287 7.8 7.4 consumption 6.0 6.5 7.0 6.1 246 260 4.0 223 210 Nearly 2 billi
Slide 16: Emerging tailwinds in Livestock expected to propel the market and Zoetis
Emerging tailwinds in Livestock expected to propel the market — and Zoetis Supporting market trends Shift from treatment to Aquaculture Global poultry prevention and Impact of growing double growth sustainability generics digits annually Industry-leading Significant investment Lessening impact of Zo
Slide 17: Beyond today's portfolio, our innovation roots run wide and deep
Beyond today’s portfolio, our innovation roots run wide and deep Today’s franchises Future growth builds on: demonstrate: Pipeline Product lifecycle Core R&D Strategic Expansion into delivery and enhancements expertise partnerships new species, new products and business claims, modalities developmen
Slide 18: We are investing in areas of unmet needs
We are investing in areas of unmet needs Renal Market Cardiology Market Oncology Market (US M$) (US M$) (US M$) ~$1,0001 ~$8001 ~$7001 ~$300 ~$300 ~$250 2022 2032E 2022 2032E 2022 2032E 1 Zoetis internal estimates
Slide 19: Our continued commitment to value creation
Our continued commitment to value creation Key components of our three to five-year outlook Grow revenue Invest in innovation Increase adjusted Return excess faster than the and growth net income faster capital to market capabilities than revenue shareholders • Broaden existing billion-dollar • Prio
Slide 20: Key Takeaways
Key Takeaways Investing in capabilities and Building on our Growing in a innovation that Creating leadership in dynamic and differentiate shareholder animal health resilient industry Zoetis value We have the right strategy, Animal health is an Continued investments in We are well-positioned to talen
Slide 21: Thank You
THANK YOU 21
Slide 22: Reconciliation Of GAAP To Non-GAAP Financial Measures
Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Revenue Growth to Organic Operational Growth Operational Organic Change from Foreign Operational Efficiency Operational (Dollars in millions) Revenue Prior Year Exchange Growth1 Acquisitions Initiative2 Growth3 2013 $4,561 5% (2)% 7% 201
Zoetis — 42nd Annual J.P. Morgan Healthcare Conference (January 2024) on 6ix