Slide 1: Second Quarter 2009 Earnings Teleconference
Second Quarter 2009 Earnings Teleconference July 22, 2009
Slide 2: Introduction
Second 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
Slide 4: Opening Remarks
Second Quarter 2009 Earnings Teleconference Opening Remarks Jeff Kindler Chairman & Chief Executive Officer
Slide 5: Financial Review
Second Quarter 2009 Earnings Teleconference Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer
Slide 6: Income Statement Highlights
Second-Quarter 2009 Income Statement Highlights ' ($ Millions, Except Per-Share Amounts) Second Quarter 2009 2008 Change Reported Revenues $10,984 $12,129 (9%) Reported Net Income(1) 2,261 2,776 (19%) Reported Diluted EPS(1) 0.34 0.41 (17%) Adjusted Income(2) 3,249 3,698 (12%) Adjusted Diluted EPS(2
Slide 7: Quarterly Adjusted Income Components
Second-Quarter 2009 Quarterly Adjusted Income(1) Components ' ($ Millions, Except Per-Share Amounts) Second Quarter 2009 2008 Change Revenues(1) $10,966 $12,075 (9%) Cost of Sales(1) 1,686 2,036 (17%) SI&A Expenses(1) 3,264 3,696 (12%) R&D Expenses(1) 1,656 1,869 (11%) Adjusted Total Costs(2) 6,606
Slide 8: Factors Impacting Adjusted Income Components
Second-Quarter 2009 Factors Impacting Adjusted Income(1) Components ' Compared with the Year-Ago Quarter ($ Millions, Except Per-Share Amounts) Second Quarter Adjusted(1) Operational Impact Fx Impact Revenues(1) $10,966 ($40) -- ($1,070) (9%) Cost of Sales(1) 1,686 (87) (4%) (264) (13%) SI&A Expense
Slide 9: Business Revenues
Second-Quarter 2009 Business Revenues ' ($ Millions) Second Quarter Fx Operational 2009 2008 Change Impact Impact Primary Care $5,135 $5,487 (6%) (7%) 1% Specialty Care 1,416 1,485 (5%) (7%) 2% Oncology 352 384 (8%) (12%) 4% Established Products 1,634 2,038 (20%) (7%) (13%) Emerging Markets 1,526 1,
Slide 10: Progress On Cost Reduction Initiatives
Second-Quarter 2009 Progress On Cost Reduction Initiatives ' Net cost reductions totaling approx. $410 million realized in Q209 Net cost reduction target of $2 billion to be Period Cost Reduction realized by 2011 — 2007-2011 total net cost reduction from multiple FY2007 $600 million(1) programs
Slide 11: 2009 Financial Guidance
Second-Quarter 2009 2009 Financial Guidance ' Guidance(3), (5) Reported Revenues $45.0 to $46.0 Billion (previously $44.0 to $46.0 Billion) Adjusted Cost of Sales(2) as a 14.5% to 15.5% Percentage of Revenues Adjusted SI&A Expenses(2) $13.4 to $13.8 Billion (previously $13.5 to $14.0 Billion) Adjust
Slide 12: Pending Wyeth Acquisition Planning Update
Second-Quarter 2009 Pending Wyeth Acquisition Planning Update ' Progress to Date Work to be Completed Filed HSR notification in U.S. Continue to execute on 2009 goals Completed regulatory submissions in Obtain regulatory approvals EU, China, Australia, Canada – FTC, Australia, Canada, China
Slide 13: Key Takeaways
Second-Quarter 2009 Key Takeaways ' Results consistent with our expectations in a challenging macroeconomic and operating environment – On a constant currency basis, revenues were flat vs. Q208 Net cost reductions of approximately $410 million recognized from operational improvements – Investmen
Slide 14: Q&A Session
Second Quarter 2009 Earnings Teleconference Q&A Session July 22, 2009
Slide 15: Second Quarter 2009 Earnings Teleconference
Second Quarter 2009 Earnings Teleconference July 22, 2009