Zoetis Inc. · NYSE:ZTS
Zoetis — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
17 slides from Zoetis's conference presentation, Jan 14, 2020
Slide 1: Leading Animal Health Across the Continuum of Care
LEADING ANIMAL HEALTH ACROSS THE CONTINUUM OF CARE 1 1
Slide 2: Zoetis at a glance
27 8 6.3 CORE MANUFACTURING SITES ANIMAL SPECIES $ APPROXIMATE R&D COLLEAGUES 300 APPROXIMATE NUMBER OF PRODUCT LINES BILLION ANNUAL REVENUE 1,100 WE PROVIDE MEDICINES VACCINES DIAGNOSTICS 65+ 7 MAJOR PRODUCT GENETIC TESTS BIODEVICES YEARS OF CATEGORIES PRECISION LIVESTOCK FARMING EXPERIENCE MARKET
Slide 3: Zoetis Vision and Strategy
ZOETIS ZOETIS:VISION AND VISION STRATEGY AND STRATEGY REIMAGINING ANIMAL HEALTH VISION Across the Continuum of Care Champion a Drive Enhance Lead in Digital Cultivate a STRATEGIC PRIORITIES Healthier, More Innovative Customer and Data High-performing Sustainable Growth Experience Analytics Organizat
Slide 4: Zoetis: Leading Animal Health Across the Continuum of Care
ZOETIS: LEADING ANIMAL HEALTH ACROSS THE CONTINUUM OF CARE • Global leader in an attractive market with sustainable growth drivers and opportunities $6.3B 10% OPERATIONAL 1 • Diverse and durable portfolio with proven 2019 REVENUE REVENUE GROWTH strength in innovation • Track record of delivering str
Slide 5: Diverse, Durable and Innovative Portfolio
DIVERSE, DURABLE AND INNOVATIVE PORTFOLIO DRIVEN BY CONTINUOUS PRODUCT AND LIFECYCLE INNOVATION • Broad portfolio with ~300 product lines across 8 species 13 BLOCKBUSTERS¹ • Leading brands including 13 blockbusters¹ representing more than 1/3 of those in the industry • Diversified revenue streams wi
Slide 6: Durable and Diverse Portfolio
DURABLE AND DIVERSE PORTFOLIO PLANNING FOR A CONTINUOUS FLOW OF PRODUCTS <10 10+ 25+ 60+ YEARS YEARS YEARS YEARS ® ® 6 The average age of our top 24 products is approx. 29 years1 1 Based on 2019 sales data. Age refers to the number of years a product has been commercially available. Top products eac
Slide 7: Our Competitive Advantages
OUR COMPETITIVE ADVANTAGES 1 Leadership in Innovation 2 Direct Access to Customers 3 High Quality Manufacturing & Supply 4 Diverse Global Portfolio 5 Track Record of Execution 6 Results-Driven Culture 7 Financial Strength and Investment 7 Focus 7
Slide 8: Innovating Across the Continuum of Care
INNOVATING ACROSS THE CONTINUUM OF CARE Data Analytics Vaccines, Robotics & Sensors Diagnostics & Automation Medicines Genetics 8 8
Slide 9: High-Quality Products, Delivered by Our World-Class Manufacturing Operations
HIGH-QUALITY PRODUCTS, DELIVERED BY OUR WORLD-CLASS MANUFACTURING OPERATIONS Tallaght, Ireland Chicago Heights, IL Overhalla, Norway Charles City, IA London, Ontario, Canada Klofta, Norway Eagle Grove, IA Farum, Denmark Kalamazoo, MI LLN, Belgium Weibern, Austria Jilin, China Lincoln, NE Willow Isla
Slide 10: Worldwide Market Leader
WORLDWIDE MARKET LEADER WELL-POSITIONED TO DRIVE CONTINUED ABOVE-MARKET GROWTH1 ACROSS ANIMAL HEALTH 2019 MARKET POSITION BY SPECIES BY PRODUCT CATEGORY BY GEOGRAPHY #1 Companion Animal #1 Other Pharma2 #1 North America Latin America #1 Cattle #1 Anti-Infectives #1 Asia #2 Swine #1 Medicated Feed Ad
Slide 11: Delivering Sustained Above-Market Operational Revenue Growth
DELIVERING SUSTAINED ABOVE-MARKET OPERATIONAL REVENUE GROWTH OPERATIONAL REVENUE GROWTH¹ (VS. MARKET²) Market Revenue Growth Zoetis Revenue Growth † * 8% 8% 8% 8% 8% * 7% 7% 7% 6% 6% 5% 4% 4% 2 2% 11 1 Operational revenue growth (a non-GAAP financial measure) excludes the impact of foreign exchange
Slide 12: Margin Expansion and Adjusted Net Income Growth Faster Than Revenue
MARGIN EXPANSION AND ADJUSTED NET INCOME GROWTH FASTER THAN REVENUE ADJUSTED NET INCOME AND ADJUSTED EBIT MARGIN1 Adjusted Net Income ($M) Adjusted EBIT Margin 37% 35% $1,755 34% 32% $1,525 28% $1,185 25% 24% $975 $889 $790 $709 12 1Adjusted net income (a non-GAAP financial measure) is defined as re
Slide 13: Capital Allocation Focused on Driving Growth and Shareholder Returns
CAPITAL ALLOCATION FOCUSED ON DRIVING GROWTH AND SHAREHOLDER RETURNS 2019 ~$455M1 ~$460M ~$195M ~$1.1B Adjusted R&D Capital Business INTERNAL & EXTERNAL Investment Expenditures Development INVESTMENTS In millions ($) Dividends Share Repurchases $500 $698 $626 ~$940M $200 $300 CAPITAL RETURNS TO $98
Slide 14: Delivering on Our Long-Term Value Proposition to Shareholders
DELIVERING ON OUR LONG-TERM VALUE PROPOSITION TO SHAREHOLDERS GROW REVENUE IN LINE WITH GROW ADJUSTED NET INCOME1 OR FASTER THAN THE MARKET FASTER THAN REVENUE INVEST IN INNOVATION AND RETURN EXCESS CAPITAL TARGETED GROWTH OPPORTUNITIES TO SHAREHOLDERS 14 1Adjusted Net Income is a non-GAAP measure a
Slide 15: Animal Health Is an Attractive Market with Sustainable Growth Drivers
ANIMAL HEALTH IS AN ATTRACTIVE MARKET WITH SUSTAINABLE GROWTH DRIVERS $40+ BILLION ADDRESSABLE MARKET OPPORTUNITY1 ADDRESSABLE MARKET SEGMENTS PREDICTABLE AND SUSTAINABLE TRADITIONAL EXPANDING GROWTH DRIVERS • Medicines2 • Diagnostics • Growing global population • Vaccines • BioDevices • Rising midd
Slide 16: Key Trends Shaping the Future of Animal Health
KEY TRENDS SHAPING THE FUTURE OF ANIMAL HEALTH LIVESTOCK COMPANION ANIMALS Productivity Precision Labor Humanization Pet owner and efficiency livestock Specialty care shortages of pets engagement needs farming Emerging Food safety New care Environmental Innovative Vet practice infectious and animal
Slide 17: www.zoetis.com
www.zoetis.com zoetis.com
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