Zoetis Inc. · NYSE:ZTS
Zoetis — William Blair Growth Conference (2016)
17 slides from Zoetis's conference presentation, 2016
Slide 1: Leadership & Growth in Animal Health
LEADERSHIP & GROWTH IN ANIMAL HEALTH JUAN RAMÓN ALAIX CHIEF EXECUTIVE OFFICER 1
Slide 2: Forward-Looking Statements; 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, expectations regarding products, future use of
Slide 3: Powerful Trends Creating Demand
POWERFUL TRENDS CREATING DEMAND PREDICTABLE, SUSTAINABLE AND FUNDAMENTAL ECONOMIC DRIVERS POPULATION A GROWING INCREASING GROWTH MIDDLE CLASS URBANIZATION 3
Slide 4: Unique Customers and Needs
UNIQUE CUSTOMERS AND NEEDS CUSTOMER IS BOTH THE DECISION-MAKER AND THE PAYER • Business Model Built on Customer Relationships • Minimal Third-Party Payer Relevance • Limited Generic Competition VETERINARIANS PRODUCERS 4
Slide 5: Addressing Customer Needs
ADDRESSING CUSTOMER NEEDS ZOETIS ADVANTAGE GOES BEYOND PRODUCTS AND SERVICES PROVIDER/ INDUSTRY COMPETITIVE VETERINARIAN NEEDS VALUE ADVANTAGE • More efficient • Vaccines, medicines and • Diverse Portfolio production feed additives to prevent to drive profitability and treat disease • Global Leaders
Slide 6: Zoetis Leads Animal Health Industry
ZOETIS LEADS ANIMAL HEALTH INDUSTRY 2015 AH REPORTED SALES (INCLUDING NON-AH SALES) 2015 Reported Sales (US$M) $4.8B $3.3B $3.2B $2.8B $1.7B $1.5B $1.0B $0.9B $0.5B $0.4B Source: Vetnosis Executive’s Guide 2016 On December 15th, 2015 Sanofi (Merial) and Boehringer announced they had entered exclusiv
Slide 7: Worldwide Market Leader
1 WORLDWIDE MARKET LEADER WELL POSITIONED ACROSS MULTIPLE GEOGRAPHIES, CATEGORIES & SPECIES MARKET POSITION MARKET POSITION MARKET POSITION BY GEOGRAPHY BY PRODUCT CATEGORY BY SPECIES North America #1 Anti-Infectives #1 Cattle #1 Latin America #1 Other Pharma2 #1 Swine #1 Asia #1 Medicated Feed Addi
Slide 8: Continuous Innovation Builds Enduring Brands
CONTINUOUS INNOVATION BUILDS ENDURING BRANDS PLANNING FOR A CONTINUOUS FLOW OF PRODUCTS 15+ YEARS YEAR S <10 YEARS 25+ YEARS 60+ YEARS 8
Slide 9: Our Long-Term Value Proposition to Shareholders
OUR LONG-TERM VALUE PROPOSITION TO SHAREHOLDERS GROW REVENUE IN LINE WITH OR FASTER THAN THE MARKET GROW ADJUSTED NET INCOME1 FASTER THAN REVENUE TARGET VALUE-ADDED INVESTMENT OPPORTUNITIES RETURN EXCESS CAPITAL TO SHAREHOLDERS 1 Adjusted Net Income is a non-GAAP measure and defined as the correspon
Slide 10: Industry Leading Revenue Growth with Improving Margins
INDUSTRY LEADING REVENUE GROWTH WITH IMPROVING MARGINS 1 ZTS Revenue Operational Growth Rates • We have delivered consistent 2 & Adjusted EBIT Margin performance, outpacing the industry 34% 31% • 2015 revenue of $4.8 billion, an 8% 28% 1 increase on an operational basis 24% 25% 22% 19% • Adjusted EB
Slide 11: Investing in Value Creation and Growth
INVESTING IN VALUE CREATION AND GROWTH • We’ll continue investing in internal R&D programs with the most significant market potential • We will use our capital to support the launch of new key products • Pursue further business development activities to add complementary products, businesses or capa
Slide 12: Depth and Breadth of R&D Portfolio Ensures Sustained Delivery of Value
DEPTH AND BREADTH OF R&D PORTFOLIO ENSURES SUSTAINED DELIVERY OF VALUE TECHNOLOGY BIOPHARMACEUTICALS VACCINES PHARMACEUTICALS CLINICAL AREA CROSS SPECIES SPECIES SPECIFIC Parasiticides Companion Animal Livestock Complementary Infectious Disease • Allergy/Dermatology • Reproduction Solutions • Preven
Slide 13: Companion Animal Investments Coming to Fruition
COMPANION ANIMAL INVESTMENTS COMING TO FRUITION • Full supply of Apoquel and launching in new markets • Received conditional approval in U.S. for our Canine Atopic Dermatitis Immunotherapeutic (IL-31) • Launched Simparica, a new product to help us compete in market for oral flea and tick products, i
Slide 14: Multiple Forms of Business Development
MULTIPLE FORMS OF BUSINESS DEVELOPMENT SPECIES STRATEGY Positions Zoetis with products Classic "bolt-on" to companion for fastest growing source of animal portfolio animal protein RATIONALE • Expands Zoetis’ companion animal • Strategic fit that brings Zoetis an product portfolio animal health leade
Slide 15: 2015 Capital Allocation for Growth & Creation of Shareholder Value
2015 – CAPITAL ALLOCATION FOR GROWTH & CREATION OF SHAREHOLDER VALUE $360M Adjusted R&D $224M CapEx Business $1.0B ~$1.6B Investment1 Development INTERNAL AND EXTERNAL INVESTMENT $168M Dividends Share $200M ~$370M Repurchases EXCESS CAPITAL RETURNED TO SHAREHOLDERS 1 Adjusted research and developmen
Slide 16: Key Takeaways
KEY TAKEAWAYS • World leader in attractive, growing and predictable market for animal health products and solutions • Business model, characteristics and resources to continue delivering results • Well-positioned for continued success and shareholder value creation 16
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