Zoetis Inc. · NYSE:ZTS
Zoetis — 43rd Annual J.P. Morgan Healthcare Conference (January 2025)
28 slides from Zoetis's conference presentation, Jan 13, 2025
Slide 1: A Best in Breed Growth Strategy
43rd Annual J.P. Morgan Healthcare Conference January 14, 2025 A Best in Breed Growth Strategy
Slide 2: Forward-Looking Statements
2 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: Presenters: Kristin Peck and Wetteny Joseph
3 Kristin Peck Chief Executive Officer Wetteny Joseph Executive Vice President and Chief Financial Officer 43rd Annual J.P. Morgan Healthcare Conference
Slide 4: What You Will Hear Today
4 What You Will Hear Today 43rd Annual J.P. Morgan Healthcare Conference Excellent 2024 performance Capitalizing on trends in a resilient and growing industry Diverse growth drivers Strong pipeline to drive new growth Creating shareholder value Achieved double- digit revenue growth through Q3, benef
Slide 5: Excellent 2024 Q3 Year-to-Date Results
5 Excellent 2024 Q3 Year-to-Date Results $6.9B $2.1B $4.52 12% operationally YoY1 16% operationally YoY1 18% operationally YoY1 Revenue Adj. Net Income2 Adj. Diluted EPS2 1 Operational results (a non-GAAP financia l measure) is defined as results excluding the impact of foreign exchange. Reconciliat
Slide 6: Unique Benefits of Animal Health Provide Differentiated Value
6 Unique Benefits of Animal Health Provide Differentiated Value 43rd Annual J.P. Morgan Healthcare Conference Direct access to decision-makers optimizes commercial model Self-pay model reduces impact of patent cliffs Cost-effective R&D drives attractive ROIC Diversity of species and markets provides
Slide 7: Human-Animal Bond Strong Driver of Future Growth
7 Human-Animal Bond Strong Driver of Future Growth 43rd Annual J.P. Morgan Healthcare Conference Younger, wealthier Gen Z and Millennial pet owners Stronger human- animal bond Increase in pet medicalization Pets living longer Utilization of convenient, alternative channels Significant unmet medical
Slide 8: Livestock Continues to Benefit From Key Growth Drivers
Livestock Continues to Benefit From Key Growth Drivers 43rd Annual J.P. Morgan Healthcare Conference8 Global population growth Rising middle class and growing demand for animal protein More investment in sustainable agriculture Short-term headwinds have dissipated
Slide 9: Animal Health Steady and Resilient Across Different Market Cycles
9 0% 2% 4% 6% 8% 10% 12% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Animal Health Steady and Resilient Across Different Market Cycles 43rd Annual J.P. Morgan Healthcare Conference Growing in Global Recession 5% average per year since 2008 Source: Vetnosis for his
Slide 10: Animal Health Poised for Continued Strong, Sustainable Growth
10 2023 2028 2033 Animal Health Poised for Continued Strong, Sustainable Growth Key market drivers in the next 5-10 years: • Deepening human-animal bond • Increasing medicalization and lifespan • Aging of pandemic-era pets • Expanding global population and animal protein demand • Innovating to treat
Slide 11: Zoetis Has Consistently Grown Faster Than the Animal Health Market
11 Zoetis Has Consistently Grown Faster Than the Animal Health Market 43rd Annual J.P. Morgan Healthcare Conference 4% 6% 5% 7% 4% 5% 2% 6% 10% 3% 6% 7%7% 7% 8% 8% 8% 8% 8% 8% 15% 8% 7% 12% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Industry operational revenue growth Zoetis org
Slide 12: Zoetis Revenue Growth Outpacing U.S. Vet Clinic Revenue and Visits
12 Zoetis Revenue Growth Outpacing U.S. Vet Clinic Revenue and Visits Industry Trends: • Sustained clinic revenue and revenue-per-visit growth despite declining visits post-pandemic • Pet owner demographic driving higher standard of care and preference for convenience • Pet owner willingness to pay
Slide 13: Simparica Trio Leads the Expanding Parasiticide Segment
13 Simparica Trio® Leads the Expanding Parasiticide Segment Parasiticides, the largest segment in Animal Health, are evolving toward triple combination oral products, where Simparica Trio leads with: • Market share in adult dogs and puppies implying long tail of full-life treatments • Significant fi
Slide 14: Dermatology Poised for Continued Strong, Sustainable Growth
14 ~$1.5B ~$3.5B ~$2.5B Dermatology Poised for Continued Strong, Sustainable Growth 43rd Annual J.P. Morgan Healthcare Conference 2023 2028 2033 11% CAGR 7% CAGR Expected Dermatology Market Growth ($B)1 1 Source: Zoetis internal estimates based on industry data for core animal health market. Apoquel
Slide 15: A Non-Linear Blockbuster Trajectory
15 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 20
Slide 16: OA Pain Market Poised for Continued Strong Growth
16 OA Pain Market Poised for Continued Strong Growth 43rd Annual J.P. Morgan Healthcare Conference $1.5-2B1 >$2B 2023 2028 2033 14% CAGR2 7% CAGR2 Expected OA Pain Market Growth ($B)1 1 Source: Zoetis internal estimates based on industry data for Pain Petcare market. 2 CAGR calculated from mid-point
Slide 17: Pipeline Drivers of Future Growth
17 Pipeline Drivers of Future Growth Geographic Expansion Extending the reach of our portfolio by entering new markets and tailoring solutions to regional requirements 43rd Annual J.P. Morgan Healthcare Conference Lifecycle Innovation Enhancing the value of existing products through new formulations
Slide 18: Continued Innovation Launching Across the Portfolio in 2025
18 Continued Innovation Launching Across the Portfolio in 2025 43rd Annual J.P. Morgan Healthcare Conference Geographic Expansion Lifecycle Innovation Core Portfolio Launches • Expanding Librela and Solensia • Expanding Simparica Trio and Revolution Plus® • Expanding Apoquel Chewable • Expanding key
Slide 19: Advancing Our Multi-Year Disruptive Innovation Roadmap
19 43rd Annual J.P. Morgan Healthcare Conference While Advancing Our Multi-Year Disruptive Innovation Roadmap 0 – 12 months Long-acting canine OA mAb Long-acting feline OA mAb HPAI poultry vaccine** 12 – 36 months Long-acting canine Cytopoint** Renal canine mAb therapy* Oncology canine mAb therapies
Slide 20: Long-Acting Portfolio Will Expand Market for Key Franchises
20 Long-Acting Portfolio Will Expand Market for Key Franchises Key Benefits: • Greater convenience for pet owners who prefer less frequent dosing schedules • Higher drug compliance, leading to better health outcomes and more predictable revenue • Distinctive market positioning with a stronger value
Slide 21: New Therapeutic Areas Expected to Significantly Expand Sources of Growth
21 New Therapeutic Areas Expected to Significantly Expand Sources of Growth 43rd Annual J.P. Morgan Healthcare Conference ~$300M ~$200M $0 $1,000 $2,000 $3,000 $4,000 2023 2033 ~$300M ~14001 $0 $500 $1,000 $1,500 $2,000 2023 2033 Renal Market Oncology Market2 ~$250M 0 250 500 750 1,000 2023 2033 Car
Slide 22: Our Continued Commitment to Value Creation
22 Our Continued Commitment to Value Creation Key components of our three to five-year outlook • Broaden existing key franchises • Innovate and build new franchise opportunities • Expand across attractive emerging markets • Accelerate commercial excellence to take share • Prioritize R&D investment i
Slide 23: Key Takeaways
23 Key Takeaways 43rd Annual J.P. Morgan Healthcare Conference Excellent 2024 performance Capitalizing on trends in a resilient and growing industry Diverse growth drivers Strong pipeline to drive new growth Creating shareholder value Achieved double- digit revenue growth through Q3, benefitting fro
Slide 24: Q&A
Q&A 43rd Annual J.P. Morgan Healthcare Conference24
Slide 25: Appendix
25 Appendix 43rd Annual J.P. Morgan Healthcare Conference
Slide 26: Reconciliation of Reported Growth to Non-GAAP Financial Measures
26 Reconciliation of Reported Growth to Non-GAAP Financial Measures YTD Through Third Quarter (Dollars in millions) 2024 2023 Change Foreign Exchange Operational1 Adjusted Net Income2 $2,061 $1,888 9% (7)% 16% Adjusted Diluted Earnings Per Share2 $4.52 $4.08 11% (7)% 18% 1 Operational growth (a non-
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
27 Reconciliation of GAAP to Non-GAAP Financial Measures Reported Revenue Growth to Organic Operational Growth (Dollars in millions) Revenue Change from Prior Year Foreign Exchange Operational Growth1 Acquisitions Operational Efficiency Initiative2 Organic Operational Growth3 2013 $4,561 5% (2)% 7%
Slide 28: Thank You
THANK YOU 28
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