Slide 1: Third Quarter 2012 Earnings Teleconference
Third Quarter 2012 Earnings Teleconference November 1, 2012
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Third Quarter 2012 Earnings
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 ar
Slide 4: Opening Remarks
Opening Remarks Ian Read Chairman and Chief Executive Officer Third Quarter 2012 Earnings
Slide 5: CEO Perspectives
CEO Perspectives ● Quarterly financial performance impacted by significant product losses of exclusivity, notably Lipitor in all major markets, partially mitigated by: Growth from key in-line products, including Lyrica and Celebrex globally and Viagra in the U.S. Emerging Markets operational rev
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Third Quarter 2012 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per-Share Amounts and Percentages) Third Quarter 2012 2011 Change Reported Revenues $13,976 $16,609 (16%) Adjusted Income(1) 3,949 4,696 (16%) Adjusted Diluted EPS(1) 0.53 0.60 (12%) Reported Net Income(1) 3,208 3,738 (14%) Reported Diluted EPS(1) 0.43
Slide 8: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Third Quarter 2012 2011 FX Impact Revenues $13,976 $16,609 ($699) (4%) Cost of Sales(1) 2,565 3,057 264 9% SI&A Expenses(1) 3,729 4,397 156 4% R&D Expenses(1) 1,935 2,023 20 1% Tota
Slide 9: Emerging Markets Biopharmaceutical Revenue Mix
Emerging Markets Biopharmaceutical Revenue Mix ($ Millions, Except Percentages) Emerging Markets Business Unit BRIC-MT(1) Biopharmaceutical $2,389, up 6% operationally vs. Q3 2011 $1,101, up 9% operationally vs. Q3 2011 Established Primary Care Primary Care Products +12% +25% +7% 26% 28% Established
Slide 10: BRIC-MT Biopharmaceutical Revenue Performance
BRIC-MT(1) Biopharmaceutical Revenue Performance ($ Millions, Except Percentages) Operational Growth / (Decline) $1,200 Q3 2012 vs. YTD 2012 vs. $1,116 $1,101 Q3 2011 YTD 2011 India 5% 10% $1,000 Russia 34% 42% $800 Turkey (31%) (14%) $600 Mexico 20% 4% $400 Brazil 3% 9% China 25% 31% $200 BRIC-MT(1
Slide 11: 2012 Financial Guidance
2012 Financial Guidance(1)(2) $58.0 to $59.0 Billion Reported Revenues Previously $58.0 to $60.0 Billion 18.7% to 19.2% Adjusted Cost of Sales(3) as a Percentage of Revenues Previously 19.5% to 20.5% $16.3 to $16.8 Billion Adjusted SI&A Expenses(3) Previously $16.3 to $17.3 Billion $7.0 to $7.25 Bil
Slide 12: Key Takeaways
Key Takeaways • Quarterly results reflect the loss of exclusivity of several products in various geographies, notably Lipitor in all major markets Continue to mitigate the impact of major product LOEs with expense discipline and share repurchases • Received regulatory approval for Bosulif in the U
Slide 13: Third Quarter 2012 Earnings Teleconference Q&A Session
Third Quarter 2012 Earnings Teleconference Q&A Session November 1, 2012