Slide 1: First Quarter 2012 Earnings Teleconference
First Quarter 2012 Earnings Teleconference May 1, 2012
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations First 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 First Quarter 2012 Earnings
Slide 5: CEO Perspectives
CEO Perspectives ● Solid quarterly revenue performance despite product losses of exclusivity, driven by: Higher revenues in Emerging Markets, most notably in China, Mexico and Russia Growth from key branded biopharmaceutical products in developed markets Strong operational performance from the
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2012 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per-Share Amounts and Percentages) First Quarter 2012 2011 Change Reported Revenues $15,405 $16,502 (7%) Adjusted Income(1) 4,432 4,808 (8%) Adjusted Diluted EPS(1) 0.58 0.60 (3%) Reported Net Income(1) 1,794 2,222 (19%) Reported Diluted EPS(1) 0.24 0.
Slide 8: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) First Quarter 2012 2011 FX Impact Revenues $15,405 $16,502 ($57) -- Cost of Sales(1) 2,885 , 3,092 , 152 5% SI&A Expenses(1) 4,111 4,501 11 -- R&D Expenses(1) 1,755 2,017 -- -- -- A
Slide 9: Emerging Markets Biopharmaceutical Revenue Mix
Emerging Markets Biopharmaceutical Revenue Mix ($ Millions, Except Percentages) Emerging Markets Business Unit BRIC-MT(1) Biopharmaceutical $2,299, up 9% operationally vs. Q1 2011 $1,068, up 10% operationally vs. Q1 2011 Established Primary Care Primary Care +7% Products +4% +9% 26% 27% Established
Slide 10: BRIC-MT Biopharmaceutical Revenue Performance
BRIC-MT(1) Biopharmaceutical Revenue Performance ($ Millions, Except Percentages) Q1 2012 vs. Q1 2011 $1,068 Operational Growth (Decline) $1,014 $1,000 India 13% $800 Russia 64% $600 Turkey (35%) Mexico 21% $400 Brazil (7%) $200 China 33% $0 Q1 2011 Q1 2012 Volume Growth of 15% Partially Offset by P
Slide 11: 2012 Financial Guidance
2012 Financial Guidance(1)(2) $58.0 to $60.0 Billion Reported Revenues Previously $60.5 to $62.5 Billion 19.5% to 20.5% Adjusted Cost of Sales(3) as a Percentage of Revenues Previously 20.5% to 21.5% $16.3 to $17.3 Billion Adjusted SI&A Expenses(3) Previously $17.0 to $18.0 Billion Adjusted R&D Expe
Slide 12: Key Takeaways
Key Takeaways • Quarterly results reflect solid operational performance despite the loss of exclusivity of several products in various geographies, most notably Lipitor in the U.S. • Recent agreement to divest the Nutrition business demonstrates our commitment to unlock trapped value for our shareho
Slide 13: Q&A Session
First Quarter 2012 Earnings Teleconference Q&A Session May 1, 2012