Slide 1: Fourth Quarter 2018 Earnings Teleconference
Fourth Quarter 2018 Earnings Teleconference January 29, 2019
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Fourth Quarter 2018 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 about, among other things, our anticipated future operating and financial performance, business plans and prospects, in-line products and product candid
Slide 4: Opening Remarks
Opening Remarks Albert Bourla Chief Executive Officer Fourth Quarter 2018 Earnings
Slide 5: 2018 Performance
2018 Performance Pfizer had a solid year in 2018, with revenues up 2% operationally, reflecting: Continued growth in several important medicines and vaccines, emerging markets, and biosimilars Offsetting some of this growth was $1.7 billion in LOE impacts and decreases in our Legacy Establishe
Slide 6: 2018 Performance (Continued)
2018 Performance, (Continued) Pfizer Essential Health revenues declined in 2018, but with strong growth in emerging markets and biosimilars Emerging markets revenue was up 11% operationally in 2018, driven by Lipitor, Norvasc and Sterile Injectables Biosimilars grew 41% operationally in 2018 •
Slide 7: Pipeline Update
Pipeline Update Received 7 key approvals in 2018, including both new molecular entities and line extensions Key milestones achieved since our previous earnings call include: FDA accepted our NDA filings for tafamidis in ATTR-cardiomyopathy; PDUFA date is in July 2019 FDA approved Lorbrena (A
Slide 8: Our Strategy for Growth
Our Strategy for Growth Following the impact of the upcoming Lyrica LOE in the U.S., we expect to enter an era of sustained top-line growth, with the potential for even higher growth rates on the bottom-line, driven by: Macro trends potentially increasing demand for access to our innovative and
Slide 9: Financial Review
Financial Review Frank D’Amelio Chief Financial Officer and Executive Vice President, Business Operations & Global Supply Fourth Quarter 2018 Earnings
Slide 10: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) Fourth Quarter 2018 2017 Change Revenues $13,976 $13,703 2% Reported Net Income(1) (394) 12,274 * Reported Diluted EPS/(LPS)(1) (0.07) 2.02 * Adjusted Income(1) 3,802 3,772 1% Adjusted Diluted EPS(1) 0.64 0.62 3% Q4 2
Slide 11: Impact of Foreign Exchange on Revenues and Select Adjusted Income Components
Impact of Foreign Exchange on Revenues and Select Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Fourth Quarter 2018 2017 FX Impact Revenues $13,976 $13,703 ($383) (3%) Adjusted Cost of Sales(1) 3,044 3,059 310 10% COS as a Percentage of Revenues 21.8% 22.3%
Slide 12: 2018 Financial Guidance
2018 Financial Guidance(1) Guidance Results Revenues $53.0 to $53.7 billion $53.6 billion Adjusted Cost of Sales(1) as a Percentage of Revenues 20.8% to 21.3% 20.7% Adjusted SI&A Expenses(1) $14.0 to $14.5 billion $14.2 billion Adjusted R&D Expenses(1) $7.7 to $8.1 billion $8.0 billion Adjus
Slide 13: 2019 Financial Guidance
2019 Financial Guidance(1) Revenues $52.0 to $54.0 billion Adjusted Cost of Sales(1) as a Percentage of Revenues 20.8% to 21.8% Adjusted SI&A Expenses(1) $13.5 to $14.5 billion Adjusted R&D Expenses(1) $7.8 to $8.3 billion Adjusted Other (Income)/Deductions(1) Approximately $100 million of income Ef
Slide 14: 2019 Revenue and Adjusted Diluted EPS Guidance Bridge
2019 Revenue and Adjusted Diluted EPS(1) Guidance Bridge Impact of Mid- Full-Year 2018 2018 (Gains) on 2018 Results Excluding 2019 Financial January 2019 FY 2019 Equity Guidance at Gains on Equity 2018 FX Rates Guidance Results Investments FX Rates Compared to Investments 2018 FX Rates Revenues ($ i
Slide 15: Key Takeaways
Key Takeaways Delivered strong Q4 2018 financial results, with 5% operational Revenue growth and 3% Adjusted diluted EPS(1) growth compared to the same period last year Issued 2019 financial guidance ranges, the midpoints of which imply comparable operational performance for Revenues and Adjusted di
Slide 16: Q&A Session
Fourth Quarter 2018 Earnings Teleconference Q&A Session January 29, 2019
Slide 17: Footnotes (1 of 2)
Footnotes (1 of 2) Financial Definitions Footnotes (1) Reported net income/(loss) is defined as net income/(loss) attributable to Pfizer Inc. in accordance with U.S. GAAP. Reported diluted earnings per share (EPS) and reported loss per share (LPS) are defined as diluted EPS or LPS attributable to Pf
Slide 18: Footnotes (2 of 2)
Footnotes (2 of 2) 2018 Financial Guidance Footnotes (4) The 2018 financial guidance reflected the following: • Pfizer does not provide guidance for GAAP Reported financial measures (other than revenues) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparab