Zoetis Inc. · NYSE:ZTS
Zoetis — Shareholder Meeting (2015)
21 slides from Zoetis's shareholder meeting presentation, Sep 6, 2015
Slide 1: 2015 Annual Meeting of Shareholders
2015 ANNUAL MEETING OF SHAREHOLDERS SHORT HILLS, NEW JERSEY
Slide 2: Please take your seats and silence all devices
PLEASE TAKE YOUR SEATS AND SILENCE ALL DEVICES 2
Slide 3: 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, expectations regarding products, future use of cash and dividend payments, and other fut
Slide 4: Mike McCallister
MIKE MCCALLISTER NON-EXECUTIVE CHAIRMAN OF THE BOARD OF DIRECTORS 4
Slide 5: Heidi Chen
HEIDI CHEN EXECUTIVE VICE PRESIDENT & GENERAL COUNSEL, ZOETIS 5
Slide 6: A Quorum Is Present
A QUORUM IS PRESENT 6
Slide 7: Item 1: Election of Class II Directors
ITEM 1: ELECTION OF CLASS II DIRECTORS • Sanjay Khosla • Dr. Willie M. Reed • William C. Steere, Jr. 6
Slide 8: Item 2: Advisory Vote to Approve Executive Compensation
ITEM 2: ADVISORY VOTE TO APPROVE THE COMPANY’S EXECUTIVE COMPENSATION 7
Slide 9: Item 3: Ratification of KPMG LLP as Independent Auditor
ITEM 3: RATIFICATION OF KPMG LLP AS THE INDEPENDENT PUBLIC ACCOUNTING FIRM FOR YEAR-ENDED DECEMBER 31, 2015 8
Slide 10: The Chairman's Report and Preliminary Voting Results
THE CHAIRMAN’S REPORT AND PRELIMINARY VOTING RESULTS 10
Slide 11: Adjournment of the Business Portion of the Meeting
ADJOURNMENT OF THE BUSINESS PORTION OF THE MEETING 11
Slide 12: Juan Ramón Alaix, Chief Executive Officer
JUAN RAMÓN ALAIX CHIEF EXECUTIVE OFFICER, ZOETIS 12
Slide 13: 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 CAPITAL TO SHAREHOLDERS 1 Adjusted Net Income is a non-GAAP measure and defined as the corresponding re
Slide 14: Grow Revenue in Line With or Faster Than the Market
GROW REVENUE IN LINE WITH OR FASTER THAN THE MARKET • 2014 revenue was $4.8 billion, Annual Revenue Growth Rates a 5% increase on a reported basis – 7% excluding impact of foreign currencies • We have delivered consistent performance, outpacing the market for the last four years 1 1 IFAH and Vetnosi
Slide 15: Grow Adjusted Net Income Faster Than Revenue
GROW ADJUSTED NET INCOME FASTER THAN REVENUE • Grew adjusted net income1 13% Annual EBIT Performance operationally in 2014 • Increased adjusted EBIT as a percent of revenue from 19% in 2011 to 25% in 2014 • Close to completing the build-out of our own infrastructure and systems • Continue to exercis
Slide 16: Target Value-Added Investment Opportunities
TARGET VALUE-ADDED INVESTMENT OPPORTUNITIES • Received more than 180 product approvals in 2014, including Apoquel • Regulatory filings for Sarolaner and the IL-31 antibody therapy • Purchased animal health assets of Abbott, our largest acquisition to-date 16
Slide 17: Return Capital to Shareholders
RETURN CAPITAL TO SHAREHOLDERS Comparison of Cumulative Total Return • Quarterly dividend payments, which increased by 15% for 2015 $160 • $500 million Share Repurchase $150 Program $140 $130 • Significant appreciation in Total Shareholder Returns $120 $110 $100 $90 Zoetis Inc. 17
Slide 18: Competitive Advantage
COMPETITIVE ADVANTAGE THREE INTERCONNECTED CAPABILITIES UNDERPIN BUSINESS MODEL HIGH-QUALITY DIRECT SALES INNOVATION PRODUCTS 18
Slide 19: Path for Continued Leadership
PATH FOR CONTINUED LEADERSHIP CORE BELIEFS & GROWTH STRATEGY PROVIDE ROADMAP FOR SUCCESS LEVERAGE OUR CAPABILITIES • Invest in innovation to extend our product portfolio • Provide high-quality products and improve margins EXTEND OUR REACH • Further penetrate emerging markets • Remain the partner of
Slide 20: Your Questions
YOUR QUESTIONS 20
Slide 21: 21
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