Slide 1: Fourth Quarter 2010 Earnings Teleconference
Fourth Quarter 2010 Earnings Teleconference February 1, 2011
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Fourth Quarter 2010 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 President and Chief Executive Officer Fourth Quarter 2010 Earnings
Slide 5: CEO Perspectives
CEO Perspectives ● Met or exceeded all components of 2010 financial guidance ● Manage and focus capabilities, assets and talent to drive value ● Greater degree of certainty with regard to achieving 2012 adjusted diluted EPS(1) target of $2.25 to $2.35 ● Believe in the power of innovation and acceler
Slide 6: Opening Remarks
Opening Remarks Ian Read President and Chief Executive Officer Fourth Quarter 2010 Earnings
Slide 7: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Fourth Quarter 2010 Earnings
Slide 8: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per-Share Amounts) Fourth Quarter Full Year 2010 2009 Change 2010 2009 Change Reported Revenues $17,561 $16,537 6% $67,809 $50,009 36% Reported Net Income(1) 2,890 767 277% 8,257 8,635 (4%) Reported Diluted EPS(1) 0.36 0.10 260% 1.02 1.23 (17%) Adjuste
Slide 9: Quarterly Adjusted Income Components
Quarterly Adjusted Income(1) Components ($ Millions, Except Per-Share Amounts) Fourth Quarter 2010 2009 Change Revenues(1) $17,561 $16,520 6% Cost of Sales(1) 3,775 2,886 31% SI&A Expenses(1) 5,743 5,345 7% R&D Expenses(1) 2,800 2,799 -- Adjusted Total Costs(2) 12,318 11,030 12% Provision for Income
Slide 10: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components Compared with the Year-Ago Quarter ($ Millions, Except Percentages) Fourth Quarter 2010 FX Impact Revenues(1) $17,561 ($70) (1%) Cost of Sales(1) 3,775 120 4% SI&A Expenses(1) 5,743 (15) -- R&D Expenses(1) 2,800 (9) -- Adjusted Total Costs(
Slide 11: Biopharmaceutical Revenues
Biopharmaceutical Revenues ($ Millions) Fourth Quarter(1) Total Legacy Pfizer FX 2010 2009(1) Change Operational Operational Impact Growth Growth Primary Care $5,886 $6,546 (10%) -- (10%) (11%) Specialty Care 4,014 2,950 36% (2%) 38% (11%) Established Products 2,414 2,792 (14%) -- (14%) (10%) Emergi
Slide 12: Diversified Revenues
Diversified Revenues ($ Millions) Fourth Quarter Total Legacy Pfizer FX 2010 2009 Change Operational Operational Impact Growth Growth Animal Health $976 $901 8% -- 8% (4%) Consumer Healthcare 758 494 53% 1% 52% N/A Nutrition 492 191 158% 8% 150% N/A Capsugel 207 223 (7%) (2%) (5%) (5%) Total $2,433
Slide 13: Broader Portfolio Driving Revenue Expansion in Emerging Markets
Broader Portfolio Driving Revenue Expansion in Emerging Markets ($ Millions, Except Percentages) ~$900 ~$3,300 $3,000 ~$900 ● BRIC-MT(1) Markets ~$2,400 Diversified Contributed ~47% of Total Emerging ~$500 Markets Growth $2,000 Established ~$1,000 Products ● Legacy Pfizer ~$900 Biopharma Revenues in
Slide 14: 2010 Financial Guidance vs. Actual Results
2010 Financial Guidance(1)(2) vs. Actual Results Guidance Actual Reported Revenues $67.0 to $68.0 Billion $67.8 Billion (3) Adjusted Cost of Sales as a 18.5% to 19.0% 18.6% Percentage of Revenues Adjusted SI&A Expenses(3) $19.2 to $19.7 Billion $19.5 Billion Adjusted R&D Expenses(3) $9.1 to $9
Slide 15: 2011 Financial Guidance
2011 Financial Guidance(1)(2) Reported Revenues $66.0 to $68.0 Billion Adjusted Cost of Sales(3) as a Percentage of Revenues 19.5% to 20.5% Adjusted SI&A Expenses(3) $19.2 to $20.2 Billion Adjusted R&D Expenses(3) $8.0 to $8.5 Billion Adjusted Other (Income)/Deductions(3) Approximately $1.0 Billion
Slide 16: 2012 Financial Targets
2012 Financial Targets(1)(2) Reported Revenues $63.0 to $65.5 Billion Previously $65.2 to $67.7 Billion Adjusted SI&A Expenses(3) $17.5 to $18.5 Billion Adjusted R&D Expenses(3) $6.5 to $7.0 Billion Previously $8.0 to $8.5 Billion Adjusted Operating Margin(3) High 30%s to Low 40%s Adjusted Other (In
Slide 17: Key Takeaways
Key Takeaways Achieved all components of 2010 financial guidance Expect to complete ongoing business portfolio review during 2011 Anticipate repurchasing ~$5 billion of shares in 2011; $4 billion of authorization available for repurchase in 2012 and beyond Updated certain 2012 financial targets Re
Slide 18: Fourth Quarter 2010 Earnings Teleconference Q&A Session
Fourth Quarter 2010 Earnings Teleconference Q&A Session February 1, 2011