Slide 1: First Quarter 2015 Earnings Teleconference
First Quarter 2015 Earnings Teleconference April 28, 2015
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations First Quarter 2015 Earnings
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information l 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 Ian Read Chairman and Chief Executive Officer First Quarter 2015 Earnings
Slide 5: CEO Perspectives
CEO Perspectives l Achieved solid revenue and EPS performance in first-quarter 2015 Ü Overall revenues grew 2% operationally, despite LOE and co-promotion headwinds Ü Emerging markets revenue grew 12% operationally l LOE impacts are anticipated to diminish after 2016 as our revenue base continues to
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2015 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) First Quarter 2015 2014 Change Reported Revenues(1) $10,864 $11,353 (4%) Adjusted Income(2) 3,196 3,665 (13%) Adjusted Diluted EPS(2) 0.51 0.57 (11%) Reported Net Income(1) 2,376 2,329 2% Reported Diluted EPS(1) 0.38
Slide 8: Impact of Foreign Exchange on Revenues and Select Adjusted Income Components
Impact of Foreign Exchange on Revenues(1) and Select Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) First Quarter 2015 2014 FX Impact Reported Revenues(1) $10,864 $11,353 ($739) » (7%) Cost of Sales(1) 1,807 1,986 283 » 14% SI&A Expenses(1) 3,078 3,020 156 »
Slide 9: Global Innovative Pharmaceutical (GIP) Selected Financial Highlights
Global Innovative Pharmaceutical (GIP) Selected Financial Highlights ($ Millions, Except Percentages) First Quarter l Q1 2015 revenues increased 7% operationally to $3,075M vs. Q1 2014 % Change 2015 2014 Ü Driven by operational growth in Lyrica Total Oper. primarily in the U.S. and Japan, Eliquis Re
Slide 10: Global Vaccines, Oncology and Consumer Healthcare (VOC) Selected Financial Highlights
Global Vaccines, Oncology and Consumer Healthcare (VOC) Selected Financial Highlights ($ Millions, Except Percentages) First Quarter l Q1 2015 revenues increased 29% operationally to $2,664M vs. Q1 2014 % Change Ü Primarily driven by continued strong Prevnar 13 2015 2014 Total Oper. uptake among adu
Slide 11: Global Established Pharmaceutical (GEP) Selected Financial Highlights
Global Established Pharmaceutical (GEP) Selected Financial Highlights ($ Millions, Except Percentages) First Quarter l Q1 2015 revenues declined 10% operationally to $5,014M vs. Q1 2014 % Change 2015 2014 Ü LOEs, lost alliance revenues and Lipitor in Total Oper. developed markets negatively impacted
Slide 12: Reconciliation of 2014 Results to Updated 2015 Financial Guidance
Reconciliation of 2014 Results to Updated 2015 Financial Guidance(1)(2) Impact of Impact of 2015 Financial Mid-January Mid-April Guidance at 2015 FX Impact of Full-Year 2015 FX 2015 Financial 2014 FX Rates Rates OPKO 2014 Rates vs. Mid- Guidance (Excl. OPKO Compared to Transaction January 2015 Trans
Slide 13: 2015 Financial Guidance
(1) 2015 Financial Guidance $44.0 to $46.0 billion Reported Revenues(2) (previously $44.5 to $46.5 billion) Adjusted Cost of Sales(2) as a % of Reported Revenues(2) 18.5% to 19.5% Adjusted SI&A Expenses(2) $12.8 to $13.8 billion Adjusted R&D Expenses(2) $6.9 to $7.4 billion Adjusted Other (Income) /
Slide 14: Key Takeaways
Key Takeaways Achieved solid Q1 2015 financial performance, primarily driven by strong uptake of Prevnar 13 in adults in the U.S., Eliquis globally, and Lyrica, Nexium 24HR and Ibrance in the U.S. Updated 2015 financial guidance solely to reflect the negative impact of recent changes in FX rates; do
Slide 15: First Quarter 2015 Earnings Teleconference Q&A Session
First Quarter 2015 Earnings Teleconference Q&A Session April 28, 2015