Zoetis Inc. · NYSE:ZTS
Zoetis — 40th Annual J.P. Morgan Healthcare Conference (January 2022)
18 slides from Zoetis's conference presentation, Jan 10, 2022
Slide 1: Advancing Animal Care
Advancing Animal Care Kristin Peck | Chief Executive Officer
Slide 2: 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, future guidance, future operating models, expectations regarding products, product appro
Slide 3: Nurturing Our World and Humankind by Advancing Animal Care
Nurturing Our World and Humankind by Advancing Animal Care 3 Advancing Animal Care
Slide 4: The World's Leading Animal Health Company
The World’s Leading Animal Health Company We help predict, prevent, detect, and treat animal disease and illness We provide: • Medicines $7.725B ~$45B 2021 estimated revenue* total available market** • Vaccines • Diagnostics • Technologies ~14% 37% to veterinarians and average annual total Estimated
Slide 5: Positioned for Continued Above-Market Growth
Positioned for Continued Above-Market1 Growth By Species By Product Category By Geography Companion Animal #1 Other Pharma2 #1 North America #1 Cattle #1 Anti-Infectives #1 Latin America #1 Medicated Feed Additives Fish3 #1 #2 Asia #1 (MFA) Swine #1 Vaccines (Biologicals) #3 Eastern Europe #2 Poultr
Slide 6: Innovative, Diverse and Durable Portfolio
Innovative, Diverse and Durable Portfolio Broad portfolio with 1 ~300 13 ~1,000 Blockbusters representing new products and lifecycle product lines more than 1/3 of the innovations introduced in the across 8 species animal health industry last 5 years 2 3 44% 30 total revenue driven by year average m
Slide 7: Delivering Above-Market Operational Revenue Growth
Delivering Above-Market Operational Revenue Growth Operational revenue growth1 vs. market2 14-14.5%5 10-11%4 Market Revenue Growth Zoetis Revenue Growth 8% 8%3 8%3 8%3 6% 5% 4% 2% 2017 2018 2019 2020 Market Estimate 20215 Estimate 20214 1 Operational revenue growth (a non-GAAP financial measure) exc
Slide 8: Margin Expansion and Adjusted Net Income Growth Faster than Revenue
Margin Expansion and Adjusted Net Income Growth Faster than Revenue Adjusted net income and adjusted EBIT margin1 Adjusted Net Income ($USD M) Adjusted EBIT Margin 38% 37% 37% 2,400 35% $2,2132 44% 34% 39% $1,755 $1,844 1,900 34% $1,525 29% 1,400 $1,185 24% 19% 900 14% 400 9% 4% -100 2017 2018 2019
Slide 9: Key Companion Animal Trends
Key Companion Animal Trends Rising pet care spend driven by 1 More pets 2 More time with pets 3 More willingness to spend on pet health 4 Innovations and increasing medicalization driving market growth 9 Advancing Animal Care
Slide 10: Key Livestock Trends
Key Livestock Trends Emerging markets – including 1 China – increasing protein demand and consumption Productivity and efficiency needs 2 increasing around the globe in challenging market conditions 3 Increasing focus on sustainable food production 10 Advancing Animal Care
Slide 11: Five Strategic Priorities
Five Strategic Priorities Drive Innovative Enhance Lead in Digital Cultivate a Champion Growth Customer and Data High-Performing a Healthier, More Experience Analytics Organization Sustainable Future 11 Advancing Animal Care
Slide 12: Multiple Growth Pathways for 2022
Multiple Growth Pathways for 2022 • Cementing leadership in dermatology from strong direct-to-consumer advertising and digital marketing • Building our global market position in parasiticides • Continuing launch and growth in existing markets for mAbs for OA pain and anticipate U.S. approvals • Maki
Slide 13: Delivering On Our Long-Term Value Proposition to Shareholders
Delivering On Our Long-Term Value Proposition to Shareholders Grow revenue Grow adjusted Drive growth through Return excess in line with net income investments in capital to or faster than faster than innovation, R&D and shareholders the market revenue business development 13 Advancing Animal Care
Slide 14: Key Takeaways
Key Takeaways 1 Competing in resilient and essential $45 billion market for Animal Health 2 Delivering track record of strong and steady financial performance 3 Building market leadership and innovative science across continuum of care 4 Investing across diverse portfolio to scale for future growth
Slide 15: Thank You
THANK YOU 15
Slide 16: Reconciliation Of Reported Revenue To Non-GAAP Financial Measures
Reconciliation Of Reported Revenue To Non-GAAP Financial Measures Organic Change From Foreign Operational Operational in USD millions Revenue Prior Year Exchange Growth1 Acquisitions2 Growth3 2017 $5,307 9% 1% 8% 2018 5,825 10% —% 10% 2% 8% 2019 6,260 7% (3)% 10% 2% 8% 2020 6,675 7% (2)% 9% 1% 8% 1
Slide 17: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information
Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information Dollars in millions 2017 2018 2019 2020 Net Income attributable to Zoetis1 $864 $1,428 $1,500 $1,638 Purchase Accounting Adjustments2 51 119 156 142 Acquisition-Related Costs3 7 50 36 19 Certain Significant Items4 263 (72) 63 45 Adjust
Slide 18: Reconciliation Of Adjusted Net Income To Adjusted EBIT
Reconciliation Of Adjusted Net Income To Adjusted EBIT Dollars in millions 2017 2018 2019 2020 Adjusted Net Income attributable to $1,185 $1,525 $1,755 $1,844 Zoetis Net (loss)/income attributable to (2) (4) - (2) noncontrolling interests Adjusted Net Income Before Allocation $1,183 $1,521 $1,755 $1
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