Zoetis Inc. · NYSE:ZTS

Zoetis — Q2 2015 Earnings Presentation

14 slides from Zoetis's earnings presentation, Aug 4, 2015

  1. Slide 1: Second Quarter 2015 Financial Results

    SECOND QUARTER 2015 FINANCIAL RESULTS August 4, 2015 1|

  2. 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, expectations regarding products, future use of cash and dividend payments, and other fut

  3. Slide 3: Juan Ramón Alaix, Chief Executive Officer

    JUAN RAMÓN ALAIX CHIEF EXECUTIVE OFFICER

  4. Slide 4: Key CEO Takeaways

    KEY CEO TAKEAWAYS STRONG SECOND QUARTER RESULTS  Diverse sources of revenue growth across species and geographies  Revenue growth driven by addition of Abbott Animal Health products, sales of APOQUEL and other new products  Demonstrated continued discipline on operating expenses  Grew adjusted n

  5. Slide 5: Paul Herendeen, Chief Financial Officer

    PAUL HERENDEEN CHIEF FINANCIAL OFFICER

  6. Slide 6: Income Statement Highlights

    INCOME STATEMENT HIGHLIGHTS Second Quarter 2015* 2014* Change Revenue $1,175 $1,158 1% Reported Net (Loss)/Income (37) 136 ** Reported Diluted (Loss)/Earnings $(0.07) $0.27 ** Per Share Adjusted Net Income1 216 189 14% Adjusted Diluted EPS1 $0.43 $0.38 13% * Millions of dollars, except per share dat

  7. Slide 7: Adjusted Income Statement Highlights

    ADJUSTED INCOME STATEMENT HIGHLIGHTS Second Quarter Foreign 2015* 2014* Change Operational2 Exchange Revenue $1,175 $1,158 1% (10)% 11% Adjusted Cost of Sales1 406 405 - (12)% 12% as a percent of revenue 34.6% 35.0% NA NA NA Adjusted SG&A Expenses1 343 364 (6)% (9)% 3% Adjusted R&D Expenses1 83 91 (

  8. Slide 8: International Market Revenue

    INTERNATIONAL MARKET REVENUE Second Quarter Foreign 2015* 2014* Change Operational1 Exchange Total International $622 $683 (9)% (15)% 6% Australia 41 45 (9)% (15)% 6% Brazil 67 83 (19)% (28)% 9% Canada 49 55 (11)% (11)% - China 29 23 26% - 26% France 27 34 (21)% (22)% 1% Germany 31 40 (23)% (19)% (4

  9. Slide 9: US Segment Performance

    US SEGMENT PERFORMANCE Second Quarter Foreign 2015* 2014* Change Operational1 Exchange Revenue $539 $459 17% - 17% Livestock 256 224 14% - 14% Companion Animal 283 235 20% - 20% Cost of Sales 127 106 20% - 20% Gross Profit 412 353 17% - 17% Gross Margin 76.4% 76.9% N/A - N/A Operating Expenses 93 95

  10. Slide 10: International Segment Performance

    INTERNATIONAL SEGMENT PERFORMANCE Second Quarter Foreign 2015* 2014* Change Operational1 Exchange Revenue $622 $683 (9)% (15)% 6% Livestock 434 479 (9)% (15)% 6% Companion Animal 188 204 (8)% (16)% 8% Cost of Sales 225 243 (7)% (11)% 4% Gross Profit 397 440 (10)% (17)% 7% Gross Margin 63.8% 64.4% N/

  11. Slide 11: 2015 – 2017 Financial Guidance

    2015 – 2017 FINANCIAL GUIDANCE Selected Line Items 2015 2016 2017 (millions of dollars, except per share amounts) Revenue $4,700 to $4,775 $4,650 to $4,800 $4,850 to $5,050 Operational growth 6.0% to 7.5% (1%) to 2% 3% to 7% Adjusted cost of sales as a 35.5% to 36.0% 33% to 34% 32% to 33% percentage

  12. Slide 12: One Time Costs 2015 - 2017

    ONE TIME COSTS 2015 - 2017 Pre-tax Charges 2015 - 2017 (millions of dollars) Stand-up costs, acquisition-related costs and other $180 to $210 Operational efficiency initiative (excluding non-cash) $340 to $400 Supply network strategy (excluding non-cash) $60 to $100 Certain significant items and acq

  13. Slide 13: Q&A

    Q&A

  14. Slide 14: Slide 14

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