Slide 1: Third Quarter 2010 Earnings Teleconference
Third Quarter 2010 Earnings Teleconference November 2, 2010 Third Quarter 2010 Earnings
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Third 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 Jeff Kindler Chairman & Chief Executive Officer Third Quarter 2010 Earnings
Slide 5: Recent Business Development Actions Strengthen Pfizer's Position in Strategic Growth Areas
Recent Business Development Actions Strengthen Pfizer’s Position in Strategic Growth Areas Complements current portfolio in pain – ‘invest to win’ therapeutic area Leader in new formulations of pain treatment Strengthens presence in growing orphan diseases market Brings greater understanding
Slide 6: Power of Scale, Spirit of Small
Power of Scale, Spirit of Small Primary Care Emerging Markets Animal Health & Established Products Established Products Specialty Care Recent Transactions Consistent with Stated View Toward Bolt-on Business Development Third Quarter 2010 Earnings 6
Slide 7: Opening Remarks
Opening Remarks Jeff Kindler Chairman & Chief Executive Officer Third Quarter 2010 Earnings
Slide 8: Financial Review
Financial Review Frank D’Amelio Senior Vice President & Chief Financial Officer Third Quarter 2010 Earnings
Slide 9: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per-Share Amounts) Third Quarter 2010 2009 Change Reported Revenues $16,171 $11,621 39% Reported Net Income(1) 866 2,878 (70%) Reported Diluted EPS(1) 0.11 0.43 (74%) Adjusted Income(2) 4,372 3,461 26% Adjusted Diluted EPS(2) 0.54 0.51 6% Reported Net
Slide 10: Quarterly Adjusted Income Components
Quarterly Adjusted Income(1) Components ($ Millions, Except Per-Share Amounts) Third Quarter 2010 2009 Change Revenues(1) $16,166 $11,603 39% Cost of Sales(1) 2,959 1,787 66% SI&A Expenses(1) 4,615 3,225 43% R&D Expenses((1)) 2 160 2,160 1 619 1,619 33% Adjusted Total Costs(2) 9,734 6,631 47% Provis
Slide 11: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components Compared with the Year-Ago Quarter ($ Millions, Except Percentages) Third Quarter 2010 FX Impact Revenues(1) $16,166 ($160) (1%) Cost of Sales(1) 2,959 (251) (14%) SI&A Expenses E (1) 4 615 4,615 (32) (1%) R&D Expenses(1) 2,160 (15) (1%) Ad
Slide 12: Biopharmaceutical Revenues
Biopharmaceutical Revenues ($ Millions) Third Quarter(1) Total Legacy Pfizer FX 2010 2009(1) Change Operational Operational Impact Growth Growth Primary Care $5,653 $5,540 2% (1%) 3% (3%) Specialty Care 3,717 1,577 136% (6%) 142% (1%) Established Products 2 168 2,168 1 657 1,657 31% (1%) 32% (13%) E
Slide 13: Diversified Revenues
Diversified Revenues ($ Millions) Third Quarter Total Legacy Pfizer FX 2010 2009 Change Operational Operational Impact Growth Growth Animal Health $860 $678 27% (1%) 28% 5% Consumer Healthcare 673 – N/A N/A N/A N/A Nutrition 441 – N/A N/A N/A N/A Capsugel 176 177 (1%) (3%) 2% 2% Total $2,150 $855 15
Slide 14: Broader Portfolio Driving Revenue Expansion in Emerging Markets
Broader Portfolio Driving Revenue Expansion in Emerging Markets ($ Millions, Except Percentages) $3,000 ~$1,135 ~$2,850 ~$800 ● BRIC-MT(1) Markets Contributed ~46% Diversified of Total Emerging $2,000 Markets Growth ~$1,715 ~$165 Established ~$900 ● Legacy Pfizer Products Biopharma Revenues in BRIC-
Slide 15: 2010 Financial Guidance
2010 Financial Guidance(1)(2) Reported Revenues $67.0 to $68.0 Billion Previously $67.0 to $69.0 Billion Adjusted Cost of Sales(3) as a Percentage of Revenues 18.5% to 19.0% Previously 19% to 20% Adjusted SI&A Expenses(3) $19.2 to $19.7 Billion Previously $19.0 to $20.0 Billion Adjusted R&D Expenses
Slide 16: 2012 Financial Targets
2012 Financial Targets(1) Reported Revenues $65.2 to $67.7 Billion Adjusted R&D(2) Expenses $8.0 to $8.5 Billion Adjusted Operating Margin(2) High 30%s to Low 40%s Adjusted Other (Income)/Deductions(2) $1.0 to $1.2 Billion Effective Tax Rate on Adjusted Income(2) Approximately 30% R Reported Dil t d
Slide 17: Key Takeaways
Key Takeaways ● Quarterly results reflect solid overall operational performance; Positively impacted by legacy Wyeth operations ● Tightens ranges for 2010 financial guidance components Increase and narrow range for Adjusted Diluted EPS(1) to $2.17 to $2.22 ● Reaffirm 2012 financial targets ● O
Slide 18: Q&A Session
Third Quarter 2010 Earnings Teleconference Q&A Session November 2, 2010 Third Quarter 2010 Earnings