Slide 1: First Quarter 2013 Earnings Teleconference
First Quarter 2013 Earnings Teleconference April 30, 2013
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations First Quarter 2013 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 Chairman and Chief Executive Officer First Quarter 2013 Earnings
Slide 5: CEO Perspectives
CEO Perspectives ● Started 2013 by continuing to create significant value for our shareholders Completed a successful IPO of a minority interest in Zoetis and related debt offering Repurchased approximately $6.3 billion of our shares to date ● Focus on rebuilding and strengthening our innovative
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer First Quarter 2013 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) First Quarter 2013 2012 Change Reported Revenues $13,500 $14,885 (9%) Adjusted Income(1) 3,911 4,344 (10%) Adjusted Diluted EPS(1) 0.54 0.57 (5%) Reported Net Income(2) 2,750 1,794 53% Reported Diluted EPS(2) 0.38 0.2
Slide 8: BRIC-MT Biopharmaceutical Revenue Performance
BRIC-MT(1) Biopharmaceutical Revenue Performance ($ Millions, Except Percentages) Operational Growth / (Decline) $1,200 $1,154 Q1 2013 vs. Q1 2012 $1,068 $1,000 India 8% Turkey (7%) $800 Russia 10% $600 $ M i Mexico 9% $400 Brazil 1% China 18% $200 BRIC-MT(1) 9% $0 Q1 2012 Q1 2013 Volume Growth of 1
Slide 9: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) First Quarter 2013 2012 FX Impact Revenues $13,500 $14,855 ($118) (1%) Cost of Sales(1) 2,615 2,658 (10) -- SI&A Expenses(1) 3,494 3,948 31 1% R&D Expenses(1) 1,708 1,756 3 -- Total
Slide 10: Reduced 2013 Revenue Guidance Range by $900 Million Due to Foreign Exchange
Reduced 2013 Revenue Guidance Range by $900 Million Due to the Unfavorable Impact of Foreign Exchange ($ Billions, Except Percentages) $57.2 $57.0 $56.5 $56.3 Change in Foreign Exchange Rates vs. the U.S. Dollar Since Mid-January 2013 (7%) (32%) (1%) (4%) (3%) (1%) $56.0 Mid-Point of Japanese Venezu
Slide 11: 2013 Financial Guidance
2013 Financial Guidance(1)(2) $55.3 to $57.3 Billion Reported Revenues Previously $56.2 to $58.2 Billion Adjusted Cost of Sales(3) as a % of Revenues 19.0% to 20.0% Adjusted SI&A Expenses(3) $15.6 to $16.6 Billion Adjusted R&D Expenses(3) $6.5 to $7.0 Billion Adjusted Other (Income) / Deductions(3)
Slide 12: Key Takeaways
Key Takeaways • Results reflect product losses of exclusivity in various geographies and anticipated volatility in Emerging Markets Continue to expect high-single-digit operational revenue growth in Emerging Markets during 2013 Continue to mitigate the earnings impact of product LOEs with expens
Slide 13: First Quarter 2013 Earnings Teleconference Q&A Session
First Quarter 2013 Earnings Teleconference Q&A Session April 30, 2013