Zoetis Inc. · NYSE:ZTS
Zoetis — Investor Presentation (September 2024)
29 slides from Zoetis's investor presentation, September 2024
Slide 1: Corporate Overview
Corporate Overview September 2024
Slide 2: Our Purpose and Vision
Our Purpose To nurture the world and humankind by advancing care for animals. Our Vision To be the most trusted and valued animal health company, shaping the future of animal care through our innovation, customer obsession and purpose-driven colleagues. 2 Zoetis Corporate Overview
Slide 3: Zoetis at a Glance
Zoetis at a $8.5B 8 8 Glance Annual revenue Major product categories Core animal species Revenue from 70+ 100+ 66% companion Years of experience Countries where Zoetis 29 animal products1 Revenue from products are sold Manufacturing sites 34% livestock products1 We provide: Medicines, Vaccines, Diag
Slide 4: Our Executive Team
Our Executive Team Nick Ashton Ester Banque Jamie Brannan Rimma Driscoll Jeannette Ferran Executive Vice President and Executive Vice President and Executive Vice President and Executive Vice President, Head Astorga Pre side nt, Globa l Manu facturing Pre side nt, U.S. Opera tion s Gr oup President
Slide 5: Our Core Beliefs
Our Core Beliefs They form the foundation of our culture 5 Zoetis Corporate Overview
Slide 6: Our Strategic Priorities
Our Strategic Priorities Lead through Deliver an Power our Support a Advance Perform with innovation exceptional business workplace sustainability excellence across our experience through digital where our in animal and agility diverse to delight our solutions and colleagues health for a portfolio c
Slide 7: Innovating Across the Continuum of Care
Innovating Across the Continuum of Care PREDICT PREVENT DETECT TREAT Genetics Vaccines, Data Diagnostics Medicines robotics analytics and and sensors automation 7 Zoetis Corporate Overview
Slide 8: Diverse, Durable and Innovative Portfolio
Diverse, 7 Durable and therapeutic 8 core species areas Innovative Portfolio Diversity across geographies, species and therapeutic areas 15 1 ~30 2 year average market life blockbusters drives steady performance of key brands in portfolio ~300 >2,000 product lines new products and lifecycle innovati
Slide 9: Leading the industry across the Continuum of Care with 15 blockbusters
Leading the industry across the Continuum of Care over 10 years with 15 blockbusters1 ANTI-INFECTIVES DERMATOLOGY DIAGNOSTICS PAIN AND SEDATION OTHER PHARM. PARASITICIDES VACCINES 9 Zoetis Corporate Overview 1Number of blockbuster products with revenues of $100M or more as of year-end 2023
Slide 10: World Leader in Animal Health
World Leader in Animal Health1 By Species By Product Category By Geography High Growth Franchise Areas3 Companion Animal #1 Other Pharma 2 #1 North America #1 Cattle #1 #1 Anti-Infectives #1 #1 Dermatology Latin America Fish3 #1 Medicated Feed #2 Additives (MFA) Swine #2 Asia #1 Vaccines Pet Pain #1
Slide 11: Proven track record of above-market operational revenue growth
Proven track record of above-market operational revenue growth Zoetis has consistently grown faster than the core animal health market 15% 10% 8% 8% 8% 8% 8% 8% 8% 7% 7% 7% 6% 6% 5% 5% 5% 4% 3% 2% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Zoetis organic operational revenue growth 1 Industry
Slide 12: Zoetis revenue growth has outpaced U.S. vet clinic revenue and visits
Zoetis revenue growth has outpaced U.S. vet 4-Year CAGR clinic revenue and visits 8.6% 1 13.8% 1 • Solid vet clinic growth drivers saw spike in 2021 due to pandemic, now normalizing to pre- Total Zoetis Zoetis U.S. pandemic levels Companion • Clinic revenue growth has remained strong even Animal wit
Slide 13: Animal health poised for strong, sustainable growth
Animal health poised for strong, sustainable growth Innovation and market expansion are Key market drivers in increasing opportunities the next 5-10 years Expected Market Growth ($B)1 • Increasing medicalization $75B-$90B • Growing human-animal bond 1 $60B–$70B • Innovating to treat chronic ~$48B di
Slide 14: Growth opportunities for animal health
Growth opportunities for animal health Essential demand for Recession-resistant protein and petcare in nature of Animal Health the world today Unmet need for animal Pet owners willingness care and increases in to pay for treatment medicalization and care More investment in sustainable animal agricul
Slide 15: The Human-Animal Bond
KEY TRENDS IN PETCARE The Human-Animal Bond Pet owners are prioritizing health and wellness of their animals • Gen-Z and Millennials are fueling the humanization of pets • High income households often have more than one pet and are more willing to spend during a down 86% of pet owners would economy
Slide 16: Healthy Animals Meeting Protein Demand
KEY TRENDS IN LIVESTOCK Healthy Animals Meeting Protein Our ultimate goal Demand is to enable animals The global population is growing, to be healthy leading to increased demand for and productive animal protein sources • Nearly 2 billion more mouths to feed by 2050 (Global pop. of 9.7 billion in 20
Slide 17: 2024 Key Growth Catalysts
2024 Key Growth Catalysts Building on our progress to drive future growth Pet Key Emerging Parasiticides Dermatology Pain Diagnostics Markets 17 Zoetis Corporate Overview
Slide 18: High-Quality Products, Delivered by Our World-Class Manufacturing Operations
Tallaght, Tullamore High-Quality Chicago Heights, IL and Rathdrum, Ireland Overhalla, Norway Products, Charles City, IA Eagle Grove, IA Kalamazoo, MI Klofta, Norway Farum, Denmark LLN, Belgium Weibern, Austria Delivered Union City, CA Lincoln, NE Willow Island, WV Salisbury, MD Olot, Spain Medolla,
Slide 19: Global Leadership, Scale and Scope
Global Revenue by market1 Leadership, Scale and United States 54% Brazil 5% Scope Australia 4% China 4% United Kingdom 3% Zoetis combines the local Canada 3% presence and knowledge Germany 2% necessary to serve the Mexico 2% unique needs of individual Japan 2% customers with the global France 2% rea
Slide 20: 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% 38% 38% 37% $2,297 $2,457 2,400 37% $2,240 44% 35% 34% 39% $1,755 $1,844 1,900 34% $1,525 29% 1,400 $1,185 24% 19% 900 14% 400 9% 4%
Slide 21: Delivering On Our Long-Term Value Proposition to Shareholders
Delivering On Our Long-Term Value Proposition to Shareholders Grow revenue Invest in Increase adjusted Return excess faster than the innovation and net income faster capital to market growth than revenue shareholders capabilities 21 Zoetis Corporate Overview
Slide 22: Award-Winning Culture and Workplace
Award-Winning Culture and Workplace 22 Zoetis Corporate Overview
Slide 23: Our Sustainability Strategy
Our Sustainability Strategy Long range goals supporting Communities, Animals and the Planet — and the United Nations’ Sustainable Development Goals (SDGs) COMMUNITIES ANIMALS PLANET Care and Innovation in The Drive to Collaboration Animal Health Protect Our Planet We support and partner with our We
Slide 24: 2023 Sustainability Progress
2023 Sustainability Progress COMMUNITIES ANIMALS PLANET The Drive to Care and Innovation Protect Our Collaboration in Animal Health Planet Using our expertise in animal Supporting our colleagues, Stewarding resources health to solve sustainability communities and people who responsibly and minimizin
Slide 25: www.zoetis.com
zoetis www.zoetis.com
Slide 26: Appendix: Non-GAAP Financial Measures Disclosure and Reconciliations
Appendix Non-GAAP Financial Measures Disclosure and Reconciliations
Slide 27: Reconciliation Of GAAP To Non-GAAP Financial Measures
Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Revenue Growth to Organic Operational Growth Operational Organic Change from Foreign Operational Efficiency Operational (Dollars in millions) Revenue Prior Year Exchange Growth1 Acquisitions Initiative2 Growth3 2014 $4,785 5% (2)% 7% 201
Slide 28: Reconciliation Of GAAP To Non-GAAP Financial Measures
Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Net Income to Adjusted Net Income Margin (Dollars in millions) 2017 2018 2019 2020 2021 2022 2023 Net income attributable to Zoetis1 $864 $1,428 $1,500 $1,638 $2,037 $2,114 $2,344 Purchase accounting adjustments-net of tax2 51 119 156 14
Slide 29: Reconciliation Of GAAP To Non-GAAP Financial Measures
Reconciliation Of GAAP To Non-GAAP Financial Measures Adjusted Net Income to Adjusted EBIT as a % of Revenue (Dollars in millions) 2017 2018 2019 2020 2021 2022 2023 Adjusted Net Income attributable to Zoetis 1 $1,185 $1,525 $1,755 $1,844 $2,240 $2,297 $2,457 Interest Expense2 175 206 223 231 224 22