Slide 1: Fourth Quarter and Full Year 2022 Financial Results
Fourth Quarter and Full Year 2022 Financial Results February 14, 2023
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Non-GAAP Financial Statements Information This presentation contains forward-looking statements, which reflect the current views of We use non-GAAP* financial measures, such as adjusted net income, adjusted diluted Zoetis with respect to: business plans or prospects; future operating
Slide 3: Kristin Peck, Chief Executive Officer
Kristin Peck Chief Executive Officer
Slide 4: Key Takeaways
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Key Takeaways Strong Global Growth Continued in 2022 • Generated 8% operational1 revenue growth and 11% operational1 increase in adjusted net income2, with revenue in the U.S increasing 7% and International up 9% operationally1. • Full year revenue of $
Slide 5: Wetteny Joseph, Executive Vice President and Chief Financial Officer
Wetteny Joseph Executive Vice President and Chief Financial Officer
Slide 6: Income Statement Highlights - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Income Statement Highlights Fourth Quarter 2022* 2021* Change Revenue $2,040 $1,967 4% Reported Net Income 461 414 11% Reported Diluted Earnings Per Share $0.99 $0.87 14% Adjusted Net Income1 539 474 14% Adjusted Diluted Earnings Per Share1,2 $1.15 $1.0
Slide 7: Income Statement Highlights - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Income Statement Highlights Full Year 2022* 2021* Change Revenue $8,080 $7,776 4% Reported Net Income 2,114 2,037 4% Reported Diluted Earnings Per Share $4.49 $4.27 5% Adjusted Net Income1 2,297 2,240 3% Adjusted Diluted Earnings Per Share1,2 $4.88 $4.7
Slide 8: Adjusted Income Statement Highlights - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Adjusted Income Statement Highlights Fourth Quarter Foreign 2022* 2021* Change Exchange Operational1 Revenue $2,040 $1,967 4% (5)% 9% Adjusted Cost of Sales2 650 598 9% (2)% 11% as a percent of revenue3 31.9% 30.4% NA NA NA Adjusted SG&A Expenses2 507 5
Slide 9: Adjusted Income Statement Highlights - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Adjusted Income Statement Highlights Full Year Foreign 2022* 2021* Change Exchange Operational1 Revenue $8,080 $7,776 4% (4)% 8% Adjusted Cost of Sales2 2,440 2,289 7% (1)% 8% as a percent of revenue3 30.2% 29.4% NA NA N/A Adjusted SG&A Expenses2 1,980
Slide 10: U.S. Segment Performance - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS U.S. Segment Performance Fourth Quarter 2022* 2021* Change Revenue $1,112 $1,040 7% Companion Animal 853 763 12% Livestock 259 277 (6)% Cost of Sales 216 213 1% Gross Profit 896 827 8% Gross Margin 80.6% 79.5% NA Operating Expenses 187 197 (5)% Other (I
Slide 11: U.S. Segment Performance - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS U.S. Segment Performance Full Year 2022* 2021* Change Revenue $4,313 $4,042 7% Companion Animal 3,341 2,990 12% Livestock 972 1,052 (8)% Cost of Sales 803 788 2% Gross Profit 3,510 3,254 8% Gross Margin 81.4% 80.5% NA Operating Expenses 765 681 12% Othe
Slide 12: International Segment Performance - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Fourth Quarter Foreign 2022* 2021* Change Exchange Operational1 Revenue $901 $902 —% (12)% 12% Companion Animal 450 419 7% (14)% 21% Livestock 451 483 (7)% (11)% 4% Cost of Sales 274 273 —% (8)% 8% Gross Profit 627 629
Slide 13: International Segment Performance - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Full Year Foreign 2022* 2021* Change Exchange Operational1 Revenue $3,681 $3,652 1% (8)% 9% Companion Animal 1,862 1,699 10% (9)% 19% Livestock 1,819 1,953 (7)% (7)% —% Cost of Sales 1,083 1,106 (2)% (5)% 3% Gross Profi
Slide 14: International Segment Performance by Market - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Fourth Quarter Foreign 2022* 2021* Change Exchange Operational1 Total International $901.3 $902.3 —% (12)% 12% Australia 64.2 62.8 2% (13)% 15% Brazil 96.2 84.1 14% 4% 10% Canada 65.2 63.0 3% (8)% 11% Chile 34.8 36.1 (4
Slide 15: International Segment Performance by Market - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Full Year Foreign 2022* 2021* Change Exchange Operational1 Total International $3,680.8 $3,651.9 1% (8)% 9% Australia 288.7 258.8 12% (9)% 21% Brazil 329.5 311.5 6% 3% 3% Canada 237.5 231.5 3% (3)% 6% Chile 141.1 136.3
Slide 16: Financial Guidance
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2023 Revenue $8,575 to $8,725 Operational growth1 6% to 8% Adjusted cost of sales as a percentage of revenue2 29.5% to 30.0% Adjusted SG&A expenses2 $2,060
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Fourth quarter ended December 31, 2022* 2021* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $347 $316 10% (4)% 14% Key Dermatology (international) 108 10
Slide 20: Reconciliation Of Adjusted Net Income To Adjusted EBIT
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Adjusted Net Income To Adjusted EBIT Dollars in millions 2020 2021 2022 Adjusted net income attributable to Zoetis1 $1,844 $2,240 $2,297 Interest expense2 231 224 221 Interest income2 (12) (6) (50) Income taxes2 413 511 583 Adjusted EB
Slide 21: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information - 2022
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2022 GAAP1 Purchase Acquisition- Certain Non-GAAP in USD millions, except per share data Reported Accounting Related Costs Significant Items Adjusted2 Cost of sales $2,454 $(6) $— $(8) $2,
Slide 22: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information - 2021
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2021 GAAP1 Purchase Acquisition- Certain Non-GAAP in USD millions, except per share data Reported Accounting Related Costs Significant Items Adjusted2 Cost of sales $2,303 $(6) $— $(8) $2,
Slide 23: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information - 2020
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2020 GAAP1 Purchase Acquisition- Certain Significant Non-GAAP in USD millions, except per share data Reported Accounting Related Costs Items Adjusted2 Cost of sales $2,057 $(8) $— $(19) $2
Slide 24: Reconciliation Of Adjusted Net Income Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Adjusted Net Income Growth To Non- GAAP Financial Measures Adjusted Change From Foreign Operational in USD millions Net Income1 Prior Year Exchange Growth2 2020 $1,844 5% (5)% 10% 2021 $2,240 21% 2% 19% 2022 $2,297 3% (8)% 11% 1 Adjust
Slide 25: Reconciliation Of Reported Revenue To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Reported Revenue To Non-GAAP Financial Measures Organic Change From Prior Operational Operational in USD millions Revenue Year Foreign Exchange Growth1 Acquisitions Growth2 2020 $6,675 7% (2)% 9% 1% 8% 2021 $7,776 16% 1% 15% 2022 $8,08
Slide 26: zoetis
zoetis