Slide 1: Third Quarter 2014 Earnings Teleconference
Third Quarter 2014 Earnings Teleconference October 28, 2014
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations Third Quarter 2014 Earnings
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information l 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 Third Quarter 2014 Earnings
Slide 5: CEO Perspectives
CEO Perspectives l Despite headwinds from recent product LOEs and losses of alliance revenue, our key products continue to perform well; Solid revenue growth also continues in Emerging Markets l Continue to execute our go-forward strategy, anchored upon the following pillars: Ü Improving R&D product
Slide 6: Financial Review
Financial Review Frank D’Amelio Executive Vice President & Chief Financial Officer Third Quarter 2014 Earnings
Slide 7: Income Statement Highlights
Income Statement Highlights ($ Millions, Except Per Share Amounts and Percentages) Third Quarter 2014 2013 Change Reported Revenues(1) $12,361 $12,643 (2%) Adjusted Income(2) 3,655 3,859 (5%) Adjusted Diluted EPS(2) 0.57 0.58 (2%) Reported Net Income(1) 2,666 2,590 3% Reported Diluted EPS(1) 0.42 0.
Slide 8: Impact of Foreign Exchange on Adjusted Income Components
Impact of Foreign Exchange on Adjusted Income(1) Components ($ Millions, Except Percentages) Favorable / (Unfavorable) Third Quarter 2014 2013 FX Impact Revenues(1) $12,296 $12,576 ($11) » — Cost of Sales(1) 2,244 2,178 (10) « — SI&A Expenses(1) 3,299 3,351 5 » — R&D Expenses(1) 1,788 1,625 (4) « —
Slide 9: Global Innovative Pharmaceutical (GIP) Selected Financial Highlights
Global Innovative Pharmaceutical (GIP) Selected Financial Highlights ($ Millions, Except Percentages) Third Quarter l Q3 2014 revenues decreased 4% operationally to $3,490M vs. Q3 2013 % Change 2014 2013 Ü The loss of Enbrel alliance revenues negatively Total Oper. impacted revenues by $425M; All ot
Slide 10: Global Vaccines, Oncology and Consumer Healthcare (VOC) Selected Financial Highlights
Global Vaccines, Oncology and Consumer Healthcare (VOC) Selected Financial Highlights ($ Millions, Except Percentages) l Q3 2014 revenues increased 13% operationally to Third Quarter $2,511M vs. Q3 2013 % Change Ü Driven by strong operational growth of Prevnar, 2014 2013 Total Oper. Xalkori and Inly
Slide 11: Global Established Pharmaceutical (GEP) Selected Financial Highlights
Global Established Pharmaceutical (GEP) Selected Financial Highlights ($ Millions, Except Percentages) Third Quarter l Q3 2014 revenues declined 6% operationally to $6,239M vs. Q3 2013 % Change 2014 2013 Ü LOEs, lost alliance revenues, and Lipitor in the U.S. Total Oper. and Japan negatively impacte
Slide 12: 2014 Adjusted Financial Guidance
(1)(2)(3) 2014 Adjusted Financial Guidance $48.7 to $49.7 billion Adjusted Revenues(4) (previously $48.7 to $50.7 billion) Adjusted Cost of Sales(4) as a % of Adjusted Revenues(4) 18.5% to 19.0% (previously 19.0% to 20.0%) $13.5 to $14.0 billion Adjusted SI&A Expenses(4) (previously $13.3 to $14.3 b
Slide 13: Key Takeaways
Key Takeaways Narrowed FY 2014 guidance ranges for Adjusted Revenue(1) and Adjusted Diluted EPS(1) Recently accomplished several important R&D milestones Ü FDA accepted with priority review our New Drug Application for palbociclib; PDUFA date is April 13, 2015 Ü FDA accepted with priority review our
Slide 14: Third Quarter 2014 Earnings Teleconference Q&A Session
Third Quarter 2014 Earnings Teleconference Q&A Session October 28, 2014