Third Quarter 2023 Financial Results

THIRD QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Third Quarter Revenue Adjusted Cost of Sales² as a percent of revenue ³ Adjusted SG&A Expenses² Adjusted R&D Expenses² Adjusted Operating Expenses4 Effective Tax Rate on Adjusted Income² Adjusted Net Income² 2023* $2,151 635 29.5% 521 151 677 19.6% 629 $1.36 2022* $2,002 605 30.2% 493 134 633 20.9% 566 $1.21 Change 7% 5% ΝΑ 6% 13% 7% ΝΑ 11% 12% Foreign Exchange (1)% -% ΝΑ 1% —% —% ΝΑ (2)% (3)% Operational¹ 8% 5% ΝΑ 5% 13% 7% ΝΑ 13% 15% Adjusted Diluted Earnings Per Share² * Millions of dollars, except per share data NA - Not applicable 1 Operational results (a non-GAAP financial measure) excludes the impact of foreign exchange. 2 Adjusted net income and its components (non-GAAP financial measures) are defined as reported GAAP net income and its components, excluding purchase accounting adjustments, acquisition-related costs and certain significant items. Adjusted cost of sales, adjusted selling, general and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted tax expenses are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. 3 Adjusted gross margin (a non-GAAP financial measure) was 70.5% and 69.8% in the third quarter of 2023 and 2022, respectively. 4 Adjusted operating expenses (a non-GAAP financial measure) of $677 million in the third quarter of 2023 and $633 million in the third quarter of 2022 includes adjusted amortization of intangible assets of $5 million and $6 million in the third quarter of 2023 and 2022, respectively. zoetis

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