Third Quarter 2023 Financial Results slide image

Third Quarter 2023 Financial Results

THIRD QUARTER FINANCIAL RESULTS Key Takeaways Strong 3Q Global Growth Generated 8% operational¹ revenue growth and a 13% operational increase in adjusted net income², with U.S. revenue increasing 8% and International revenue up 8% operationally. ● • Companion animal revenue grew 11% operationally, driven by our innovative products, with double-digit operational growth in our key dermatology portfolio, our monoclonal antibodies for OA pain, Librela® and Solensia®, and Simparica Trio®. • Our livestock portfolio grew 3% operationally, with international growth partially offset by a slight decline in the U.S. Growth in livestock was driven by sales of poultry and cattle products. Updates and Narrows Guidance for 2023 Due to unfavorable foreign exchange rates, we are revising our reported revenue range, while narrowing our guidance on operational revenue growth. We expect revenue between $8.475B and $8.550B, with operational growth of 6.5% to 7.5%. ● We are expecting adjusted net income to be in the range of $2.490B and $2.515B driven by unfavorable foreign exchange. Operationally, we are narrowing our growth expectations to a range of 7.5% to 8.5%. ● • Expected reported diluted EPS narrows to a range of $5.14 to $5.21, and adjusted diluted EPS narrows to $5.38 to $5.43. zoetis ¹ Operational results (a non-GAAP financial measure) excludes the impact of foreign exchange. 2 Adjusted net income (a non-GAAP financial measure) is defined as reported GAAP net income, excluding purchase accounting adjustments, acquisition-related costs and certain significant items. 4
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