Zoetis : Second Quarter 2023 Financial Results - Investor Presentation

Second

Quarter 2023

Financial

Results

August 8, 2023

Forward-looking

Statements

This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects; future operating or financial performance, future guidance, future operating models; disruptions in our global supply chain; R&D costs, timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; the impact of the coronavirus (COVID-19) global pandemic and any recovery therefrom on our business, supply chain, customers and employees; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; tax rates and tax regimes and any changes thereto; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof

captioned "Forward-Looking Statements and Factors That May Affect Future Results" and

"Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov,www.zoetis.com, or on request from Zoetis.

Non-GAAP Financial Information

We use non-GAAP* financial measures, such as adjusted net income, adjusted diluted earnings per share, adjusted operating expenses, adjusted gross margin, operational results (which excludes the impact of foreign exchange), adjusted EBIT margin, organic operational growth and normalized organic operational growth to assess and analyze our results and trends and to make financial and operational decisions. We believe these non- GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this presentation should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying our earnings release and are posted on our website at www.zoetis.com.

*GAAP refers to U.S. generally accepted accounting principles.

2

Kristin Peck

Chief Executive Officer

SECOND QUARTER FINANCIAL RESULTS

Key Takeaways

Strong 2Q Global Growth

• Generated 9% operational1 revenue growth and a 12% operational increase in adjusted net income2, with U.S. revenue increasing 7% and International revenue up 11% operationally.
• Companion animal revenue grew 11% operationally, driven by our major franchises in dermatology, osteoarthritis pain and pet parasiticides.
• Our livestock portfolio grew 4% operationally, driven by increased sales of poultry, cattle and fish products.

Updated Guidance for 2023

• Due to the higher unfavorable impact from foreign exchange, we are slightly lowering our revenue range, while maintaining our guidance on operational revenue growth.
• • Revenue range of $8.500B and $8.650B, with operational growth of 6% to 8%.
• We expect adjusted net income to be slightly above our previous guidance, while maintaining our previous guidance of operational growth, driven by foreign exchange favorability in cost of sales and expenses which were partially offset by unfavorability in revenue.
• • Adjusted net income range of $2.500B and $2.550B, with operational growth of 7% to 9%.
• We anticipate companion animal growth to continue driving our performance for the remainder of the year, while we expect full year operational growth for our livestock portfolio to be in the low single-digits.

1 Operational results (a non-GAAP financial measure) excludes the impact of foreign exchange.

4 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.

Wetteny Joseph

Executive Vice President and Chief Financial Officer