Zoetis : Fourth-Quarter 2021 Financial Results - Investor Presentation

Fourth Quarter

and Full Year

2021 Financial

Results

February 15, 2022

Forward-looking	Non-GAAP Financial
Statements	Information

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; supply chain; R&D costs, timing and likelihood of success; expectations regarding products, product approvals or products under development; 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. Such risks and uncertainties may be amplified by the COVID-19 pandemic and its potential impact on the global economy and our business. These filings and subsequent filings are available online at www.sec.gov,www.zoetis.com, or on request from Zoetis.

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 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

FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

Key Takeaways

Strong Global Growth Continued in 2021

• Generated 15% operational1 revenue growth and 19% operational1 increase in adjusted net income2, with revenue in the U.S increasing 14% and International up 17% operationally1.
• Full year revenue of $7.8 billion and full year adjusted net income of $2.2 billion.
• Revenue increase for 2021 was primarily driven by companion animal, with operational1 growth of 27%, while livestock grew 1% operationally1 in the year.

Robust Growth in Companion Animal

• Companion animal parasiticides had a strong year, led by Simparica Trio® sales of $475 million. The Simparica® franchise grew 82% operationally1 with total sales of approximately $750 million.
• The continued investments in key dermatology led to 24% operational1 growth and sales of $1.2 billion.
• Librela® became the number one pain product in the EU in year one and is well-positioned for meaningful growth.

Guidance for 2022

• Outlook for 2022 projects operational1 growth in revenue of 9% to 11% and operational1 growth of 10% to 13% in adjusted net income2.
• Our guidance reflects continued confidence in the ability to deliver sustainable future growth.

1 Operational growth (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