Company Overview - Zoetis is focused on defining the next era in animal health through innovation, a science-to-scale model, and disciplined execution [2][3] - The company is led by CEO Kristin Peck and CFO Wetteny Joseph, who are presenting the company's vision and financial outlook [1][3] Industry Insights - The animal health industry is projected to grow to $90 billion over the next 10 years, driven by strong sectoral tailwinds in both companion animals and livestock [4]

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Summary of Zoetis Conference Call Company Overview - **Company**: Zoetis - **Industry**: Animal Health - **Current Market Size**: Approximately $50 billion, projected to grow to $90 billion over the next 10 years [4][3] Key Industry Insights - **Growth Drivers**: - Strong sectoral tailwinds in both companion animal and livestock segments [3] - Increasing global population demanding nutritious protein [4] - Shift towards pet medicalization driven by younger pet owners (Millennials and Gen Z) [6] - **Market Trends**: - Companion animal market growth driven by increased spending on veterinary care and advanced therapies [6] - Livestock sector recovering from disruptions caused by African swine fever and COVID-19, with mid-single-digit growth [8] Company Performance - **Revenue Growth**: - Zoetis has achieved an 8% compound annual growth rate (CAGR) since its IPO, outperforming the industry average of 5% [5] - **Profitability**: - EBITDA margins of 41%-42% and mid-20s return on invested capital (ROIC) [21] - **R&D Investment**: - $5 billion invested in R&D since IPO, leading to 2,000 regulatory approvals over the last decade [9][10] Product Pipeline and Innovation - **Future Blockbusters**: - 12 potential blockbuster drugs in the pipeline, with expectations for major market approvals annually [11][12] - **Key Areas of Focus**: - Chronic kidney disease, oncology, cardiology, obesity, and anxiety in pets, with significant market potential [13][14][15][16] - **Diagnostics and Preventatives**: - Emphasis on expanding diagnostics and preventative care in livestock and companion animals [20] Market Position and Strategy - **Commercial Excellence**: - Direct field force in 45 markets, combining sales with medical affairs and marketing for effective execution [15] - **Product Leadership**: - Simparica Trio leading in the parasiticide space, with high customer satisfaction [16] - **Dermatology Portfolio**: - Strong portfolio including Apoquel and Cytopoint, with plans for long-acting products [17][18] Financial Strategy - **Capital Allocation**: - Focus on innovation, disciplined capital allocation, and returning excess cash to shareholders through dividends and buybacks [24][25] - **Shareholder Returns**: - Over 125% of free cash flow returned to shareholders in the last three years, with a 13% CAGR in dividends [24] Challenges and Outlook - **Short-term Headwinds**: - Anticipated slowdown in companion animal growth due to price increases and macroeconomic factors [27][29] - **Long-term Confidence**: - Sustained growth expected from livestock and diagnostics, with a focus on executing commercial strategies [30][32] - **Future Growth Projections**: - Long-term growth expectations remain robust, supported by industry trends and Zoetis's innovation pipeline [35] Conclusion - **Zoetis's Position**: - Well-positioned to capitalize on the growing animal health market with a strong pipeline, innovative products, and a disciplined approach to capital allocation [26]

44TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE Leading the Future of Animal Health January 12, 2026 Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: industry growth and market outlook; business plans or prospects; future operating or financial performance; future guidance; future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under developm ...

Core Viewpoint - Zoetis Inc. will host a webcast and conference call to discuss its fourth quarter and full year 2025 financial results on February 12, 2026, led by CEO Kristin Peck and CFO Wetteny Joseph [1]. Group 1: Financial Results Announcement - The conference call is scheduled for 8:30 a.m. (ET) on February 12, 2026, where financial analysts will have the opportunity to ask questions [1]. - Investors and the public can access the live webcast through the Zoetis website, with pre-registration available starting today [2]. Group 2: Company Overview - Zoetis is recognized as the world's leading animal health company, focusing on advancing care for animals and supporting those who raise and care for them [3]. - The company has a strong portfolio and pipeline of medicines, vaccines, diagnostics, and technologies, impacting over 100 countries [3]. - In 2024, Zoetis generated revenue of $9.3 billion and employs approximately 13,800 people [3].

I want to get to a move that you have as well uh in the best performing sector of the quarter which is healthcare. So you got the news today on the FDA approving the first GLP-1 pill uh from Novo. You like animal health you have and you bought more Zoetas.Tell us why. >> Do you know it's been uh not since March of 2021 where this stock Zoetas has traded at a discounted multiple to Elanco. Now congrats to Lanco.I happen to own it but it's up 81%. It's a turnaround story. I'm inclined to take more profits the ...

Group 1: Healthcare Sector - The healthcare sector is highlighted as the best performing sector of the quarter, with a focus on the FDA's approval of the first GLP-1 pill from Novo [1] - Zoetis has been trading at a discount compared to Elanco since March 2021, with current trading at 19 times earnings, while Elanco trades at 23 times [2] - The total addressable market for the veterinary sector is projected to reach $100 billion by 2035, with Zoetis holding a 20% market share but facing execution challenges [4] Group 2: Company Performance - Zoetis has underperformed due to the CEO's inability to execute effectively, leading to a lower stock performance despite a favorable market [2][4] - The last three quarters have seen Zoetis meet expectations but lower future guidance, contributing to its stock struggles [3] - Piper Sandler suggests a mean reversion for Zoetis, indicating potential future rewards for supporting new product launches in 2026 and 2027 [5] Group 3: Metals and Mining - Metals, particularly gold and silver, have reached new record highs, with copper having its best year since 2009 [6] - Freeport-McMoRan is noted for its low trading multiple of 17 times earnings and a 7% free cash flow yield, making it a pure play on copper [7] - Execution issues at Freeport have affected its stock performance, while Aagasta is recognized as a better operator with significant production growth [8]

Company Performance - Zoetis (ZTS) closed at $123.78, reflecting a +1.26% change from the previous day's closing price, outperforming the S&P 500's gain of 0.64% [1] - The stock has increased by 0.15% over the past month, underperforming the Medical sector's gain of 2.25% and the S&P 500's gain of 3% [1] Upcoming Earnings - Analysts forecast Zoetis to report an EPS of $1.4, indicating no change from the same quarter last year, with expected quarterly revenue of $2.36 billion, up 1.89% year-over-year [2] Full-Year Estimates - The Zacks Consensus Estimates for Zoetis project earnings of $6.34 per share and revenue of $9.44 billion, representing year-over-year increases of +7.09% and +2%, respectively [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Zoetis are crucial as they often indicate shifts in near-term business trends, with positive revisions suggesting a favorable business outlook [3] - The Zacks Rank system, which incorporates estimate changes, has shown that stocks ranked 1 (Strong Buy) have yielded an average annual return of +25% since 1988 [4][5] Valuation Metrics - Zoetis is currently trading at a Forward P/E ratio of 19.3, which is lower than the industry average of 19.43 [6] - The company has a PEG ratio of 2.66, compared to the Medical - Drugs industry average PEG ratio of 1.17 [6] Industry Ranking - The Medical - Drugs industry, which includes Zoetis, holds a Zacks Industry Rank of 70, placing it in the top 29% of over 250 industries [7]

Market Overview - The global agriculture biotechnology market was valued at USD 84.39 billion in 2024 and is projected to reach USD 144.25 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.4% during 2025–2030 [1][3] - Market growth is driven by the rising adoption of genetically modified (GM) crops, microbial biofertilizers, animal vaccines, and sustainable biotechnology-based agricultural inputs aimed at improving productivity and resilience [1][5] Regional Insights - North America currently leads the market, supported by a strong regulatory framework, continuous technological innovation, and the presence of major industry players such as Bayer, Corteva, BASF, and Novonesis [3][12] - Asia Pacific is emerging as the fastest-growing region, driven by rapid biotechnology adoption in countries including India, China, and Australia, along with favorable government initiatives promoting bio-based agriculture [3][12] Key Drivers - The agriculture biotechnology market is primarily driven by the increasing global demand for sustainable and efficient food production systems due to rapid population growth, declining arable land availability, and changing climatic conditions [5][6] - Significant technological advancements in genetic engineering, genome editing (CRISPR-Cas9), and microbial biotechnology are enabling the development of stress-tolerant crops, biofertilizers, and biopesticides [6][9] Market Segmentation - Plant biotechnology and microbial biotechnology segments are expected to account for a significant share of the agriculture biotechnology market, with plant biotechnology remaining dominant due to widespread adoption of GM crops [8][9] - The animal biotechnology segment is expected to register the fastest growth during the forecast period, supported by increasing focus on livestock health, productivity improvement, and sustainable protein production [10][11] Future Outlook - The agriculture biotechnology market is poised for robust growth in the next five years, driven by the convergence of biology, data, and sustainability [15][17] - Key predictions include continued growth in microbial biofertilizers and biostimulants, expansion of gene-editing technologies across commercial crops, and greater adoption of AI-enabled precision agriculture [17]

Core Viewpoint - Zoetis Inc. is conducting a private offering of $1.75 billion aggregate principal amount of 0.25% convertible senior notes due 2029, targeting qualified institutional buyers under Rule 144A of the Securities Act of 1933 [1]. Group 1 - The offering consists of convertible senior notes with a maturity date in 2029 [1]. - The interest rate on the notes is set at 0.25% [1]. - The initial purchasers of the notes have been granted an option, although the specifics of this option are not detailed in the provided text [1].