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DULUTH, Ga., March 15, 2024 /PRNewswire/ -- The Boehringer Ingelheim Cares Foundation, through its Product Donation Program, has made a significant contribution to animal shelters across the country. The Product Donation Program donates Boehringer Ingelheim medicines to approved nonprofit partners who distribute the medicines around the world where there is tremendous unmet need. Continue Reading The Foundation has donated 1.9 million doses of NexGard® PLUS chews, a delicious beef-flavored soft chew, designed to protect dogs from fleas and ticks, prevent heartworm disease, and treat and control roundworms and hookworms. Over 6 million doses of NexGard® PLUS chews have been sold since its launch in 2023. The Boehringer Ingelheim Cares Foundation has donated 1.9 million doses of NexGard® PLUS to animal shelters in need. Post this The donation, valued at $42.6 million, is part of Boehringer's ongoing commitment to support animal health and wellbeing. The company partnered with Greater Good Charities, a renowned organization dedicated to improving the health and well-being of people, pets and the planet, to distribute the products to animal shelters in need. This substantial donation will significantly impact the lives of countless dogs in shelters, providing them with essential protection against harmful parasites. Parasiticides play a crucial role in the adoption of shelter dogs by ensuring they are protected from parasites, thus enhancing their health and making them more appealing to potential adopters. "Boehringer Ingelheim is deeply committed to safeguarding the health and wellbeing of animals in shelters," said Randolph Legg, President and Head of Commercial Business, Boehringer Ingelheim Animal Health USA and board member of the Boehringer Ingelheim Cares Foundation. "Our mission is to ensure they receive the best care possible while they patiently wait for their forever homes. This donation is a testament to our commitment and we hope it will make a significant difference in the lives of animals in need." NexGard® PLUS Important Safety Information NexGard® PLUS (afoxolaner, moxidectin, and pyrantel chewable tablets) are for use in dogs only. The most frequently reported adverse reactions reported in clinical trials were diarrhea, vomiting, lethargy, and itching. Use with caution in dogs with a history of seizures or neurologic disorders. The safe use of NexGard® PLUS has not been evaluated in breeding, pregnant, or lactating dogs. Dogs should be tested for existing heartworm infection prior to starting a heartworm disease preventive. For more information, click here for full prescribing information, or visit NexGardPLUSClinic.com. About Boehringer Ingelheim Animal Health USA Boehringer Ingelheim Animal Health is working on first-in-class innovation for the prediction, prevention, and treatment of diseases in animals. For veterinarians, pet owners, producers, and governments in more than 150 countries, we offer a large and innovative portfolio of products and services to improve the health and well-being of companion animals and livestock. As a global leader in the animal health industry and as part of the family-owned Boehringer Ingelheim, we take a long- term perspective. The lives of animals and humans are interconnected in deep and complex ways. We know that when animals are healthy, humans are healthier too. By using the synergies between our Animal Health and Human Pharma businesses and by delivering value through innovation, we enhance the health and well-being of both. Learn more about Boehringer Ingelheim Animal Health USA at bi-animalhealth.com About Boehringer Ingelheim Cares Foundation Boehringer Ingelheim Cares Foundation is an independent nonprofit organization with a mission to strengthen the communities where our employees live and work by improving the health and well-being of people and animals, with a focus on helping the underserved. The programs we support align with our goals to improve access to healthcare, enhance STEM education, and strengthen the human-animal bond. NexGard® is a registered trademark of Boehringer Ingelheim Animal Health France, used under license. ©2024 Boehringer Ingelheim Animal Health USA Inc., Duluth, GA. All rights reserved. US-PET-0135-2024. SOURCE Boehringer Ingelheim

PARSIPPANY, N.J.--( BUSINESS WIRE )-- Zoetis Inc . (NYSE: ZTS) today reported its financial results for the fourth quarter and full year 2023 as well as provided full year guidance for 2024. The company reported revenue of $2.2 billion for the fourth quarter of 2023, which was an increase of 8% compared with the fourth quarter of 2022, on both a reported and operational 1 basis. Net income for the fourth quarter of 2023 was $525 million, or $1.14 per diluted share, an increase of 14% and 15%, respectively, on a reported basis. Adjusted net income 2 for the fourth quarter of 2023 was $569 million, or $1.24 per diluted share, an increase of 6% and 8%, respectively, on a reported and operational basis. Adjusted net income for the fourth quarter of 2023 excludes the net impact of $44 million for purchase accounting adjustments, acquisition-related costs and certain significant items. For full year 2023, the company reported revenue of $8.5 billion, an increase of 6% compared with full year 2022. On an operational basis, revenue for full year 2023 increased 7%, excluding the impact of foreign currency. Net income for full year 2023 was $2.3 billion, or $5.07 per diluted share, an increase of 11% and 13%, respectively, on a reported basis. Adjusted net income for full year 2023 was $2.5 billion, or $5.32 per diluted share, an increase of 7% and 9%, respectively, on a reported and operational basis. Adjusted net income for full year 2023 excludes the net impact of $113 million for purchase accounting adjustments, acquisition-related costs and certain significant items. EXECUTIVE COMMENTARY “ Zoetis delivered another strong performance in 2023 thanks to our diverse portfolio across markets and species and our dedicated colleagues,” said Kristin Peck, Chief Executive Officer of Zoetis. “ We grew revenue 7% operationally, driven by our innovative companion animal franchises across pain, dermatology and parasiticides. We also grew our adjusted net income 7% operationally, while continuing to support investments in R&D, supply chain, and commercial excellence capabilities that will drive our next phase of growth.” “ We are excited by the momentum of Librela in the U.S. and around the world as we work to build our next billion-dollar franchise. In addition to OA pain, we are well-positioned for growth in our other key franchises, including dermatology, parasiticides and diagnostics, and will continue to invest in solutions that will shape and expand the future of animal health. We are committed to continuing our track record of innovation and growing faster than the market, even during times of global uncertainty, and are guiding to full-year operational growth of 7% to 9% in revenue in 2024,” said Peck. QUARTERLY HIGHLIGHTS Zoetis organizes and manages its commercial operations across two regional segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. In the fourth quarter of 2023: Revenue in the U.S. segment was $1.2 billion, an increase of 9% compared with the fourth quarter of 2022. Sales of companion animal products increased 10%, driven by the company’s monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela ™ for dogs and Solensia ® for cats, as well as the company's flea, tick and heartworm combination product for dogs, Simparica Trio ® . Also contributing to growth in the quarter was the company's dermatology portfolio, including Apoquel ® and Cytopoint ® . Sales of livestock products increased 4% in the quarter. Growth in the poultry product portfolio was the result of favorable rotations back to certain medicated feed additives (MFAs) and the expanded use of Zoamix ® . Sales of both swine and cattle products increased in the quarter, primarily as a result of increased supply of vaccines that were limited in the same quarter the year prior. Revenue in the International segment was $982 million, reflecting a 9% increase on a reported basis and an increase of 8% operationally compared with the fourth quarter of 2022. Sales of companion animal products grew 13% on a reported basis and 10% operationally. Growth in the quarter was driven by the company’s monoclonal antibody products for OA pain, Librela for dogs and Solensia for cats, as well as key dermatology products, Apoquel and Cytopoint. Also contributing to growth in the quarter were Simparica ® and Simparica Trio. Sales of livestock products increased 5% on a reported basis and 7% operationally. Growth in both the company’s cattle and poultry product portfolios were driven largely by price increases across the broader international segment. The fish product portfolio grew as a result of a new vaccine launch in Norway. Sales in the sheep product portfolio declined due to unfavorable market conditions in Australia and New Zealand, while sales in the swine product portfolio decreased in China primarily due to unfavorable market conditions and a difficult comparative period versus the same quarter of the prior year. INVESTMENTS IN GROWTH Zoetis continues to advance innovation and care for animals across the globe. Since its last quarterly earnings announcement, Solensia (frunevetmab injection), the first injectable monoclonal antibody for the alleviation of pain associated with osteoarthritis in cats, received approval in Brazil. Additionally, Simparica Trio (sarolaner/moxidectin/pyrantel), the company’s triple combination oral parasiticide for dogs, was approved in China. The company expanded its Vetscan Imagyst ™ diagnostics platform in the U.S. to include new applications for artificial intelligence (AI) urine sediment analysis for dogs and cats. On the livestock side of the business, Zoetis received approval in Mexico for Poulvac ® Procerta ® HVT-IBD-ND , a part of the company’s recombinant vector vaccine portfolio for poultry, which provides early, robust protection against Marek’s, infectious bursal and Newcastle disease viruses with one dose. Poulvac Procerta HVT-IBD , which provides protection against Marek’s and infectious bursal viruses, was approved in the EU. Zoetis also continues to grow key product franchises through additional claim extensions in major markets. In the fourth quarter, Simparica Trio received approval in Japan for claims related to efficacy against sarcoptic and demodectic manges. Revolution ® Plus (selamectin/sarolaner), the company’s topical combination product that treats ticks, fleas, ear mites, lice and gastrointestinal worms and prevents heartworm disease in cats, received approval in the U.S. for claims related to the treatment and control of lone star tick infestations, making it the only parasiticide for cats on the market to defend against four types of ticks. FINANCIAL GUIDANCE Zoetis is providing full year 2024 guidance, which includes: Revenue between $9.075 billion to $9.225 billion ( operational growth of 7% to 9%) Reported net income between $2.468 billion to $2.513 billion Adjusted net income between $2.650 billion to $2.700 billion ( operational growth of 9% to 11%) Reported diluted EPS between $5.34 to $5.44 Adjusted diluted EPS between $5.74 to $5.84 This guidance reflects foreign exchange rates as of late January 2024. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning. WEBCAST & CONFERENCE CALL DETAILS Zoetis will host a webcast and conference call at 8:30 a.m. (ET) today, during which company executives will review fourth quarter and full year 2023 results, discuss financial guidance and respond to questions from financial analysts. Investors and the public may access the live webcast by visiting the Zoetis website at http://investor.zoetis.com/events-presentations . A replay of the webcast will be archived and made available on February 13, 2024. About Zoetis As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $8.5 billion in 2023 with approximately 14,100 employees. For more information, visit www.zoetis.com . 1 Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. 2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition-related costs and certain significant items. DISCLOSURE NOTICES Forward-Looking Statements : This press release 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; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; disruptions in our global supply chain; 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. Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share and operational results (which exclude the impact of foreign exchange), 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 press release 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 this press release and are posted on our website at www.zoetis.com . Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at www.zoetis.com , as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information. ZTS-COR ZTS-IR ZTS-FIN ZOETIS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a) (UNAUDITED) (millions of dollars, except per share data) Three Months Ended December 31, % Change Twelve Months Ended December 31, % Change 2023 2022 2023 2022 Revenue $ 2,213 $ 2,040 8 $ 8,544 $ 8,080 6 Costs and expenses: Cost of sales 728 653 11 2,561 2,454 4 Selling, general and administrative expenses 565 514 10 2,151 2,009 7 Research and development expenses 174 148 18 614 539 14 Amortization of intangible assets 37 35 6 149 150 (1 ) Restructuring charges and certain acquisition-related costs 8 2 * 53 11 * Interest expense 59 62 (5 ) 239 221 8 Other (income)/deductions–net (8 ) 34 * (159 ) 40 * Income before provision for taxes on income 650 592 10 2,936 2,656 11 Provision for taxes on income 127 132 (4 ) 596 545 9 Net income before allocation to noncontrolling interests 523 460 14 2,340 2,111 11 Less: Net loss attributable to noncontrolling interests (2 ) (1 ) * (4 ) (3 ) 33 Net income attributable to Zoetis $ 525 $ 461 14 $ 2,344 $ 2,114 11 Earnings per share—basic $ 1.14 $ 0.99 15 $ 5.08 $ 4.51 13 Earnings per share—diluted $ 1.14 $ 0.99 15 $ 5.07 $ 4.49 13 Weighted-average shares used to calculate earnings per share Basic 459.0 465.6 461.2 468.9 Diluted 460.1 466.8 462.3 470.4 (a) The Condensed Consolidated Statements of Income present the three and twelve months ended December 31, 2023 and 2022. Subsidiaries operating outside the U.S. are included for the three and twelve months ended November 30, 2023 and 2022. * Calculation not meaningful. ZOETIS INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) Three Months Ended December 31, 2023 GAAP Reported (a) Purchase Accounting Adjustments Acquisition- Related Costs (1) Certain Significant Items (2) Non-GAAP Adjusted (b) Cost of sales $ 728 $ — $ — $ (1 ) $ 727 Gross profit 1,485 — — 1 1,486 Selling, general and administrative expenses 565 (3 ) — — 562 Research and development expenses 174 — — — 174 Amortization of intangible assets 37 (32 ) — — 5 Restructuring charges and certain acquisition-related costs 8 — (1 ) (7 ) — Other (income)/deductions–net (8 ) — — (4 ) (12 ) Income before provision for taxes on income 650 35 1 12 698 Provision for taxes on income 127 6 1 (3 ) 131 Net income attributable to Zoetis 525 29 — 15 569 Earnings per common share attributable to Zoetis–diluted 1.14 0.07 — 0.03 1.24 Three Months Ended December 31, 2022 GAAP Reported (a) Purchase Accounting Adjustments Acquisition- Related Costs (1) Certain Significant Items (2) Non-GAAP Adjusted (b) Cost of sales $ 653 $ (3 ) $ — $ — $ 650 Gross profit 1,387 3 — — 1,390 Selling, general and administrative expenses 514 (7 ) — — 507 Research and development expenses 148 (1 ) — — 147 Amortization of intangible assets 35 (29 ) — — 6 Restructuring charges and certain acquisition-related costs 2 — (1 ) (1 ) — Other (income)/deductions–net 34 — — (45 ) (11 ) Income before provision for taxes on income 592 40 1 46 679 Provision for taxes on income 132 12 — (3 ) 141 Net income attributable to Zoetis 461 28 1 49 539 Earnings per common share attributable to Zoetis–diluted 0.99 0.06 — 0.10 1.15 (a) The Condensed Consolidated Statements of Income present the three months ended December 31, 2023 and 2022. Subsidiaries operating outside the U.S. are included for the three months ended November 30, 2023 and 2022. (b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). ZOETIS INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) Twelve Months Ended December 31, 2023 GAAP Reported (a) Purchase Accounting Adjustments Acquisition- Related Costs (1) Certain Significant Items (2) Non-GAAP Adjusted (b) Cost of sales $ 2,561 $ (10 ) $ — $ (3 ) $ 2,548 Gross profit 5,983 10 — 3 5,996 Selling, general and administrative expenses 2,151 (21 ) — — 2,130 Research and development expenses 614 (1 ) — — 613 Amortization of intangible assets 149 (127 ) — — 22 Restructuring charges and certain acquisition-related costs 53 — (9 ) (44 ) — Other (income)/deductions–net (159 ) — — 80 (79 ) Income before provision for taxes on income 2,936 159 9 (33 ) 3,071 Provision for taxes on income 596 32 2 (12 ) 618 Net income attributable to Zoetis 2,344 127 7 (21 ) 2,457 Earnings per common share attributable to Zoetis–diluted 5.07 0.28 0.02 (0.05 ) 5.32 Twelve Months Ended December 31, 2022 GAAP Reported (a) Purchase Accounting Adjustments Acquisition- Related Costs (1) Certain Significant Items (2) Non-GAAP Adjusted (b) Cost of sales $ 2,454 $ (6 ) $ — $ (8 ) $ 2,440 Gross profit 5,626 6 — 8 5,640 Selling, general and administrative expenses 2,009 (29 ) — — 1,980 Research and development expenses 539 (1 ) — — 538 Amortization of intangible assets 150 (124 ) — — 26 Restructuring charges and certain acquisition-related costs 11 — (5 ) (6 ) — Other (income)/deductions–net 40 — — (42 ) (2 ) Income before provision for taxes on income 2,656 160 5 56 2,877 Provision for taxes on income 545 40 1 (3 ) 583 Net income attributable to Zoetis 2,114 120 4 59 2,297 Earnings per common share attributable to Zoetis–diluted 4.49 0.26 0.01 0.12 4.88 (a) The Condensed Consolidated Statements of Income present the twelve months ended December 31, 2023 and 2022. Subsidiaries operating outside the U.S. are included for the twelve months ended November 30, 2023 and 2022. (b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). ZOETIS INC. NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars) (1) Acquisition-related costs include the following: Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Transaction costs (a) $ — $ 1 $ 4 $ 1 Integration costs (b) — — 3 4 Restructuring charges (c) 1 — 2 — Total acquisition-related costs—pre-tax 1 1 9 5 Income taxes (d) 1 — 2 1 Total acquisition-related costs—net of tax $ — $ 1 $ 7 $ 4 (a) Transaction costs represent external costs directly related to acquiring businesses and primarily includes expenditures for banking, legal, accounting and other similar services. Included in Restructuring charges and certain acquisition-related costs . (b) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes. Included in Restructuring charges and certain acquisition-related costs . (c) Restructuring charges represent employee termination costs, included in Restructuring charges and certain acquisition-related costs. (d) Included in Provision for taxes on income . Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. (2) Certain significant items include the following: Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Other restructuring charges and cost-reduction/productivity initiatives (a) $ 8 $ 1 $ 44 $ 8 Certain asset impairment charges (b) 3 41 24 47 Net gain on sale of businesses (c) — — (101 ) — Other 1 4 — 1 Total certain significant items—pre-tax 12 46 (33 ) 56 Income taxes (d) (3 ) (3 ) (12 ) (3 ) Total certain significant items—net of tax $ 15 $ 49 $ (21 ) $ 59 (a) For the three and twelve months ended December 31, 2023, primarily represents employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives, primarily included in Restructuring charges and certain acquisition-related costs. For the twelve months ended December 31, 2022, primarily represents employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets, included in Restructuring charges and certain acquisition-related costs , as well as product transfer costs, included in Cost of sales. (b) For the twelve months ended December 31, 2023, primarily represents certain asset impairment charges related to our precision animal health and diagnostics businesses, primarily included in Other (income)/deductions–net . For the three and twelve months ended December 31, 2022, primarily represents asset impairment charges related to customer relationships, developed technology rights and property, plant and equipment in our diagnostics, poultry, cattle and swine businesses, included in Other (income)/deductions-net. (c) Primarily represents a net gain on the sale of a majority interest in our pet insurance business, included in Other (income)/deductions–net . (d) Included in Provision for taxes on income . Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. Income taxes in Certain significant items also includes: For the three and twelve months ended December 31, 2023, includes a tax expense related to changes to prior years' tax positions with regard to the one-time mandatory deemed repatriation tax under the Tax Cuts and Jobs Act. For the twelve months ended December 31, 2023, also includes a benefit from the tax loss on the divestiture of Performance Livestock Analytics. For the three and twelve months ended December 31, 2022, includes a tax charge related to changes in uncertain tax positions. For the twelve months ended December 31, 2022, also includes a tax charge related to changes in valuation allowances related to impairment of certain assets. ZOETIS INC. ADJUSTED SELECTED COSTS AND EXPENSES (a) (UNAUDITED) (millions of dollars) Three Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (b) Adjusted cost of sales $ 727 $ 650 12 % 3 % 9 % As a percent of revenue 32.9 % 31.9 % NA NA NA Adjusted SG&A expenses 562 507 11 % 1 % 10 % Adjusted R&D expenses 174 147 18 % 1 % 17 % Adjusted net income attributable to Zoetis 569 539 6 % — % 6 % Twelve Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (b) Adjusted cost of sales $ 2,548 $ 2,440 4 % (4 )% 8 % As a percent of revenue 29.8 % 30.2 % NA NA NA Adjusted SG&A expenses 2,130 1,980 8 % (1 )% 9 % Adjusted R&D expenses 613 538 14 % — % 14 % Adjusted net income attributable to Zoetis 2,457 2,297 7 % — % 7 % (a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition-related costs, and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information. (b) Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. ZOETIS INC. 2024 GUIDANCE Selected Line Items (millions of dollars, except per share amounts) Full Year 2024 Revenue $9,075 to $9,225 Operational growth (a) 7% to 9% Adjusted cost of sales as a percentage of revenue (b) Approximately 29.5% Adjusted SG&A expenses (b) $2,170 to $2,220 Adjusted R&D expenses (b) $665 to $675 Adjusted interest expense and other (income)/deductions-net (b) Approximately $210 Effective tax rate on adjusted income (b) 20.0% to 21.0% Adjusted diluted EPS (b) $5.74 to $5.84 Adjusted net income (b) $2,650 to $2,700 Operational growth (a)(c) 9% to 11% Certain significant items and acquisition-related costs (d) $70 - $75 The guidance reflects foreign exchange rates as of late January 2024. Reconciliations of 2024 reported guidance to 2024 adjusted guidance follows: (millions of dollars, except per share amounts) Reported Certain significant items and acquisition-related costs (d) Purchase accounting Adjusted (b) Cost of sales as a percentage of revenue ~ 29.6% ~ (0.1%) ~ 29.5% SG&A expenses $2,191 to $2,241 ~ $(21) $2,170 to $2,220 R&D expenses $666 to $676 ~ $(1) $665 to $675 Interest expense and other (income)/deductions ~ $240 ~ $30 ~ $270 Effective tax rate 20.0% to 21.0% 20.0% to 21.0% Diluted EPS $5.34 to $5.44 ~ $0.16 ~ $0.24 $5.74 to $5.84 Net income attributable to Zoetis $2,468 to $2,513 $70 - $75 ~ $112 $2,650 to $2,700 (a) Operational growth (a non-GAAP financial measure) excludes the impact of foreign exchange. (b) Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. (c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational growth to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. (d) Primarily includes certain nonrecurring costs related to acquisitions and other charges. ZOETIS INC. CONSOLIDATED REVENUE BY SEGMENT (a) AND SPECIES (UNAUDITED) (millions of dollars) Three Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (b) Revenue: Companion Animal $ 1,448 $ 1,303 1 % 1 % 10 % Livestock 745 710 5 % (1 )% 6 % Contract Manufacturing & Human Health 20 27 (26 )% 1 % (27 )% Total Revenue $ 2,213 $ 2,040 8 % — % 8 % U.S. Companion Animal $ 941 $ 853 10 % — % 10 % Livestock 270 259 4 % — % 4 % Total U.S. Revenue $ 1,211 $ 1,112 9 % — % 9 % International Companion Animal $ 507 $ 450 13 % 3 % 10 % Livestock 475 451 5 % (2 )% 7 % Total International Revenue $ 982 $ 901 9 % 1 % 8 % Companion Animal: Dogs and Cats $ 1,360 $ 1,224 11 % 1 % 10 % Horses 88 79 11 % — % 11 % Total Companion Animal Revenue $ 1,448 $ 1,303 11 % 1 % 10 % Livestock: Cattle $ 401 $ 377 6 % (1 )% 7 % Swine 139 138 1 % 1 % — % Poultry 127 115 10 % (3 )% 13 % Fish 62 61 2 % (3 )% 5 % Sheep and other 16 19 (16 )% 1 % (17 )% Total Livestock Revenue $ 745 $ 710 5 % (1 )% 6 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. ZOETIS INC. CONSOLIDATED REVENUE BY SEGMENT (a) AND SPECIES (UNAUDITED) (millions of dollars) Twelve Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (b) Revenue: Companion Animal $ 5,576 $ 5,203 7 % (1 )% 8 % Livestock 2,890 2,791 4 % (2 )% 6 % Contract Manufacturing & Human Health 78 86 (9 )% 1 % (10 )% Total Revenue $ 8,544 $ 8,080 6 % (1 )% 7 % U.S. Companion Animal $ 3,529 $ 3,341 6 % — % 6 % Livestock 1,026 972 6 % — % 6 % Total U.S. Revenue $ 4,555 $ 4,313 6 % — % 6 % International Companion Animal $ 2,047 $ 1,862 10 % (2 )% 12 % Livestock 1,864 1,819 2 % (5 )% 7 % Total International Revenue $ 3,911 $ 3,681 6 % (3 )% 9 % Companion Animal: Dogs and Cats $ 5,291 $ 4,939 7 % (1 )% 8 % Horses 285 264 8 % (1 )% 9 % Total Companion Animal Revenue $ 5,576 $ 5,203 7 % (1 )% 8 % Livestock: Cattle $ 1,503 $ 1,440 4 % (3 )% 7 % Swine 543 565 (4 )% (2 )% (2 )% Poultry 524 476 10 % (3 )% 13 % Fish 220 212 4 % (4 )% 8 % Sheep and other 100 98 2 % (6 )% 8 % Total Livestock Revenue $ 2,890 $ 2,791 4 % (2 )% 6 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. ZOETIS INC. CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS (UNAUDITED) (millions of dollars) Three Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (a) Total International $ 982.1 $ 901.3 9 % 1 % 8 % Australia 75.0 64.2 17 % (2 )% 19 % Brazil 117.2 96.2 22 % 7 % 15 % Canada 71.1 65.2 9 % (2 )% 11 % Chile 31.4 34.8 (10 )% 1 % (11 )% China 64.7 91.4 (29 )% (1 )% (28 )% France 40.5 35.1 15 % 8 % 7 % Germany 54.1 44.0 23 % 8 % 15 % Italy 33.9 25.6 32 % 9 % 23 % Japan 38.0 36.1 5 % (4 )% 9 % Mexico 43.3 35.6 22 % 14 % 8 % Spain 27.3 21.3 28 % 9 % 19 % United Kingdom 67.9 60.3 13 % 9 % 4 % Other Developed 138.3 114.6 21 % 4 % 17 % Other Emerging 179.4 176.9 1 % (13 )% 14 % Twelve Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (a) Total International $ 3,911.2 $ 3,680.8 6 % (3 )% 9 % Australia 322.7 288.7 12 % (5 )% 17 % Brazil 392.7 329.5 19 % 4 % 15 % Canada 254.6 237.5 7 % (5 )% 12 % Chile 140.2 141.1 (1 )% 1 % (2 )% China 320.0 382.4 (16 )% (5 )% (11 )% France 142.4 126.1 13 % 2 % 11 % Germany 202.4 176.3 15 % 3 % 12 % Italy 120.8 111.2 9 % 3 % 6 % Japan 157.9 173.1 (9 )% (8 )% (1 )% Mexico 162.4 136.2 19 % 13 % 6 % Spain 121.6 117.8 3 % 1 % 2 % United Kingdom 277.0 234.5 18 % (1 )% 19 % Other Developed 512.2 468.4 9 % (2 )% 11 % Other Emerging 784.3 758.0 3 % (13 )% 16 % (a) Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. ZOETIS INC. SEGMENT (a) EARNINGS (UNAUDITED) (millions of dollars) Three Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (b) U.S.: Revenue $ 1,211 $ 1,112 9 % — % 9 % Cost of sales 255 216 18 % — % 18 % Gross profit 956 896 7 % — % 7 % Gross margin 78.9 % 80.6 % Operating expenses 184 187 (2 )% — % (2 )% Other (income)/deductions-net 6 (12 ) * * * U.S. Earnings $ 766 $ 721 6 % — % 6 % International: Revenue $ 982 $ 901 9 % 1 % 8 % Cost of sales 322 274 18 % 1 % 17 % Gross profit 660 627 5 % — % 5 % Gross margin 67.2 % 69.6 % Operating expenses 165 155 6 % 1 % 5 % Other (income)/deductions-net 1 2 * * * International Earnings $ 494 $ 470 5 % — % 5 % Total Reportable Segments $ 1,260 $ 1,191 6 % — % 6 % Other business activities (c) (142 ) (109 ) 30 % Reconciling Items: Corporate (d) (320 ) (302 ) 6 % Purchase accounting adjustments (e) (35 ) (40 ) (13 )% Acquisition-related costs (f) (1 ) (1 ) — % Certain significant items (g) (12 ) (46 ) (74 )% Other unallocated (h) (100 ) (101 ) (1 )% Total Earnings (i) $ 650 $ 592 10 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. (c) Other business activities reflect the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. (d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. (e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. (f) Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. (g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition and the impact of divestiture-related gains and losses. (h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. (i) Defined as income before provision for taxes on income. * Calculation not meaningful. ZOETIS INC. SEGMENT (a) EARNINGS (UNAUDITED) (millions of dollars) Twelve Months Ended December 31, % Change 2023 2022 Total Foreign Exchange Operational (b) U.S.: Revenue $ 4,555 $ 4,313 6 % — % 6 % Cost of sales 900 803 12 % — % 12 % Gross profit 3,655 3,510 4 % — % 4 % Gross margin 80.2 % 81.4 % Operating expenses 786 765 3 % — % 3 % Other (income)/deductions-net 6 (18 ) * * * U.S. Earnings $ 2,863 $ 2,763 4 % — % 4 % International: Revenue $ 3,911 $ 3,681 6 % (3 )% 9 % Cost of sales 1,234 1,083 14 % (5 )% 19 % Gross profit 2,677 2,598 3 % (2 )% 5 % Gross margin 68.4 % 70.6 % Operating expenses 638 611 4 % (4 )% 8 % Other (income)/deductions-net 2 (3 ) * * * International Earnings $ 2,037 $ 1,990 2 % (2 )% 4 % Total Reportable Segments $ 4,900 $ 4,753 3 % (1 )% 4 % Other business activities (c) (496 ) (424 ) 17 % Reconciling Items: Corporate (d) (1,042 ) (1,073 ) (3 )% Purchase accounting adjustments (e) (159 ) (160 ) (1 )% Acquisition-related costs (f) (9 ) (5 ) 80 % Certain significant items (g) 33 (56 ) * Other unallocated (h) (291 ) (379 ) (23 )% Total Earnings (i) $ 2,936 $ 2,656 11 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. (c) Other business activities reflect the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. (d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. (e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. (f) Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. (g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition and the impact of divestiture-related gains and losses. (h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. (i) Defined as income before provision for taxes on income. * Calculation not meaningful.

The rapid diagnostic test provides a comprehensive solution for detecting canine leishmaniosis that impacts one in 10 dogs in endemic regions WESTBROOK, Maine, Nov. 8, 2023 /PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, announced the upcoming launch of the SNAP® Leish 4Dx® Test, a comprehensive screening test for vector-borne diseases, including canine leishmaniosis. The SNAP Leish 4Dx Test uses the trusted SNAP 4Dx Plus testing platform, which detects Lyme disease, heartworm disease, ehrlichiosis, and anaplasmosis. By replacing Lyme disease detection with detection of leishmaniosis, a more prevalent endemic disease in certain regions of the world, the SNAP Leish 4Dx Test supports vector-borne disease diagnosis globally. The test will be available in Europe and Asia beginning February 2024. Continue Reading IDEXX Laboratories Leishmaniosis is a potentially fatal zoonotic disease transmitted to dogs by sand flies commonly found in tropical and subtropical regions of Europe, Asia, Africa, and South and Central America. Early detection is key; any dog living in or traveling to these endemic regions is susceptible to infection and should be tested, as the disease can be fatal if left untreated. Infected dogs can remain asymptomatic for months to years, making testing for leishmaniosis an essential component of annual wellness screens. "In Leishmania-endemic areas globally, where one in 10 dogs tested may be positive, it's critical for practitioners to screen healthy dogs annually for Leishmania antibodies, along with other common vector-borne pathogens, using a qualitative, comprehensive test with sufficient sensitivity and specificity at the point-of-care," said Professor Guadalupe Miró, DEVPC, Veterinary Faculty, Universidad Complutense of Madrid, Spain. "For Leishmania-seropositive dogs, it's also extremely important to quantify infection level and consider results from chemistry, CBC differentials, and urinalysis, so veterinarians can best determine a treatment or monitoring plan." The launch of the SNAP Leish 4Dx Test provides veterinarians with an end-to-end solution for vector-borne disease testing, including: The ability to screen for heartworm disease, ehrlichiosis, anaplasmosis, and leishmaniosis with a single sample during the patient visit. Streamlined reference laboratory follow-up testing for quantification of SNAP positives and the opportunity to perform additional follow-up testing in-clinic or at IDEXX Reference Laboratories. Compatibility with the SNAP Pro® Analyzer, which supports an efficient practice workflow by automatically activating and interpreting test results and facilitating seamless charge capture. Ongoing support and education to keep veterinary staff up-to-date with the latest resources to help protect pets and their families. "Parasites and vector-borne diseases like leishmaniosis are an increasing risk to the health of pets globally," said Jay Mazelsky, IDEXX President and Chief Executive Officer. "This expansion of our SNAP franchise demonstrates our commitment to expanding our vector-borne disease offering to support veterinarians worldwide in their mission to deliver a higher standard of care for pets." For more information about the SNAP platform, please visit idexx.com/en/veterinary/products/snap-tests/ About IDEXX IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500® Index. Headquartered in Maine, IDEXX employs nearly 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit idexx.com. Note Regarding Forward-Looking Statements This news release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "expects," "may," "anticipates," "intends," "would," "will," "plans," "believes," "estimates," "should," "project," and similar words and expressions. These forward-looking statements are intended to provide our current expectations or forecasts of future events; are based on current estimates, projections, beliefs, and assumptions; and are not guarantees of future performance. Actual events or results may differ materially from those described in the forward-looking statements. These statements are subject to risks, uncertainties, assumptions, and other important factors. Readers are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. The reports filed by IDEXX pursuant to United States securities laws contain discussions of some of these risks and uncertainties. IDEXX assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are advised to review IDEXX's filings with the United States Securities and Exchange Commission (which are available from the SEC's EDGAR database at sec.gov and via IDEXX's website at idexx.com). SOURCE IDEXX Laboratories, Inc.