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LEADING THE MARKET IN ANIMAL HEALTH

JUAN RAMÓN ALAIX

CHIEF EXECUTIVE OFFICER

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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, expectations regarding products, 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 and dividend payments, tax rate and tax regimes, changes in the tax regimes and laws in other jurisdictions, 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 EBIT margin, adjusted R&D investment, normalized organic

operational growth, organic operational growth, and operational results (which excludes 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

presentation should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and revenue

growth, 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. Reconciliation of non-GAAP financial measures and GAAP financial measures are posted on our

website at www.zoetis.com.

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AGENDA

• Track Record of Results

• Competitive Advantages

• Animal Health Trends

• Investing in Future Growth

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ACHIEVING FINANCIAL RESULTS

709790

889975

1,185

24% 25%

28%

32%34%

Adjusted Net Income ($M) Adjusted EBIT Margin

4%

6% 7%

6%

4%

6%7% 7%

8% 8% 8% 8%

Market Revenue Growth Zoetis Revenue Growth

‡

1 Source: Vetnosis2 Operational revenue growth is defined as revenue growth excluding the impact of foreign exchange3 Adjusted net income and its components are defined as reported U.S. generally accepted accounting principles (GAAP) net income and its components excluding purchase accounting adjustments, acquisition-related costs and certain significant items.

Adjusted Earnings Before Interest and Taxes (EBIT) excludes interest expense net of capitalized interest, interest income and adjusted income taxes.†Normalized organic operational growth, a non-GAAP financial measure, excludes the impact of foreign exchange, operational efficiency initiative and acquisitions‡Organic operational growth, a non-GAAP financial measure, excludes the impact of the acquisition of Abaxis, as well as foreign exchange; if included, Zoetis Q3 YTD operational revenue growth is 9%

MARKET REVENUE GROWTH RATES1

VS. ZOETIS REVENUE OPERATIONAL2

GROWTH RATES

ZOETIS ADJUSTED NET INCOME3 AND ADJUSTED EBIT3 MARGINS

†

51 R&D Guidance midpoint as of November 1, 20182 Represents adjusted research and development, which is defined as reported U.S. generally accepted accounting principles (GAAP) research and development excluding purchase accounting adjustments,

acquisition-related costs and certain significant items.3 Estimate for 2018 4Through the first nine months of 2018

2018: CAPITAL ALLOCATION FOR GROWTH AND CREATION OF SHAREHOLDER VALUE

$425M1

Adjusted R&D

Investment2

~$325M3

CapEx

~$2B4

Business

Development~$2.8B

~$245M3

Dividends

~$700M3

Share

Repurchases

~$945M

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OUR COMPETITIVE ADVANTAGES

1

2

3

5

6

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Leadership in Innovation

Direct Access to Customers

High Quality Manufacturing & Supply

Diverse Global Portfolio

Track Record of Execution

Results-Driven Culture

Financial Strength and Investment

Focus7

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2018 MARKET POSITIONBY SPECIES

Cattle #1

Fish3 #1

Swine #2

Companion Animal #2

Poultry #4

2018 MARKET POSITIONBY PRODUCT CATEGORY

Other Pharma2 #1

Anti-Infectives #1

Medicated Feed Additives

(MFA)#2

Vaccines (Biologicals) #3

Parasiticides #4

WORLDWIDE MARKET LEADER1

WELL-POSITIONED ACROSS ANIMAL HEALTH;CONTINUE GROWING FASTER THAN THE OVERALL MARKET

1 Vetnosis 2018 Q3 Year-to-Date Quarterly Management Report 2 Includes pain, sedation, internal medicine, dermatology etc.3 Internal sales estimate based on distribution channels for 2018 Q3 Year-to-Date

2018 MARKET POSITIONBY GEOGRAPHY

North America #1

Latin America #2

Asia #2

Rest of World #2

Eastern Europe #2

Western Europe #3

Worldwide AH Market Leader in Total Revenue

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2018: DIVERSE PORTFOLIO AND NEW BLOCKBUSTERS

LIFECYCLE

INNOVATIONS

M&A AND

PARTNERSHIPSBLOCKBUSTERS

The average age of top 25 product lines and products is approx. 28 years1

1 Based on 2017 sales data. Age refers to the number of years a product has been commercially available. Top products each contribute at least 1% of total revenue.

All trademarks are the property of Zoetis Services LLC or a related company or a licensor unless otherwise noted.

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ANIMAL HEALTH INDUSTRY FUNDAMENTALS

AT THE CORE OF A $150+ BILLION INDUSTRY

COMPANION ANIMAL

LIVESTOCK

• Diagnostics

• Vet Services

• OTC Health

• Pet Supplies

• Diagnostics

• Genetics

• BioDevices

• Herd Health

Management

• Nutrition

• Food Safety

~$34 Billion1

• Medicines

• Vaccines

• Medicated Feed

Additives

• Parasiticides

ANIMALHEALTH

POPULATION

GROWTH

A RISING

MIDDLE CLASS

INCREASING

URBANIZATION

PREDICTABLE AND SUSTAINABLE GROWTH DRIVERS

1 Vetnosis

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Growth in

developing markets

KEY TRENDS IN ANIMAL HEALTH

Greater pet owner &

consumer influence

Continuing

customer evolution

Data & digital

enablement

Enhanced focus on

livestock productivity &

sustainability

Rising value of innovation

1 2 3

4 5 6

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MAXIMIZE PROFITABLE REVENUE GROWTH THROUGH STRATEGIC PRIORITIES

Bring innovative products to market

Maintain a diversified, market-leading portfolio and leverage its breadth

Maximize opportunities in fast-growing international markets

Develop data and digital solutions

Support our own - and our customers’ - direct engagement with pet owners and consumers

Enhance capabilities across continuum of care

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INNOVATING ACROSS THE CONTINUUM OF CARE

INTERNAL CAPABILITIES COMPLEMENTED WITH EXTERNAL PARTNERSHIPS

PREDICT DETECT TREATPREVENT

GENETICSDIAGNOSTICS

DATA

ANALYTICS

& SENSORS

VACCINES,

ROBOTICS &

AUTOMATION

MEDICINES

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DELIVERING ON OUR LONG-TERM VALUE PROPOSITION TO SHAREHOLDERS

1Adjusted Net Income is a non-GAAP measure and defined as the corresponding reported U.S. generally accepted accounting principles (GAAP) income statement line item,

excluding purchase accounting adjustments, acquisition-related costs and certain significant items. The adjusted net income measure is not, and should not be, viewed as a

substitute for U.S. GAAP reported net income attributable to Zoetis.

GROW REVENUE IN LINE WITH OR FASTER THAN THE MARKET

TARGET VALUE-ADDED INVESTMENT OPPORTUNITIES

GROW ADJUSTED NET INCOME1

FASTER THAN REVENUE

RETURN EXCESS CAPITAL TO SHAREHOLDERS

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KEY TAKEAWAYS

• Market leader in attractive, sustainable, growing

industry

• Steady, predictable results based on proven

business model, capabilities and culture

• Diverse portfolio and integrated solutions serve

evolving customer needs across continuum of care

• Financial strength and cash flow used to invest in

key growth opportunities