Zoetis Inc.

“Zoetis Inc. is a global leader in the animal health industry, focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health.”

“United States (U.S.) with revenue of $5,097 million, or 54% of total revenue for the year ended December 31, 2025; and International with revenue of $4,254 million, or 45% of total revenue”

“Companion animal products represented approximately 70% of our revenue for the year ended December 31, 2025.”

“commercializing products across eight core species: dogs, cats and horses (collectively, companion animals) and cattle, swine, poultry, fish and sheep (collectively, livestock)”

“We directly market our products to veterinarians and livestock producers located in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America, and are a market leader in nearly all of the major regions in which we operate. In markets where we do not have a direct commercial presence, we generally contract with distributors”

“within seven major product categories: parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical and animal health diagnostics”

“our Client Supply Services (CSS) organization, which provides contract manufacturing services to third parties, and our human health products, together represented approximately 1% of our total revenue for the year ended December 31, 2025”

“Australia$32953%47% Brazil$39338%62% Canada$29061%39% Chile$13924%76% China$22772%28% France$16568%32%”

“Companion animal$6,587 $6,278 $5,576 5 13 Livestock2,764 2,898 2,890 (5)— Contract manufacturing & human health116 80 78 45 3”

“Many of our products involve complex manufacturing processes and are sole-sourced from certain manufacturing sites.”

“Certain third-party suppliers may be the sole or exclusive source of certain products, materials and services necessary for production of our products.”

“Draxxin currently competes with generic products in key markets including the U.S., Europe, Canada, Mexico and Australia. Since 2021, the first year of generic competition, sales of Draxxin declined by 66% in the U.S., its largest market.”

“human population growth and increasing standards of living, particularly in many emerging markets; •increasing demand for improved nutrition, particularly animal protein;”

“increasing pet owners’ commitment to the health and well-being of their pets; •economic development and related increases in disposable income, particularly in many emerging markets; •companion animals living longer;”

“On October 31, 2024, we completed the divestiture of our medicated feed additive product portfolio, certain water soluble products and related assets”

“Although our business is the largest based on revenue in the animal health industry (which includes medicines, vaccines and diagnostics), we face competition in the regions in which we operate.”

“we focus on the discovery and development of new chemical, biopharmaceutical and biological entities, as well as product lifecycle innovation, primarily through our research and development (R&D) group”

“As of December 31, 2025, we had approximately $9.2 billion of total unsecured indebtedness outstanding related to our senior notes and convertible senior notes. In addition, we currently have agreements for a $1.25 billion multi-year revolving credit facility and a $1.0 billion commercial paper program”

“we expect to eliminate the one-month reporting lag in 2026 for our International Subsidiaries, effective beginning with the Company’s first quarterly report in 2026, which would result in an alignment of the year-end for all subsidiaries and operations to December 31”

“price growth of approximately 4%; •volume growth from other in-line products of approximately 1%; and •volume growth from key franchises of approximately 1%, partially offset by: •volume decrease related to the impact of the divestiture”

“Our results of operations are dependent upon the success of our top-selling products.”

“our manufacturing facilities are subject to periodic inspections by regulatory agencies, such as the FDA, the USDA and foreign equivalents”

“Unanticipated safety, quality or efficacy concerns have, and could in the future, arise with respect to our products, whether or not scientifically or clinically supported”

“in September 2024, the IRS issued a Revenue Agent Report related to the one-time mandatory deemed repatriation tax. Based on current facts and circumstances, we disagree with the IRS' position”

“In recent years, there has been an increase in consolidation in the animal health industry, which could result in existing competitors realizing additional efficiencies or improving portfolio bundling opportunities”

“Labor costs and the materials used to manufacture our products may be subject to availability constraints and price volatility caused by changes in demand, weather conditions, supply conditions, government regulations, evolving trade policies (including the imposition of tariffs)”

“in the past, our revenue in certain emerging markets in Latin America has been adversely impacted by currency fluctuations and devaluations”

“Our R&D relies on evaluations in animals, which may become subject to bans or additional restrictive regulations.”

“demand for our products has historically been more stable than demand for other production inputs. Each of these factors, plus our broad and innovative portfolio, contributes to our ability to incorporate inflationary challenges into our product pricing”

“place, including China, and, if we were to need to repatriate or convert such cash, these controls and restrictions may have a material adverse effect”