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INVESTING FOR GROWTH IN ANIMAL HEALTH JUAN RAMÓN ALAIX

CHIEF EXECUTIVE OFFICER

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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 operational 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. Reconciliation of non-GAAP financial measures and GAAP financial

measures are included in the tables accompanying our earnings release and are posted on our website at www.zoetis.com.

FORWARD-LOOKING STATEMENTS

NON-GAAP FINANCIAL 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, expectations regarding products, future use of cash and dividend payments, tax rate and tax regimes, changes in the tax regimes and laws in other jurisdictions, expectations

regarding business development transactions, 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 Annual Report on Form 10-K for the fiscal year

ended December 31, 2016, including in the sections thereof captioned “Forward-Looking Information 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.

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AGENDA

• GROWTH DRIVERS AND TRENDS IN ANIMAL HEALTH

• BUILDING ON CORE STRENGTHS AND PERFORMANCE

• INVESTING IN FUTURE GROWTH AND VALUE CREATION

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ANIMAL HEALTH INDUSTRY: STEADY, PREDICTABLE AND GROWING

1 Based on internal estimates 2 Vetnosis 2017 Review 3 Operational revenue growth is defined as revenue growth excluding the impact of foreign exchange

$26B

$31B

$41B1

2017 2022 2013

ANIMAL HEALTH MARKET

COMPANION ANIMALS LIVESTOCK

AT THE CORE OF A $150+ BILLION1 INDUSTRY

Pet Supplies

Vet Services

Diagnostics

OTC Health

Genetics

Food Safety

Herd Health Management

Nutrition

Diagnostics

-Medicines

-Vaccines

-Medicated

Feed Additives

-Parasiticides

ANIMAL HEALTH ~$31 Billion2

CAGR3 = 5 - 6%

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Source: OECD Food & Agriculture Organisation, 2016-2026 projections 2 Includes beef, veal, pork, poultry and sheep 3 Includes milk production for all dairy products 4 Farmed fish production

ESTIMATED RISE IN PET MEDICALIZATION1 AND PROTEIN CONSUMPTION BY 2026

INCREASING NEED FOR ANIMAL HEALTH

9M more horses

treated

more cats

treated more dogs

treated more meat2 more milk3 more farmed fish4

18M 43M 12% 21% 30%

Source: Vetnosis 1Medicalization=CAGR of Treatable Units

+37 million tonnes

+171 million tonnes

+23 million tonnes

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FORCES SHAPING FUTURE OF LIVESTOCK ANIMAL HEALTH

• Increasing consumption of

animal proteins

• Regulators, retailers and consumers

increasingly challenge some products and technologies

• Need for new, alternative technologies

more in line with evolving customer choices

• Increased focus on prevention (vaccines),

prediction (genetics) and detection (diagnostics)

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FORCES SHAPING THE FUTURE OF COMPANION ANIMAL HEALTH

• Veterinarians remain key influencers despite consolidation

• Well-informed consumers looking to social

networks for purchase and treatment decisions

• Digital tools and data analytics are

increasingly important for pet owners and veterinarians

• Parasiticides and specialty products

driving growth in this segment for next 3-5 years

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ZOETIS ADDRESSES CUSTOMER NEEDS WITH INTEGRATED INNOVATIONS

INTERNAL CAPABILITIES COMPLEMENTED WITH EXTERNAL PARTNERSHIPS

GENETICS DIAGNOSTICS DATA

ANALYTICS

& SENSORS

VACCINES,

ROBOTICS &

AUTOMATION

MEDICINES

COMPREHENSIVE PORTFOLIO AND APPROACH TO CONTINUUM OF CARE

PREVENT PREDICT TREAT DETECT

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2016 MARKET POSITION BY SPECIES

Cattle #1

Fish3 #1

Swine #2

Companion Animal #2

Poultry #4

2016 MARKET POSITION BY PRODUCT CATEGORY

Anti-Infectives #1

Other Pharma2 #1

Medicated Feed Additives

(MFA) #2

Vaccines (Biologicals) #3

Parasiticides #5

WORLDWIDE MARKET LEADER1

WELL-POSITIONED ACROSS MULTIPLE GEOGRAPHIES, CATEGORIES & SPECIES

1 Vetnosis Companies Report 2017 and adjusting for the combination of Boehringer and Merial 2 Includes pain, sedation, internal medicine, etc. 3 Internal sales estimate based on distribution channels for 2017 YTD

4 2016 sales

2016 MARKET POSITION BY GEOGRAPHY

North America #1

Latin America #1

Asia #2

Rest of World #2

Eastern Europe #2

Western Europe #3

Worldwide AH Market Leader in Total Revenue4

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DURABLE AND DIVERSE PORTFOLIO

PLANNING FOR A CONTINUOUS FLOW OF PRODUCTS

1 Based on 2016 sales data Logos pictured here represent a sampling of Zoetis products. All trademarks are the property of Zoetis Services LLC or a related company or a licensor unless otherwise noted.

<10 YEARS

10+ YEARS

25+ YEARS

60+ YEARS

Average lifespan of top 24 product lines and products is approx. 30 years1

®

®

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WORLD-CLASS INNOVATION

DIRECT SALES MODEL

HIGH-QUALITY MANUFACTURING

THREE INTERCONNECTED CAPABILITIES

• Deep customer relationships with

direct sales in approximately 45

countries

• Diverse portfolio of products

marketed in 100 countries

• Global R&D team of 1,000 scientists,

developers and regulatory experts

• Approximately 200 approvals in 2017

for groundbreaking new products and

lifecycle innovations

• 26 global manufacturing sites, often

co-located with R&D

• Optimizing supply network to

ensure growth of key new products

and therapeutic areas

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ACHIEVING FINANCIAL STRENGTH AND IMPROVED CASH FLOW

709 790

889 975

1,168

24% 25%

28%

32% 34.25%

Adjusted Net Income ($M) Adjusted EBIT Margin

‡

Expect to nearly double Free Cash Flow4 in 2017

4%

6% 7% 6%

~3%

7% 7% 8% 8%

7%

Market Revenue Growth Zoetis Revenue Growth

1Source: Vetnosis

2 Operational revenue growth is defined as revenue growth excluding the impact of foreign exchange 3 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 (non-GAAP financial measures), which excludes the impact of foreign exchange, operational efficiency initiative and acquisitions ‡Guidance as of November 2, 2017: Revenue, Adjusted EBIT margins, and Adjusted Net Income (a non-GAAP financial measure) reflect midpoint guidance range 4 Defined as U.S. GAAP net cash provided by operating activities less purchases of property, plant and equipment

MARKET REVENUE GROWTH RATES1 VS. ZOETIS REVENUE OPERATIONAL2

GROWTH RATES

ZOETIS ADJUSTED NET INCOME3 AND ADJUSTED EBIT3 MARGINS

‡

†

13 ALL FIGURES REPRESENT EXPECTATIONS FOR THE FULL YEAR 2017

1 Guidance midpoint as of November 2, 2017

2 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. 3Through the first nine months of 2017

2017 – CAPITAL ALLOCATION FOR GROWTH & CREATION OF SHAREHOLDER VALUE

$380M1

R&D Investment2

~$215M CapEx

$82M3

Business Development

~$677M INTERNAL AND EXTERNAL INVESTMENT

~$205M

Dividends

~$500M

Share

Repurchases ~$705M EXCESS CAPITAL RETURNED

TO SHAREHOLDERS

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SALES CAPABILITIES

& KEY BRANDS

R&D

INNOVATIONS

GLOBAL

MANUFACTURING

INVESTING FOR FUTURE GROWTH

• Maximize new product launches with existing sales

and marketing resources

• Continue supporting key

brands with direct-to-consumer campaigns

• Expand sales resources in

complementary spaces (Diagnostics, Genetics, etc.)

• Monoclonal antibody (mAb) therapies

• New parasiticides based on sarolaner platform

• Vaccine development across multiple species

• China R&D resources

• Complementary spaces

• Vaccine expansions

• U.S. and China markets

• Oral solid dose formulations

• Internally sourced API

SUPPORTED BY EXTERNAL BUSINESS DEVELOPMENT

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DELIVERING ON OUR LONG-TERM VALUE PROPOSITION TO SHAREHOLDERS

GROW REVENUE IN LINE WITH OR FASTER

THAN THE MARKET

GROW ADJUSTED NET INCOME1 FASTER

THAN REVENUE

TARGET VALUE-ADDED INVESTMENT OPPORTUNITIES

RETURN EXCESS CAPITAL 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.

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KEY TAKEAWAYS

• World leader in attractive, sustainable and growing market for animal health products

and solutions

• Proven business model and capabilities for

delivering steady, predictable results

• Consistently delivering profitable revenue growth and improved cash flow to support

future investments