MIKE WANG,

Zoetis

Vice President Greater China

Wednesday 19th October

GROWTH

OPPORTUNITY

FOR ANIMAL

HEALTH IN

CHINA

Forward Looking Statements

This presentation contains forward-looking statements, which reflect the current views of

Zoetis with respect to business plans or prospects. 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, 2015, 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.

100+ COUNTRIES

28

5

8 300

4.8 1,050

MANUFACTURING SITES

MAJOR PRODUCT CATEGORIES

CORE ANIMAL SPECIES

BILLION

$

ANNUAL REVENUE

APPROXIMATE NUMBER OF PRODUCT LINES

APPROXIMATE R&D COLLEAGUES

2,800 APPROXIMATE FIELD FORCE MEMBERS

OUR FOCUS

37%1

62%1

COMPANION ANIMAL HEALTH

LIVESTOCK HEALTH

9,000 MARKET PRESENCE IN

WE PROVIDE

MEDICINES VACCINES DIAGNOSTICS GENETIC TESTS SERVICES 60+

YEARS OF EXPERIENCE

Note: Facts and figures shown are as of Dec. 31, 2015 | 1Excludes revenue associated with Client Supply Services, which represented 1% of total 2015 revenue.

APPROXIMATE COLLEAGUES WORLDWIDE

POPULATION

GROWTH

A GROWING

MIDDLE CLASS

INCREASING

URBANIZATION

PREDICTABLE, SUSTAINABLE AND FUNDAMENTAL ECONOMIC DRIVERS

Data source: Vetnosis

ANIMAL PROTEIN CONSUMPTION GROWTH IN CHINA TO

OUTSTRIP GLOBAL AVERAGE IN NEXT 10 YEARS

58 654 69 839

26 043 30 865

19 761

24 903 7 945

9 626 43 133

51 801

2015 2025F

Total Dairy

Bovine meat

Poultry meat

Eggs

Pig meat

China CAGR, %

2016-25

World CAGR , %

2016-25, %

1.7% 1.8%

2.3% 2.3%

Unit: 000’ Metric Tones

China Protein Consumption Growth Outlook (2016 – 2025)

1.8% 1.5%

1.9% 1.6%

1.8% 1.7%

CHINA TO INCREASE ITS WEIGHT IN GLOBAL AH MARKET,

DRIVEN BY MEDICALIZATION & CONSUMPTION GROWTH

Source: Vetnosis, 2015 and 2025 FX neutral projections

Global AH Market

2015 2025F

$29.7B $54.0B

CAGR

6.2%

China AH Market $4.7B $10.1B 7.9%

Unit: US$

2015 2025FGlobal AH Market China Share

$30 B

$54 B

16% 19%

LIVESTOCK

800 million+ pigs

Emerging markets

Developed markets

93% 7.8 billion broiler chickens

Livestock: $ 4.4 Bn

93% of

China AH

market are

Livestock

CHINA THE 2ND LARGEST ANIMAL HEALTH MARKET, MOSTLY SWINE & POULTRY

75 million beef cattle

27 million dairy cows

Data source: China National Statistics, Vetnosis

CHINA SWINE MARKET GROWTH DRIVEN BY AVG

MEDICAL EXPENDITURE & MEDICALIZATION RATE

50

60

70

80

90

100

110

0 1 2 3 4 5 6 7 8 9 10 11 12

Med

icalizati

on

Ra

te (

%)

Average AH Expenditure/Pig (US$)

SWINE AH Expenditure (2015)

Data source: Vetnosis

World Average Medicalization Rate W

orl

d A

ve

rag

e A

H E

xp

en

dit

ure

/ P

ig

Note: Bubble size represents animal population

China

USA

Australia Brazil

France

COMPANION

ANIMALS

11,3

million

cats

Emerging markets

Developed markets

27,6

million

dogs

CHINA 2ND LARGEST ANIMAL HEALTH MARKET

CA: $ 332 Mn

7% of

China

AH

market 7%

CHINA CA MARKET HAS HUGE POTENTIAL TO INCREASE

AVERAGE SPENDING & MEDICALIZATION RATE

1

2

Pet Dog AH Expenditure (2015)

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60

Med

icalizati

on

Rate

(%

)

Average AH Expenditure / Dog (US$)

1

2

Data source: Vetnosis

Wo

rld

Ave

rag

e A

H E

xp

en

dit

ure

/ D

og

World Average Medicalization Rate

Note: Bubble size represents animal population

China

USA

Australia Brazil

France

FOOD SAFETY

PRODUCTIVITY

ENVIRONMENT PROTECTION

QUALITY OF LIFE

ANIMAL WELFARE

• Introduce innovative product with leading technologies

• Leverage advanced services and solution to support growth

• Keep investing in Vets and customer education program

MY FAMILY…

2012, Sept 2014, July 2016, May

Q&A