2013 Annual Review
Performance
Financial Performance
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Three-Year Summary
as of and for the year ended December 31(a)
% change
MILLIONS (Except Per Common Share Data) 2013 2012 2011 13/12 12/11
Revenues(b) 51,584 54,657 61,035 (6) (10)
Research and development expenses(b) 6,678 7,482 8,681 (11) (14)
Restructuring charges and certain acquisition-related costs(b) 1,182 1,810 2,841 (35) (36)
Income from continuing operations(b) 11,410 9,021 7,860 26 15
Discontinued operations — net of tax(c) 10,662 5,577 2,189 91 *
Net income attributable to Pfizer Inc.(b) 22,003 14,570 10,009 51 46
Diluted earnings per common share attributable to
Pfizer Inc. shareholders
3.19 1.94 1.27 64 53
Weighted-average shares — diluted 6,895 7,508 7,870 (8) (5)
Number of common shares outstanding 6,399 7,276 7,575 (12) (4)
Total assets 172,101 185,798 188,002 (7) (1)
Total Long-term obligations(b),(d) 72,115 74,934 75,914 (4) (1)
Total Pfizer Inc. shareholders' equity 76,307 81,260 82,190 (6) (1)
Shareholders' equity per common share 11.93 11.17 10.85 7 3
Net cash provided by operating activities 17,765 16,746 20,240 6 (17)
Property, plant and equipment additions 1,206 1,327 1,660 (9) (20)
Purchases of common stock 16,290 8,228 9,000 98 (9)
Cash dividends paid 6,580 6,534 6,234 1 5

(a) Reflects the acquisition of King Pharmaceuticals, Inc. on January 31, 2011 and Wyeth on October 15, 2009.

(b) All amounts reflect the June 24, 2013 disposition of Zoetis and its presentation as a discontinued operation in all periods presented.

(c) Includes (i) the Animal Health (Zoetis) business through June 24, 2013, the date of disposal, (ii) the Nutrition business through November 30, 2012, the date of disposal and (iii) the Capsugel business through August 1, 2011, the date of disposal.

(d) Defined as Long-term debt, Pension benefit obligations, net, Postretirement benefit obligations, net, Noncurrent deferred tax liabilities, Other taxes payable and Other noncurrent liabilities. Our short-term borrowings are rated P-1 by Moody's Investors Service (Moody's) and A-1+ by Standard & Poor's (S&P). Our long-term debt is rated A1 by Moody's and AA by S&P. Moody's and S&P are major corporate debt-rating organizations.

* Calculation not meaningful.

Detailed information on our financial and operational performance can be found in the 2013 Financial Report.

Key Performance Indicators
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Access to Medicines
12

Number of global programs and commercial transactions to increase access to medicines in emerging markets1

17

Number of top 20 global burdens of disease addressed by products and pipeline2

67

Number of emerging markets in which Pfizer has implemented intra-country tiered pricing3

Employees
0.53
Injuries Per 100 Employees
Total Injury Rate4
Total injury rate in 2013
was 10% lower than in 2012.
Environment5
1.67
Million Metric Tons CO2e6
Greenhouse Gas Emissions
Total GHG emissions in 2013
were 7.2% lower than in 2012.
44.3
Million Cubic Meters
Water Withdrawal
Total water withdrawal in 2013
was 4% lower than in 2012.
154
Thousand Metric Tons7
Waste Generated
Total waste generated in 2013
was 10% lower than in 2012.

(1) Program/commercial transaction defined as a Pfizer investment or dedicated contract of over $250,000 with a national government or procurement agency, MLO, NGO, private institution or aid agency. Represents multi-country initiatives only and does not include numerous local initiatives to address access.

(2) As defined by the World Health Organization. Burdens of illness not addressed include road traffic accidents, prematurity and low birth weight, and self-inflicted injuries.

(3) Represents minimum number of emerging markets with pricing tailored to different patient segments (for at least one product), allowing access for more patients.

(4) Represents >90% of Pfizer employees and directly-supervised contractors.

(5) Data are baseline adjusted, reported absolute, using reporting boundaries per the WRI GHG Protocol. Excludes Zoetis sites (formerly Pfizer Animal Health). The 2012 GHG data was independently verified to the Limited Assurance level. Expanded environmental reporting will be posted on www.pfizer.com later this year.

(6) Carbon footprint includes total direct (including fleet and aviation) and indirect emissions. Does not include Scope 3 emissions.

(7) The overall recycling rate was 33% and the quantity of hazardous and non-hazardous waste decreased 12% and 3% respectively from 2012.

Performance and Guidance1
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Adjusted Revenues5 (in Billions)
2013 Guidance2,3
$50.8 – $51.8
2014 Guidance4
$49.2 – $51.2
2013 Actual3
$51.5
Adjusted Cost of Sales5 as a % of Adjusted Revenue
2013 Guidance2,3
18.0% – 18.5%
2014 Guidance4
19.0% – 20.0%
2013 Actual3
18.0%
Adjusted SI&A Expenses5 (in Billions)
2013 Guidance2,3
$14.2 – $14.7
2014 Guidance4
$13.5 – $14.5
2013 Actual3
$14.2
Adjusted R&D Expenses5 (in Billions)
2013 Guidance2,3
$6.3 – $6.6
2014 Guidance4
$6.4 – $6.9
2013 Actual3
$6.6
Adjusted Other (Income)/Deductions5 (in Millions)
2013 Guidance2,3
Approx. $400
2014 Guidance4
Approx. $100
2013 Actual3
$164
Effective Tax Rate on Adjusted Income5
2013 Guidance2,3
Approx. 28.0%
2014 Guidance4
Approx. 27.0%
2013 Actual3
27.5%
Reported Diluted EPS6
2013 Guidance2,3
$3.05 – $3.15
2014 Guidance4
$1.57 – $1.72
2013 Actual3
$3.19
Adjusted Diluted EPS5
2013 Guidance2,3
$2.15 – $2.20
2014 Guidance4
$2.20 – $2.30
2013 Actual3
$2.22

(1) Please refer to Pfizer's 2013 Annual Report on Form 10-K for a description of the substantial risks and uncertainties related to the forward-looking statements included in this Annual Review.

(2) At exchange rates that reflected a blend of the actual exchange rates in effect through September 29, 2013 and the mid-October 2013 exchange rates for the remainder of the year. Our 2013 guidance did not assume the completion of any business-development transactions not completed as of September 29, 2013, including any one-time upfront payments associated with such transactions, and excluded the potential effects of the resolution of litigation-related matters not substantially resolved as of September 29, 2013.

(3) Financial results from the Animal Health business were reflected as a discontinued operation through June 24, 2013. The weighted average shares outstanding used in the computation of Adjusted and Reported Diluted EPS guidance reflected the 405.1 million share reduction resulting from the Zoetis exchange offer. Since this reduction occurred on June 24, 2013, Adjusted and Reported Diluted EPS(6) guidance reflected only a partial-year benefit. Reported and Diluted EPS(6) guidance included the gain on the final disposition of Zoetis and income from a patent litigation settlement.

(4) Our 2014 financial guidance is as of January 2014 and does not assume the completion of any business-development transactions not completed as of December 31, 2013, including any one-time upfront payments associated with such transactions, and excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of December 31, 2013. The exchange rates assumed in connection with the 2014 financial guidance are as of mid-January 2014. Revenues and Cost of sales from the transitional manufacturing and supply agreements with Zoetis have been excluded from the applicable Adjusted components of the financial guidance. Adjusted and Reported Diluted EPS(6) guidance assumes diluted weighted-average shares outstanding of approximately 6.4 billion shares.

(5) Adjusted Income and its components and Adjusted Diluted Earnings Per Share (EPS) are defined as reported U.S. generally accepted accounting principles (U.S. GAAP) net income(6) and its components and reported diluted EPS(6) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Adjusted Revenues, Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A), Adjusted Research and Development (R&D) expenses and Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis and, therefore, components of the overall adjusted income measure. As described in our Annual Report on Form 10-K for the year ended December 31, 2013, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. Reconciliations of certain U.S. GAAP reported to Non-GAAP adjusted information for 2013, as well as reconciliations for full-year 2014 guidance for adjusted income and adjusted diluted EPS to full-year 2014 guidance for reported net income(6) and reported diluted EPS(6), are provided in our Form 10-K for the year ended December 31, 2013. The adjusted income and its components and adjusted diluted EPS measures 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, adjusted 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 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 income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

(6) Reported Net Income in accordance with U.S. GAAP is defined as net income attributable to Pfizer Inc. in accordance with U.S. GAAP and Reported Diluted EPS is defined as reported diluted EPS attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.