PFIZER INC. NYSE-PFE TIMELINESS SAFETY TECHNICAL

3 1 2

High: Low:

Lowered 12/28/12

RECENT PRICE 42.5 25.1

36.9 27.9

38.9 22.0

29.2 20.3

19.4 RELATIVE DIV’D Median: 15.0) P/E RATIO 0.51 YLD 3.3% 28.89 P/ERATIO 9.1(Trailing: 28.6 22.2

27.7 22.2

LEGENDS 10.0 x ″Cash Flow″ p sh . . . . Relative Price Strength Options: Yes Shaded areas indicate recessions

Raised 4/17/09 Raised 9/20/13

BETA .75 (1.00 = Market)

24.2 14.3

19.0 11.6

20.4 14.0

21.9 16.6

26.1 20.8

31.2 25.3

VALUE LINE Target Price Range 2016 2017 2018

F

64 48 40 32 24 20 16 12

2016-18 PROJECTIONS

Ann’l Total Price Gain Return High 35 (+20%) 8% Low 30 (+5%) 5% Insider Decisions to Buy Options to Sell

N 0 0 1

D 0 1 1

J F M 0 0 0 0 12 0 1 0 10

A 0 0 0

M 0 0 3

J 0 0 0

J 0 1 2

8 6 % TOT. RETURN 9/13

Institutional Decisions to Buy to Sell Hld’s(000)

4Q2012 682 813 5194467

1Q2013 684 779 5127547

2Q2013 630 902 4974347

Percent shares traded

18 12 6

1 yr. 3 yr. 5 yr.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3.22 3.49 4.21 4.68 5.14 5.25 5.92 7.03 6.97 6.79 7.16 7.16 6.20 8.46 .70 .80 1.02 1.18 1.50 1.72 2.21 2.84 2.80 2.85 3.03 1.94 1.66 2.09 .57 .67 .87 1.02 1.31 1.53 1.75 2.12 2.02 2.06 2.20 1.18 1.23 1.03 .23 .25 .31 .36 .44 .52 .60 .68 .76 .96 1.16 1.28 .80 .72 .24 .31 .41 .35 .35 .29 .35 .35 .29 .29 .28 .25 .15 .19 2.04 2.27 2.31 2.55 2.91 3.24 8.53 9.10 8.88 9.98 9.60 8.52 11.15 10.95 3882.0 3882.0 3847.0 6314.0 6277.0 6162.0 7629.0 7473.0 7361.0 7124.0 6761.0 6746.0 8070.0 8012.0 33.3 NMF 44.3 40.7 31.8 22.8 18.2 15.6 12.7 12.5 11.5 16.4 12.8 16.3 1.92 NMF 2.53 2.65 1.63 1.25 1.04 .82 .68 .67 .61 .99 .85 1.04 1.2% .7% .8% .9% 1.1% 1.5% 1.9% 2.1% 3.0% 3.7% 4.6% 6.6% 5.1% 4.3%

THIS STOCK

VL ARITH.* INDEX

19.6 87.7 93.6

31.2 60.1 110.2

© VALUE LINE PUB. LLC

16-18

8.90 8.11 8.10 8.10 2.34 2.35 4.25 2.85 1.11 1.26 3.20 1.85 .80 .88 .96 1.00 .22 .18 .20 .20 10.84 11.16 12.75 13.95 7575.0 7276.0 6500.0 6300.0 17.6 18.4 Bold figures are Value Line 1.10 1.17 estimates 4.1% 3.8%

Sales per sh ‘‘Cash Flow’’ per sh Earnings per sh A G Div’ds Decl’d per sh B■ Cap’l Spending per sh Book Value per sh C Common Shs Outst’g D Avg Ann’l P/E Ratio Relative P/E Ratio Avg Ann’l Div’d Yield

9.15 3.20 2.25 1.28 .25 16.65 6000.0 15.0 1.00 3.8%

45188 52516 51298 48371 48404 48296 50009 67809 37.8% 48.9% 47.4% 49.1% 47.8% 45.9% 46.2% 45.5% 4078.0 5093.0 5576.0 5293.0 5200.0 5090.0 4757.0 8487.0 12748 16136 15001 14984 15267 8026.0 8621.0 8266.0 22.5% 21.8% 22.5% 22.6% 21.0% 17.0% 20.3% 11.9% 28.2% 30.7% 29.2% 31.0% 31.5% 16.6% 17.2% 12.2% 6084.0 13236 13448 25560 25014 16067 24445 31859 5755.0 7279.0 6347.0 5546.0 7314.0 7963.0 43193 38410 65377 68278 65627 71358 65010 57556 90014 87813 18.0% 21.5% 21.1% 19.8% 21.4% 12.6% 6.8% 7.1% 19.5% 23.6% 22.9% 21.0% 23.5% 13.9% 9.6% 9.4% 12.9% 16.3% 14.4% 11.3% 11.2% NMF 3.4% 2.5% 34% 31% 37% 46% 52% 106% 64% 74%

67425 58986 48.6% 52.2% 9026.0 7611.0 8697.0 9490.0 31.5% 21.2% 12.9% 16.1% 29659 32796 34931 31036 82190 81260 8.0% 9.0% 10.6% 11.7% 3.0% 3.6% 72% 69%

Sales ($mill) Operating Margin Depreciation ($mill) Net Profit ($mill) Income Tax Rate Net Profit Margin Working Cap’l ($mill) Long-Term Debt ($mill) Shr. Equity ($mill) Return on Total Cap’l Return on Shr. Equity Retained to Com Eq All Div’ds to Net Prof

55000 49.0% 5800 13500 30.0% 24.5% 30000 20000 100000 12.0% 13.5% 6.0% 57%

BUSINESS: Pfizer Inc. is a global biopharmaceutical company engaging in the discovery, development, manufacture, and sale of medicines for people and animals. Manages operations through five segments: Primary Care, Specialty Care and Oncology, Established Products and Emerging Markets, Animal Health, and Consumer Healthcare. Top-selling products ’12: Lipitor (cholesterol), Enbrel

(rheumatoid arthritis), Lyrica (epilepsy), Prevnar (vaccine), Celebrex (arthritis pain/inflammation), and Viagra (erectile dysfunction). Int’l business, 61% of sales; Has about 91,500 employees. Dirs/Off. own less than 1% of common stock; BlackRock, 6.4% (3/13 proxy). Chrmn/CEO: Ian C. Read. Inc.: Del. Addr.: 235 East 42nd St., New York, NY 10017. Tel.: 212-733-2323. Internet: www.pfizer.com

Pfizer continues to navigate a challenging post-Lipitor era. Despite sigANNUAL RATES Past Past Est’d ’10-’12 nificant pressure from generic competition, of change (per sh) 10 Yrs. 5 Yrs. to ’16-’18 the world’s largest drugmaker has perSales 5.5% 4.0% 1.5% formed relatively well thus far in 2013. In ‘‘Cash Flow’’ 4.5% -5.0% 6.0% Earnings -1.5% -11.5% 12.0% our view, management has done a solid job Dividends 6.0% -3.5% 8.0% of cutting costs and boosting efficiency to Book Value 14.5% 3.0% 7.0% help offset recent patent expirations, and QUARTERLY SALES ($ mill.) CalFull to brace for those upcoming. While the loss endar Mar.31 Jun.30 Sep.30 Dec.31 Year of Lipitor continues to loom large (sales 2010 16750 17327 16171 17561 67809 down 55% through the first six months), 2011 16502 16984 17193 16746 67425 solid growth in several of the company’s 2012 14885 15057 13976 15068 58986 other core franchises have helped to pick 2013 13500 12973 12700 13327 52500 2014 12500 12500 13000 13000 51000 up the slack (e.g., Lyrica and Celebrex). Following its second-quarter release, manEARNINGS PER SHARE A CalFull agement upped its full-year GAAP earnendar Mar.31 Jun.30 Sep.30 Dec.31 Year ings guidance range from $1.44-$1.59 a 2010 .25 .31 .11 .36 1.03 share, to $3.07-$3.22, primarily reflecting 2011 .28 .33 .31 .19 1.11 the gain associated with the spinoff of its 2012 .23 .42 .41 .20 1.26 2013 .38 1.98 .42 .42 3.20 animal health business, Zoetis. As a re2014 .35 .50 .50 .50 1.85 sult, our 2013 share-net estimate increases from $1.60, to $3.20. B■ QUARTERLY DIVIDENDS PAID CalFull Third-quarter results are scheduled endar Mar.31 Jun.30 Sep.30 Dec.31 Year to be released later this month. On a 2009 .32 .16 .16 .16 .80 year-over-year basis, we expect sales to be 2010 .18 .18 .18 .18 .72 materially lower in the September interim 2011 .20 .20 .20 .20 .80 due to continued deterioration of Lipitor 2012 .22 .22 .22 .22 .88 and recent sluggishness within its Prevnar 2013 .24 .24 .24

franchise (sales down 9% in first half). That said, Pfizer’s aforementioned cost cutting should help to partially mitigate the impact on the bottom line, and we project earnings to rise modestly. Top-line generation is likely to remain under pressure. In addition to the recent loss of Viagra, Pfizer is scheduled to face a series of big-name patent expirations over the next several years including Celebrex (2014), Zyvox (2015), and Lyrica (2018). With these key sales components coming off the books, the company will be leaning heavily on new products (Eliquis and Xelijanz) to help restore growth. Some positive R&D news out of the oncology pipeline could help provide some upside, as well. High-quality Pfizer shares maintain an Average ranking for Timeliness (3). We continue to view this stock as a strong pharmaceutical play for investors seeking income with relative stability. Pfizer maintains our Highest rank for Safety (1), and a top grade for Financial Strength (A++). Its 3.3% yield compares favorably to our Survey’s 2.1% median. Michael Ratty October 11, 2013

CAPITAL STRUCTURE as of 6/30/13 Total Debt $36746 mill. Due in 5 Yrs $14300 mill. LT Debt $31532 mill. LT Interest $1800 mill. (29% of Cap’l) Leases, Uncapitalized Annual rentals $184.0 mill. Pension Assets-12/12 $20.1 bill. Oblig. $28.0 bill. Common Stock 6,620,299,870 shs. as of 8/5/13 MARKET CAP: $191 billion (Large Cap) CURRENT POSITION 2011 2012 6/30/13 ($MILL.) Cash Assets 26758 32708 33711 Receivables 13608 12378 11523 Inventory (LIFO) 7769 7063 6282 Other 9593 9266 9919 Current Assets 57728 61415 61435 Accts Payable 3836 4264 1978 Debt Due 4018 6424 5214 Other 20215 17931 16258 Current Liab. 28069 28619 23450

(A) Diluted earnings. Excl. non-rec. gains/(losses): ’98, 18¢; ’99, (5¢); ’00, (43¢); ’01, (11¢); ’02, (7¢); ’03, ($1.21); ’04, (63¢); ’05, 93¢; ’06, 8¢; ’07, ($1.03). May not sum due

to change in shrs. Next egs. rpt. due late Oct. (B) Div’ds paid Mar., Jun, Sep., Dec.■ Div’d reinvest. plan. (C) Incl. intang. In ’12: $90.7 bill., $12.47/sh. (D) In millions. (E) Pharmacia

52500 49.0% 6800 20800 30.0% 39.6% 35000 31000 83000 19.0% 25.0% 17.5% 30%

acqd. 4/03, included from 2nd qtr. (F) Wyeth acqd. 10/09, included from 4th qtr. (G) Switched to GAAP earnings from adjusted in 2008.

© 2013 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber’s own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.

51000 48.5% 6300 11660 30.0% 22.9% 35000 27000 88000 11.0% 13.5% 6.0% 54%

Company’s Financial Strength Stock’s Price Stability Price Growth Persistence Earnings Predictability

A++ 95 35 65

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