ASESORÍA A LA TIENDA MIXTA GRACIELA

Year Ended December 31, % Change

(MILLIONS OF DOLLARS) 2012 2011 2010 12/11 11/10

Costs associated w ith acquisitions and

cost-reduction/productivity initiatives $ 2,855 $ 4,512 $ 3,926 (37) 15

We incur significant costs in connection w ith acquiring, integrating and restructuring businesses and in connection w ith our global cost-reduction and productivity initiatives. For example:

• In connection w ith acquisition activity, w e typically incur costs associated w ith executing the transactions, integrating the acquired operations (w hich may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (w hich may include charges related to employees, assets and activities that w ill not continue in the combined company); and

• In connection w ith our cost-reduction and productivity initiatives, w e typically incur costs and charges associated w ith site closings and other facility rationalization actions, w orkforce reductions and the expansion of shared services, including the development of global systems.

All of our businesses and functions may be impacted by these actions, including sales and marketing, manufacturing and research and development, as w ell as groups such as information technology, shared services and corporate operations. Since the acquisition of Wyeth on October 15, 2009, our cost-reduction initiatives announced on January 26, 2009, but not completed as of December 31, 2009, w ere incorporated into a comprehensive plan to integrate Wyeth’s operations to generate cost savings and to capture synergies across the combined company. In addition, on February 1, 2011, among our ongoing cost reduction/productivity initiatives, w e announced a new research and productivity initiative to accelerate our strategies to improve innovation and productivity in R&D by prioritizing areas that w e believe have the greatest scientific and commercial promise, utilizing appropriate risk/return profiles and focusing on areas that w e believe have the highest potential to deliver value in the near term and over time.

Cost-Reduction Goals

With respect to the January 26, 2009 announcements, and our acquisition of Wyeth on October 15, 2009, in the aggregate, w e achieved our cost-reduction goal by the end of 2011, a year earlier than expected, and are continuing to generate cost cost-reductions.

With respect to the R&D productivity initiative announced on February 1, 2011, w e met our goal to achieve significant reductions in our annual research and development expenses by the end of 2012. Adjusted R&D expenses w ere $7.3 billion in 2012, and w e expect adjusted R&D expenses to be approximately $6.5 billion to $7.0 billion in 2013. For an understanding of adjusted research and development expenses, see the

“Adjusted Income” section of this Financial Review .

In addition to these major initiatives, w e continuously monitor our organizations for cost reduction and/or productivity opportunities.

Total Costs

Through December 31, 2012, w e incurred approximately $14.8 billion (pre-tax) in cost-reduction and acquisition-related costs (excluding transaction costs) in connection w ith the aforementioned initiatives. This $14.8 billion is a component of the $15.6 (pre-tax) billion in total

restructuring charges incurred from the beginning of our cost-reduction and productivity initiatives in 2005 through December 31, 2012. See Notes to Consolidated Financial Statements— Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and

Cost-Reduction/Productivity Initiatives for more information. In 2013, w e expect to incur approximately $500-$800 million (after tax) in costs in connection w ith our ongoing cost-reduction/productivity initiatives and have reflected those costs, as w ell as the related expected cost reductions of approximately $1.0 billion (pre-tax), in our 2013 financial guidance. See also the “Our Financial Guidance for 2013” section of this Financial Review .

Key Activities

The targeted cost reductions w ere achieved through the follow ing actions and w e continue to generate cost reductions through similar actions:

• The closing of duplicative facilities and other site rationalization actions Company-w ide, including research and development facilities, manufacturing plants, sales offices and other corporate facilities. Among the more significant actions are the follow ing:

◦ Manufacturing: After the acquisition of Wyeth, our manufacturing sites totaled 75. Other acquisitions have added 21 manufacturing sites and w e have subsequently exited 12 sites, resulting in 84 sites supporting continuing operations as of December 31, 2012 . Our plant

netw ork strategy w ill result in the exit of a further eight sites over the next several years. These site counts exclude five Nutrition business-related manufacturing sites as the Nutrition business w as sold in 2012. See Notes to Consolidated Financial Statements— Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Divestitures for more information.

◦ Research and Development: After the acquisition of Wyeth, w e operated in 20 R&D sites and announced that w e w ould close a number of sites. We have completed a number of site closures, including our Sandw ich, U.K. research and development facility, except for a small presence. In addition, in 2011, w e rationalized several other sites to reduce and optimize the overall R&D footprint. We disposed of our toxicology site in Catania, Italy; exited our R&D sites in Aberdeen and Gosport, U.K.; and disposed of a vacant site in

30 2012 Financial Report

Financial Review

Pfizer Inc. and Subsidiary Companies

St. Louis, MO. We still maintain laboratories in St. Louis, MO, that focus on the areas of biologics and indications discovery. We are presently marketing for sale, lease or sale/lease-back, either a portion of or all of certain of our R&D campuses. Locations w ith R&D operations are in the U.S., Europe, Canada and China, w ith five major research sites in addition to a number of specialized units. We also re-prioritized our commitments to disease areas and have discontinued certain therapeutic areas and R&D programs as part of our R&D productivity initiative. In 2011 and 2012 our research has primarily focused on five high-priority areas that have a mix of small and large molecules—immunology and inflammation; oncology; cardiovascular and metabolic diseases; neuroscience and pain; and vaccines.

• Workforce reductions across all areas of our business and other organizational changes, primarily in the U.S. field force, manufacturing, R&D and corporate functions. We identified areas for a reduction in w orkforce across all of our businesses. In January 2009, w hen Pfizer and Wyeth entered into the merger agreement, the w orkforce of the tw o companies totaled approximately 130,000. We have exceeded our original target to reduce the combined Pfizer/Wyeth w orkforce 15%, or 19,500, w ithin three years. By the end of 2011, w e achieved a reduction of 26,300, and by the end of 2012, w e achieved a reduction of 38,500. In 2012, the w orkforce declined by 12,200, from 103,700 to 91,500, primarily in manufacturing, R&D and corporate functions. The aforementioned w orkforce reductions include the impact of acquisitions and divestitures subsequent to the Wyeth acquisition.

• The increased use of shared services and centers of excellence.

• Procurement savings.

The follow ing table provides the components of costs associated w ith acquisitions and cost-reduction/productivity initiatives:

Year Ended December 31,

Restructuring charges and certain acquisition-related costs 1,880 2,930 3,145

Additional depreciation––asset restructuring, recorded in our consolidated

statements of income as follow s ^(d) :

Cost of sales 267 555 520

Selling, informational and administrative expenses 20 75 227

Research and development expenses 296 605 34

Total additional depreciation––asset restructuring 583 1,235 781

Implementation costs, recorded in our consolidated

statements of income as follow s ^(e) :

Cost of sales 31 250 —

Selling, informational and administrative expenses 129 25 —

Research and development expenses 232 72 —

Total implementation costs 392 347 —

Total costs associated w ith acquisitions and cost-reduction/productivity initiatives $ 2,855 $ 4,512 $ 3,926

(a)Transaction costs represent external costs directly related to acquired businesses and primarily include expenditures f or banking, legal, accounting and other similar serv ices.

(b)Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures f or consulting and the integration of sy stems and processes.

(c)From the beginning of our cost-reduction and transf ormation initiativ es in 2005 through December 31, 2012 , Employee termination costs represent the expected reduction of the workf orce by approximately 62,200 employ ees, mainly in manuf acturing, sales and research, of which approximately 51,700 employ ees hav e been

terminated as of December 31, 2012 . In 2012 , substantially all employ ee termination costs represent additional costs with respect to approximately 4,800 employ ees.

The restructuring charges in 2012 are associated with the f ollowing:

• Primary Care operating segment ( $295 million ), Specialty Care and Oncology operating segment ( $175 million ), Established Products and Emerging Markets operating segment ( $125 million ), Animal Health operating segment ( $59 million ), Consumer Healthcare operating segment ( $45 million ), research and dev elopment operations ( $6 million income), manuf acturing operations ( $265 million ) and Corporate ( $516 million ).

The restructuring charges in 2011 are associated with the f ollowing:

• Primary Care operating segment ( $593 million ), Specialty Care and Oncology operating segment ( $220 million ), Established Products and Emerging Markets operating segment ( $110 million ), Animal Health operating segment ( $45 million ), Consumer Healthcare operating segment ( $8 million ), research and dev elopment operations ( $490 million ), manuf acturing operations ( $287 million ) and Corporate ( $422 million ).

The restructuring charges in 2010 are associated with the f ollowing:

• Primary Care operating segment ( $71 million ), Specialty Care and Oncology operating segment ( $197 million ), Established Products and Emerging Markets operating segment ( $43 million ), Animal Health operating segment ( $34 million ), Consumer Healthcare operating segment ( $12 million ), research and dev elopment operations ( $297 million ), manuf acturing operations ( $1.1 billion ) and Corporate ( $350 million ).

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Financial Review

Pfizer Inc. and Subsidiary Companies

(d) Additional depreciation––asset restructuring represents the impact of changes in the estimated usef ul liv es of assets inv olv ed in restructuring actions.

(e) Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction and productiv ity initiativ es.

The follow ing table provides the components of and changes in our restructuring accruals:

(MILLIONS OF DOLLARS)

Utilization and other ^(a) (1,518) (256) — (134) (1,908)

Balance, December 31, 2011 ^(b) 2,425 — 92 2,517

Provision 997 328 149 1,474

Utilization and other ^(a) (1,629) (328) (84) (2,041)

Balance, December 31, 2012 ^(c) $ 1,793 $ — $ 157 $ 1,950

(a) Includes adjustments f or f oreign currency translation.

(b) Included in Other current liabilities ($ 1.6 billion ) and Other noncurrent liabilities ($ 930 million ).

(c) Included in Other current liabilities ( $1.2 billion ) and Other noncurrent liabilities ( $731 million ).