Eli Lilly 2013 Annual Report Download - page 100

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2
Proxy Statement Overview
General Information
This overview highlights information contained elsewhere in this proxy statement. It does not contain all the
information you should consider, and you should read the entire proxy statement carefully before voting.
Meeting: Annual Meeting of Shareholders Date: May 5, 2014
Time: 11:00 a.m. EDT Location: The Lilly Center Auditorium
Lilly Corporate Center
Indianapolis, Indiana 46285
Record Date: February 28, 2014
What Is New In This Year's Proxy
Below is a summary of changes to our compensation disclosures since our proxy filing last year, based on
dialogue with shareholders:
1. We redesigned our proxy statement to make it easier for our shareholders and other stakeholders to
understand our compensation programs and to highlight important information about our corporate
governance and other company practices.
2. We expanded our compensation recovery policy to cover all executives and to encompass a broader
range of executive misconduct.
3. We reassessed our peer group in 2012 and expanded it to include six smaller biopharmaceutical and
medical device companies: Allergan, Inc.; Biogen IDEC Inc., Celgene Corporation, Covidien PLC,
Gilead Sciences, Inc., and Medtronic, Inc. We selected a revised peer group that would place Lilly in
the middle of the group in terms of revenue.
2013 Business Performance Highlights
2013 falls in the middle of what we call the "YZ" period, during which we lose patent protection for a number
of important products, including Zyprexa in the U.S. and Europe in late 2011, Cymbalta in the U.S. in
December 2013, and Evista in the U.S. in March 2014. Despite these challenges, we delivered on our
financial commitments for 2013, with revenue increasing 2 percent to $23.1 billion, non-GAAP net income
increasing 19 percent to $4.5 billion, and non-GAAP earnings per share increasing 22 percent to $4.15. Total
operating expenses decreased 1 percent, even as we continued to advance the company's pipeline.
Reported net income for 2013 increased 15 percent to $4.68 billion, and reported earnings per share
increased 18 percent to $4.32. (See Appendix A for a more detailed summary of adjustments to EPS.)
Further information on our financial performance during 2013 is available in our 2013 Form 10-K and fourth-
quarter earnings release available on our website at http://investor.lilly.com/financials.cfm.
We also made significant progress in delivering on the pipeline, with regulatory submissions for four products
– empagliflozin, dulaglutide, new insulin glargine, and ramucirumab – along with five other new indication or
line extension ("NILEX") approvals during 2013. In addition to these submissions, as of March 1, 2014, we
also had 12 molecules in Phase III or submission stage and 25 more in Phase II.