Baxter International Inc. · NYSE:BAX
Baxter International — Raymond James & Associates 39th Annual Institutional Investors Conference 2018
14 slides from Baxter International's conference presentation, Mar 6, 2018
Slide 1: Raymond James Healthcare Conference
Raymond James Healthcare Conference Jay Saccaro | Chief Financial Officer March 6, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter’s financial results, business development activities (including the recent acquisition of Claris Injectables in July 2017), capital structure, cost savings initiatives, R&D pipeline including results of cli
Slide 3: Unique opportunity to create shareholder value
85+ year heritage of Strong saving and global business sustaining lives with great people One of the most Established market trusted brands leadership across in medical products portfolio Unique opportunity to create shareholder value 3
Slide 4: Baxter Profile
Baxter Profile 2017 Revenue By Market By Global Business Unit1 Renal Care ~$3.5B Medication Delivery ~$2.7B Pharmaceuticals ~$1.9B $10.6 43% Nutrition ~$0.9B 57% U.S. Billion International Advanced Surgery ~$0.7B Acute Therapies ~$0.5B Other ~$0.5B Industry-Leading Global Continuous Operational Port
Slide 5: Delivering On Our Strategy: Business Highlights
Delivering On Our Strategy Business Highlights1 Building Momentum With Strong Executing On Pipeline And Strategic Operational Performance Opportunities To Optimize Portfolio ► Delivered 5% operational sales growth and 27% adjusted EPS ► Reallocating investment to higher-margin, faster-growing growth
Slide 6: Aspiration For Baxter 2020
Aspiration For Baxter 2020 Quality and Best Place to Industry Leading Patient Safety Work Performance Investing in quality systems Portfolio And and processes Innovation Management Improving key quality metrics Operational Excellence Strengthening relationships with global regulators Capital Ensurin
Slide 7: Industry Leading Performance Advancing Three Critical Drivers
Industry Leading Performance Advancing Three Critical Drivers Portfolio And Operational Capital Innovation Excellence Allocation Management Drive Improved Performance And Value Creation To Help Deliver Top-Quartile Shareholder Returns 7
Slide 8: Advancing Our New Product Portfolio
Advancing Our New Product Portfolio Generic Injectables Expansion Generating Clinical Evidence Strategic Portfolio Additions1 Over 3,000 U.S. Patients New Pump Platforms New Indications Focused On High Potential, High Value Innovation 1Proposed product acquisitions. 8
Slide 9: Transforming Cost Structure And Enhancing Operational Efficiency
Transforming Cost Structure And Enhancing Operational Efficiency Zero-Based Organization Zero-Based Spending Rightsizing organization with reduced Employing disciplined cost spans & layers assessment to eliminate waste Portfolio Management Global Business Services Optimizing manufacturing footprint,
Slide 10: Strategically Deploying Capital To Fuel Growth And Create Value
Strategically Deploying Capital To Fuel Growth And Create Value Reinvestment in Net debt to EBITDA ratio near zero1; targeting Business steady state of ~2.0x Raised annual dividend by 23% in 2017; Dividends targeting ~35% dividend payout ratio over time BAX Increased share repurchase authoriza
Slide 11: Rigorous Assessment Of Business Development And Licensing Opportunities
Rigorous Assessment Of Business Development And Licensing Opportunities Drive category leadership Net Debt / EBITDA Enhance Baxter’s weighted average market growth rate Guidelines Strategic Expand into strategic adjacencies from core growth Objectives businesses ~2.0X Extend channel presence
Slide 12: Accelerating Growth Of Key Metrics: Financial Outlook
Accelerating Growth Of Key Metrics Financial Outlook1,2 Global Reported Adjusted Adjusted Free Cash Flow Revenue Operating Margin Diluted EPS $3.25 - $3.40 ~$12B ~$2.0B ~20.0% $2.72 - $2.80 $11.2B+ 16.8% - 17.0% ~$1.4B 13.6% $1.96 ~$0.9B ~$10.2B 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018
Slide 13: Continuing Strong Momentum In 2018
Continuing Strong Momentum In 2018 ► Increasing innovation to drive accelerated revenue growth ► Maintaining strong cadence of product launches and geographic expansions ► Realizing ongoing benefits of cost reduction initiatives and organization optimization ► Strategically deploying capital to enha
Slide 14: Raymond James Healthcare Conference
Raymond James Healthcare Conference Jay Saccaro | Chief Financial Officer March 6, 2018