Baxter International Inc. · NYSE:BAX
Baxter International — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
21 slides from Baxter International's conference presentation, Jan 13, 2020
Slide 1: 38th Annual J.P. Morgan Healthcare Conference
38th Annual J.P. Morgan Healthcare Conference José (Joe) E. Almeida, Chairman & Chief Executive Officer January 13, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning the company’s preliminary operating results, preliminary sales and operating margin outlook for the year 2020, business development activities, growth drivers, portfolio innovation, market development and strategi
Slide 3: Uniquely Positioned To Deliver Value To Stakeholders
Uniquely Positioned To Deliver Value To Stakeholders Baxter Key Competencies Medically necessary Reach and experience Global manufacturing products and therapies across all sites of care expertise For Over 85 Years, Baxter Has Operated At The Critical Intersection Of Saving And Sustaining Lives 3
Slide 4: A Global & Diversified Portfolio
A Global & Diversified Portfolio Baxter Profile Market Leadership Across Portfolio Renal Care Medication Delivery Pharmaceuticals Products In 100+ Countries 75M+ Patients Clinical Nutrition Advanced Surgery Acute Therapies Treated Annually 4
Slide 5: Top Quartile Goals / Our Strategy
Top Quartile Goals Patient safety and Quality Best place to work Growth through innovation Industry leading performance Our Strategy Strengthen our portfolio and extend our impact through transformative innovation that spans prevention to recovery 5
Slide 6: Prioritizing Patient Safety And Quality
Prioritizing Patient Safety And Quality Investing in quality systems and processes Improving key quality metrics through targeted initiatives Strengthening relationships with global regulators Closed five legacy FDA warning letters since 2015 6
Slide 7: Making A Meaningful Difference
Making A Meaningful Difference A Recognized Top Employer And Outstanding Corporate Citizen Serving Our Recent Highlights Communities Worldwide Reducing Our Environmental Footprint Expanding Access To Care Focusing On Inclusion and For more information on Baxter’s efforts to benefit our communities,
Slide 8: Strategic Growth Drivers
Strategic Growth Drivers Portfolio Market Strategic Innovation Development Partnerships Executing on pipeline Driving growth through evidence Expanding beyond the core to opportunities and geographic generation, physician education, unlock new therapies and expansion and market investments markets 8
Slide 9: Innovation Meeting The Needs Of Patients And Providers
Innovation Meeting The Needs Of Patients And Providers Recent Highlights Portfolio Innovation Market Development Myxredlin provides PrisMax for CRRT1 Spectrum IQ clinicians with a is designed to bi-directional EMR2 consistent, stable, improve the integration allows and ready-to-use simplicity, accur
Slide 10: Innovation Meeting The Needs Of Patients And Providers
Innovation Meeting The Needs Of Patients And Providers Recent Highlights Portfolio Innovation Market Development Supporting Utilizing VIBe3 Scale Generating expanded U.S. to classify bleed evidence on patient access to severity, allowing improved outcomes home PD1 therapy surgical teams to for patie
Slide 11: Innovation Meeting The Needs Of Patients And Providers
Innovation Meeting The Needs Of Patients And Providers Recent Highlights Portfolio Innovation Market Development Q-NRG+ Piloting CKD&Me bioMérieux partnership with app with Ayogo collaboration to COSMED for rapidly Health Inc. for develop future and accurately comprehensive pre- biomarkers to help S
Slide 12: Robust Pipeline Fueling Future Growth
Robust Pipeline Fueling Future Growth1 2020+ Highlights Expanded Pump Offerings Planned launches of Large Volume, Syringe, Patient Controlled Analgesia, and Ambulatory pumps Sharesource Analytics Enhanced data analytics to support improved patient care and shared decision-making PIVA Specialized Mon
Slide 13: Furthering Our Potential Through Business Transformation
Furthering Our Potential Through Business Transformation Realized $1.0B+ Savings Pursuing Further Opportunities To Date Vs. 2015 For Operational Efficiency ~$1.2B Strategic Growth ~$1.1B Allocating resources to support effective ~$1.0B R&D and commercial execution Operations Optimization Simplifying
Slide 14: Unlocking Additional Value Through Strategic Capital Deployment
Unlocking Additional Value Through Strategic Capital Deployment Reinvestment In Business Investing in meaningful innovation and growth acceleration opportunities, including various Renal Care initiatives such as AAKHI support Dividend Issuance Increased quarterly dividend payment by 16% to $0.22 per
Slide 15: Disciplined Execution Of Our M&A Strategy
Disciplined Execution Of Our M&A Strategy Objectives & Criteria: Recent Announcements Drive Category Cheetah Medical Leadership • Accelerates Baxter’s entry into specialized monitoring and supports efforts to personalize therapy and help eliminate preventable harm Capitalize On • Upfront cash paymen
Slide 16: Preliminary Financial Information
Preliminary Financial Information1 Fourth-Quarter Full-Year Full-Year 20192 20192 20204 Preliminary Results Preliminary Results Preliminary Guidance Sales Growth 7% 2% 4% - 5% Reported Foreign Exchange 100+ bps ~300 bps ~0 bps Sales Growth 8% - 9% 5% 4% - 5% Constant Currency GAAP Operating Margin >
Slide 17: Continuing Momentum In 2020 And Beyond
Continuing Momentum In 2020 And Beyond • Executing on new product launches, market development, and geographic expansions • Strategically investing in quality and operations to support expansion opportunities • Integrating recent tuck-in acquisitions to unlock additional value • Realizing ongoing be
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations January 13, 2020 18
Slide 19: Non-GAAP Reconciliation as of January 13, 2020
Non-GAAP Reconciliation as of January 13, 2020 Non-GAAP Reconciliations: On January 12, 2020, Baxter announced preliminary net sales for the fourth-quarter and full-year 2019 and preliminary full-year 2020 guidance. This presentation includes sales growth (on a constant currency and operational basi
Slide 20: Description of Adjustments and Reconciliation of Preliminary GAAP to Non-GAAP Measures
Description of Adjustments and Reconciliation of Preliminary GAAP to Non-GAAP Measures (unaudited) The following is a reconciliation of net sales growth as reported to operational sales growth for the three months ended December 31, 20191: N et Sales Growth as U.S. Operational Reported Cyclophospham
Slide 21: Description of Adjustments and Reconciliation of Preliminary GAAP to Non-GAAP Measures
Description of Adjustments and Reconciliation of Preliminary GAAP to Non-GAAP Measures (unaudited) In its preliminary earnings release on October 24, 2019, the company provided guidance on reported and adjusted operating margin for the quarter ending December 31, 2019. While the company now expects
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