Baxter International Inc. · NYSE:BAX
Baxter International — 2018 Baxter Investor Conference
25 slides from Baxter International's conference presentation, May 21, 2018
Slide 1: Performance and Trajectory
PERFORMANCE AND TRAJECTORY José (Joe) E. Almeida Chairman, President and CEO May 21, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter’s financial results, R&D pipeline, including planned product launches (many of which are subject to regulatory approval) and results of clinical trials, business development activities, capital structure, c
Slide 3: Unique opportunity to create shareholder value
85+ year heritage of Strong saving and global business sustaining lives with great people Established One of the most market trusted brands in medical products leadership across portfolio Unique opportunity to create shareholder value | 3
Slide 4: Baxter Profile
Baxter Profile Global Revenue1 Revenue by Region1 60M+ patients treated annually Americas 54% Products in $10.6B EMEA 26% 100+ countries 2017 Sales Asia Pacific 20% 1Sales and related figures represent FY 2017 | 4
Slide 5: Baxter Profile: Revenue by Business
Baxter Profile Revenue by Business1 Market-leading 33% 26% positions RENAL CARE MEDICATION DELIVERY PHARMACEUTICALS Broad reach and 8% 7% 4% channel strength CLINICAL NUTRITION ADVANCED SURGERY ACUTE THERAPIES 1Sales and related figures represent FY 2017; Other sales represent ~4%. | 5
Slide 6: Baxter 2020: Focused On Sustained Top Quartile Performance
Baxter 2020: Focused On Sustained Top Quartile Performance Quality and Best place Industry leading patient safety to work performance Driving Improved Performance To Deliver Optimal Results For Patients, Customers, Shareholders And Employees | 6
Slide 7: Driving Results: Quality and Patient Safety
Driving Results: Quality and Patient Safety Investing in quality systems and processes Improving key quality metrics Three warning letters closed Strengthening relationships with global regulators | 7
Slide 8: Driving Results: Best Place to Work
Driving Results: Best Place to Work Recognized as an outstanding employer 2018 Women’s Choice Award The Voice of Women A noted leader in corporate social responsibility | 8
Slide 9: Driving Results: Industry Leading Performance
Driving Results: Industry Leading Performance STRONG PROGRESS ACROSS THREE CRITICAL DRIVERS Portfolio and Innovation Operational Capital Management Excellence Allocation | 9
Slide 10: Continuing Momentum Across Key Performance Metrics
Continuing Momentum Across Key Performance Metrics1 Global Reported Adjusted Adjusted Free Revenues Operating Margin Diluted EPS Cash Flow3 16.3% $2.48 $1,219M $10.6B 13.8% $905M $1.96 $10.2B 10.3% $10.0B $1.38 $342M ~5% Annual Op. Growth2 +600bps +80% >3.5x FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 F
Slide 11: Strategically Deploying Capital To Fuel Growth And Create Value
Strategically Deploying Capital To Fuel Growth And Create Value Reinvestment in Business Increased dividend by 65%1 Repurchased ~35 million Dividends Baxter shares1 BAX Executed strategic acquisitions Share Repurchases and collaborations Claris Injectables Recothrom & Preveleak Strategic M&A W
Slide 12: Delivering Significant Value For Investors
Delivering Significant Value For Investors Total Shareholder Return (12/31/15 – 05/18/18) 190 ~90% 170 Indexed Return ~63% 150 ~51% ~39% 130 ~20% 110 90 BAX S&P S&P Healthcare Dow IHI | 12
Slide 13: Market Trends Snapshot
Market Trends Snapshot Outcomes-Based, More Patients, Relevant More Complexity Innovation Data Analytics Optimizing Delivery Driving Total of Care Patient Management Markets Stabilizing Globally; Well-Positioned To Capitalize On Trends | 13
Slide 14: Key Market Overview
Key Market Overview Sustainable Market Size1 Growth2 3% - 4% Renal Care ~$14B 4% - 5% market growth Acute Therapies ~$1B 7% - 8% Medically necessary Clinical Nutrition ~$4B 3% - 4% therapies Medication Delivery ~$23B ~3% Global expansion and Advanced Surgery ~$3B 4% - 5% increased adoption in Ph
Slide 15: Baxter Mission: Save and Sustain Lives
Baxter — MISSION —— SAVE AND SUSTAIN LIVES
Slide 16: Top Quartile Goals
TOP QUARTILE GOALS @) Patient safety and Quality @ Growth through innovation Best place to work Industry leading performance
Slide 17: Strategy
STRATEGY Strengthen our portfolio and extend our impact through transformative innovation that spans prevention to recovery
Slide 18: Baxter's Strategic Growth Drivers
Baxter’s Strategic Growth Drivers Portfolio Market Enter Innovation Development Adjacencies Executing on pipeline Driving growth through evidence Expanding beyond the core to opportunities and geographic generation, physician education, unlock new therapies and expansion and targeted market markets
Slide 19: Investment Prioritization
Investment Prioritization Acute Therapies (CRRT) Advanced Surgery Generic Injectable Drugs Core Growth IV Solutions Clinical Nutrition Inhaled Anesthesia Core Return (Select Geographies) On Capital IV Pumps and Sets Peritoneal Dialysis BioPharma Solutions Compounding Elastomerics In-Center Hemodialy
Slide 20: Robust Pipeline Driving Value For Stakeholders
Robust Pipeline Driving Value For Stakeholders Acute Therapies Advanced Surgery Clinical Nutrition Medication Delivery Pharmaceuticals Renal Care Delivering ~$1.7 Billion In 2023 New Product Sales1 1All references to “new products” in this presentation include new product launches, line extensions a
Slide 21: Robust Pipeline Driving Value For Stakeholders
Robust Pipeline Driving Value For Stakeholders ~$150M ~$80M ~$120M 2023 New Product Sales 2023 New Product Sales 2023 New Product Sales Acute Therapies Advanced Surgery Clinical Nutrition ~$400M ~$550M ~$400M 2023 New Product Sales 2023 New Product Sales 2023 New Product Sales Medication Delivery Ph
Slide 22: Focus For Business Development and Licensing
Focus For Business Development and Licensing Potential Opportunities Chronic Kidney Disease Management Targeted Biosimilars Critical Care / Extracorporeal Therapies Multi-Organ Therapies Targeted Surgical Specialties Clinical Decision Support Generic Injectables New Surgical Specialt
Slide 23: Key Takeaways
Key Takeaways Increasing innovation to drive accelerated revenue growth Maintaining strong cadence of product launches and geographic expansions Realizing ongoing benefits of business transformation initiatives and organization optimization Strategically deploying capital to enhance value and improv
Slide 24: OneBaxter Force Multiplier
ONEBAXTER FORCE MULTIPLIER 4 TOP QUARTILE GOALS STRATEGY q 7 Sti ith tfoli id (© Patient safety and Quatty Srnieninpane B) Growth through innovation transformative innovation that Spans prevention to recovery Best place to work A Industry leading performance Baxter — MISSION —— SAVE AND SUSTAIN LIVE
Slide 25: 2018 Investor Conference
— 2018 Investor Conference a
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