Baxter International Inc. · NYSE:BAX
Baxter International — Investor Day (May 2022)
10 slides from Baxter International's investor day presentation, May 25, 2022
Slide 1: Integrated Supply Chain
INTEGRATED SUPPLY CHAIN JAMES BORZI Senior VP, Chief Supply Chain Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements The presentations being made on May 25, 2022 include forward-looking statements concerning Baxter’s financial results, R&D pipeline, including planned product launches (many of which are subject to regulatory approval and may require additional investment) and results of c
Slide 3: Building A World-Class Integrated Supply Chain
Building A World-Class Integrated Supply Chain1 Planning & Fulfillment Procurement 800K+ 100+ ~$8B Freight Lanes Countries ($3B Direct / $5B Indirect) Total Spend Operations Sustainability Goals 4 Billion 65 25% 2040 Units Produced Plants Reduction in Scope 1&2 Carbon Annually GHG Emissions by 2030
Slide 4: Transformation Journey: Integrated Supply Chain
Transformation Journey: Integrated Supply Chain 2020 - 2021 2022 - 2025 Enhancing Foundation Accelerating Transformation People Compliance Resilience 44
Slide 5: Challenging Macroenvironment Leading To Near Term Inflationary Pressures
Challenging Macroenvironment Leading To Near Term Inflationary Pressures 20%+ Materials 20%+ Labor 30%+ Freight Estimated Total Estimated Total Estimated Total Inflation Inflation Inflation 2020 - 2022 2020 - 2022 2020 - 2022 Price Increases Resin API/Chemical $ Increased Labor Costs: Wage Rates | O
Slide 6: Driving A Robust Value Improvement Process
Driving A Robust Value Improvement Process Cumulative VIP Performance Value Drivers: Reorienting the organization (% of Value Of Production) Materials back to “Lean” basics 13%+ Enhancing Value Improvement Productivity Processes (VIP) by: • Implementing a shared 8%+ Architecture strategic cost reduc
Slide 7: Implementing A Detailed Roadmap To Drive VIPs
Implementing A Detailed Roadmap To Drive VIPs Value Driver Key Initiatives Materials • Dual/Secondary Sources • Insourcing of Molded Components 30% Of VIP • Strategic Partnerships Productivity • Direct & Indirect Labor Efficiencies • Overall Equipment Effectiveness 22% Of VIP • Waste Reduction Archi
Slide 8: Optimizing Baxter's Global Network
Optimizing Baxter’s Global Network Driving In-Region Manufacturing By 2025 • Regionalization of Supply • Enhanced Asset Utilization 88% to 92% 81% to 89% 71% to 87% • Supply Chain Resilience • Footprint Rationalization Americas EMEA APAC Make Where You Sell; Buy Where You Make 48
Slide 9: Integrated Supply Chain Becoming A Competitive Advantage
Integrated Supply Chain Becoming A Competitive Advantage • Accelerating the cultural and operational transformation • Building an end-to-end, resilient, cost-effective Integrated Supply Chain • Simplifying processes to enable speed and agility through Lean principles • Driving network optimization w
Slide 10: Baxter 2022 Investor Conference
Baxter 2022 Investor Conference Wigs ee,