Baxter International Inc. · NYSE:BAX
Baxter International — Q1 2019 Earnings Presentation
22 slides from Baxter International's earnings presentation, Apr 25, 2019
Slide 1: First-Quarter 2019 Earnings
First-Quarter 2019 Earnings Baxter International Inc. April 25, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter’s financial results, business development activities, capital structure, cost savings initiatives, R&D pipeline, including results of clinical trials and planned product launches, and financial outlook for
Slide 3: Table of Contents
Table of Contents Performance Summary 5 Financial Results 10 2019 Outlook 17
Slide 4: Our Strategy
Our Strategy Strengthen our portfolio and extend our impact through transformative innovation that spans prevention to recovery 4
Slide 5: Executing On Our Strategy
Executing On Our Strategy First-Quarter 2019 Highlights Building Momentum With Strong Focus On Operational Performance1 ▪ Delivered 2% operational sales growth reflecting the value of a diversified portfolio and an emphasis on innovation ▪ Adjusted EPS growth of 9% driven by solid operational perfor
Slide 6: Continuing Momentum Of Key Financial Metrics
Continuing Momentum Of Key Financial Metrics First-Quarter 2019 Snapshot1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS ~$2.7B 17.1% ~$2.6B $0.76 16.7% $0.70 +2% Operational Growth2 +40 bps +9% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 1See www.baxter.com for information
Slide 7: Strong Performance Driving Operational Growth
Strong Performance Driving Operational Growth First-Quarter 2019 Business Drivers1,2 Renal Care Medication Delivery $851M, +3% Operational $634M, (4%) Operational Continued momentum in PD therapies partially Performance in line with expectations; offset by lower sales for select U.S. sales growth ex
Slide 8: First-Quarter 2019 Sales And Adjusted Earnings
First-Quarter 2019 Sales And Adjusted Earnings1 Metric Q1 2019 Q1 2019 Guidance Actual Sales Growth +1% - 2% +2% Operational Sales Growth ~1% +2% Constant Sales Growth (~3%) (2%) Reported Adjusted Diluted EPS $0.66 - $0.68 $0.76 Growth vs. Prior-Year Period (6%) – (3%) +9% 1See www.baxter.com for in
Slide 9: Advancing Our New Product Portfolio
Advancing Our New Product Portfolio Recent R&D And Commercial Milestones ► Launched the first and only formulation of ready-to-use eptifibatide in a flexible container. Baxter’s GALAXY technology offers healthcare providers preparation efficiencies and helps to avoid potential dosing errors. ► Recei
Slide 10: Financial Results
Financial Results First-Quarter 2019 Earnings April 25, 2019
Slide 11: First-Quarter 2019 Sales By Global Business Unit
First-Quarter 2019 Sales By Global Business Unit1 Q1 2019 Revenue Total Growth $ In Millions U.S. International Total Reported Constant Operational Renal Care $192 $659 $851 (2%) +3% +3% Medication Delivery $406 $228 $634 (6%) (4%) (4%) Pharmaceuticals $232 $277 $509 +3% +6% +9% Clinical Nutrition $
Slide 12: First-Quarter 2019 Sales By Operating Segment
First-Quarter 2019 Sales By Operating Segment1 Q1 2019 Revenue Total Growth $ In Millions Reported Reported Constant Operational Americas $1,408 (2%) (1%) (0%) (North and South America) EMEA (Europe, Middle East and $705 (3%) +4% +4% Africa) APAC $519 +2% +7% +7% (Asia Pacific) Total Baxter $2,632 (
Slide 13: First-Quarter 2019 Adjusted Financial Results
First-Quarter 2019 Adjusted Financial Results1 Q1 2018 Q1 2019 Change Adjusted Gross Margin 43.8% 43.7% (10 bps) Adjusted SG&A Expense 21.9% 22.3% +40 bps (% of Sales) Adjusted R&D Expense 5.1% 4.3% (80 bps) (% of Sales) Adjusted Operating Margin 16.7% 17.1% +40 bps Adjusted Diluted EPS $0.70 $0.76
Slide 14: Driving Operational Excellence Across the Company
Driving Operational Excellence Across the Company Q1 2019 vs. Q1 2018 Adjusted Operating Margin1 17.1% Key Drivers: ▪ Benefits from manufacturing improvements ~40 bps 16.7% and portfolio optimization initiatives offset by lower sales of U.S. cyclo and Brevibloc and (~10 bps) less favorable product m
Slide 15: Maintaining Focus On Cash Flow Generation
Maintaining Focus On Cash Flow Generation Q1 Performance In Line With Expectations1 Operating Cash Flow Capital Expenditures Free Cash Flow2 $447M $292M $198M $148M $155M ($50M) Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 1See www.baxter.com for information regarding non-GAAP financial metrics u
Slide 16: Strategically Deploying Capital To Fuel Growth And Create Value
Strategically Deploying Capital To Fuel Growth And Create Value Reinvestment in Business Investing in higher-margin, faster-growing businesses to drive meaningful innovation and enable accelerating launch cadence Dividend Issuance Announced quarterly dividend payment of $0.19 per share; currently ta
Slide 17: Full-Year 2019 Outlook
Full-Year 2019 Outlook First-Quarter 2019 Earnings April 25, 2019 17
Slide 18: Reaffirming Full-Year 2019 Sales Guidance
Reaffirming Full-Year 2019 Sales Guidance1 Full-Year 2019 Guidance Sales Growth 3% - 4% Operational U.S. Cyclo Competition (<100 bps) Sales Growth 2% - 3% Constant Foreign Exchange (200+ bps) Sales Growth 0% - 1% Reported 1See www.baxter.com for information regarding non-GAAP financial metrics used
Slide 19: Full-Year 2019 Financial Guidance
Full-Year 2019 Financial Guidance1 Full-Year 2019 Full-Year 2019 Prior Guidance Current Guidance Adjusted Operating Margin 18.0% - 18.4% 18.2% - 18.4% Adjusted Diluted EPS $3.22 - $3.30 $3.27 - $3.35 Growth vs. Prior-Year Period 6% - 8% 7% - 10% Operating Cash Flow ~$2.3B ~$2.3B Free Cash Flow ~$1.6
Slide 20: Full-Year 2019 Sales Guidance By Business
Full-Year 2019 Sales Guidance By Business1,2 Full-Year 2019 Full-Year 2019 Constant Currency Operational Renal Care 2% – 3% 2% – 3% Medication Delivery ~6% ~6% Pharmaceuticals LSD Decline LSD Increase Clinical Nutrition ~3% ~3% Advanced Surgery 3% – 4% 3% – 4% Acute Therapies 7% – 8% 7% – 8% Other L
Slide 21: Second-Quarter 2019 Financial Guidance
Second-Quarter 2019 Financial Guidance1 Second-Quarter 2019 Guidance Sales Growth 2% - 3% Operational U.S. Cyclo Competition (<100 bps) Sales Growth ~2% Constant Foreign Exchange (<400 bps) Sales Growth (~2%) Reported Adjusted Diluted EPS $0.80 - $0.82 Growth vs. Prior-Year Period 4% – 6% 1See www.b
Slide 22: First-Quarter 2019 Earnings
First-Quarter 2019 Earnings Baxter International Inc. April 25, 2019