Baxter International Inc. · NYSE:BAX
Baxter International — 41st Annual J.P. Morgan Healthcare Conference (January 2023)
18 slides from Baxter International's conference presentation, Jan 9, 2023
Slide 1: 41st Annual J.P. Morgan Healthcare Conference
41 ST ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE José (Joe) Almeida Chairman & Chief Executive Officer JANUARY 9, 2023 1
Slide 2: Safe Harbor Statement
S A F E H A R B O R S TAT E M E N T This presentation includes forward-looking statements concerning the company's financial results and business development, transformation and regulatory activities (including the proposed spinoff of the company’s Renal Care and Acute Therapies businesses, the simp
Slide 3: Operating at the Intersection of Progress and Purpose
O P E R AT I N G AT T H E I N T E R S E C TI ON O F P RO G R E S S A N D P U R P OS E A C E N T U R Y O F S AV I N G A N D S U S TA I N I N G L I V E S 3
Slide 4: Recognized as Top Employer & Outstanding Corporate Citizen
R E C O G N I Z E D T O P E M P L OY E R & O U T S TA N D I N G C O R P O R AT E C I T I Z E N Representative Highlights Dow Jones Sustainability Indices 3BL Media: 100 Best Corporate Longtime component of DJSI Global and Citizens DJSI U.S. Indices Recognized for ESG leadership Newsweek: America’s M
Slide 5: Compelling Strategy for Value Creation
C O M P E L L I N G S T R AT E GY F O R VA L U E C R E AT I O N Mission: TO SAVE AND SUSTAIN LIVES Vision: Transform healthcare with customer focus: improve patient outcomes, enhance workflow efficiency and enable cost-effective care Strategic Value Innovation Market Operational Capital Creation Dri
Slide 6: January 6, 2023 Announcement
JANUARY 6, 2023 ANNOUNCEMENT Renal Care and Acute Therapies to Initiating plans to simplify Baxter’s spin off into a standalone, leading operating model to drive strategic global healthcare company clarity, improve end-to-end operational efficiencies, and accelerate growth • Pursuing strategic alter
Slide 7: Challenges Faced and Steps Being Taken
C H A L L E N G E S FA C E D A N D S T E P S B E I N G TA K E N Challenges faced Steps being taken Highly diverse product Executing set of portfolio moves to portfolio challenging drive strategic clarity and focus resource allocations capital allocation into innovation and commercial Inefficiencies
Slide 8: Establishing Two Lead Healthcare Companies with Shared Heritage
E S TA B L I S H I N G T W O L E A D I N G H E A LT H C A R E C O M PA N I E S , W I T H S H A R E D H E R I TA G E O F S AV I N G A N D S U S TA I N I N G L I V E S KidneyCo Global innovator in kidney Healthcare leader focused on care delivering value for providing an array of medical patients thro
Slide 9: Spin Positions Both Businesses to Drive Additional Shareholder Value
SPIN POSITIONS BOTH BUSINESSES TO DRIVE ADDITIONAL S H A R E H O L D E R VA L U E KidneyCo Baxter Renal-focused healthcare company with Leading medtech company with broad portfolio leading product portfolio, history of innovation of core therapy and connected care offerings and broad geographic foot
Slide 10: KidneyCo Has Clear, Well-Defined Strategic Objectives
K I D N E YC O H A S C L E A R , W E L L - D E F I N E D S T R AT E G I C O B J E C T I V E S Key Strategic Objectives > Increase PD therapy penetration globally Peritoneal > Deliver additional connected care solutions Dialysis > Advance new technologies to simplify therapy and drive greater adoptio
Slide 11: Spin Expected to Accelerate Value Creation Potential
S P I N E X P E C T E D T O A C C E L E R AT E VA L U E C R E AT I O N P O T E N T I A L • Increase PD and HDx therapy penetration in existing geographies • Drive CRRT portfolio expansion in the U.S. and Commercial geographic expansion in emerging markets Enhance value creation • Accelerate R&D inve
Slide 12: Transaction Overview and Next Steps
TRANSACTION OVERVIEW AND NEXT STEPS • Baxter expects to spin off its Renal Care and Acute Therapies business units into a new independent, publicly traded company (“KidneyCo”) • Spinoff expected to be structured as a tax-free distribution of newly issued shares of KidneyCo common stock to Baxter sha
Slide 13: Portfolio Actions Coupled with Simplified Operating Model Enhance Baxter's Value Creation Potential
P O R T F O L I O A C T I O N S C O U P L E D W I T H S I M P L I F I E D O P E R AT I N G M O D E L E N H A N C E B A X T E R ’ S VA L U E C R E AT I O N P O T E N T I A L • Streamline portfolio and commercial structure to fulfill Baxter’s vision • Accelerate commercial investments to further penet
Slide 14: Optimizing Manufacturing and Supply Chain Network to Enhance Efficiencies
O P T I M I Z I N G M A N U FA C T U R I N G A N D S U P P LY C H A I N T O E N H A N C E NET WORK EFFICIENCIES Manufacturing footprint network optimization • In Region/For Region manufacturing & fulfillment (make where you sell; buy where you make mindset) • Manufacturing & distribution network rat
Slide 15: Actions Will Further Accelerate Our Disciplined Capital Allocation Strategy
T H E S E A C T I O N S W I L L F U R T H E R A C C E L E R AT E O U R D I S C I P L I N E D C A P I TA L A L L O C AT I O N S T R AT E GY PORTFOLIO SHARE MANAGEMENT DEBT REPAYMENT DIVIDENDS REPURCHASES Currently pursuing strategic Utilizing proceeds from Maintaining Dividends Expecting to reinstate
Slide 16: Continuing Momentum In and Beyond
C O N T I N U I N G M O M E N T U M I N 2 0 2 3 A N D B E YO N D ► Proposed KidneyCo spinoff to create two leading healthcare companies with robust product portfolios ► Simplified operating model expected to enable greater strategic clarity and faster decision making ► Disentanglement of manufacturi
Slide 17: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 17
Slide 18: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation includes the company’s unaudited 2021 pro forma net sales as if its acquisition of Hillrom and proposed spinoff of its Renal Care and Acute Therapies businesses had occurred as of January 1, 2021. It also includes unaudited 2021 pro forma net sales for t
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