Baxter International Inc. · NYSE:BAX
Baxter International — 37th Annual J.P. Morgan Healthcare Conference (January 2019)
16 slides from Baxter International's conference presentation, Jan 7, 2019
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference Jay Saccaro January 7, 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, Baxter’s long range plan (
Slide 3: Baxter Confidential — Do not distribute without prior approval |
Baxter Confidential — Do not distribute without prior approval | 3
Slide 4: Innovations that save and sustain lives
Operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers that make it happen Baxter Confidential — Do not distribute without prior approval | 4
Slide 5: Baxter Profile: A Diversified And Global Portfolio
Baxter Profile: A Diversified And Global Portfolio1 2017 Global Revenue ~$0.5B ~$0.7B Acute Therapies Advanced Surgery $10.6B ~$0.9B ~$2.7B Clinical Nutrition Medication Delivery Americas 54% EMEA 26% ~$1.9B ~$3.5B Asia Pacific 20% Pharmaceuticals Renal Care 1Sales and related figures represent FY 2
Slide 6: Our Strategy
Product 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 6
Slide 7: Prioritizing Patient Safety And Quality
Prioritizing Patient Safety And Quality Investing in quality systems and processes Improving key quality metrics Three warning letters closed Strengthening relationships with global regulators Baxter Confidential — Do not distribute without prior approval | 7
Slide 8: Building A Best Place To Work
Building A Best Place To Work A noted leader in corporate social responsibility Recognized as an outstanding employer Baxter Confidential — Do not distribute without prior approval | 8
Slide 9: Strengthening And Extending Our Impact
Strengthening And Extending Our Impact 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 mar
Slide 10: Robust Pipeline Accelerating Growth
Robust Pipeline Accelerating Growth1 New Product Launches Powered By: Culture of innovation with the right organization and talent in place Resources aligned with high-growth opportunities Accelerated pace of incremental and transformative innovation Successful execution of commercial launches acros
Slide 11: Near-Term Launches Fueling Long-Term Growth
Near-Term Launches Fueling Long-Term Growth Pipeline Highlights: Floseal Spectrum IQ Fast Prep Point of Care Infusion System 2018 2019 2020 Olimel N12 Prismax New Pump Platform Baxter Confidential — Do not distribute without prior approval 11
Slide 12: Driving Operational Excellence Through Business Transformation
Driving Operational Excellence Through Business Transformation Zero-Based Organization Cumulative Savings vs. 2015 Rightsizing organization with reduced spans and layers ~$1.1B ~$1.2B Zero-Based Spending ~$0.9B Employing disciplined cost assessment to eliminate waste Focused on sustainability Portfo
Slide 13: Strategically Deploying Capital To Create Value For Shareholders
Strategically Deploying Capital To Create Value For Shareholders REINVEST IN SHARE DIVIDENDS M&A BUSINESS REPURCHASE Delivering sustainable, Currently targeting Selective share Executing strategic profitable growth with ~35% dividend payout repurchases to return acquisitions and a reinvigorated rati
Slide 14: M&A Objectives
Thoroughly Assessing Business Development Opportunities Drive Capitalize On Category Leadership M&A Core Capabilities Objectives Rigorous Preserve Investment Financial Criteria Grade Credit Rating Disciplined Assessment Of Opportunities Considering Both Strategic Fit And Financial Criteria Baxter Co
Slide 15: Solid Long-Term Financial Outlook
Solid Long-Term Financial Outlook1,2 Global Reported Adjusted Operating Adjusted Diluted Free Cash Revenue Margin EPS Flow3 23% - 24% $4.90- ~$2.65B 20% - 21% $5.05 17.3% $3.60- ~$2.1B ~5% $3.75 $2.98- $3.00 ~$1.5B 2018 – 2023 CAGR Constant Currency +600bps >10% 5-year CAGR >1.7x FY 2018 FY 2020 FY
Slide 16: Continuing Momentum In 2019 And Beyond
Continuing Momentum In 2019 And Beyond • Increasing innovation to drive accelerated revenue growth • Maintaining strong cadence of product launches and geographic expansions • Realizing ongoing benefits of business transformation initiatives • Strategically deploying capital to enhance value and imp
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