Baxter International Inc. · NYSE:BAX
Baxter International — Investor Day (May 2022)
25 slides from Baxter International's investor day presentation, May 25, 2022
Slide 1: Strategy for Value Creation
STRATEGY FOR VALUE CREATION JOSÉ (JOE) E. ALMEIDA Chairman, President and Chief Executive 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: Unique Opportunity To Create Shareholder Value
A CENTURY Ethics and of saving and Compliance in sustaining lives everything we do Culture Levers ONE OF THE MOST Speed Courage trusted brands Simplicity Collaboration in healthcare Diversity, Equity & Inclusion Unique Opportunity To Create Shareholder Value 3
Slide 4: Transformation Journey: Baxter's Building Blocks
Transformation Journey: Baxter’s Building Blocks 2016 – 2017: 2018 – 2021: A Fresh Start Building the Foundation ✓ Realigned structure to drive innovation ✓ Refined corporate strategy ✓ Created regional go-to-market strategies ✓ Bolstered organic innovation and R&D productivity ✓ Upgraded organizati
Slide 5: Successful Execution Across Key Performance Metrics
Successful Execution Across Key Performance Metrics Global Reported Sales Adjusted Operating Margin +4% CAGR +860 bps $12.8B 18.6% 18.7% 16.2% $11.4B $10.6B $9.9B 10.1% FY 2015 FY 2017 FY 2019 FY 2021 FY 2015 FY 2017 FY 2019 FY 2021 Adjusted Diluted EPS Free Cash Flow +22% CAGR ~5X Increase $3.61 $1
Slide 6: Transformation Journey: Baxter's Building Blocks
Transformation Journey: Baxter’s Building Blocks 2016 – 2017: 2018 – 2021: 2022+ A Fresh Start Building the Foundation Accelerating Transformation ✓ Realigned structure to drive innovation ✓ Refined corporate strategy ✓ Unlocking innovation across the care continuum through connected ✓ Created regio
Slide 7: Save and Sustain Lives
Embarking On Next Phase Of Transformation Journey Mission Save and Sustain Lives Vision Transform healthcare with customer focus: improve patient outcomes, enhance workflow efficiency, enable cost-effective care 7
Slide 8: Baxter Pro Forma Profile
Baxter Pro Forma Profile Pro Forma Sales by Segment Pro Forma Sales by GBU 350+ Million Global Business Unit 2021 Sales2 Patients’ lives Renal Care $3.9B touched annually $15.6B Pharmaceuticals & BPS $3.0B Medication Delivery $2.9B 2021 Sales1 PSS & GSS $1.9B 100+ Front Line Care $1.1B Advanced Surg
Slide 9: Broadened Presence Across The Care Continuum
Broadened Presence Across The Care Continuum Hospital Home Alternate Care Care Site Care Primary Care, Dialysis Clinic, Emergency, Surgical, Acute & Chronic Ambulatory Surgery Centers, Med Surg, Critical Care, Home Care Immediate Care, Outpatient Pharmacy, Care Comms Cardiology, Infusion Clinics Ren
Slide 10: Addressing Global Healthcare Macro Trends
Addressing Global Healthcare Macro Trends Macro trends impacting global healthcare... 1 Increasing number of patients with complex chronic disorders 2 Digital health and remote care accelerated due to COVID-19 pandemic and healthcare staffing shortage 3 Outcomes based reimbursement as healthcare sys
Slide 11: Compelling Strategy For Value Creation
Compelling Strategy For Value Creation Innovation Market Operational Capital Expansion Efficiency Allocation Connected Care Revenue Synergies Cost Synergies Portfolio Management Core Therapies Geographic Expansion Digital Transformation Debt Repayment Channel Expansion Quality, Safety, and Dividends
Slide 12: Participating In Large Durable End Markets
Participating In Large Durable End Markets 2022 2022 – 2025 Market Size CAGR 3% - 4% PSS & GSS ~$13B 6% - 7% Sustainable market growth Acute Therapies ~$1B 6% - 7% Front Line Care ~$8B 5% - 6% Advancing category Renal Care ~$14B ~4% leadership with Advanced Surgery ~$4B 3% - 4% innovative healthca
Slide 13: Innovating With Connected Care And Core Therapies
Innovating With Connected Care And Core Therapies Sites of Care: Hospital Home Alternate Care Care Site Care Innovation Connected Care Core Therapies Focus: Devices or software that can connect, Core therapies and essential products communicate, and/or analyze data to help designed to address patien
Slide 14: Driving Growth With Robust Pipeline Of New Product Launches
Driving Growth With Robust Pipeline Of New Product Launches Renal Care Pharmaceuticals & BPS Medication Delivery PSS & GSS Sharesource Next Generation Doxil / Caelyx Norepinephrine Novum IQ LVP & Novum IQ PCA Next Gen ICU Voalte Analytics 1.0 Global APD Cycler Syringe Pump Pump Smart+ Bed Platform M
Slide 15: Executing Market Expansion Through Focused Initiatives
Executing Market Expansion Through Focused Initiatives Revenue Synergies Geographic Expansion Channel Expansion Market Development ✓ Utilizing Baxter ✓ Prioritizing targeted ✓ Broadening access to ✓ Increasing adoption geographic footprint geographies new customers of underpenetrated to introduce Hi
Slide 16: Realizing Efficiencies Through Operational Excellence
Realizing Efficiencies Through Operational Excellence Increasing Efficiencies Through Automation and Digitization G&A Efficiencies Hillrom Transforming Integrated Supply Chain Synergies Digital Transformation Integrated Supply Chain Delivering On Anticipated Hillrom Cost Synergies Delivering ~$1B Of
Slide 17: Executing Disciplined Capital Allocation Strategy
Executing Disciplined Capital Allocation Strategy Portfolio Debt Dividends Share Management Repayment Repurchases Balancing Business Investments To Accelerate Growth And The Return Of Capital To Shareholders 17
Slide 18: Optimizing Baxter's Profile With Strategic Portfolio Management
Optimizing Baxter’s Profile With Strategic Portfolio Management Enterprise-Wide M&A Themes Hospital Automation & Hospital & Remote Point-of-Care (POC) & Home & Alternate Site Connectivity Monitoring Companion Diagnostics Therapies Cardiology Workflow Clinical • Prioritizing investments in key adjace
Slide 19: 2030 Corporate Responsibility Commitment And Goals
2030 Corporate Responsibility Commitment And Goals ► Achieve carbon neutrality for ► Bring home dialysis to ► Invest $275M in direct operations by 2040 more underserved patients underserved communities ► Reduce greenhouse gas ► Improve product process ► Achieve top workplace emissions capabilities s
Slide 20: Recognized Top Employer & Outstanding Corporate Citizen
Recognized Top Employer & Outstanding Corporate Citizen 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 400 Most Disability Equality Index Respo
Slide 21: Creating Long-Term Value With Our Strategy
Creating Long-Term Value With Our Strategy Value Creation Strategy: Baxter Weighted Average Market Growth Rate: Innovation 5%+ 3% - 4% Market Expansion ~3% Strengthening leadership position Shifting portfolio to higher growth by transforming Competing in markets while healthcare Operational durable
Slide 22: Maintaining Focus On Top Quartile Goals
Maintaining Focus On Top Quartile Goals Patient Best place safety & to work Quality Growth Industry through leading innovation performance 22
Slide 23: Continuing Momentum In 2022 And Beyond
Continuing Momentum In 2022 And Beyond ► Advancing rapid, successful integration of Hillrom ► Driving strong cadence of new product launches, promoting Connected Care and Core Therapy innovations ► Executing upon Market Expansion opportunities to broaden the reach of our portfolio and deepen therapy
Slide 24: Baxter's Executive Leadership Speakers
Baxter’s Executive Leadership Speakers Introduction CEO Introduction Finance Update Integrated Supply Chain One Baxter Strategy and Clare Trachtman José (Joe) E. Almeida James (Jay) Saccaro James (Jim) Borzi Advanced Surgery VP, Investor Relations Chairman, President and Executive VP and Chief Senio
Slide 25: Baxter 2022 Investor Conference
Baxter 2022 Investor Conference Wigs ee,