Baxter International Inc. · NYSE:BAX
Baxter International — 36th Annual J.P. Morgan Healthcare Conference (January 2018)
18 slides from Baxter International's conference presentation, Jan 8, 2018
Slide 1: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference Joe Almeida | Chairman and CEO January 8, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter’s financial results, business development activities (including the recent acquisition of Claris Injectables in July 2017), capital structure, cost savings initiatives, R&D pipeline including results of cli
Slide 3: Unique opportunity to create shareholder value
85+ year heritage of Strong saving and global business sustaining lives with great people One of the most Established market trusted brands leadership across in medical products portfolio Unique opportunity to create shareholder value 3
Slide 4: Baxter Profile
Baxter Profile 2016 Revenue By Business By Market 38% 42% $10.2 62% Renal 58% U.S. Billion Hospital Products International Industry-Leading Global Continuous Operational Portfolio Presence Innovation Excellence 4
Slide 5: Aspiration For Baxter 2020
Aspiration For Baxter 2020 Quality and Best Place to Industry Leading Patient Safety Work Performance Investing in quality systems Portfolio And and processes Innovation Management Improving key quality metrics Operational Excellence Strengthening relationships with global regulators Capital Ensurin
Slide 6: Industry Leading Performance Advancing Three Critical Drivers
Industry Leading Performance Advancing Three Critical Drivers Portfolio And Operational Capital Innovation Excellence Allocation Management Drive Improved Performance And Value Creation To Help Deliver Top-Quartile Shareholder Returns 6
Slide 7: Lifesaving Innovation Since 1931
Lifesaving Innovation Since 1931 Portfolio And Operational Capital Innovation Excellence Allocation Management First First First First First Commercial Commercial Peritoneal Flexible IV MINI-BAG IV Solutions Dialysis Dialysis Solution System System Solutions Containers 7
Slide 8: Innovating To Address Unmet Needs
Innovating To Address Unmet Needs Portfolio And Operational Capital Innovation Excellence Allocation Management Patients Providers Payers Delivering meaningful, measurable value to stakeholders 8
Slide 9: Advancing Our New Product Portfolio
Advancing Our New Product Portfolio Portfolio And Operational Capital Innovation Excellence Allocation Management Generic Injectables Expansion Generating Clinical Evidence Product Enhancements Over 2,800 U.S. Patients New Pump Platforms New Indications Focused On High Potential, High Value Innovati
Slide 10: Accelerating Launch Cadence
Accelerating Launch Cadence Portfolio And Operational Capital Innovation Excellence Allocation Management ► New Products ► New Indications ► Geographic Expansions 1Launches include new products, geographic expansions, and line extensions; graphic is intended as visual representation 10
Slide 11: Industry Leading Performance Advancing Three Critical Drivers
Industry Leading Performance Advancing Three Critical Drivers Portfolio And Operational Capital Innovation Excellence Allocation Management Drive Improved Performance And Value Creation To Help Deliver Top-Quartile Shareholder Returns 11
Slide 12: Transforming Cost Structure And Enhancing Operational Efficiency
Transforming Cost Structure Portfolio And Innovation Operational Excellence Capital Allocation And Enhancing Operational Efficiency1 Management Zero-Based Organization Adjusted Operating Margin Rightsizing organization with reduced spans & layers ~20% Zero-Based Spending Employing disciplined cost a
Slide 13: Industry Leading Performance Advancing Three Critical Drivers
Industry Leading Performance Advancing Three Critical Drivers Portfolio And Operational Capital Innovation Excellence Allocation Management Drive Improved Performance And Value Creation To Help Deliver Top-Quartile Shareholder Returns 13
Slide 14: Strategically Deploying Capital To Fuel Growth And Create Value
Strategically Deploying Capital To Portfolio And Innovation Operational Excellence Capital Allocation Fuel Growth And Create Value1 Management Reinvest in Business Strategic investment to accelerate innovation Free Cash Flow2 ~$2.0B Dividends Targeting ~35% long term payout ratio BAX Share Repurchas
Slide 15: Rigorous Assessment Of Business Development And Licensing Opportunities
Rigorous Assessment Of Business Portfolio And Innovation Operational Excellence Capital Allocation Development And Licensing Opportunities Management Drive category leadership Net Debt / EBITDA Enhance Baxter’s weighted average market growth rate Guidelines Strategic Expand into strategic adja
Slide 16: Accelerating Growth Of Key Metrics
Accelerating Growth Of Key Metrics Financial Outlook1 Global Reported Adjusted Adjusted Free Cash Flow Revenue Operating Margin Diluted EPS Approaching $3.25 - $3.40 $12B ~$2.0B ~20.0% ~$10.6B $2.40 - $2.43 15.5% - 16.0% ~$1.2B ~$10.2B 13.6% $1.96 ~$0.9B 2016 2017 2020 2016 2017 2020 2016 2017 2020
Slide 17: Continuing Strong Momentum
Continuing Strong Momentum ► Increasing innovation to drive accelerated revenue growth ► Maintaining strong cadence of product launches and geographic expansions ► Realizing ongoing benefits of cost reduction initiatives and organization optimization ► Opportunistically deploying capital to enhance
Slide 18: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference Joe Almeida | Chairman and CEO January 8, 2018
Baxter International — 36th Annual J.P. Morgan Healthcare Conference (January 2018) on 6ix