Baxter International Inc. · NYSE:BAX
Baxter International — Shareholder Meeting (May 2020)
24 slides from Baxter International's shareholder meeting presentation, May 5, 2020
Slide 1: 2020 Annual Meeting of Stockholders
2020 Annual Meeting of Stockholders May 5, 2020
Slide 2: 2020 Annual Meeting of Stockholders
2020 Annual Meeting of Stockholders Introductions 2020 Annual Baxter Voting Questions Adjournment and Meeting Meeting Overview Results and Procedures Proposals Answers 2
Slide 3: 2020 Annual Meeting of Stockholders
2020 Annual Meeting of Stockholders May 5, 2020
Slide 4: Baxter’s Board of Directors
Baxter’s Board of Directors José (Joe) E. Almeida Thomas T. Stallkamp Thomas F. Chen John D. Forsyth James R. Gavin III, Peter S. Hellman M.D., Ph.D. Michael F. Mahoney Patricia B. Morrison Stephen N. Oesterle, Cathy R. Smith Albert P.L. Stroucken Amy A. Wendell M.D. All Directors up for reelection
Slide 5: Baxter’s Senior Leadership Team
Baxter’s Senior Leadership Team Giuseppe Accogli Heather Knight Reaz Rasul SVP and President, Americas GM, U.S. Hospital Products GM, Acute Therapies Laura Angelini Jacqueline (Jackie) Kunzler, Ph.D. Philippe Reale GM, Renal Care SVP and Chief Quality Officer VP, Planning & Fulfillment Alex Blanco K
Slide 6: 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. These forward-looking stat
Slide 7: 2020 Annual Meeting of Stockholders
2020 Annual Meeting of Stockholders May 5, 2020
Slide 8: 2020 Annual Meeting Proposals
2020 Annual Meeting Proposals PROPOSAL PROPOSAL PROPOSAL PROPOSAL PROPOSAL 1 2 3 4 5 Election of Advisory Vote Ratification of Independent Right to Act Directors to Approve Appointment of Board by Written Named Independent Chairman Consent Executive Registered Officer Public Compensation Accounting
Slide 9: 2020 Annual Meeting of Stockholders
2020 Annual Meeting of Stockholders May 5, 2020
Slide 10: Advancing our Mission
Advancing our Mission 10
Slide 11: Rising to the Challenge of COVID-19
Rising to the Challenge of COVID-19 ► Maximizing production of critical medical products to support increased patient care levels ► Protecting employee health and safety through enhanced infection control procedures ► Actively recruiting up to 2,000 additional permanent and temporary roles globally
Slide 12: Baxter Profile: A Diversified Global Portfolio
Baxter Profile: A Diversified Global Portfolio1 2019 Global Revenue ~$3.6B ~$2.8B Renal Care Medication Delivery $11.4B ~$2.2B ~$0.9B Pharmaceuticals Clinical Nutrition Americas 54% ~$0.9B ~$0.5B EMEA 26% Asia Pacific 20% Advanced Surgery Acute Therapies 1Sales and related figures represent FY 2019;
Slide 13: Full Year 2019 Financial Snapshot
Full Year 2019 Financial Snapshot1 Global Reported Adjusted Adjusted Diluted Free Cash Flow3 Sales Operating Margin Earnings per Share +5% +140 +14% +4% Operational Growth2 Basis Points ~$11.4B $3.31 ~$11.1B 18.7% $1.4B $1.4B $2.91 17.3% FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 201
Slide 14: ONEBAXTER FORCE MULTIPLIER
ONEBAXTER FORCE MULTIPLIER TOP QUARTILE GOALS x STRATEGY ; 7 Strengthen our portfolio and CO Patient safety and Quality orenerien Parent throuetl transformative innovation that Spans prevention to recovery ®) Growth through innovation Best place to work ©) Industry leading performance Baxter —— MISS
Slide 15: Patient Safety and Quality: Our Top Priority
Patient Safety and Quality: Our Top Priority Investing in quality systems and processes Improving key quality metrics Strengthening relationships with global regulators Six FDA warning letters resolved since 2014 Sole remaining open letter: • Ahmedabad, India 15
Slide 16: Best Place to Work: Recognized for Excellence
Best Place to Work: Recognized for Excellence Baxter’s inclusive culture and diverse Baxter drives sustainability throughout its workforce help advance our Mission and operations, and supports increased access fuel innovation. to care, disaster relief, and STEM education, among other efforts. Select
Slide 17: Growth Through Innovation: Expanding our Impact
Growth Through Innovation: Expanding our Impact Multiple Avenues to Increase Patient Impact, Accelerate Growth Portfolio Market Enter Innovation Development Adjacencies Executing on pipeline Driving growth through Expanding beyond the opportunities and evidence generation, core to unlock new geograp
Slide 18: Growth Through Innovation: Expanding our Impact
Growth Through Innovation: Expanding our Impact Select Recent Highlights Include: Launch of Sharesource 2.0 U.S., Canadian launches of U.S. FDA approval for faster Acquired Cheetah Medical, clinical portal PrisMax system for CRRT preparation of Floseal a leader in hemodynamic Hemostatic Matrix monit
Slide 19: Growth Through Innovation: Pipeline Momentum
Growth Through Innovation: Pipeline Momentum 2020+ Highlights Culture of innovation with the right organization and talent in place Resources aligned with high-growth opportunities Expanded Pump Offerings Sharesource Analytics Accelerated pace of incremental and transformative innovation Focused on
Slide 20: Industry Leading Performance: Operational Excellence
Industry Leading Performance: Operational Excellence Realized $1.0B+ Cumulative Pursuing Further Opportunities for Annual Savings to Date vs. 2015 Operational Efficiency ~$1.2B Strategic Growth ~$1.1B ~$1.0B Operations Optimization ~$0.4B Portfolio Simplification 2016 2018 2020 2023 Continued Financ
Slide 21: Industry Leading Performance: Capital Deployment
Industry Leading Performance: Capital Deployment Strategically Deploying Capital to Create Value for Investors REINVEST IN SHARE BUSINESS DIVIDENDS REPURCHASE1 M&A Investing in meaningful Increased quarterly Selective share Executing strategic innovation and growth dividend to $0.245 per repurchases
Slide 22: Delivering Significant Value for Investors
Delivering Significant Value for Investors Total Shareholder Returns, 12/31/2015 – 5/1/20201 270 260 250 240 ~141% BAXTER 230 220 210 ~109% IHI Indexed Return 200 190 180 ~51% S&P 500 170 160 ~51% DOW 150 140 130 ~47% S&P CARE HEALTH 120 110 100 90 80 70 Apr-17 Dec-15 Apr-16 Aug-16 Dec-16 Aug-17 Dec
Slide 23: Continuing Momentum: 2020 and Beyond
Continuing Momentum: 2020 and Beyond ► Ensuring responsiveness and agility in an uncertain market ► Increasing innovation to drive accelerated revenue growth ► Maintaining strong cadence of product launches and geographic expansions ► Realizing ongoing benefits of business transformation initiatives
Slide 24: 2020 Annual Meeting of Stockholders
2020 Annual Meeting of Stockholders May 5, 2020
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