Baxter International Inc. · NYSE:BAX
Baxter International — Raymond James 40th Annual Institutional Investors Conference (March 2019)
13 slides from Baxter International's conference presentation, Mar 5, 2019
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference Jay Saccaro, EVP & CFO March 5, 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 Profile: A Diversified And Global Portfolio
Baxter Profile: A Diversified And Global Portfolio1 2018 Global Revenue ~$0.5B ~$0.8B Acute Therapies Advanced Surgery $11.1B ~$0.9B ~$2.7B Clinical Nutrition Medication Delivery Americas 54% ~$2.1B ~$3.7B EMEA 27% APAC 20% Pharmaceuticals Renal Care 1Sales and related figures represent FY 2018; Oth
Slide 4: 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 4
Slide 5: Delivering On Our Strategy
Delivering On Our Strategy 2018 Business Highlights Building Momentum With Strong Focus on Capitalizing On New Product Launches Operational Performance And Geographic Expansion ► Delivered solid fourth-quarter 2018 earnings growth, largely driven ► Reallocating investment to higher-margin, faster-gr
Slide 6: 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 inv
Slide 7: Executing On Near-Term Launches To Fuel Growth
Executing On Near-Term Launches To Fuel Growth1 New Product Highlights Floseal Spectrum IQ Fast Prep Point of Care Infusion System 2018 2019 2020 Olimel N12 Prismax New Pump Platform 1All references to “new products” and “launches” in this presentation include new product launches, line extensions a
Slide 8: 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 ~$1.2B ~$1.1B Zero-Based Spending ~$1.0B Employing disciplined cost assessment to eliminate waste Focused on sustainability Portfo
Slide 9: Creating Incremental Value Through Capital Deployment
Creating Incremental Value Through Capital Deployment Reinvestment Strategically investing in higher-margin in Business opportunities to drive innovation Increased annual dividend rate by 19% in 2018; Dividends currently targeting ~35% dividend payout ratio over time BAX Share Repurchased ~36 millio
Slide 10: Thoroughly Assessing Business Development Opportunities
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 10
Slide 11: Delivering A Solid Financial Outlook
Delivering A Solid Financial Outlook1,2 Constant Revenue Adjusted Operating Adjusted Diluted Free Cash Growth Margin EPS Flow3 20% - $3.60 – 18.0% - 21% $3.22 – $3.75 ~$2.1B 18.4% $3.30 2% - 3% 17.4% $3.05 ~$1.6B 2019 Guidance $1.4B 4% - 5% 2018 – 2020 CAGR Outlook ~300bps ~20% ~1.5x 2018 2019 2020
Slide 12: 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
Slide 13: Unique opportunity to create shareholder value
85+ year heritage of Strong saving and global business sustaining lives with great people Established One of the most market trusted brands in medical products leadership across portfolio Unique opportunity to create shareholder value 13