abbott a growth & income investment...some statements in this presentation may be...

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1 A Growth & Income Investment ABBOTT JP Morgan Healthcare Conference January 11, 2016 Brian Yoor, Senior Vice President, Finance and Chief Financial Officer

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Page 1: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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A Growth & Income Investment

ABBOTT

JP Morgan Healthcare Conference January 11, 2016 Brian Yoor, Senior Vice President, Finance and Chief Financial Officer

Page 2: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, “Risk Factors,’’ to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2014, and in the interim reports filed on Form 10-Q for subsequent quarterly periods, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

FORWARD LOOKING STATEMENT

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Page 3: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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TOP-TIER GROWTH & INCOME INVESTMENT

Relevance

Leadership positions in

businesses that are aligned with

major trends and the broader

global environment

Balance

Well-balanced diversity across our businesses,

geographies, and mix of

payers

Global Presence

One of the most globalized healthcare

companies with strong positions in both developed and emerging

markets

Performance

Top-tier growth, steady margin

expansion, strong cash flow,

increasing returns to

shareholders

Page 4: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

LEADING WITH SOLUTIONS ACROSS THE SPECTRUM OF HEALTH

#1 worldwide in adult nutrition

#1 in U.S. pediatric nutrition

World’s 1st bioresorbable scaffold

World’s leading mitral valve repair device

#1 in LASIK; #2 in cataract

#2 Pharma Co. in India

Top 10 Pharma Co. in Latin America and Russia

#1 in blood screening

Leading diagnostics platforms

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Page 5: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

ALIGNED WITH TRENDS

Growth in emerging markets

Investing in health care

Emerging middle class

Aging population globally

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Page 6: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

6 Source: HBR ‘Prospects for Emerging Markets Aren’t as Bad as You’ve Heard’ (12/3/2015)

Source: World Health Organization, BMI Research and Haver

ALIGNED WITH TRENDS

Page 7: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

MEETING GROWING HEALTH NEEDS IN DEVELOPED AND DEVELOPING MARKETS

50%

OF SALES IN EMERGING MARKETS

50%

OF SALES DIRECTLY TO CONSUMERS

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Page 8: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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OUR GLOBAL IDENTITY life. to the fullest.

• Build a highly recognizable brand

• Our customer base is increasingly consumer-facing

• Connect with the people who use our products

• Cover the entire spectrum of care

Page 9: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

NUTRITION

34% of sales

MEDICAL DEVICES

27% of sales

ESTABLISHED PHARMACEUTICALS

16% of sales

DIAGNOSTICS

23% of sales

BROAD AND BALANCED PORTFOLIO

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Page 10: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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UNIQUELY BALANCED FOR GROWTH

Nutrition

• 45% Emerging; 55% Developed

• 45% Adult; 55% Pediatric

• #1 Adult Nutrition globally

• #1 Pediatric in U.S.; other geographies

STRATEGIC PRIORITIES • Capture share with innovation

• Grow and shape markets

• Expand operating margin

• Invest for sustainable growth

Pediatric Adult

13.2% 15.8%

18.7% 21.0%

0%

5%

10%

15%

20%

25%

2011 2012 2013 2014

Operating Margin

Page 11: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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RESHAPED FOR GROWTH Branded Generic Pharmaceuticals

Other Emerging Markets

Latin America

Russia

• CFR builds presence in Latin America

• Veropharm builds presence in Russia

STRATEGIC PRIORITIES

• Strengthening local presence and

capabilities

• Building locally-relevant portfolios in

key therapeutic areas

India

Page 12: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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INNOVATION DRIVING EXPANSION

Medical Devices

Innovation-driven businesses

VASCULAR • Driving uptake of MitraClip, Supera

and Absorb

DIABETES CARE • Highly differentiated FreeStyle Libre

device

VISION CARE • Winning in Cataract with new products

and market expansion

Vascular Diabetes

Care

Vision Care

Page 13: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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DURABLE GROWTH BUSINESS

Diagnostics

Core Laboratory

Molecular

Point of Care

• Leading core lab platforms

• Leading point-of-care platform

• Best-in-class molecular tests

STRATEGIC PRIORITIES

• Execute Commercial Strategy

• Expand in priority emerging markets

• Improve margins

• Launch next-generation platforms

Page 14: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott

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• Broad and Balanced

• Leadership

• Aligned with Trends

• Top-tier Growth and Income

• Steady Margin Expansion

• Strong Cash Flow

• Increasing Returns to Shareholders

Abbott GROWTH AND INCOME

Page 15: ABBOTT A Growth & Income Investment...Some statements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott