abbott a growth & income investment...some statements in this presentation may be...
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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
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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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
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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ALIGNED WITH TRENDS
Growth in emerging markets
Investing in health care
Emerging middle class
Aging population globally
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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
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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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
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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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
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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
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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
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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
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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