Nutrition august 2013 pptx

Nutrition august 2013 pptx

• 1.
  Abbott Nutrition AttractiveProfile and Compelling Growth Opportunities
• 2.
  Forward-Looking Statement Somestatements in this presentation may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995, including the planned separation of the research-based pharmaceutical company from the diversified medical products company and the expected financial results of the two companies after the separation. 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, and there is no assurance as to the timing of the planned separation or whether it will be completed. 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, 2012 and are incorporated by reference. Except as required by law, Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments. Title © 2012 Abbott Laboratories 2 Page 2 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
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  Large and growingmarkets Favorable demographics and economics – Rapidly expanding aging population globally – High birth rates in emerging markets – Increasing socio-economic status in emerging markets – Growing awareness of the role of nutrition for health and wellness Title © 2012 Abbott Laboratories 3 Page 3 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Global Nutrition Market Abbott Nutrition Large Markets and Favorable Trends $36Bn $52Bn Sources: Euromonitor, Nielsen, IMS and company estimates.
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  Abbott Nutrition #1Nutrition Company Worldwide Pediatric Nutrition • #1 in the U.S. Adult Nutrition • #1 in the U.S. • #1 worldwide Global Nutrition • #1 or #2 in 25 countries • 50 consumer brands; 100 countries #1 based on the adult and pediatric markets in which Abbott competes Title © 2012 Abbott Laboratories 4 Page 4 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
• 5.
  Abbott Nutrition UniqueBalance across Geographies and Portfolio Geographic Balance Portfolio Balance 45% US Sales Mix in Full Year 2012 Sales 55% OUS Title © 2012 Abbott Laboratories 5 Page 5 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Sales 55% Pediatric 45% Adult
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  Abbott Nutrition GrowthStrategies Strengthen Portfolio with steady rhythm of science-based new products Expand Footprint in key high-growth emerging markets Grow, shape, and further penetrate the adult nutrition market Expand Operating Margins to fund investments in growth Title © 2012 Abbott Laboratories 6 Page 6 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
• 7.
  Abbott Nutrition GrowthStrategies Strengthen Portfolio with steady rhythm of science-based new products Expand Footprint in key high-growth emerging markets Grow, shape, and further penetrate the adult nutrition market Expand Operating Margins to fund investments in growth Title © 2012 Abbott Laboratories 7 Page 7 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
• 8.
  Abbott Nutrition Leadingwith Science Title © 2012 Abbott Laboratories 8 Page 8 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Singapore • Strong investment in R&D; part of our heritage • Increasing R&D Productivity – 5x increase in annual new product launches – 10x increase in clinical trials & patent applications • Expanding our footprint and capabilities – New facilities in or near priority emerging markets – Partnerships to leverage external expertise
• 9.
  Abbott Nutrition Science-BasedBenefit Platforms Tolerance Lean Body Mass Cognition Metabolism Title © 2012 Abbott Laboratories 9 Page 9 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Immunity Inflammation • Early Development • Learning & Memory • Sensitivity • Comfort • GI Health • Resistance • Allergies • Caloric • Density • Epigentics • Diabetes • Muscle & Bone • Recovery • Inflammatory Disease Processes
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  Pediatric Nutrition Science-based,Differentiated Portfolio MATERNAL INFANT UP-AGE SPECIALTY Combination Prime Nutrition Title © 2012 Abbott Laboratories 10 Page 10 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
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  Abbott Nutrition GrowthStrategies Strengthen Portfolio with steady rhythm of science-based new products Expand Footprint in key high-growth emerging markets Grow, shape, and further penetrate the adult nutrition market Expand Operating Margins to fund investments in growth Title © 2012 Abbott Laboratories 11 Page 11 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
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  Pediatric Nutrition Focusedon Key Priority Emerging Markets China India Brazil Russia Vietnam Mexico Turkey Title © 2012 Abbott Laboratories 12 Page 12 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
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  Abbott Nutrition GrowthStrategies Strengthen Portfolio with steady rhythm of science-based new products Expand Footprint in key high-growth emerging markets Grow, shape, and further penetrate the adult nutrition market Expand Operating Margins to fund investments in growth Title © 2012 Abbott Laboratories 13 Page 13 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
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  Adult Nutrition FavorableDemographics Population Age 50+ years old (key markets; in millions) China India United States 2010 2050 2010 2050 Brazil Mexico Vietnam UK Indonesia Japan % of Total Population Source: United Nations, Department of Economic and Social Affairs, Population Division (2011). World Population Prospects: The 2010 Revision, CD-ROM Edition. Title © 2012 Abbott Laboratories 14 Page 14 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories (key markets) 22% 40%
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  Adult Nutrition Innovationto meet local market and clinical needs Category Creation Ensure 1973 Innovation Global Expansion Local Solutions Title © 2012 Abbott Laboratories 15 Page 15 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Ensure Today
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  Adult Nutrition BroadPortfolio for Recovery and Healthy Aging Most Sick & Compromised Title © 2012 Abbott Laboratories 16 Page 16 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Well and Healthy Aging Acute Care Hospital Recovery/LTC Disease-Specific Healthy Aging • Diabetes • Kidney Disease • Oncology
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  Adult Nutrition LeanBody Mass loss in Aging and Recovery Average muscle-mass loss with age Lean Body Mass loss in Bed Rest1 Change (Kg) 0 -0.5 -1.0 Title © 2012 Abbott Laboratories 17 Page 17 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Hospitalized Older Patients ~1 kg (>2lbs) More than 2 lbs in just 3 days 1Paddon-Jones, Abbott Nutrition Research Conference: Selected Summaries. The Role of Nutrition in Accretion, Retention and Recovery of Lean Body Mass, from 2009:9-14
• 18.
  Adult Nutrition Potentialto Improve Health Economic Outcomes • HEOR Study “Impact of Oral Nutritional Supplementation on Hospital Outcomes” • Published in American Journal of Managed Care • 44 million hospital episodes across the US over 11 years Length of Stay Episode Cost Title © 2012 Abbott Laboratories 18 Page 18 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories 30 Day Readmission Rate 21% 21.6% 6.7% Source: Philipson, T.J., et al., Impact of Oral Nutritional Supplementation on Hospital Outcomes. Am J Managed Care. 2013;19:(2): 121-128.
• 19.
  Abbott Nutrition GrowthStrategies Strengthen Portfolio with steady rhythm of science-based new products Expand Footprint in key high-growth emerging markets Grow, shape, and further penetrate the adult nutrition market Expand Operating Margins to fund investments in growth Title © 2012 Abbott Laboratories 19 Page 19 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories
• 20.
  Nutrition Operating Margin: Targeting >700 basis points of expansion 13.3% of sales >20% of sales Title © 2012 Abbott Laboratories 20 Page 20 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Margin Improvement Initiatives Product Materials & Packaging Manufacturing Processes & Plant Locations Supply Chain & Distribution Product & Market Rationalization Abbott Nutrition Significantly Expand Operating Margin 15.7% of sales
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  Abbott Nutrition UnprecedentedCapacity Expansion Meeting Demand and Enhancing Profitability Tipp City, Ohio Aseptic Liquid Facility Gujarat, India Powder Facility Title © 2012 Abbott Laboratories 21 Page 21 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Jiaxing, China Powder Facility
• 22.
  Abbott Nutrition DeliveringAgainst our Key Growth Drivers Leadership #1 US Pediatric #1 Adult #1 or 2 in 25 countries Balanced Portfolio 55% Pediatric 45% Adult 55% OUS 45% US Innovation 80 product launches in 2012 Scientific heritage 6 key benefit platforms Emerging Markets 45% of Sales Building portfolio, presence, capabilities Title © 2012 Abbott Laboratories 22 Page 22 © 2013 Abbott L©a 2b0o1ra3t oArbiebsott Laboratories Margin Expansion +240 bps in 2012 ≥300 bps in 2013 >20% operating margin by 2015