Nutrition august 2013 pptx

Abbott Nutrition Attractive Profile and Compelling Growth Opportunities

Title 2 © 2012 Abbott Laboratories Page 2 © 2013 Abbott Laboratories Page 2 © 2013 Abbott Laboratories

Forward-Looking Statement

Some statements 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.


Large and growing markets

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

Global Nutrition Market

Abbott Nutrition Large Markets and Favorable Trends

$36Bn

$52Bn

Sources: Euromonitor, Nielsen, IMS and company estimates.


#1 based on the adult and pediatric markets in which Abbott competes

Abbott Nutrition #1 Nutrition Company Worldwide

Adult Nutrition • #1 in the U.S. • #1 worldwide

Pediatric Nutrition • #1 in the U.S.

Global Nutrition • #1 or #2 in 25 countries • 50 consumer brands; 100 countries


Sales Mix in Full Year 2012

Abbott Nutrition Unique Balance across Geographies and Portfolio

45% US

Sales

55% OUS

Geographic Balance Portfolio Balance

Sales

55% Pediatric 45% Adult


Abbott Nutrition Growth Strategies

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




new products



nutrition market




Abbott Nutrition Leading with Science

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


Abbott Nutrition Science-Based Benefit Platforms

Tolerance

Lean Body Mass

Cognition

Metabolism

Immunity

Inflammation

• Early Development • Learning & Memory

• Sensitivity • Comfort • GI Health

• Resistance • Allergies

• Caloric • Density • Epigentics • Diabetes

• Muscle & Bone • Recovery

• Inflammatory Disease Processes


Pediatric Nutrition Science-based, Differentiated Portfolio

Combination Prime Nutrition

UP-AGE MATERNAL INFANT SPECIALTY




new products



nutrition market




China

India

Brazil

Russia

Vietnam

Mexico

Turkey

Pediatric Nutrition Focused on Key Priority Emerging Markets




new products



nutrition market




Adult Nutrition Favorable Demographics

Population Age 50+ years old (key markets; in millions)

China India United States

Brazil Mexico Vietnam UK Indonesia Japan

Source: United Nations, Department of Economic and Social Affairs, Population Division (2011). World Population Prospects: The 2010 Revision, CD-ROM Edition.

% of Total Population (key markets)

22% 40%

2010 2050 2050 2010


Adult Nutrition Innovation to meet local market and clinical needs

Ensure 1973

Category Creation

Innovation Global Expansion Local Solutions

Ensure Today


Adult Nutrition Broad Portfolio for Recovery and Healthy Aging

Most Sick & Compromised

Well and Healthy Aging

Disease-Specific Hospital Healthy Aging Recovery/LTC Acute Care

• Diabetes • Kidney Disease • Oncology


Adult Nutrition Lean Body Mass loss in Aging and Recovery

Average muscle-mass loss with age

Cha

nge

(Kg)

-1.0

-0.5

0

Lean Body Mass loss in Bed Rest1

~1 kg (>2lbs)

Hospitalized Older Patients

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


Adult Nutrition Potential to Improve Health Economic Outcomes

Length of Stay Episode Cost 30 Day

Readmission Rate

21% 21.6% 6.7%

• 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

Source: Philipson, T.J., et al., Impact of Oral Nutritional Supplementation on Hospital Outcomes. Am J Managed Care. 2013;19:(2): 121-128.




new products



nutrition market




13.3% of sales

>20% of sales

Nutrition Operating Margin: Targeting >700 basis points of expansion

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


Abbott Nutrition Unprecedented Capacity Expansion

Meeting Demand and Enhancing Profitability

Tipp City, Ohio

Aseptic Liquid Facility

Gujarat, India

Powder Facility

Jiaxing, China

Powder Facility


Abbott Nutrition Delivering Against 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

Margin Expansion

+240 bps in 2012

≥300 bps in 2013

>20% operating margin by 2015

Documents

Nutrition august 2013 pptx