ABBOTT LABORATORIESW W W . A B B O T T . C O M

Abbott LaboratoriesIndiana University

Introduction

Abbott Overview

Financial Professional Development Program (FPDP)

Question and Answer

Abbott Laboratories At a Glance

Headquartered in North Chicago, Illinois – a suburban community approximately 30 miles from Chicago.

A diversified healthcare company that discovers, develops, and manufactures and markets innovative products and services that span the continuum of care – from prevention and diagnosis to treatment and cure.

Abbott LaboratoriesAt a Glance

72,000 Employees in more than 130 Countries

Fortune 500 Ranking 100 in Revenues 29 for Minorities One of the “Most Admired

Companies” every year since 1984. 48th among the Top 500 American

Companies – Forbes Magazine

Five Star Ratings in all categories of Princeton Review’s America’s Top Internships

Number 3 on Best Company Benefits List – Money Magazine

Top 10 Companies for Working Mothers – Working Mothers Magazine

Abbott LaboratoriesAt a Glance

$19.7 Billion in Sales (2002) 61% Domestic 39% International $26.7 Billion total assets 7.7 % E.P.S. compound

growth – last 10 years

Abbott Laboratories

In August 2003, Abbott announced that it would spin off as a separate company its hospital products business. The new company will have sales of $2.4 billion. Spin off will allow the company to more aggressively focus on the development and sale of products for the hospital market. Completion of the spin off was April 2004. The new company is Hospira.

Health Care IndustryLong-Term Business Trends

OPPORTUNITIES Aging Population Higher Discretionary Incomes Scientific Discoveries “Quality of Life” Demand

RISKS Price Controls Regulatory Requirements Drug Development Costs

Abbott LaboratoriesSales Growth

$0$2$4$6$8

$10$12$14$16$18$20

93 94 95 96 97 98 99 '00 '01 '02 '03

Net Sales in $Billion

Compound Growth Rate 8.9%

$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00

93 94 95 96 97 98 99 '00 '01 '02 '03

Abbott LaboratoriesEarnings Per Share – Basic

Compound Growth Rate 7.7%

($/Share)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

93 94 95 96 97 98 99 '00 '01 '02 '03

Abbott LaboratoriesR&D Spending

Compound Growth Rate 7.0%

Spending in Millions

Abbott LaboratoriesStock Price

0

10

20

30

40

50

60

93 94 95 96 97 98 99 '00 '01 '02 '03$/Share

Compounded Growth 12.1%

Abbott Strategy

Internal Research and Development Market Expansion External Collaborations Acquisitions

Abbott Laboratories

Pharmaceutical Products Division

Abbott International Global

Pharmaceutical Research & Development

Global Pharmaceutical Operations

Abbott Diagnostics i-STAT Point of Care Abbott Diabetes Care Abbott Molecular

Diagnostics Ross Products Spinal Concepts Abbott Vascular

Devices Animal Health

TAP

Pharma Product Group Medical Products Group

Pharmaceutical Products

AIDS/Anti-Viral Norvir – Protease inhibitor - HIV Kaletra – Protease inhibitor – HIV

Anesthetics Ultane – inhalation anesthetic

Anti-Infective Biaxin – Macrolide – respiratory infection Omnicef – oral cephalosporin – bronchitis, ear

infection

Cardiovascular Tricor – cholesterol and triglyceride reducing

agent

Pharmaceutical Products

Gastrointestinal Prevacid – TAP – gastroesophegeal reflux

(GERD)

Immunology Humira – rheumatoid arthritis Gengraf – organ transplant immunosuppressive

therapy

Metabolic Disease Meridia – obesity management Synthroid – treatment of hypothyroidism

Neuroscience and Pain Management Depakote – anitepileptic, bipolar disorder,

migraines

Pharmaceutical Products

Pediatric and Specialty Pharmaceuticals Survanta – premature newborn respiratory

distress syndrome Synagis – Monoclonal antibody for treatment

of respiratory sy infection (RSV)

Renal Disease Zemplar – secondary hyperarathyroidism

Urology / Reproductive Health Flomax – Alpha blocker – BPH Hytrin – alpha blocker – BPH Lupron – synthetic hormone – prostate cancer,

endometriosis

Medical Products

Diabetes Care Blood glucose monitoring through TheraSense and

MediSense Products

Hematology Cell-Dyn line of automated hematology analysis

Immunoassay and Clinical Chemistry PRISM – high volume analyzers screening donated

blood for multiple viral infections Aeroset / C8000 – High and medium volume

clinical chemistry analyzers Architect – modular immunoassay analyzers AxSym – automated immunoassay analyzer with

continuous access and STAT capabilities

Medical Products

Molecular Diagnostics Path Vysion HER-2 – DNA test detecting HER-2 /

neu gene in breast cancer patients UroVysion – DNA test for monitoring recurrence of

bladder cancer Viro Seq HIV-1 – Genotyping System for

identification of drug resistant HIV-1 mutations

Nutritional Products Adult Nutritionals

Ensure – Balance & Nutrition Glucerna – Diabetes Jevity – Tube Feeding Prosure – Weight gain in cancer patients Zone Perfect – Portable nutritional products

Medical Products

Pediatrics Nutritionals Similac – Infant formula Gain and Grow – follow-on formulas for age 6

months to 7 years Isomil – Soy based infant formula PediaSure – Balanced nutritional formula for ages

1 to 10 years. Pedialyte – Oral electrolyte maintenance solution

for quick fluid replacement

Abbott Vascular Devices Portfolio of coronary and endovascular

technologies, vessel closure devices and pharmaceuticals used in the treatment of cardiovascular conditions.

Medical Products

Spinal Concepts Unique product portfolio with

technologically advanced devices for cervical, thoracic and lumbar spine.

Animal Health Perioperative health care for the veterinary

market. Products include anesthetic and wound care products; a complete line for I.V. fluid therapy; and other veterinary critical care products

New Product PipelineLaunches in 2002, 2003 & 2004

Closer S – Vessel closure PRISM (US) – Automated blood bank

screening Humira – Rheumatoid arthritis Depakote ER – Once a day for Bipolar Advance line of infant nutrition w/DHA &

ARA providing formula more consistent with mother’s milk

Ora Quick – Rapid HIV-1 Antibody test Dexamet – Stent system Life Care PCE 3 Infusion system- Analgesic

device system

New Product PipelineLaunches Anticipated

Humira – new indications including Crohn’s disease Psoriasis, Psoriatic arthritis

ABT-773 – various cancer indications ABT-578 – drug eluded stent Vicodin-CR, Dilauded-CR – pain

management ABT-627 (Atrusentan) – Prostate cancer Xinlay - Oncology

Strategic Initiatives – 2003/2004

Acquisitions Woodside – Nausea/vomiting Jomed N.V - Devices for treatment of heart and

surrounding arteries Integrated Vascular Systems – Vessel closure devices Spinal Concepts – Devices for spinal surgery Zone Perfect Nutrition Co. i-STAT – Point of care diagnostics TheraSense, Inc. – Blood glucose monitoring

Alliances Medtronics – stent delivery systems Artus GmGH – SARS diagnostics test Luminex – invitro diagnostics

Financial Professional Development Program (FPDP)

MISSION - To develop Financial skills Knowledge of Abbott divisions and

operating environments Superior contributors Future managers

prepared for a variety of positions not trained for a specific discipline

Abbott LaboratoriesFinancial Training Program

WHAT IS IT? Two year program 5 or 6 full-time assignments/4 to 6

months long Real contributor roles Important to operation of business

Hands-on experience At either corporate, division, or operating levels In either FP&A, cost, or reporting

Structured Mentorship

Mentoring

Program Manager Division V.P. or Controller Level

Assignment Manager

Strengths of FPDP Program

Cross Functional Exposure

(Non-Finance)

Off-Site Assignments Domestic

International

Cross Functional Exposure(Non- Finance)

Engineering, Marketing & Sales Improves Communication, Interpersonal, Leadership and Teamwork Skills

Increases Business Knowledge andOpportunity to Impact Operating Decisions

Non-Technical Development

Teamwork Creativity Process Analysis Communication/Interpersonal Leadership Project Management Conceptual Ability

What Does it Train You For

Controllership Financial Reporting Strategic Planning Line Financial Management Business Advisor and Partner Business Systems Development

Career Development Courses

Time Management Interpersonal Communications Business Writing Problem Solving Good Business Practices Cost Accounting Presentation Skills Meeting Facilitation CPA/CMA Review Courses

FPDP Assignment Types

29%

12%

59%

Cost Acct.

General Accounting

FP&A

Off- Site AssignmentsDomestic

Los Angeles

Boston

Columbus

Dallas

Redwood City

International Finance

Cultural Experience

Off- Site Assignments International

What experiences do you gain?

Recent Non U.S. Assignments Germany

Financial Planning & Analysis Cost Accounting

Ireland Cost Accounting

United Kingdom Financial Planning & Analysis

Switzerland Financial Planning & Analysis

Puerto Rico General Accounting Reporting

Pakistan Financial Reporting & Analysis

Abbott “Fringe” Benefits

FPDP Events: Game Keepers Golf Outings Cub Games

Abbott Sports Leagues

On-site Recreation Facility

Abbott & Work Life Solutions

Our future success is directly related to the quality/dedication of out employees Child care center Clara Abbott Foundation – Family

crisis, natural disasters, medical crisis, educational grants

Flexible work arrangement Recreational and sports activities Wellness Programs – Stress

management, nutrition, on site health screening

Graduation Opportunities

Location: Domestic / International

Divisions: Pharma, Diagnostics, Hospital Products, Corporate…

Choice of Discipline: General Accounting/Reporting Manufacturing Accounting Financial Planning & Analysis Treasury

Developing Future Financial Managers

Capital Investment Analysis

Treasury Ops.

Risk ManagementTax Accounting

General Accounting

Consolidations & Reporting

Cost/ Manufacturing

Accounting

Financial Budgeting, Planning &

Analysis

International Accounting

Information Systems

Acquisitions and Mergers

Where are they now?

Kevin DolanController

TAP Pharmaceuticals 1981

Stafford O'KellyVice President

Latin America & Canada 1985

Lori CarlsonTreasurerHospira

1983 John PoulosDiv. Vice Pres.,

Licensing &Acquisitions

AI 1980

Cathy HamiltonAssistant Controller

Hospira 1986

FPDPGraduates

Jenny DartMgr Portfolio Analysis

PPD 1993

Bill ChaseController, AI 1991

Selection Criteria

Technical Skills

Leadership Skills

Interpersonal Skills

Organizational and Planning Skills

Interest in Progressive Management Career in a Highly Successful, International Healthcare Company

Reasons for Choosing Abbott Laboratories

Strong Financial Performance and Opportunity for Career Growth

Variety of Assignments & Future Opportunities

Exposure to Upper Management Diverse and Growing Industry with

Global Presence Rewarding - Abbott’s Products

Enhance or Save Lives

Abbott’s Sales in 2003 were?

A. 40.2 Billion B. 19.7 Billion C. 20.6 Million D. 300.7 Million

Approximately Where is Abbott’s Stock Trading?

A. $25 B. $45 C. $70 D. $95

Where is Abbott located?

A. Long Grove, IL B. North Chicago, IL C. Kenosha, WI D. Oak Brook, IL

What Team Will Win the Big 10 Football Title in 2004?

A. Indiana University B. Indiana University C. Indiana University D. Indiana University

hey…. you gotta keep the faith……