Mead Johnson Nutrition 2012 Annual Report

7/29/2019 Mead Johnson Nutrition 2012 Annual Report

1/16

T B StsMead JohnSon nuTriTion 2012 annual reporT


2/16

our visionTo Be The worldS leading nuTriTion coMpany or BaBieS and children

our mission

To nouriSh The worldS children or The BeST STarT in lie

our values

paSSionaTe purSuiT o conTinuouS iMproveMenT in all we do

uncoMproMiSing coMMiTMenT To ScienTiic rigor and producT qualiTy

unwavering inTegriTy in every relaTionShip we have and acTion we Take

an environMenT o openneSS, reSpecT and high perorMance


3/16

CHALLENGES AND SUCCESSES

w t ts

sts, t t m

sss nt am e,

s s t s t st mts.

a mbt ts t t

t smt ts

mtt t t s

c. i t ut Stts,

m ts t

m t t 2011 t

mt s 2012, st

mt t st ts

b u.S. mt s. T u.S.

tm s t m t

mst m t stt bt t smt.

h, m t stt ts

ts st ms

b t b mts as

lt am, 12 t stt-

ss t ts smt

bsss. ass ts mtt

-t mts, s

mmts mt s.

o ts s tt

ts mmz t mt s

mmt mt sts ss m. w

st tt

ss t t t

st s s , s

tts st

b ss t

2012. w s m t ss

mstt

sts s t ss,

b t st m t ss t

t bsss t stt bs

t m. T $50 m

s ts mt

2012 s mmtmt

t sstb bsss t.

it s mtt s t 2012 t

st mmtm t st t st

st m 2013. Mt

ts s s t tt

s mtt s

ts t u.S. t mt

e t t-mm

s dha c m

mtt st s t

ss. Bt mts s

ss t s ss

t t t .

THE BIG PICTURE

T ttt -tm

ms t

bsss m , st t

st-tm s m

t st . o t t

s st tm st. otts

s smt m ,

t ts t t b

s mts; t

b t t m ss s

m t tt t.

at, M Js s t

st t bt m ts ts

m t ts s mss, s

stt, bst t t

, tst tt

t s, t

t ss stts.

ntb, e m bs

s t s

b s t tt

st mst 2012,

ss t t-b m

b ss. it ms mst tst

b m ts t

sss m, t mb

b tt ts mm

t ut Stts.

TAKING BIG STEPS

o s, ss 2012

s t jst bt t sts.

Tt t , s

t stt ss m

stmts t st

t t t st

-tm t. w t t

b sts ss t t

bsss t t 2013 b.

i M, mt t st

mjt s t Bb

bsss, t mt-

t tt b att t. Ts tst t

stt s lt

am t t t

b ss t 2012.

i J, b S

t st t jt m

st, st stmt

$300 m. T jt

s stt--t-t, s-

mt t st as

w s

st bsss tm,

stt b

s tm

MeSSage roM Thechie execuTive oicer

To our ShareholderS, colleagueS and BuSineSS parTnerS:

T s s ms t b b bt sss, s

t bsss st sts. Ts st s t t

s t stt- t ss t t s s s, t

-gaap bss. at ts sts st t sss 2011, t sstt t t

b st m t t m m sm s ms.


4/16/ Mead JohnSon nuTriTion

t m a

Mt Sts a 30t

c.

i t, t tst ss s

. o t st , s

c ot o, ks s

t ms gb ot

cmmtt s mt

t t B, s s t

t sts,

sts. g s s ts

15 s t t

m, s

bssss, i b

s btt t ks t

M Js sss t t t.

DOING THE RIGHT THING

o M Jss s s

tt ts

t t,

s s s t b tt

t . i 2012, t s

st sttmt, mmt

S c ct

et T itt

t s tt s

t tts t s

bsss ts mt

t s .

w s stt

t mmz t mt

mt bsss ,

, t st -tm

sstbt s tt t s

g vs 2020. w s t

t ss m t t

s s msss,

s t s

t bss, s s t mt st

ts s t s.

w s t t

a cs Bst Stt tt,

ss s mb s

tb ms tt s

ts

b msts. i t

t s t jts, s

tt.

b bst t t

mt t s mt t t tt

s s,

ms sttts.

T ts sst tt

t t -t t m

s sm ft t bst

bt t b t m t

tt. o mss s t s t

s t bst stt ,

mmtt t st

mts t t

m. y t, ts smt ms

s tss s.

m m st ts

tt ss -tt s

mtb ts t t

mts, ts t

sss t

t tt tms

t t bst m

Ts s s ts M

Js ntt ms

s b s

mtt m s t

m t t m. i t b

tt t s ss

t t M Js mss

t tt i

m t m

tm tt m s st

t s , ts

ms, s t

ss.

A BRIGHT FUTURE

i m t tsmt t

m s s i t

s st t m

2004. M Js s m

s mt m t

-m, t, b

m t stt b

t m, s stt,

bst t

t,

M Js pt ntt

isttt t t, s s

as . as i t

t t b m,

T ts t

mt t b-t

t m ts as t st , bt s

t st sts t t

s t . estbs

t t mtt

ts bts

mt mtt t

t mt.

d t s 2012,

jst e bsss

m t t m

m ts tt

t t s. w mb m s stt t btt

st sstb, tb t

tt t st

ts st ts

wst e, s t

s t t m

bsss t mts

est e.

, t s m mtt

mt s t

t t t tt tm

M Js ms. Tt

2012, t

mt ,

t mt s t

s, st

tt m ts t m. Ts

t stt zt

bts t s tt t

t t t t st sts

ss t s m.

KEY TRANSITION

a ts sts, s s t

stmts mts,

m tms t

tjt sss bsss

. w s

st bsss tm, stt

b s tm s

t. it s tt tt tt

m tmt

m mmt t t

tmt ks Jbs s

pst c et o

i t b tt ts ss

t t

M Js mss.


5/162012 annual repo

M Js ntt, 2012

m t sbstt

t mt, st t

mt s tt t

mtt b st. Ss

s , t ts

, t m t

ts b tt sstt

t t - stt .

T B m bs t ms

stt tts stmts m

t st M Js

st ts t st t

t. m t m ts

bssss t ut Stts ct t s ts s

St am t t stbsmt

t t bts

S, M Js s m

s t t. Tt s

t tt s

st rs dmt

ss bts.

T S stmt

t s t b M

Js pt ntt isttt

(MJpni) t. Ts st nmb,t MJpni ts st tt

t s smmt, tt T

t cs ht c, t ts

t t gz, c.

T z m st

ts m t

MJn B Mmb

t - cs

hst p, d. St

ats t t sss s

t t t

c. T s t tt

t pni t cs

ts t b tt s

bst ts. T mt

st s t tt

t s bt t M Js

b t tt ts.

, B msmt

2012 s t sss t

t m tst m

s i s tst

t t tss t tt

ss. Bt st, s bt

St gsb, t s ceo t m a Mt Sts.

T b s -m ,

mst zt btt

st t t. n

mtt t st t M Js

ts s t s,

t s b st t

mt Sts s.

S bm MJn pst 2004,

t m s st sbs

Bst-Ms Sbb, s s

ts mss, s stt; s

ts b t

t ts s;

ts b s; ts

zt bt t

. d ts sm , s

M Js t

sss t b

st t nySe. i t sbst

s, t MJn st s

m t t t m s

m stbs ts t t

t sts St & ps 500

i mst b b ms

(#210 2012). i t s

ts m, st

s s t mt

St t t s mmb t

B dts t s tmt.

Bt s t mst mss

t Sts s t b

mmt tm s ssmb

,

t msmts t b.

o mmb tt tm s ceo-t ks Jbs, s

s t St 15 s t

m i b mss tt

sst, s t

s tst ss.

ks s b tst t

t t B s s t J

2012, t dts

t tmst m

t st s et cmmtt

mmt tm t M

Js sss t t t.ct, s B st

t t s st

s ss t b tt sss

t t t M

Jss sts sts.

Jms M. cs

Chairman o the Board

MeSSage roM ThechairMan o The Board

tt, st zt t

bts. o ms

s b mtt t

b bsss;

t s, t s b

z b t tt t b

ss.

S ts sts m

s t s

t m, st m

tmt t b

mt t t s

t B dts m

tmt m mmt. i

m t mt m

t t M Js ntt.

St w. gsb

President and Chie Executive Ofcer


6/16/ Mead JohnSon nuTriTion

t s tst

t bsss

sm st s

t t btt sts

sms bt ts mt

ts b t ts

sms s t ss.

as t

tt, M Js s

bt

tt t t

t tt

st t

sst t s t

t mt

t .

i 2011, t,

t-tt m m

t; ts st , t st

bt ts t t

t st bs t

stm j Pediatrics m

tt t s tt b mt tm st

t t ts

t. i t, M Js

tt 100 t t

t t tt t t b t

tt t ts

s t t ss

b s sms.

2xM Js b tstt sts

s m 50 2011

t 100 2012

innovaTion

unlockingThe

uTure



e t , bt t

70t s ntm,

mtt t t ts

t t s

b t mmt s

m ts t s.

T s ts b tt s m t (cMp), t

t s t b sstt

t st t tst t s

m-bs ms ts.

a bs st s tt

t mt ntm t

bts ef lgg s

st m ts t b

t t cMp t bt s

12 mts s m t ts

ntm tt bts.

Ts sts st tt

st t ss s s

m t s, st,

t t t

t t t t s .

M Js t t t

b t

- tt t -tm

3x59 t ts

s ntm t lggbt t t s m

t t jst s mts,

ss jst 21 t

sm t mt tt

ts b bt

t- s.

mt t tms.

i t t st ts st b

smmt T t cs

ht gz, c

t M Js pt ntt

isttt (MJpni) tt t

2012 w css pt

gstt, ht

ntt T, t

smsm s

st t ss ss

m st ssss.

T MJpni s smsm

em cts pt ntt,

bt tt ss m

ts t sss t m

s s t btt b t t t mts

t tt.

, 2012 m t mt

mt- t s t

gb et hm M

gehM. M Js j t t

st ct cs hst

M ct t bs ts m

st tt s ms

st t mst

t m m t ts

t t mt. Ts b s tt ststs

t sss

s t t t -

tt -tm -b

ts .


8/16

08 09 10 11 12

pm t M Js

s m m t mbs

m b st t

tts t mt bt t s t

tt tt t

s sts t ts

t s s bt ts,

ts.

perorMance

raiSingThe Bar

NET SALES(in BillionS)

08 09 10 11 12

$3.9

EARNINGS PER SHARE*n-gaap sts s. ps

t t tb t b s

t t gaap t.

$3.08

/ Mead JohnSon nuTriTion


9/16

w bt ts

t mt, m t mb

e b. i mb

as lt am ts,

t t t t

ms - ms, s

b mts dha

t sst tt s t st

b mt bs

ts t mt , , t-mm t s.

T sts t s t

t t t mt tt ts dha

s em t t

mt bbs s tt ts

ts s m tm sst

ttt tst t , s

mts m t st em

mts tt dha.

i t u.S., -t-

s e, t m tst

, s-t-s

t st btts t t

tst s. pts s s

st t t

amzBb mb t.

T as lt am smt

bsss t t

m t, st t

t st mts t

70 t b ss

2012. Ts s ms

tt ,

b st .

w tt lt

am t mjt-

jt t t Sc ats

mb tt s t

t b t t pmm

Bb ps tt s tsst

sm ss ss ts st-

mt. i as, $300-m

t t t

stmt S ms t

st- t jt m

st s t t

stmts t as ss ss

t m t

t tt t t

mt $12 b t t

t t s. M Js,

ts mmtmt s

t stmts t st

s t $1 b m.

at m mt

s t sts

t nt am e smt bsss, bt s t

2012 m st tjts. o

t stt stbt

mt e s btt

st t sstb

tbt t tm,

t s mt t

ts t u.S. tbt t

ss mt s ss

m t t t t t t.

i t, M Js ts s

t u.S. t m

ms t bbs t b t

mts ssst m

m, ts ,

s wic.

w s ts t st

s t sms t

, s t ts

tms tt ts, bt

s s m ts

t ms s tm

tt st t s, s

t tmt ss t

t sts.

$3B+gb ss M Jss

e b mj

mst 2012

2012 annual repo


10/16

reSponSiBiliTy

keepingour

proMiSeS

as st

st t

s t,

M Js sts mbs ts mmtmts

ts bs, mmts

ms s s t

ms ms tt t

tst ts. o

t s ssbt

m s bt t s

t mt,

tt t mt

t mmts

m st sts

t s.

/ Mead JohnSon nuTriTion


11/16

MARKETPLACE

o s s

tt ts,

s st, t

t t m s. i

2012, stt S

dst p mmt S c ct. i

mbt, t ss st

sm, mt m-

bssss mmtmt

t m; t s; b

m ts; t, st

mt sts. a

sts bt m ts tts

tt stt bt s

mmts.

ENVIRONMENT

i st s t,

-tm mmtmts t

s s msss, s,t s, st t.

g vs 2020 s

m s mt

ss stt

sstbt ts ss

M Js ts ts

, s s t t

sss . i 2012, m

tb ss m t

t s b 2020

ssb s. m,

ts c

z st t s.

i t t ms ss

st mbts t tts,

s tz t sts

s s t gb rt itt

tt st t-

t tts, t cb

dss pjt, t Sstb

p ct t epa

wst ws pts pt

pt ms.

COMMUNITIES

M Js sts ts

t mmts t ts,

tms stmt, mmt,

mt t. o

st t m

a cs Bst Stt ss s

mb ts t tt

m t s ts

b

msts mb

-st M Js ms.

Ts T l

c, t t

tt ts t

t m s

t t-st

s. i T, h h

m st t s ts

tt m b s f.

o h ms t

ps h k

s t m tt t

tts, s s tt t

ts. i t u.S., t

-st t

t t am r css t

tmt ssts b t m

t $200,000 t t

tt ts t -t

mmts t u.S. t Sstm

S b t t st sb.

50 BEST STARTS CELEBRATES 50 YEARS OF LEADERSHIP IN THE PHILIPPINES

i bt t 50t s M Js ts t ps,

s t z 50 Bst Stts. am t m ts t, s

t m t s tms tt, s t t t hm J

o ct, t t ms a cs Bst Stt m.

T mt sts, m t tms t ts t

t s mt, bt ts m t mts,

stbs s t s bt s t . i t, t 80

ts 800 s mts b s tt t s

b b t s t ss tbs t m st t t t s. Sm

s t t t st.

2012 annual repor

0i 2012 M Jss gz,

c mt t

mt st t s

IN 2012 OUR ENERGY

REDUCTION INITIATIVES

SAVED THE EqUIVALENT OF:

Tanker TruckS o gaSoline

88

15,553BarrelS o oil

579,748gallonS o gaSoline

1,001hoMeS worTh o elecTriciTy


12/160 / Mead JohnSon nuTriTion

Tts t t t

ts b ms,

m ss stts

s t ms t

st ts

st b sts t

sss.

at s s s

tt. m t ts s

t aidS s vtm t

t - ts t t

t ts cmb p

t st ss ss m

sts c t u.S., st

t b t bst ssb tt

stt ts ts

tt ts. i tms

b mm,

sbst b tt s ontt.

t ss sm t

tt s s ts

s t. o

es, ts st t

bst t tt ss

t mts s b

M, tst t Ss

s .

a ts sst, bt

m t t st

ms ss t

t mtb sss, s s

pt (pku) M S

u dss (MSud). i m ss,

t t b t bt

t, ts ts

t mt m, st mt t

stt t tm

t ms.

i t u.S., b s

s mtb ts s mtt

t, st h h

S ks m s t

mt t mt ms, s

s st t ts t mt

s ssst (wic),

bt s

s t bt t s

st / t ms.

T Bm h , s

b t c t pt

at, s jt tt

b M Js c

e , t s t t t

t ssst t ms

ms mt b pku; 2012,t tt tts t t

q. at, M Js

s s t cs s

m t ts

t s ss ts ts

b s ts

ss t t st t

smsms, t ssss b

ss ts.

w t t ssb

tss t m ssts

mt t tts mts ss t t

t t, t

t ts m

mt t st

t mt ms.

h ts, ms

st. its b t st

M Js ntt m

t t.

9,000nmb ts b

t pku b



e. ds. ct

t . M Js

sts tt ts

t m sts tt s s

. Tts

s mmt .

w t ss

ts t ss

t t tt sts;

t t b ts

tt t s t

s, m ts

tt b.

Bs t M Js,

tt ts t.

neTworkS

Makingnew

connecTionS

o amzBb mb bs t

tms sss t etBb

2011. ds ts bbs m

bt t s mts, t s tts

t t bbs mtt mt, t,

mmt s msts. it s ts

t t mt ss t ts

sts, t s t msmts t

s m b b m.

amzBb ts tm s ts

j t tts , msts

mms t s t m.

i st s sst

s s s, st s t

stms s b t

s t t sts s t

t sss. Tts

M Js ts mb

rs cts m as t ntam. m, ts

t ut Stts sts bt

tt t ts ts,

t t ss s s s

1-800-Bb123.

T st t ts t m ts, M Js

c t t s t b mt

t em amz Msts . T ss s c

m st mt s s sts t t mm s

t. m s mt/t j, t em amz

Msts s s t sm ss sts tt tt

mts ts t.


14/16

Top phoTo, picTured l-r

ELLIOTT SIGAL, M.D., PH.D. 4

dt, et v pst

c St o pst

rs dmt,

Bst-Ms Sbb cm

CELESTE A. CLARK, PH.D. 3, 4

Tst, w.k. k t

m S v pst

gb pb p et rts,

k cm

PETER G. RATCLIFFE 1, 3

m c et o,

p&o pss itt ds,

c ct plc

Middle phoTo, picTured l-r

JAMES M. CORNELIUS

cm t B

cm m c et o,

Bst-Ms Sbb cm

dt, g im lmt

ANNA C. CATALANO 2, 3

m pst, am ot o

cm c g; m

v pst Mt, Bp

dt, ws g hs

dt, cmt ct

dt, kt pm pms

STEPHEN W. GOLSBY

pst c et o,

M Js ntt cm

dt, Bm i.

P. KASPER JAKOBSEN

et v pst

c ot o,

M Js ntt c.

BoTToM phoTo, picTured l-r

STEVEN M. ALTSCHULER, M.D. 2, 4

c et o,

T cs hst p

dt, wt wts itt, i.

KIMBERLY A. CASIANO 1, 3

m pst c ot o

cs cmmts i.

dt, Mt cm

dt, Mt am

ROBERT S. SINGER 1, 2

m c et o,

B h, S..a.

dt, T & c.

dt, ct i.

HOWARD B. BERNICK 1, 2

pst, B as lmt,

m pst c et o

abt c cm

1. at cmmtt

2. cmst Mmtdmt cmmtt

3. nmt ct g cmmtt

4. ntt S T cmmtt

BOARD OF DIRECTORS

Back row, picTured l-r

P. KASPER JAKOBSEN

et v pst

c ot o

DIRK H. HONDMANN, PH.D.

S v pst,

gb rs dmt

PETER G. LEEMPUTTE

et v pst

c o

WILLIAM C. PPOOL

S v pst,

g cs St

JAMES JEFFREY JOBE

S v pst, gb S c

ronT row, picTured l-r

CHARLES M. URBAIN

S v pst,

St rts

c dmt o

STEPHEN W. GOLSBY

pst c et o

G. IVONNE MONTEAGUDO

S v pst, nt am

gb Mt

ExECUTIVE COMMITTEE

2 / Mead JohnSon nuTriTion


15/16

1 ajstmt 2008 sts mbt t 2009 sts t m s m Bz e. i Bz, bt t t s st-

sbs s m b 2009 t t Stmb 2009. d tt tm, BMS stbt ss ts t mt tts. i e

tst t t-t stbt m t BMS tm s s stbt. Ts t ss b t mt t stbts m st

t stbt-t ss. i t, 2008 sts jst t ft tst s tt b t stt s dmb 31, 2008

b tt tt .2 ajstmts iT t st sts, s t sts, , sttmt t sts, ipo-t sts sst s.3 ajstmts t m mb ss tst t t st-ipo .

NON-GAAP RECONCILIATION OF FINANCIAL MEASURES

SaleS earningS per Share

In millions except per share data 2008) 2009) 2010) 2011) 2012) 2008) 2009) 2010) 2011) 2012)

gaap (nt Ss /es p S) $2,882.4) $2,826.5) $3,141.6) $3,677.0) $3,901.3) $2.32) $1.99) $2.20) $2.47) $2.95

ot m s tst1 (35.9) ) ) ) ) (0.33) ) ) )

S tms b m ts2 ) ) ) ) ) 0.22) 0.40) 0.35) 0.46) 0.18

im t mt tms b ) ) ) ) ) 0.08) (0.12) (0.13) (0.14) (0.05)

et ss ss3 ) ) ) ) ) (0.39) (0.04) ) )

ajst -gaap sts $2,846.5) $2,826.5) $3,141.6) $3,677.0) $3,901.3) $1.90) $2.23) $2.42) $2.79) $3.08

corporaTe oice

M Js ntt cm

2701 ptt B, 4t

g, is 60026

ut Stts

847.832.2420

.mjs.m

STock exchange

M Js ntt cm

s st t t n y St

e t t smb MJn.

regiSTrar and TranSer agenT

cmts S Ss llc

480 wst B

Js ct, n Js 07310

866.207.6566 ( u.S.)

201.680.6578 (ts u.S.)

t m (Tdd) 800.231.5469

.mts.m/st

dividend policy

ds M Js mm st

b t B dts t

bss t bt t st

J, a, J otb.

independenT puBlic

accounTing irMdtt & T llp

CORPORATE AND SHAREHOLDER INFORMATION

PORTFOLIO MEETING WIDE-RANGING PEDIATRIC NUTRITIONAL NEEDS

2012 annual repor

rouTine

~40% t t

SoluTionS

~10% m t

SpecialTy

~10% s, s t,

mtt mtb ss

childrenS

~40% s tt smtt


16/16

Mead Johnson Nutrition 2012 Annual Report

Documents

Transcript of Mead Johnson Nutrition 2012 Annual Report