Barclays Capital

Health Care Conference

Thomas C. Freyman
Executive VP, Finance and CFO
Abbott
Forward-Looking Statement

Some statements in this presentation may be forward-looking

statements for the 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 Abbott’s Annual Report
on Securities and Exchange Commission Form 10-K for the year
ended December 31, 2010, 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.

Company Confidential 2
© 2011 Abbott
Healthcare Sector: Attractive Macro Growth Drivers

• Demographics/aging population
• Improving socioeconomics
• Benefits of economic recovery
• Emerging markets growth
• Significant medical opportunities remain
• Innovation/new technologies driving growth

Macro conditions, historically low valuations, provide

significant upside potential

Company Confidential 3
© 2011 Abbott
Abbott Well Positioned
• Track record of value creation
• Consistent financial strength and performance
• Diverse mix of growth drivers
– Durable Growth Businesses
• Established Pharmaceuticals, Nutritionals, Core Diagnostics, Diabetes Care
– Innovation-Driven Device Businesses
• Vascular, Molecular Diagnostics, Vision Care
– Proprietary Pharmaceuticals Business
• Specialty-focused, biologics leadership

• Geographically diverse, leading emerging market position

• Evolving new product pipeline
Abbott is built to deliver
sustainable top-tier EPS growth
Company Confidential 4
© 2011 Abbott
 Abbott’s Evolution
Strategic Actions Driving Shareholder Value
Strategic Action Year Rationale

Knoll acquisition 2001 • Expanded global footprint; bolstered pipeline with D2E7 (Humira)

Hospira spin-off 2004 • Sharpened strategic focus, investment in higher-growth segments

Guidant acquisition 2006 • Expanded vascular business, acquired #1 DES (Xience)

Kos acquisition 2006 • Expanded lipids portfolio

Sale of spine business 2008 • Exited underperforming market, received premium valuation

AMO, Visiogen acquisitions 2009 • Entered demographically attractive vision care market

Solvay/Piramal acquisitions 2010 • Provided critical mass in emerging markets; #1 position in India

Creation of EPD 2010 • Provided focus to maximize portfolio of branded generics

Facet, Neurocrine, Reata 2010 • Augmented late-stage pharmaceutical pipeline

Company Confidential 5
© 2011 Abbott
Financial Strength
Operating Cash Flow

Operating Cash Flow ($BN)

$8.7

$7.1

$5.3
$4.3

2004 2006 2008 2010

Significant cash flow generation

Company Confidential 6
© 2011 Abbott
Financial Strength
39 Years of Increasing Dividends

• 9% dividend increase announced Feb. 2011

• 2011 marks 39th year of increasing dividends
• Current dividend yield: 4%
• Payout ratio: >40%

Dividends declared Cash returned to shareholders

in dividends ($BN)
$1.92E
$1.76 $2.9E
$1.60
$1.44 $2.7
$2.4
$2.2

2008 2009 2010 2011 2008 2009 2010 2011

Company Confidential 7
© 2011 Abbott
Financial Strength
P&L Leverage Opportunities

• Sales growth: Mid-to-high single-digit

• Steady gross margin improvement
– Continued reduction of manufacturing costs
– Reported gross margin includes ~$1.6 billion in non-cash amortization
• SG&A leverage
– Efficiency initiatives
– Solvay synergy
• Resulting operating margin expansion
– Steady annual improvement
– Targeting mid-20s by 2014

Company Confidential 8
© 2011 Abbott
A Broad-Based Health Care Company
Total 2010 Abbott Sales: $35BN

Innovation-Driven Durable Growth

Device Businesses
$5BN
Businesses

Vascular $15BN Established

Pharmaceuticals
Molecular Diagnostics
Nutritionals
Vision Care
$15BN Core Diagnostics
Diabetes Care

Proprietary
Pharmaceuticals

U.S.
International

Company Confidential 9
© 2011 Abbott
A Broad-Based Health Care Company

Innovation-Driven Durable Growth

Device Businesses Businesses

57%

43%

Proprietary
Pharmaceuticals

Company Confidential 10
© 2011 Abbott
 Durable Growth Businesses

Key Attributes
Durable Growth
Businesses • Low to moderate R&D investment
• Minimal patent risk
Established
Pharmaceuticals
• Stable, market-driven business model
• Performance driven by exceptional execution,
Nutritionals product iteration
Core Diagnostics • Pricing flexibility
• Continued cost reduction opportunities
Diabetes Care
Sales growth: high-single-digit
Margin expansion: steady improvement

2010 Sales: $15BN

Company Confidential 11
© 2011 Abbott
Durable Growth Businesses
Established Pharmaceuticals
Durable Growth • Branded generics driving growth in emerging markets
Businesses • ~$5BN in 2011 sales; ~50% in emerging markets
• Sales growth: High-single-digit, double-digit in emerging markets
Established
Nutritionals
Pharmaceuticals
• High return on invested capital, strong cash flow
Nutritionals • >$2BN emerging market sales in 2011
• Sales growth: High-single-digit globally
Core Diagnostics Core Diagnostics
• #1 in blood screening, immunoassay diagnostics
Diabetes Care
• Strong execution and results in 2010
• Sales growth: Mid-single-digit
Diabetes Care
• Sales growth and continued margin improvement in 2011
• Improved profitability driven by favorable mix
• Sales growth: Low- to mid-single-digit

Company Confidential 12
© 2011 Abbott
 Innovation-Driven Device Businesses

Key Attributes
Innovation-Driven
Device Businesses • Moderate level of R&D spend, differentiated
product benefits and value
Vascular • Resulting pipeline products generate significant
revenue and profit contribution
Molecular Diagnostics • Lower patent risk
• Growth from long-term demographic trends
Vision Care
Sales growth: high-single-digit
Margin expansion: steady improvement

2010 Sales: $5Bn

Company Confidential 13
© 2011 Abbott
 Innovation-Driven Device Businesses

Vascular
Innovation-Driven • #1 drug-eluting stent worldwide
Device Businesses
• #1 manufacturer of coronary stents, guide wires
• Robust pipeline, geographic expansion to drive growth
Vascular
• Sales growth: mid- to high-single-digit
Molecular Diagnostics
Molecular Diagnostics
• Molecular market growing at a double-digit pace
• Abbott driving growth through menu expansion, share gains
Vision Care
• New technologies, Plex-ID, restating the market
• Sales growth: strong double-digit
Vision Care
• #1 positions in LASIK, #2 in cataract, #3 in contact lens care
• Growth driven by demographics, new products, geographic
expansion
• Realistic expectations of economic improvement
• Sales growth: mid- to high-single-digit

Company Confidential 14
© 2011 Abbott
Proprietary Pharmaceuticals

Proprietary Pharmaceuticals
Proprietary
Pharmaceuticals • Leading market positions in RA, psoriasis, Crohn’s
Disease, lipid management, HIV, cystic fibrosis,
low testosterone, thyroid disease
• Recently globalized for improved efficiency
• Continued strong growth for Humira
2010 Sales: $15Bn
Pharmaceutical Pipeline Advancing
• ~ 20 NMEs/indications in Phase II or III by YE2011
• Opportunities in significant markets
– Chronic kidney disease, hepatitis C, cancer, multiple
sclerosis

Company Confidential 15
© 2011 Abbott
Emerging Markets: Abbott Well Positioned
• Expanding reach in fast-growing emerging markets
• Growing three times the rate of developed markets

Company Confidential 16
© 2011 Abbott
Emerging Markets: Abbott Well Positioned
International Sales Emerging Market Sales
>$14BN

2010: $20.0 Billion >$8BN

2000:
$4.7
Billion
2010 2014

International Presence
• More than quadrupled international sales over past decade
• In 2010, approximately 23% of total sales from emerging markets
– Growing to >30% in 2014

Company Confidential 17
© 2011 Abbott
Emerging Markets
Pharmaceuticals Strategy

Abbott Zydus Established

Legacy/Knoll Cadila Pharmaceuticals

Solvay Piramal
Pharma Healthcare
Solutions

Strategic actions provide the right structure and give Abbott critical mass to
become one of the largest pharmaceutical companies in key emerging markets

Company Confidential 18
© 2011 Abbott
Emerging Markets
Nutritionals and Diagnostics Strategy
Nutrition
• Abbott’s second-largest emerging
markets business
• Enhanced strategic focus to maximize
opportunities around the world

Diagnostics
• Capitalizing on rapid expansion of middle
class, increase in demand

Company Confidential 19
© 2011 Abbott
 Broad-Based Pipeline
• Oncology
• Immunology
Proprietary • Neuroscience
Pharmaceuticals • Pain
• HCV
• CKD
• Women’s Health

• Vascular
• Molecular
Innovation-Driven Medical Diagnostics
Devices • Vision Care

• Established
Pharmaceuticals
Durable Growth • Core Diagnostics
Businesses • Nutrition
• Diabetes Care

Company Confidential 20
© 2011 Abbott
Future Growth Drivers
Broad-Based Pipeline: Proprietary Pharmaceuticals

Therapeutic Area

Chronic Kidney • Two late-stage opportunities with potential to change landscape

Disease • Bardoxolone entering Phase III 1H11; >$1BN peak opportunity

• Three mechanisms of action in the clinic: protease, polymerase, NS5A

Antiviral (HCV)
• >$1BN peak opportunity

• Daclizumab in Phase III, potential to provide improved efficacy, safety

Multiple Sclerosis
• >$1BN peak opportunity

• Compound in development for endometriosis, uterine fibroids

Women’s Health
• Elagoix currently in Phase II development

• Investigating small molecule and biologic approaches

Immunology
• Proprietary platform that could lead to combo biologics

• Multiple approaches in development for more than a dozen cancer types

Oncology
• >$1BN peak opportunity

Company Confidential 21
© 2011 Abbott
Future Growth Drivers
Broad-Based Pipeline: Innovation-Driven Devices

Therapeutic Area

Mitral • Most common structural heart defect; MitraClip panel expected in 2011
Regurgitation • >$500MN peak opportunity

Coronary Artery • 10 coronary technologies coming to market over the next 5 years
Disease • Xience Nano and Prime, ABSORB; >$1BN peak opportunity

Vision Disorders • 20 new devices and technology advancements over next 5 years

Molecular • Game-changing technology in development to diagnose disease

Diagnostics • IBIS represents >$1BN peak opportunity

Company Confidential 22
© 2011 Abbott
Future Growth Drivers
Broad-Based Pipeline: Durable Growth Businesses

Therapeutic Area

• Focused on six benefit platforms

Nutritionals
• ~20 new products, enhancements to be launched in 2011

Established • Rapid iteration of new formulations, other line extensions

Products • Launching hundreds of new products in key countries over next 5 years

Diabetes Care • Improvements in test strips and glucose monitors

Core Diagnostics • Continued expansion of test menus, next-generation systems

Company Confidential 23
© 2011 Abbott
Abbott Well Positioned
• Track record of value creation
• Consistent financial strength and performance
• Diverse mix of growth drivers
– Durable Growth Businesses
– Innovation-Driven Device Businesses
– Proprietary Pharmaceuticals Business
• Geographically diverse, leading emerging market position
• Evolving new product pipeline

Abbott is built to deliver

sustainable top-tier EPS growth
Company Confidential 24
© 2011 Abbott
Barclays Capital
Health Care Conference
Thomas C. Freyman
Executive VP, Finance and CFO
Abbott