Abbott Labs 2012 AGM Presentatio

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Abbott Annual Shareholders Meeting Miles D. White, Chairman and Chief Executive Officer April 27, 2012

[Slide 1: Event Title]

[Slide 2: Miles White, Title]

In 2011, Abbott delivered exceptionally well on its commitments to you, our

shareholders. Abbott people continued to execute effectively against our strategies,

generating strong results despite a very challenging industry environment. Around the

world we saw slow economic growth, increasing currency pressures, and austerity

measures in a number of developed country markets. Nevertheless, we delivered sales

growth of nearly 11 percent, and ongoing earnings-per-share growth of almost 12

percent.

At the same time, we took deliberate steps in each of our businesses to help position them

for continued long-term success. And, most notably, we initiated the next stage in our

company’s evolution. In order to more effectively align Abbott’s long-term strategic

goals with our shareholders’ best interests, we announced that we will separate our

businesses into two industry-leading, publicly traded companies by the end of this year.

[SLIDE 3: Creating Two Leading Companies]

The first of these will be a diversified medical products company that will retain the

Abbott name. This company will be composed of our established pharmaceuticals

business, diagnostics, devices, nutritional products and animal health. If it were a stand-

alone entity this year, it would have sales of more than $22 billion. The second will be a

roughly $18-billion research-based pharmaceutical company consisting of Abbott’s

current proprietary pharmaceutical business.

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Last month, we announced that this new company will be called AbbVie. The name is a

blending of Abbott and “vie”. The first syllable serves as a constant reminder of the

company’s enduring connection to Abbott; the second is derived from the root of the

Latin word for life, and calls attention to the vital work the company will continue to

advance as it improves the lives of people around the world.

I will continue to be Chairman and CEO of Abbott; and Rick Gonzalez will serve as

Chairman and CEO of AbbVie. Many of you know Rick already, but I’d like to introduce

him formally – Rick, if you’d please stand. Rick is a 30-year Abbott veteran who is

currently head of our global Pharmaceutical Products Group. Earlier, he was Abbott’s

President and Chief Operating Officer, so he’s ideally suited for this new role.

These two organizations will have very distinct business and investment identities, but

they will both build on the strong foundation we’ve created and, most importantly, they

will both operate with the values that have made Abbott great for almost 125 years.

This decision is the logical outcome of changes that have taken place in our business

environment and the strategic actions we’ve taken over the past dozen years to meet

them. These actions have dramatically reshaped and strengthened Abbott. In this time, we

have transformed our company – entering new businesses, expanding our presence in

emerging markets and aggressively building our pharmaceutical pipeline.

Through this process, Abbott has evolved into two distinct halves, with different

business models and very different demands and priorities. Today, research-based

pharmaceuticals have different approval and life cycles, research and development

profiles, regulatory environments and geographic market focuses than our other

businesses.

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For all practical purposes, these two halves are already functioning as separate, highly

successful companies. Converting them into independent operations, with distinct

investment identities, will provide you, our shareholders, with two unique -- and highly

attractive -- investment opportunities.

[SLIDE 4: Shared Strengths, Distinct Identities]

On their first day of independent operation, both businesses will be Fortune 200

companies, and in the top ten in their respective industries. They will both have broad

product portfolios and global reach. They will have very strong balance sheets and

significant, durable cash flow. Both are expected to pay a dividend that, when combined,

will at least equal the Abbott dividend at the time of separation.

They’ll be different in important ways, as well. The research-based pharmaceutical

company is a higher margin business, with a more intense research focus, and more of its

business concentrated in developed markets. The diversified medical products company

will have a higher growth rate, because more of its business is in emerging markets,

which are growing faster.

But these attributes are not mutually exclusive. Abbott will continue to be research-

driven and highly profitable; and AbbVie will continue to be strong around the world,

including in developing markets. The process of separating the two companies – which,

as you would expect, is complex -- will be complete by the end of this year. We have an

established cross-functional working team devoted to managing this effort, and we’ve

achieved a number of important milestones in the separation process.

We’re proceeding steadily toward our year-end goal, but, until then, we’ll continue to

operate as one Abbott, pursuing the strategies that helped us generate the strong results

we achieved last year, and that will position both new companies for sustained success.

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[SLIDE 5: 2011 Results]

For 2011, we increased sales by almost 11% [10.5%], grew net ongoing earnings by

almost 13% [12.8], and increased ongoing earnings per share by about 12% [11.8%].

Each of our businesses contributed to this success, as you’ll see when I discuss their

specific highlights.

[SLIDE 6: Dividends]

Our strong performance has also made it possible for Abbott to continue to pay a rising

dividend over the years. In February we announced our 353rd consecutive quarterly

dividend to be paid since 1924. Last year, we returned $3 billion to shareholders in the

form of dividends, and Abbott has now increased its dividend payout for 40 consecutive

years. This year, Abbott has declared an annualized dividend of $2.04 per share

We are a member of the S&P 500 Dividend Aristocrats Index, which tracks companies

that have annually increased their dividend for at least 25 consecutive years. Our

consistent string of dividends also led us to be named a leading dividend stock by Money

magazine.

[SLIDE 7: 1-Year Total Return]

These results have allowed us to continue delivering a strong return for our shareholders,

as you can see in this chart, which shows the total return we provided investors in 2011.

Total return is the combination of stock price growth plus dividends paid. Our total

return of almost 22% in 2011 was our best performance in five years.

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[SLIDE 8: 5-Year Total Return]

And, as you can see, over the past five years we’ve generated a greater total shareholder

return than any other company in our diversified peer group. Our stock price has

continued to rise since we announced our intention to separate into two leading

companies, hitting an all-time high this week.

Looking at the highlights from each of our businesses will give you a better sense of how

these results came about, and how we’re going to sustain our success going forward. I’ll

start with the Diversified Medical Products businesses, which include four segments of

roughly equal size: Established Pharmaceuticals, Nutritionals, Diagnostics, and Medical

Devices. In these businesses our strategy of building innovative portfolios of patient-

focused products, combined with our opportunity in fast-growing emerging markets, will

position us very well for sustained success.

[SLIDE 9: Business Highlights – Established Pharmaceuticals]

Our newest business in this group is Established Pharmaceuticals. In its first full year of

operation as a separate division, it delivered sales in excess of $5 billion, up almost 20

percent [19.8%], including the acquisition of Piramal Healthcare. With Piramal, Abbott

has become the number-one pharmaceutical company in India, one of the world’s fastest

growing markets.

Branded generics are a key part of our strategy to expand Abbott’s presence in emerging

markets, and we are very well positioned in this space. We have an extensive portfolio

that continues to grow quickly -- last year in EPD we benefited from 250 product

approvals, new formulations and new registrations, and we expect to add more than a

thousand over the next several years. We’re building this new business on our solid

reputation for quality, consistent efficacy and safety, and a reliable supply chain.

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Because EPD’s business model aligns more closely with Abbott’s diversified medical

products businesses, it will remain a part of Abbott after the separation.

[SLIDE 10: Business Highlights – Nutritionals]

Our global Nutrition business delivered almost 9 percent growth [8.6%] for the full year

2011. In the U.S., we’ve regained our position as the infant formula market leader with

Similac. We also continued to drive double-digit growth of our toddler brand, PediaSure.

Abbott is the global leader in adult nutritional products, as well, with our Ensure line of

balanced nutrition products and condition-specific offerings such as Glucerna, for people

with diabetes. In this category, we’ll continue to grow by introducing leading-edge,

science-based products like our new Glucerna Hunger Smart shakes. These are

formulated to help people with diabetes manage their hunger along with their blood-

glucose levels.

Outside the United States, sales increased about 14 percent [13.9%] for the full year, as

we continued to drive growth in emerging markets, where rising populations and personal

incomes are leading to higher demand for our products. Our nutritional sales in emerging

markets account for more than 40 percent of our total nutritional business, and increased

17 percent for the full year. In China alone, we expect nutrition sales to reach nearly $1

billion by 2014.

To meet the growing global demand for our nutritional products, we’re building new

manufacturing facilities in important markets around the world. Earlier this month, we

broke ground for a state-of-the-art nutrition manufacturing facility in Ohio to meet U.S.

demand for products like Ensure and Glucerna. We plan to have it operational late next

year. And we’re building additional advanced facilities in China and India to meet the

growing demand in those countries as well.

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[SLIDE 11: Business Highlights – Diagnostics]

In Diagnostics, our core laboratory business grew sales for the year by close to 8

percent [7.9%]. In this business, we’re focusing on tests and instruments that match

the needs of global healthcare systems by lowering costs, improving productivity, and

enhancing patient care. We delivered particularly strong growth in emerging markets

such as China, where we continue to place new Architect testing systems.

In our Molecular Diagnostics business, we delivered growth of almost 15 percent

[14.7%] compared with 2010. We launched three new infectious disease assays for

our m2000 molecular diagnostics platform in Europe: a qualitative HIV-1 assay, a test

for a virus common in transplant recipients, and a test for hepatitis B. And we

received approval from the FDA for a new molecular diagnostic test designed to

detect abnormal gene rearrangements in some lung-cancer tumors. The test is

intended to identify patients who will benefit from a new cancer therapy from Pfizer.

And, finally, our Point-of-Care Diagnostics business delivered more than 10 percent

growth [10.4%], thanks to incremental innovations like the i-STAT Wireless handheld,

which was launched in the U.S. last year. This device allows real-time transmission of

diagnostic test results directly from the patient bedside.

We will continue to grow each of these Diagnostics businesses through continued

innovation. This year we expect to launch approximately 20 new tests designed to

speed the process of identifying and treating disease, improving healthcare outcomes

and, ultimately, reducing costs.

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[SLIDE 12: Business Highlights: Medical Devices]

Moving on to our Medical Device businesses… in Diabetes Care, sales grew by 7

percent [7.0%] in 2011. In this business last year, we launched our new InsuLinx

glucose monitor in Europe. With its integrated insulin calculator, Insulinx is the

foundation for our new-product pipeline in this business, which is focused on

incorporating new technologies to improve the testing experience for insulin-

dependent patients.

Our Medical Optics business delivered almost 5 percent growth [4.6%] for the year.

We launched five new vision-care products in 2011, including the Tecnis Toric

intraocular lens, which was introduced in Europe. Our Vision Care pipeline is

balanced across our Lasik, Cataract and Eye Care Solutions business lines, with

numerous products launching over the next five years.

And in our Vascular business, we grew sales more than 4 percent [4.4%] and launched

several important new products last year that solidified our position as the number-one

vascular-device company globally.

This business will benefit this year from four new products -- Xience PRIME, our next-

generation stent that’s also approved for long lesions; the XIENCE nano stent, which is

designed to treat coronary artery disease in small vessels; and the TREK and MINI-

TREK coronary catheter systems, which were introduced in the U.S. and Japan.

In Europe, we received CE Mark approval for ABSORB, our bioresorbable vascular

scaffold, and we expect a full commercial launch by the end of this year.

Last Fall, ABSORB was cited by Business Week magazine as an example of a “Modern

Medical Marvel”; and was named the winner of the Medical Devices category in the

2011 Wall Street Journal Technology Innovation Awards. An Abbott innovation has

won this award in four of the last five years.

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And we expect numerous other product launches to drive growth in this business over

the next several years, including the U.S. launch of ABSORB, as well as our MitraClip

device for mitral regurgitation, and our recently announced new drug-eluting stent,

Xience Xpedition, which we anticipate launching in Europe in the second half of this

year.

Abbott Vascular is another of our businesses that continues to perform well in emerging

markets. This geographic segment, which accounts for nearly 20 percent of total vascular

sales, increased 25 percent for the full year.

Moving to the other side of our business.

[Slide 13: Business Highlights – Research-Based Pharmaceuticals]

In Research-Based Pharmaceuticals, which grew by 11 percent [11.0%] last year,

Humira continues its extraordinary performance. Humira sales were up more than 21

percent [21.1%] versus 2010, reaching almost $8 billion [$7.9B]. And it is expected

that Humira will become the world’s best-selling medicine this year.

In recognition of its continuing success, and the positive impact it’s had on patient’s

lives, Pharmaceutical Executive Magazine recently named Humira its “Brand of the

Year”.

This business also got a boost last year with FDA approvals for two products -- a new

formulation of AndroGel, our testosterone restoration therapy, that uses less volume

than earlier versions; and a new, six-month administration formulation of Lupron for

advanced prostate cancer. Those approvals helped both drugs achieve double-digit

growth for the year. We also delivered double-digit growth for Creon, our pancreatic

enzyme therapy.

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[Slide 14: Pipeline News – Research-Based Pharmaceuticals]

And our pharmaceutical pipeline is very promising. We have significantly more

compounds in development than we had just five years ago, and we’ve seen some

very encouraging data. Today, I’d like to focus on just a few research programs that

are of particular interest:

Our new developmental treatments for the Hepatitis C Virus, or HCV, have shown

the potential to be leaders in this category by effectively curing HCV infection with a

short course of therapy. Earlier this month, we presented excellent Phase 2 results for

our HCV compounds, which suggest that they may be more effective -- and better

tolerated -- than the current standard treatment.

Another late-stage highlight is bardoxolone, which is in Phase 3 trials for chronic

kidney disease. Bardoxolone has the potential to prevent and even reverse the

progression of this disease. No previous treatment has ever been shown to do this.

Bardoxolone could change the treatment landscape and have a significant economic

benefit to the healthcare system. We’re developing this compound with our partner,

Reata. We recently expanded that agreement to jointly develop and commercialize

their entire portfolio of next-generation anti-inflammatory treatments. This crosses a

number of disease states, including rheumatoid arthritis, multiple sclerosis and

chronic obstructive pulmonary disease.

And, earlier this year, we agreed to collaborate with the Dutch company Galapagos to

develop and commercialize a promising compound for the treatment of rheumatoid

arthritis and other auto-immune diseases. This drug -- which is in a class known as JAK

inhibitors but is more selective than previous drugs in this class -- has the potential to

offer an effective oral treatment option for these conditions.

These are just a few of the promising treatments we currently have in development.

We’ve been working hard to accelerate our pharmaceutical R&D program, and that

effort is beginning to bear fruit. In 2011, we advanced two agents into Phase 3

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development and now have more than 20 compounds or new indications in late-stage

development. In addition to these successes across our range of businesses, Abbott

continues to make a difference in people’s lives as a leading corporate citizen of our

communities.

[SLIDE 15: Global Citizenship]

Ten years ago, Abbott committed to donate 20 million rapid HIV tests to help prevent

mother-to-child transmission of HIV in the developing world. I’m pleased to report that

we reached that goal this month.

Last year, I told you about our initial response to the devastating earthquake and tsunami

in Japan. Our commitment to the relief effort extended well into the year. Abbott

eventually donated more than $3 million to provide medical and social services, as well

as food, shelter and supplies to the victims of this disaster.

In Haiti, Abbott scientists and engineers are working with the non-profit organization

Partners In Health to combat malnutrition.

We’ve entered into a four-year joint research and licensing agreement with the Drugs for

Neglected Diseases initiative to create medicines for a variety of tropical diseases.

We’ve continued our strong commitment to environmental stewardship as well. In fact,

we have already met our 2015 environmental stewardship goals, reducing both our water

usage and our CO2 emissions.

As a result of our efforts, Abbott was included for the fourth consecutive year on the

global "100 Best Corporate Citizens" list compiled by Corporate Responsibility

magazine. We were ranked number one in our sector in the social responsibility category

of Fortune Magazine’s Most Admired Companies list. And we were named to the Dow

Jones Sustainability Indexes for the seventh consecutive year. This is the world's top

recognition for leadership in responsible economic, environmental, and social

performance.

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[SLIDE 16: Recognition]

These positive external recognitions extend across all aspects of our operations. Among

the highlights:

The Great Place to Work Institute named us to its "Best Workplace" lists in countries

across Europe.

Working Mother magazine again named us to its "100 Best Companies" list, for

providing family-friendly benefits, programs, and workplace culture.

Both The Scientist and Science magazines again named us one of the top employers of

scientists in our industry.

For the fourth year in a row, The Deal magazine named us its Most Admired Corporate

Dealmaker in healthcare for our effective strategic use of mergers and acquisitions over

the past three years.

Barron's Magazine again named us to its annual list of "Most Respected Companies" for

investors.

And, finally, we were recently ranked second on Fortune Magazine’s annual list of the

most admired companies in our industry. This list is seen as the leading gauge of

corporate reputation.

So, as you can see, despite a very difficult environment, we continue to grow our

businesses -- making a difference in more lives, in more places, than ever before.

The challenges we face aren’t going to go away. But, as our results demonstrate, we have

the right strategies in place, and the right people to implement them. Our businesses are

strong, and ready for their futures – carrying forward Abbott’s legacy as two independent

companies, positioned for continued success in the future of healthcare.

# # #

Miles D. WhiteChairman and Chief Executive Officer

Creating Two Leading Companies

AbbVie: Research-Based Pharmaceuticals

g g pAbbott

Diversified Medical ProductsAbbVie

Research-Based Pharmaceuticals

Sales Mix

Established Pharma

25%

Medical Devices

27%

Primary Care~25%

Nutritionals28%

Diagnostics20%

Specialty~75%

Sales

Chairman & CEO Miles D. White Richard A. Gonzalez

~$22 Billion ~$18 Billion

CEO

Key Brands

Shareholders’ Meeting 3Company Confidential© 2012 Abbott

GDS_120110_Title_v1 3

Shared Strengths, Distinct Identitiesg

• Broad product• Higher growth

Abbott• Higher return

AbbVie• Broad product

portfolios, global scale and footprint

• Geographic expansion

• Developing markets

• Strong new product pipeline

• Developed marketsp

• Strong balance sheets

• Significant, durable h fl

• Developing markets • Developed markets

cash flow

• Strong dividends



2011 Results

• Worldwide Sales 10.5%

O %• Net Ongoing Earnings 12.8%

• Ongoing Earnings Per Share 11.8%



Dividends Declared

• 353rd consecutive quarterly dividend since 1924

• Increased our dividend payout for 40 consecutive years• Increased our dividend payout for 40 consecutive years

• Current annualized dividend of $2.04 per share

• Recognized by Standard & Poor’s, Money magazine g y , y g



1-Year Total Return as of December 31, 2011Abbott and Peer Groupp



Based on ABT closing price of $56.23Source: Bloomberg

5-Year Total Return as of December 31, 2011Abbott and Peer Groupp



Based on ABT closing price of $56.23Source: Bloomberg

Business Highlights:Established Pharmaceuticals

• Sales up 19.8%

E t i d t tf li• Extensive product portfolio– 250 product approvals in 2011– >1,000 new products, registrations, formulations

over the next several yearsover the next several years



Business Highlights: Nutritionals

• Sales up 8.6%

U S h i f Si il

g g

• U.S. share gains for Similac

• Double-digit growth for PediaSure

• Global leader in adult nutritionals• Global leader in adult nutritionals

• Ex-U.S. sales up 13.9%

• New manufacturing plants g p– Tipp City, Ohio – Jiaxing, China– Gujarat, Indiaj



Business Highlights: Diagnostics

• Core Diagnostics up 7.9%– Growing presence in emerging markets

g g g

Growing presence in emerging markets

• Molecular Diagnostics up 14.7%– New infectious disease assays,

companion testcompanion test

• Point of Care up 10.4%– i-STAT wireless handheld launched in U.S.



Business Highlights: Medical Devices

• Diabetes Care up 7.0%– InsuLinx monitor launched in Europe

g g

InsuLinx monitor launched in Europe

• Medical Optics up 4.6% – Tecnis Toric intraocular lens

launched in Europelaunched in Europe– Balanced new-product pipeline

• Vascular up 4.4%– New product launches p

solidify #1 position– European approval for ABSORB– Multiple upcoming product launches



Business Highlights: Research-Based Pharmaceuticals

• Sales up 11.0%

• Humira sales up 21 1%• Humira sales up 21.1%– Pharmaceutical Executive magazine’s

“Brand of the Year”

• FDA approvals for new formulations• FDA approvals for new formulations of AndroGel and Lupron

• Double-digit sales growth for Creon



Pipeline News: Research-Based Pharmaceuticals

• Promising data for Hepatitis C treatments

• Potential breakthrough treatment for Chronic Kidney Disease (bardoxolone)( )

• Promising treatment for auto-immune diseases

M th 20 d• More than 20 compounds in late-stage development



Global Citizenshipp

• Donation of 20 million rapid HIV tests

• Aid to victims of Japanese earthquake• Aid to victims of Japanese earthquake

• Sustainable solutions for malnutrition in Haiti

• Research agreement for neglected diseasesg g

• Met environmental stewardship goals ahead of schedule

f ff• External recognition for citizenship efforts– Corporate Responsibility

“100 Best Corporate Citizens”Fortune “Most Admired” list:– Fortune Most Admired list: #1 in sector for Social Responsibility

– DJSI: 7th Consecutive Year



2011 Recognitionsg



Abbott Shareholders’ Meeting

April 27, 2012

Appendix Reconciliation of Non-GAAP Measures

2011 2010 2009 2008 2007

Earnings From Continuing Operations




Earnings From Continuing Operationsp

($ millions) EPSp

($ millions) EPSp

($ millions) EPSp

($ millions) EPSp

($ millions) EPS

As reported under GAAP $4,728 $3.01 $4,626 $2.96 $5,746 $3.69 $4,734 $3.03 $3,606 $2.31

Acquired in-process R&D $673 $0.43 $313 $0.20 $170 $0.11 $76 $0.05

Reversal of contingent liability g y/ Gain on the conclusion of the TAP joint venture

($505) ($0.33) ($94) ($0.06)

Venezuela devaluation –balance sheet impact $115 $0.07

Asset (gains) impairments $76 $0.05 $158 $0.10 ($49) ($0.03) $60 $0.04

S i ff i i i l dSpin-off, acquisition-related costs and restructuring $763 $0.48 $1,035 $0.67 $508 $0.32 $366 $0.23 $596 $0.38

Health care reform – tax asset impact $60 $0.04

Litigation $1,534 $0.97 $106 $0.07 ($114) ($0.07) $183 $0.12 $92 $0.06

Product recall/withdrawalProduct recall/withdrawal costs $88 $0.06

Elimination of one-month lag $137 $0.09

Taxes ($580) ($0.37) ($30) ($0.02)

BSX investment $75 $0.05

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Excluding specified items $7,331 $4.66 $6,501 $4.17 $5,805 $3.72 $5,186 $3.32 $4,429 $2.84

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Abbott Labs 2012 AGM Presentatio