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bristol myerd squibb Credit Suisse 2008 Healthcare Conference

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bristol myerd squibb Credit Suisse 2008 Healthcare Conference

  1. 1. Jean-Marc Huët Senior Vice President and Chief Financial Officer Credit Suisse Health Care Conference November 13, 2008 Not For Promotional Use
  2. 2. 13 November 2008 During this meeting, we will make statements about the Company’s future plans and prospects, including statements about our financial position, business strategy, research pipeline concerning product development and product potential, that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward- looking statements as a result of various important factors, including those discussed in the company’s most recent annual report on Form 10-K, periodic reports on Form 10-Q and current reports on Form 8-K. These documents are available from the SEC, the Bristol-Myers Squibb website or from Bristol-Myers Squibb Investor Relations. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Not For Promotional Use
  3. 3. Next Generation BioPharma Leader Best of Pharma Best of Biotech Next Generation BioPharma Innovate Integrate Improve Agile, Entrepreneurial and Accountable Culture Not For Promotional Use 3
  4. 4. 2008 Highlights Important steps taken to become a Next Generation BioPharma Company Very strong operating performance Strengthened overall financial position Increased focus on longer term sustainability Not For Promotional Use 4
  5. 5. Significant Shifts in BMY Portfolio Medical Imaging – Sold for ~ $500 million ConvaTec – Sold for ~ $4.1 billion Mead Johnson – Planned 10-20% IPO Adnexus – Purchased for ~ $500 million Kosan – Purchased for ~ $200 million Not For Promotional Use 5
  6. 6. A More Focused Portfolio Today January 2007 September 2008 Pharmaceuticals 86% 77% Mead Johnson 13% 14% 6% 4% ConvaTec Medical Imaging Based on Revenues Not For Promotional Use 6
  7. 7. Strong Sept YTD Operating Performance Strong, Broad-based and High-Quality Sales Growth – Global Sales 17% – Volume Growth 9% Improved Non-GAAP Margins* – Gross Margin 90 basis points – Net Margin 210 basis points Robust Non-GAAP EPS Growth* 32% * GAAP to Non-GAAP reconciliations available on BMS website. Not For Promotional Use 7
  8. 8. Broad-based Sept YTD Sales Growth Business Segment Geographic Area +17% +14% U.S. Mead Johnson Lat Can Pharmaceuticals Pacific +8% EMEA +17% +19% +18% Not For Promotional Use 8
  9. 9. Important Productivity Initiatives Are Underway Commercial Supply Chain R&D G&A Wave 1 Operations $400 MM $200 MM $350 MM $550 MM = $1.5 Billion Headcount & Streamlining Wave 2 Procurement Related Costs Organization = $1 Billion Not For Promotional Use 9
  10. 10. Strong Financial Position Not For Promotional Use
  11. 11. BMY Has a Very Strong Cash Position 2009 FCF* $7.2 Bn MJN* Imclone* $1.8 Bn Cash Cash Cash 31 Dec 2007 30 Sept 2008 31 Dec 2009** * Expected future cash flows ** Expected cash excluding business development Not For Promotional Use 11
  12. 12. BMY Has a Conservative Capital Structure 31 Dec 2007 30 Sept 2008 Cash, Marketable Securities $2.2 Bn $7.4 Bn % Treasuries / Treasury backed — 84% Debt $6.3 Bn $6.3 Bn Average Maturity 16 yrs 21 yrs Net (Debt) / Cash ($4.1) Bn $1.2 Bn Not For Promotional Use 12
  13. 13. We Have Increased Our Focus on Cash Flow Earnings – Sales growth – Productivity initiatives Capital expenditures – Manufacturing rationalization – Devens Changes in trade working capital – Receivables – Inventory – Payables Not For Promotional Use 13
  14. 14. There Is Significant Scope for Improvement Working Capital as % of Sales – 12/31/2007 21% 17% 12% Pharma Average* BMY Best in Class* * Bristol-Myers Squibb estimates Not For Promotional Use 14
  15. 15. We Have Started a Working Capital Initiative Receivables Payables Inventory • Process float • Compliance to terms • Forecast accuracy • Commercial terms • Extension of terms • Plant and SKU rationalization Goal: Improve cash flows by $750 MM to $1 BN through improvements in working capital by 2011 Not For Promotional Use 15
  16. 16. Looking at the Business in Three Stages 1 2 3 Execution Execution & Promise of Productivity BioPharma Model Productivity Pipeline Pipeline Pre-Tax Earnings Investment in Stage 2 & 3 Business Business Development Development Current Growth Base Return to Trajectory Earnings Growth 2007 2011 2013 2017 Not For Promotional Use 16
  17. 17. Initial Impressions Organizational passion and talent An incredibly resilient organization The need to achieve the right balance as we move forward The need to leverage the advantage of our mid size and scale Significant accomplishments in 2008 Not For Promotional Use 17
  18. 18. Jean-Marc Huët Senior Vice President and Chief Financial Officer Credit Suisse Health Care Conference November 13, 2008 Not For Promotional Use

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