Jean-Marc Huët, Senior Vice President and Chief Financial Officer of Bristol-Myers Squibb, presented at the Credit Suisse Health Care Conference on November 13, 2008. He discussed Bristol-Myers Squibb's plans to become a next generation biopharma company through productivity initiatives aimed at improving efficiency. He highlighted strong financial performance in 2008 due to sales growth, margin improvements, and portfolio shifts including selling medical devices businesses. Huët believes Bristol-Myers Squibb is well positioned with a strong cash position and conservative capital structure to execute on productivity goals and pipeline investments.
20240429 Calibre April 2024 Investor Presentation.pdf
BMY CFO Discusses 2008 Performance and Future Plans
1. Jean-Marc Huët
Senior Vice President and
Chief Financial Officer
Credit Suisse Health Care Conference
November 13, 2008
Not For Promotional Use
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.
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3. Next Generation BioPharma Leader
Best of Pharma
Best of Biotech
Next Generation
BioPharma
Innovate Integrate Improve
Agile, Entrepreneurial and Accountable Culture
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3
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
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4
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
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5
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
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6
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.
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7
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%
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8
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
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9
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
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11
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
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12
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
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13
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
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14
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
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15
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
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16
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
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17
18. Jean-Marc Huët
Senior Vice President and
Chief Financial Officer
Credit Suisse Health Care Conference
November 13, 2008
Not For Promotional Use