ABBOTT LABORATORIES W W W A B B

ABBOTT LABORATORIES W W W. A B B O T T. C O M

Abbott Laboratories Indiana University § Introduction § Abbott Overview § Financial Professional Development Program (FPDP) § Question and Answer

Introduction n Tom Carney IU Graduate, 1990 – Accounting u Abbott Intern, 1989 – Abbott Int’l (AI) u Current – Manger of Nutritionals, AI u n Kristin Kwiatkowski IU Graduate, 2001 – Finance & Ops Mgmt u Abbott Intern, 2000 – Pharmaceutical R&D u Current – FPDP, CED u n Heather Steffen IU Graduate, 2000 – Finance & Int’l Business u Current – Jr. Financial Cost Analyst, ADD u

Abbott Laboratories At a Glance § Headquartered in North Chicago, Illinois – a suburban community approximately 30 miles from Chicago. § A diversified healthcare company that discovers, develops, and manufactures and markets innovative products and services that span the continuum of care – from prevention and diagnosis to treatment and cure.

Abbott Laboratories At a Glance n n 60, 100 Employees Fortune 500 Ranking 135 in Revenues u 39 in Profits u 26 for Minorities u 58 in Market Value u n n n Located in 130 Foreign Countries Industry Week 100 Best Managed Companies Newsweek Top 10 Internship Programs

Abbott Laboratories At a Glance $13. 7 Billion in Sales (2000) n 63% domestic § 37% international § $15. 3 Billion total assets § 12. 4 % E. P. S. compound growth – last 10 years n

Health Care Industry Long-Term Business Trends n OPPORTUNITIES u u n Aging Population Higher Discretionary Incomes Scientific Discoveries “Quality of Life” Demand RISKS u u u Price Controls Regulatory Requirements Drug Development Costs

Abbott Laboratories Stock Price Compounded Growth 15. 7% $/Share

Abbott Laboratories Ross Products Division Abbott International Abbott Diagnostics Division Hospital Products Division Pharmaceutical Products Division TAP Pharmaceuticals Specialty Products Division Abbott Health. Systems Division

Major Business Components n PHARMACEUTICALS u n DIAGNOSTICS u u n Assays (AIDS, hepatitis, cancer, thyroid, fertility, Clinical Chemistry, Hematology, etc. ) & instruments (e. g, Ax. SYM) Glucose monitoring HOSPITAL PRODUCTS u n Biaxin, Depakote, Norvir, Flomax, Kaletra, Lupron, Prevacid, Synagis Tri. Cor Anesthetics, delivery systems, injectables generics, IV solutions, imaging, blood vessel surgical closure devices NUTRITIONALS u Similac, Isomil, Ensure, Glucerna, Pedialyte

Abbott Laboratories Financial Training Program WHAT IS IT? n n Two year program 5 or 6 full-time assignments/4 to 6 months long u Real contributor roles u Important to operation of business Hands-on experience u At either corporate, division, or operating levels u In either FP&A, cost, or reporting Structured Mentorship

Financial Professional Development Program (FPDP) n MISSION - To develop u Financial skills u Knowledge of Abbott divisions and operating environments u Superior contributors u Future managers prepared for a variety of positions l not trained for a specific discipline l

Financial Training Program n n Program Manager u Division V. P. or Controller Level u Mentor for 1 or 2 trainees u Ongoing guidance/counseling on progress and performance u Selection of appropriate training assignments u Provides placement assistant upon program completion Assignment Manager u Day to day management u Training on specific skills u Exposure/Networking opportunities within division u Formal evaluation by assignment manager/ trainee makes recommendations for improvement

Strengths of FPDP Program n n Cross Functional Exposure (Non-Finance) Off-Site Assignments u Domestic u International

& A Finance Training Program: Assigments FP Pharma st Diagnostics g Co Hospital Products po rt in Nutritionals Re International Chemical Corporate Divisional Operating

Off- Site Assignments Domestic Boston Columbus Los Angeles Dallas

Recent Off- Site Assignments International n Germany Financial Planning & Analysis u Cost Accounting u n Ireland u n Cost Accounting United Kingdom u Financial Planning & Analysis

Graduation Opportunities n n n Location: Domestic / International Divisions: Pharma, Diagnostics, Hospital Products, Corporate… Choice of Discipline: u General Accounting/Reporting u Manufacturing Accounting u Financial Planning & Analysis u Treasury

Where are they now? Kevin Dolan Controller TAP Pharmaceuticals 1981 Cathy Hamilton Assistant Controller HPD 1986 Mike Hodges Director, Capital Markets & Treasury Ops 1989 FPDP Graduates John Poulos Dir, Licensing & Acquisitions AI 1980 Stafford O'Kelly Controller, RPD Pharmaceuticals 1985 Jenny Dart Mgr Portfolio Analysis PPD 1993 Bill Chase Area Finance Director Pacific, Asia, Africa AI 1991

Where are they now? Diane Bernstein Business Planning Medi. Sense ADD 1990 Tom Carney Manager, Nutritionals AI 1992 Rob Michael Manager, Consumer Glucose FP&A ADD 1995 Bill Chase Area Finance Director Pacific, Asia, Africa AI 1991 1990 s/2000 FPDP Graduates Mark Spina Sr Financial Analyst Medical Nutritionals RPD 1995 Jeff Barton Controller Com. Disco Netherlands 1992 Ganesh Dalan Financial Manager India ADD 1998 Darron Damasius Financial Analyst Delkenheim, Germany ADD 2000

Personal Development n Workshops u Time Management, Presentation Skills, Total Quality Management n CPA/CMA Review Courses n Exposure u To Senior Management u Across Divisions

Abbott “Fringe” Benefits n FPDP Events: u Game Works u Golf Outings u Cub Games n Abbott Sports Leagues n On-site Recreation Facility

Abbott & Work Life Solutions Our future success is directly related to the quality/dedication of out employees n n n Child care center Clara Abbott Foundation – Family crisis, natural disasters, medical crisis, educational grants Flexible work arrangement Recreational and sports activities Wellness Programs – Stress management, nutrition, on site heath screening

Abbott’s Sales in 2000 were? A. B. C. D. 40. 2 Billion 13. 7 Billion 20. 6 Million 300. 7 Million

Which Product does Abbott Not Make? A. Health Source Soy Bars B. Similac Infant Formula C. Selsun Blue D. Biaxin

In what year was Abbott founded? A. 1888 B. 1910 C. 1917 D. 1950

Which of the Following Locations does Abbott not have a Plant? A. B. C. D. Tokyo, Japan St. Remy, France Rocky Mount, N. C. Kansas City, K. S.

Approximately Where is Abbott’s Stock Trading? A. $25 B. $50 C. $70 D. $95

What Team Will Win the Big 10 Football Title in 2001? A. B. C. D. Indiana University hey…. you gotta keep the faith……