Abbott Laboratories 2015 Annual Report Download - page 4

OUR OPERATING
ENVIRONMENT
Abbott’s response to those economic
forces underscores the strength of
our business, the unusual flexibility
provided by our broad and well-
balanced business diversity, and
our proven ability to navigate
challenging waters.
The primary factor in our business
environment in 2015 was the strong
U.S. dollar. This is, of course, not a
new phenomenon and is one that
will continue to be felt in 2016. While
we’ve grown accustomed to this and
know well how to manage for it, this
eect was greater in 2015 than in the
earlier years of this strong-dollar cycle.
For instance, in 2013 the impact of
exchange reduced our top line by 2.1
percent and by 2.5 percent in 2014. Last
year its impact was 8.3 percent. Our
business diversity, strong positions,
and management acumen allowed us
to manage this significant headwind.
Another major current during
2015 was concern about emerging
economies. While it’s true that the
growth of these markets has slowed,
they continue to grow at double the
rate of developed markets and, thus,
still present by far the best growth
opportunity in the world today. We
have long experience managing
through the ups and downs of
international markets and we remain
confident in their potential over the
long term.
The third major factor was price
inflation in a record market for
mergers and acquisitions. That we
did no major new deals in 2015 in
no way suggests that we are not as
strategically attuned and ambitious
as ever. We fully intend to continue
building the company through focused,
enhancing acquisitions, as we have
continually over the past 17 years.
We’ll remain active and prudent —
mindful of finding the right balance of
strategic fit, timing, and returns that
will benefit shareholders over the long
term. We believe we found just such an
opportunity in our recent agreement
to acquire Alere, the leader in point-of-
care diagnostics.
OUR FORMULA
FOR SUCCESS
This was the environment we
navigated in 2015 en route to delivering
another successful year. We’re able
to do this year after year on the basis
of foundational strengths that give us
the ability to execute our strategies,
adjust as necessary, and seize the
opportunities we choose to pursue. As
detailed in this report, our company is:
BALANCED
Well-managed diversity has been our
core strategy for many years, and we
work hard to maintain it in all of the
major dimensions of our business.
This both oers us the widest range of
opportunities and safeguards us from
over reliance on any particular part of
our business.
Business Portfolio: Abbott is composed
of four large and strong core
businesses: Nutrition, Diagnostics,
Medical Devices and Established
Pharmaceuticals. Together, they cover
the entire spectrum of healthcare and
people of all ages. This gives us the
opportunity to participate in a broader
LETTER TO OUR SHAREHOLDERS
ABBOTT CONTINUOUSLY SHAPES ITS BUSINESS FOR SUSTAINED SUCCESS,
ALIGNING ITS PORTFOLIO WITH SPECIFIC MARKET NEEDS AND PROVIDING
SHAREHOLDERS WITH RELIABLE GROWTH AND INCOME.
Advancing Science
Abbott is investing in
innovation that addresses
some of the world’s most
pressing medical needs
Navigating Risk
A broad portfolio and
global presence help
reduce the impact
of challenges in any
one market segment
or geographic region
Focusing on Growth
Opportunities
We’re growing our
presence in markets
where the opportunities
and needs are high and
our experience and
expertise are paving
the way
Meeting Local Needs
We are globally aligned
and locally driven to
address the specific
health challenges of the
communities in which we
live and work
ABBOTT 2015 ANNUAL REPORT
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