Ari Lazar Kyle Castner Jessica Kan Gongsheng Wang Presented April 28, 2015

Agenda Introduction Macroeconomic Overview Business Overview Stock Market Prospects Financial Analysis Projections Valuation Recommendation

Introduction Current Holding 400 Shares o $24.99 on 4/28/11 o $25.38 on 11/11/11 o $31.55 on 12/10/12 o Weighted Average cost $26.73 Current Price: $48.54 o % gain P/E Ratio: Week Range: $37.78 – $48.40 Dividend Yield: 1.99% Yahoo Finance/Google Finance

Recent Returns Google Finance

Company Overview Abbott develops, produces, and sells healthcare products Proxy Statement

Revenue Breakdown 2015 Proxy Statement

Revenue Breakdown 2015 Proxy Statement

Macroeconomic Overview MarketWatch.com Large Emphasis on aging population and increasing birth rates

Recent Earnings Q was very successful Sales increase of 3% faster then Analyst Estimates Beat Analyst Estimates on Earnings by $0.05 per share Stock Rose nearly 2% Yahoo Finance and Abt Q Earnings transcript

Management Miles D. White- Chairman, CEO o Began tenure at Abbott Laboratories 1984 o Appointed as the CEO in 1998 Source: Bloomberg

Management Serves as a Director of Caterpillar Inc., and also of McDonald’s Corp. Chairman of The Culver Educational Foundation Board of Trustees of Northwestern University, Field Museum of Chicago and American Academy of Arts and Sciences Prior initiatives supported include acquiring the Humira drug, and spin offs of Abbvie as well as Hospira Source: Abbott.com

Porter 5 Analysis ABT Threat of New Entrants Low Threat of Substitutes High Supplier Bargaining Power Moderate Buyer Bargaining Power Low Rivalry Moderate

SWOT Analysis Strengths Strong Pipeline of 20 Potential New Products Recent Sale of Mylon Stock Fantastic Product line Weaknesses Sensitivity to Strong Dollar Highly Competitive Industry Opportunities Rising Birth Rates Aging Population New Markets Threats Competitors Safety Issues R&D Failures

Recent Acquisitions and Expansion CFR Pharmaceuticals Acquisition o Top 10 Pharmaceutical company in Latin America Topera Acquisition o Vascular Device New Cataract Facility in Malaysia New Flash Glucose Device in Europe Milk Nutrition Expansion o China, India, USA 20 Potential New Products XIENCE Alpine approved in Japan Sold a segment to Mylan for 110 Million Shares of Mylan Stock Abt Q4 Earnings Call Transcript

Risks Change in future regulations Government approval of products Patents Expirations on devices R&D failures Safety issues with products Mylan Stock Exposure (Mitigated by recent sale) Strength of the Dollar Abt 10K

Relevant Stock Market Data

Relevant Market Data

Financial Analysis

Comps Analysis All Data From Capital IQ

Valuation

Revenue Projections Data From Abt K and Q4 Earnings Call Transcript

Revenue Projections Total Established Pharmaceuticals Key Emerging Market2,7972,2812, % Change1% Other Emerging Market % Change13%39%32%22%15%13%11% Total 2,7972,8623,1183,3983,6523,8704,0844,289 2%8.9%9.0%7.5%6.0%5.5%5.0% Nutritionals InternationalPediatric2,0752,2572, % Change9%4%8.8%7.5%7.0%6.5%4.0% U.S.Pediatric1,5051,5321, % Change2%-1%-1.0% InternationalAdult1,4891,6011, % Change8%10%15.0% 10.3%10.0%8.8% U.S.Adult1,3921,3501, % Change-3% -3.0% -2.0% -1.0% Total 6,4616,7406,9537,3697,8118,2038,6138,959 4%3.2%6.0% 5.0% 4.0% Diagnostics— Immunochemistry3,2793,4583, % Change5% 4%5%4% Others1,0131,0871, % Change7%2%5% 4% Total 4,2924,5454,7214,9575,2055,4135,6445,870 % Change 5.9%3.9%5.0% 4.0%4.3%4.0% Vascular % Change Drug Eluting Stents (DES) and Bioresorbable Vascular Scaffold (BVS) products1,5991,5631, % Change-2%-6%-2% -1%-2% Other Coronary Products % Change-3%0%1% 0%-1% Endovascular % Change5%11% 12%10%8% Others % Change-6%5% 4%2% Total 3,0713,0122,9863,0443,1213,1833,2313,269 % Change -1.9%-0.9%2.0%2.5%2.0%1.5%1.2% Diabetes Care and Medical Optics segments2,4572,4982, % Change2%-1%2.50% 3.00% Sales 19, , , , , , , , % Change 3.03%3.00%5.19%5.09%4.28%4.21%3.69%

WACC

DCF

Sensitivity Analysis

Recommendation Comparable Analysis : $46.19 DCF : $44.44 o Target Price $45.31 Current Price: $48.32 Technical Analysis Timing Portfolio Weighted Heavily in Healthcare (45%) o Abt, Abbv, WBA, NHC o Time to diversify Sell 100 Price