2 0 1 9 A n n u a l R e p o r t o n AbbVie F o r m 1 0 - K 2 0 2 0 . N Here Now o t i c e o f A n n u a l M e e t i n g & P r o x y S t a t e m e n t 2019 Annual Report on Form 10-K 2020 Notice of AbbVie 1 North Waukegan Road, North Chicago, IL 60064 U.S.A. Annual Meeting Copyright© 2020 AbbVie. All rights reserved. abbvie.com & Proxy Statement 3033_Cover.indd 1 3/18/20 6:36 PM AbbVie’s Commitment to Corporate Responsibility Stockholder Information We strive to make a remarkable impact on patients and drive sustainable growth by discovering and AbbVie Inc. Corporate Headquarters delivering a consistent stream of innovative medicines that address serious health problems. 1 North Waukegan Road North Chicago, IL 60064 IIn accordance wiitth our Priinciiplles:: 847.932.7900 abbvie.com Transforming lives Embracing diversity and inclusion Acting with integrity Serving the community Investor Relations Driving innovation Dept. ZZ05, AP34 Our Corporate Responsibility priorities are: Corporate Secretary Dept. V364, AP34 Using our expertise to Stewarding our ethical and Supporting long-term Stock Listing improve health sustainable business community strength The ticker for AbbVie’s common stock Creating real health improvement is We recognize that health is of The health of our business is is ABBV. The principal market for our mission and the premise of our fundamental importance to all people. intertwined with that of our communities. AbbVie common stock is the NYSE. business. To be a leading health care To participate over the long term in the We can use our unique resources to AbbVie common stock is also listed on innovator, we must attract, retain and provision of health care, we must earn and support well-being, resilience and the Chicago Stock Exchange. support a diverse workforce and invest maintain the trust of patients, growth in the communities where we do in their efforts to develop medicines health care providers, regulators, business and help lay the foundation for Annual Meeting that bring value to patients. policymakers, and the public. broader community vitality. The Annual Meeting will be held on Friday, May 8, 2020, at 9 a.m. CT. Please see the proxy statement for information about how to attend the virtual Annual Meeting. 2019 Highlights Dividend Reinvestment Plan Using our expertise to improve health: Advancing our The AbbVie Dividend Reinvestment environmental Plan offers registered stockholders an ABBV-4083 sustainability priorities: opportunity to purchase additional shares, + commission-free, through automatic had a successful end of phase 89,000 dividend reinvestment and/or optional 1 meeting with the U.S. FDA. A U.S. patients received AbbVie cash investments. Interested persons may phase 2 study in patients with river medicines at no cost through the –16 % contact the transfer agent. blindness will be conducted by myAbbVie Assist patient assistance change in absolute carbon emissions our partner, Drugs for Neglected program, up from nearly 81,000 in (scopes 1 and 2) since 2015, more than Transfer Agent Diseases initiative, with drug 2018. This program is just one of the halfway to our 2025 target of 25%. EQ Shareowner Services product and pro bono technical ways AbbVie helps to expand access P.O. Box 64874 support from AbbVie. to our medicines. St Paul, MN 55164-0874 www.shareowneronline.com % 877.881.5970 24 651.450.4064 Attracting and retaining a diverse and inclusive workforce: of our purchased electricity came from renewable sources, up from 9% in 2016 % Ability at AbbVie and almost halfway to our 2025 target 48 We introduced a new Employee Resource of 50%. of management positions are Group (ERG) focused on people with held by women globally. disabilities and their caregivers. 1 0 Supporting long-term community strength: new environmental sustainability projects were approved through About AbbVie our SPARK innovation accelerator, AbbVie is a global, research and development-based 40,000 hours an incubator for employee-driven biopharmaceutical company committed to developing $13 MM sustainability proposals. spent by AbbVie volunteers in 50 raised, including AbbVie Foundation innovative advanced therapies for some of the world’s countries contributing to communities matching donations, for community most complex and critical conditions. The company’s during Week of Possibilities, our annual mission is to use its expertise, dedicated people and organizations during the 2019 U.S. / employee volunteer event. unique approach to innovation to markedly improve Puerto Rico Employee Giving Campaign. treatments across four primary therapeutic areas: immunology, oncology, virology and neuroscience. In more than 75 countries, AbbVie employees are For more on how we support the United Nations Sustainable Development Goals, working every day to advance health solutions for visit globalhealthprogress.org. people around the world. For more information about AbbVie, please visit us at www.abbvie.com. For more on our corporate responsibility efforts, visit abbvie.com/responsibility. Printed on recycled paper 3033_Cover.indd 2 3/18/20 6:36 PM 13NOV201221365766 Dear AbbVie Shareholder, As we start a new decade, AbbVie embarks on our eighth year as an independent company. What an amazing journey it has been—and a tremendously successful one. For patients, for our employees and for you—our investors. Record-setting performance and execution In 2019, we delivered our fifth consecutive year of double-digit earnings per share growth—the only company in our peer group to achieve that level of sustained performance. Adjusted earnings per share grew 13 percent to $8.94. That growth was driven by operating margin profile improvement while we continued to invest in our future. Operational revenue grew 2.7 percent to $33.3 billion—despite the entry of biosimilars to Humira in most international markets—and nearly 30 percent of our 2019 global sales were generated from products launched since our inception in 2013. A growing dividend is an enduring hallmark of AbbVie’s investment identity and in 2019, we increased our quarterly cash dividend 10 percent to $1.18 per share. Since our inception, we have increased our dividend by 195 percent and have been a member of the S&P Dividend Aristocrat Index since 2013. A robust pipeline Science and innovation have always been the cornerstones of our business. That’s why we’ve increased our annual R&D investment by roughly 80 percent since inception—our pipeline is truly the lifeblood of our business. Last year, we launched two new immunology therapies—SKYRIZI for psoriasis and RINVOQ for rheumatoid arthritis—to bring new and differentiated therapeutic options for patients and strengthen our leadership position in immunology. We’re very pleased with the reception these medicines have received from physicians and patients and believe they will be important long-term contributors to our growth. Our pipeline is robust—with more than 60 active clinical development programs. In 2020, we expect a number of late-stage data readouts and regulatory submissions for additional indications in immunology and oncology. Our early- and mid-stage pipeline continues to advance rapidly. We will also continue to augment with external innovation to develop next-generation therapies in critical areas of need. A new, more diversified AbbVie In June, we took a transformative step with the announcement to acquire Allergan. A leader in medical aesthetics, women’s health and eye care, Allergan enhances the scale and profitability of AbbVie’s growth platform and diversifies our revenue base with nearly $50 billion in global sales between the two companies. The combined organization will produce significant cashflow that will immediately enable AbbVie to simultaneously support continued dividend growth, long-term investment across our pipeline and debt reduction. This is an exciting step that positions our company extremely well for the long-term. A committed partner for patients and communities At AbbVie, we are focused on doing all that we can to have a remarkable impact on people’s lives. We are committed to helping patients in many ways to access and benefit from their therapies. In 2019, we enhanced our patient assistance program, My AbbVie Assist, which provides AbbVie medicines free of charge to ensure that patients can access our medicines. We did this by lowering the eligibility criteria, so more patients experiencing financial hardships can qualify for assistance and expanding the number of medications covered by our program. As a result, approximately 89,000 patients received AbbVie medicines at no cost. We also have a number of other ways to financially assist patients, such as our co-pay assistance program. This program provides co-pay support for AbbVie medicines to more than 97 percent of patients covered by commercial insurance programs, with 98 percent of those patients paying less than $5 a month for their medicine. Additionally, our company, our employees and our community partners spend hours and millions of dollars to support communities, strengthen K-12 education, help families thrive and much more. Last year, AbbVie volunteers contributed more than 68,000 hours making an impact across their local communities. A sustainable business As a global biopharmaceutical company, we are thoughtful about how our business decisions affect our patients, employees, contractors, the public and the environment. As we pursue long-term sustainable growth, our corporate responsibility framework guides our priorities, decisions and behaviors. We are committed to using our deep expertise to improve health, operate an ethical and sustainable business, and help build stronger communities. We care deeply about the environment and safety of our people. We have reduced our absolute carbon dioxide emissions by more than 16 percent, which is more than halfway toward our target of a 25 percent reduction and we have made great progress against our 2025 environmental goals.