Patrick J. Sullivan Chief Executive Officer. March 5, 2018 Investor Presentation

Transcription

1 Patrick J. Sullivan Chief Executive Officer March 5, 2018 Investor Presentation

2 Forward Looking Statement This presentation may contain forward-looking statements concerning Insulet's expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects on Insulet. There can be no assurance that future developments affecting Insulet will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond its control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, and other risks and uncertainties described in its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 22, 2018 in the section entitled "Risk Factors," and in its other filings from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of its assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Insulet undertakes no obligation to publicly update or revise any forward-looking statements Insulet Corporation, Omnipod, the Omnipod logo, Dash, Omnipod DISPLAY, Horizon, Podder and Omnipod VIEW are trademarks or registered trademarks of Insulet Corporation. All rights reserved. All other trademarks are the property of their respective owners. The use of third party trademarks does not constitute an endorsement or imply a relationship or other affiliation. 2

3 Insulet Driving Dramatic Growth and Just Getting Started Targets Revenue $185M $464M $1B 20%+ Revenue CAGR Gross Margin 48% 60% ~70% Operating Above-market Profitability $(26.7)M $(4.8)M 1 profitability GM% up 2000 bps Significant Opportunity Sizable, under-penetrated market Product Platform Highly differentiated, providing convenience, compliance and control Proven Performance Above-market returns by experienced team focused on growth, quality and cost 1. Expect to be EBIT positive in

4 Omnipod Dramatically Reduces the Burden of Diabetes Care Fewer Injections 80% of the Market Opportunity (Current Target) Fewer Components 20% of the Market Opportunity vs. vs. Omnipod: 1 MDI 2 : 14+ Injections Required Per Pod (Average of 4.5/day) 1 Omnipod System Conventional Insulin Pump 1. Insulet internal data 2. MDI = Multiple Daily Injections 4

5 DASH Simplicity through Mobile Technology User Phone Caregiver Phone CGM integration with CGM/Pod ios widget Data with ios Widgets Omnipod DISPLAY App Omnipod VIEW App Simple touchscreen PDM interface Connectivity Integrated insulin and CGM views Secondary display and caregiver apps 5

6 Digital Product Pipeline Drives Increased Adoption DASH U-500 U-200 Horizon Digital/Mobile Platform 5x Insulin Capacity Addresses Type 2 2x Insulin Capacity Addresses Type 2 Automated Glucose Control CGM 6

7 Expanding Access - Medicare and Medicaid Reimbursement Omnipod is Now Covered under the Medicare Part D Prescription Drug Program Significant increase in patient access and incremental addressable market of ~450,000 Medicare and Medicaid coverage provides access pathway to additional one-third of the U.S. market Pharmacy channel access benefits patients, physicians and payors Improved patient experience Broader and easier access through the pharmacy Financial benefits to Insulet begin in

8 Going Direct in Europe Drives Incredible Value Beginning July 1, 2018: Commercial Focus 50% in average selling price from current pricing to EU distributor New Product Introductions Improved Financials 400 bps in gross margin Accretive immediately 1 Partnerships Geographic Expansion 1. Excluding one-time costs 8

9 Manufacturing Operations - A Competitive Advantage 2017 Dramatically improved performance Operational excellence Capital investment Sourcing improvements Began building U.S. manufacturing facility and equipment 2019 First U.S. line operational in Q1 providing redundancy and expanded capacity Introduce highly-automated U.S. manufacturing Potential future expansion to support global growth 9

10 2018 Guidance 1 Exciting Growth Trajectory Revenue Growth of 21-25% Full Year 2018 expectation of $560M - $580M (YoY growth of 21-25%) First Quarter 2018 expectation of $119M - 123M (YoY growth of 17-21%) Gross Margin 63-64% Expect Full Year 2018 to be up over 300 bps YoY Expect 1H 18 of 60-61% and 2H 18 of 64-65% Driven by continued operational improvements and assuming direct European operations on July 1, 2018 Operating Margin Driving to Profitability Expect Full Year positive operating margin in the low-single digit percentage range Expect 2H 18 to increase sequentially over 400 bps driven by direct European operations 1. As provided on Q4 17 earnings call on February 21,

11 2021 Targets High Growth with Significant Opportunities Ahead $1 Billion in Revenue (20%+ CAGR) Above-market growth Strong momentum across the business Growth on continued execution, new products and market access Approaching 70% Gross Margin Clear line of sight to a target approaching 70% Expansion principally from operations improvements and U.S. automated manufacturing Additional margin improvement from going direct in Europe beginning on July 1, 2018 Other commercial opportunities across product lines Above-Market Profitability Leveraging investments to deliver above-market returns Experienced and talented team driving performance High quality and reliability with lower costs 11