Teleflex Incorporated (NYSE: TFX) Jeffrey P. Black, Chairman and Chief Executive Officer Kevin K. Gordon, Executive Vice President and Chief

Transcription

1 Teleflex Incorporated (NYSE: TFX) Jeffrey P. Black, Chairman and Chief Executive Officer Kevin K. Gordon, Executive Vice President and Chief Financial Officer

2 Forward-Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, such matters as expected core revenue growth, synergies from acquisitions, operating margins and product deliveries; expectations with respect to currency; forecasts of earnings per share including special charges, special charges, earnings per share excluding special charges and adjusted operating cash flow; market trends, future business and financial performance; and other matters which inherently involve risks and uncertainties which could cause actual results to differ from those projected or implied in the forward looking statements. These risks and uncertainties are addressed in the Company s SEC filings including its most recent Form 10-K. This presentation includes certain non-gaap financial measures, which include operating margins before special charges; earnings per share excluding special charges; segment operating margins before special charges; adjusted segment operating margins; adjusted gross profit; adjusted operating expenses; operating income before special charges and (gain)/loss on sale; and income and diluted earnings per share, excluding restructuring & impairment charges, (gains)/losses and other charges and tax adjustment. These non-gaap measures exclude the impact of restructuring and impairment costs, gain or loss on the sale of assets, a tax payment related to gain on sale of Automotive & Industrial businesses, fair market value adjustments for inventory and acquisition integration costs. In addition, this presentation includes information regarding free cash flow, which reflects cash from operations minus capital expenditures and dividend payments. Reconciliation of these non-gaap measures to the most comparable GAAP measures is contained within this presentation. Segment operating profit is defined as a segment s revenues reduced by its materials, labor, and other product costs along with the segment s selling, engineering, and administrative expenses and minority interest. Unallocated corporate expenses, restructuring costs, gain or loss on the sale of assets, acquisition integration costs, fair market adjustments for inventory, interest income and expense and taxes on income are excluded from the measure. The following slides reflect continuing operations. 2

3 Teleflex Investment Highlights Revenue Trend $ Millions EPS Excluding Special Items $ per share $2,750 $4.50 $2,500 $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $1,691 $1,934 Over $2,400 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $2.67 $3.24 $3.90 to $4.00 $ Actual 2007 Actual 2008 Estimate $ Actual 2007 Actual 2008 Estimate Cash Flow from Operations $ Millions Summary Redefined portfolio to increase margins and reduce cyclicality $300 $200 $198 $283 Approx. $260 1 Leadership positions in key niche markets $1.5 billion med-tech business Industry-leading aerospace businesses Niche commercial businesses $100 Medical Segment to represent Over 60% of 2008E revenues Over 75% of 2008E segment operating profit $ Actual 2007 Actual 2008 Estimate Dividend yield 2.7% 31 consecutive years of increases 1 = exclusive of tax payments related to gain on sale recorded in discontinued operations in 2007

4 Teleflex Medical $1.5 billion medical technology business Over 80% of revenues from disposable medical products Major product focus areas: Infection control Patient / provider safety Less invasive access Established global distribution and direct sales network Revenues outside U.S. approaching 50% Strong market positions in vascular access, anesthesia and respiratory care Well established brands: 4

5 $1,500 Proven Track Record with Product Line Acquisitions Medical Segment Revenues % $1, % $1, % $ % $ % $ % $300 pre E Revenue Operating Profit % 10.0%

6 Broad Portfolio for Critical Care and Surgery Teleflex Medical Critical Care ~% of Teleflex Medical revenue Venous Access Specialty Catheters 62% General/ Regional Anesthesia 21% 11% 4% Urology Respiratory Surgical OEM Cardiac 2% Other Central Venous Access Arterial Airway Management Foley Catheters Humidification Ligation Access, and Procedural Devices Intra Aortic Balloon Pump Peripherally Inserted (PICC) Renal Access Peripheral Nerve Block Catheter Insertion Kits Oxygen Therapy Sutures Performance Fibers/Sutures Sheath Introducers Hemodialysis Epidural Intermittant Catheters Aerosol Therapy Instruments / Services Orthopedic Surgical Instrumentation Thrombectomy Drainage Non-invasive Ventalation Access Endourology Positive Airway Pressure Chest Drainage 6

7 Teleflex Medical Opportunity Revenue growth opportunities: Capitalize on global distribution Build on R&D expertise in antimicrobial technology and infection control process Expand new product R&D in venous access, regional anesthesia, respiratory and surgery Continue bolt-on acquisitions, alliances Synergies from Arrow acquisition: Pre-tax synergies up to $40 million in 2008 Run-rate annual pre-tax synergies ~$70 - $75 million by 2010 Cost synergies from distribution, sourcing, manufacturing and infrastructure consolidation 7

8 Capitalize on Global Distribution Sales in over 100 countries Major manufacturing centers in Czech Republic, Malaysia and Mexico Asia/Latin America operations in Japan, China and India Eastern Europe expand product offerings for direct sales channel Q3'07 YTD Medical Q3'08 YTD Medical Revenue by Region - $681M Revenue by Region - $1,126M $ Millions $ Millions $109 16% $118 11% $47 7% $273 40% $115 10% $491 43% $252 37% $402 36% North America EMEA Asia / Latin America OEM North America EMEA Asia / Latin America OEM 8 Note: Arrow acquisition completed in Q4 07

9 Hospital Acquired Infection Initiatives Estimated cost of $30 billion annually in U.S. alone Hospital infections have risen 36% over last two decades* As of October 2008, U.S. government will no longer reimburse for certain preventable hospital-acquired infections U.S. Hospital Acquired Infections Frequency, 2 Million Annually U.S. Hospital Acquired Infections Cost Estimate, $30 Billion 23% 32% 17% 14% 14% 16% 16% 30% 15% 23% UTI Urinary tract infection BSI Blood stream infection Pneumonia SSI Surgical site infection 9 Other *Source: CDC, PA Healthcare Cost Containment Council and management estimates

10 Expertise in Infection Control Arrow Maximal Barrier Precautions Tray Arrowg+ard Blue Antimicrobial CVC Since 1990 over 30 randomized controlled trials, meta-analyses and case control studies 10

11 Expand Product Offerings Vascular Access Right Catheter, Right Patient, Right Time Leading market share for CVC Pressure injectable CVC with Arrowg+ard Blue Plus and Maximal Barrier Kit Growing PICC product lines Pressure injectable 3L PICC/ 5CC PICC Triple lumen PICC available in custom kit configuration 11 Specialty catheters NextStep chronic hemodialysis catheter

12 Broad Product Range of Disposables - General and Regional Anesthesia Regional Anesthesia StimuCath/Peripheral Nerve Block Epidural Catheters Spinal Trays General Anesthesia/Airway Management Broad disposable airway management product line/tools 12

13 Diverse Portfolio Serving Niche Markets Aerospace Repair Services Joint venture with GE Aircraft for engine repair services Leading independent provider of cold section engine repairs Investment in technologies to increase mix of repairs versus replacement drives margin improvement Aerospace Cargo Systems Leading provider of on-board aircraft cargo handling systems First Boeing 767 special freighter in service First Airbus 330/340 systems shipped Aftermarket spare & repair sales near record levels Strong orders and deliveries of narrow-body systems Airbus 330/340 system deliveries accelerated in 2008 enhance core growth Awarded A350 XWB SFE status 13

14 Diverse Portfolio Serving Niche Markets Commercial Segment Leader in steering/controls for recreational marine Auxiliary power/alternative fuel systems Niche provider of rigging services and systems Strong brands, established positions Global presence, aftermarket focus Focus on fuel efficiency, ergonomics, safety 14

15 Summary Diversified company largely defined by our medical technology business Redefined portfolio to increase margins, reduce cyclicality and market risk Achievable goals and targets for integration activity Sound working capital management and cash flow generation Continued focus on reducing outstanding debt Capitalize on global presence, strong brands, established customer base and aftermarket or service opportunities 15

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