Teleflex Incorporated Investor Presentation J.P. Morgan 2016 Healthcare Conference

Transcription

1 Teleflex Incorporated Investor Presentation J.P. Morgan 2016 Healthcare Conference

2 Important Information 2 Forward Looking Statements This presentation and our discussion contain forward-looking information and statements, including, but not limited to, our financial goals with respect to revenue, gross profit and operating profit growth; our strategy with respect to increasing our market share; our strategy with respect to improving our operating efficiencies; expectations with respect to the completion of actions under our 2014 manufacturing footprint realignment plan and our 2015 restructuring initiatives; 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 statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including those risks and uncertainties discussed in our SEC filings, including our most recent Annual Report on Form 10-K. The forward-looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date made. Other than as required by applicable law, we do not intend, and do not assume any obligation, to update these forward-looking statements. Segment Information/Additional Notes Effective April 1, 2015, we realigned our operating segments in connection with the reorganization of certain of our businesses. Specifically, our Anesthesia/Respiratory North America operating segment was split into two operating segments, Anesthesia North America and Respiratory North America. Additionally, the businesses comprising our Specialty operating segment (which was not a reportable segment and, therefore, was included in the "All other" category in the Company's presentation of segment information) were transferred to the Anesthesia North America, Vascular North America and Respiratory North America operating segments. As a result of the operating segment changes described above, we currently have the following six reportable operating segments: Vascular North America, Anesthesia North America, Surgical North America, EMEA, Asia and OEM. In connection with our presentation of segment information, we will continue to present certain operating segments, including, among others, the Respiratory North America operating segment, in the All other category. All prior comparative periods have been restated to reflect these changes. This presentation reflects continuing operations.

3 Our Company 3 Business Overview Revenue by Market 1 NYSE listed TFX Developer, manufacturer, and seller of medical devices Serving healthcare providers worldwide Employees: ~12,000 Leading market positions LTM 9/27/15 revenue of $1.801 billion 8% 6% 86% Hospitals and Healthcare Providers Home Care Medical Device Manufacturers Not dependent upon any one product, end-market or procedure 1 = per 2014 Form 10K

4 Our Segments 4 Vascular North America 8% 12% 18% Administration of intravenous medications and other therapies Reduce injuries to the healthcare provider 13% 10% Expedite placement of a central venous catheter 9% Reduce patient exposure to x-rays Vascular North America Surgical North America Asia All Other 30% Anesthesia North America EMEA OEM Expedite infusion of medication Reduce the risk of microbial colonization and thrombus accumulation on catheter surfaces Revenue for LTM ending 09/27/15 $327.0 million (18%)

5 Our Segments 5 Anesthesia North America 12% 18% 8% 10% Airway management 13% 30% 9% Pain management Revenue for LTM ending 09/27/15 $186.4 million (10%) Vascular North America Surgical North America Asia All Other Anesthesia North America EMEA OEM

6 Our Segments 6 Surgical North America 12% 18% Ligation and closure products 8% 13% 10% 9% Access ports Reusable hand-held instruments 30% Fluid management Vascular North America Surgical North America Asia All Other Anesthesia North America EMEA OEM Revenue for LTM ending 09/27/15 $159.0 million (9%)

7 Our Segments 7 Surgical North America 8% 13% 12% 18% 10% 9% Microlaparoscopic products designed to enhance surgeons ability to perform scarless surgery while producing better outcomes 30% Vascular North America Surgical North America Asia All Other Anesthesia North America EMEA OEM MiniLap

8 Our Segments 8 EMEA 8% 13% 12% 18% 10% 9% Our EMEA segment designs, manufactures and distributes medical devices primarily used in critical care, surgical applications and cardiac care Revenue for LTM ending 09/27/15 $526.3 million (30%) 30% Vascular North America Surgical North America Asia All Other Anesthesia North America EMEA OEM Asia 13% 8% 12% 18% 10% Like our EMEA segment, our Asia segment designs, manufactures and distributes medical devices primarily used in critical care, surgical applications and cardiac care 9% Revenue for LTM ending 09/27/15 $236.0 million (13%) 30% Vascular North America Surgical North America Asia All Other Anesthesia North America EMEA OEM

9 Our Segments 9 OEM Custom-engineered extrusions 8% 12% 18% Sutures 13% 10% 9% Performance fibers Bioresorbable resins and fibers 30% Revenue for LTM ending 09/27/15 $146.6 million (8%) Vascular North America Surgical North America Asia All Other Anesthesia North America EMEA OEM

10 Our Strategy 10 Position Teleflex to succeed in the healthcare environment of the future Increased utilization Increased economic pressure Capitalize on Teleflex s scope and size Take advantage of unique Teleflex opportunities Footprint consolidation Distributor to direct conversions

11 Continue To Achieve Consistent, Sustainable and Profitable Growth 11

12 Maintain Acute Focus on Portfolio Enrichment 12 Products designed to meet the challenges of a changing healthcare environment Introduced 43 new products and line extensions in 2014 and 2013 Portfolio of existing products and pipeline of potential new products consist primarily of Class I and Class II devices, which require 510(k) clearance by the FDA for sale in the United States

13 Acquisition Approach 13 Fits into our existing strategic business unit franchises and call points Product provides a superior clinical benefit to existing alternatives Provides a cost benefit to a hospital Strong IP and patent protection Long product life cycles

14 Rationalization Manufacturing Footprint Realignment Plan Plan developed in response to continuing cost pressures in the healthcare industry and designed to enhance our competitive position and improve longer-term profitability Involves consolidation of operations and a related workforce reduction Plan execution remains on track Expect to be substantially complete by the end of Restructuring Initiatives Initiated programs associated with the reorganization of certain businesses and consolidation of certain facilities in North America Plan execution remains on track Expect to be substantially complete by the end of 2017

15 Key Investment Highlights 15 Diversified, global medical technology company Well-positioned to take advantage of favorable industry dynamics Leading market positions with established global brands Diversified customer and supplier base Strong cash flow generation and proven history of deleveraging Experienced management team

16 THANK YOU

17 APPENDIX

18 September 27, 2015 LTM Revenue Data Dollars in Thousands Revenue: $ 1,839,832 Less - Q1'14 Revenue: $ 438,546 Less - Q2'14 Revenue: $ 468,105 Less - Q3'14 Revenue: $ 457,173 Add - Q1'15 Revenue: $ 429,430 Add - Q2'15 Revenue: $ 452,045 Add - Q3'15 Revenue: $ 443,714 June 28, 2015 LTM Revenue: $ 1,801, Revenue Less: Q1'14 Revenue Less: Q2'14 Revenue Less: Q3'14 Revenue Add: Q1'15 Revenue Add: Q2'15 Revenue Add: Q3'15 Revenue September 27, 2015 LTM Revenue September 27, 2015 LTM Revenue - % Vascular North America $ 311,163 $ 74,859 $ 77,203 $ 76,662 $ 80,766 $ 81,165 $ 82,675 $ 327, % Anesthesia North America $ 183,909 $ 43,252 $ 45,730 $ 47,203 $ 45,449 $ 45,579 $ 47,628 $ 186, % Surgical North America $ 150,121 $ 35,231 $ 37,969 $ 36,127 $ 38,059 $ 40,520 $ 39,591 $ 158, % EMEA $ 593,065 $ 150,245 $ 154,670 $ 141,146 $ 129,282 $ 129,132 $ 120,854 $ 526, % Asia $ 237,696 $ 49,602 $ 62,539 $ 62,035 $ 48,529 $ 62,042 $ 61,935 $ 236, % OEM $ 143,966 $ 33,182 $ 36,610 $ 39,174 $ 34,715 $ 37,918 $ 38,959 $ 146, % All Other $ 219,912 $ 52,175 $ 53,384 $ 54,826 $ 52,630 $ 55,689 $ 52,072 $ 219, % Total $ 1,839,832 $ 438,546 $ 468,105 $ 457,173 $ 429,430 $ 452,045 $ 443,714 $ 1,801, % Source: Quarterly and Annual 2014 information per Form 8K filed on July 30, 2015; Quarterly 2015 information per Form 10Q filed on September 27, 2015.