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TRANSCRIPT
Teleflex Incorporated Investor Presentation
November 2015
2 Important Information
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 (the “2014 Plan”) and the timing for realizing 2014 Plan-related savings; expectations with respect to the completion of actions under our 2015 restructuring initiatives (the “2015 Plan”) and the timing for realizing 2015 Plan-related savings; 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.
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.
Forward Looking Statements
Segment Information/Additional Notes
3 Our Company
• NYSE listed – TFX
• Global provider of medical technology
products that enhance clinical benefits,
improve patient and provider safety and
reduce procedure costs
• Serving healthcare providers worldwide
through a combination of our direct sales
force and distributors
• Employees: 12,000+ organized into regions,
divisions and global functions
• Leading market positions with established
global brands
• LTM 9/27/15 revenue of $1,801 million
Not dependent upon any one product, end-market or procedure
Business Overview Revenue by Market1
86%
6%
8%
Hospitals and Healthcare Providers
Home Care
Medical Device Manufacturers
1 = per 2014 Form 10K
4 Our Segments
Vascular North America
• Our vascular access products facilitate a variety of critical care
therapies, including the administration of intravenous
medications and other therapies and the measurement of blood
pressure and taking of blood samples through a single puncture
site
• We believe that our vascular product portfolio offers the opportunity
to reduce injuries to the healthcare provider, expedite placement
of a central venous catheter, reduce patient exposure to x-rays,
expedite infusion of medication and reduce the risk of microbial
colonization and thrombus accumulation on catheter surfaces
• For the twelve months ended September 27 2015, our Vascular
North America segment represented $327.0 million, or
approximately 18% of net revenues
18%
10%
9%
30%
13%
8%
12%
Vascular North America Anesthesia North America Surgical North America EMEA Asia OEM All Other
5 Our Segments
Anesthesia North America
• Our airway management products are designed to help
eliminate airway related complications and improve
procedural efficiencies for patients in surgical, critical care
and emergency settings
• Our pain management products are designed to provide
pain relief during a broad range of surgical and obstetric
procedures, thereby helping clinicians better manage each
patient‘s individual pain while reducing complications and
associated costs
• For the twelve months ended September 27, 2015, our Anesthesia
North America segment represented $186.4 million, or
approximately 10% of net revenues
Our anesthesia products include airway and pain management products
18%
10%
9%
30%
13%
8%
12%
Vascular North America Anesthesia North America
Surgical North America EMEA
Asia OEM
All Other
6 Our Segments
Surgical North America
• Our surgical products include:
• Ligation and closure products, including clips and sutures
used in a variety of surgical procedures
• Access ports used in minimally invasive surgical
procedures, including robotic surgery
• Fluid management products used for chest drainage
• Reusable hand-held instruments for general and specialty
surgical procedures
• For the twelve months ended September 27, 2015, our Surgical
North America segment represented $159.0 million, or
approximately 9% of net revenues
• Microlaparoscopic products designed to
enhance surgeons‘ ability to perform scarless
surgery while producing better outcomes
18%
10%
9%
30%
13%
8%
12%
Vascular North America Anesthesia North America
Surgical North America EMEA
Asia OEM
All Other
7 Our Segments
EMEA
• Our EMEA segment designs, manufactures and distributes medical
devices primarily used in critical care, surgical applications and
cardiac care
• For the twelve months ended September 27, 2015, our EMEA
segment represented $526.3 million, or approximately 30% of net
revenues
Asia
• Like our EMEA segment, our Asia segment designs, manufactures
and distributes medical devices primarily used in critical care,
surgical applications and cardiac care
• For the twelve months ended September 27, 2015, our Asia
segment represented $236.0 million, or approximately 13% of net
revenues
18%
10%
9%
30%
13%
8%
12%
Vascular North America Anesthesia North America
Surgical North America EMEA
Asia OEM All Other
18%
10%
9%
30%
13%
8%
12%
Vascular North America Anesthesia North America Surgical North America EMEA Asia OEM All Other
8 Our Segments
OEM
• Our OEM segment designs, manufactures and supplies devices
and instruments for other medical device manufacturers
• Provides custom-engineered extrusions, diagnostic and
interventional catheters, sheath / dilator sets and kits, sutures,
performance fibers, and bioresorbable resins and fibers
• For the twelve months ended September 27, 2015, our OEM
segment represented $146.6 million, or approximately 8% of net
revenues
18%
10%
9%
30%
13%
8%
12%
Vascular North America Anesthesia North America Surgical North America EMEA Asia OEM All Other
9 Our Strategy
Capitalize on Teleflex’s scope and size
Take advantage of unique Teleflex opportunities
Position Teleflex to succeed in the healthcare environment of the future
Increased utilization
Increased economic pressure
Footprint consolidation
Distributor to direct conversions
10 Continue To Achieve Consistent, Sustainable and Profitable Growth
11 Maintain Acute Focus on Research and Development
• Research and development initiatives are focused on developing new, innovative products for
existing and new therapeutic applications, as well as enhancements to, and line extensions
of, existing products
• Teleflex introduced 16 new products and line extensions during 2014 and 43 new products
and line extensions since 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
12 Acquisition Approach
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
13 Rationalization
2014 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
• Expect to be substantially complete by the end of 2017
• Currently expect to realize plan-related savings beginning in 2015
2015 Restructuring Initiatives
• Initiated programs associated with the reorganization of certain businesses and consolidation of certain facilities in North America
• Expect to be substantially complete by the end of 2017
• Currently expect to realize plan-related savings beginning in 2015
14 Key Investment Highlights
Well-positioned to take advantage of favorable industry dynamics
Diversified, global medical technology company
Leading market positions with established global brands
Diversified customer and supplier base
Strong cash flow generation and proven history of deleveraging
Experienced management team
THANK YOU
APPENDIX
17 September 27, 2015 LTM Revenue Data
Dollars in Thousands
2014 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: 1,801,197$
2014 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$ 327,045$ 18.16%
Anesthesia North America 183,909$ 43,252$ 45,730$ 47,203$ 45,449$ 45,579$ 47,628$ 186,380$ 10.35%
Surgical North America 150,121$ 35,231$ 37,969$ 36,127$ 38,059$ 40,520$ 39,591$ 158,964$ 8.83%
EMEA 593,065$ 150,245$ 154,670$ 141,146$ 129,282$ 129,132$ 120,854$ 526,272$ 29.22%
Asia 237,696$ 49,602$ 62,539$ 62,035$ 48,529$ 62,042$ 61,935$ 236,026$ 13.10%
OEM 143,966$ 33,182$ 36,610$ 39,174$ 34,715$ 37,918$ 38,959$ 146,592$ 8.14%
All Other 219,912$ 52,175$ 53,384$ 54,826$ 52,630$ 55,689$ 52,072$ 219,918$ 12.21%
Total 1,839,832$ 438,546$ 468,105$ 457,173$ 429,430$ 452,045$ 443,714$ 1,801,197$ 100.00%
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.