CMN – 20.42CMN – 20.42

Ashneil JainAshneil Jain

Theses PointsTheses Points

• Leader in a Growing Industry

• Well Balanced Portfolio of Products

• Potential for Tremendous Growth

Infection Prevention and ControlInfection Prevention and Control• Expanding Global Awareness and

Sensitivity to Infection Risk– Growing Market– H1N1, MRSA, C. Diff, Staff Infection awareness

• Leader in Infection Prevention & Control Niche Markets– Medical device reprocessing, water purification and

healthcare disposables– Well balanced portfolio of synergistic products sold

into numerous markets– Recession buffered products

Industry GrowthIndustry Growth

• Infections in Medical Facilities are a Rapidly Growing Problem– Annually, 2.3 Million People Acquire Infections in U.S.

Medical Facilities and 99,000 Die From Those Infections -- More than AIDS, Breast Cancer and Traffic Accidents Combined

– Globally, 50+% of ICU patients have infections associated with an increased risk of death

– Adds as much as $20 Billion in U.S. healthcare costs and $5.5 Billion in Insurance Costs

Balanced ProductsBalanced Products

• Advanced Medical Equipment

• Infection Prevention and Control

• Operational Segments– Water Purification and Filtration– Healthcare Disposables – Dialysis – Endoscope Reprocessing– Therapeutic Filtration– Specialty Packaging

FinancialsFinancials

• Range 20.06 - 20.44 • 52 week 12.33 - 21.85 • Open 20.40 • Vol / Avg. 0.00/116,000.00 • Mkt cap 343.58M • P/E 17.53 • Div/yield 0.05/0.49 • EPS 1.16 • Shares 16.83M • Beta 0.63 • Inst. own 63%

Potential for GrowthPotential for Growth• High-Margin Liquid Chemical Germicides (LCG)

– BIOSAFE antimicrobial coating technology – starting with face masks

– Major investment in new chemistry development capabilities in 2010 to accelerate

– New Product Introductions (NPI) in 2011 and beyond– New business leader GM and senior marketing executive

hired in March 2010– Identified and pursuing new liquid chemical germicides– Expanded uses of existing chemistry products across all

business segments– Novel developments in fogging, fish farms, well production– Environmentally “Green” product orientation

Potential for GrowthPotential for Growth

• Equipment and Disposables– Next generation water treatment equipment and

connectivity– Numerous high value therapeutic filter developments

underway– Now also obtaining distribution rights to final product

outside the USA– Higher technology endoscope reprocessing

equipment with new “single-shot” chemistry just launched worldwide, further developments underway

– Unique healthcare disposables such as the Sure-Check sterilization pouch

Potential for GrowthPotential for Growth• Alternative Channels

– Dedicated focus on corporate and government pandemic flu preparation

– One of only a few large U.S. manufacturers of FDA-cleared face masks

– Expanded hospital penetration with differentiated products and/or acquisition

– Specialized consumer markets – test marketing underway– Expand franchise internationally and raise current 18% of

sales– Good growth in Asia– Substantial increased sales and marketing investments in

base business

Potential for GrowthPotential for Growth

• Utilize Strong Balance Sheet– Proven ability to integrate, leverage and grow

acquired businesses– Thirteen acquisitions in past six years have

reshaped Cantel– Focus on healthcare disposables and water

purification– Pursue cross-divisional chemistry and

specialty training opportunities– Add to international or hospital channels

Socially Responsible InvestingSocially Responsible Investing

• Preventing infection in hospitals, industry itself is socially responsible, saving lives

• Going Green in the future– Moving away from landfill disposables

towards recycling– New chemical developments are

environmentally friendly

Theses PointsTheses Points

• Leader in a Growing Industry

• Well Balanced Portfolio of Products

• Potential for Tremendous Growth

Price to Buy/SellPrice to Buy/Sell

• Looking at this stock for the long term: 6-8 months

• Buy: $19.50 (can go higher or lower)

• Sell: $27.00 (subject to change)