Teleflex Incorporated. Company Overview NYSE: TFX

Transcription

1 Teleflex Incorporated Company Overview NYSE: TFX

2 Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, long-term goals and objectives of building on a strong operating platform, generating above-market-average revenue growth, capturing market share in key product areas and expanding gross and operating margins; expectations that our product pipeline in 2013 will be robust, that new product sales will contribute approximately 1% to 1.5% of 2013 revenue growth and that newly introduced products are expected to contribute positively to margins in 2013 and beyond; our expectation that current and future footprint rationalizations will improve operating margins in 2014 and 2015; our anticipated international product release of the Arrow VPS in Q1 2013; our expectation that our acquisition of LMA International N.V. and affiliates will be accretive to our 2013 adjusted earnings per share; 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. The following slides reflect continuing operations. 2

3 Agenda Changing Medical Device Marketplace Key Elements of Strategic Growth Plan Long-Term Goals and Objectives Focus on Innovation Margin Improvement Investment Acquisition Approach Why Teleflex Will Win? 3 3

4 Changing Medical Device Marketplace Two competing forces are changing the medical device industry as we once knew it Increased Utilization Innovation Vs. Cost Pressures It is becoming more complex for device companies to succeed 4

5 Teleflex Today Vascular Access Surgical Specialty Cardiac Care Anesthesia / OEM Markets Respiratory CVC PICC Arterial Lines Catheter Positioning Ultrasound Ligation Systems Closure Devices Laparoscopic Ports General & Specialty Instruments CV Sutures Foley Catheters Intermittent Catheters Dialysis Catheters PTA Balloons Intra Aortic Balloon Pumps IAB Catheters Laryngeal Masks Epidural Peripheral Nerve Block ET Tube Ventilation Management Specialty Sutures Catheter Fabrication Performance Fibers ~$375 million ~$291 million ~$260 million ~$79 million ~$406 million ~$140 million Note: Figures represent 2012 revenues per Form 10K. 5

6 Teleflex Today Vascular Access Surgical Specialty Cardiac Care Anesthesia / OEM Markets Respiratory CRBSI Occlusion Thrombosis Needle stick accuracy Catheter positioning Arterial cannulation SSI Scarring/ cosmesis Accidental puncture DVT Foreign body left behind UTI Encrustation Strictures Lubricity PAD leading to limb ischemia Amputation A/V fistula clotting ECG/AP signal acquisition Arrhythmias Needle stick accuracy Catheter positioning Nerve damage Time to block Catheter placement accuracy Surface modifications Lubricity Micro extrusions Materials specialization 6

7 Teleflex Today 15% 51% 34% United States EMEA Asia, Latin America and Canada Well positioned geographically Note: Amounts shown represent percentages of total revenues for the twelve months ended December 31, 2012, per Form 10K. 7

8 Teleflex Today 5% 9% 19% 67% Critical Care Surgical Care Cardiac Care OEM Diversified not dependent upon any one single product or procedure Note: Amounts shown represent percentages of total revenues for the twelve months ended December 31, 2012, per Form 10K. 8

9 Key Elements of our Strategic Growth Plan Pricing close the gap between ourselves and competitors Innovation new product introductions and line extensions Rationalization reduce facility footprint Investments key geographic, capital and R&D initiatives Acquisitions build the portfolio Service value proposition 9

10 Long-term Goals and Objectives Build upon a strong operating platform Generate above-market-average revenue growth and capture market share in key product areas Expand gross and operating margins 10

11 Focus on Innovation: Key New Product Launches Softech Plus Nasal Cannula 4,5,6Fr IR PICC Weck EFx IR PICC w/ Chloragard Hotspur GPS Cath Weck AE5 EZ Blocker Arrow FlexBlock Continuous Peripheral Nerve Block Catheter 2012 AT 510(k) on PICC Pre-loaded PICC w/ ARROW VPS CE Mark Chronic Hemodialysis Trans-Radial Arrow FlexTip Plus Multi-Port Epidural Catheter ISO-Gard Circuit Technology Weck Vista Reposable Obturator Weck Vista Balloon Expansion Weck Vista Optical Trocar CE Mark PICC & VPS Anesthesia/Respiratory Vascular Access Surgical International 11

12 Focus on Innovation Robust product pipeline in 2013 Expectation that new product sales contribute ~ 1.0% to 1.5% of 2013 revenue growth Mix of newly introduced products expected to contribute positively to margins in 2013 and beyond 12

13 Margin Improvement Investments A key to future gross and operating margin expansion is to reduce operational footprint, while balancing additional investments North American distribution center, Mount Holly, N.J. manufacturing, France distribution center consolidation announcements in 2012 are the first steps Additional footprint rationalization planned for the future Current and future footprint rationalization announcements expected to improve operating margin s in 2014 and

14 Margin Improvement Investments Limit the addition of commercial expenses to higher-growth geographies 1. China 2. Brazil Targeted information technology capital expenditure initiatives 1. Reduce future headcount through common processes Manage additional expenses associated with internal and external research and development initiatives holistically 14

15 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 Difficult for competitors to follow 15

16 ARROW VPS Adoption of ARROW VPS in U.S. market continues CE Mark certification received on VPS International product release in Q

17 Semprus Biosciences (Sustain technology) Proteins, RBCs & Bacteria Protective Water Layer Semprus Sustain Polymer Medical Device Surface Semprus Sustain Technology Approximately 1 µm (1/100 th the Width of a Human Hair) Human Hair (~100 µm) 17

18 Hotspur Technologies 18

19 Weck EFx Endo Fascial Closure System Endo Fascial Closure System designed for: Reproducible, uniform closure across patient anatomy Minimized risk of needle-stick injury Facilitates unassisted technique More than 750 clinical cases have been performed with the device in the United States Innovation of the Year - 19

20 EZ-Blocker TM Acquired single-use catheter product line during 2 nd quarter of 2012 Patented bronchial blocker for lung isolation and one-lung ventilation Addition to Rusch Airway portfolio Unique bifurcated distal end CE Mark approval obtained in Europe 510(k) approval September

21 LMA International N.V. and affiliates Global market leader in laryngeal masks Provides access to key clinical U.S. and international call points Further strengthens Group Purchasing Organization relationships Transaction closed on October 23, 2012 Expected to be accretive to 2013 adjusted earnings per share 21

22 Service We want to be the partner of choice for all customers Significant improvement made during last two years 1. On-time deliveries to customers 2. Reduction of backorders Well-positioned with all major Group Purchasing Organizations and Integrated Delivery Networks 22

23 Why Will Teleflex Win? Opportunity to generate above-market revenue growth rates 1. Not dependent upon any one product or geography 2. Not overly impacted by elective procedure downturns 3. Established, global distribution network 4. Near-term pricing opportunities 5. Mix of future new products Ability to improve profitability is within our control Our people! 23

24 Thank you for your attention 24