Slide 1: Teleflex Incorporated Q1 2021 Earnings Conference Call
Teleflex Incorporated Q1 2021 Earnings Conference Call 1
Slide 2: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast are available online at www.teleflex.com (click on “Investors”) Telephone replay is available by dialing (800) 585-8367 or for international calls, (416) 621-4642, conference ID 6194708 2
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly Chairman, President and CEO Thomas Powell Executive VP and CFO Jake Elguicze Treasurer and VP, Investor Relations 3
Slide 4: Note on Forward-Looking Statements and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, our expectations with respect to the 2021 national direct-to- consumer campaign related to the UroLift® System; our expectations with respect to the commercialization of, and a de
Slide 5: Executive Overview
Executive Overview Liam Kelly Chairman, President and CEO 5
Slide 6: Q1'21 Highlights
Q1'21 Highlights • Q1'21 constant currency revenue growth showed Q4 Summary continued sequential improvement on a day-sales adjusted basis Q1 Performance Summary • Q1'21 adjusted gross and operating margins expanded significantly year-over-year • Q1'21 adjusted earnings per share increased 5.5% as c
Slide 7: Q1'21 Financial Results
Q1'21 Financial Results Revenue Highlights • Q1'21 as reported revenue increased 0.5% versus Q1'20 • Q1'21 constant currency revenue declined 2.6% versus Q1'20 • Q1'21 constant currency growth adjusted for two-fewer selling days was modestly positive versus Q1’20 Global Product Revenue Drivers1 • Va
Slide 8: Q1'21 Segment Revenue Review
Q1'21 Segment Revenue Review Reported Constant Dollars in Q1'21 Q1'20 Currency Revenue Currency Millions Revenue Revenue Impact Growth Growth Americas $375.5 $358.0 4.9% 0.2% 4.7% EMEA $141.2 $156.1 (9.5)% 7.4% (16.9)% Asia $63.7 $53.1 19.9% 9.6% 10.3% OEM $53.5 $63.4 (15.6)% 1.5% (17.1)% TOTAL $633
Slide 9: Q1'21 Global Product Category Revenue Review
Q1'21 Global Product Category Revenue Review Reported Constant Dollars in Q1'21 Q1'20 Currency Revenue Currency Millions Revenue Revenue Impact Growth Growth Vascular Access $164.0 $150.3 9.1% 3.3% 5.8% Interventional $96.2 $99.9 (3.8)% 2.6% (6.4)% Anesthesia $84.9 $75.7 12.1% 5.1% 7.0% Surgical $80
Slide 10: Clinical and Commercial Updates: UroLift System
Clinical and Commercial Updates Interventional Urology - UroLift® System KEY TAKEAWAYS Launched 2021 National DTC Campaign ◦ Investment expected to be slightly more than double the 2020 campaign amount ◦ Expect advertisements to be on air throughout most 2021 ◦ Builds upon successful 2020 campaign t
Slide 11: Clinical and Commercial Updates: Manta MARVEL Registry
Clinical and Commercial Updates Interventional - Manta® Vascular Closure Device KEY TAKEAWAYS MARVEL Registry ◦ Prospective real-world study of 500 patients who underwent transfemoral large bore percutaneous procedures in 10 hospitals across Europe and Canada ◦ Primary performance endpoint: 50 secon
Slide 12: Clinical and Commercial Updates: MANTA Meta-Analysis
Clinical and Commercial Updates Interventional - Manta® Vascular Closure Device KEY TAKEAWAYS MANTA Meta-Analysis ◦ Patient-level pooled analysis including data from 2 medical device approval studies (CE mark, SAFE) and 1 post-approval registry (MARVEL), with large bore procedures performed by 71 op
Slide 13: Financial Overview
Financial Overview Thomas Powell Executive VP and CFO 13
Slide 14: Q1'21 Financial Review
Q1'21 Financial Review Global revenue generation of $633.9 million • Revenue increased 0.5% vs. prior year period on an as-reported basis • Revenue decreased 2.6% vs. prior year period on a constant currency basis Gross margin performance • GAAP gross margin of 54.3%, up 140 bps vs. prior year perio
Slide 15: 2021 Financial Guidance Summary
2021 Financial Guidance Summary Slide Updated 2021 Guidance Initial 2021 Guidance Low High Low High GAAP Revenue Growth 10.5% 11.75% 10.0% 11.5% Impact of Foreign Exchange Rate Fluctuations 2.0% 2.0% 2.0% 2.0% Constant Currency Revenue Growth 8.5% 9.75% 8.0% 9.5% Adjusted Gross Margin 58.25% 59.25%
Slide 16: Key Takeaways
Key Takeaways ◦ Teleflex exceeded the externally provided first quarter 2021 revenue and adjusted earnings per share expectations provided in February ◦ Announced new restructuring program and remain on track to generate significant long term margin expansion ◦ Raised as reported and constant curren
Slide 17: Thank You
THANK YOU 17
Slide 18: Appendices
Appendices Veleflex
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation to which these appendices are attached and the following appendices include, among other things, tables reconciling the following applicable non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. Thi
Slide 20: Non-GAAP Adjustments
Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied with respect to one or more of the non-GAAP financial measures that appear in the presentation to which these appendices are attached: Restructuring, restructuring related and impairment items - Restr
Slide 21: Appendix A – Reconciliation of Adjusted Gross and Operating Margin, Income Tax and EPS
Appendix A – Reconciliation of Adjusted Gross and Operating Margin, Income Tax and EPS (Dollars in millions, except per share data) Three Months Ended March 28, 2021 Three Months Ended March 29, 2020 Income Income Diluted Diluted Gross Operating Before Income Tax Income Tax Gross Operating Before In
Slide 22: Appendix A tickmarks
Appendix A tickmarks A. Restructuring, restructuring related and impairment items – For the three months ended March 28, 2021, pre-tax restructuring charges were $8.0 million, pre-tax restructuring related charges were $6.6 million, and pre-tax impairment charges were $0.0 million. For the three mon
Slide 23: Appendix B – Restructuring and Similar Cost Savings Initiatives Summary
Appendix B – Restructuring and Similar Cost Savings Initiatives Summary 2021 Restructuring plan During the first quarter of 2021, we committed to a restructuring plan designed to streamline various business functions and consolidate manufacturing operations. We estimate that we will incur aggregate
Slide 24: Appendix B – Footnotes
Appendix B – Footnotes (1) Represents charges that are directly related to restructuring programs and principally constitute costs to transfer manufacturing operations to existing lower-cost locations, project management costs and accelerated depreciation, as well as a charge that is expected to be
Slide 25: Appendix C – Year-to-Date GPO and IDN Review
Appendix C – March 28, 2021 Year-to-Date GPO and IDN Review Group Purchasing Organization Update Q1’21 Renewed agreements 6 New agreements 1 Existing agreements lost 1 IDN Update Q1’21 Renewed agreements 13 New agreements 7 Existing agreements lost 0 25
Slide 26: Appendix D - 2021 Adj. Gross and Operating Margin Guidance Reconciliations
Appendix D - 2021 Adj. Gross and Operating Margin Guidance Reconciliations 2021 Guidance Low High Forecasted GAAP Gross Margin 53.95% 55.10% Estimated restructuring, restructuring related and impairment items 0.95% 0.90% Estimated acquisition, integration, and divestiture related items 0.15% 0.10% E
Slide 27: Appendix E – Reconciliation of 2021 Adjusted EPS Guidance
Appendix E – Reconciliation of 2021 Adjusted Earnings Per Share Guidance 27
Slide 28: Appendix F – Key Assumptions for 2021 Financial Guidance
Appendix F – Key Assumptions for 2021 Financial Guidance Outlook Includes: • Due to COVID-19 resurgences globally, we continue to expect modest disruption to continue during 1H, and expect marked improvement moving throughout 2021 • Q2 growth should be partly driven by relatively easy year-over-year