Teleflex Incorporated · NYSE:TFX
Teleflex — 40th Annual J.P. Morgan Healthcare Conference 2022
35 slides from Teleflex's conference presentation, Jan 11, 2022
Slide 1: Teleflex Investor Presentation
Teleflex Investor Presentation 2022 J.P. Morgan Healthcare Conference 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and our discussion contain The forward-looking statements included in this forward-looking information and statements, which presentation should not be unduly relied upon. inherently involve risks and uncertainties that could These statements speak only a
Slide 3: Making a Difference
Making a Difference Teleflex products are used everyday: 24,000 2,000 In over 24,000 surgical procedures in the By Interventional Cardiologists, Radiologists, and United States Vascular Surgeons in over 2,000 patients who require vascular intervention 8,000 4,400 To care for more than 8,000 patients
Slide 4: Teleflex Today
Teleflex Today Our Purpose Our Reach Our Portfolio • We are a global provider of • ~14,000 employees1 globally • NYSE listed – TFX medical technologies • 100,000+ customers2 • 2020 revenue of $2.5 billion designed to improve the • Global HQ: Wayne, PA, USA • Leading market positions health and quali
Slide 5: Our Core Values
Our Core Values Entrepreneurial Spirit Make It Fun • Be creative, take risks, and show initiative • Be collaborative and friendly • Initiate change and innovation • Show appreciation • Take ownership and be accountable • Make your work place a better place Build Trust People • Be sincere and authent
Slide 6: A Meaningful Portfolio Evolution
A Meaningful Portfolio Evolution 2011 2015 2019 Total Revenue ~$1.5B ~$1.8B ~$2.6B Adjusted Gross Margin 47.6% 52.7% 58.1% Adjusted Operating Margin 19.0% 21.5% 25.8% Cash Flow From Operations ~$94M ~$303M ~$437M Adjusted EPS CAGR ~13%1 ~15%2 Key Portfolio Changes (Acquisitions) (Divestitures) since
Slide 7: Teleflex Drivers of Long-term Value Creation
Teleflex Drivers of Long-term Value Creation Durable revenue Increasing Strong cash Disciplined capital growth profile profitability flow generation deployment strategy Targeting durable revenue growth profile, with P&L leverage 7
Slide 8: Diversified Revenue Base
Diversified Revenue Base Geographic Segments Global Product Category 9% 14% Vascular Access 10% 26% Interventional 9% Americas Anesthesia $2.5 billion EMEA $2.5 billion in 58% in 2020 2020 Surgical Asia 11% 23% OEM 15% Interventional Urology 13% OEM 12% Other 8
Slide 9: Category Leadership
Category Leadership Specialty and Complex Comprehensive Vascular Access Catheters, Large Bore Femoral Arterial Access Site Closure Manual Clip Ligation and Surgical Instruments Emergency Medicine MIS treatment for BPH 9
Slide 10: Leveraging Global Infrastructure
Leveraging Global Infrastructure Strategies • Drive adoption of high margin products in new markets • Accelerate commercialization of acquired products • Realize margin expansion through ongoing restructuring initiatives • Improve global supply chain efficiency 10
Slide 11: Driving Utilization in Growth Product Categories
Driving Utilization in Growth Product Categories Current Portfolio Select Pipeline Vascular Interventional Urology Intraosseous Access Access The UroLift® The UroLift® EZ-IO® OnControl® Freeze Dried Weck® AutoEndo HOL Wattson® Intraosseous Vascular Powered PICCs Plasma M/L Clip Applier Temporary Pac
Slide 12: Track Record of Revenue Growth, 2011-2019
Track Record of Revenue Growth, 2011-2019 (in millions) $2,595 $2,550 $2,448 $2,350 $2,146 $2,150 $1,950 $1,868 $1,840 $1,810 $1,750 $1,696 $1,551 $1,550 $1,493 $1,350 $1,150 $950 $750 2011 2012 2013 2014 2015 2016 2017 2018 2019 12 1. Calculation based on GAAP reported revenue. Note: Bar chart depi
Slide 13: Track Record of Improving Profitability
Track Record of Improving Profitability Adjusted Gross Margin Adjusted Operating Margin 25.8% 58.1% 20.0% 51.5% 2014 2019 2014 2019 13 Note: Figures represent adjusted gross and operating margin. See Appendices for reconciliation of non-GAAP financial measures to the most comparable GAAP financial m
Slide 14: Strong Earnings Per Share and Cash Flow Growth
Strong Earnings Per Share and Cash Flow Growth Adjusted Earnings Per Share Cash Flow From Operations ~$437M $11.15 ~$290M $5.74 2014 2019 2014 2019 14 Note: See Appendices for reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures.
Slide 15: Capital Allocation Framework
Capital Allocation Framework Internal Investment Strategic M&A Cash to Shareholders • For high-ROI growth • Deployment of capital for • Maintain dividend as drivers and restructuring growth and margin primary vehicle for activities accretive acquisitions returning capital to shareholders 15
Slide 16: Disciplined M&A Strategy
Disciplined M&A Strategy Market Company Financial • Secular growth • Competitive market • Revenue growth • High barriers to entry position accretive • Long product life cycles • Strong brand/commercial • Accretive to margin channel profile • Consumable focus • EPS accretive • Clinical & economic • E
Slide 17: Strong Track Record of Disciplined M&A Execution
Strong Track Record of Disciplined M&A Execution Select Transactions • 80 deals closed1 Z-Medica NeoTract Vascular Solutions • Transaction value of $4.4 billion1 2020 2017 2017 Mini-Lap Essential Medical Technologies 2018 2014 HPC Medical High Performance Conductors Vidacare 2020 2013 17 1 From Janu
Slide 18: Key Product Updates
Key Product Updates UroLift® System Manta® Vascular Closure Device QuikClot® Control + • Japan reimbursement • Remain on track for • Cardiac study enrollment finalized significant salesforce completed expansion • 510(k) filing following • Progress in France and Brazil study analysis • MPFS conversio
Slide 19: Thank You
Teleflex Investor Presentation 2022 J.P. Morgan Healthcare Conference Thank You 19
Slide 20: Appendix I: Product Category Snapshots
Appendix I: Product Category Snapshots 20
Slide 21: Vascular $657.7m
Vascular We are focused on reducing vascular-related complications through world Revenue: class solutions designed to equally benefit clinicians and patients. $657.7m FY ‘20 Revenue Key Products: Arrow® ErgoPack® Complete Arrowg+ard Blue Advance® Arrow® Integrated Arrow® Endurance™ CVC System PICC a
Slide 22: Interventional $382.4m
Interventional We equip healthcare professionals with innovative technologies for the Revenue: diagnosis and treatment of coronary and peripheral vascular disease. Our vision is to be the interventionalist’s partner in pioneering category- defining innovations that enable tomorrow’s procedures. $382
Slide 23: Surgical $317.2m
Surgical We build on our trusted legacy to advance the surgical experience. Revenue: We deliver on our vision by innovating together to deliver reliable solutions that help improve the health and quality of people’s lives. $317.2m FY ‘20 Revenue Key Products: Fascial Closure Percutaneous Instruments
Slide 24: Anesthesia / Emergency Medicine $302.3m
Anesthesia / Emergency Medicine Improving the health and quality of people’s lives by empowering providers to Revenue: advance practice in Anesthesia and Emergency Medicine. $302.3m FY ‘20 Revenue Key Products: Rüsch® Single-Use LMA® Airways with Arrow ® EZ-IO® QuikClot® Laryngoscope Blades and Sili
Slide 25: Interventional Urology $290.0m
Interventional Urology The UroLift® System is a minimally invasive implant for treating Benign Revenue: Prostatic Hyperplasia (BPH). It offers rapid symptom relief and recovery with low risk of permanent side effects1; it can be performed as an outpatient procedure and in physicians’ offices under l
Slide 26: OEM $220.2m
OEM As a trusted co-development partner, we support industry leaders in the design Revenue: and development of medical devices with unparalleled expertise that improves speed, flexibility, and value. $220.2m FY ‘20 Revenue Key Products: Diagnostic and interventional catheters Extrusion Bioabsorbable
Slide 27: All Other $367.3m
All Other The All Other category represents a combination of our Respiratory and Revenue: Urology (other than Interventional Urology) product offerings. $367.3m FY ‘20 Revenue Key Products: Gibeck® Humid-Flo® HME Liquick X-tremeTM Rüsch® Brilliant Intermittent Catheters Balloon Catheter 27
Slide 28: Appendix II: GAAP to Non-GAAP Reconciliations
Appendix II: GAAP to Non-GAAP Reconciliations 28
Slide 29: Note on Non-GAAP Financial Measures
Note on Non-GAAP Financial Measures The presentation to which these appendices are attached, and the following appendices which reduced the potential economic dilution that otherwise would have occurred include, among other things, tables reconciling the following applicable non-GAAP upon conversion
Slide 30: Non-GAAP Adjustments
Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied with respect Amortization of debt discount on convertible notes. When we sold $400 million principal amount of to one or more of the non-GAAP financial measures that appear in the presentation to our
Slide 31: Appendix A – Reconciliation of Adjusted Gross Profit and Margin
Appendix A – Reconciliation of Adjusted Gross Profit and Margin Dollars in Thousands Twelve Months Ended 12/31/11 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 Gross profit as-reported $708,778 $942,428 $944,403 $996,200 $1,171,802 $1,302,816 $1,409,005 Gross margin as-reported 47.5% 51.2% 5
Slide 32: Appendix B – Reconciliation of Adjusted Operating Profit and Margin
Appendix B – Reconciliation of Adjusted Operating Profit and Margin Dollars in Thousands Twelve Months Ended 12/31/11 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 Income from continuing operations before interest, loss on $229,570 $284,862 $315,891 $319,453 $372,279 $321,704 $427,254 exting
Slide 33: Appendix C – Reconciliation of Adjusted Earnings per Share
Appendix C – Reconciliation of Adjusted Earnings per Share Twelve Months Ended 12/31/11 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 GAAP diluted earnings per share available to common shareholders $ 2.90 $ 4.10 $ 4.91 $ 4.98 $3.33 $4.20 $9.81 GAAP year-over-year growth 19.8% 1.4% -33.1% 26
Slide 34: Appendix D – Tickmarks
Appendix D – Tickmarks (A) Restructuring, restructuring related and impairment items – In 2014 and 2015, the majority of these matter, expenses associated with a franchise tax audit, and relabeling costs. Other items for the charges were related to facility consolidations. In 2016, these charges inc
Slide 35: Thank You
Thank You Veleflex:
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