Slide 1: Strong and broad-based growth
30 July 2024 Strong and broad-based growth Interim results for six months ended 30 June 2024
Slide 2: Important notice
For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed before, during or after the Presentation meeting. This information, which does not purp
Slide 3: Hosts
Hosts Karim Bitar Jonny Mason Chief Executive Officer Chief Financial Officer convatec
Slide 4: Strong, broad-based organic revenue growth
Strong, broad-based organic revenue growth Operating profit margin expansion on track Growing earnings and free cash flow Stronger competitive position with pipeline delivering Confirming 2024 and medium-term guidance 4
Slide 5: Organic revenue growth and adjusted operating profit margin
Organic revenue growth Adjusted operating profit margin 26.0% 24.0% 23.4% 7.2% 5-7% 22.0% ≥21%* 20.2% 20.0% 19.4% 19.5% 5.6% 18.5% 5.3% 18.0% 17.7% 4.2% 16.0% 14.0% 2.3% 12.0% 0.2% 10.0% 2018 2019 2020 2021 2022 2023 2024E 2018 2019 2020 2021 2022 2023 2024E 5 * In constant currency
Slide 6: Financial Review H1'24
Financial Review H1’24 6
Slide 7: H1'24 financial results summary
+6.6% H1 23: 6.6% Strong, broad-based growth across all four categories (30) bps in actual currency +40 bps 20.7% vs 20.3% inflation higher in H1, lower in H2 flat 6.8₡ vs 6.8₡ +4.5% in CC; higher finance costs in H1, not in H2 $57m H1 23: $10m +$47m YoY improvement; H1 seasonality Maintaining stron
Slide 8: Group revenue bridge by category
1,200 Group Organic1 6.7% 4.9% 8.2% 7.3% 6.6% 14 (10) (5) ($m) 1,100 22 15 23 1,113 1,113 1,055 1,000 H1'23 Advanced Ostomy Continence Infusion Hospital Care FX H1'24 Wound Care Care Care (exited) Care (inc. FMS) 1. Organic growth presents period over period growth at constant currency, adjusted for
Slide 9: Advanced Wound Care and Ostomy Care H1'24
2000000.0% Organic 7.3% 6.3% 8.7% 10.3% 6.7% 0.0% growth1 350 -2000000.0% • Solid growth in Europe and GEM, expect -4000000.0% faster growth in second half Advanced • Double-digit growth in North America 250 338 357 360 Wound Care -6000000.0% Total 314 Sales $m 307 • Strong growth in InnovaMatrix® a
Slide 10: Continence Care and Infusion Care H1'24
Organic 4.5% 5.7% 7.6% 5.5% 8.2% 0.0% 250 growth 1 • US performance driven by growth in volume -200000.0% and price Continence -400000.0% • Increasing new patient numbers and high 243 Care 236 retention rates -600000.0% Total 220 221 206 Sales $m -800000.0% • Europe and GEM adding incremental growth
Slide 11: Adjusted operating profit margin
+40 bps -30 bps 11 * In constant currency
Slide 12: Operating profit, financing cost, tax and EPS
H1 H2 Full Year H1’23 H1’24 H2’23 H2’24 FY 24 Operating profit1 $214m $223m +LSD% $218m +DD% +DD% Financing cost1,2 $(34)m $(41)m -DD% $(42)m flat -MSD% Tax rate3 23% 24% flat 24% flat flat Net profit1 $139m $139m $135m flat +DD% +DD% Earnings per Share1,4 6.8₡ 6.8₡ 6.6₡ 1. Adjusted; see the Financi
Slide 13: Free cash flow to equity increased by $47m YoY
• Free cash flow to equity1 increased by $47m YoY • Cash profile is seasonal – on track for double-digit growth for FY’24 ($m) 13 1. As defined in the Financial Review
Slide 14: On track for organic growth of 5-7%
Unchanged from May trading update when it was Mid-high single digit reduced to reflect short-term uncertainty from draft LCD proposal Mid-single digit Unchanged Upgrading to high-single digit (from mid-high) given High-single digit increasing momentum High-single digit Unchanged On track for organic
Slide 15: 2024 margin, EPS and cash flow guidance
• Mix, price, productivity and operating leverage 1 ≥21.0% @ CC more than offsetting inflation • Inflation 3% to 5%, lower in H2 than H1 2 • Adj. net finance expense: upper half of $75-85m ≥10% • Adj. book tax rate: ~24% (cash ~18%) • Capex: $120-140m 3 ≥10% • Adjusting items similar to FY 2023 (~$2
Slide 16: Operating margin H2 drivers
24-26% 20.7%2 ≥21%2 Strong H2 growth Mix & Price Lower inflation in H2 Further simplification 1. Adjusted 2. 2024 in constant currency 16
Slide 17: Medium-term targets
Medium-term targets Opportunity Medium-term outcome Sustainable Expanding operating Potential M&A to Double-digit EPS2 and FCF top-line growth profit1 margin enhance growth to Equity3 CAGR 5-7% Strengthening organic growth Convatec via: Mid-20s AWC OC CC HSD % MSD % MSD % operating profit1 margin in
Slide 18: Strategy Update H1'24
Strategy Update H1’24 18
Slide 19: Focus, Innovate, Simplify, Build, Execute
Focus Innovate Simplify Build Execute Pricing Sales force 93% 8 new launches – Operations +50 bps Targeting chronic – recurring winning share productivity benefit to key accounts revenue accelerating gross margin ~65%2 NPS1 > 80 Generating strong G&A efficiency Market Access Continue to Customer cen
Slide 20: Revenue split and underlying conditions
Convatec H1 ‘24 revenue split Underlying conditions Chronic Cardiovascular disease 93% AWC Diabetes 7% Bowel & bladder cancer OC Crohn's disease Multiple sclerosis CC Spinal cord injuries Diabetes IC Parkinson’s 20
Slide 21: Category size, growth and market position
32% $7.0bn ~5% 6.7% #3 globally AWC OC 28% $3.0bn ~4% 4.9% #3 globally CC 22% $2.2bn ~4% 8.2% #1 in US IC 18% $1.6bn ~8% 7.3% #1 globally Source: Category size, growth rates and Convatec position based on aggregate of category estimates, internal analysis and publicly available sources, 21 including
Slide 22: New product launches 2023-2026
2023/2024 2025/2026 InnovaMatrix US Outside the US 780G MioAdvance Extended Wear Globally ConvaFoam US Europe GEM Infusion set for Beta Bionics iLet pump US AbbVie Parkinson’s Japan Europe US GentleCath Air for Women 2.0 Europe & US Infusion set for Tandem Mobi US Esteem Body Europe & US GEM Mitsubi
Slide 23: Flagship brands supported with clinical evidence
Flagship brands supported with clinical evidence Successful new product launches Randomised controlled trial demonstrated superiority1 75% Standard of care 56% Wound hygiene protocol RWE2 demonstrated 1. Complete healing at 12 weeks; Data on file- Clinical Study Report WC-22-435 2. Torkington-Stokes
Slide 24: InnovaMatrix placental extracellular matrix
• Innovative and proprietary mammalian placental extra cellular matrix for chronic, surgical & trauma wounds • Cleared by FDA October 2020 as a medical device - 510k process • Demonstrated “substantial equivalence” to a predicate device – 8 RCTs and covered on draft LCD • Approved for 15 indications
Slide 25: InnovaMatrix physician and patient usage
~ 2,000 physicians and nurses using in US ~ 10,000 patients treated in US “I think InnovaMatrix® AC is different from every other product I’ve used. What differentiates it is very important to me – it’s the decellularization, the reproducibility and consistency. In my experience it’s proven itself o
Slide 26: Two-year real world evidence study
44% of wounds 44% of wounds were Two-year retrospective real world evidence study were limb or life limb or life threatening % wounds healed threatening InnovaMatrix ~ 53% Strong clinical impact Standard of care < 40% 1. Data on file- Intellicure Analytics report 26 2. Fife CE, Eckert KA, Carter MJ.
Slide 27: Evidence and coverage for InnovaMatrix
Current Current 2026/2027 2026/2027 More studies completed and Real World Evidence (RWE) Publishing in H2 2024 published Evidence Reporting in 2026 - leverage Randomised Controlled Trial (RCT) Initiating in Q3 2024 – DFU & VLU with payors Hospital Making in-roads Expanded Coverage Outpatient • Medic
Slide 28: Esteem Body enhancing Ostomy growth
Driving growth through improved execution Esteem BodyTM enhancing growth Global launch well received - strong growth 7% 6% 5% 4% 3% 2% 1% 0% H1 '23 H1 '24 Segment growth Convatec growth Soft convex ~5% Convatec global convexity summit Accessories ~7% Two-piece Natura Body launching in 2026 28
Slide 29: Customer service and FeelClean Technology
Leading the way in customer service Proprietary hydrophilic FeelClean TechnologyTM Sustaining customer service Differentiated performance 180 Medical - Net Promoter Score >80 Needs improvement Good Favourable Excellent World class 1. compared to the leading PVP-coated hydrophilic catheters; Referenc
Slide 30: Continence Care US leadership and global expansion
Sustained US leadership Driving global expansion with new launches Vertically integrated solutions – high retention Gaining momentum in key European markets ~40% Share ~25% Share Majority of sales from hydrophilic catheters Expanding launch to US and GEM Hydrophilic: 60% Other: 40% Launching GC Air
Slide 31: Our vision and promise
Parkinson's disease patient story Our vision: Pioneering trusted medical solutions to improve the lives we touch Our promise: forever caring 4 convatec
Slide 32: Infusion Care diabetes and non-diabetes growth
Sustained leadership in diabetes Growth in non-diabetes Partner of choice for innovative pump launches Increasing contribution from pain management, immunoglobulin and Parkinson’s therapies Continued diversification of customer base Growing demand for AbbVie’s Parkinson’s therapy 32
Slide 33: Summary and outlook
• Strong organic revenue growth & operating margin expansion1 • Earnings and cash performance improving • Organic revenue growth of 5-7% (expected to be in upper half of range) • Operating profit margin1: ≥ 21.0%2 • Double-digit growth in EPS1 and Free Cash Flow to Equity3 • Strong competitive posit
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