Slide 1: Teleflex Incorporated Second Quarter 2015 Earnings Conference Call
1 TELEFLEX INCORPORATED SECOND QUARTER 2015 EARNINGS CONFERENCE CALL 1 Exhibit 99.2
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 available by dialing 888-286-8010 or for international calls, 617- 801-6888, pass code number 52181612 2
Slide 3: Introductions
Introductions Benson Smith Chairman, President and CEO Liam Kelly Executive Vice President and COO 3 Jake Elguicze Treasurer and Vice President of Investor Relations Thomas Powell Executive Vice President and CFO
Slide 4: Forward-Looking Statements/Non-GAAP Financial Measures
Forward-Looking Statements/Non-GAAP Financial Measures This presentation and our discussion contain forward-looking information and statements including, but not limited to, our the expected timing for product launches; forecasted 2015 constant currency revenue growth, adjusted gross and operating m
Slide 5: Executive Summary
EXECUTIVE SUMM. Teleflex:
Slide 6: Executive Summary
Executive Summary Second quarter revenue of $452.1 million • Down 3.4% vs. prior year period on an as-reported basis • Up 4.7% vs. prior year period on a constant currency basis Adjusted EPS of $1.42, down 6.0% vs. prior year period • Adjusted earnings per share reflects unfavorable impact from fore
Slide 7: Second Quarter Product Line and Geographic Revenue Review
7 SECOND QUARTER PRODUCT LINE AND GEOGRAPHIC REVENUE REVIEW 7
Slide 8: Second Quarter Highlights
Second Quarter Highlights Second quarter 2015 constant currency revenue growth of 4.7% • Sales volume of existing products contribute 215 bps of constant currency growth • Acquisitions and distributor conversions contribute 114 bps of constant currency revenue growth • Sales volume of new products c
Slide 9: Segment Revenue Review Q2'15
Segment Revenue Review Q2’15 Vascular N.A.: $81.2 million, up 5.6% Anesthesia N.A.: $45.6 million, up 0.2% Surgical N.A.: $40.5 million, up 7.8% EMEA: $129.1 million, up 1.7% Asia: $62.1 million, up 9.4% OEM: $37.9 million, up 7.5% All Other: $55.7 million, up 6.0% Note: Increases and decreases in r
Slide 10: Group Purchasing Organization and IDN Review
Group Purchasing Organization and IDN Review Group Purchasing Organization Update • 2 new agreements • 4 renewed agreements IDN Update • 2 new agreements • 2 renewed agreements 10 Track record of expansion of contractual agreements continues in Q2’15
Slide 11: Second Quarter – Product Regulatory Approvals & Peer Review Studies
11 SECOND QUARTER – PRODUCT REGULATORY APPROVALS & PEER REVIEW STUDIES 11
Slide 12: ARROW Endurance Extended Dwell Peripheral Catheter System
ARROW Endurance™ Extended Dwell Peripheral Catheter System is a single use peripheral catheter system intended for short-term dwell use (up to 29 days) to permit delivery of infusion therapies, pressure monitoring, high pressure injection, and withdrawal of blood. The insertion device consists of an
Slide 13: ARROW Central Venous Catheter with ARROWg+ard Blue Technology
Peer-reviewed retrospective study further documented the ability of the Company’s ARROW® Central Venous Catheter with ARROWg+ard® Blue Technology to prevent catheter-related bloodstream infections, therefore reducing their occurrence and the direct costs associated with treating those infections, ev
Slide 14: LMA Protector Airway
Second generation Laryngeal Mask Airway All parts with mucosal contact are made of silicone material for increased anatomical compliance, single use product Flexible, but fixed-curve, tube allows ease of insertion and anatomical conformity Patented dual gastric drainage channel and pharyngeal chambe
Slide 15: Percuvance Percutaneous Surgical System
Percuvance™ Percutaneous Surgical System is intended to manipulate tissue and includes components that introduce a variety of instrument configurations into the abdominal cavity and requires a smaller incision site than traditional laparoscopic surgery. It offers a reusable handle that is compatible
Slide 16: Acquisition Update
ACQUISITION UPDATE Teleflex:
Slide 17: Acquisition Update: N. Stenning & Co. Pty. Ltd.
Acquisition Update Acquired Assets of N. Stenning & Co. Pty. Ltd. • N. Stenning & Co. Pty. Ltd. was a distributor of Teleflex surgical products under the Pilling and Weck brands for nearly 35 years • Acquisition enables direct sales and distribution of additional Teleflex products in Australia and p
Slide 18: Acquisition Update: AutoFuser Distribution Rights
Acquisition Update Acquired Distribution Rights to AutoFuser® Range of Disposable Pain Pump Products • Acquired exclusive North American distribution rights to the AutoFuser® and AutoFuser® with AutoSelector® range of disposable pain control pumps from Ace Medical US. In connection with this transac
Slide 19: Second Quarter 2015 Financial Review
19 SECOND QUARTER 2015 FINANCIAL REVIEW 19
Slide 20: Financial Results
Financial Results Revenue of $452.1 million • Down 3.4% vs. prior year period on an as-reported basis • Up 4.7% vs. prior year period on a constant currency basis Adjusted gross margin of 52.3%, flat vs. prior year period • Product recalls / quality issues and foreign exchange impact adjusted gross
Slide 21: 2015 Financial Outlook
2015 FINANCIAL OUTLOOK Teleflex:
Slide 22: 2015 Financial Outlook
22 Constant currency revenue growth expected to be between 4% and 6% Adjusted Gross margin anticipated to be 53.0% to 54.0%, an improvement of 150bps to 250bps vs. prior year Adjusted operating margin expected to be between 22.0% and 22.5% Adjusted earnings per share anticipated to be between $6.10
Slide 23: Question & Answer
QUESTION & ANSWER Teleflex:
Slide 24: Appendices
APPENDICES Teleflex:
Slide 25: Appendix A – Reconciliation of Constant Currency Revenue Growth
Appendix A – Reconciliation of Constant Currency Revenue Growth Dollars in Millions 25 June 28, 2015 June 29, 2014 Constant Currency Currency Total Vascular North America 81.2$ 77.2$ 5.6% (0.5%) 5.1% Anesthesia North America 45.6 45.7 0.2% (0.5%) (0.3%) Surgical North America 40.5 38.0 7.8% (1.1%) 6
Slide 26: Appendix B – Reconciliation of Revenue Growth
Appendix B – Reconciliation of Revenue Growth Dollars in Millions 26 1: amount is comprised of incremental price on existing products and the sale of new products of $3.4 million and $1.9 million, respectively, both of which are a result of the businesses acquired. % Basis Points Three Months Ended
Slide 27: Appendix C – Reconciliation of Adjusted Gross Profit and Margin
27 Appendix C – Reconciliation of Adjusted Gross Profit and Margin June 28, 2015 June 29, 2014 Teleflex gross profit as-reported 233,237$ 244,088$ Teleflex gross margin as-reported 51.6% 52.1% Losses, other charges and charge reversals (A) 3,103 880 Adjusted Teleflex gross profit 236,340$ 244,968$ A
Slide 28: Appendix D – Reconciliation of Adjusted Operating Profit and Margin
28 Appendix D – Reconciliation of Adjusted Operating Profit and Margin June 28, 2015 June 29, 2014 Teleflex income from continuing operations before interest and taxes 76,986$ 74,752$ Teleflex income from continuing operations before interest and taxes margin 17.0% 16.0% Restructuring and other impa
Slide 29: Appendix E – Reconciliation of Adjusted EPS, Q2 2015
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Quarter Ended – June 28, 2015 Dollars in millions, except per share data 29 Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interest exp
Slide 30: Appendix F – Reconciliation of Adjusted EPS, Q2 2014
Appendix F – Reconciliation of Adjusted EPS from Continuing Operations Quarter Ended – June 29, 2014 Dollars in millions, except per share data 30 Cost of goods sold Research and development expenses Restructuring and other impairment charges Interest expense, net Income taxes Net income (loss) attr
Slide 31: Appendix G – Reconciliation of Adjusted Tax Rate
31 Appendix G – Reconciliation of Adjusted Tax Rate Dollars in Thousands Three Months Ended June 28, 2015 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $50,479 $5,280 10.5% Restructuring and impairment charges 580 209 Losses, other char
Slide 32: Appendix H – Reconciliation of 2015 Constant Currency Revenue Growth Guidance
Appendix H – Reconciliation of 2015 Constant Currency Revenue Growth Guidance 32 Low High Forecasted GAAP Revenue Growth (2%) ─ Estimated impact of foreign currency fluctuations 6% 6% Forecasted Constant Currency Revenue Growth 4% 6%
Slide 33: Appendix I – Reconciliation of 2015 Adjusted Gross Margin Guidance
Appendix I – Reconciliation of 2015 Adjusted Gross Margin Guidance 33 Note: In 2015, losses, other charges and charge reversals relate to expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014. Low High GAAP Gross Margin 52.45% 53.35% Losses, other charg
Slide 34: Appendix J – Reconciliation of 2015 Adjusted Operating Margin Guidance
Appendix J – Reconciliation of 2015 Adjusted Operating Margin Guidance 34 Note: In 2015, losses, other charges and charge reversals include expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014; acquisition and integration costs, and charges related to
Slide 35: Appendix K – Reconciliation of 2015 Adjusted Earnings per Share Guidance
Appendix K – Reconciliation of 2015 Adjusted Earnings per Share Guidance 35 Low High Diluted earnings per share attributable to common shareholders $4.23 $4.38 Restructuring, impairment charges and special items, net of tax $0.80 $0.85 Intangible amortization expense, net of tax $0.90 $0.95 Amortiza