Convatec Group Plc · LSE:CTEC
Convatec — H1 2025 Earnings Presentation
32 slides from Convatec's earnings presentation, Jul 29, 2025
Slide 1: Delivering broad-based revenue growth, margin expansion and double-digit EPS growth
29 July 2025 Delivering broad-based revenue growth, margin expansion and double-digit EPS growth Interim results for the six months ended 30 June 2025 1
Slide 2: Karim Bitar, Jonny Mason
Karim Bitar Jonny Mason Chief Executive Officer Chief Financial Officer 2
Slide 3: Disclaimer
Disclaimer 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 do
Slide 4: Strong H1 performance; delivering on track
Strong H1 performance; delivering on track Broad-based organic revenue growth Further operating margin expansion Second year of double-digit EPS growth New product launches progressing well On track to deliver 2025 and medium-term guidance 4
Slide 5: Resilient business model driving sustainable growth
Resilient business model driving sustainable growth • Structurally growing markets Chronic care • Strong market leadership positions with high recurring revenues focus • Expect to grow consistently ahead of the market Differentiated • Focusing on differentiated products, service and solutions • Inno
Slide 6: FISBE strategy is delivering
FISBE strategy is delivering Organic revenue Investment Operating margin1 EPS1 growth Average CAGR Average 2021-24 c.$220m p.a. 6.0% +120bps p.a. 6% Capex and R&D Excl. InnovaMatrix® expansion CAGR Annualised 6.8% +130bps 19% H1 25 c.$245m Excl. InnovaMatrix® growth Capex and R&D2 YoY Strongest-ever
Slide 7: Financial review H1 25
Financial review H1 25 7
Slide 8: H1 25: strong financial performance
H1 25: strong financial performance H1 25 H1 24 Organic revenue growth1 • Broad-based growth across all categories excluding InnovaMatrix® 2 +6.8% +5.4% • +6.0% including InnovaMatrix® • H1 25 21.3% (+140bps YoY in constant currency) Operating margin3 expansion +130 bps (30)bps • On track to deliver
Slide 9: Broad-based organic revenue growth
Broad-based organic revenue growth Organic1 4.3% 4.7% 6.7% 14.1% Group excl. IMX 6.8% Group 6.0% 5 (5) 28 (6) 16 15 14 1180 1113 H1 24 Advanced Ostomy Care Continence Care Infusion Care M&A FX InnovaMatrix ® H1 25 Wound Care excl. IMX 1. Organic revenue growth presents YoY growth at constant currenc
Slide 10: AWC: ConvaFoam building; InnovaMatrix soft; OC: continued strong Esteem Body launch
AWC: ConvaFoam building; InnovaMatrix soft OC: continued strong Esteem Body launch Organic growth1 7.3% 6.3% 8.7% 10.3% 6.7% 8.1% 2.1% • Strong growth in NA and GEM; EUR improved Advanced excl. IMX1 7.3% 6.3% 6.8% 5.1% 2.7% 5.7% 4.3% through H1 Wound Care 383 357 360 367 • Continued growth from Aqua
Slide 11: CC: growth in US, OUS and Convatec products; IC: further diversification
CC: growth in US, OUS and Convatec products IC: further diversification; H1 positive phasing Organic Continence growth1 4.5% 5.6% 7.6% 5.5% 8.2% 8.4% 6.7% • Growing share and volumes in the US Care • Convatec products grew faster than non- 243 258 259 Convatec; >55% of revenues 236 Total 206 220 221
Slide 12: Further operating margin expansion, up 130 bps YoY
Further operating margin1 expansion, up 130 bps YoY Gross margin +140 bps YoY +130 bps (60) bps YoY constant FX YoY Inflation moderating 21.4% 0.5% (0.1%) 21.3% +3.1% COGS (0.2%) 1.5% 0.4% (1.0%) 1.1% (1.1%) 20.0% IC and IMX mix broadly offsetting H1 24 Price Mix Operations COGS inflation COGS Opex
Slide 13: Second year of double-digit EPS growth
Second year of double-digit EPS1 growth 13% operating profit2 growth & lower net finance costs drives 19% EPS growth H1 H2 Full year H1 24 H1 25 H2 24 H2 25 FY 25 Operating profit2 $223m $252m +LDD% $263m +HSD% +LDD% Financing & other3 $(41)m $(35)m +DD% $(34)m Flat +MSD% Tax rate1 23.7% 24.0% Flat
Slide 14: Cash conversion similar to HY 24
Cash conversion similar to HY 24 On-track for ≥80% equity cash conversion in FY 25 12% growth YoY 60% 307 Operating 80 cash conversion1 69 (H1 24: 62%) 35% 8 Equity cash Leverage Normal timing and 150 37 conversion2 lower at strong 25 1.9x3 (H1 24: 41%) revenue 30 (H1 24: 2.3x) growth 58 123 123 26
Slide 15: On track to deliver FY 25 guidance
On track to deliver FY 25 guidance • Category guidance: Organic revenue • Unchanged AWC: MSD ex-IMX; OC: MSD; CC: M/HSD growth1 ex-InnovaMatrix® 2 5.5%-7.0% Unchanged • Unchanged: InnovaMatrix at least $75m • Upgraded: IC: DD (previously HSD) • +80 to +130bps margin expansion YoY, despite Operating
Slide 16: Strategic update
Strategic update 16
Slide 17: Convatec is well positioned to deliver double-digit CAGR in EPS and FCF to equity
Convatec is well positioned to deliver double-digit CAGR in EPS1 and FCF to equity2 Leading positions in attractive, growing markets Resilient business model driving broad-based growth FISBE strategy is delivering 1. Adjusted 17 2. As defined in the Financial Review
Slide 18: Resilient business model delivers broad-based growth
Resilient business model delivers broad-based growth $1,176m $1,180m $1,086m $1,113m $1,046m 8.8% 6.0% Group $984m $986m 7.8% 6.6% revenue 6.6% 15.1% 14.1% 5.7% 4.6% 7.3% 10.0% 7.5% IC 13.2% 5.3% 8.4% 6.7% 5.5% 8.2% 7.6% CC 4.5% 5.6% 5.7% 4.7% 3.1% 5.4% 4.9% 1.2% 2.2% OC 5.3%1 2.7%1 5.7%1 4.3%1 6.3%
Slide 19: Delivering growth through reimbursement dynamics
Delivering growth through reimbursement dynamics AWC OC CC IC 2021-24 CAGR1 c.8% c.4% c.7% c.10% Adding value for • ConvaNiox : • Access higher • Our portfolio of • Inset Guard patients, payors category creation reimbursement hydrophilic, Extended Wear; and healthcare opportunity in soft convexity c
Slide 20: CMS reimbursement dynamics
CMS reimbursement dynamics InnovaMatrix® Ostomy Care & Continence Care Proposals in • Local Coverage Determinations (LCDs) • Competitive Bidding Program (CBP) consultation • Skin substitutes price $125/cm2 Revenue potentially • c.7% revenue1 direct2 Medicare • c.3% Group revenue (FY 25) in scope • c
Slide 21: AWC: new product launches to accelerate growth
AWC: new product launches to accelerate growth Single-use Antimicrobials Foam Biologics1 negative pressure Category CAGR1 CAGR1 CAGR1 CAGR1 size $1.1bn c.6% $2.1bn c.6% $3.0bn c.6% $0.4bn c.10% Products • Continued AquacelTM • Continue to win clinical • Publish RWE & RCTs2 • Launch in 2026 growth ev
Slide 22: OC: Esteem Body building momentum
OC: Esteem BodyTM building momentum Convex products Flat products Accessories CAGR 1 Category Soft $0.5bn c.8% CAGR 1 CAGR1 size $1.3bn c.2% $0.6bn c.7% Rigid $0.7bn c.3% Products * Service • Gain share in soft convexity • Sustain positive momentum in GEM • Continued growth in refreshed Focus produc
Slide 23: CC: Develop US leadership, grow in Europe and GEM
CC: Develop US leadership, grow in Europe and GEM US Europe Global Emerging Markets $0.8bn 2 CAGR1 $1.2bn2 CAGR1 Category Compact $0.1bn c.7% Compact $0.6bn c.7% CAGR1 size $0.3bn c.5% Standard $0.4bn c.4% Standard $0.4bn c.4% Products Service • Build on large customer base • Grow customers for prod
Slide 24: IC: Pump adoption accelerating
IC: Pump adoption accelerating Pumps c.6% CAGR ‘20-’23 People with Users of intensive Increased insulin pump diabetes insulin treatment Multiple 11% Daily 94% penetration opportunity c.350m c.10% (35m) Injection 0% Pump penetration (%) Durable 6.4 CAGR ‘20-’23 ‘23-’29 5.8 6.1 pumps (%) 5.1 5.4 Innov
Slide 25: Conclusion
Conclusion 25
Slide 26: Summary and outlook
Summary and outlook Resilient business model • Leading positions in chronic care markets underpinned by structural volume growth • Delivering broad-based growth across categories, geographies and products • Differentiated products and services; strongest-ever new product pipeline Strong first half d
Slide 27: Questions
& 27
Slide 28: Appendix
Appendix 28
Slide 29: Innovate – strong and growing pipeline
Innovate – strong and growing pipeline 2022-2024 2025 2026 2027 InnovaMatrix® US Outside US 780G MioAdvance Extended Wear Globally ConvaFoamTM US Europe Global Emerging Markets Infusion set for Beta Bionics iLet pump US AbbVie Parkinson’s Japan Europe US GentleCathTM Air for Women 2.0 Europe & US Gl
Slide 30: Group P&L - H1 / H2 split
1. Reported revenue and organic revenue YoY growth 2. Adjusted operating profit, margin and YoY growth Group P&L - H1 / H2 split 3. Net interest and adjusted other non-operating income 4. Adjusted tax charge and tax rate 5. Adjusted and diluted EPS in US dollar cents, and YoY growth 2023 2024 2025 I
Slide 31: Adjusting items
Adjusting items Adjusting items will reduce substantially in 2027 as spin-off amortisation completes Included in reported PBT Cash impact ($m) Commentary on reported PBT items H1 24 H1 25 H1 24 H1 25 Fundamental • Transformation costs 1.4 0.9 5.8 3.8 restructuring • Legal fees M&A 5.0 8.1 1.4 1.3 •
Slide 32: Strong delivery of our FISBE strategy
Strong delivery of our FISBE strategy Focus Innovate Simplify Build Execute 8 launches >90% 2022-24 130 bps Clinical 40 bps chronic care & YoY improvement in Investing in RCT and YoY pricing 8 launches RWE generation2 improvement recurring revenue operating margin 1 2025-27 Network New lines & Sales