Slide 1: Joseph M. DeVivo, President and CEO, August 2014
Joseph M. DeVivo, President and CEO August 2014 AngioDynamics, the AngioDynamics logo and other trademarks displayed in this presentation are trademarks owned and used by AngioDynamics, Inc. © Copyright 2014 AngioDynamics, Inc. All rights reserved. *
Slide 2: Forward-Looking Statements
Forward-Looking Statements Notice Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics’ expected future financial position, results of operations,
Slide 3: Profile of AngioDynamics
Profile of AngioDynamics Corporate History Founded 1988 | IPO May 2004—ANGO (NASDAQ) Acquired Microsulis (2013) | Vortex Medical (2012) Navilyst (2012) | Oncobionic (2008) | RITA Medical (2007) Worldwide Presence Albany NY – HQ | 1,300 Employees | 7 Operating Locations Recognized globally as a leadi
Slide 4: Performance Update
Performance Update Novation BioFlo PICC & BioFlo Port Contract CFGs for VA & PV products made in Queensbury, N.Y. Celerity Agreement & first U.S. clearance BioFlo DuraMax chronic hemodialysis catheter U.S. clearance AngioVac expanded indication Howard Donnelly elected Chairman Opened Distribution Ce
Slide 5: Financial Snapshot
Financial Snapshot Peripheral Vascular 55% Vascular Access 30% Oncology/ Surgery 15% US 80% Int’l 20% As of Q4 FY14 * $365M FY15 Revenue Guidance Midpoint FISCAL 2004 49M NET SALES FISCAL 2014 354.5M NET SALES
Slide 6: Strategic Imperatives
Innovative Technology Develop innovative Technology that improves patient outcomes while reducing overall healthcare costs Operational Excellence Enhance our profitability by driving operation excellence across the entire organization Above Market Growth Focus our investments in product categories a
Slide 7: Three Global Businesses
Three Global Businesses Peripheral Vascular PV Fluid Management Thrombolytics Laser Vein Ablation Angiographic Catheters/Drainage Oncology/ Surgery O/S Thermal Ablation Non-Thermal Ablation Resection Vascular Access VA PICCs Ports Dialysis *
Slide 8: Oncology/Surgery, Vascular Access, Peripheral Vascular
Oncology/ Surgery O/S Thermal Ablation Non-Thermal Ablation Resection Vascular Access VA Peripheral Vascular PV Fluid Management Thrombolytics Laser Vein Ablation Angiographic Catheters/Drainage PICCs Ports Dialysis *
Slide 9: Peripheral Vascular
Peripheral Vascular PV Reinvigorate NAMIC Build Thrombus Management Grow Core Strategic Objectives Key Growth Drivers $1.6B Market Global Net Sales $ in millions FY14 Fluid Mgmt $79 Venous $55 Thrombus Mgmt. $14 Other Core Products $45 Total PV $193 Expand EVLT Adoption 12% Share *
Slide 10: Venous Thromboembolism Incidence
Additional: Annual Incidence Venous Thromboembolism (VTE) Incidence ~1 Million VTE Events per Year in US ~300,000 VTE Deaths per Year in US - #3 cause Heit JA, et al. Blood. 2005;106:267A. Murphy SL, et al. Deaths: Preliminary Data for 2010. National Vital Statistics Reports; 2012 Catheter/Lead RA 2
Slide 11: Disruptive VTE Technology
Disruptive VTE Technology Everyone remembers their first time Pioneering options in venous drainage TEE peered A CTE 4 tal tip a i>) angiodynamics
Slide 12: Disruptive VTE Technology
FDA cleared & CE Mark approved Attractive pricing & higher margins Scalable platform for next generation devices Disruptive VTE Technology ~900+ CASES TO DATE Newly expanded U.S. indication *
Slide 13: U.S. Auto Injectors: A Significant Opportunity
U.S. Auto Injectors: A Significant Opportunity ANGIO Mkt Share Expected CAGR >50% Contracting 20-25% Low Single Digit Growth 0% Double Digit Growth Automated (Interv. Cardiology) $40M Manual (Interv. Cardiology) $75M Manual (Periph. Vascular) $55M Source: Millennium Research Group reports; company a
Slide 14: NAMIC Duet—Next Generation API
NAMIC Duet—Next Generation API NAMIC Duet is expected to build on AngioDynamics' leading position in fluid management by creating economic and clinical value for facilities through its ability to dilute and reduce contrast to the patient. *
Slide 15: Leading Laser Vein Treatment
Leading Laser Vein Treatment 30M People in U.S. w/ varicose veins Large Underpenetrated Market Opportunity <2% Receive treatment 145,000+ VenaCure EVLT procedures in FY2013 ANGO has 28% share of Venous Ablation market and 65% share of the Laser Ablation market Installed base of 4,000 units WW, i
Slide 16: Leading Laser Vein Treatment
Leading Laser Vein Treatment NICE ruling establishes thermal ablation, including laser, as the standard of care for the treatment of varicose veins in the United Kingdom New CMS APC includes in-hospital endovenous RF and laser varicose vein ablations, increasing payment for laser by 9% while creatin
Slide 17: Oncology/Surgery
Peripheral Vascular PV Fluid Management Thrombolytics Laser Vein Ablation Angiographic Catheters/Drainage Oncology/ Surgery O/S Thermal Ablation Non-Thermal Ablation Resection Vascular Access VA PICCs Ports Dialysis *
Slide 18: Oncology/Surgery
Drive NanoKnife Adoption Increase Thermal Ablation Share Strategic Objectives Global Net Sales Invest in Clinical Development $225M Market 22% Share $ in millions FY14 Thermal Ablation $30 NanoKnife $14 Resection/Other $5 Total O/S $49 Oncology/ Surgery O/S Key Growth Drivers *
Slide 19: Expanding Leadership in Tissue Ablation
THERMAL NON-THERMAL “The US Nonvascular Interventional Radiology market with the fastest growth and greatest potential is the ablation device market” – MRG Nov. 2012 Expanding Leadership in Tissue Ablation AngioDynamics offers a full complement of tissue ablation products that provide clinicians max
Slide 20: Leading Microwave Ablation Technology
Leading Microwave Ablation Technology “Everything we wanted in a microwave device…” -Current AngioDynamics RFA Customer 2.45Ghz system for faster tissue penetration Single applicator Predictable volumes of coagulation Attractive pricing and gross margins †The liver coagulation results are from coagu
Slide 21: Building NanoKnife Clinical Data
Building NanoKnife Clinical Data 16 PATIENTS TO BE ENROLLED 1 STUDY SITE WORLDWIDE AngioDynamics Partners with Clinical Research Office of the Endourological Society (CROES) NanoKnife Safety and Efficacy Study A Single-Arm Study Focused on the Ablation of Prostate Cancer CROES STUDY FDA Grants Prost
Slide 22: Vascular Access
Vascular Access VA PICCs Ports Dialysis Peripheral Vascular PV Fluid Management Thrombolytics Laser Vein Ablation Angiographic Catheters/Drainage Oncology/ Surgery O/S Thermal Ablation Non-Thermal Ablation Resection *
Slide 23: Vascular Access: Penetrate & Convert
Penetrate & Convert Penetration of IDNs/GPOs Strategic Objectives Key Growth Drivers $1.0B Market Global Net Sales $ in millions FY14 PICCs $51 Ports $32 Dialysis $19 Other $4 Total VA $106 Grow Int’l from 10% to 25% of revenue Vascular Access VA Tip Location Clinical Data 11% Share *
Slide 24: PICC-Related UEDVT Unmet Opportunity
Estimated Cost Per Incident4 $11,957 PICC-Related UEDVT Incidence Rates2, 3 2.7M PICCs placed by nurses & Physicians in 20121 2Evans SR, Sharp JH, Lorraine LH, et al. CHEST 2010 ; 138; 803-810 1US MARKETS FOR VASCULAR ACCESS DEVICES 2012 - Millennium Research Group U.S. Cost of Hospital-Acquired DVT
Slide 25: Prospective Customer Evaluation of BioFlo
Hospital BioFlo PICC Placements DVTs DVT RATE 1 167 1 0.6% 2 533 6 1.1% 3 1251 7 0.6% BioFlo Technology *Data based on results presented at the Association for Vascular Access 27th Annual Scientific Meeting. Prospective Customer Evaluation of BioFlo* *
Slide 26: Celerity Tip Location Strategy
Celerity Tip Location Strategy Tip location, coupled with our innovative BioFlo technology, will improve our competitive position in the PICC market. Ease of use Use with existing ultrasound Three lead EKG-based platform Predictable and reliable confirmation 50% less cost vs. competitors Clinical ef
Slide 27: Expanding BioFlo Platform – Ports
Expanding BioFlo Platform – Ports Levitan, N et al. Rates of Initial and Recurrent Thromboembolic Disease Among Patients with Malignancy Versus Those Without Malignancy. Medicine: 1999: 78; 285-291. *
Slide 28: Expanding BioFlo Platform – Dialysis
Expanding BioFlo Platform – Dialysis Thrombotic occlusions can occur within 24 hours and are prevalent in up to 40 percent of chronic dialysis patients.1 [ ] 90% Less Thrombus Accumulation In vitro blood loop model test compared to non-coated conventional catheters based on platelet count.2 [ ] 83%
Slide 29: Product Portfolio: Fiscal 2013 Growth and Margin
Fluid Mgmt PICCs Other PV YoY Sales Growth EVLT Ports 0% 5% 10% 15% 20% 40% HARVEST FIX INVEST SCALE Microwave IRE RFA Resection Other VA Std GM% (10%) (5%) HIGH LOW FY 2013: Flat Sales; 50% GM *
Slide 30: Long-Term: 10% Sales Growth; 60% Gross Margin
Ports 0% 5% 10% 15% 20% +50% YoY Sales Growth 40% EVLT AngioVac Resection Other VA Other PV Fluid Mgmt Dialysis Microwave Std GM% PICCs RFA (10%) (5%) IRE Long-Term: 10% Sales Growth; 60% GM HIGH LOW *
Slide 31: Operational Excellence
Enterprise resource planning implementation Consolidation of N.Y. distribution center Consolidation of N.Y. manufacturing plants Supply Chain Optimization Product rationalization Lean Initiatives Operational Excellence $15-18M TO BE SAVED OVER THREE YEARS *
Slide 32: Fiscal 2014 Fourth Quarter Results
Q4 2014 (b) YOY Growth Adjusted EBITDA $14.7 7% Adjusted EPS $0.18 _ Fiscal 2014 Fourth Quarter Results Sales $ in millions, except per share amounts Q4 2014 (a) YOY Growth WW WW(excl. supply agreement) $94.1 $92.9 4% 5% Peripheral Vascular(c) Vascular Access $50.9 $28.3 6% 5% Onc/Surg $13.7 1% U.S.
Slide 33: Fiscal 2015 Guidance
Fiscal 2015 Guidance $ in millions, except per share amounts Adjusted Non-GAAP Q1 Adjusted Non-GAAP Full Year Sales $83 — $86 $362 — $368 EPS (a) $0.08 — $0.12 $0.64 — $0.70 Adjusted results exclude costs relating to acquisitions, debt financing, business restructuring, litigation, facility consolid
Slide 34: Investment Summary
Int’l growth & upside High growth products Optimized capital structure Optimized R&D team Investment Summary Strong talent pool Quality management Operational excellence Accelerated long-term growth & profitability *
Slide 35: Trademark Notice
AngioDynamics, the AngioDynamics logo and other trademarks displayed in this presentation are trademarks owned and used by AngioDynamics, Inc. © Copyright 2012 AngioDynamics, Inc. All rights reserved. *
Slide 36: Balance Sheet and Cash Flow
$ in millions May 31, 2014 May 31, 2013 Cash and investments $17.9 $24.0 Net working capital $80.0 $78.1 Total assets $800.2 $791.6 Total debt $142.7 $142.5 Total stockholders’ equity $537.9 $526.8 Balance Sheet and Cash Flow $ in millions, except per share amounts 12 months ended May 31, 2014 12 mo
Slide 37: Adjusted Income Statement
$ in millions, except per share amounts 12 months ended May 31, 2014 12 months ended May 31, 2013 Sales $354.5 $342.0 Gross Margin 50.8% 50.8% Operating Expenses $140.6 $130.2 Operating Income $39.4 $43.5 Operating Margin 11.1% 12.7% Net Income $20.6 $22.7 EPS $0.58 $0.64 EBITDA $52.2 $57.0 Adjusted