Cardiac Science — Merger or Acquisition (March 2005)
21 slides from Cardiac Science's merger presentation, March 2005
Slide 1: Cardiac Science and Quinton Cardiology
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Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “should
Slide 3: Merger Information
Merger Information Under the terms of the merger agreement, the parties have formed a new corporation, CSQ Holding Company and with two wholly-owned acquisition subsidiaries that will merge with and into Quinton Cardiology Systems, Inc and Cardiac Science, Inc. respectively. As part of the transacti
Slide 4: Strategic Merger
Strategic Merger • Combine Cardiac Science and Quinton Cardiology Systems • Provide leading cardiology devices in multiple markets • Achieve significant revenue growth and cost savings • Structure balance sheet to enhance flexibility and sustainability • Create medical technology growth company capa
Slide 5: Merger Highlights
Merger Highlights • Continued focus on the management of cardiac disease • Attractive blend of higher growth and more predictable revenue streams • Enhanced distribution access to U.S. medical and international markets • Complementary technology development and service/education activities • Estimat
Slide 6: Deal Points
Deal Points STRUCTURE • Exchange of stock with new corporate entity named Cardiac Science Corporation • 22.3 million shares will be issued and outstanding at close EXCHANGE RATIOS • Q shareholders to receive 0.77 share for each current share • CS shareholders to receive 0.10 share for each current s
Slide 7: Cardiac Science
Cardiac Science • Manufacturer and marketer of a complete line of automatic public-access (AEDs) and other defibrillators, supplies and services • AED market is significantly under penetrated. Annual demand of $275M in 2005 is expected to triple by 2010 • Hospital defibrillator market represents ove
Slide 8: Quinton Cardiology Systems
Quinton Cardiology Systems • Manufacturer and marketer of diagnostic cardiology devices, supplies and services • Large $1 billion plus annual demand in this market • Strong U.S. distribution, with 55-person sales organization covering hospitals and physician’s offices, and international distribution
Slide 9: New Company
New Company • Focused medical technology growth company with a broad range of non-invasive cardiology devices • Fast growing markets with $2 billion plus potential annual demand • Leading positions in multiple products – Automatic Defibrillators, Electrocardiographs, Stress Test Systems, Holter Moni
Slide 10: Locations
Locations Headquarters - Bothell, WA Manufacturing - Deerfield, WI and Shanghai, China Product Development – Lake Forest, CA International Sales – Manchester, UK and Copenhagen, Denmark 10
Slide 11: Heart disease: A significant problem
Heart disease: A significant problem FACTS • Estimated cost of treating heart disease is $226 billion, representing approximately 13% of domestic healthcare spending 1 • Over 64 million people in the U.S. alone have active or developing heart disease1 • Sudden Cardiac Arrest (SCA) is the #1 cause of
Slide 12: Large, Growing Markets
Large, Growing Markets Annual Demand approaching $2 billion* * Sources: Frost & Sullivan and management estimates 12
Slide 13: Broad Range of Devices
Broad Range of Devices AEDs Hospital Defibrillation Resting ECG Cardiology Mgmt M Cardiac Rehab Stress Testing Holter Monitoring 13
Slide 14: Strong Respected Brands
Strong Respected Brands • Quinton® and Burdick® brands represent over 100 years of combined leadership in cardiology • Powerheart® brand accounts for an estimated 25% of all AEDs purchased worldwide • Worldwide installed base together exceeds 150,000 systems 14
Slide 15: Innovative Technology
Innovative Technology • Software algorithms for analyzing the electrical activity of the heart are the basis for cardiology monitoring and defibrillator devices • Engineering teams have specific expertise in software development, data management, signal processing, electrical systems and high voltag
Slide 16: Distribution Partners
Distribution Partners Airgas. WaAHENRY SCHEIN® cofeorsra. MCKESSON Qe Empowering Healthcare (@) Fisher satety Ba NIHON KOHDEN | ey Puysicin Sates & Service, INC. lad A PSS/World Medical Company
Slide 17: Growth Strategy
Growth Strategy ORGANIC • Increase domestic market share for all products through innovation and defibrillator sales through enhanced access to the medical market • Expand diagnostic cardiology and defibrillator sales internationally • Exploit connectivity and data management opportunities • Leverag
Slide 18: Financial Guidance
Financial Guidance • Expected pro forma 2005 revenue $170 -180 million • Anticipated double-digit revenue growth • Immediately profitable and cash flow positive, excluding one-time merger related costs and integration expenses • Combined 2006 profits and cash flows expected to be higher than if oper
Slide 19: Some of our Customers
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Slide 20: Summary
Summary Merger creates a focused medical technology growth company with a broad range of non-invasive cardiology devices • Fast growing markets with $2 billion plus potential annual demand • Leading positions in multiple products • Global sales network for hospitals, physician’s offices and public a
Slide 21: www.cardiacscience.com www.quinton.com
www.cardiacscience.com www.quinton.com NASDAQ: DFIB NASDAQ: QUIN Rev 03/07/05