Accendra Health, Inc. · NYSE:ACH
Accendra Health — Owens & Minor — UBS Global Healthcare Conference 2022
21 slides from Accendra Health's conference presentation, May 23, 2022
Slide 1: UBS Global Healthcare Conference May 23, 2022
1 Confidential & Proprietary to Owens & Minor, Inc. UBS Global Healthcare Conference May 23, 2022
Slide 2: Safe Harbor
2 Confidential & Proprietary to Owens & Minor, Inc. Safe Harbor This presentation is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC's Fair Disclosure Regulation. This presentation contains certain
Slide 3: Owens & Minor (OMI) – A Leading Healthcare Solutions Provider
3 Confidential & Proprietary to Owens & Minor, Inc. Owens & Minor (OMI) – A Leading Healthcare Solutions Provider A growth-focused, integrated healthcare solutions provider with broad medical distribution reach, proprietary products and services, and a leading home health business that empowers cust
Slide 4: Key Business Highlights
4 Confidential & Proprietary to Owens & Minor, Inc. Key Business Highlights Leading healthcare solutions company with competitive advantages in manufacturing, distribution and home health Apria acquisition expands OMI’s presence in the fast-growing direct to patient home health market, now accountin
Slide 5: How Our Businesses Work Together
5 Confidential & Proprietary to Owens & Minor, Inc. How Our Businesses Work Together Our Value Chain is a Key Differentiator RAW MATERIALS DESIGN MANUFACTURING DISTRIBUTION DELIVERY HOSPITAL/IDN HOME HEALTH CHRONIC CARE AT HOME P A T I E N T D I R E C T S E G M E N TP R O D U C T S & H E A L T H C A
Slide 6: OMI Is Vertically Integrated and Uniquely Positioned with a Scalable Value Chain
6 Confidential & Proprietary to Owens & Minor, Inc. OMI Is Vertically Integrated and Uniquely Positioned with a Scalable Value Chain Vertical Integration Creates Stability and Competitive Advantage DELIVERY DESIGN RAW MATERIALS MANUFACTURING DISTRIBUTION HOSPITAL / IDN HOME HEALTH Key Takeaways: • O
Slide 7: Americas-based manufacturing versus traditional peer distributor model
7 Confidential & Proprietary to Owens & Minor, Inc. HOSPITAL/IDN RAW MATERIALS NON-WOVEN FABRIC PRODUCTION DELIVERYDISTRIBUTION HOSPITAL/IDN Americas-based manufacturing ✓ OMI owned manufacturing capabilities minimizes cost increases to customers ✓ No contract manufacturing ✓ Reduces transportation
Slide 8: Patient Direct Growth Driven by Secular Trends
8 Confidential & Proprietary to Owens & Minor, Inc. Patient Direct Growth Driven by Secular Trends Market Trends ◼U.S. population aged 65+ is expected to increase nearly 50% between 2019 and 20401Aging population ◼Home healthcare increasingly sought out as an attractive, cost-effective and clinicall
Slide 9: Apria Expands Patient Direct Platform for Growth in Home Health
9 Confidential & Proprietary to Owens & Minor, Inc. Apria Expands Patient Direct Platform for Growth in Home Health Strategic Rationale • Expands our patient direct platform for growth with expanded geographic reach and payor relationships • Generates cross-selling opportunity to serve patients with
Slide 10: Byram and Halyard acquisitions have diversified the business
10 Confidential & Proprietary to Owens & Minor, Inc. Byram and Halyard acquisitions have diversified the business and strengthened OMI’s financial profile S&IP Business Acquired April 2018Acquired Aug 2017 A leading distributor of medical supplies focused on chronic conditions sold directly to patie
Slide 11: Diverse Revenue and Earnings Profile Covering Spectrum of Care
11 Confidential & Proprietary to Owens & Minor, Inc. Diverse Revenue and Earnings Profile Covering Spectrum of Care ~20% ~10% ~80% 1 Combined numbers are non-GAAP and reflect the summation of OMI plus Apria, for FY 2021. See slide 2 for more information regarding OMI and Apria Combined measures and
Slide 12: Strong FCF Profile Provides Ability to Significantly Reduce Debt
12 Confidential & Proprietary to Owens & Minor, Inc. Strong FCF Profile Provides Ability to Significantly Reduce Debt • Free Cash Flow2 has grown at a 36% CAGR under management team3 • Expecting to generate ~$400m of FCF in FY22 • Pro Forma TTM net leverage of 3.7x (post-Apria acquisition)4 • Capita
Slide 13: First Quarter 2022 Highlights
13 Confidential & Proprietary to Owens & Minor, Inc. First Quarter 2022 Highlights • Strong Q1 Performance • Momentum from record 2021 carried into Q1 • Revenue up in both segments year-over-year, including more than 25% revenue growth in Patient Direct • Sequential margin expansion vs Q4 2021 • 90
Slide 14: Our Commitment to ESG Means Doing Business the Right Way
14 Confidential & Proprietary to Owens & Minor, Inc. Our Commitment to ESG Means Doing Business the Right Way Driving Sustainable Value Through ESG Initiatives ✓ Reusable delivery totes ✓ Rechargeable battery systems ✓ Recycling programs ✓ Low energy lighting ✓ Motion-triggered lighting ✓ Insulated
Slide 15: Owens & Minor (OMI) – Investment Thesis
15 Confidential & Proprietary to Owens & Minor, Inc. Owens & Minor (OMI) – Investment Thesis 1 Vertical Integration Creates Stability and Competitive Advantage 5 Strong cash flow profile provides ability to significantly reduce debt over the next 18-24 months 4 Diverse revenue and earnings profile 2
Slide 16: Appendix
16 Confidential & Proprietary to Owens & Minor, Inc. Appendix
Slide 17: Use of Non-GAAP Measures
17 Confidential & Proprietary to Owens & Minor, Inc. Use of Non-GAAP Measures This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). In general, the measures exclude items and charges that (i) management does n
Slide 18: Pro Forma Adjusted EBITDA Reconciliation
18 Confidential & Proprietary to Owens & Minor, Inc. Pro Forma Adjusted EBITDA Reconciliation Certain totals in this appendix may not sum due to rounding $ in millions Trailing Twelve Months Ended Adjusted EBITDA (Adj. EBITDA) Reconciliation March 31, 2022 Net income, as reported (GAAP) $191.3 Incom
Slide 19: Net Debt Reconciliation
19 Confidential & Proprietary to Owens & Minor, Inc. Net Debt Reconciliation Certain totals in this appendix may not sum due to rounding $ in millions Net Debt Reconciliation March 31, 2022 Total Company Debt, as reported (GAAP) $2,643.5 Cash and cash equivalents (211.3) Net Debt $2,432.2
Slide 20: Free Cash Flow Reconciliation
20 Confidential & Proprietary to Owens & Minor, Inc. Free Cash Flow Reconciliation Certain totals in this appendix may not sum due to rounding $ in millions FYE FYE FYE FYE Free Cash Flow Reconciliation 2021 2020 2019 2018 Net income (loss), as reported (GAAP) $221.6 $29.9 ($62.4) ($437.0) Loss from
Slide 21: Definitions of Non-GAAP Reconciliation items
21 Confidential & Proprietary to Owens & Minor, Inc. Definitions of Non-GAAP Reconciliation items The following items have been excluded in our non-GAAP financial measures: Intangible amortization: Includes amortization of intangible assets established during purchase accounting for business combina
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