Steris Plc (ireland) · NYSE:STE
Steris Plc (ireland) — STERIS — UBS Global Life Sciences Conference 2003
35 slides from Steris Plc (ireland)'s conference presentation, Sep 24, 2003
Slide 1: UBS Global Life Sciences Conference
UBS Global Life Sciences Conference September 23, 2003 Exhibit 99
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical information discussed, today’s presentation includes forward-looking statements that involve risks and uncertainties. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. Some of th
Slide 3: Presentation Outline
Presentation Outline Overview of STERIS Investment Considerations Strategic Direction Outlook and Financial Targets
Slide 4: STERIS Overview
STERIS Overview
Slide 5: STERIS's Path to Growth
STERIS’s Path to Growth 1987 Start up STERIS 2000 STERIS Today Leader in Technologies to Control Infection and Contamination Positioned For Growth INITIAL GROWTH REORGANIZATION STERIS 1995 ACQUISITIONS
Slide 6: STERIS Today
STERIS Today Leader in infection prevention equipment and related products Restructured in April 2003 to a market-focused business organization Three new reporting segments: Healthcare, Life Sciences and STERIS Isomedix Services Combination of acquisitions and internal manufacturing changes contribu
Slide 7: The Mission of STERIS Corporation
The Mission of STERIS Corporation To provide a healthier today and a safer tomorrow through knowledgeable people and innovative infection prevention, decontamination and health science technologies, products and services.
Slide 8: Sales by Business Segment
72% 20% 8% Sales by Business Segment Fiscal Year Ended March 31, 2003 (Dollars in millions) HEALTHCARE ($697) LIFE SCIENCES ($195) STERIS ISOMEDIX SERVICES ($79)
Slide 9: Key Markets Served
Key Markets Served HEALTHCARE Surgical Support Sterile Processing Applied Infection Control LIFE SCIENCES Pharmaceutical Production Research Defense and Industrial STERIS ISOMEDIX SERVICES (CONTRACT STERILIZATION)
Slide 10: Investment Considerations
Investment Considerations
Slide 11: Investment Considerations
Investment Considerations A technology leader Diversified and recurring revenue stream Leading market positions Experienced and credible management team Strong financial and operating platform Improving market dynamics
Slide 12: A Technology Leader
A Technology Leader Make STERIS a leader Steam Sterilization EtO Sterilization Peracetic Acid Sterilization Surface Cleaning Chemistries Skin Care Washing Systems VHP Sterilization Broad based technologies… Delivered through capital equipment chemistries and services…
Slide 13: Diversified and Recurring Revenue Stream
Diversified and Recurring Revenue Stream Capital equipment drives… and Services… Consumables… 52% of fiscal 2003 revenues were higher margin, recurring consumables and services STERIS has the unique ability to offer a custom solution for a variety of customers, industries and geographies
Slide 14: Leading Market Positions
Leading Market Positions Leading supplier of sterilization and surgical support products to U.S. healthcare facilities Leading position in contract sterilization for medical technology manufacturers and other industries Leading supplier of equipment and chemistries to biopharmaceutical companies for
Slide 15: Management Team
Management Team 75% of management new within the last three years All come from larger organizations All have a proven ability to execute
Slide 16: A Strong Financial and Operating Platform
A Strong Financial and Operating Platform Consistent revenue and earnings growth Low level of debt Strong free cash flow Efficient operations
Slide 17: Net Quarterly Revenues
Net Quarterly Revenues dollars in millions
Slide 18: Quarterly Diluted Earnings Per Share
Quarterly Diluted Earnings Per Share * * A charge in the fourth quarter of fiscal 2001 resulted in a loss of $0.24 per share
Slide 19: Quarterly Long-Term Debt-to-Capital
Quarterly Long-Term Debt-to-Capital percentage FY 2001 FY 2002 FY 2003 ‘04
Slide 20: Strong Cash Flow
Strong Cash Flow Cash From Operations and Capital Spending (In millions) Cash Priorities: Fund growth through acquisitions Modest share buy backs to offset dilutive impact of options Cash Uses in Q1 FY’04: $39.7 million in acquisitions $14.1 million in share buy back
Slide 21: Improving Market Dynamics
Improving Market Dynamics Aging population is driving demand for healthcare services and pharmaceuticals Increased spending by hospitals is leading to expansion and upgrading of facilities Ongoing investment in drug production is driving manufacturing capacity and research facilities Global awarenes
Slide 22: Base Healthcare Market Growth
Base Healthcare Market Growth “Boomers” continue to increase demand for acute care procedures driving sterilization cycle growth and hospital census U.S. Hospital capacity gaps drive robust construction spend, particularly in surgical and critical care Sources: F.W. Dodge, The Outlook for Healthcare
Slide 23: Life Sciences Base Market Growth
Age Grouping Drug Expenditures $ per patient/year Pharma R&D Investment $ Billions Pharma Manufacturing Equipment Investment $ Billions Projected pharma capital investment continues at 10% CAGR Source : EFPIA, Pharma, LEK, US Census , Demographics will drive end user demand Biopharmaceutical technol
Slide 24: Strategic Direction
Strategic Direction
Slide 25: Sources of Growth and Earnings Power
EXTERNAL INTERNAL Sources of Growth Earnings Power Improving market dynamics and growing awareness of the need for infection control Strategic Actions to Drive Growth and Financials
Slide 26: Our Growth Strategy
Our Growth Strategy Capitalize on installed base Leverage our channel Introduce new technologies Adapt our technologies Expand internationally Enhance our revenue stream by continuing to diversify by product, service, market and geography
Slide 27: Capitalize on Installed Base
Capitalize on Installed Base Large revenue opportunity in our own installed base Capture consumable opportunity Aggressively grow service New capital equipment products will have an associated proprietary consumable
Slide 28: Leverage Our Channel in Healthcare
Leverage Our Channel in Healthcare Presence in every U.S. hospital Sales force of 250 people Service force of 1,000 New products, alliances, acquisitions
Slide 29: Introduce New Technologies
Introduce New Technologies R&D spending to approximate $32 million in fiscal 2004 Focused new product development effort Areas of focus include projects for new industries and new sterilization technologies VHP technology advancement into new product uses Prion Decontamination Segmented sterile proc
Slide 30: Adapt Our Technologies
Adapt Our Technologies CURRENT Exploring new applications related to Anthrax contamination Joint research on defense applications for biological and chemical warfare Joint research in space applications FUTURE POSSIBILITIES Transportation Hotel and building decontamination Food and beverage packagin
Slide 31: International Expansion Opportunities
International Expansion Opportunities First Quarter 2004, including Hamo Acquisition Market size is equivalent to U.S. Focused on key European markets Acquisitions to play strategic role Leading-edge technologies REVENUE MIX BY GEOGRAPHY United States 77% International 23%
Slide 32: Outlook/Financial Targets
Outlook/Financial Targets
Slide 33: Financial Targets
Financial Targets Average Annual Growth Rates Current demand trends, new product initiatives, and geographical expansion opportunities should grow core businesses organically over next two years Revenue growth of 10% Earnings growth of 15%
Slide 34: Summary
Summary A technology leader with strong market positions Diversified and recurring revenue stream Improving market dynamics Financial flexibility Management team that can execute Bright future
Slide 35: UBS Global Life Sciences Conference
UBS Global Life Sciences Conference September 23, 2003