Slide 1: Fourth Quarter & Full Year 2012 Earnings Conference Call
1 TELEFLEX INCORPORATED FOURTH QUARTER & FULL YEAR 2012EARNINGS CONFERENCE CALL 1
Slide 2: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast available online at www.teleflex.com (click on "Investors")Telephone replay available by dialing 888-286-8010 or for international calls, 617- 801-6888, pass code number 10277897 2
Slide 3: Introductions
Introductions Benson SmithChairman, President and CEO Thomas PowellExecutive Vice President and CFO Jake ElguiczeTreasurer and Vice President of Investor Relations 3
Slide 4: Forward-Looking Statements/Additional Notes
Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, our expectations with respect to the future focus of the remaining businesses within our OEM division; forecasted 2013 constant currency
Slide 5: Fourth Quarter and Full Year 2012 Highlights
5 FOURTH QUARTER AND FULL YEAR 2012 HIGHLIGHTS 5
Slide 6: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Revenue of $419.0 million, up 5.1% constant currencyGross margin of 47.5%, up 50 bps vs. prior yearAdjusted operating margins of 15.6%, down 130 bps vs. prior year Adjusted EPS of $1.14, up 9% vs. prior year 6
Slide 7: Fourth Quarter Strategic Highlights: LMA Acquisition
Completed acquisition of LMA International N.V. and affiliatesTransaction closed on October 23, 2012Q4 revenue and adjusted earnings per share contribution of $24.4 million and $0.09Integration activities running slightly ahead of schedule Fourth Quarter Strategic Highlights 7
Slide 8: Fourth Quarter Strategic Highlights: Profitability Initiatives
Profitability improvement initiatives continuingAnnounced the transfer of the manufacturing of certain products from the United States, and Mexico, to the Czech RepublicAnnounced the closure of a distribution center in FranceCentralized North American Distribution Center fully functional; beginning
Slide 9: Fourth Quarter Strategic Highlights
Fourth Quarter Strategic Highlights Marketplace continues to accept pricing initiativesUp 126 bps versus prior yearSixth consecutive quarter of positive year-over-year pricingInvestment in research and development paying benefitsResearch & Development spending of 3.9% of revenueNewly introduced prod
Slide 10: Full Year Financial Highlights
Full Year Financial Highlights Revenue of $1.55 billion, up 6.8% constant currencyGross margin of 48.2%, up 80 bps vs. prior yearAdjusted operating margins of 16.2%, down 10 bps vs. prior year Adjusted EPS of $4.40, up 15% vs. prior year 10
Slide 11: Full Year Strategic Highlights
Full Year Strategic Highlights Price initiatives drove 124 bps of top-line growth in 2012Latin America up 366 bpsAsia Pacific up 276 bpsNorth America up 141 bpsEurope up 34 bpsInvested in product areas to drive future revenue growth and profitabilityResearch & development spending up 16%Newly introd
Slide 12: Full Year Strategic Highlights
Full Year Strategic Highlights Solidified foundation for future growth through GPO & IDN agreements24 new agreements (9 GPO; 15 IDN)25 agreement renewals (17 GPO; 8 IDN)Began the process of facility rationalizationNorth American Distribution Center consolidationMount Holly, NJ manufacturing facility
Slide 13: Full Year Strategic Highlights
Full Year Strategic Highlights Completed mix of market-share enhancing and technology acquisitionsLMA International N.V. and affiliatesSemprus BioSciencesHotspur TechnologiesAxiom Technology Partners, LLCEZ - BlockerDivested OEM Orthopedics businessRemainder of OEM division will focus on expanding i
Slide 14: Full Year Strategic Highlights
Full Year Strategic Highlights Delivered on commitments to investorsAchieved 6.8% constant currency revenue growth versus initial outlook of 4% to 6%Delivered adjusted EPS at upper-end of initially provided guidance range despite headwinds 14
Slide 15: Fourth Quarter 2012 Financial Review
15 FOURTH QUARTER 2012 FINANCIAL REVIEW 15
Slide 16: Fourth Quarter - Financial Results
Fourth Quarter - Financial Results Revenue of $419.0 millionUp 4.0% as-reported; up 5.1% constant currencyGross margin of 47.5%Up 50 bps vs. prior yearResearch & development spending up 26% from prior yearAdjusted operating margin of 15.6%Down 130 bps vs. prior yearAdjusted EPS of $1.14, up 9% vs. p
Slide 17: Fourth Quarter Product & Geographic Revenue Review
17 FOURTH QUARTER PRODUCT & GEOGRAPHIC REVENUE REVIEW 17
Slide 18: Product Revenue Review
Product Revenue Review Critical Care Surgical Care Cardiac Care OEM 0.68 0.18 0.05 0.09 Q4'12 Q4'11 Constant Currency Revenue Commentary Critical Care Surgical Care Cardiac Care OEM 0.67 0.18 0.05 0.1 Critical Care: $286.1 million, up 8.1% Surgical Care: $76.3 million, up 4.8%Anesthesia - up 35.7%Ur
Slide 19: Segment Revenue Review
Segment Revenue Review Americas EMEA Asia OEM 0.48 0.31 0.12 0.09 Q4'12 Q4'11 Constant Currency Revenue Commentary Americas EMEA Asia OEM 0.46 0.33 0.11 0.1 Americas: $200.1 million, up 8.1% EMEA: $132.7 million, up 2.3% Asia: $50.5 million, up 12.4% OEM: $35.7 million, down 7.4% Note: Increases and
Slide 20: 2013 Financial Outlook
20 2013 FINANCIAL OUTLOOK 20
Slide 21: 2013 Financial Outlook
2013 Financial Outlook Foreign exchange expected to negatively impact revenue by ~ 1% 21
Slide 22: 2013 Financial Outlook
2013 Financial Outlook Gross margin of between 50% to 51%Including impact of medical device tax, adjusted operating margin expected to be between 16.0% to 17.0%Medical device tax negatively impacts adjusted operating margin by ~ 1% Adjusted earnings per share expected to be between $4.70 to $4.90 22
Slide 23: Question & Answer
23 QUESTION & ANSWER 23
Slide 24: Appendices
24 APPENDICES 24
Slide 25: Appendix A - Reconciliation of Product Constant Currency Revenue Growth
Appendix A - Reconciliation of Product Constant Currency Revenue Growth Dollars in Millions 25
Slide 26: Appendix B - Reconciliation of Segment Constant Currency Revenue Growth
Appendix B - Reconciliation of Segment Constant Currency Revenue Growth Dollars in Millions 26
Slide 27: Appendix C - Reconciliation of Critical Care Product Constant Currency Revenue Growth
Appendix C - Reconciliation of Critical Care Product Constant Currency Revenue Growth Dollars in Millions 27
Slide 28: Appendix D - Fourth Quarter Income Statement from Continuing Operations
Appendix D - Fourth Quarter Income Statement from Continuing Operations Dollars in millions, except per share 28
Slide 29: Appendix E - Reconciliation of Product Constant Currency Revenue Growth
Appendix E - Reconciliation of Product Constant Currency Revenue Growth Dollars in Millions 29
Slide 30: Appendix F - Reconciliation of Segment Constant Currency Revenue Growth
Appendix F - Reconciliation of Segment Constant Currency Revenue Growth Dollars in Millions 30
Slide 31: Appendix G - Reconciliation of Critical Care Product Constant Currency Revenue Growth
Appendix G - Reconciliation of Critical Care Product Constant Currency Revenue Growth Dollars in Millions 31
Slide 32: Appendix H - Year-to-Date Income Statement from Continuing Operations
Appendix H - Year-to-Date Income Statement from Continuing Operations Dollars in millions, except per share 32
Slide 33: Appendix I - EPS Reconciliation from Continuing Operations
Appendix I - EPS Reconciliation from Continuing Operations 33
Slide 34: Appendix J - EPS Reconciliation from Continuing Operations
Appendix J - EPS Reconciliation from Continuing Operations 34
Slide 35: Appendix K - EPS Reconciliation from Continuing Operations
Appendix K - EPS Reconciliation from Continuing Operations 35
Slide 36: Appendix L - EPS Reconciliation from Continuing Operations
Appendix L - EPS Reconciliation from Continuing Operations 36
Slide 37: Appendix M - Reconciliation of 2013 Outlook Earnings per Share Guidance
Appendix M - Reconciliation of 2013 Outlook Earnings per Share Guidance Low High Diluted earnings per share attributable to common shareholders $3.20 $3.40 Restructuring and impairment charges, net of tax $0.51 $0.51 Intangible amortization expense, net of tax $0.82 $0.82 Amortization of debt discou
Slide 38: Appendix N - Reconciliation of Teleflex Selling, General and Administrative Expenses
38 Appendix N - Reconciliation of Teleflex Selling, General and Administrative Expenses
Slide 39: Appendix O - Reconciliation of Teleflex Gross Profit
39 Appendix O - Reconciliation of Teleflex Gross Profit