Avanos Medical, Inc. · NYSE:AVNS
Avanos Medical — Halyard Health — Investor Day (June 2018)
99 slides from Avanos Medical's investor day presentation, Jun 21, 2018
Slide 1: Analyst and Investor Conference June 2018
ANALYST AND INVESTOR CONFERENCE JUNE 2018 SOFITEL NEW YORK NEW YORK, NY 1
Slide 2: Forward-Looking Information and Non-GAAP Financial Measures
OVERVIEW FORWARD-LOOKING INFORMATION Certain matters in this presentation, including our financial outlook, expectations and planning assumptions, and any estimates,projections, and statements relating to our business plans, objectives, or the acquisition of CoolSystems constitute forward-looking st
Slide 3: Welcome and agenda
Welcome Dave Crawford, Vice President, Treasurer & Investor Relations Executive Introduction Joseph F. Woody, Chief Executive Officer Commercial Strategy John Tushar, President, Global Franchises Interventional Pain Lisa Kudlacz, Vice President & General Manager, Interventional Pain Guest Speaker Dr
Slide 4: Introducing Avanos
INTRODUCING ∆V∆NOS JUNE 2018 JOE WOODY CHIEF EXECUTIVE OFFICER 1
Slide 5: Avanos: Achieving the Impossible
∆V∆NOS: ACHIEVING THE IMPOSSIBLE Our Vision The best at getting patients back to the things that matter Our Mission We deliver clinically superior, breakthrough medical device solutions to improve patients’ quality of life Our Values Customer-Centric Results-Driven Collaborative Candor Speed Global
Slide 6: Who We Are
WHO WE ARE Global Medical Devices Company ~$10B Market-leading portfolio $600M+ in the U.S.: Global Revenue Addressable 7 products are #1 or #2 Market in their categories Pain Management Chronic Care Business Operations in Strong Momentum: Low 60s gross margin, 90+ countries 10% net sales delivering
Slide 7: Delivering Superior, Breakthrough Medical Device Solutions
DELIVERING SUPERIOR, BREAKTHROUGH MEDICAL DEVICE SOLUTIONS 100 million Americans Opioid dependency can begin Pain live in chronic pain within 3 days of initial use1 Management ~86% of hospital-associated 1/3 of patients enter the hospital pneumonia is linked with malnourished; another 1/3 develop Ca
Slide 8: Track Record of Strong Performance
TRACK RECORD OF STRONG PERFORMANCE Established pure-play medical devices business 1 Launched cost transformation and implementation of new IT system Announced acquisition of Game Ready Accelerated organic growth rate annually 2 Increased net sales by 10% CAGR1 Expanded operating margins
Slide 9: Strategic Framework Driving Future Double-Digit Growth
STRATEGIC FRAMEWORK DRIVING FUTURE DOUBLE-DIGIT REVENUE AND EARNINGS GROWTH Accelerating innovation and growth to achieve category leadership in Pain Management and Chronic Care through excellence in our investments, performance and people Achieve full- Accelerate Focus on Pursue Continue to potenti
Slide 10: Today's Agenda & Presenters
TODAY’S AGENDA & PRESENTERS John Tushar Lisa Kudlacz Dr. John DiMuro Roger Massengale President, Vice President & Owner, Vice President & Global Franchises General Manager, DiMuro Pain Management General Manager, Interventional Pain Acute Pain Dr. Sonia Szlyk Tom Kupec Lee Burnes Steve Voskuil Direc
Slide 11: Thank You
THANK YOU 8
Slide 12: Commercial Strategy
COMMERCIAL STRATEGY JUNE 2018 JOHN TUSHAR PRESIDENT, GLOBAL FRANCHISES 1
Slide 13: Avanos: Strong Fundamentals
∆V∆NOS: STRONG FUNDAMENTALS A newly transformed, focused and scalable medical device business Performance momentum Market-leading product portfolio Resources to seize external opportunities Proven ability to drive internal innovation Equipped to best serve customers Able to attract top
Slide 14: Our Strategy
OUR STRATEGY Accelerating innovation and growth to achieve category leadership in Pain Management and Chronic Care through excellence in our investments, performance and people 3
Slide 15: Driving Shareholder Value
DRIVING SHAREHOLDER VALUE Investments Performance People • Dual-track pursuit of growth through • Leveraging data for differentiation • Energized, focused workforce innovation and M&A & optimal reimbursement post-S&IP and renaming • Outcomes and economics-driven • Customer engagement • Leveraging HP
Slide 16: Our Business: An Overview
OUR BUSINESS: AN OVERVIEW Strong Position in Large Fast Growth in Pain Continued Leadership in Addressable Markets Management Chronic Care • Includes Acute Pain and • Includes Digestive Health and Interventional Pain Respiratory Health • Key therapies: • Key therapies: Chronic Care ‐ Non-opioid post
Slide 17: Investing to Win in an Evolving Market
INVESTING TO WIN IN AN EVOLVING MARKET Demand for Limited potential for Need for non- Continued barriers Movement to Increased patient evidence and incremental opioid pain to non-opioid outpatient and control in healthcare economic benefits innovation management alternatives alternative care decisio
Slide 18: The Avanos Difference
THE ∆V∆NOS DIFFERENCE Newly focused business with a strategy to continue driving innovation & growth Experienced management team with diverse backgrounds Sustainable leadership positions in attractive end markets Proven ability to create value through external and internal innovation 7
Slide 19: Thank You
THANK YOU 8
Slide 20: Interventional Pain
INTERVENTIONAL PAIN JUNE 2018 LISA KUDLACZ VICE PRESIDENT & GENERAL MANAGER, INTERVENTIONAL PAIN 1
Slide 21: Interventional Pain
INTERVENTIONAL PAIN Interventional Pain Vision To be the world leader in minimally invasive solutions for the treatment of chronic pain Attractive Market Dynamics Large, growing category that lacks longer-term minimally invasive solutions for patients Significant Future Potential Investing in clinic
Slide 22: Interventional Pain Overview
INTERVENTIONAL PAIN OVERVIEW Large Addressable Market Double-Digit Growth Driven by COOLIEF*1 100M >$4B Americans with Addressable Chronic Pain Market Leading RF Market Share Position 3% 3% Avanos 9% Abbott 30% Stryker • IVP CAGR: 13% 25% Boston Science • Coolief CAGR: 46% Diros 30% Other Note: Sour
Slide 23: COOLIEF Enables Deactivation of Sensory Nerves
COOLIEF* ENABLES DEACTIVATION OF SENSORY NERVES FOR INCREASED DURATION OF PAIN RELIEF DISC THORACIC LUMBAR KNEE SACRUM CERVICAL HIP 4
Slide 24: Significant Opportunity for COOLIEF Beyond Spine
SIGNIFICANT OPPORTUNITY FOR COOLIEF* BEYOND SPINE U.S. RF Procedures by Anatomy1 • 3% 2% 1% Majority of RF procedures performed are for Lumbar spine pain 6% Cervical • Knee procedures rapidly becoming the 4th most SIJ common procedure 13% Knee • Knee represents the largest untapped growth 52% opport
Slide 25: COOLIEF Advantage Over Standard RF
COOLIEF* ADVANTAGE OVER STANDARD RF VIDEO of Cooled RF vs. Standard RF: https://kchc.wistia.com/medias/58o3havnee 6
Slide 26: Cooled RF Provides Longer Duration of Pain Relief for Knee
COOLED RF PROVIDES LONGER DURATION OF PAIN RELIEF FOR KNEE OVER STANDARD RF 9 8.5 8.0 8 8.0 7.9 7 7.3 6 5.8 5 4.1 4 Pain Score 4.0 3 3.1 2.2 2 1 0 Baseline 1 Month 3 Months 6 Months 12 Months SRFA2 SRFA3 SRFA CRFA CRFA2 7
Slide 27: The Only FDA-Cleared Ablation Technique for Osteoarthritis Knee Pain
THE ONLY FDA-CLEARED ABLATION TECHNIQUE TO TREAT OSTEOARTHRITIS KNEE PAIN Target market: moderate to COOLIEF* plays critical role in severe knee OA short-term pain relief1 ~30M OA Knee Patients ~20M Symptomatic Patients ~11M Patient population ~10M Advanced Symptomatic Patients Note: 1. National Cen
Slide 28: The Power of COOLIEF from a Patient's Perspective
THE POWER OF COOLIEF* FROM A PATIENT’S PERSPECTIVE https://kchc.wistia.com/medias/lotgfp09zq 9
Slide 29: How We Will Win
HOW WE WILL WIN A balanced investment approach Expand patient advertising to drive procedure demand 1 Utilize targeted physician value proposition campaigns supported by demand generation programs Increase investment in clinical data: 13 studies across 3 2 indications over next 3 years Show
Slide 30: Bright Future for Interventional Pain Management
BRIGHT FUTURE FOR INTERVENTIONAL PAIN MANAGEMENT Building on solid foundation with differentiated product portfolio and market-leading position Large growing category that lacks longer term minimally invasive solutions for patients Solid investments in clinical evidence that create value with physic
Slide 31: Thank You
THANK YOU 12
Slide 32: The Power of COOLIEF
THE POWER OF COOLIEF JUNE 2018 DR. JOHN M. DIMURO OWNER, DIMURO PAIN MANAGEMENT 1
Slide 33: Disclosure
DISCLOSURE • Avanos, Inc. is sponsoring this presentation, and I am being compensated by Avanos to make this presentation. • The information provided in this presentation is intended for health care professionals and is intended for training and education purposes. • For complete product information
Slide 34: The Power of COOLIEF
Julia Mancuso 4 time Olympic medalist 3 time Olympian The Power of
Slide 35: Acute Pain
ACUTE PAIN JUNE 2018 ROGER MASSENGALE VICE PRESIDENT & GENERAL MANAGER, ACUTE PAIN 1
Slide 36: Acute Pain
ACUTE PAIN Acute Pain Vision To be the leader in reducing or eliminating opioids for surgical patients Attractive Market Dynamics Significant need for solutions to battle the opioid crisis and demonstrate healthcare economic benefits Significant Future Potential Differentiated products and services
Slide 37: It's a Matter of Days
It’s a Matter of Days… IT’S A MATTER OF DAYS. Every DAY a patient takes opioids, their risk of forming a life-threatening addiction increases1 Note: 1. Centers for Disease Control and Prevention. Characteristics of Initial Prescription Episodes and Likelihood of Long-Term Opioid Use—United States, 2
Slide 38: Acute Pain Overview
ACUTE PAIN OVERVIEW Large Addressable Market Value Drivers Growth Priorities >$4B • Need for solutions to combat the Underpenetrated markets with Addressable Market opioid crisis and demonstrate substantial upside – priorities for healthcare economic benefits growth through: • Substantial brand equi
Slide 39: Acute Pain Portfolio
ACUTE PAIN PORTFOLIO Complete portfolio of products to manage and monitor patients’ pain with reduced cost to the healthcare system 5
Slide 40: Large Addressable Market of U.S. Procedures Per Year
LARGE ADDRESSABLE MARKET: MORE THAN 20 MILLION U.S. PROCEDURES PER YEAR Estimated Market Opportunity by Specialty1 GENERAL SURGERY CV/CT Colorectal Thoracotomy/ Sternotomy 9% Orthopedic 8% General 5% ORTHO/ TRAUMA TKA, Rotator Cuff, OB/GYN Hip Fx 17% 61% CVCT OB/GYN Other C-section, Hysterectomy Not
Slide 41: Opioids Are a Significant Burden on the Healthcare System
OPIOIDS ARE A SIGNIFICANT BURDEN ON THE HEALTHCARE SYSTEM Between 1999 and 2013, the Every opioid-related, in-hospital prescription opioid overdose 3 rate for adults aged 55 to adverse event increases costs 64 increased more than by an average of $4,700 1 7x Opioid side effects such as constipation
Slide 42: ON-Q Provides Superior Outcomes to Other Non-Opioid Alternatives
ON-Q* PROVIDES SUPERIOR OUTCOMES TO OTHER NON-OPIOID ALTERNATIVES Other Non-opioid Alternatives ON-Q*4 Single-shot nerve blocks are associated with worsening postoperative pain between 16 & 24 hours1 Recent studies and clinical reviews of the data have concluded that Liposomal Bupivacaine does NOT a
Slide 43: ON-Q Is Critical to a Multimodal Approach to Postop Pain Management
ON-Q* IS CRITICAL TO A MULTIMODAL APPROACH TO POSTOP PAIN MANAGEMENT TREATMENT GOALS Reduce opioid use Provide pain relief for Reduce complications days, not just hours due to opioid use Offer customizable Improve cost-effectiveness Holistic approach to clinical sales, control with ability to turn b
Slide 44: The Benefits of ON-Q from a Patient's Perspective
THE BENEFITS OF ON-Q* FROM A PATIENT’S PERSPECTIVE [Insert patient video] 10
Slide 45: Game Ready: Expanding Non-Opioid Portfolio and Channel Access
GAME READY: EXPANDING NON-OPIOID PORTFOLIO AND CHANNEL ACCESS • Cold therapy and compression are well- Our Objectives known solutions for post-surgical inflammation and pain, and widely used by orthopedic surgeons Expand our non-opioid pain portfolio • Game Ready is a well-established brand with a p
Slide 46: Game Ready Portfolio
GAME READY PORTFOLIO GAME G¥ READY
Slide 47: How We Will Win
HOW WE WILL WIN Capitalize on growing demand from physicians seeking non- 1 opioid alternatives Educate surgeons and anesthesiologists on clinical and economic benefits of ON-Q* Expand attention of well-trained sales force on surgeon 2 decision makers Leverage substantial portfolio of clinic
Slide 48: Significant Future Potential in Acute Pain Management
SIGNIFICANT FUTURE POTENTIAL IN ACUTE PAIN MANAGEMENT Building on solid foundation with strong products and services and market-leading positions Underpenetrated markets with substantial upside Comprehensive growth plan to deepen and broaden account penetration Investing in innovative opioid-sparing
Slide 49: Thank You
THANK YOU 15
Slide 50: Getting to Yes: Pain Management Done Right
GETTING TO YES: PAIN MANAGEMENT DONE RIGHT JUNE 2018 SONIA SZLYK, MD DIRECTOR OF REGIONAL ANESTHESIA, NORTH AMERICAN PARTNERS IN ANESTHESIA, MID-ATLANTIC 1
Slide 51: Disclosure
DISCLOSURE • Avanos, Inc. is sponsoring this presentation, and I am being compensated by Avanos to make this presentation. • The information provided in this presentation is intended for health care professionals and is intended for training and education purposes. • For complete product information
Slide 52: "Long-Acting" Local Anesthetics Fall Short
“LONG-ACTING” LOCAL ANESTHETICS FALL SHORT Unpredictable quality Unpredictable No titration of block duration of block Unclear safety profile Cost considerations Unreliable outcomes Lower surgeon, administration, and patient satisfaction 3
Slide 53: Can We Reduce Opioid Use? Yes, There's a Block for That
CAN WE… Reduce opioid use? Decrease length of stay? Increase discharge to home? Ensure patient & surgeon satisfaction? YES, there’s a BLOCK for that! 4
Slide 54: Postoperative Pain Management
POSTOPERATIVE PAIN MANAGEMENT What surgery did this patient have 4 hours ago? Total Knee Replacement! 5
Slide 55: The Era of Value-Based Care
THE ERA OF VALUE-BASED CARE Patient Satisfaction Prevent Lower Cost Readmission Better Outcomes Coordinated Care 6
Slide 56: My Avanos Advantage
MY ∆V∆NOS ADVANTAGE Patient Nurse Portfolio of education & education products support hotline Anesthesia ON-Q* Trac provider Innovation!!! data collection education 7
Slide 57: Anesthesia Team Physical Therapist Nurses Surgeon Success! Patient Physician 8
Anesthesia Team Physical Therapist Nurses Surgeon Success! Patient Physician 8
Slide 58: Thank You
THANK YOU 9
Slide 59: Chronic Care
CHRONIC CARE JUNE 2018 TOM KUPEC VICE PRESIDENT & GENERAL MANAGER, CHRONIC CARE 1
Slide 60: Respiratory Health
RESPIRATORY HEALTH Respiratory Health Vision To be the global market leader in diagnosing and treating chronic respiratory diseases Attractive Market Dynamics Large growing markets supported by an aging global population and highly prevalent disease states Significant Future Potential Evaluating exp
Slide 61: Business Snapshot: Respiratory Health
BUSINESS SNAPSHOT: RESPIRATORY HEALTH Our Business Today Ventilator-Associated Pneumonia VAP is a major clinical concern associated with high incidence • Addressable market: $400M rates, mortality and costs • Market dynamics: Mature market with stable growth • Call points: Infection Control, Respira
Slide 62: Respiratory Health Product Portfolio
RESPIRATORY HEALTH PRODUCT PORTFOLIO Airway Access Tubes Airway Suctioning & Accessories Oral Hygiene (EndoTracheal tubes) 4
Slide 63: Digestive Health
DIGESTIVE HEALTH Digestive Health Vision To be our global customers’ Preferred Enteral Partner Attractive Market Dynamics Multiple underlying disease states. There is no alternative to enteral feeding Significant Future Potential Investing in breakthrough technologies such as MIC-KEY SF* and our nex
Slide 64: Business Snapshot: Digestive Health
BUSINESS SNAPSHOT: DIGESTIVE HEALTH Our Business Today Feeding Inefficiency and Malnutrition • Addressable market: $900M Malnutrition is a key risk associated with short-term enteral feeding, with significant impact on patient health • Market dynamics: Mature market, with leading positions further e
Slide 65: Digestive Health Product Portfolio
DIGESTIVE HEALTH PRODUCT PORTFOLIO Short-Term Feeding Long-Term Feeding Accessories CORTRAK* EAS MIC-KEY* G Tubes System Initial Placement Kit Nasoenteric Tubes Specialty Tubes (GJ/J) FARRELL VALVE 7
Slide 66: Our Differentiated Position in Enteral Feeding
OUR DIFFERENTIATED POSITION IN ENTERAL FEEDING #1 provider of enteral feeding Nearly 13,000 monthly visitors to Market solutions with over 2 million tubes, Active Patient our patient & caregiver support site Leader accessories and placement kits Community and 29,000+ active Facebook produced each ye
Slide 67: How We Will Win: Chronic Care
HOW WE WILL WIN: CHRONIC CARE Leverage and maximize unparalleled clinical data and insights 1 Place product value proposition – and clinical benefits – at the core of marketing approach and clinical engagement Rapidly complete registration and licensing of CORPAK* for 2 international markets
Slide 68: Solid Business with Attractive Outlook
SOLID BUSINESS WITH ATTRACTIVE OUTLOOK Large markets fueled by multiple disease states with large prevalence Market-leading positions in most developed countries Strong brands in BALLARD*, MICROCUFF*, MIC-KEY*, CORTRAK*, CORFLO*, CORGRIP* and Farrell Valve Diverse product offerings with unique clini
Slide 69: Thank You
THANK YOU 11
Slide 70: R&D Review
R&D REVIEW JUNE 2018 LEE BURNES VICE PRESIDENT, GLOBAL R&D, CLINICAL & MEDICAL AFFAIRS 1
Slide 71: R&D Overview
R&D OVERVIEW • Transformation of R&D talent, capabilities & portfolio • Investments in next generation platforms • Focus on breakthrough innovations in Pain Management • Building a strong R&D pipeline with consistent cadence of launches 2
Slide 72: Transformation of Our Capabilities & Portfolio
TRANSFORMATION OF OUR CAPABILITIES & PORTFOLIO TALENT PROCESS • Built strong R&D team through targeted • Collecting & prioritizing user needs device industry recruitment • Agile & scalable product development process • Designed six sigma/culture of innovation • Integrated human-centered engineering
Slide 73: Transformation of Our Capabilities & Portfolio
TRANSFORMATION OF OUR CAPABILITIES & PORTFOLIO 2015 Today Impact / Benefit R&D Focus Products Products, services & solutions • More diverse product portfolio & pipeline 90% Incremental 60% Incremental • Focused on higher-value, R&D Spend 10% Breakthrough 40% Breakthrough higher-impact innovations •
Slide 74: Platform Investment: Chronic Care
PLATFORM INVESTMENT: CHRONIC CARE • Reinvigorate platforms to address end-of-platform life Focus of Platform • Enhance safety & efficacy of enteral nutrition delivery Enhancements • Provide patients & caregivers low profile feeding tube status • Expand the utilization of CORTRAK* tube tracking techn
Slide 75: Platform Investment: Pain Management
PLATFORM INVESTMENT: PAIN MANAGEMENT • Reinvigorate platforms to address end-of-platform life Focus of Platform • Enhance capabilities, improve ease of use & position for international growth Enhancements • Increase physician & patient engagement to drive utilization • Develop and expand into new pr
Slide 76: Investments in Opioid-Free Pain Relief Breakthroughs
INVESTMENTS IN OPIOID-FREE PAIN RELIEF BREAKTHROUGHS PAIN TECHNOLOGY CENTER OF EXCELLENCE • 15 PhDs in Neuroscience, Biomedical Engineering and Signal Processing • Deep expertise in neural signaling, nerve anatomy & algorithms • Developing novel breakthrough technology in both acute & chronic pain P
Slide 77: Investments in Opioid-Free Pain Relief Breakthroughs
INVESTMENTS IN OPIOID-FREE PAIN RELIEF BREAKTHROUGHS Machine Electrical Nerve Advanced RF Learning Blocking Technology Several new technology platforms for long-term growth 8
Slide 78: Investments in Open Innovation
INVESTMENTS IN OPEN INNOVATION Innovation Growth Strategies Lens Portfolio of Innovations Priority Lens Venture Funding Increasing Internal R&D Business Focus VCs Growth! Innovation & Pre‐Revenue External Co. Existing Universities Revenue Partnerships Volume License Unused IP Commercial ID Open Inno
Slide 79: R&D Portfolio Pipeline
R&D PORTFOLIO PIPELINE Exploration Concept Feasibility Development Validation & Launch NxG PNB Machine Learning NxG COOLIEF* NxG ON‐Q* NxG COOLIEF* Latex Free IV ON‐Q* Trac ES500 Nerve Introducer Technology Probes System Generator & Chemo Pumps Stimulator Pain Management Pain Needle Chronic Care NxG
Slide 80: Concluding Remarks
CONCLUDING REMARKS R&D talent, capabilities & portfolio have been transformed Next generation platform investments strengthen market-leading positions Long-term breakthrough innovations in non-opioid pain relief Strong R&D pipeline with consistent cadence of launches established 11
Slide 81: Thank You
THANK YOU 12
Slide 82: Financial Outlook
FINANCIAL OUTLOOK JUNE 2018 STEVE VOSKUIL SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER 1
Slide 83: Momentum for Profitable Growth
MOMENTUM FOR PROFITABLE GROWTH Diversified Accelerating Focused portfolio in organic commercial attractive global top-line growth execution markets Operating Strong free cash M&A firepower Tax rate leverage from flow post with leverage scalable & restructuring demonstrated efficient disciplined capi
Slide 84: 2016–2017 Shareholder Value Creation
2016–2017 SHAREHOLDER VALUE CREATION 10% 420 bps Medical Devices Medical Devices net sales CAGR operating margin accretion 80% Total Shareholder Return1 +$260 million 21% R&D expense Free cash flow CAGR for generation Medical Devices Note: 1. Shareholder return 12/31/15 through 6/15/18 3
Slide 85: Multiple Levers to Drive Sustainable Sales and Earnings Growth
MULTIPLE LEVERS TO DRIVE SUSTAINABLE SALES AND EARNINGS GROWTH Gross Margin Balance Sheet Top-line Growth Operating Leverage Expansion Efficiency Underpenetrated pain Product mix Right-sized and scalable Working capital efficiency categories corporate and IT Supply chain optimization infrastructure
Slide 86: Transformation to a Right-Sized, Growing and Scalable Business
TRANSFORMATION TO A RIGHT-SIZED, GROWING AND SCALABLE BUSINESS Halyard Avanos Today Exiting 2021 Pre-Divestiture Organic Top-line Flat Mid-single digit High single digit Growth: Gross Margin: Mid-30s Low-60s Mid-60s R&D1: 2% - 3% <6% 6% - 7% SG&A1 (ex. R&D): Low 20s Low 40s Mid-30s Operating Margin
Slide 87: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES 1 2 3 Business Continuous M&A Investment Improvement Investment to support Sustainably improve Robust pipeline of strategic sustainable and accelerating productivity and profitability acquisitions and partnerships to organic growth enhance shareholder returns 6
Slide 88: Disciplined Approach to Investment
DISCPLINED APPROACH TO INVESTMENT Strategic Criteria Financial Criteria New & adjacent markets that Top-line growth & gross margins at expand call points, channel or above current business access, technologies or therapies Risk-adjusted returns above cost of Potential for future growth & sca
Slide 89: Cost Transformation
COST TRANSFORMATION Drive $30 - $40 million of savings from 2019 – 2021 and continued savings beyond INFORMATION CONTINUOUS ORGANIZATION OPERATIONS TECHNOLOGY IMPROVEMENT • Right-size organization • New ERP system • Lean manufacturing • Reduce spans and layers • Optimize distribution network • Cuts
Slide 90: IT Transformation Update
IT TRANSFORMATION UPD∆TE Design Benefits Template • Overall IT costs halved Build APAC/EMEA • Improved global information to Deployments drive decisions North American • Legacy system sold to OMI Deployment • Faster M&A integration Stabilization and Clean-up • Phased implementation to Final reduce r
Slide 91: Reaffirming 2018 Guidance and Planning Assumptions
REAFFIRMING 2018 GUIDANCE AND PLANNING ASSUMPTIONS • Adjusted diluted earnings per share • Adjusted effective tax rate between 25 from continuing and discontinued and 27 percent operations of $1.65 to $1.85 • Net dis-synergies from the S&IP • Medical Device sales growth of 4 to 6 divestiture expecte
Slide 92: Positioned to Accelerate Growth and Innovation
POSITIONED TO ACCELERATE GROWTH AND INNOVATION Delivering top-quartile shareholder value 11
Slide 93: Thank You
THANK YOU 12
Slide 94: Today's Presenters
TODAY’S PRESENTERS JOSEPH F. WOODY STEVE VOSKUIL Chief Executive Officer Senior Vice President and Chief Financial Officer As Chief Executive Officer and member of the Board of Directors, Joe Woody brings 20 In his role of Senior Vice President and Chief Financial Officer, Steve Voskuil is responsib
Slide 95: Today's Presenters
TODAY’S PRESENTERS LEE BURNES ARJUN SARKER Senior Vice President, Global R&D, Clinical & Medical Affairs Senior Vice President, International As Senior Vice President of Global R&D, Clinical and Medical Affairs, Lee Burnes leads an As Senior Vice President, International, Arjun Sarker oversees all c
Slide 96: Today's Presenters
TODAY’S PRESENTERS JOHN TUSHAR LISA KUDLACZ President, Global Franchises Vice President & General Manager – Interventional Pain As President, Global Franchises, John Tushar leads global franchise strategy as well as Lisa Kudlacz is the Vice President & General Manager for Avanos’ Interventional Pain
Slide 97: Today's Presenters
TODAY’S PRESENTERS TOM KUPEC ROGER MASSENGALE Vice President & General Manager – Chronic Care Vice President & General Manager – Acute Pain Tom Kupec is the Vice President and General Manager for Avanos’ Chronic Care business, Roger Massengale is Vice President and General Manager of Avanos’ Acute P
Slide 98: Today's Presenters
TODAY’S PRESENTERS DAVE CRAWFORD Vice President – Treasurer & Investor Relations As Vice President Treasurer and Investor Relations, Dave Crawford is responsible for leading Avanos’ Treasury and Investor Relation functions. Dave also led Financial Planning and Analysis along with the above roles fol
Slide 99: Today's Presenters
TODAY’S PRESENTERS DR. JOHN M. DIMURO DR. SONIA SZLYK Owner, DiMuro Pain Management Director of Regional Anesthesia, for North American Partners in Anesthesia Dr. DiMuro is the former Chief Medical Officer for the State of Nevada. He is fellowship- Sonia Szlyk, MD, is the Director of Regional Anesth