Slide 1: Second Quarter 2023 Earnings Conference Call
Teleflex Incorporated Second Quarter 2023 Earnings Conference Call
Slide 2: Conference Call Logistics
Conference Call Logistics The release, accompanying slides, and replay webcast are available online at www.teleflex.com (click on Investors) An audio replay of the call will be available beginning at 11:00 am Eastern Time on August 3, 2023 either on the Teleflex website or by telephone. The call can
Slide 3: Today's Speakers
Today’s Speakers Liam Kelly Chairman, President and CEO Thomas Powell Executive VP and CFO Lawrence Keusch VP, Investor Relations and Strategy Development 3
Slide 4: Note on Forward-Looking Statements and Non-GAAP Financial Measures
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to our expectations regarding the timing for completion of our acquisition of Palette Lifesciences AB; estimates with respect to the number of new cases of prostate cancer that will b
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q2'23 Highlights
Q2'23 Highlights ◦ Q2'23 constant currency revenue grew 5.9% year-over-year Q2 Performance ◦ Q2'23 adjusted gross margin of 59.0% and adjusted operating margin of 26.6% Summary ◦ Q2'23 adjusted EPS of $3.41, a 0.6% increase year-over-year ◦ Increased low end of 2023 constant currency revenue growth
Slide 7: Q2'23 Segment Revenue Review
Q2'23 Segment Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions July 2, 2023 June 26, 2022 Currency Impact Revenue Growth Growth Americas $424.7 $412.7 2.9% (0.1)% 3.0% EMEA $147.8 $145.2 1.8% 1.1% 0.7% Asia $86.7 $76.6 13.1% (6.0)% 19.1% OEM $84.1
Slide 8: Q2'23 Global Product Category Revenue Review
Q2'23 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions July 2, 2023 June 26, 2022 Currency Impact Revenue Growth Growth Vascular Access $173.8 $163.9 6.0% (0.6)% 6.6% Interventional $124.8 $114.4 9.1% (0.5)% 9.6% Anesthesia
Slide 9: Acquisition of Palette Life Sciences AB: Transaction Details
Acquisition of Palette Life Sciences AB TRANSACTION DETAILS • $600 million cash upfront payment • $50 million in contingent consideration payments upon the achievement of certain commercial milestones • Acquisition projected to close Q4 2023, subject to customary closing conditions 9 CAUTION: Federa
Slide 10: Acquisition of Palette Life Sciences AB: Key Takeaways
Acquisition of Palette Life Sciences AB KEY TAKEAWAYS Expands interventional urology portfolio into adjunctive therapy for prostate cancer • Barrigel is easily sculpted, highly visible on transrectal ultrasound (TRUS), biodegradable, reversible, and offers one-step assembly in all sites of service •
Slide 11: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 11
Slide 12: Q2'23 Financial Review
Q2'23 Financial Review ◦ Revenue increased 5.5% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 5.9% year-over-year on a constant currency basis ◦ GAAP gross margin of 54.9% vs. 55.2% in the prior year period Gross margin ◦ Adjusted gross margin of 59.0%, down 60 bps year-ov
Slide 13: 2023 Financial Guidance Summary
2023 Financial Guidance Summary 2023 Guidance Low High GAAP Revenue Growth 5.80% 6.55% Impact of Foreign Exchange Rate Fluctuations 0.30% 0.30% Constant Currency Revenue Growth 5.50% 6.25% Adjusted Gross Margin 59.00% 59.50% Adjusted Operating Margin 26.00% 26.75% Adjusted EPS $13.00 $13.60 Adjusted
Slide 14: Acquisition of Palette Life Sciences AB: Financial Guidance
Acquisition of Palette Life Sciences AB FINANCIAL GUIDANCE Palette Life Sciences AB is estimated to generate net sales of $56 million in 2023, and grow in the high-teens to low 20% range in 2024 • Assuming a December 1, 2023 close of the transaction, the acquisition is not expected to significantly
Slide 15: Key Takeaways
Key Takeaways Our diversified portfolio The solid second We will continue to and global footprint quarter performance execute on our strategy drove durable growth in keeps us well-positioned to drive durable growth. the second quarter. Our to deliver on our We believe that Palette execution remains
Slide 16: Thank You
Thank You 16 1616 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2023 Teleflex Incorporated. All rights reserved. MCI-2021-0563.
Slide 17: Appendices
Appendices Veleflex:
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation to which these appendices are attached and the following appendices include, among other things, tables reconciling the following applicable non-GAAP financial measures to the most comparable GAAP financial measure: ◦ Constant currency revenue growth. Thi
Slide 19: Non-GAAP Adjustments
Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied with respect to one or more of the non-GAAP financial measures that appear in the presentation to which these appendices are attached: Restructuring, restructuring related and impairment items - Restr
Slide 20: Non-GAAP Adjustments
Non-GAAP Adjustments European medical device regulation - The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, inc
Slide 21: Appendix A1 – Reconciliation of Consolidated Statement of Income Items
Appendix A1 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Three Months Ended July 2, 2023 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin admin
Slide 22: Appendix A2 – Reconciliation of Consolidated Statement of Income Items
Appendix A2 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Three Months Ended June 26, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin admi
Slide 23: Appendix A3 – Reconciliation of Consolidated Statement of Income Items
Appendix A3 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Six Months Ended July 2, 2023 Selling, general Diluted Research and Effective earnings per Gross and development Operating Income before Income tax income tax margin administrative mar
Slide 24: Appendix A4 – Reconciliation of Consolidated Statement of Income Items
Appendix A4 – Reconciliation of Consolidated Statement of Income Items (Dollars in millions, except per share data) Six Months Ended June 26, 2022 Diluted Selling, general Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin admini
Slide 25: Appendix A tickmarks
Appendix A tickmarks (A) Restructuring, restructuring related and impairment items – For the three months ended July 2, 2023, pre-tax restructuring charges were $1.5 million and restructuring related charges were $9.3 million. For the three months ended June 26, 2022, pre-tax restructuring charges w
Slide 26: Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation
Appendix B - 2023 Adj. Gross and Operating Margin Guidance Reconciliation Low High Forecasted GAAP Gross Margin 55.08% 55.58% Estimated restructuring, restructuring related and impairment items 0.83% 0.83% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 27: Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance
Appendix C – Reconciliation of 2023 Adjusted Earnings Per Share Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $7.33 $7.93 Estimated restructuring, restructuring related and impairment items, net of tax $0.61 $0.61 Estimated acquisition, integration, and dive
Slide 28: 2023 Segment Revenue Review
2023 Segment Revenue Review Six Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions July 2, 2023 June 26, 2022 Currency Impact Revenue Growth Growth Americas $836.5 $790.7 5.8% (0.2)% 6.0% EMEA $291.2 $282.1 3.2% (2.1)% 5.3% Asia $165.4 $145.8 13.5% (7.3)% 20.8% OEM $161
Slide 29: 2023 Global Product Category Revenue Review
2023 Global Product Category Revenue Review Six Months Ended % Increase/ Decrease Reported Constant Currency Dollars in Millions July 2, 2023 June 26, 2022 Currency Impact Revenue Growth Growth Vascular Access $351.4 $330.1 6.5% (1.4)% 7.9% Interventional $241.7 $211.3 14.4% (1.5)% 15.9% Anesthesia
Slide 30: 2023 Financial Review - Six Months Ended July 2, 2023
2023 Financial Review - Six Months Ended July 2, 2023 ◦ Revenue increased 8.0% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 9.3% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.0% vs. 54.6% in the prior year period Gross margin ◦ Adjusted gross margi