ICU Medical, Inc. · NASDAQ:ICUI
ICU Medical — Investor Presentation (March 2017)
23 slides from ICU Medical's investor presentation, March 2017
Slide 1: ICU Medical, Inc. Investor Presentation (NASDAQ:ICUI)
ICU Medical, Inc. Investor Presentation (NASDAQ:ICUI) March 2017
Slide 2: Forward Looking Statement
Forward Looking Statement > Any statement concerning Management’s expectation with respect to future results is a forward looking statement based upon the best information currently available to Management and assumptions Management believes are reasonable, but Management does not intend the stateme
Slide 3: Today's Agenda
Today’s Agenda Who is Our acquisition of Why we are a compelling Financial terms of ICU Medical? Hospira investment the Hospira deal 3
Slide 4: ICU Medical — Pre-Transaction
ICU Medical — Pre-Transaction We are a $375M+ revenue publicly traded global medical device Total Revenues Adjusted EBITDA company (NASDAQ: ICUI) developing products and technologies $134 addressing unmet clinical needs in three segments: $379 $114 $342 Infusion Therapy 2016 Revenues $74 Industry le
Slide 5: Reasons to Consider Investing—Pre Transaction
Reasons to Consider Investing—Pre Transaction > High percentage of “sticky,” recurring revenues > Continued EPS and EBITDA growth Key Strategic Issues > International opportunities are increasing due to adoption >Reliance on Hospira of needlefree technology and Closed-System Transfer >Scale vs. othe
Slide 6: Closed Hospira Infusion Systems Acquisition from Pfizer
Closed Hospira Infusion Systems Acquisition from Pfizer 2/3/17: Natural Evolution of a Productive Partnership > Complementary Product Portfolios will 20+ Years of Working Together provide customers with a full suite of IV therapy devices and solutions + > Unified distribution channel with a full pro
Slide 7: Reasons to Consider Investing—Post Transaction
Reasons to Consider Investing—Post Transaction > High percentage of “sticky,” recurring revenues Same “sticky” revenues when commercial execution improves > Continued EPS and EBITDA growth P&L w/large income statement and expense base for margin > International opportunities are increasing due to ad
Slide 8: ICU Medical Infusion Therapy Today
ICU Medical Infusion Therapy Today Dedicated Administration Set Components • Y-sites • Bulk connectors Non-Dedicated Administration Sets And Accessories Finished Goods • Needlefree connectors • Gravity & extension sets • Disinfecting caps 8
Slide 9: ICU Infusion Therapy with Hospira
ICU Infusion Therapy with Hospira IV Solutions • Sterile solutions, irrigation solutions, and certain nutritionals Dedicated Administration Sets. Finished Goods And Components • Y-sites • Bulk connectors Infusion Pumps/Sets/Software • Large volume, ambulatory & PCA pumps Non-Dedicated Administration
Slide 10: Pre-Deal ICU Medical Direct and Key Partner IV Sales
Pre-Deal ICU Medical Direct and Key Partner IV Sales Salt Lake City San Clemente Ensenada Primary Corporate Operations 10
Slide 11: Post-Deal ICU Medical Direct and Key Partner IV Sales
Post-Deal ICU Medical Direct and Key Partner IV Sales Chicago Salt Lake City San Clemente Austin Ensenada Dominican Republic OEM Partnership Costa Rica in Asia Primary Corporate Operations 11
Slide 12: Leading Brands in Major Product Categories
Leading Brands in Major Product Categories Global Infusion Pumps Global IV Sets and Accessories North America-Only IV Solutions Includes large volume pumps, Includes gravity sets, connectors, closed Includes sterile solutions, irrigation Description ambulatory pumps, PCA pumps, system drug transfer
Slide 13: Breadth of Product Line
Breadth of Product Line Pharmacy Infusion/Bedside OR/ICU > Closed System Transfer Devices > IV Pumps, Solutions and > Hemodynamic Monitoring Systems (CSTDs) Dedicated Sets to Assess Patient Fluid Status > Automated Compounding Systems, > IV Safety Software (MedNet) > IV Pumps, Solutions & Anesthesia
Slide 14: ICU Medical and Hospira Infusion Systems Innovations
ICU Medical and Hospira Infusion Systems Innovations Infusion Systems & Software Oncology Systems & Disposables: SapphireTM Plum 360® LifeCare PCA ® Hospira MedNet ® Software 6.1 SapphirePlusTM The DianaTM Compounding Workflow System and ChemoLock® Closed System Transfer Device (CSTD) Infusion Dispo
Slide 15: Innovation Leads to Growth in Oncology
Innovation Leads to Growth in Oncology Total Revenues > From Preparation and Transportation, to Administration and $39.3 Disposal, our oncology portfolio helps keep pharmacists, technicians, and nurses safer from hazardous drug exposure and in compliance with industry guidelines, including USP <800>
Slide 16: Transition/Integration
Transition/Integration Legacy ICU Medical management team will keep Newer ICU Medical team members to focus on running the day-to-day ICU business integration, augmented by new Hospira colleagues • Alison Burcar, VP/GM of Infusion—21 years at ICU • Christian Voigtlander, VP of Business Development (
Slide 17: Transaction Terms
Transaction Terms > ICU Medical will acquire Hospira Infusion Systems (HIS) business Acquired Business from Pfizer Purchase Price > Up to $900 million > $400 million equity: 3.2 million newly issued shares ~ $125. Consideration Pfizer obtains 16.6% primary ownership position > $275 million in cash E
Slide 18: Estimated Opening Balance Sheet, February 2017
Estimated Opening Balance Sheet, February 2017 February Cash Balance Forecast $445 million Financing $75 million Cash Paid to Pfizer and Transaction Fees $275 million Cash at Close $245 million Net Cash at Close $170 million > Conservative balance sheet to ensure ability to fund operational improvem
Slide 19: 2017 Combined Forecast
2017 Combined Forecast 2017 Combined Revenue* Guidance $1.2 billion - $1.25 billion 2017 Combined Adjusted EBITDA/EPS Guidance * Excludes OEM contract manufacturing business of ~$50M and pre-close Hospira legacy performance from January 1, 2017 to February 2, 2017 19
Slide 20: 2018 Adjusted EBITDA Run Rate Goal
2018 Adjusted EBITDA Run Rate Goal 2017 Guidance Midpoint $170 million Plus Synergies started 2017, realized 2018 ~ $30-$35 million Plus Transition from TSA’s/additional synergies started 2018 ~ $35 million Plus impact of normal ICU Medical direct growth and new ~ $10 million customer wins 2018 Adju
Slide 21: What to Expect in 2017
What to Expect in 2017 > 2017 will be a bumpy year, complex separation from PFE and integration into ICU, in particular for IT • Significant stand up costs in separation from PFE, some will be duplicative to TSA costs as we prepare for exit > First few quarters unlikely to be sequentially predictive
Slide 22: Reasons to Consider Investing—Post Transaction
Reasons to Consider Investing—Post Transaction > Continued high percentage of “sticky,” recurring revenues > P&L w/large income statement and expense base for margin improvement > International opportunities are increasing. Direct business now in 18 countries vs. 7 > Tailwinds and policy making driv
Slide 23: ICU Medical, Inc. Investor Presentation (NASDAQ:ICUI)
ICU Medical, Inc. Investor Presentation (NASDAQ:ICUI) March 2017