Steris Plc (ireland) · NYSE:STE
Steris Plc (ireland) — STERIS — GARP Investors Conference 2004
27 slides from Steris Plc (ireland)'s conference presentation, Jun 16, 2004
Slide 1: GARP Investors Conference
GARP Investors Conference June 16, 2004 Les C. Vinney, STERIS President and CEO
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: STERIS's Path to Growth
STERIS’s Path to Growth INITIAL GROWTH ACQUISITIONS REORGANIZATION 1987 Start up STERIS 1995 STERIS 2000 STERIS Today Leader in Technologies to Control Infection and Contamination Positioned For Growth
Slide 4: Sales by Business Segment
Sales by Business Segment Fiscal Year Ended March 31, 2004 (Dollars in millions) HEALTHCARE ($753) 69% LIFE SCIENCES ($246) 23% STERIS ISOMEDIX SERVICES ($88) 8%
Slide 5: Key Industries Served
Key Industries Served HEALTHCARE Surgical Support Sterile Processing Applied Infection Control LIFE SCIENCES Pharmaceutical Production Research Defense and Industrial STERIS ISOMEDIX SERVICES (CONTRACT STERILIZATION)
Slide 6: Investment Considerations
STERIS a > Investment Considerations
Slide 7: Investment Considerations
Investment Considerations A technology leader Diversified and recurring revenue stream Strong competitive positions Strong financial and operating platform Improving market dynamics
Slide 8: A Technology Leader
A Technology Leader Broad based technologies… Gamma Peracetic Acid Sterilization EtO Sterilization Steam Sterilization VHP ® Sterilization Skin Care Washing Systems Surface Cleaning Chemistries Delivered through capital equipment chemistries and services… Make STERIS a leader
Slide 9: Diversified and Recurring Revenue Stream
Diversified and Recurring Revenue Stream Capital equipment drives… Consumables… and Services… 51% of fiscal 2004 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 10: Strong Competitive Positions
Strong Competitive 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
Slide 11: 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 12: 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 13: Strategic Direction
STERIS" B > Strategic Direction
Slide 14: Sources of Growth
Sources of Growth Earnings Power EXTERNAL INTERNAL Improving market dynamics and growing awareness of the need for infection control Strategic Actions to Drive Growth and Financials
Slide 15: Our Growth Strategy
Our Growth Strategy Enhance our revenue stream by continuing to diversify by product, service, market and geography Increase recurring revenues Leverage our channel Introduce new technologies Adapt our technologies Expand internationally
Slide 16: Increase Recurring Revenues
Increase Recurring Revenues Large revenue opportunity in our own installed base Capture consumable opportunity Aggressively grow service New capital equipment products will have an associated proprietary consumable Greater penetration of chemistries in Life Sciences
Slide 17: Chemistry in Life Sciences—New One Solution RTU
Chemistry in Life Sciences—New One Solution RTU Ready-to-Use chemistry designed to replace concentrate chemistries that require dilution and transfer Eliminates processing steps and contamination risk Reduces labor cost Expands STERIS’s chemistry offering in Life Sciences
Slide 18: 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 19: Introduce New Technologies
Introduce New Technologies R&D spending to approximate $30 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 pro
Slide 20: New Product - Reliance Endoscope Processing System
New Product - Reliance® Endoscope Processing System Submitted to FDA for 510k Approval Available for sale in Europe Approved for use in Canada Registration pending in Australia STERIS’ first high level disinfection system for flexible endoscopes in GI Suite Can process two instruments simultaneously
Slide 21: Adapt Our Technologies
Adapt Our Technologies CURRENT FUTURE POSSIBILITIES Exploring new applications related to Anthrax contamination Joint research on defense applications for biological and chemical warfare Joint research in space applications Transportation Hotel and building decontamination Food and beverage packagin
Slide 22: Adapt Our Technologies — Key Application
Adapt Our Technologies — Key Application Decontamination of State Department building SA32 mail processing facility. Used STERIS proprietary technology, equipment and expertise First validated process for treating anthrax contaminated buildings
Slide 23: International Expansion Opportunities
International Expansion Opportunities Fourth Quarter Fiscal 2004 REVENUE MIX BY GEOGRAPHY United States 76% International 24% Market size is equivalent to U.S. Focused on key European markets Acquisitions to play strategic role Leading-edge technologies
Slide 24: Recent Results
STERIS" B > Recent Results
Slide 25: Net Quarterly Revenues
Net Quarterly Revenues dollars in millions 12% Growth in Fiscal 2004 $300 $250 $200 $150 $100 $50 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY2001 FY2002 FY2003 FY2004
Slide 26: Quarterly Diluted Earnings Per Share
Quarterly Diluted Earnings Per Share 19% Growth in Fiscal 2004 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY2001 FY2002 FY2003 FY2004 * A charge in the fourth quarter of fiscal 2001 resulted in a loss
Slide 27: Summary
Summary A technology leader with strong competitive positions Diversified and recurring revenue stream Improving market dynamics Financial flexibility Bright future