Slide 1: Teleflex Incorporated Fourth Quarter 2021 Earnings Conference Call
Teleflex Incorporated Fourth Quarter 2021 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 February 24, 2022 either on the Teleflex website or by telephone. The call
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
Note on Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, our expectation that market building activities related to our UroLift® System in Japan continue during the first quarter of 2022; our forecasted 2022 GAAP and constant currency r
Slide 5: Executive Overview
Executive Overview Liam Kelly - Chairman, President and CEO 5
Slide 6: Q4'21 and Full Year Highlights
Q4'21 and Full Year Highlights ◦ Q4'21 constant currency revenue grew 7.9% year-over-year Q4 Performance ◦ Q4'21 adjusted gross and operating margins expanded significantly year-over-year Summary ◦ Q4'21 adjusted earnings per share increased 10.8% year-over-year ◦ Revenue increased 8.8% vs. prior ye
Slide 7: Q4'21 Segment Revenue Review
Q4'21 Segment Revenue Review Three Months Ended % Increase/ Decrease Dollars in Millions Reported Currency Impact Constant Currency December 31, 2021 December 31, 2020 Revenue Growth Growth Americas $451.7 $419.5 7.7% 0.1% 7.6% EMEA $164.5 $161.4 1.9% (2.9)% 4.8% Asia $78.5 $78.6 (0.1)% (0.6)% 0.5%
Slide 8: Q4'21 Global Product Category Revenue Review
Q4'21 Global Product Category Revenue Review Three Months Ended % Increase/ Decrease Dollars in Millions Reported Currency Impact Constant Currency December 31, 2021 December 31, 2020 Revenue Growth Growth Vascular Access $193.0 $182.5 5.8% (0.6)% 6.4% Interventional $114.9 $106.7 7.7% (0.5)% 8.2% A
Slide 9: Clinical and Commercial Updates
Clinical and Commercial Updates Interventional Urology: National DTC Campaign Update • 2021 DTC campaign generated nearly double the impressions of 2020 campaign. • Brand awareness for targeted men w/ BPH increased by 60% to 16% following 2021 campaign. • Continuing to invest in 2022 DTC campaign. I
Slide 10: Clinical and Commercial Updates
Clinical and Commercial Updates Interventional: Expanded Indication for CTO-PCI • FDA 510(k) clearance received for use of specialty catheters and guidewires(1) in chronic total occlusions (CTOs), based on successful results from a peer-reviewed, prospective, single-arm IDE study that enrolled 150 p
Slide 11: Financial Overview
Financial Overview Thomas Powell - Executive VP and CFO 11
Slide 12: Q4'21 Financial Review
Q4'21 Financial Review ◦ Revenue increased 7.1% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 7.9% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.1%, up 120 bps year-over-year Gross margin ◦ Adjusted gross margin of 58.8%, up 80 bps year-over-year ◦
Slide 13: 2022 Financial Guidance Summary
2022 Financial Guidance Summary 2022 Guidance Low High GAAP Revenue Growth 2.3% 3.8% Impact of Foreign Exchange Rate Fluctuations (1.7)% (1.7)% Constant Currency Revenue Growth (1) 4.0% 5.5% Adjusted Gross Margin 59.75% 60.25% Adjusted Operating Margin 27.75% 28.25% Adjusted EPS $13.70 $14.30 Adjust
Slide 14: Key Assumptions for 2022 Financial Guidance
Key Assumptions for 2022 Financial Guidance Outlook Includes: • Expect less impact from COVID-19 global pandemic in 2022 versus 2021 • Euro to U.S. Dollar exchange rate assumed to be approximately 1.12 for full year 2022 • Adjusted weighted average shares assumed to be approximately 47.7 million for
Slide 15: Key Takeaways
Key Takeaways Diversified product Continue to execute on 2022 financial guidance portfolio enabled our strategy to drive contemplates gross Teleflex to deliver high- durable growth with margin expansion single digit constant investment in organic despite meaningful currency growth even growth opport
Slide 16: Thank You
16 Thank You 1616 Teleflex, the Teleflex logo, are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries. © 2021 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 Intangible amortization expense - Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated use
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 December 31, 2021 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
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 December 31, 2020 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin
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) Year ended December 31, 2021 Selling, general Diluted Research and Effective earnings per Gross and Operating Income before Income tax development income tax share from margin administ
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) Year ended December 31, 2020 Selling, general Diluted Gross Research and Effective earnings per and Operating Income before Income tax margin development income tax share from administ
Slide 25: Appendix A tickmarks
Appendix A tickmarks a. Restructuring, restructuring related and impairment items – For the three months ended December 31, 2021, pre-tax restructuring charges were $1.3 million; pre-tax restructuring related charges were $9.2 million. For the three months ended December 31, 2020, pre-tax restructur
Slide 26: Appendix B – Restructuring and Other Similar Cost Savings Initiatives
Appendix B – Restructuring and Other Similar Cost Savings Initiatives Estimated Total Actual Results through Estimated remaining Dollars in Millions December 31, 2021 Restructuring charges - Restructuring plans (1) $102 - $110 $99 $3 - $11 Restructuring charges - Respiratory divestiture plan 5-8 3 2
Slide 27: Appendix B – Disclosure
Appendix B – Disclosure Respiratory divestiture plan In 2021, in connection with the Respiratory business divestiture, we committed to a restructuring plan designed to separate the manufacturing operations that will be transferred to Medline from those that will remain with Teleflex, which includes
Slide 28: Appendix B – Disclosure
Appendix B – Disclosure Additional details, including estimated charges expected to be incurred in connection with our restructuring programs and the anticipated completion dates, are described in Note 5 to the condensed consolidated financial statements in our 10-K filing. Pre-tax savings may be re
Slide 29: Appendix C – December 31, 2021 Year-to-Date GPO and IDN Review
Appendix C – December 31, 2021 Year-to-Date GPO and IDN Review Group Purchasing Organization Update Q1’21 Q2'21 Q3'21 Q4'21 Renewed agreements 6 9 10 4 New agreements 1 0 3 2 Existing agreements lost 1 1 2 0 IDN Update Q1’21 Q2'21 Q3'21 Q4'21 Renewed agreements 13 8 4 5 New agreements 7 13 5 7 Exist
Slide 30: Appendix D - 2022 Adj. Gross Margin Guidance Reconciliation
Appendix D - 2022 Adj. Gross Margin Guidance Reconciliation 2022 Guidance Low High Forecasted GAAP Gross Margin 55.85% 56.35% Estimated restructuring, restructuring related and impairment items 0.90% 0.90% Estimated acquisition, integration, and divestiture related items —% —% Estimated intangible a
Slide 31: Appendix E – Reconciliation of 2022 Adjusted Earnings Per Share Guidance
Appendix E – Reconciliation of 2022 Adjusted Earnings Per Share Guidance 2022 Guidance Low High Forecasted GAAP Diluted Earnings Per Share from continuing operations $8.90 $9.50 Estimated restructuring, restructuring related and impairment items, net of tax $0.74 $0.74 Estimated acquisition, integra
Slide 32: Appendix F – Revenue Schedules for Divested Respiratory Assets
Appendix F – Revenue Schedules for Divested Respiratory Assets ($000s) As Reported Divested respiratory business Adjusted Q1 613.6 33.6 580.0 Q2 652.5 32.4 620.1 2019 Q3 648.3 30.1 618.2 Q4 681.0 33.9 647.1 FY $2,595.4 $130.0 $2,465.4 Q1 630.6 36.7 593.9 Q2 567.0 35.8 531.2 2020 Q3 628.3 29.8 598.5
Slide 33: 2021 Segment Revenue Review
2021 Segment Revenue Review Twelve Months Ended % Increase/ Decrease Dollars in Millions Reported Currency Impact Constant Currency December 31, 2021 December 31, 2020 Revenue Growth Growth Americas $1,659.3 $1,465.0 13.3% 0.4% 12.9% EMEA $606.8 $584.9 3.8% 4.4% (0.6)% Asia $297.8 $267.0 11.5% 4.9%
Slide 34: 2021 Global Product Category Revenue Review
2021 Global Product Category Revenue Review Twelve Months Ended % Increase/ Decrease Dollars in Millions Reported Currency Impact Constant Currency December 31, 2021 December 31, 2020 Revenue Growth Growth Vascular Access $700.2 $657.7 6.5% 1.9% 4.6% Interventional $427.5 $382.4 11.8% 1.9% 9.9% Anes
Slide 35: 2021 Financial Review
2021 Financial Review ◦ Revenue increased 10.7% year-over-year on a GAAP basis Global revenue growth ◦ Revenue increased 8.8% year-over-year on a constant currency basis ◦ GAAP gross margin of 55.2%, up 300 bps year-over-year Gross margin ◦ Adjusted gross margin of 59.4%, up 270 bps year-over-year ◦