Steris Plc (ireland) · NYSE:STE
Steris Plc (ireland) — STERIS — SG Cowen Health Care Conference 2004
28 slides from Steris Plc (ireland)'s conference presentation, Mar 10, 2004
Slide 1: SG Cowen Health Care Conference
SG Cowen Health Care Conference March 11, 2004 Laurie Brlas Senior Vice President and CFO
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 REORGANIZATION ACQUISITIONS INITIAL GROWTH STERIS 2000 STERIS Today Leader in Technologies to Control Infection and Contamination Positioned For Growth STERIS 1995 1987 Start up
Slide 4: Sales by Business Segment
Sales by Business Segment Fiscal Year Ended March 31, 2003 (Dollars in millions) HEALTHCARE ($697) LIFE SCIENCES ($195) 72% 20% 8% STERIS ISOMEDIX SERVICES ($79)
Slide 5: Surgical Support and Key Industries Served
Surgical Support Sterile Processing Applied Infection Control Pharmaceutical Production Research Defense and Industrial Key Industries Served HEALTHCARE > > > LIFE SCIENCES > > > STERIS ISOMEDIX SERVICES (CONTRACT STERILIZATION)
Slide 6: Investment Considerations
STERIS B > Investment Considerations
Slide 7: A Technology Leader
A technology leader Diversified and recurring revenue stream Strong competitive positions Strong financial and operating platform Improving market dynamics Investment Considerations > > > > >
Slide 8: A Technology Leader
A Technology Leader Broad based technologies… Washing Systems Surface Cleaning Chemistries Skin Care Sterilization (r) VHP Steam Sterilization EtO Sterilization Peracetic Acid Sterilization Gamma Delivered through capital equipment chemistries and services… Make STERIS a leader
Slide 9: Diversified and Recurring Revenue Stream
and Services… Diversified and Recurring Revenue Stream Consumables… Capital equipment drives… for a variety solution 52% of fiscal 2003 revenues were higher margin, recurring consumables and services
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 compani
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 awaren
Slide 13: Strategic Direction
STERIS a > Strategic Direction
Slide 14: Sources of Growth
Sources of Growth Earnings Power EXTERNAL Improving market dynamics and growing awareness of the need for infection control INTERNAL 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 (r) technology advancement into new product uses • Prion Decontamination Segmented
Slide 20: New Product - Reliance Endoscope Processing System
New Product – Reliance (r) Endoscope Processing System Submitted to FDA for 510k Approval Available for sale in Europe Registration pending in Canada and Australia STERIS’ first high level disinfection system for flexible endoscopes in GI Suite Can process two instruments simultaneously Addresses ke
Slide 21: Adapt Our Technologies
Adapt Our Technologies CURRENT Exploring new applications related to Anthrax contamination Joint research on defense applications for biological and chemical warfare Joint research in space applications FUTURE POSSIBILITIES 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 Third Quarter Fiscal 2004 REVENUE MIX BY GEOGRAPHY United States 78% International 22% Market size is equivalent to U.S. Focused on key European markets Acquisitions to play strategic role Leading-edge technologies
Slide 24: Recent Results and Outlook
STERIS a > Recent Results and Outlook
Slide 25: Net Quarterly Revenues
Net Quarterly Revenues dollars in millions $300 $250 $200 $150 $100 $50 12% Growth in Fiscal 2004 Third Quarter 4th Qtr FY2004 3rd Qtr FY2003 2nd Qtr FY2002 FY2001 1st Qtr
Slide 26: Quarterly Diluted Earnings Per Share
Quarterly Diluted Earnings Per Share $ 0.40 $ 0.35 $ 0.30 $ 0.25 $ 0.20 $ 0.15 $ 0.10 $ 0.05 $ 0.00 26% Growth in Fiscal 2004 Third Quarter 4th Qtr FY2004 of $0.24 per share 3rd Qtr FY2003 2nd Qtr FY2002 FY2001 1st Qtr A charge in the fourth quarter of fiscal 2001 resulted in a loss *
Slide 27: Outlook
Outlook Fiscal 2004 ending March 31, 2004 Approximately 12% revenue growth Earnings approximately $1.33 to $1.35 per diluted share Fiscal 2005 ending March 31, 2005 Approximately 9% Revenue Growth Earnings approximately $1.50 per diluted share
Slide 28: Summary
Summary A technology leader with strong competitive positions Diversified and recurring revenue stream Improving market dynamics Financial flexibility Bright future