Convatec Group Plc · LSE:CTEC
Convatec — Investor Day (November 2022)
96 slides from Convatec's investor day presentation, Nov 17, 2022
Slide 1: FISBE 2.0: Delivering sustainable and profitable growth
& convatec FISBE 2.0 Delivering sustainable and profitable growth 17 November 2022
Slide 2: Disclaimer
For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed before, during or after the Presentation meeting. This information, which does not purp
Slide 3: Agenda
2.00 - 2.25pm Introduction and overview of FISBE 2.0 2.25 - 3.45pm AWC, OC & CC category presentations & Q&A Break IC category presentation, simplification & productivity 4.10 - 5.10pm roadmap and financial prospects 5.10 - 5.30pm CELT Q&A Drinks + Demonstrations 3
Slide 4: Presenters and also attending
Presenters Also attending and Q&A 4
Slide 5: Foundations in place to deliver sustainable and profitable growth
Foundations in place to deliver sustainable and profitable growth Leader in attractive chronic care categories with a differentiated and complementary portfolio Strengthened competitive position and Convatec is pivoting FISBE 2.0 will deliver sustainable mid-single digit organic revenue growth and o
Slide 6: Leader in attractive chronic care categories
Context Size of category Growth of category Position 2021 Revenue3 ($m) $7bn ~5% #2 Globally2 592 Advanced Wound Care1 $3bn Ostomy ~4% #3 Globally 538 $2.2bn Continence ~4% #1 in US 387 $1.6bn Infusion Care4 ~8% #1 Globally 334 1) Excludes Other External Devices where Convatec has no presence 2) Pos
Slide 7: Shared technologies and capabilities
Context R&D Quality & Operations Sales, Marketing & Service Shared Technologies - Adhesives & coatings - Extrusion - CRM platform - Anti-infection - Injection moulding - Omnichannel infrastructure - Digital & mechatronics - Automation & robotics - Global delivery tracking system Shared Capabilities
Slide 8: Success with FISBE
Performance Success with FISBE More chronic focused Increased innovation Improved execution Revenue 2018 2022 Complaints/million Calls /day/sales rep3 Non- $1.8bn 13% 7% 2 Forthcoming2 8 Current/ Chronic major forthcoming2 launches major launches 93% 66 ~7 Chronic 87% ~5 39 4 New patent 78 New paten
Slide 9: Organic sales growth, adjusted EBIT growth and margin
Performance 2018 2019 2020 2021 2022 5.4- 4.2% 5.3% 5.8% 0.2% 2.3% Organic Sales Growth > 5.4% 0.9% Adjusted EBIT Growth1 % > -7.8% -14.3% Adjusted EBIT margin % > 23.4% 19.4% 18.5% 17.7% 19+% 1) Constant currency 9
Slide 10: FISBE 1.0 to FISBE 2.0
Strategy FISBE 1.0 – 2019-2022 FISBE 2.0 – 2023 into the medium term Focus Focus on our key markets and categories on strengthening customer loyalty in key markets and categories Innovate Innovate in our work and trusted solutions to increase vitality and velocity of trusted medical solutions Simpli
Slide 11: Drive sustainable revenue growth
Customer journey insight • Comprehensive mapping - identify pain points Improve customer experience Drive • Design and provide quality products and services to improve sustainable Customer Experience (‘CX’) revenue growth Strengthen customer loyalty • Measure and improve Net Promoter Score (‘NPS’) s
Slide 12: Deeper innovation pipeline and reduced cycle time
Deeper innovation pipeline Reduce cycle time2 Innova Set for current/forthcoming1 Esteem Matrix EWIS Tandem Major launches – 2.0 AC Mobi 8 Gentle Cath Air Conva Foam Avelle 2.0 Gentle Cath Air ~32 months -20% ~26 months Male Female 2023+ Current • Leverage IDEAL Rich Pipeline – +8 Infusion set Next
Slide 13: Adjusted EBIT margin expansion levers
Commercial • Leverage salesforce Centre of Excellence Excellence • Launch global brands consistently Adjusted • Plant Network Optimisation Global Quality & EBIT • Automation and robotics Operations (GQO) margin • Continuous Improvement expansion • Global Business Services – finance, IT, expanding sc
Slide 14: Build capabilities and strengthen winning culture
Capabilities Strengthen winning culture Embed • High-Performing Team development • Marketing CoE • Cultivate talent • Utilise Pricing CoE broadly - Career pathways • Leverage Quality CoE across the Group - Mentoring & coaching Build - Reward & recognition • Customer Journey & NPS • Diversity, Equity
Slide 15: Deliver strategic initiatives and ESG
Deliver strategic initiatives ESG • Reduce complaints per • Sustain strong safety million >10%/yr record • GBS deployment • New product vitality • 40% female in senior >30% by 2025 management by 2025 • Continuous improvement projects Pioneering • Voluntary T/O <10% trusted medical solutions to • Cap
Slide 16: convatec
convatec
Slide 17: Medium-term targets
Strategy Medium-term targets Opportunity Medium-term outcome Sustainable Expanding EBIT1 Potential M&A to Sustainable & top-line growth margin enhance growth profitable growth Strengthen positions 4-6% Double-digit Mid-twenties - Technology organic revenue EPS1 and FCF1 EBIT1 margin - Geography grow
Slide 18: Session overview
2.25 – 3.45pm 4.10 – 5.30pm IC, simplification & productivity AWC,OC & CC presentations & Q&A roadmap, financial prospects & Q&A 18
Slide 19: Strengthening our leading Advanced Wound Care business
Strengthening our leading Advanced Wound Care business David Shepherd President, Advanced Wound Care
Slide 20: Advanced Wound Care growth drivers
We expect to achieve mid to high single- digit organic revenue growth by: 1) Single use negative pressure wound therapy 20 2) Wound biologics segment as defined by SmartTRAK. Includes skin substitutes, active collagen dressings and topical drug delivery.
Slide 21: Market size and growth prospects
Context Market dynamics Market size and growth prospects1 ‘22-’27 circa 5% Projected CAGR ‘22-’27 Prevalence of Hard- 100m patients p.a. 9.7 to-heal wounds is globally increasing 1.0 19.8% 7.1 3.1 6.7% Wound healing rates >50m unhealed $billions 5.6 0.4 need to improve despite therapy2 suNPWT 0.2 2.
Slide 22: Leading positions in segments
Context Leading positions in segments Attractive growth brands Geographically diverse suNPWT 300.0 1% Wound Biologics1 3% GEM 21% Alginates & Fiber 250.0 16% #1 Foams 17% #5 InnovaMatrix®AC 200.0 27% Other Advanced N.America 2 Wound 150.0 Dressings 20% #1 100.0 Europe 52% Antimicrobials 44% #1 50.0
Slide 23: Improving performance, FISBE 1.0 progress
Performance Improving performance FISBE 1.0 progress achieved Organic Focus 650 9.2% growth 0.5% -2.7% >100% 0.0% Divested skincare 20% 600 -50.0% Increase in Sales SKU rationalisation team in China Reported revenue ($m) -100.0% 550 Innovate -150.0% • Acquired Triad Life Sciences 500 592 • Developed
Slide 24: Foam: new product launch into suNPWT
FISBE 2.0: Enhancing portfolio Foam – new product launch into attractive segment suNPWT A family of foam dressings to serve every type of wound Expected Approval US Europe Dec’22 H1 ’24 24
Slide 25: Winning in US with InnovaMatrix
FISBE 2.0: Enhancing portfolio InnovaMatrix® PD InnovaBurnTM Wave 1 Winning in US New products with US regulatory approval Sept, ‘22 Wave 2 Global Expansion 25
Slide 26: Improving customer experience
FISBE 2.0: Improving CX Patient centricity features embedded in packaging Wound Hygiene QR codes specific to the 1) ConvaFoam™ dressing being used Journal of Wound Care Nurse Ambassadors (JWC) Consensus Educational Congress Application and educational Documents courses videos and user guides Bedside
Slide 27: Wound Hygiene
7) Wound Hygiene 4 convatec — forever caring —
Slide 28: Sales Force Excellence
FISBE 2.0: Driving productivity Global targeting, segmentation & business analytics Microsoft Dynamics CRM Sales Force Inside Salesforce structure in platform roll-out Europe and N.America Excellence Regional Sales Training Global Salesforce incentive capabilities compensation 28
Slide 29: Advanced Wound Care growth drivers
We expect to achieve mid to high single- digit organic revenue growth by: 1) Single use negative pressure wound therapy 29 2) Wound biologics segment as defined by SmartTRAK. Includes skin substitutes, active collagen dressings and topical drug delivery.
Slide 30: Delivering sustainable global growth in Ostomy Care
Delivering sustainable global growth in Ostomy Care Bruno Pinheiro President, Ostomy Care
Slide 31: Ostomy Care growth drivers
We expect to achieve mid single-digit organic revenue growth expansion by: 31
Slide 32: Market size and growth prospects
Context Market dynamics Market size and growth prospects ‘21-25 CAGR: ~4% Projected CAGR ‘21-’25 Aging population & 4.0 increase in life expectancy 3.5 3.4 $ billions 3.0 3.0 0.8 ~6% 0.6 GEM2.5 Rise in underlying conditions (obesity, cancer) 2.0 1.7 ~3% Europe 1.5 1.6 1.0 Improved access in Emerging
Slide 33: Large and loyal patient base
Context Market - Large and loyal patient base Multiple stakeholders drive product selections Market - Revenue by segment ~7% ~11% >80% Urostomy 20% 30% Acute Post-Acute Community Ileostomy Colostomy 50% 33
Slide 34: Geographically diverse, reputable brands
Context Geographically diverse Top 1 or 2 player in key markets Reputable brands Products GEM 23% Poland Colombia 29% N.America Service Italy Czech Republic Brazil Home Services Group Europe 48% Revenue United States China 34
Slide 35: Improving performance, FISBE 1.0 progress
Performance Improving performance FISBE 1.0 progress achieved Innovate Organic 650 1.9% 1.2% 1.7% 0.0% • Progressed pipeline: Convexity – Esteem 2.0 12 growth CAGR 19-21 • Essentials refresh 600 546 550 525 526 -500.0% Non- (9.6)% 500 Reported revenue ($m) Convatec products Simplify 450 -1000.0% • 6
Slide 36: FISBE 2.0: Enhancing portfolio
FISBE 2.0: Enhancing portfolio Delivering superior service More patient-centric product offering across continuum of care • Further innovation with convexity • ~300K patients enrolled in US, consistent growth • Leveraging differentiated Moldable technology globally • 70% increase over 2019 first ord
Slide 37: FISBE 2.0: Improving CX
FISBE 2.0: Improving CX Partnering with HCPs Strengthening patient loyalty • ‘Go Broad Go Deep’ China strategy inclusive of • Expansion of services in LATAM e-commerce • Implementation of me+ patient program • Grow awareness on standard-of-care via professional education 37
Slide 38: FISBE 2.0: Driving productivity
FISBE 2.0: Driving productivity Integrating our presence from ‘Hospital to Home’ Improving commercial effectiveness with HCPs with consumers • Key account focus with consistent targeting and • Drive loyalty with patient-centric portfolio and contract negotiations me+ program • Sales training with ev
Slide 39: Ostomy Care growth drivers
We expect to achieve mid single-digit organic revenue growth expansion by: 39
Slide 40: Delivering a remarkable experience for continence customers
Delivering a remarkable experience for continence customers Seth Segel President, Continence Care and Home Services Group (HSG)
Slide 41: Continence Care growth drivers
We expect to achieve mid single-digit organic revenue growth through: 41 Home Services Group (HSG). Global Emerging Markets (GEM).
Slide 42: Intermittent catheter segment size and growth
Context Intermittent Catheter usage Segment size and growth prospects • Customers require manual intervention to void their bladders daily (3-6x/day) Closed system Uncoated • In-home usage, typically 13% 20% without any assistance Discreet • Enduring relationships via 24% chronic conditions1 and dis
Slide 43: Comprehensive coverage of service and product
Context Service Product Comprehensive coverage Catheter Customer Stage Influencer New Existing US Service share1 US Manufacturer share End-Users (Customers) ✓ ✓ Specialised Field Home & Inside Teams Services ~40% Group Clinicians/HCP’s Cure Medical + (Referrers)2 ✓ ✓ GentleCath 23% ~23% Other Suppli
Slide 44: Tangible impact for chronic care customers
Context Tangible impact for chronic care customers Relational Blended 3-5 year relationship tenure Daily/monthly link with end-users Personalised service ‘World Class’ Net Promoter Score of 80%1 In-network with >1,700 US health plans maximises patient Extensive coverage serviceability High Retention
Slide 45: Growth in chronic healthcare treatment in the home
Context Acute Post-Acute Home/ ✓ The future (Hospital) (Home Health, Long-term Community Care, Physician Office) growth in chronic healthcare 1 - 5 days 1mo – Lifetime treatment is Continence (avg = 3-5 years) in the home Care (“Catheters”) <5% >95% ✓ COVID-19 has accelerated 1 - 5 days 30 - 90 days
Slide 46: Forward integrated solutions for high retention
Context Forward integrated Expansive and growing US and HSG focused solutions for high retention portfolio breadth Geographic expansion Next generation lubrication platform: Continence revenue in 2022 smooth, gliding, clean SERVICE: Recurring revenue in North America Advancing discreet portfolio via
Slide 47: Sustained performance, FISBE 1.0 progress
Performance Sustained performance FISBE 1.0 progress achieved Organic 400 3.1% 6.4% 5.4% 0.0% Focus growth 380 ✓ Sustained customer loyalty (World Class Net Promoter Score, 360 -50.0% ≤1% churn) Reported revenue ✓ Focusing on urinary catheters and ostomy, divested 340 -100.0% incontinence and nutrit
Slide 48: Attractive sub-segment: Discreet
FISBE 2.0: Enhancing portfolio Attractive sub-segment: GentleCath FeelClean Technology Cure Medical Ready-to-Use Discreet (water activated) (hydrogel) Non-FeelClean ✓ Quick and easy ✓ Social, emotional, Sticky Smooth functional design ✓ User-driven innovation and Scraping Gliding * usability Residue
Slide 49: FISBE 2.0: Improving CX
FISBE 2.0: Improving CX Further strengthening US European opportunity GEM opportunity ✓ Next generation operational ✓ Capitalise on Amcare’s ✓ Elevate focus on continence & technology efficiencies service turnaround – care significantly improve NPS ✓ Leverage commercial ✓ Accelerate Ostomy service ✓
Slide 50: Continence Care growth drivers
We expect to achieve mid single-digit organic revenue growth through: 50
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Slide 52: Break
Break We will begin again at 4.10pm
Slide 53: Leading in subcutaneous infusion delivery
Leading in subcutaneous infusion delivery Kjersti Grimsrud President, Infusion Care
Slide 54: Infusion Care growth drivers
We expect to achieve high single-digit organic revenue growth by: 54
Slide 55: Global leader in infusion sets for subcutaneous infusion
Convatec is the global leader in subcutaneous infusion sets Global leader in infusion sets for subcutaneous infusion therapies ) convatec People rely High quality on our products products delivered everyday annually Context Manufacturing sites (inc. highly automated & proprietary production lines) 5
Slide 56: Diabetes, Parkinson's, pain management and PID
Context Diabetes – Convatec is the market leader Parkinson’s Disease • >300m patients with diabetes - 3-4% growth • 8.5m patients - 6% growth¹ • Target group: Automated Insulin Delivery ~8% growth • Target group: Stage 3 & 4 patients prescribed with pump therapy Convatec is a leader with strong, lon
Slide 57: Market dynamics and growth prospects
Context Market dynamics Market size and growth prospects 11 Number of patients on pen and ’22-’32 CAGR pump therapy in US & EU (millions) 3.1% Growing 3-4% 10 prevalence growth of patients 9 8.0% 8 2.6 Underpenetrated 27% 7 2.1 Therapy Type I on pumps* Pumps 1.2 6 5 6.9 1.7% Multiple 5.8 6.0 Signifi
Slide 58: Infusion sets
Context Infusion sets ✓ Ensure safe delivery of insulin ✓ Changed every 2-3 days ✓ Soft or steel cannulas Continuous Durable Glucose Insulin Monitoring pump (CGM) 58
Slide 59: Components of the modular platform
Context Components of the modular platform Several segments leverage similar technologies ➂ Tubing Glucose monitor ➀ Inserter ➀➁ Infusion sets ➀➁➂➃ Insulin pumps Continuous AID Glucose Monitor Patch pumps Patch pumps ➃ Cannula ➁ Adhesive ➀➁➃ technology 59
Slide 60: Improving performance, FISBE 1.0 progress
Performance Improving performance FISBE 1.0 progress achieved Focus 400 10% 17% Organic 4% 0.0% growth 350 • Sustained leadership with infusion sets for diabetes -50.0% 300 Reported revenue ($m) 250 -100.0% Innovate 200 357 -150.0% 323 • EWIS launched in Europe and launching in the US 150 275 -200.0
Slide 61: InsetGuard technology and extended wear
FISBE 2.0: Enhancing portfolio ✓ No exposure to needle InsetGuard technology allows for safe and ✓ One-handed 90° insertion easy insertion ✓ Soft cannula ✓ 50% reduction in number of changes Extended wear ✓ Skin friendly adhesive patch technology allows up ✓ ~2kg less plastic waste/yr/patient to 7 d
Slide 62: Subcutaneous infusion for Parkinson's patients
FISBE 2.0: Enhancing portfolio Patients with Parkinson’s in the EU benefit from subcutaneous infusion of Apomorphine Several partnerships signed to expand beyond Europe Expected launch with AbbVie for investigational subcutaneous infusion of Levodopa/Carbidopa 62
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Slide 64: Infusion Care growth drivers
We expect to achieve high single digit organic revenue growth by: 64
Slide 65: The simplification and productivity roadmap
The simplification and productivity roadmap John Haller EVP, Chief Global Quality & Operations Officer
Slide 66: Global Quality & Operations margin levers
• Leverage salesforce Centre of Excellence • Launch global brands consistently • Plant Network Optimisation Global Quality & • Automation and robotics Operations (GQO) • Continuous Improvement • Global Business Services – finance, IT, expanding scope • Processes - standardise and simplify globally a
Slide 67: Manufacturing network by category
Advanced Ostomy Infusion Continence Wound Care Care Care Care Michalovce, Slovakia Deeside & Rhymney, UK Osted, Denmark Michalovce, Slovakia Haina, Dominican Republic Reynosa, Mexico Haina, Dominican Cure 3rd party Republic Eurotec, Netherlands Herlev, Denmark produced in China Memphis, USA Herlev,
Slide 68: Lost time injury rate and renewable electricity
Sustained low lost time injury rate Increasing use of renewable electricity 0.4 100% Lost time injury rate 0.35 (200,000 hours worked) 90% 80% 0.3 70% 0.25 60% 0.2 50% 100% 0.4 40% 0.15 73% 0.3 0.3 30% 0.1 0.2 44% 0.2 20% 0.05 10% 14% 13% 0% 4% 0 2018 2019 2020 2021 2022E 2023E 2018 2019 2020 2021 2
Slide 69: Decreasing complaints per million
Context Decreasing complaints per million 70 60 50 40 66 55 30 46 39 20 10 2019 2020 2021 2022 YTD 69
Slide 70: Customer experience resilience initiatives
Context Shipped On Time In Full Customer Experience 94% 93% 92% 90% 90% 88% 88% 86% 84% 84% Resilience initiatives 82% 81% 80% 78% 76% 74% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022(E) 70
Slide 71: FISBE 2.0: Simplification & Productivity
FISBE 2.0: Simplification & Productivity 71
Slide 72: Manufacturing strategy steps
FISBE 2.0: Simplification & Productivity ➀ ➁ ➂ ➃ Evaluate the Develop insource Refine outsource Evolve the footprint environment strategy strategy Invest in capacity, Manufacturing sites, Identify core Develop strategic consider dual site supplier network, competencies that partnerships with manufac
Slide 73: Facility investment timeline
FISBE 2.0: Simplification & Productivity Facility Fabrication Packaging Investment timeline Current State Osted, Denmark 2022+ Reynosa, Mexico 2023+ Deeside, UK 2023+ Michalovce, Slovakia 2024+ Haina, Dominican Republic 2025+ 73
Slide 74: Manual versus automated operation
FISBE 2.0: Simplification & Productivity Manual operation: Automated operation: 10 operators per shift 2 operators per shift 74
Slide 75: FISBE 2.0: Simplification & Productivity
FISBE 2.0: Simplification & Productivity 75
Slide 76: Flow wrap packaging project
FISBE 2.0: Simplification & Productivity Ideation Culture Example - Flow wrap packaging project • Ostomy products will start shipping in Q1 2023 • Positive feedback from customers on the changes • Reduction of packaging material consistent with our ESG agenda • Simplification and cost savings Curren
Slide 77: Quality, resilience and productivity benefit to margin
FISBE 2.0: Simplification & Productivity Enhanced quality Greater resilience Improved productivity Expected benefit to margin 77
Slide 78: Simplification and productivity
Simplification and productivity Jonny Mason Chief Financial Officer
Slide 79: Commercial excellence, GQO and G&A levers
Commercial • Leverage salesforce Centre of Excellence Excellence • Launch global brands consistently • Plant Network Optimisation • Automation and robotics • Continuous Improvement • Global Business Services – finance, IT, expanding scope G&A • Processes - standardise and simplify globally and end-t
Slide 80: Global Business Services key data
Context Key data - Migrated ~210 FTEs serving 70 countries to sites in Lisbon and Bogota >14k customer, supplier, colleague records created >12k customers in 9 languages ~200k invoices processed p.a. ~6k journals p.a. Reporting and forecasting needs for ~70 countries Expertise in cyber, business int
Slide 81: Automating and simplifying finance processes
Performance Automating - no touch customer payments Simplifying - reducing low value activity Policy change 85% 87% 47% 80% Avg: 730 65% Avg: 423 865 47% 636 719 701 492 455 454 Month 1 Month 7 Month 15 378 335 7k 14k P1 P2 P3 P4 P5 P6 P7 P8 P9 Monthly transactions Journals <5k • Increased product
Slide 82: Adjusted G&A, inflation and savings
Performance ~13% ~12% ~10% 2020 2021 2022E ◼ Adj G&A ($m) ◼Inflation est. ◼Savings G&A as % of sales 82
Slide 83: Ongoing GBS initiatives 2023/2024
FISBE 2.0: Simplification & Productivity Ongoing initiatives 2023/2024 • Expand service offering • Increase geographic coverage • Improve office utilisation • Reduce expense through flexible solutions • Self-help tools (e.g. ServiceNow) • Increase robotics / automation • Key processes deployed centr
Slide 84: Current GBS scope
FISBE 2.0: Simplification & Productivity Current GBS scope Record to report Tax Accounting Asset Interco General Cash & accounting Period end Reporting setup accounting accounting accounting Bank & close compliance Current GBS scope Source to pay Procure Vendor Purchase Goods Invoice Sourcing T&E Pa
Slide 85: Adjusted G&A as % of sales
FISBE 2.0: Simplification & Productivity ~14% Adj G&A as % of ~12% sales ~13% ~12% ~10% ~10% ~8% Improve each year ~7% ~6% ~4% ~2% 2020 2021 2022E Medium term 85
Slide 86: Attractive financial prospects
Attractive financial prospects
Slide 87: Organic growth and expanding EBIT margin
Sustainable top-line organic growth Expanding EBIT1 margin IC High single-digit AWC Mid to high single-digit CC Mid single-digit OC Mid single-digit 1) Adjusted 87
Slide 88: Higher-growth, higher-margin portfolio
Cure Incontinence + Higher-growth, higher-margin Portfolio focus + Triad + PCM - Hospital Care - Skin care accretive acquisitions — Divested lower-margin and lower-growth businesses Growth • Higher-margin categories across IC AWC CC OC continue to grow faster categories Grow sales of Increase Ration
Slide 89: External factors and internal dynamics
External factors • Reimbursement driven • Distributors are important • Inflationary macro environment Internal dynamics • Pricing COE • Loyalty to strong brands (including B2B) • Differentiated products and innovation 89
Slide 90: COGS breakdown and cost trends
COGS breakdown Recent trends and current expectations Packaging ~40% Chemicals Raw materials Resins Labour ~20% Labour Other factory costs Utilities ~20% Freight Freight & logistics ~5% ~15% 3rd party products 3rd party products Blended impact 8 – 9% Increasing impact Fla
Slide 91: Bridge to mid-20s EBIT margin
Bridge to mid-20s EBIT' margin (mia20s 20s Mix portfolio — ion Mix across categories Mix within categories Commercial excellence Global quality & ops G&A FY 2022E Simplification Mix Inflation Operating Medium term & productivity leverage ) convatec Adjusted
Slide 92: Current and medium-term cash flow
Current Medium term Sales 4-6% p.a. 800 EBIT margin mid 20s 100% 700 90% 600 80% 70% 500 100% 90% Free cash to equity 60% 400 80% 50% 70% 300 60% 40% Tax 50% Financing 30% 200 40% 30% Leases /Adjustments* 20% 100 20% Capex 10% 10% 0% Working Capital 0 0% EBITDA1 USES USES EBITDA 1 *Finance leases an
Slide 93: Maintain strong balance sheet
Maintain strong Balance Sheet Target leverage ~2x Net Debt / EBITDA over time 93
Slide 94: Medium-term targets
Medium-term targets Opportunity Medium-term outcome Sustainable Expanding EBIT1 Potential M&A to Sustainable & top-line growth margin enhance growth profitable growth Strengthen positions 4-6% Double-digit Mid-twenties - Technology organic revenue EPS1 and FCF1 EBIT1 margin - Geography growth p.a. C
Slide 95: Q&A
Q&A
Slide 96: Product Demos
& convatec Product Demos