Teleflex Incorporated · NYSE:TFX
Teleflex — Investor Day (May 2015)
167 slides from Teleflex's investor day presentation, May 21, 2015
Slide 1: Teleflex Incorporated 2015 Investor Day
Teleflex Incorporated 2015 Investor Day May 21, 2015 – New York City
Slide 2: Jake Elguicze, Treasurer and VP Investor Relations
2 Jake Elguicze Treasurer and Vice President, Investor Relations
Slide 3: Forward Looking Statements/Non-GAAP Financial Measures
3 Forward Looking Statements/Non-GAAP Financial Measures All statements included in this presentation and our discussion, other than statements of historical fact, are “forward- looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. The words “a
Slide 4: Agenda
4 Agenda Strategic Overview Benson Smith – Chairman, President and Chief Executive Officer Vascular Access, Anesthesia & Surgical Strategies & Product Innovations Liam Kelly – Executive Vice President and Chief Operating Officer Clinical Perspectives on Teleflex Solutions Dr. Matthew Kroh, Dr. Steph
Slide 5: Agenda - Continued
5 Agenda - Continued Financial Overview Thomas Powell – Executive Vice President and Chief Financial Officer Closing Summary Benson Smith – Chairman, President and Chief Executive Officer Question and Answer Session Product Demonstrations Lunch Reception
Slide 6: Tentative Fiscal Year 2015 Earnings Release Dates
6 Tentative Fiscal Year 2015 Earnings Release Dates Second Quarter 2015 July 30, 2015 Third Quarter 2015 October 29, 2015 Fourth Quarter 2015 February 25, 2016 Note: dates are tentative until posted on www.teleflex.com.
Slide 7: Benson Smith, Chairman, President and CEO
7 Benson Smith Chairman, President and Chief Executive Officer
Slide 8: Focusing on the Future: Strong. Diversified. Resourceful.
8 Focusing on the Future Strong. Diversified. Resourceful. As the global healthcare market continues to evolve, it holds more challenges and opportunities than ever before. Teleflex is well-positioned to capitalize on these dynamics. We are: strong, with an established leadership position, a power
Slide 9: To Our Shareholders
9 To Our Shareholders We are dedicated to delivering improved patient care while reducing the cost of healthcare around the world. We believe that this commitment will steadily increase shareholder value. We measure our progress against our ability to meet three financial goals: 1. Grow revenues fas
Slide 10: 2014 Highlights
10 2014 Highlights Delivered constant currency revenue growth of 8.8% Executed on our acquisition strategy • Acquired MiniLap Technologies • Acquired Mayo Healthcare • Leveraged the Vidacare acquisition completed in 2013 Developed a multi-year facility restructuring plan to drive operational efficie
Slide 11: Teleflex Incorp:
Teleflex Incorp: Veleflex
Slide 12: Executing on our Acquisition Strategy
12 Executing on our Acquisition Strategy Acquisitions have played an important role in the Company’s growth over the last several years • Enabled us to achieve economies of scale • Diversified our product portfolio • Strengthened our internal R&D efforts • Broadened our geographic reach
Slide 13: Executing on our Acquisition Strategy
13 Executing on our Acquisition Strategy Established criteria used to target select opportunities, including: • Companies or products that fit into our existing strategic business unit franchises and call points • Products that provide a superior clinical benefit to existing alternatives, provide a
Slide 14: Late-Stage Technology Acquisitions
14 Late-Stage Technology Acquisitions
Slide 15: Distributor Acquisitions
15 Distributor Acquisitions
Slide 16: Established Company Acquisitions
16 Established Company Acquisitions
Slide 17: Driving Margin Growth
17 Driving Margin Growth Strategic focus continues to be on driving margin expansion and earnings growth through the creation of additional operating leverage
Slide 18: Driving Margin Growth: 2014 Manufacturing Footprint Realignment
18 Driving Margin Growth 2014 manufacturing footprint realignment plan on-track • Involves consolidation of operations and a related reduction in workforce • Expected to be substantially complete by end of 2017 • Expect to achieve annualized savings of approximately $28 million to $35 million once t
Slide 19: Driving Margin Growth: 2015 Restructuring Initiatives
19 Driving Margin Growth 2015 restructuring initiatives • Initiated programs associated with the reorganization of certain businesses and consolidation of certain facilities in North America • Expected to be substantially complete by the end of 2017 • Expect to achieve annualized savings of approxim
Slide 20: Driving Margin Growth: Additional Opportunities
20 Driving Margin Growth Identified additional opportunities for margin improvement • Consolidation of raw materials purchasing • Cost-effective packaging options • Increasing use of automation Facility consolidation initiatives and additional margin expansion opportunities will enable Teleflex to m
Slide 21: Leveraging Market Dynamics
21 Leveraging Market Dynamics Global healthcare market is continuously evolving Healthcare utilization is influenced by: • Regulatory policy • Economic strength • Political status Teleflex is well-positioned to meet these challenges
Slide 22: Leveraging Market Dynamics: Product Portfolio
22 Leveraging Market Dynamics Product portfolio that addresses the needs of multiple healthcare segments and customer bases that span the world During the past four years we have been executing on portfolio enrichment • Building businesses…not just introducing products • Creating a family of product
Slide 23: Leveraging Market Dynamics – Vascular Access
23 Leveraging Market Dynamics – Vascular Access We are committed to remaining a leader in vascular access by influencing the rise of Vascular Access Specialists, ultimately improving efficiencies, outcomes and costs through our continued focus on the Right Line for the Right Patient at the Right Tim
Slide 24: Leveraging Market Dynamics – Anesthesia
24 Leveraging Market Dynamics – Anesthesia We are committed to developing solutions that deliver superior value and establish global clinical leadership in key platforms through purpose driven innovation.
Slide 25: Leveraging Market Dynamics – Surgical
25 Leveraging Market Dynamics – Surgical We are committed to further developing our position as a leading, global surgical device business focused on single use / disposable or reposable devices for minimally invasive general surgery. From Open to Close
Slide 26: Patient Population and Demographic Changes
26 Patient Population and Demographic Changes 1950 Population Population Profile • In 1950, there were very few Americans over the age of 85 Population Growth • In 2010, there was a statistically significant number of Americans over age 100 • Members of the Baby Boomer generation, now ages 51-68, ar
Slide 27: Patient Population and Demographic Changes
27 Patient Population and Demographic Changes • By 2040, 20 percent of the population will be comprised of people age 65 and older • By 2050 an estimated 88.5 million persons will be 65 and older, essentially more than doubling the number in 2008 (38 million) • The number of U.S. residents over 85 y
Slide 28: Healthcare Spending Distribution
28 Healthcare Spending Distribution Source: Understanding U.S. Health Care Spending, NIHCM Foundation Data Brief, July 2011
Slide 29: What You Will Hear Today
29 What You Will Hear Today Vascular Access, Anesthesia & Surgical Strategies & Product Innovations Liam Kelly • Vascular Access: Coatings Technologies, JACC, Endurance, Vidacare • Anesthesia: LMA Protector, Autofuser, Mad Nasal, ISO-Gard • Surgical: Hem-o-lok, Weck EFx, Weck Vista, MiniLap, Percuva
Slide 30: Thank you for your attention
30 Thank you for your attention
Slide 31: Liam Kelly, EVP and Chief Operating Officer
31 Liam Kelly Executive Vice President and Chief Operating Officer
Slide 32: Vascular Access
Vascular Access Veleflex
Slide 33: Vascular Access Strategic Objectives
33 Vascular Access Strategic Objectives Antimicrobial Technology • ARROWg+ard Blue Plus® • ARROW® PICC with Chlorag+ard® Technology • ARROW® ErgoPak® System Thrombus Accumulation and Tip Malposition Protection • ARROW® JACC with Chlorag+ard® Technology • ARROW® PICC with Chlorag+ard® Technology • AR
Slide 34: Drive Health Economic Value as a Solution Provider
34 Drive Health Economic Value as a Solution Provider Cost Reductions Improved Efficiency Evidence-Based >90% of admissions need a Vascular Access Device (VAD)1 50% of measured Hospital Acquired Condition’s (HAC) are VAD related2 Annual cost due to Superbugs $33B In preventable healthcare expenditur
Slide 35: ARROW PICC with Chlorag+ard Technology
35 ARROW® PICC with Chlorag+ard® Technology PRODUCT DESCRIPTION Pressure-injectable ARROW® PICCs with Chlorag+ard® Technology are the world’s first PICCs in the intravascular catheter marketplace with both broad-spectrum antimicrobial and antithrombogenic protection. Extra- and intraluminal protecti
Slide 36: ARROW JACC with Chlorag+ard Technology
36 ARROW® JACC™ with Chlorag+ard® Technology PRODUCT DESCRIPTION First and only long-term antimicrobial and antithrombogenic central venous catheter Designed for the placement of central venous catheters by Vascular Access Specialists Employs Chlorag+ard® Technology as a weapon against microbial col
Slide 37: Case Study
37 Case Study In a preliminary report of a recent 12-month trial at a Southern California Medical Center, the rate of CLABSI fell more than 88%1 • Reduction of 4.17 to 0.47 / 1000 catheter days • Eight-fold improvement in infection reduction 1 Rutkoff, G. 2014 The Influence of an Antimicrobial Perip
Slide 38: Differentiate Long Dwell Market Segments
38 Differentiate Long Dwell Market Segments “CVC-related thrombosis and infections are frequently occurring complications … in patients with hematological malignancies … and can therefore not be seen as separate entities”1 Raad study showed3: • 31 patients (43%) had thrombosis present – Seven (23%)
Slide 39: Protect and Expand Short Dwell Markets
39 Protect and Expand Short Dwell Markets Expand EZ–IO® Device Use and Awareness Po te nt ia l Clinical Acuity DVA (USG-IV, PICCs, EJs/IJs, IO) ~20M procedures1,2 EVA (CVC,IO) ~2M procedures3,4 Endurance opportunity EZ-IO opportunity Difficult Vascular Access (DVA) • Difficult to Stick Patients (>2
Slide 40: ARROW EZ-IO Intraosseous Vascular Access System
40 ARROW® EZ–IO® Intraosseous Vascular Access System PRODUCT DESCRIPTION The Arrow® EZ-IO® Intraosseous Vascular Access System is a fast vascular access option that provides peripheral venous access with central venous catheter performance. 1,2,3 1. Based on Proximal Humerus EZ-IO Device insertion s
Slide 41: ARROW Endurance X-Dwell Peripheral Catheter System
41 ARROW® Endurance™ X-Dwell Peripheral Catheter System * PRODUCT DESCRIPTION ARROW® Endurance™ Extended Dwell Peripheral Catheter System is proposed as a single use peripheral catheter system intended for short-term dwell (less than 30 days) to permit delivery of infusion therapies, pressure monito
Slide 42: Anesthesia
Anesthesia Veleflex
Slide 43: Anesthesia Strategic Objectives
43 Anesthesia Strategic Objectives Purpose Driven Innovation • Product development focused on the elimination of airway-related complications • Safely managing patient pain • Reducing the learning-curve for procedures and increasing provider safety Build and Leverage Brand Equity • Capitalize on pow
Slide 44: Purpose Driven Innovation
44 Purpose Driven Innovation We are committed to developing solutions that deliver superior value and establish global clinical leadership in key platforms through purpose driven innovations LMA® & Rusch® Airway Management Arrow® Acute Pain Management MAD® Atomization ISO-Gard® Caregiver Safety
Slide 45: LMA Protector Airway
45 Note: New product introductions subject to obtaining required governmental approvals and authorizations. LMA Protector™ Airway Second generation Laryngeal Mask Airway All parts with mucosal contact are made of silicone material for increased anatomical compliance, single use product Flexible, but
Slide 46: Autofuser Disposable Pain Pumps
46 Autofuser® Disposable Pain Pumps Ergonomic pump design that contains graduation marks for infusion monitoring Reservoir design reduces pressure needed to fill balloon Designed to provide uninterrupted continuous infusion during bolus usage Two choices of bolus dosages and three choices of bolus r
Slide 47: LMA MAD Nasal Intranasal Mucosal Atomization Device
47 LMA® MAD Nasal™ Intranasal Mucosal Atomization Device Safe and painless way to deliver medication approved for nasal delivery with rapid absorption across mucosal membranes to a patient’s blood stream without an intravenous line With no danger of needle sticks at the point of drug delivery, no ne
Slide 48: ISO-GARD Mask with CleanAir Technology
48 ISO-GARD® Mask with CleanAir™ Technology Assists in protecting clinicians by helping to potentially reduce hazardous waste anesthetic gas (WAG) in the PACU environment Reduces WAG within breathing zone of caregiver Creates a unidirectional flow of fresh oxygen to the patient’s nasal/oral area for
Slide 49: Patient Exhaling Without ISO-GARD Mask in Place
49 Patient Exhaling Without ISO-GARD® Mask in Place Video courtesy of John Moenning, DDS, MSD
Slide 50: Patient Exhaling Post-Extubation with ISO-GARD Mask in Place
50 Video courtesy of John Moenning, DDS, MSD Patient Exhaling Post-Extubation with ISO-GARD® Mask in Place
Slide 51: Surgical
Surgical Veleflex
Slide 52: Surgical Strategic Objectives
52 Surgical Strategic Objectives Closure • Increase penetration of manual and automatic ligation platforms • Optimize pull thru with robotic procedures Access • Increase penetration of Weck EFx® – Endo Fascial Closure System and Weck Vista® – Bladeless Laparoscopic Access Ports • Continued partnersh
Slide 53: Creating a Suite of Minimally Invasive Surgical Products
53 WECK® HEM-O-LOK® POLYMER LIGATION SYSTEMS WECK VISTA™ BLADELESS LAPAROSCOPIC ACCESS PORTS PILLING™ LAPAROSCOPIC INSTRUMENTS Creating a Suite of Minimally Invasive Surgical Products
Slide 54: Weck Hem-o-lok Polymer Ligation Systems
54 Weck® Hem-o-lok® Polymer Ligation Systems Weck Hem-o-lok® polymer ligation clips are designed for cool ligation, lasting security and fast, efficient delivery – secure from the cartridge to the applier and on the vessel. The Weck Hem-o-lok® polymer ligation system unique design offers: • A flexib
Slide 55: Weck EFx Endo Fascial Closure System
55 Weck EFx® Endo Fascial Closure System The Weck EFx Endo Fascial Closure System is designed to minimize complications and costs associated with post-operative port-site herniation by providing reproducible, uniform closure through confidence, clarity and control. • Designed to reduce the risk of n
Slide 56: Weck Vista Bladeless Laparoscopic Access Ports
56 Weck Vista® Bladeless Laparoscopic Access Ports The Weck Vista® bladeless laparoscopic access ports meet the many needs of the user by offering the broadest line of access ports including: • Optical entry • Balloon and cone open access ports • Standard ports with smooth or ridged cannula design •
Slide 57: The MiniLap Percutaneous Surgical System
57 The MiniLap® Percutaneous Surgical System Trocar-less entry improves surgical capability and patient outcomes. Multiple products to address various segments of laparoscopic surgery market. Complements Teleflex’s percutaneous surgery platform. PRODUCT DESCRIPTION
Slide 58: Percuvance Percutaneous Surgical System
58 Percuvance™ Percutaneous Surgical System Percuvance™ Percutaneous Surgical System is intended to manipulate tissue and includes components that introduce a variety of instrument configurations into the abdominal cavity and requires a smaller incision site than traditional laparoscopic surgery. It
Slide 59: Percuvance Percutaneous Surgical System Video
59 Percuvance™ Percutaneous Surgical System Video
Slide 60: Clinical Perspectives on Teleflex Solutions
60 Clinical Perspectives on Teleflex Solutions
Slide 61: Sheryl McDiarmid, Ottawa Hospital
61 Sheryl McDiarmid Advanced Practice Nurse in the Corporate Vascular Access Program at the Ottawa Hospital The opinions expressed herein are the clinician’s and do not reflect the views of Teleflex Incorporated.
Slide 62: Guest Speaker: Sheryl McDiarmid
62 Guest Speaker: Sheryl McDiarmid RN, BScN, MEd, MBA, AOCN, ACNP, CVAA(c) • Advanced Practice Nurse in the Corporate Vascular Access Program at The Ottawa Hospital • Leads a nursing team responsible for the annual insertion and maintenance of 5000 central access devices including PICCs, PORTs and t
Slide 63: The Ottawa Hospital
63 The Ottawa Hospital Civic Campus Heart Institute General Campus • Amalgamation of hospitals in 1998 • Canada’s largest teaching hospital • 1,200 inpatient beds • 50,000 admissions • 1 million outpatient visits
Slide 64: CVAD Insertions 2009 to Date
64 CVAD Insertions 2009 to Date Peripherally Inserted Central Catheters 8,000 outpatient insertions 15,000 inpatient insertions 23,000 PICCs PORTs Tunneled Catheters 3,000 450
Slide 65: Indications for PICC insertion 2009 - 2014
65 Indications for PICC insertion 2009 - 2014 N = 22,748 (7963 outpatient/14785 inpatient) 0 5000 10000 15000 Indication N u m b e r Antibiotics Chemotherapy Difficult IV Access Total Parenteral Nutrition Other
Slide 66: PICC Associated Complications
66 PICC Associated Complications N=11,169 0 1000 2000 3000 4000 Type of Complication N u m b e r Migration Withdrawl Occlusion Complete Occlusion Fracture Other
Slide 67: All PICCs – Year over Year Interventions
67 All PICCs – Year over Year Interventions 0 100 200 300 400 500 600 700 800 900 1000 2012 N=1820 2013 N=1524 2014 N=1120 (8mths) Year N um be r Thrombolytics Assessed Line Flushed Line CXR Phone call Caps Loosened Other
Slide 68: Vascular Access Database V – ASK
68 Vascular Access Database V – ASK
Slide 69: Definitions
69 Definitions Complete Occlusion • The inability to infuse or inject fluid into a catheter or to aspirate blood from a catheter Withdrawal Occlusion • The inability to aspirate blood from a catheter Migration • Any post insertion change in the external measurement of the catheter Malposition • Any
Slide 70: Why Trial the ARROW PICC with Chlorag+ard Technology?
70 Why Trial the ARROW® PICC with Chlorag+ard® Technology? Goal of Device Selection Insertion of the least invasive device with the greatest possibility of delivering the prescribed therapy for the required time with the minimal number of catheters.1 Experienced thrombosis issue and exit site bleedi
Slide 71: Issues in Central Vascular Access Device Selection in Hematological Malignancies
71 Issues in Central Vascular Access Device Selection in Patients with Hematological Malignancies Prompt central access is essential Needs to be a robust device* • Chemotherapy • Transfusions • Antibiotics • Frequent blood procurement • Intensive therapy over minimum of 6 months Skaff, ER, Doucette,
Slide 72: The ARROW PICC with Chlorag+ard Technology Trial
72 The ARROW® PICC with Chlorag+ard® Technology Trial Indications for PICC N=25 AML/Allogeneic HSCT Autologous HSCT Non Hodgkins Lymphoma
Slide 73: ARROW PICC with Chlorag+ard Technology Complications
73 ARROW® PICC with Chlorag+ard® Technology Complications 1054 Catheter Days 0 2 4 6 8 10 12 N um be r Type Complete Occlusion Withdrawl Occlusion Bleeding from Site Thrombosis Migration Kinked • Zero infections for a high risk patient population (0 for > 1000 catheter days) • Occlusions treated wit
Slide 74: Primary Complication Review: ARROW PICC with Chlorag+ard Technology
74 Primary Complication Review: ARROW® PICC with Chlorag+ard® Technology (N=25, not yet statistically significant) Complication Comparative Status Factors Catheter-related Thrombosis Reduction in DVT • 1 @ day 11 (difficult insertion) • 1 @ day 20 Catheter-related infection No infections for > 1000
Slide 75: All micro introducers are not equal!
75 All micro introducers are not equal!
Slide 76: Insertion site post insertion
76 Our insertion site 2 hours post insertion Our insertion site 24 hours post insertion
Slide 77: ARROW PICC with Chlorag+ard Technology: User Acceptability
77 ARROW® PICC with Chlorag+ard® Technology: User Acceptability Easy to insert without guidewire – only 1 malposition during insertion We trimmed all lines so value of end technology not evaluated Easier to bolus patients without valve technology Blood drawing is quicker Slider clamp could be improv
Slide 78: Conclusions
78 Conclusions Easy transition for staff • Familiar with clamping of lines No central line infections in > 1000 line days Heparin is not needed when using a neutral displacement needleless connector ARROW® Sheath Introducer is considered an industry benchmark Continuing Chlorag+ard® Technology trial
Slide 79: Thank you for your attention
79 Thank you for your attention
Slide 80: Dr. Stephen Luney
80 Dr. Stephen Luney Consultant Neuro Anesthesiologist – Royal Victoria Hospital, Belfast The opinions expressed herein are the clinician’s and do not reflect the views of Teleflex Incorporated.
Slide 81: Guest Speaker: Dr. Stephen Luney
81 Guest Speaker: Dr. Stephen Luney • Consultant Neuro Anesthesiologist – Royal Victoria Hospital, Belfast • Honorary Senior Clinical Lecturer – University of Birmingham, UK • Paid Consultant of Teleflex Incorporated
Slide 82: Obesity, Reflux and Prolonged Procedures
82 Obesity, Reflux and Prolonged Procedures
Slide 83: LMA MAD Nasal and LMA Protector Airway
83 LMA® MAD Nasal™ Intranasal Mucosal Atomization Device and LMA Protector™ Airway *For use with drugs approved for intranasal delivery
Slide 84: LMA MAD Nasal Intranasal Mucosal Atomization Device
84 LMA® MAD Nasal™ Intranasal Mucosal Atomization Device *For use with drugs approved for intranasal delivery
Slide 85: LMA MAD Nasal Intranasal Mucosal Atomization Device
85 LMA® MAD Nasal™ Intranasal Mucosal Atomization Device At the point of drug delivery, use of the LMA® MAD Nasal™ Device eliminates the risk of needlestick injuries. There are a number of benefits associated with needle-free drug delivery: Addresses concerns over transmission of blood-borne patho
Slide 86: LMA MAD Nasal Intranasal Mucosal Atomization Device
86 LMA® MAD Nasal™ Intranasal Mucosal Atomization Device *For use with drugs approved for intranasal delivery
Slide 87: LMA Protector Airway
LMA Protector™ Airway ) fi Veleflex
Slide 88: Limitations
88 Limitations
Slide 89: LMA Airway Devices
89 LMA Unique® Airway LMA ProSeal® Airway LMA Fastrach® Airway LMA Supreme® Airway LMA Airway Devices
Slide 90: Second Seal Technology
Seal™ Technolo Cricoid SECOND SEAL” __€ \ TECHNOLOGY Veleflex
Slide 91: Courtesy of Stephen R. Luney, MD
91 Courtesy of Stephen R. Luney, MD
Slide 92: LMA Protector Airway
LMA Protector™ Airway Pa SESE Veleflex
Slide 93: LMA Protector Airway – Function
93 LMA Protector™ Airway – Function Open Channel/ passive air circulation Suction
Slide 94: LMA Protector Airway – Video
94 LMA Protector™ Airway – Video
Slide 95: Thank you for your attention
95 Thank you for your attention Teleflex, First Seal, LMA, LMA Fastrach, LMA ProSeal, LMA Protector, LMA Supreme, LMA Unique, MAD, MAD Nasal and Second Seal are trademarks or registered trademarks of Teleflex Incorporated or its affiliates. All other trademarks or registered trademarks are property
Slide 96: Dr. Matthew Kroh
96 Dr. Matthew Kroh MD, FACS, Cleveland Clinic Lerner College of Medicine The opinions expressed herein are the clinician’s and do not reflect the views of Teleflex Incorporated.
Slide 97: Evolution of Minimally Invasive Surgery: Applications for Percuvance System
Evolution of Minimally Invasive Surgery: Applications for Percuvance™System Matthew Kroh, MD Director, Surgical Endoscopy Surgical Director, Developmental Endoscopy Assistant Professor of Surgery Cleveland Clinic Digestive Disease Institute Dr. Kroh will be paid an honorarium for, and be reimbursed
Slide 98: Goals
Goals • Examine current techniques in minimally invasive surgery • Overview of successful and unsuccessful technologies to decrease impact of access • Review initial human clinical experience with Percuvance™ system
Slide 99: Introduction
Introduction •1st cholecystectomy –(1880s) •1st laparoscopic cholecystectomy –(1987) •1st NOTES™ cholecystectomy –(2007) •1st SILS cholecystectomy –(1990?) Why change? • Patients’ perspective • Surgeons’ perspective • Industry • Marketing
Slide 100: Common Procedures
Common Procedures Left hepatic duct Right hepatic duct Right hepatic artery. Left hepatic Cystic artery artery Cystic duct vs hepatic duct Gallbladder: ry Cleveland Clinic Conventional Anatomy
Slide 101: Anatomic Variants
Anatomic Variants = ‘Accessory hepale dct Joining ight hepatle Kaewmon oped ind Gomentepaieau poe dst on rom epee et ct an Common hepatic det to eyse duct enoecy ate at ong ee £3 Cleveland Clinic
Slide 102: Current Evolution: Standard Laparoscopy, Single Incision Laparoscopy
Current Evolution Standard Laparoscopy Single Incision Laparoscopy
Slide 103: Surgeons' Perspective
Surgeons’ Perspective • Laparoscopic cholecystectomy is standard of care • General surgeons’ current mindset on lap cholecystectomy • Key points necessary in traditional laparoscopic cholecystectomy 1. Superior and Lateral Retraction 2. Correct Identification of cystic duct and artery 3. Control of
Slide 104: Complications
Complications • Surgeon Experience • Anatomical misidentification • In-complete dissection of Triangle of Calot • Technical problems • Improper plane of dissection • Thermal Injuries • Tenting Injuries • Bile Duct Injuries • Common Bile Duct • Cystic Duct • Common Hepatic Duct • Bile Duct and Other
Slide 105: Single Incision Laparoscopy
Single Incision Laparoscopy 5mm 10/12 mm 5mm 5mm Lap Chole 5mmx2 5/10/12 Single Site / Port Chole
Slide 106: SILS versus NOTES
SILS versus NOTES™ • What is the relationship between the two approaches? • Competing or complementary? Pearl, Ponsky. J Gastrointest Surg. 2008 Jul;12(7):1293-300.
Slide 107: Umbilical Incision
Umbilical Incision Incision at the umbilicus, top of the fold to the inferior part of the fold Clean fascia for 3-5 cm platform
Slide 108: Post-Operative Intra-Op Days Post-Op
Post-Operative Intra-Op 10 Days Post-Op
Slide 109: Patient survey: standard lap versus single site surgery
• Patients underwent standard lap versus single site surgery • 1/2 didn’t remember technique • 1/3 preferred to eliminate umbilical incision
Slide 110: Complications associated with new techniques
• Complications associated with new techniques • Some established, others new
Slide 111: Shortcomings of Single Port Surgery
Shortcomings of Single Port Surgery Potential Issues • Steep Learning Curve • Poor Ergonomics • Higher Mental Load • Increased Collisions
Slide 112: Application of Robotics
Application of Robotics Flexible Shaft Instruments dV SCOPE Silicone Port Insufflation fitting Curved Cannulae 5mm Accessory Cannula
Slide 113: Adoption of Robotic Prostatectomy
Adoption of Robotic Prostatectomy
Slide 114: Robotic procedure findings
• Feasible, safe, no conversions • Longer operative times • Learning curve = change in technique
Slide 115: Why Percuvance System?
Why Percuvance™ System? Less invasive form of general surgery Equivalent performance to traditional laparoscopy Cost-effective Equivalent clinical outcomes
Slide 116: Percuvance Portfolio
Percuvance Portfolio Reusable Ratcheted Handle Disposable 2.9mm Shaft 5 & 10mm Trocar Seal Bridges Atraumatic Grasper Traumatic Grasper Maryland Dissector Introducer (Veress Needle) Scissors Disposable 5mm Tool Tips
Slide 117: First in-Human Experience
First in-Human Experience WHERE Cleveland Clinic WHAT 15 Lap General Procedures WHEN Feb 2015 WHO Drs. Matthew Kroh and Dr. John Rodriguez WHY Demonstrate product performance Generate clinical evidence Develop procedural applications Finalize data collection guidelines
Slide 118: Standard mm Instrument
Standard 5 mm Instrument Percuvancen Standard 3 mm Instrument
Slide 119: Standard mm Instrument
Standard 5 mm Instrument Standard 3 mm Instrument
Slide 120: Percuvance
Percuvance im Standard 3 mm Instrument a Standard 5 mm Instrument
Slide 121: Video courtesy of L Boni MD, FACS
Video courtesy of L Boni MD, FACS
Slide 122: Cleveland Clinic Experience
Cleveland Clinic Experience • 15 initial cases • Broad spectrum- – Bariatric – Hernia – GI • Variable # of Percuvance instruments • Intra-op decision making changes
Slide 123: Conclusions
Conclusions • Minimally invasive surgery continues to evolve • Access techniques decrease morbidity • Recreating standard laparoscopic constructs with less invasive instruments may circumvent short-comings – Less trauma – Same conduct Information available upon request. Contact Teleflex Medical at 8
Slide 124: Cleveland Clinic
Cleveland Clinic
Slide 125: Thank you for your attention
125 Thank you for your attention
Slide 126: Question and Answer Session
126 Question and Answer Session
Slide 127: Intermission
127 Intermission
Slide 128: Thomas Powell, EVP and Chief Financial Officer
128 Thomas Powell Executive Vice President and Chief Financial Officer
Slide 129: Focused on Shareholder Value Creation
129 Focused on Shareholder Value Creation Portfolio of products capable of consistent, sustainable revenue growth Margin expansion from multiple drivers including: product mix, pricing, cost improvement programs, distributor conversions and M&A Reduction of effective tax rate Significant free-cash f
Slide 130: Focused on Shareholder Value Creation
130 Focused on Shareholder Value Creation +8.4% CAGR, Constant Currency $1,493 $1,840 $3.83 $5.74 47.6% 51.5% $49.8 $222.7 +10.0% CAGR and + 390 bps +64.8% CAGR +14.4% CAGR
Slide 131: Focused on Shareholder Value Creation
131 Focused on Shareholder Value Creation Note: Market data as of May 15, 2015. TFX: +139% IHI: +103% S&P: +69%
Slide 132: Reaffirming 2015 Guidance
132 Adjusted gross margin expected to be between 53.0% and 54.0% Adjusted operating margin expected to be between 22.0% and 22.5% Adjusted earnings per share expected to be between $6.10 to $6.35 Reaffirming 2015 Guidance Constant currency revenue growth expected to be between 4.0% and 6.0%
Slide 133: Financial Strategy
133 Financial Strategy Earnings & Cash Flow Growth Drivers Revenue & Pricing Gross Margin Expansion SG&A / R&D Productivity Tax Focus is on building a business model with multiple avenues with which to drive earnings and cash flow M&A as a Growth Accelerator • New Products including Late-Stage Techn
Slide 134: Teleflex Goals and Objectives 2016 - 2018
134 Adjusted operating margin expansion of 350 to 400 bps beyond 2015 level Teleflex Goals and Objectives 2016 - 2018 Consistently deliver 5-6% constant currency revenue growth, before M&A Adjusted gross margin expansion of 350 to 400 bps beyond 2015 level Free cash flow CAGR of 10% to 12% from 2014
Slide 135: Revenue Growth Goals & Objectives – 2016 to 2018
135 Volume / Share gains and New Products will drive base revenue growth Constant Currency Revenue Growth Goals & Objectives – 2016 to 2018 Incremental M&A as growth accelerator Volume / Share New Products Price N. America +mid-single EMEA +low/mid-single Asia +upper-single L. America +mid/upper-sin
Slide 136: Adjusted Gross Margin Goals & Objectives 2016 – 2018
136 Adjusted Gross Margin Goals & Objectives 2016 – 2018 2011 - 2014 2015 2016 - 2018 +390 bps +150-250 bps Material Substitution • Product & Geographic Mix • Footprint Consolidation • Manufacturing Cost-Out • Less annual inflation 2016-18 Adjusted Gross Margin Drivers Incremental Opportunities • Po
Slide 137: Adjusted Operating Margin Goals & Objectives 2016 - 2018
137 Adjusted Operating Margin Goals & Objectives 2016 - 2018 Material Substitution Financial leverage will be enhanced by SG&A productivity initiatives +390 bps +80 bps 1 for 1 2011 - 2014 2016 - 2018 Med Device Tax Distributor Conversions Asia Channel Investment +350 to 400 bps +350 to 400 bps EMEA
Slide 138: Adjusted Tax Rate Goals & Objectives 2016 – 2018
138 Adjusted Tax Rate Goals & Objectives 2016 – 2018 22.0% to 22.5% 26.0% to 27.0% Effective Tax strategy has yielded meaningful results; business strategies and macro-factors will limit additional near-term improvements 26% 20-21% 22-23% Business Strategy • Geographic mix • Manufacturing locations
Slide 139: Free Cash Flow Goals & Objectives
139 Free Cash Flow Goals & Objectives 22.0% to 22.5% 26.0% to 27.0% Free Cash Flow projected to increase to $325 to $350 million by 2018. Free Cash Flow $223m $325m to $350m 10-12% CAGR 2015-18 Free Cash Flow total of approximately $1.0 to $1.2 billion Remain focused on improving US cash gener
Slide 140: Capital Allocation Priorities
140 Capital Allocation Priorities Quarterly dividend of $0.34 per share Productivity investments (e.g. footprint, automation) Distributor to direct conversions Late-stage technology acquisitions Strategic M&A
Slide 141: Acquisition Criteria
141 Acquisition Criteria 22.0% to 22.5% 26.0% to 27.0% Strategic fit with existing business unit franchises and call points Superior clinical benefit to existing alternatives Cost benefit to a hospital Strong IP and patent protection Long product life cycles Established criteria are consis
Slide 142: Positioned for Growth
142 Positioned for Growth Established management team Leading portfolio of products capable of consistent, sustainable revenue growth. Compelling new product pipeline. Significant free-cash flow generation, disciplined approach to M&A and capital allocation. Strong track record of financial performa
Slide 143: Benson Smith, Chairman, President and CEO
143 Benson Smith Chairman, President and Chief Executive Officer
Slide 144: Closing Summary
144 Closing Summary Global demographics more than offset cost pressures Consistently deliver 5-6% constant currency revenue growth, before M&A TFX is focused on driving long-term growth Disciplined approach to M&A and capital allocation Committed to adjusted gross and operating margin expansion Focu
Slide 145: Question and Answer Session
145 Question and Answer Session
Slide 146: Thank you for your attention
146 Thank you for your attention
Slide 147: Appendices
Appendices Veleflex:
Slide 148: Appendix A Non-GAAP Reconciliation Tables and Notes
148 Appendix A Non-GAAP Reconciliation Tables and Notes
Slide 149: Notes on Non-GAAP Financial Measures
149 Notes on Non-GAAP Financial Measures This presentation includes the following non-GAAP financial measures: • Adjusted earnings per share. This measure excludes, depending on the period presented (i) goodwill impairment charges; (ii) charges associated with our restructuring programs; (iii) gain/
Slide 150: Notes on Non-GAAP Financial Measures (cont'd)
150 Notes on Non-GAAP Financial Measures (cont’d) The following slides in this Appendix A include tables reconciling the historical and 2015 forecasted non-GAAP financial measures included in the presentation to the most comparable GAAP measures. We have not provided a reconciliation of our forecast
Slide 151: Reconciliation of 2014 Constant Currency Revenue
151 Reconciliation of 2014 Constant Currency Revenue Dollars in Millions Note: GAAP results represent amounts per Form 10K. December 31, 2014 December 31, 2013 Constant Currency Currency Total Net Revenues 1,839.8$ 1,696.3$ 8.8% (0.3%) 8.5% Twelve Months Ended % Increase / (Decrease)
Slide 152: Reconciliation of 2014 Constant Currency Revenue CAGR
152 Reconciliation of 2014 Constant Currency Revenue CAGR Dollars in Millions Note: GAAP results represent amounts per Form 10K. 2011 2014 CAGR Revenue As-Reported $1,493 $1,840 7.2% Adjustment to reflect 2014 Revenue at 2011 foreign exchange rates $63 Constant Currency Revenue $1,493 $1,902 8.4%
Slide 153: Reconciliation of 2011 – 2014 Adjusted Gross Profit and Margin
153 Reconciliation of 2011 – 2014 Adjusted Gross Profit and Margin Dollars in Millions Note: GAAP results represent amounts per Form 10K. 2011 2012 2013 2014 CAGR Gross profit $708.8 $748.2 $838.9 $942.4 10.0% Percentage of revenue 47.5% 48.2% 49.5% 51.2% Losses, other charges and charge reversals 2
Slide 154: Reconciliation of 2011 – 2014 Adjusted Earnings per Share
154 Note: GAAP results represent amounts per Form 10K. Reconciliation of 2011 – 2014 Adjusted Earnings per Share Dollars in Millions, except per share amounts 2011 2012 2013 2014 CAGR Amounts attributable to common shareholders: income (loss) from continuing operations, net of tax $118.3 ($182.7) $1
Slide 155: Reconciliation of 2011 – 2014 Free Cash Flow
155 Note: GAAP results represent amounts per Form 10K. Reconciliation of 2011 – 2014 Free Cash Flow Dollars in Millions 2011 2012 2013 2014 CAGR Net cash provided by operating activities from continuing operations $94.4 $194.6 $231.3 $290.2 45.4% Less: Capital expenditures 44.6 65.4 63.6 67.6 Free C
Slide 156: Reconciliation of 2011 & 2014 Adjusted Operating Margin
156 Reconciliation of 2011 & 2014 Adjusted Operating Margin (Dollars in Millions) 2011 2014 GAAP operating profit $229.6 $284.9 Percentage of revenue 15.4% 15.5% Restructuring & impairment 6.0 17.9 Net loss on sales of businesses and assets 0.6 0.0 SKU rationalization 2.0 0.0 Executive severance cos
Slide 157: Reconciliation of 2011 Adjusted Tax Rate
157 Reconciliation of 2011 Adjusted Tax Rate (Dollars in Thousands) Twelve Months Ended December 31, 2011 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $145,100 $25,778 17.8% Restructuring and impairment charges 3,681 1,377 Early termin
Slide 158: Reconciliation of 2014 Adjusted Tax Rate
158 Reconciliation of 2014 Adjusted Tax Rate (Dollars in Thousands) Twelve Months Ended December 31, 2014 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $220,110 $28,650 13.0% Restructuring and impairment charges 17,869 5,190 Losses, oth
Slide 159: Reconciliation of 2015 Constant Currency Revenue Growth Guidance
159 Reconciliation of 2015 Constant Currency Revenue Growth Guidance Low High Forecasted GAAP Revenue Growth (2%) ─ Estimated impact of foreign currency fluctuations 6% 6% Forecasted Constant Currency Revenue Growth 4% 6%
Slide 160: Reconciliation of 2015 Adjusted Gross Margin Guidance
160 Reconciliation of 2015 Adjusted Gross Margin Guidance Note: In 2015, losses, other charges and charge reversals relate to expenses associated with the 2014 manufacturing footprint realignment plan.
Slide 161: Reconciliation of 2015 Adjusted Operating Margin Guidance
161 Reconciliation of 2015 Adjusted Operating Margin Guidance Note: In 2015, losses, other charges and charge reversals include expenses associated with the 2014 manufacturing footprint realignment plan; acquisition and integration costs, and charges related to facility consolidations; and the rever
Slide 162: Reconciliation of 2015 Projected Adjusted Tax Rate
162 Reconciliation of 2015 Projected Adjusted Tax Rate Low High 2015 GAAP Projected Tax Rate 16.0% 17.0% Adjustments 4.0% 4.0% 2015 Adjusted Projected Tax Rate 20.0% 21.0% In 2015, adjustments consist of projected taxes associated w ith restructuring expenses, intangible amortization expense, amorti
Slide 163: Reconciliation of 2015 Adjusted Earnings per Share Guidance
163 Reconciliation of 2015 Adjusted Earnings per Share Guidance Note: “Restructuring, impairment charges and special items, net of tax” include: the effect of charges associated with our restructuring programs; losses and other charges, including acquisition and integration costs, charges related to
Slide 164: Reconciliation of 2018 Free Cash Flow Goals & Objectives
164 Reconciliation of 2018 Free Cash Flow Goals & Objectives (Dollars in Millions) 2014 2018E CAGR Low High Low High Net cash provided by operating activities from continuing operations $290 $400 $430 8% 10% Less: Capital Expenditures 68 75 80 Free Cash Flow $223 $325 $350 10% 12%
Slide 165: Reconciliation of 2015 to 2018 Free Cash Flow Goals & Objectives
165 Reconciliation of 2015 to 2018 Free Cash Flow Goals & Objectives (Dollars in Millions) Low High 2015 through 2018 Net Cash Provided by Operating Activities from Continuing Operations Goals and Objectives $1,300 $1,500 Less: 2015 through 2018 Capital Expenditure Goals and Objectives 300 300 2015
Slide 166: Appendix B Additional Source Information
166 Appendix B Additional Source Information
Slide 167: References to Slide 1
167 References to Slide 34 1. Zimlichman E, et al. Health care-associated infections: a meta-analysis of cost and financial impact on the US health care system. JAMA Intern Med. 2013;173(22):2039-2046. doi: 10.1001/jamainternmed.2013.9763. 2. O’Grady NP, Alexander M, Burns LA, et al., and Healthcare