Slide 1: Teleflex Incorporated Fourth Quarter 2004 Earnings Conference Call
Teleflex Incorporated Fourth Quarter 2004 Earnings Conference Call Exhibit 99.3
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, such matters as business strategies, market trends, future financial performance, forecast of diluted earnings per share, forecast of cash flow from opera
Slide 3: Jeff Black, President and Chief Executive Officer
Jeff Black President and Chief Executive Officer
Slide 4: Fourth Quarter Revenue Highlights
Fourth Quarter Revenue Highlights Strong revenue growth 18% in Q4 (6% core growth) Orders up 25 % for Teleflex overall Commercial Slight decline in auto cables and shifters revenues Double-digit growth in marine/industrial Medical Strong revenues from specialty devices, disposable medical products i
Slide 5: Full Year Results
Full Year Results Strong revenue growth 15% growth 5% core growth Record cash flow Operating cash flow $254.5 million, up 13% Free cash flow $164.3 million, up 44.4% Balance sheet Cash $115.6 million Net debt to total cap 37.7% Net debt $671.6 million, down from $698.5 million at Sept 2004 $458 mill
Slide 6: 2004 Strategic Actions
2004 Strategic Actions Restructuring and divestiture program announced November 2004 Automotive pedals to discontinued operations Strengthened business unit Actively marketing business Substantially exited IGT aftermarket services Closed facilities, eliminated positions, marketing assets Announced c
Slide 7: 2004 Portfolio Actions
2004 Portfolio Actions Acquired HudsonRCI Integration ahead of plan Portfolio review program Divestitures through June 04 - Techsonic, NHK Automotive, and National Strand - total annualized revenues $100 million Additional $300 million program announced in July 3Q and 4Q- divested three small produc
Slide 8: 2005 Plan
2005 Plan Execute restructuring and divestiture program Proceed with sale of businesses that don't fit Deliver good operating results from continuing operations Continue transition to shared services model Position core businesses for growth Generate strong cash flow to invest in new opportunities A
Slide 9: Martin Headley, Executive Vice President and Chief Financial Officer
Martin Headley Executive Vice President and Chief Financial Officer
Slide 10: Comparison of Performance to October Guidance
Comparison of Performance to October Guidance Diluted Earnings Per Share Excluding Special Charges
Slide 11: Comparison of Continuing Operations Performance to Guidance
Comparison of Continuing Operations Performance to Guidance Diluted Earnings Per Share From Continuing Operations
Slide 12: Q4 Impact of Restructuring and Divestiture Program
Q4 Impact of Restructuring and Divestiture Program
Slide 13: Restructuring and Divestiture Charges
Restructuring and Divestiture Charges 2004 restructuring and divestiture charges = $135 million $85 million continuing operations $50 million discontinued operations. Acceleration of actions resulted in shift of $16 million of charges from 2005 to 2004 Total restructuring and divestiture charges now
Slide 14: Summary Financial Performance
Summary Financial Performance Full year revenues up 14.7% (excluding lag effect) Gross margins reached 30% in fourth quarter Stable operating margins despite 2004 headwinds
Slide 15: 2004 - Strong Cash Flow
2004 - Strong Cash Flow $25 million reduction in CAPEX Improved Asset Velocity 44% Free Cash Flow increase
Slide 16: Asset Velocity
Asset Velocity Components of net working capital as a % of annualized fourth quarter revenues Accounts Receivable Inventory 16.1% 18.8% Accounts Payable and Accrued Liabilities 14.7% = -13.9% INet Working Capital 224% 27.1% Teleflex 16
Slide 17: Strong Balance Sheet for Future Growth
Strong Balance Sheet for Future Growth Note: $458 million of debt booked in July 2004 for HudsonRCI acquisition
Slide 18: 2004 Results - Commercial Segment
2004 Results - Commercial Segment Revenues: 8% core growth Marine, outdoor power equipment and industrial vehicles produced strongest results Operating margins pressured by: Cancellation of Alt Fuels programs in North America Increased raw material costs Auto OEM Driver Controls pricing *Adjusted to
Slide 19: 2004 Results - Medical Segment
2004 Results - Medical Segment Revenues: 6% core growth HudsonRCI acquisition Excluding acquisition accounting impact of $3.2 million, profits up 42% Operating profits up 37% Core volume gains Hudson acquisition Restructuring and divestiture actions proceeding Closure announcements Business process
Slide 20: 2004 Results - Aerospace Segment
2004 Results - Aerospace Segment Revenues: Double-digit growth in repair product, services, and precision- machined components Decline in Cargo-handling systems Significant decline and eventual phase-out of IGT services $12.5 million of one-time charges related to exit of IGT IGT closed in Q1 2005 (
Slide 21: Summary
Summary 2004 and 2005 transition years Continued realignment of business portfolio 2005 should realize benefits from 2004 actions Restructuring and divestiture efforts well underway, less financial impact in 2005 Continued strong cash flow driven by working capital, capex, and debt reduction efforts