Slide 1: Teleflex Incorporated First Quarter 2015 Earnings Conference Call
1 TELEFLEX INCORPORATED FIRST QUARTER 2015 EARNINGS CONFERENCE CALL 1 Exhibit 99.3
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”) Telephone replay available by dialing 888-286-8010 or for international calls, 617- 801-6888, pass code number 72082025 2
Slide 3: Introductions
Introductions Benson Smith Chairman, President and CEO Liam Kelly Executive Vice President and COO 3 Jake Elguicze Treasurer and Vice President of Investor Relations Thomas Powell Executive Vice President and CFO
Slide 4: Forward-Looking Statements/Non-GAAP Financial Measures
Forward-Looking Statements/Non-GAAP Financial Measures This presentation and our discussion contain forward-looking information and statements including, but not limited to, our expectations regarding the timing for completion of, and annual savings expected to be realized from, our manufacturing fo
Slide 5: Executive Summary
EXECUTIVE SUMM. Teleflex:
Slide 6: Executive Summary
Executive Summary First quarter revenue of $429.4 million • Down 2.1% vs. prior year period on an as-reported basis • Up 5.2% vs. prior year period on a constant currency basis Adjusted EPS of $1.30, up 6.6% vs. prior year period Manufacturing footprint realignment plan on-track • Involves consolida
Slide 7: Executive Summary: 2015 restructuring initiatives and guidance
Executive Summary 2015 restructuring initiatives • Initiated programs associated with segment realignment and consolidation of certain facilities in North America • Expected to be substantially complete by the end of 2017 • Expect to achieve annualized savings of approximately $12 million to $14 mil
Slide 8: First Quarter Product Line and Geographic Revenue Review
8 FIRST QUARTER PRODUCT LINE AND GEOGRAPHIC REVENUE REVIEW 8
Slide 9: First Quarter Highlights
First Quarter Highlights First quarter 2015 constant currency revenue growth of 5.2% • 124 bps improvement in sales volume of core products • Vidacare contributes 132 bps of constant currency growth • 126 bps improvement resulting from introduction of new products • Core product pricing drives 19 bp
Slide 10: Segment Revenue Review Q1'15
Segment Revenue Review Q1’15 Vascular N.A.: $67.9 million, up 9.2% Anesthesia/Respiratory N.A.: $55.4 million, up 1.6% Surgical N.A.: $38.1 million, up 9.4% EMEA: $129.3 million, up 2.2% Asia: $48.5 million, up 7.0% OEM: $34.7 million, up 8.2% All Other: $55.5 million, up 6.0% Note: Increases and de
Slide 11: Group Purchasing Organization and IDN Review
Group Purchasing Organization and IDN Review Group Purchasing Organization Update • 2 new agreements • 6 renewed agreements IDN Update • 2 new agreements 11 Track record of expansion of contractual agreements continues in Q1’15
Slide 12: First Quarter New Product Introductions and Regulatory Approvals
12 FIRST QUARTER NEW PRODUCT INTRODUCTIONS AND REGULATORY APPROVALS 12
Slide 13: ARROW PICCs with Chlorag+ard Technology
Pressure-injectable ARROW® PICCs with Chlorag+ard® Technology are the world’s first FDA- cleared central venous catheters to significantly reduce the risk of central line-associated bloodstream infections and PICC-related vessel thrombosis, compared to traditional uncoated catheters. They are also t
Slide 14: Rusch Airtraq Avant Video Laryngoscope System
Rusch® Airtraq™ Avant™ Video Laryngoscope System provides improved visibility for intubating pre-hospital patients where overcoming challenging patient positioning and difficult airways is vital. The system provides an affordable per-use option with single-use disposable blades. The addition of a sn
Slide 15: 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 offers a reusable handle that is compatible
Slide 16: Acquisition Update
ACQUISITION UPDATE Teleflex:
Slide 17: Acquisition Update: Truphatek
Acquisition Update Acquired Truphatek • Private Israeli company established in 1993 with a broad range of disposable and reusable laryngoscope devices • Teleflex was Truphatek’s primary distributor of laryngoscopes in the U.S. and acquisition positions Teleflex to de-layer supply chain in U.S. marke
Slide 18: Acquisition Update: Trintris Medical
Acquisition Update Acquired Trintris Medical, Inc. • Private company OEM for balloons and catheters • Balloon forming and attaching capability complements existing catheter business and fills product gap • Accretive, all-cash transaction completed in March 2015 18
Slide 19: First Quarter 2015 Financial Review
19 FIRST QUARTER 2015 FINANCIAL REVIEW 19
Slide 20: Financial Results
Financial Results Revenue of $429.4 million • Down 2.1% vs. prior year period on an as-reported basis • Up 5.2% vs. prior year period on a constant currency basis Adjusted gross margin of 52.3%, up 190 bps vs. prior year period Adjusted operating margin of 20.5%, up 160 bps vs. prior year period Adj
Slide 21: 2015 Financial Outlook
2015 FINANCIAL OUTLOOK Teleflex:
Slide 22: 2015 Financial Outlook
22 Constant currency revenue growth expected to be between 4% and 6% Adjusted Gross margin anticipated to be 53.0% to 54.0%, an improvement of 150bps to 250bps vs. prior year Adjusted operating margin expected to be between 22.0% and 22.5% Adjusted earnings per share anticipated to be between $6.10
Slide 23: Question & Answer
QUESTION & ANSWER Teleflex:
Slide 24: Appendices
APPENDICES Teleflex:
Slide 25: Appendix A – Reconciliation of Constant Currency Revenue Growth
Appendix A – Reconciliation of Constant Currency Revenue Growth Dollars in Millions 25 March 29, 2015 March 30, 2014 Constant Currency Currency Total Vascular North America 67.9$ 62.5$ 9.2% (0.5%) 8.7% Anesthesia/Respiratory North America 55.4 54.7 1.6% (0.4%) 1.2% Surgical North America 38.1 35.2 9
Slide 26: Appendix B – Reconciliation of Revenue Growth
Appendix B – Reconciliation of Revenue Growth Dollars in Millions 26 1: amount is comprised of incremental price on existing products and the sale of new products of $1.6 million and $3.6 million, respectively, both of which are a result of the businesses acquired. % Basis Points Three Months Ended
Slide 27: Appendix C – Reconciliation of Adjusted Gross Profit and Margin
27 Appendix C – Reconciliation of Adjusted Gross Profit and Margin March 29, 2015 March 30, 2014 Teleflex gross profit as-reported 222,637$ 221,159$ Teleflex gross margin as-reported 51.8% 50.4% Losses, other charges and charge reversals (A) 2,124 - Adjusted Teleflex gross profit 224,761$ 221,159$ A
Slide 28: Appendix D – Reconciliation of Adjusted Operating Profit and Margin
28 Appendix D – Reconciliation of Adjusted Operating Profit and Margin March 29, 2015 March 30, 2014 Teleflex income from continuing operations before interest and taxes 65,608$ 59,020$ Teleflex income from continuing operations before interest and taxes margin 15.3% 13.5% Restructuring and other im
Slide 29: Appendix E – Reconciliation of Adjusted EPS, Q1 2015
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Quarter Ended – March 29, 2015 Dollars in millions, except per share data 29 Cost of goods sold Selling, general and administrative expenses Restructuring and other impairment charges Interest expense, net Income taxes Net income
Slide 30: Appendix F – Reconciliation of Adjusted EPS, Q1 2014
Appendix F – Reconciliation of Adjusted EPS from Continuing Operations Quarter Ended – March 30, 2014 Dollars in millions, except per share data 30 Cost of goods sold Selling, general and administrative expenses Restructuring and other impairment charges Interest expense, net Income taxes Net income
Slide 31: Appendix G – Reconciliation of Adjusted Tax Rate
31 Appendix G – Reconciliation of Adjusted Tax Rate Dollars in Thousands Three Months Ended March 29, 2015 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $48,605 $9,332 19.2% Restructuring and impairment charges 4,448 1,613 Losses, other
Slide 32: Appendix H – Reconciliation of 2015 Constant Currency Revenue Growth Guidance
Appendix H – Reconciliation of 2015 Constant Currency Revenue Growth Guidance 32 Low High Forecasted GAAP Revenue Growth (2%) ─ Estimated impact of foreign currency fluctuations 6% 6% Forecasted Constant Currency Revenue Growth 4% 6%
Slide 33: Appendix I – Reconciliation of 2015 Adjusted Gross Margin Guidance
Appendix I – Reconciliation of 2015 Adjusted Gross Margin Guidance 33 Note: In 2015, losses, other charges and charge reversals relate to expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014. Low High GAAP Gross Margin 52.35% 53.10% Losses, other charg
Slide 34: Appendix J – Reconciliation of 2015 Adjusted Operating Margin Guidance
Appendix J – Reconciliation of 2015 Adjusted Operating Margin Guidance 34 Note: In 2015, losses, other charges and charge reversals include expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014; acquisition and integration costs, and charges related to
Slide 35: Appendix K – Reconciliation of 2015 Adjusted Earnings per Share Guidance
Appendix K – Reconciliation of 2015 Adjusted Earnings per Share Guidance 35 Low High Diluted earnings per share attributable to common shareholders $4.13 $4.28 Restructuring, impairment charges and special items, net of tax $0.90 $0.95 Intangible amortization expense, net of tax $0.90 $0.95 Amortiza