Teleflex Incorporated · NYSE:TFX
Teleflex — Investor Day (May 2018)
174 slides from Teleflex's investor day presentation, May 11, 2018
Slide 1: 2018 Analyst and Investor Day
2018 Analyst and Investor Day May 11, 2018 New York City 1
Slide 2: Jake Elguicze
Jake Elguicze Treasurer and Vice President, Investor Relations 2
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements 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 ―anticipate,‖ ―believe,‖ ―estimat
Slide 4: Clinician Disclosures
Clinician Disclosures • Dr. David Sussman and Dr. Gregg R. Eure are paid to consult for Teleflex Incorporated • The opinions expressed by these clinicians are their own and do not necessarily reflect the views of Teleflex Incorporated 4
Slide 5: Agenda
Agenda Strategic Overview Liam Kelly – President and Chief Executive Officer Americas Market Update and 3-Year Growth Drivers Jay White, President, The Americas APAC Market Update and 3-Year Growth Drivers Sunny Goh, President, APAC 5 Minute Intermission 5
Slide 6: Agenda Continued
Agenda Continued EMEA Market Update and 3-Year Growth Drivers Jean-Luc Dianda, President, EMEA Interventional Market Update and 3-Year Growth Drivers Stewart Strong, President and General Manager, Interventional Interventional Urology Market Update and 3-Year Growth Drivers Dave Amerson, President a
Slide 7: Agenda Continued
Agenda Continued Financial Overview and 3-Year Outlook Thomas Powell – Executive Vice President and Chief Financial Officer Brief Concluding Remarks Liam Kelly – President and Chief Executive Officer Question and Answer Session Product Demonstrations Lunch Reception 7
Slide 8: Remaining 2018 Quarterly Earnings Dates
Remaining 2018 Quarterly Earnings Dates Second Quarter 2018 August 2, 2018 Third Quarter 2018 November 1, 2018 Fourth Quarter 2018 February 21, 2019 8 Note: dates are tentative until posted on www.teleflex.com.
Slide 9: Liam Kelly
9 Liam Kelly President and Chief Executive Officer 9
Slide 10: Making a Difference
Making a Difference Teleflex products are used everyday: 31,000 1,600 In 31,000 surgical procedures To help more than 1,600 patients who in the United States require vascular access intervention 6,000 3,200 To care for more than 6,000 By emergency responders to treat patients in the Intensive Care U
Slide 11: Demographics and Industry Trends in Our Favor
Demographics and Industry Trends in Our Favor 10,000People turn 65 in the U.S. everyday1 Lower acuity patients moving to lower cost 1.1B People 50+ sites of service in Asia by 20252 1. Pew Research Center: http://www.pewresearch.org/fact-tank/2010/12/29/baby-boomers-retire/ 11 2. APACMed: http://www
Slide 12: Well Positioned to Compete in Today's Dynamic Industry
Well Positioned to Compete in Today‘s Dynamic Industry Value Based Reimbursement Fee-for-service transforming to incentive-based-system Quality Transparency CMS tracking safety, mortality and re-admission measures Consumer Driven Healthcare Educated patients who demand the best clinical outcomes Por
Slide 13: Teleflex Investment Thesis
Teleflex Investment Thesis Global • Leading positions in growing markets (vascular, interventional access, interventional urology) Leadership • Established and respected global brands • Global scale to succeed in today’s healthcare marketplace Unique Size • More nimble than larger device companies •
Slide 14: Portfolio Transformation
Portfolio Transformation 2010 2018 Multiple industries: medical, aerospace, commercial 100% Medical devices Regionally focused leadership Product/customer focused leadership Commoditized, hospital supply business Higher value, differentiated products Organic growth driven by new products Limited new
Slide 15: Teleflex Segments at a Glance
Teleflex Segments at a Glance 2017 YoY YoY % of Revenues As-Reported Constant Total (mm) Growth Currency Growth Business Vascular NA $313.6 6.2% 6.1% 15% Interventional NA $220.6 167.6% 167.5% 10% Anesthesia NA $198.0 (0.4%) (0.5%) 9% $2.146 Surgical NA $175.2 1.7% 1.6% 8% Billion EMEA $552.7 8.2% 6
Slide 16: Historical Revenue Growth
Historical Revenue Growth $2,146 (in millions) $1,868 $1,840 $1,810 $1,493 $1,551 $1,696 ~4% Average organic constant currency revenue growth, 2015 - 20171 2011 2012 2013 2014 2015 2016 2017 1 Approximate average of annual organic constant currency revenue growth from 2015 though 2017 16 Note: See a
Slide 17: Track Record of Adjusted Gross and Operating Margin Expansion
Track Record of Adjusted Gross and Operating Margin Expansion Adjusted Gross Margin Adjusted Operating Margin +170 bps [VALUE]% +100 bps 25.1% [VALUE]% +140 bps +260 bps [VALUE]% +120 bps 24.1% [VALUE]% +150 bps [VALUE]% 21.5% [VALUE]% [VALUE]% 20.0% [VALUE]% 2014 2015 2016 2017 2014 2015 2016 2017
Slide 18: Core Strategic Building Blocks
Core Strategic Building Blocks Teleflex is a Differentiated Med Tech Asset Drive Organic Deliver Non-Revenue Continue to be a Align Portfolio Continue to Attract Revenue Growth Dependent Margin Serial Acquirer with Favorable Key Talent Expansion Demographics • Address major • Execute restructuring •
Slide 19: Teleflex 2021: 3 Year Growth Drivers
Teleflex 2021: 3 Year Growth Drivers High growth company with gross and operating margin expansion Execute Leverage strategic global M&A Drive infrastructure Medium Continued utilization Invest in cadence of growth growth key disease of new products company states and product markets launches with g
Slide 20: Invest in Key Disease States and Markets
Invest in Key Disease States and Markets Catheter complications Drive utilization Interventional procedures Drive utilization/ Grow market share Percutaneous laparoscopy Grow market share Anesthesia and Emergency medicine Drive utilization Men‘s health Drive utilization 20
Slide 21: Maintain Cadence of Organic Growth from New Products
Maintain Cadence of Organic Growth from New Products^ 1.9% Constant Currency Revenue Growth from New Products Year-Over-Year 1.3% 1.1% 0.9% Key Growth Contributors Key Growth Contributors Key Growth Contributors Key Growth Contributors • VPS catheter navigation • EASK CVC • ConchaTherm Neptune • VPS
Slide 22: Drive Utilization of Growth Products
Drive Utilization of Growth Products Arrow® ON-Control® Powered Bone Access System Arrow ® EZ-IO® The UroLift® Intraosseous System Vascular Access Device LMA® SureSeal™ Percutaneous 100% Silicone Access Devices Turnpike® Catheter 22
Slide 23: Leverage Global Infrastructure
Leverage Global Infrastructure Strategies • Leverage recent go-directs to strengthen control of commercial channels • Drive adoption of NeoTract and VSI products in new markets • Drive clinically differentiated new products across vascular, interventional, surgical and urology ORANGE: Americas BLUE:
Slide 24: 2018 Teleflex Distributor Versus Direct Revenue Mix
2018 Teleflex Distributor Versus Direct Revenue Mix Total expected 2018 revenues: ~6% Distributor1 $2.468B - ~94% Direct sales $2.490B Opportunity exists to further control sales channel and expand margins in select markets 24 1. Includes only those distributors outside of the U.S. representing Tele
Slide 25: Restructuring Programs Delivering Margin Expansion
Restructuring Programs Delivering Margin Expansion ~$60M of annual pre-tax savings Restructuring Initiatives to Date • North America facility consolidations • Reorganization of strategic business units and shared service center functions delivered through 20171 • Centralization of European administr
Slide 26: 2018 Footprint Realignment Plan: Incremental Savings
2018 Footprint Realignment Plan: Incremental Savings Initiatives Relocating certain manufacturing to existing lower-cost location ~$25M- $25M – $30M $30M Outsourcing certain distribution operations Expect to begin realizing savings in 2018 Expect to be substantially complete by end of 2024 of antici
Slide 27: M&A Has Transformed Our Financial Profile
M&A Has Transformed Our Financial Profile 27
Slide 28: Execute Disciplined M&A Strategy
Execute Disciplined M&A Strategy Acquisition Criteria M&A Focus • Fits existing business units and call points 1 Scale • Provides superior clinical benefit to existing alternatives • Provides cost-benefit to the hospital 2 Dealer to direct • Strong IP and patent protection • Long product life cycles
Slide 29: Teleflex 2021: 3 Year Growth Drivers
Teleflex 2021: 3 Year Growth Drivers High growth company with gross and operating margin expansion Execute Leverage strategic global M&A Drive infrastructure Medium Continued utilization Invest in cadence of growth growth key disease of new products company states and product markets launches with g
Slide 30: High Growth Company
High growth company with gross and 6% - 7% operating margin Anticipated average organic, expansion constant currency revenue growth from 2019 - 2021 30 1 Defined as average of annual organic, constant currency revenue growth for the full years 2019, 2020 and 2021
Slide 31: Jay White
31 Jay White President, The Americas 31
Slide 32: The Americas at a Glance
The Americas at a Glance Footprint Revenue Base Americas ⟶ 62% of TFX FY ‗17 Revenue • ~35 Countries • ~59k Customers • ~40k Products Americas 62% Rest of World 38% Americas FY ‗17 Revenue Mix Vascular Interventional Access Surgical ~$1,324M FY‘17 Revenue OEM ~62% of Global FY‘17 Revenue Anesthesia
Slide 33: Americas 3-Year Growth Drivers
Americas 3-Year Growth Drivers 1 1 Invest Invest in Key in key Disease disease States states and Markets 2 2 Drive Drive Utilization utilization of of Growth growth Products products 3 New New Product product Launches launches 33
Slide 34: Key Disease States and Markets
Key Disease States and Markets Catheter Interventional Men‘s Health Percutaneous Anesthesia Complications Procedures Laparoscopy and Emergency Medicine ~$46K ~500K ~12M ~3.5M >141M Per patient to Percutaneous Men actively Laparoscopic Visits to the treat catheter coronary managed for procedures emer
Slide 35: Catheter Complications: Antimicrobial Technology
Catheter Complications: Antimicrobial Technology Protected Catheters 1 Invest in Key Disease States and Markets 2 Drive Utilization of Growth Products Catheter Navigation Top Market Trends Growth Strategy • Pressures on healthcare funding linked to • Portfolio enhancement around - Right Line, patien
Slide 36: Interventional Procedures
Interventional Procedures TrapLiner® Catheter Invest in Key Disease States and 1 Markets 2 Drive Utilization of Growth Products Arrow® AC3 Optimus™ Intra-Aortic Balloon Pump 3 New Product Launches Growth Strategies Top Market Trends Growth Strategy • Coronary artery disease is the most • Expand new
Slide 37: Men's Health
Men‘s Health 1 Invest in Key Disease States and The UroLift® System Markets 2 Drive Utilization of Growth Products 3 Growth New Product Launches Strategies Top Market Trends Growth Strategy • Huge gap in care between drug therapies • Methodical physician education and training and tissue destructive
Slide 38: Percutaneous Laparoscopy
Percutaneous Laparoscopy 1 Invest in Key Disease States and Percutaneous Markets Access Devices 3 New Product Launches Growth Strategies Top Market Trends Growth Strategy • Broad awareness through market development • 3.5 million laparoscopic procedures activities generate demand for targeted perfor
Slide 39: Anesthesia/Emergency Medicine: Arrow EZ-IO System
Anesthesia/Emergency Medicine: Arrow® EZ-IO® System EZ-IO® Intraosseous 1 Invest in Key Disease States and Markets Vascular Access Device 2 Drive Utilization of Growth Products 3 Top Market Trends Growth Strategy • >141 million visits to the emergency room in the U.S. • Continued leadership in profe
Slide 40: Anesthesia/Emergency Medicine: Re-Plas Freeze-Dried Plasma
Anesthesia/Emergency Medicine: Re-Plas® Freeze-Dried Plasma 1 Invest in Key Disease States and Re-Plas® Freeze-dried Plasma Markets 3 New Product Launches Growth Strategies Top Market Trends Growth Strategy • Partner with military through regulatory process • >141 million visits to the emergency roo
Slide 41: Market Opportunities and Uses of Plasma
1 Invest in Key Disease States and Markets 3 New Product Launches Market Opportunities and Uses of Plasma Potential Government Market Potential Civilian Market Military Helicopter (HEMS) • Battlefield and evacuation • 1,045 EMS rotor vehicles DHS/HHS Ambulance (GEMS) • Disaster stockpiles • 36,000 E
Slide 42: RePlas Freeze-Dried Plasma Market
1 Invest in Key Disease States and Markets 3 New Product Launches RePlas® Freeze-Dried Plasma Market Market Size Estimate Government ~$20M - Total market size $25M Civilian* $ ~$100M ~$70M - $75M Source: Management estimates 42 *Does not include civilian trauma hospitals
Slide 43: RePlas Freeze-Dried Plasma Regulatory Update
1 Invest in Key Disease States and Markets 3 RePlas® Freeze-Dried Plasma Regulatory Update New Product Launches Dec 2017 April 2018 2019 FDA and DoD launch joint program to expedite FDA confirms accelerated BLA BLA submission expected medical products intended to save lives of approval pathway; conf
Slide 44: Sunny Goh
44 Sunny Goh President, APAC 44
Slide 45: APAC Business at a Glance
APAC Business at a Glance Footprint Revenue Base APAC ⟶ 13% of TFX FY ‗17 Revenue • ~21 Countries • ~3,700 Customers • ~5,400 Products APAC 13% Rest of World 87% APAC FY ‗17 Revenue Mix Surgical Vascular Anesthesia ~$269M FY‘17 Revenue Respiratory ~13% of Global FY‘17 Revenue Interventional Access U
Slide 46: APAC Med Tech Market
APAC Med Tech Market 2020 Rankings APAC MedTech Market, $B $133B #1 #3 $88B 8% US EU CAGR #2 APAC 2015 2020 A$ 65M $2.3T in ~2/3 of 511M elderly babies healthcare costs middle class people Estimated by 2020 will reside in APAC by 2020 in APAC by 2030 born each year 46 Sources: Economist Intelligence
Slide 47: APAC 3-Year Growth Drivers
APAC 3-Year Growth Drivers 1 1 Expand InvestPresence in key disease in China states 2 2 Strengthen Drive utilization Controlofofgrowth Commercial products Channel 3 Drive New Growth product of launches Leadership Products 47
Slide 48: China: A Significant Growth Opportunity
1 Expand Presence in China China: A Significant Growth Opportunity Tailwinds Headwinds Rising Affordability Increasing Regulatory & Middle Class Complexity & Challenges Increasing Tenders & China Urbanization 1.4B people Protectionist & Access to Care Policies Cost Containment1 & Aging Population Re
Slide 49: Strategy to Accelerate Organic Growth in China
1 Expand Presence in China Strategy to Accelerate Organic Growth in China 1 Defend/Innovate in Core Businesses • Hem-o-Lok® Ligation System and LMA® Airway Differentiation strategy • Clinical/consultative selling China ~4% of total FY‘17 TFX revenues 2 Realize Channel Value • Channel & customer deve
Slide 50: Strengthen Control of Commercial Channel
2 Strengthen Control of Strengthen Control of Commercial Channel Commercial Channel Strategy • Product localization - utilize in-country sourcing • Improve educational offerings and training • Reduce reliance on distributors • Expand portfolio selling capabilities 50
Slide 51: Key Product Growth Contributors: APAC
3 Drive Growth of Key Product Growth Contributors: APAC Leadership Products LMA® SureSeal™ Arrow® AC3 Ligation 100% Silicone Optimus™ Airway Intra-Aortic Balloon Pump Guideliner® Percutaneous PICC V3 Catheter Laparoscopy EZ-IO® Intraosseous The UroLift® Vascular Access System Device 51
Slide 52: Intermission
52 Intermission Five Minute Break 52
Slide 53: Jean-Luc Dianda
53 Jean-Luc Dianda President, EMEA 53
Slide 54: EMEA Business at a Glance
EMEA Business at a Glance Footprint Revenue Base EMEA ⟶ 26% of TFX FY ‗17 Revenue • 105 Countries • 13k Customers • 15k Products EMEA 26% Rest of World 74% EMEA FY ‘17 Revenue Mix Urology Anesthesia Vascular ~$553M FY‘17 Revenue Surgical ~26% of FY‘17 Global Revenue Interventional Access Respiratory
Slide 55: EMEA 3-Year Growth Drivers
EMEA 3-Year Growth Drivers 1 1 Drive Invest Utilization in key disease in Underpenetrated states Markets 2 2 Leverage Drive utilization Recent Go-Directs of growth products 3 Focus NewResources product launches on Leadership Products 55
Slide 56: EMEA Focus Areas and Strategies
1 Drive Utilization in Underpenetrated Markets EMEA Focus Areas and Strategies • Leverage VSI sales force investments and go-directs Interventional Access • Leverage regional increase in interventional procedural trends • Expand cadaver lab program and dedicated sales channels • Penetrate remaining
Slide 57: Vascular Solutions Go Direct Opportunity
2 Leverage Recent Go-Directs Vascular Solutions Go Direct Opportunity Strategy • Recent acquisition of various legacy VSI distributors provides TFX with an opportunity to accelerate interventional revenue growth and improve margins • Focus on selling full bag capabilities • Deepen relationships with
Slide 58: Key Product Growth Contributors: EMEA
Focus Resources on 3 Leadership Products Key Product Growth Contributors: EMEA Arrow® Liquick X-treme PICC VPS Rhythm® Intermittent Catheter Device System EZ-IO® Intraosseous Arrow® AC3 Optimus™ Vascular Access Intra-Aortic Guideliner® Device Balloon Pump V3 Catheter Arrow® OnControl® The UroLift® L
Slide 59: Stewart Strong
59 Stewart Strong President and General Manager, Interventional North America 59
Slide 60: Interventional North America at a Glance
Interventional North America at a Glance Footprint Revenue Base Interventional N.A. ⟶ 10% of TFX FY ‗17 Revenue Interventional N.A. 10% Rest of TFX 90% Product Categories • Coronary interventions • Radial interventions ~$221M FY‘17 Revenue • Interventional radiology • Thrombectomy ~10% of Global FY‘
Slide 61: Vascular Solutions Business Update
Vascular Solutions Business Update Integration on Schedule Added 8% to Teleflex’s constant currency revenue growth in FY 2017 Business became organic in February 2018 and is expected to lead to an acceleration of TFX annual organic revenue growth Distributor conversions substantially complete Contin
Slide 62: Interventional 3-Year Growth Drivers
Interventional 3-Year Growth Drivers 1 1 Further InvestStrengthen in key disease Commercial states Organization 2 2 Drive Drive Utilization utilization of of Growth growth Products products 3 Enter NewNew product Markets launches 62
Slide 63: Building on a Strong Commercial Base
1 Further Strengthen Commercial Organization Building on a Strong Commercial Base Established & Respected Clinical Leader in the Interventional Radiology and Cardiology Spaces • Identify and pursue opportunities for expanded indications • Professional education for complex PCI and CTO Valued Partner
Slide 64: ARROW On-Control Powered Bone Access System
2 Drive Utilization of Growth Products ARROW® On-Control® Powered Bone Access System • Up to 55% faster procedure time to improve efficiency versus manual biopsy needles1 ~$160M • Fewer second-attempt procedures required versus manual biopsy needles1,2 On-Control® Total Addressable U.S. Market1 • Co
Slide 65: On-Control System Significant Utilization Opportunity
2 Drive Utilization of Growth Products On-Control® System Significant Utilization Opportunity On-Control® System North America Utilization per Account Strategies to Drive Utilization: • Invest in professional education 20+ kits/month 11% Leaders and cadaver training 10-18 kits/month 14% Regulars • L
Slide 66: Arrow AC3 Optimus Intra-Aortic Balloon Pump
2 Drive Utilization of Growth Products Arrow® AC3 Optimus™ Intra-Aortic Balloon Pump Advanced IABP performance even in the most critical conditions • With the onset of an elevated heart rate or arrhythmia, the patient’s survival can suddenly depend on the ability of the IABP to keep pace with the si
Slide 67: Turnpike Catheters
2 Drive Utilization of Growth Products Turnpike® Catheters Turnpike® Spiral Catheter Distal nylon coil provides rotational assistance for enhanced trackability Turnpike® Gold Catheter Gold-plated, threaded metallic tip for enhanced advancement Turnpike® LP Catheter Low-profile version with greater t
Slide 68: TrapLiner Catheter
2 Drive Utilization of Growth Products TrapLiner™ Catheter 3 Enter New Markets Guide Extension plus Wire Trapping • Balloon inflates to maintain Balloon inflates via a hypotube push rod, guidewire position trapping the guidewire • Rapid exchange guide against the interior wall of the guide catheter
Slide 69: Dave Amerson
Dave Amerson President and General Manager, Interventional Urology 69
Slide 70: Our Vision and Our Mission
OUR VISION: OUR MISSION: To be THE Leader To transform the standard of care for BPH by in BPH Care delivering the best patient experience and outcomes, pioneering technologies, and being the preferred industry partner of clinicians while embracing a culture that reflects our core values and allows o
Slide 71: NeoTract Business Update
NeoTract Business Update Integration on Schedule Management team intact No regrettable sales force turnover Continue to nurture high performing culture Maintain employee engagement Investing to ensure that hyper-growth revenue trajectory continues 71
Slide 72: NeoTract: A Compelling Growth Asset
NeoTract: A Compelling Growth Asset Significant • Initial target market 8.5M U.S. BPH drug THE UROLIFT® SYSTEM Market or drug drop out patients; >$30B total Opportunity addressable market • 2 randomized controlled trials; PET Suture Exceptional 7 single arm studies Clinical Data • 25 peer-reviewed p
Slide 73: Very Large Clinical Need and Market Opportunity
Very Large Clinical Need and Market Opportunity 0.3 Surgery Drug drop out 1.5 8.5 Million Men on drugs or drug drop out UroLift® System target market Drugs 7.0 $30B TAM Watchful waiting 3.2 12.0 Million U.S. men treated for BPH1 #Men (millions) 73 1. NeoTract internal market estimates for 2016
Slide 74: BPH is the Number One Reason Men Visit a Urologist
BPH is the Number One Reason Men Visit a Urologist Top 10 Reasons for Visits to Urologists2 BPH • ~12,000 urologists in the U.S.1 Surgery Follow Up Prostate Cancer • ~47% of all BPH patients are in the Penis Disorder, Other care of a urologist1 Specific Exam, Other Urinary Tract Infection • Initial
Slide 75: Revolutionizing BPH Relief – What Patients Want
Revolutionizing BPH Relief – WHAT PATIENTS WANT Rapid Relief with Minimal Side Effects Durable • Reduce patient ―earn out‖ • Retreatment rate in-line with • No impact on sexual function surgical options • Patients get back to normal life quickly Performed in Office/Day-Case Setting Economic Drivers
Slide 76: 2017 Men's Health Survey
2017 Men‘s Health Survey • 1,000 men and 1,000 women surveyed in 4Q17 • Measured impact of BPH on couples and to ascertain the reasons why men may not be seeking treatment • Results: while men may not be communicating about their symptoms or aware of their impact, the lives of their partners are oft
Slide 77: What did we learn?
UroLift® System Can Be First Line Therapy 608 UroLift® System patients across 16 practices 2/3 of patients came were surveyed: from drugs and watchful waiting What did we learn? 1. In 2016, we conducted a survey involving 608 UroLift patients across 16 urology practices in which we asked the patient
Slide 78: UroLift System Preserves Anatomy
UroLift® System Preserves Anatomy Tissue Destructive Procedures UroLift® System PRE POST PRE POST Tissue Destroyed Anatomy Preserved • Risks of bleeding, stricture, incontinence • Safe, minimally invasive procedure • Typically weeks of discomfort • Rapid relief typically within days • Nearly all req
Slide 79: Exceptional Clinical Results
Exceptional Clinical Results Introducing a New Technology the Right Way An Investment Like No Other 25 • 5-Year data Clinical Papers including • 2 randomized trials two randomized studies • NICE guidance • > 50,000 patients treated across three continents Dramatically Improved Outcomes • Significant
Slide 80: Reducing Tradeoffs Between Effectiveness and Risk Compared to Drugs
Reducing Tradeoffs Between Effectiveness and Risk Compared to Drugs Time to First Evidence of Symptom Improvement Incidence of New Onset, Sustained Sexual Dysfunction5,7 Statistically Significant at 10-16 Months5,6,7 Relief (Weeks)1,2,3,4,5 Mean AUASI Reduction Ejaculatory Dysfunction Erectile Dysfu
Slide 81: Reducing Tradeoffs Compared to Tissue Destructive Procedures
Reducing Tradeoffs Between Effectiveness and Risk Compared to Tissue Destructive Procedures Need for Post-Op Catheter1,2 Incidence of New Onset, Incidence of New Onset, Sustained Sexual Dysfunction3,4 Other Chronic Side Effects3,4 Ejaculatory Dysfunction Erectile Dysfunction PVP ~100% 65% TURP Laser
Slide 82: Healthcare Systems Recognize UroLift System Efficacy & Adoption
Healthcare Systems Recognize UroLift® System Efficacy & Adoption American Urological Association Self Assessment Study Program ? A 55-year-old man has bothersome LUTS poorly responsive to medical therapy. Pressure-flow urodynamics are shown. He refuses therapy that may result in retrograde ejaculati
Slide 83: Broad Reimbursement in Place
Broad Reimbursement in Place Code Dedicated category 1 CPT codes specific to the prostatic urethral lift 100% Medicare Administrative Contractors (MAC) Coverage ~240 million covered lives; coverage from national commercial payers and independent networks including United, BCBS, Kaiser, Geisinger & S
Slide 84: UroLift System: Commercial Strategy
UroLift® System: Commercial Strategy Focused on Durable and Deep Account Penetration Strategies Build the Brand Adoption Drive Patient Pursue International Awareness Markets • Positioning & Claims • Physician orientation • Public Relations • Selectively increase – 5 Year data to the UroLift System r
Slide 85: Why is Going Deep So Important?
Why is ―Going Deep‖ So Important? Driving Consistent Utilization Produces better long term outcomes Ensures positive patient experiences Creates physician following of the UroLift® System 85
Slide 86: Account Adoption Takes Time
Account Adoption Takes Time 14 ◼ 2016 12 ◼ 2017 10 ◼ 2018 8 Cases 6 Account becomes active 4 2 0 AugSept Aug SeptOct OctNov NovDec Dec Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Jan Jan Feb Feb Mar Mar Apr Apr Introduce Account Adoption Drivers UIP Reimbursement Additional Account • Physician
Slide 87: Building BPH Market Leadership with Clinical Data
Building BPH Market Leadership with Clinical Data Clinical Program Rationale Targeted Studies Market leadership and share protection • MedLift Podium presence Expanded/maintained payor coverage • Real world retrospective registry New and niche market access • Urinary retention Competitive differenti
Slide 88: Expanding UroLift System Indications
Expanding UroLift® System Indications Recently received FDA 510(k) clearance for changes to the IFU for both UroLift® System and UroLift® 2 System devices: • Removal of obstructive median lobe contraindication • Addition of a median lobe indication • Lowered minimum age to men 45 and older (previous
Slide 89: Real World Retrospective Study
Real World Retrospective Study Data from >800 patients in ―real world‖ setting consistent with randomized, five-year L.I.F.T. study Retention Cohort: 96% of catheterized patients who entered study in retention no longer required a catheter following the UroLift® System Enrollment will continue up to
Slide 90: Significant OUS Milestones Achieved
Significant OUS Milestones Achieved • Over 7,500 patients treated in Europe and Australia • Over 330 OUS urologists trained • UroLift® System registered in 18 countries • Strong Physician relationships in numerous countries • Positive European Association of Urology (EAU) guidelines recommendation •
Slide 91: UroLift System Japan Strategy
UroLift® System Japan Strategy • Shonin submitted • Apply for and establish reimbursement • Work to build KOL support for product ahead of launch • Conduct post market clinical study as part of Shonin requirement • Leverage commercial direct presence in Japan 91
Slide 92: Interventional Urology Three Year Growth Strategy
Interventional Urology Three Year Growth Strategy • Expand to select OUS countries • Collect clinical data to protect brand and expand indications • Leverage obstructive median lobe indication • UroLift ® System product enhancements • UroLift® 2 System launch • Increase U.S. physician utilization •
Slide 93: David Sussman, D.O. FACOS
93 David Sussman. D.O. FACOS Delaware Valley Urology 93
Slide 94: Dr. David Sussman, DO, FACOS
Dr. David Sussman, DO, FACOS • Practicing 25 years • University of New England • Specialize in lower urinary tract disorders • Delaware Valley Urology is a large urology practice in southern NJ, with 30 physicians, all treating BPH • Chief of Urology at Jefferson, NJ, Clinical Associate Professor, D
Slide 95: Normal vs. Enlarged Prostate
Normal vs. Enlarged Prostate • As the prostate enlarges, pressure can be put on the urethra • Causes urinary problems Symptoms Normal Prostate Anatomy Enlarged Prostate (BPH) Anatomy • Frequent urination • Multiple trips to the bathroom at night • Sudden urge to urinate BLADDER HYPERTROPHIED DETRUSO
Slide 96: Prevalence of Histologic BPH Increases with Age
Prevalence of Histologic BPH Increases with Age By the age of 60, prevalence approaches 70% 100 90 80 70 Pradhan (1975) Moore (1943) 60 Baron (1941) 50 Prevalence (%) Swyer (1944) 40 Harbitz (1972) Fang-Liu (1991) 30 Franks (1954) 20 Holund (1980) 10 Karube (1961) 0 20-29 30-39 40-49 50-59 60-69 70-
Slide 97: BPH Patient Pathway: A Large Gap in Care
BPH Patient Pathway A Large Gap in Care Watchful Waiting Drugs Dropout Tissue Destructive Procedures: (Surgery/Thermal Ablation) Key No symptom Moderate relief with Significant relief with: outcomes relief potential for: • Potential for permanent • Lifetime pill taking sexual dysfunction, incontinen
Slide 98: BPH Patient Pathway: Earlier Treatment
BPH Patient Pathway Earlier Treatment Watchful Drugs Dropout Tissue Destructive Waiting Procedures: (Surgery/Thermal Ablation) Key No symptom Moderate relief with Significant relief with: Significant relief with: outcomes relief potential for: • 0% new onset, sustained • Potential for permanent • Li
Slide 99: BPH Drug Patients Are Not Satisfied
BPH Drug Patients Are Not Satisfied • 2 out of 3 patients are not satisfied with the effectiveness of their medication1 • In a survey of men age > 50 seeing the urologist, 65% were interested in an alternative to medication2 • 48% patients do not have a clinically significant improvement in symptoms
Slide 100: Surgery is a Big Step for Patients
Surgery is a Big Step for Patients • General anesthesia with operative risks - Transfusion, significant hematuria1 • Catheterization for days2 • 4-6 weeks irritative voiding symptoms1,3 • Up to 6 week recovery4,5 • Risk of permanent complications1 - Urinary incontinence - Ejaculatory dysfunction Onl
Slide 101: Why a Truly Minimally Invasive Approach is Needed
Why a Truly Minimally Invasive Approach is Needed • Approximately 7 million US men on BPH meds in 20164,5 • Up to 70% not compliant in first year1, yet don’t want TURP • By the time they elect TURP/laser, bladder can be weakened or permanently damaged2 Healthy Bladder Bladder Worsens Permanently Dam
Slide 102: The UroLift System Treatment
The UroLift® System Treatment
Slide 103: The UroLift System
The UroLift® System PET Suture Simple, Straightforward Procedure Offering a Better Patient Experience • The only treatment with 0% new, Nitinol Capsular Tab sustained sexual dysfunction Stainless Steel • Rapid relief and recovery in days, Urethral End Piece not months • Lowest catheter rate of any B
Slide 104: Procedure Video
UROLIFT BPH Relief. In Sight...
Slide 105: The UroLift System Applications in My Practice
The UroLift® System Applications in My Practice
Slide 106: Who is the Ideal UroLift System Patient?
Who is the Ideal UroLift® System Patient? Potentially ANY BPH/LUTS Patient: • Who has only modest symptomatic relief from medications • Are frustrated by side-effects, costs, or daily hassle of medication • Don’t want to try meds • Want to preserve sexual function And Especially: • Those concerned a
Slide 107: The UroLift System Offers My Patients a New Treatment Option
The UroLift® System Offers My Patients a New Treatment Option Minimally Invasive Moderately Invasive Surgery Tissue Tissue preservation Tissue ablative Tissue removal Site of Service Office/ASC Office/ASC Hospital likely Rapid Moderate Longer Recovery (days) (weeks) (months) Post-Op Catheter Unlikel
Slide 108: Advantages of the UroLift System in the Office or ASC
Advantages of the UroLift® System in the Office or ASC Patient • Less anxiety, familiar surroundings, easier scheduling • Fewer risks • Faster recovery • Minimal anesthesia Urologist • Easy to learn • Efficient • 0 day global period • Happy patient = happy staff
Slide 109: Case Example
Case Example • Recently treated a patient age 65 with bothersome obstructive symptoms • Decreased flow, hesitancy, nocturia (waking to urinate 2 time nightly) and very unhappy with current status • IPSS 22 • Tried medication which was somewhat helpful, but unhappy with sexual side effects • Discusse
Slide 110: Gregg R. Eure, M.D., FACS
110 Gregg R. Eure. M.D., FACS Urology of Virginia 110
Slide 111: Dr. Gregg Eure, MD, FACS
Dr. Gregg Eure, MD, FACS • Urology of Virginia • Eastern Virginia Medical School • UroLift® Center of Excellence • 33 Urologists Private Practice/Medical School Affiliation • BPH/Men’s Health Focus • International expert GreenLight laser for BPH • UroLift® System investigator and trainer • MedLift t
Slide 112: UroLift System Experience
UroLift® System Experience • ~400 cases, began 3/15 • Outpatient, anesthesia • Initial patient selection: “difficult, late-stage patients” • Good results • Minimal complications
Slide 113: UroLift System Clinical Data Overview
UroLift® System Clinical Data Overview
Slide 114: The UroLift System Prostatic Urethral Lift (PUL)
The UroLift® System Prostatic Urethral Lift (PUL) • 2 randomized clinical trials • Long-term (5 year) data “The PUL clinical publication record is flawless. Every patient • 7 single arm studies treated under a clinical protocol appears in at least one peer- reviewed publication. The outcomes from th
Slide 115: How We Evaluate Patients and Treatment Effects
How We Evaluate Patients and Treatment Effects • IPSS/AUASI score • Quality of Life score (QoL) • Post Void Residuals (PVR) • Flow rates (Qmax) • Rx satisfaction also measured in my practice
Slide 116: The L.I.F.T. Study
The L.I.F.T. Study Luminal Improvement Following Prostatic Tissue Approximation for the Treatment of LUTS • This is the largest, prospective, randomized study of the Prostatic Urethral Lift (PUL) procedure • This study was the basis for FDA De Novo approval • 19 centers (14 USA, 3 Australia, 2 Canad
Slide 117: 5-Year Data Demonstrates Outcomes are Rapid, Durable and Reproducible
5 Year Data Demonstrates Outcomes are Rapid, Durable and Reproducible Rapid and Durable Efficacy Surgical Retreatment Rates 30 45% 40% 20 IPSS 35% 10 30% 0 25% 20% 6 15% 10% QoL 3 5% 0% 0 UroLift 1,2 5,6 7,8 2,3 2,4 UroLift System TURP Laser TUMT TUNA 3 year data 4 year data 5 year data 16 12 1 Roeh
Slide 118: L.I.F.T. Study Safety Profile: Minimal Morbidity
L.I.F.T. Study Safety Profile: Minimal Morbidity Most common adverse events were mild to moderate and typically resolved by 2-4 weeks PUL Subjects Control Subjects Dysuria 34% 17% Hematuria 26% 5% Pelvic pain 18% 5% Urgency 7% 0% Urge 4% 2% Incontinence UTI 3% 2% No incidence of de novo sustained ej
Slide 119: Uniquely Avoids Sexual Dysfunction
Uniquely Avoids Sexual Dysfunction Erectile Dysfunction ED EjD • Surgery: 3%-10% Surgery: • Thermal: 0%-3% TURP1 10% 65% • The UroLift® System3: 0% PVP1 7% 42% HoLEP1 3% 59% Ejaculatory Dysfunction Minimally Invasive: • Surgery: 42%-65% 3% 4% TUNA1 • Thermal: 4%-16% TUMT1 3% 5%-16% • The UroLift® Sy
Slide 120: Reproducible Results Across Studies
Reproducible Results Across Studies Sources: Roehrborn, et al., J Urol April 2017; 197 (4): e511. Gratzke, et al. BJU Int 2016 Nov 14, doi: 10.1111/bju. 13614. Chin, et al., Urology 2012 Jan; 79(1): 5-11. Shore, et al., Can J Urol 2014; 21(1): 7094-7101. Sonksen, et al. Eur Urol 2015; 68: 643-652. R
Slide 121: My Early Outcomes
My Early Outcomes 25 L.I.F.T. Study… 20 Eure (n=34) Mean AUASI 15 10 5 0 0 3 6 9 12 Time (months) • ~400 Pt treated to-date, F/U for 12 months • 11 with known bladder issues • Not plotted: Retention Pts AUASI @ 2 weeks: 3, 7 (n=2) • 1 pt progressed to TUIP/TURP • Baseline AUASI reflects medical tx f
Slide 122: Pre Op / Post Op Case
Pre Op: 85 yo with BPH and associated urge and urge incontinence, failed med rx. On Plavix, TRUS 26 gms Post Op
Slide 123: Pre Op / Post Op Case
Pre Op: 68 yo with BPH and OAB with impaired Post Op: contractility. AUA 24, TRUS 47 gms; PVR 315 At 3 wks: AUA 4 and PVR 86 cc
Slide 124: New Expanded Indication
New Expanded Indication
Slide 125: Expanding The UroLift System Indications
Expanding The UroLift® System Indications Recent FDA 510(k) clearance for changes to the IFU for both The UroLift® System and The UroLift® 2 System devices: • Removal of obstructive median lobe contraindication • Addition of a median lobe indication • Lowered minimum age to men 45 and older (previou
Slide 126: Ability to Treat More Patients
Ability to Treat More Patients Can now treat up to 95% of patients based on label indications Patient Fallout Before Indication No Visible Possible Obstructive Obstructive Median Lobe Median Lobe Median Lobe 85% 10% 5% of pts. of pts. of pts.
Slide 127: MedLift Study Overview
MedLift Study Overview • FDA IDE study • 9 US centers • 45 subjects • Single-arm study • Follow-Up at 1, 3, 6, 12 months • Independent review of cystoscopy videos and uroflow over-reads • Independent Clinical Events Committee adjudicated all AE
Slide 128: MedLift Results: All Endpoints Met
MedLift Results: All Endpoints Met
Slide 129: Median Lobe Cases
Median Lobe Cases 2/13/2018 Case 1 Case 2 Case 3 Before After LL Treatment After ML Treatment Deployments 6/6 LL 5/5 LL 6/7 LL 1/1 ML 2/3 ML 1/1 ML
Slide 130: Impact on My Practice Since Adopting the UroLift System
Impact on My Practice Since Adopting the UroLift® System • More favorable treatment to offer patients • More procedural oriented practice • OR/Procedure days increased 3X • More productive • More opportunity to “fix” and satisfy patients
Slide 131: Question and Answer Session
131 Question and Answer Session 131
Slide 132: Thomas Powell
132 Thomas Powell Executive Vice President and Chief Financial Officer 132
Slide 133: Shareholder Value Creation: 2015 - 2017
Shareholder Value Creation: 2015 - 2017 Shareholder Value Creation Revenue Gross Margin Expansion SG&A / R&D Productivity Tax 4% annual average Footprint Management and Efficient tax structure organic constant consolidation salesforce currency growth1 reorganizations Geographic mix Cost
Slide 134: 2015 Analyst Day Targets and Execution
2015 Analyst Day Targets and Execution 2015 Analyst Day Implied Performance Based on Current 3-Year Target 2018 Financial Guidance Organic Constant Currency 5% - 6% 2018 guidance: 5% - 5.5% Revenue Growth Adjusted Gross Margin Expansion +350 – 400 bps 480 to 530 bps over 2016 - 2018 Adjusted Operati
Slide 135: Shareholder Value Creation
Shareholder Value Creation Teleflex stock compared to S&P 500 and IShares medical device ETF (trailing three years) TFX: 121% IShares Medical Device Index: 63% S&P 500: 26% 2018 135
Slide 136: Reaffirming 2018 Guidance
Reaffirming 2018 Guidance 1 Constant currency revenue growth expected to be 12% to 13% 2 Organic constant currency revenue growth expected to be 5% to 5.5% 3 Adjusted gross margin expected to be 57.5% to 58% 4 Adjusted operating margin expected to be 26.1% to 26.5% 5 Adjusted earnings per share expe
Slide 137: Future Shareholder Value Creation: 2019 – 2021
Future Shareholder Value Creation: 2019 – 2021 1 Accelerated and Sustained Organic Revenue Growth 2 Margin Expansion from Multiple Drivers 3 Efficient Capital Deployment 137
Slide 138: Financial Objectives 2019 - 2021
Financial Objectives 2019 - 2021 1 Average organic constant currency revenue growth of between 6% and 7% from 2019 through 2021 2 Adjusted gross margin of between 60% and 61% by 2021 3 Adjusted operating margin of between 30% and 31% by 2021 Average adjusted tax rate of between 16% and 17.5% from 20
Slide 139: Organic Constant Currency Revenue Growth and Assumptions
Organic Constant Currency Revenue Growth and Assumptions 2015 – 2017 1 2018 2019 – 2021 ~4% 5% - 5.5% 6% - 7% 2019 – 2021 growth assumes base business contribution of 4% coupled with NeoTract and Vascular Solutions adding between 2% to 3% 1 Approximate average of annual organic constant currency rev
Slide 140: Margin Expansion Objectives: Adjusted Gross Margin
Margin Expansion Objectives Adjusted Gross Margin Drivers of Expansion +200 to +350 bps • Higher margin product mix from recent +170 to scale acquisitions +220 bps 60% - 61% • Benefits from 2014 through 2017 57.5% - 58.0% restructuring initiatives • Previously completed +170 bps [VALUE] distributor
Slide 141: Margin Expansion Objectives: Adjusted Operating Margin
Margin Expansion Objectives Adjusted Operating Margin Drivers of Expansion +350 to +490 bps • Adjusted gross margin 30% - 31% improvement expected to contribute between 200 bps +100 to +140 bps and 350 bps 26.1%- • Improved operating leverage 26.5% from NeoTract and Vascular +100 bps Solutions acqui
Slide 142: Restructuring Plans and OEM Initiative Expected to Drive Incremental Savings
Restructuring Plans and OEM Initiative Expected to Drive Incremental Savings Dollars in Millions 2014 – 2017 2018 – 2024 Total Total pre-tax savings $45 $62 to $82 $107 to $127 - 2014 to 2017 Restructuring $45 $31 to $45 $76 to $90 - 2018 Restructuring -- $25 to $30 $25 to $30 - OEM Initiative -- $6
Slide 143: Adjusted Tax Rate Objectives
Adjusted Tax Rate Objectives Adjusted Tax Rate Rate Considerations Business Strategy 16% - 17.5% • Higher percentage of US revenues and profits from NeoTract and Vascular Solutions acquisitions drives tax rate higher 15%-16% [VALUE]% Interest • Lessening impact of interest deductions 2017 2018E 2019
Slide 144: Free Cash Flow Objectives and Capital Allocation Priorities
Free Cash Flow Objectives and Capital Allocation Priorities Free cash flow expected to average $500 - $550 million over the 2019 – 2021 time period Free Cash Flow Capital Allocation Priorities $500M - $550M • Footprint consolidation and other productivity investments • $0.34 per share quarterly divi
Slide 145: Liam Kelly
145 Liam Kelly President and Chief Executive Officer 145
Slide 146: Teleflex 2021: 3 Year Growth Drivers
Teleflex 2021: 3 Year Growth Drivers High growth company with gross and operating margin expansion Execute Leverage strategic global M&A Drive infrastructure Medium Continued utilization Invest in cadence of growth growth key disease of new products company states and product markets launches with g
Slide 147: Question and Answer Session
147 Question and Answer Session 147
Slide 148: Thank You
148 Veleflex:
Slide 149: Appendices
Appendices 149 Veleflex:
Slide 150: Note on Non-GAAP Financial Measures
Note on Non-GAAP Financial Measures The presentation to which these appendices are attached include references to the following non-GAAP financial measures: • Constant currency revenue growth. This measure excludes the impact of translating the results of international subsidiaries at different curr
Slide 151: Note on Non-GAAP Financial Measures (cont'd)
Note on Non-GAAP Financial Measures (cont’d) Tables reconciling historic and forecasted 2018 constant currency revenue growth, organic constant currency revenue growth, adjusted earnings per share, adjusted gross and operating margins, adjusted tax rate and free cash flow to the most directly compar
Slide 152: Appendix A – Reconciliation of Constant Currency and Organic Constant Currency Revenue Growth
Appendix A – Reconciliation of Constant Currency and Organic Constant Currency Revenue Growth Dollars in Millions Twelve Months Ended Revenue Twelve Months Ended Growth 2014 2015 2016 2017 2014 2015 2016 2017 Prior Year Ended Dec 31 Revenue As Reported $ 1,696.3 $ 1,839.8 $ 1,809.7 $ 1,868.0 Foreign
Slide 153: Appendix B – Reconciliation of 2017 Constant Currency Revenue Growth
Appendix B – Reconciliation of 2017 Constant Currency Revenue Growth Dollars in Millions Twelve Months Ended % Increase / (Decrease) Total Currency Constant Currency December 31, 2017 December 31, 2016 Revenue Growth Impact Revenue Growth Vascular North America $ 313.6 $ 295.2 6.2% 0.1% 6.1% Interve
Slide 154: Appendix C – Reconciliation of Adjusted Gross Profit and Margin
Appendix C – Reconciliation of Adjusted Gross Profit and Margin Dollars in Thousands Twelve Months Ended December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Gross profit as-reported $ 942,428 $ 944,403 $ 996,200 $ 1,171,802 Gross margin as-reported 51.2% 52.2% 53.3% 54.6% Restruc
Slide 155: Appendix D – Reconciliation of Adjusted Operating Profit and Margin
Appendix D – Reconciliation of Adjusted Operating Profit and Margin Dollars in Thousands Tw elve Months Ended Decem ber 31, 2014 Decem ber 31, 2015 Decem ber 31, 2016 Decem ber 31, 2017 Incom e from continuing operations before interest, loss on extinguishm ent of debt and taxes $ 284,862 $ 315,891
Slide 156: Appendix E – Reconciliation of Adjusted Tax Rate
Appendix E – Reconciliation of Adjusted Tax Rate Dollars in Thousands Tw elve Months Ended Decem ber 31, 2014 Decem ber 31, 2015 Decem ber 31, 2016 Decem ber 31, 2017 Incom e from Taxes on Incom e from Taxes on Incom e from Taxes on Incom e from Taxes on continuing incom e from continuing incom e fr
Slide 157: Appendix F – Reconciliation of Adjusted Earning per Share
Appendix F – Reconciliation of Adjusted Earning per Share Twelve Months Ended December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 CAGR GAAP diluted earnings per share available to common shareholders $ 4.10 $ 4.91 $ 4.98 $ 3.33 (6.7%) GAAP year-over-year growth 19.8% 1.4% -33.1%
Slide 158: Appendix G – Adjusted EPS from Continuing Operations 2014
Appendix G – Adjusted EPS from Continuing Operations Year Ended December 31, 2014 Dollars in Millions, Except per Share Data Selling, general Restructuring Net incom e (loss) Diluted earnings Shares used in Cost of Research and (Gain) loss on Loss on and and Interest Incom e attributable to com m on
Slide 159: Appendix H – Adjusted EPS from Continuing Operations 2015
Appendix H – Adjusted EPS from Continuing Operations Year Ended December 31, 2015 Dollars in Millions, Except per Share Data Selling, general Restructuring Net incom e (loss) Diluted earnings Shares used in Cost of Research and (Gain) loss on Loss on and and Interest Incom e attributable to com m on
Slide 160: Appendix I – Adjusted EPS from Continuing Operations 2016
Appendix I – Adjusted EPS from Continuing Operations Year Ended December 31, 2016 Dollars in Millions, Except per Share Data Selling, general Restructuring Net incom e (loss) Diluted earnings Shares used in Cost of Research and (Gain) loss on Loss on and and Interest Incom e attributable to com m on
Slide 161: Appendix J – Adjusted EPS from Continuing Operations 2017
Appendix J – Adjusted EPS from Continuing Operations Year Ended December 31, 2017 Dollars in Millions, Except per Share Data Selling, general Restructuring Net incom e (loss) Diluted earnings Shares used in Cost of Research and (Gain) loss on Loss on and and Interest Incom e attributable to com m on
Slide 162: Appendices F,G,H,I and J Tickmarks
Appendices F,G,H,I and J Tickmarks (A) Restructuring, restructuring related and impairment items - Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, impro
Slide 163: Appendix K – Reconciliation of Free Cash Flow
Appendix K – Reconciliation of Free Cash Flow Dollars in Thousands Twelve Months Ended December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Net cash provided by operating activities from continuing operations $ 290,241 $ 303,446 $ 410,590 $ 426,301 Less: Capital expenditures 67,57
Slide 164: Appendix L – Reconciliation of 2015 Analyst Day Free Cash Flow Estimate
Appendix L – Reconciliation of 2015 Analyst Day Free Cash Flow Estimate Dollars in Millions 2018 Estimate Low High Forecasted net cash provided by operating activities from continuing operations $ 400 $ 430 Less: Forecasted capital expenditures 75 80 Forecasted Free Cash Flow $ 325 $ 350 164
Slide 165: Appendix M – Reconciliation of 2018 Constant Currency Revenue Growth Guidance
Appendix M – Reconciliation of 2018 Constant Currency Revenue Growth Guidance Low High Forecasted GAAP Revenue Grow th 15.0% 16.0% Estimated Impact of Foreign Currency Exchange Rate Fluctuations -3.0% -3.0% Forecasted Constant Currency Revenue Grow th 12.0% 13.0% 165
Slide 166: Appendix N – Reconciliation of 2018 Organic Constant Currency Revenue Growth Guidance
Appendix N – Reconciliation of 2018 Constant Currency Revenue Growth and Organic Constant Currency Revenue Growth Guidance 2018 Guidance Low High GAAP Revenue Growth 15.0% 16.0% Impact of Foreign Currency Exchange Rate Fluctuations 3.0% 3.0% Constant Currency Revenue Growth 12.0% 13.0% M&A 7.0% 7.5%
Slide 167: Appendix O – Reconciliation of 2018 Adjusted Gross Margin Guidance
Appendix O – Reconciliation of 2018 Adjusted Gross Margin Guidance Low High Forecasted GAAP Gross Margin 56.85% 57.50% Restructuring, restructuring related and impairment items (A) 0.60% 0.55% Acquisition, integration and divestiture related items (B) 0.05% 0.00% Other Items (C) 0.00% -0.05% Forecas
Slide 168: Appendix P – Reconciliation of 2018 Adjusted Operating Margin Guidance
Appendix P – Reconciliation of 2018 Adjusted Operating Margin Guidance Low High Forecasted GAAP Operating Margin 16.40% 17.00% Estimated restructuring, restructuring related and impairment items (A) 3.15% 3.10% Estimated acquisition, integration and divestiture related items (B) 0.60% 0.55% Estimate
Slide 169: Appendix Q – Reconciliation of 2018 Estimated Adjusted Tax Rate
Appendix Q – Reconciliation of 2018 Estimated Adjusted Tax Rate Low High Forecasted GAAP Tax Rate 14% 15% Non-GAAP Adjustments (A) 1% 1% Forecasted Adjusted Tax Rate 15% 16% (A) Non-GAAP adjustments include discrete items that occur sporadically and can affect period-to-period comparisons, as well a
Slide 170: Appendix R – Reconciliation of 2018 Adjusted Earnings per Share Guidance
Appendix R – Reconciliation of 2018 Adjusted Earnings per Share Guidance Low High Forecasted diluted earnings per share attributable to common shareholders $5.45 $5.55 Restructuring, restructuring related and impairment items, net of tax (A) $1.51 $1.55 Acquisition, integration and divestiture items
Slide 171: Appendix S – Reconciliation of 2018 Estimated Free Cash Flow
Appendix S – Reconciliation of 2018 Estimated Free Cash Flow Dollars in Millions Forecasted net cash provided by operating activities from continuing operations $ 465 Less: Forecasted capital expenditures $ 90 Forecasted Free Cash Flow $ 375 171
Slide 172: Appendix T – Restructuring Plan Summary
Appendix T – Restructuring Plan Summary In addition to the 2018 Manufacturing Footprint Realignment Plan, we have ongoing restructuring programs related to (i) the integration of Vascular Solutions into Teleflex; (ii) the centralization of certain administrative functions in our EMEA segment; (iii)
Slide 173: Appendix U – 2018 Restructuring Plan Summary
Appendix U – 2018 Restructuring Plan Summary On May 1, 2018, we initiated a restructuring plan involving the relocation of certain manufacturing operations to an existing lower-cost location, the outsourcing of certain distribution operations and related workforce reductions. These actions are expec
Slide 174: Appendix V – Reconciliation of 2019 to 2021 Estimated Average Free Cash Flow
Appendix V – Reconciliation of 2019 to 2021 Estimated Average Free Cash Flow Dollars in Millions 2019 to 2021 Average Low High Forecasted net cash provided by operating activities from continuing operations $ 590 $ 620 Less: Forecasted capital expenditures $ 90 $ 70 Forecasted Free Cash Flow $ 500 $