Avanos Medical, Inc. · NYSE:AVNS
Avanos Medical — Investor Presentation (January 2023)
11 slides from Avanos Medical's investor presentation, Jan 11, 2023
Slide 1: Update & Transformation Discussion
1 UPDATE & TRANSFORMATION DISCUSSION JOE WOODY CHIEF EXECUTIVE OFFICER JANUARY 11, 2023
Slide 2: Forward-Looking Information; Non-GAAP Financial Measures
2 FORWARD-LOOKING INFORMATION NON-GAAP FINANCIAL MEASURES Certain matters in this presentation, including expectations and planning assumptions, any comments about our expected performance, and any estimates, projections, or statements relating to our business plans, objectives, acquisitions and tra
Slide 3: Who We Are
3 WHO WE ARE $815M+ Global Revenue* Pain Management Chronic Care Diversified portfolio with 8 market-leading products in the U.S. International Business operations in 90+ countries U.S. ~$10B Addressable Market *Est. 2022 figure Our Vision: To be the best at getting patients back to the things that
Slide 4: Chronic Care: A Vital Lifeline from Hospital to Home
4 CHRONIC CARE A VITAL LIFELINE FROM HOSPITAL TO HOME MIC-KEY* Long-term feeding market share leader with low- profile balloon-retained gastrostomy feeding tubes. CORTRAK* Short-term feeding leader delivering guided nasal gastric feeding tube placement. BALLARD* Leader in closed suction catheter tec
Slide 5: Pain Management: Getting Back to Life
5 Market-leading provider of cold and compression therapy systems. Portfolio of non-opioid post- surgical pain relief infusion pumps and accessories. Cooled and standard radiofrequency nerve ablation for thermal treatment of chronic pain. ambIT* Electronic ambulatory infusion pumps for various infus
Slide 6: 2022 in Review... Setting Up Transformation
✓ Capital deployment via M&A and $55M share repurchases ✓ Successful OrthogenRx integration; ahead of plan ✓ Organization transformation underway STRATEGIC ✓ Meaningful gross and EBITDA margin improvement ✓ Effective OpEx management; below 40% SG&A as % of revenue ✓ Delivered strong free cash flow ✓
Slide 7: Transformation Priorities: 2023-2025
7 STRATEGIC AND COMMERCIAL OPTIMIZATION TRANSFORM THE PRODUCT PORTFOLIO TRANSFORMATION PRIORITIES: 2023 - 2025 DELIVERING VALUE TO ALL STAKEHOLDERS CONTINUED EFFICIENT CAPITAL ALLOCATION STRATEGIES TO EXPAND RETURN ON INVESTED CAPITAL ADDITIONAL COST MANAGEMENT INITIATIVES TO ENHANCE OPERATING PROFI
Slide 8: Transformation Priorities: Strategic and Commercial Optimization
8 STRATEGIC AND COMMERCIAL OPTIMIZATION TRANSFORM THE PRODUCT PORTFOLIO TRANSFORMATION PRIORITIES: 2023 - 2025 ✓ Portfolio focus by increasing investments in Digestive Health (MIC-KEY, CORTRAK and NeoMed) and Orthopedic Pain and Recovery (Game Ready, COOLIEF, AmBit and OrthogenRx) product categories
Slide 9: Transformation Priorities: Capital Allocation and Cost Management
9 CONTINUED EFFICIENT CAPITAL ALLOCATION STRATEGIES TO EXPAND RETURN ON INVESTED CAPITAL ADDITIONAL COST MANAGEMENT INITIATIVES TO ENHANCE OPERATING PROFITABILITY ✓ Direct internal capital allocation toward focus categories ✓ Maintain M&A discipline and leverage levels below 3.0x (current <1.0x) ✓ C
Slide 10: Transformed Business Profile: 2025
10 TRANSFORMED BUSINESS PROFILE: 2025 Enhanced Financial Profile Gross Margins >60% Operating Margins in high teens EBITDA Margins in low-mid 20% FCF >$100mm Focused M&A to provide additional growth Optimized Product Portfolio Upcoming Communications ▪ February 21st: Q4 Earnings Call ▪ Early Summer:
Slide 11: The best at getting patients back to the things that matter
11 The best at getting patients back to the things that matter
Avanos Medical — Investor Presentation (January 2023) on 6ix