Steris Plc (ireland) · NYSE:STE
Steris Plc (ireland) — STERIS — UBS Global Life Sciences Conference 2004
31 slides from Steris Plc (ireland)'s conference presentation, Sep 28, 2004
Slide 1: UBS Global Life Sciences Conference
UBS Global Life Sciences Conference September 28, 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical information discussed, today’s presentation includes forward-looking statements that involve risks and uncertainties. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. Some of th
Slide 3: Agenda
Agenda Business Overview Investment Considerations Strategic Direction Recent Results
Slide 4: Business Overview
Business Overview
Slide 5: The STERIS Path to Growth
The STERIS Path to Growth INITIAL GROWTH ACQUISITIONS REORGANIZATION STERIS Today Leader in Technologies to Control Infection and Contamination Positioned For Growth STERIS 2000 STERIS 1995 1987 Start up
Slide 6: Sales by Business Segment
Sales by Business Segment Fiscal Year Ended March 31, 2004 (Dollars in millions) HEALTHCARE ($753) LIFE SCIENCES ($246) STERIS ISOMEDIX SERVICES ($88) 69% 23% 8%
Slide 7: Key Industries Served
Key Industries Served HEALTHCARE Surgical Support Sterile Processing Applied Infection Control LIFE SCIENCES Pharmaceutical Production Research Defense and Industrial STERIS ISOMEDIX SERVICES (CONTRACT STERILIZATION)
Slide 8: Investment Considerations
Investment Considerations
Slide 9: Investment Considerations
Investment Considerations A technology leader Diversified and recurring revenue stream Strong competitive positions Strong financial and operating platform Improving market dynamics
Slide 10: A Technology Leader
A Technology Leader Broad based technologies… Surface Cleaning Chemistries Washing Systems Skin Care VHP ® Sterilization Steam Sterilization EtO Sterilization Peracetic Acid Sterilization Gamma Delivered through capital equipment chemistries and services… Make STERIS a leader
Slide 11: Diversified and Recurring Revenue Stream
Diversified and Recurring Revenue Stream Capital equipment drives… Consumables… and Services… 51% of fiscal 2004 revenues were higher margin, recurring consumables and services STERIS has the unique ability to offer a custom solution for a variety of customers, industries and geographies
Slide 12: Strong Competitive Positions
Strong Competitive Positions Leading supplier of sterilization and surgical support products to U.S. healthcare facilities Leading position in contract sterilization for medical technology manufacturers and other industries Leading supplier of equipment and chemistries to biopharmaceutical companies
Slide 13: Strong Financial and Operating Platform
Strong Financial and Operating Platform Consistent earnings growth Low level of debt Strong cash flow Efficient operations
Slide 14: Improving Market Dynamics
Improving Market Dynamics Aging population is driving demand for healthcare services and pharmaceuticals Increased spending by hospitals is leading to expansion and upgrading of facilities Ongoing investment in drug production is driving manufacturing capacity and research facilities Global awarenes
Slide 15: Strategic Direction
Strategic Direction
Slide 16: Sources of Growth
Sources of Growth Earnings Power EXTERNAL Improving market dynamics INTERNAL Strategic Actions to Drive Growth and Financials
Slide 17: Our Growth Strategy
Our Growth Strategy Diversify revenue stream by product, service, market and geography Increase recurring revenues Leverage our channel Introduce new technologies Adapt our technologies Expand internationally
Slide 18: Increase Recurring Revenues
Increase Recurring Revenues Large revenue opportunity in our own installed base Capture consumable opportunity Aggressively grow service New capital equipment products will have an associated proprietary consumable Greater penetration of chemistries in Life Sciences
Slide 19: Leverage Our Channel in Healthcare
Leverage Our Channel in Healthcare Presence in every U.S. hospital Sales force of 250 people Service force of 1,000 New products, alliances, acquisitions
Slide 20: Introduce New Technologies
Introduce New Technologies R&D spending to approximate $35 million in fiscal 2005, an increase of over 20% Focused new product development effort Areas of focus include projects for new industries and new sterilization technologies VHP® technology advancement into new product uses Prion Decontaminat
Slide 21: New Product - Reliance EPS
New Product - Reliance® EPS Submitted to FDA for 510k Approval Available for sale in Europe and Canada STERIS’s first high level disinfection system for flexible endoscopes in GI Suite Can process two instruments simultaneously Addresses key market needs in GI suite Guaranteed consumable revenue str
Slide 22: Adapt Our Technologies
Adapt Our Technologies CURRENT Exploring new applications related to Anthrax contamination Joint research on defense applications for biological and chemical warfare Joint research in space applications FUTURE POSSIBILITIES Transportation Hotel and building decontamination Food and beverage packagin
Slide 23: Adapt Our Technologies – Key Application
Adapt Our Technologies – Key Application Decontamination of State Department building SA32 mail processing facility. Used STERIS proprietary technology, equipment and expertise First validated process for treating anthrax contaminated buildings
Slide 24: International Expansion Opportunities
International Expansion Opportunities REVENUE MIX BY GEOGRAPHY Fiscal Year 2004 United States 77% International 23% Market size is equivalent to U.S. Narrowed focus on key European countries and Japan Acquisitions to play strategic role Leading-edge technologies
Slide 25: Acquisition of Albert Browne, U.K.
Acquisition of Albert Browne, U.K. European market leader in chemical indicators 2003 revenues approximately $16 million $51.6 million acquisition price financed with existing cash Fits consumable and international strategy High margin consumable business International channel Superior technology Ex
Slide 26: Recent Results
Recent Results
Slide 27: Net Quarterly Revenues
Net Quarterly Revenues (dollars in millions) $300 $250 $200 $150 $100 $50 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY2001 FY2002 FY2003 FY2004 FY2005
Slide 28: Quarterly Diluted Earnings Per Share
Quarterly Diluted Earnings Per Share $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY2001 FY2002 FY2003 FY2004 FY2005 * A charge in the fourth quarter of fiscal 2001 resulted in a loss of $0.24 per share
Slide 29: Strong Cash Flow
Strong Cash Flow Cash From Operations and Capital Spending (In millions) $102.3 $51.0 $142.0 $65.7 $133.3 $58.6 $123.3 $67.6 FY 2001 FY 2002 FY 2003 FY 2004 Cash from Operations Capital Spending Cash Priorities: Fund growth through acquisitions Modest share buy backs to offset dilutive impact of opt
Slide 30: Second Quarter Earnings Outlook Revised
Second Quarter Earnings Outlook Revised Today announced revised earnings outlook for fiscal 2005 2nd quarter based upon a review of business trends and results: 5-6% overall revenue growth expected Earnings expected to be in the range of $0.27 to $0.28 per diluted share Key Notes: Lower than anticip
Slide 31: Summary
Summary A technology leader with strong competitive positions Diversified and recurring revenue stream Improving market dynamics Financial flexibility Bright future