Slide 1: Teleflex Incorporated Fourth Quarter 2015 Earnings Conference Call
1 Teleflex Incorporated Fourth Quarter 2015 Earnings Conference Call Exhibit 99.2
Slide 2: Conference Call Logistics
2 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 70373672
Slide 3: Introductions
3 Introductions Benson Smith Chairman, President and CEO Liam Kelly Executive Vice President and COO Thomas Powell Executive Vice President and CFO Jake Elguicze Treasurer and Vice President of Investor Relations
Slide 4: Note on Forward-Looking Statements
4 Note on Forward-Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, our expectations that actions related to our announced restructuring plan to further improve our cost structure (the “Plan”) will be substantial
Slide 5: Executive Summary
5 Executive Summary Fourth quarter 2015 revenue of $484.5 million • Up 1.8% vs. prior year period on an as-reported basis • Up 7.4% vs. prior year period on a constant currency basis Fourth quarter 2015 adjusted EPS of $2.01, up 40.6% vs. prior year period • Adjusted earnings per share reflects unfa
Slide 6: Executive Summary: New Restructuring Plan
6 Executive Summary New Restructuring Plan to Further Improve Company Cost Structure Announced • Plan developed in response to continuing cost pressures in the healthcare industry and designed to improve operating efficiencies and enhance the Company’s long-term competitive position • Involves the c
Slide 7: Executive Summary: FY 2011 vs FY 2015
7 Executive Summary Metric FY 2011 FY 2015 Revenue (dollars in billions) $1.49 $1.81 Adjusted Gross Margin 47.6% 52.7% Adjusted Tax Rate 26.3% 16.8% Adjusted EPS $3.83 $6.33 Market Capitalization (dollars in billions) ~$2.5 ~$5.5
Slide 8: Fourth Quarter Highlights
8 Fourth Quarter Highlights Fourth quarter 2015 constant currency revenue growth of 7.4% • Sales volume of existing products contribute 4.9% of constant currency growth • Acquisitions and distributor conversions contribute 1.4% of constant currency revenue growth • Sales volume of new products contr
Slide 9: Segment Revenue Review
9 Segment Revenue Review Q4’15 Q4’14 Constant Currency Revenue Commentary Vascular N.A.: $90.3 million, up 10.3% Anesthesia N.A.: $50.6 million, up 6.8% Surgical N.A.: $43.1 million, up 6.9% EMEA: $135.2 million, up 3.6% Asia: $69.2 million, up 18.0% OEM: $37.8 million, up 10.3% All Other: $58.3 mil
Slide 10: Group Purchasing Organization and IDN Review
10 Group Purchasing Organization and IDN Review Track record of expansion of contractual agreements continues in Q4’15 Group Purchasing Organization Update • 5 new agreements • 5 renewed agreements • 2 existing agreements not renewed IDN Update • 8 new agreements • 4 renewed agreements
Slide 11: Product Introductions and Regulatory Approvals
11 Product Introductions and Regulatory Approvals Arrow® VPS® Stylet PRODUCT DESCRIPTION Recently received FDA 510(k) clearance to market a newly designed Arrow® VPS® Stylet The new design allows Teleflex to provide hospitals with a complete offering of single, double and triple lumen pre-loaded, pr
Slide 12: Acquisition Update
12 Acquisition Update Acquired Nostix, LLC • Founded in 2001, Nostix has developed affordable, differentiated tip placement confirmation products, with additional navigation products under development • All-cash transaction completed in December 2015 • Complements current VasaNova vascular positioni
Slide 13: Fourth Quarter Financial Review
13 Fourth Quarter Financial Review Revenue of $484.5 million • Up 1.8% vs. prior year period on an as-reported basis • Up 7.4% vs. prior year period on a constant currency basis Adjusted gross margin of 54.1%, up 300bps vs. prior year period Adjusted operating margin of 23.7%, up 530 bps vs. prior y
Slide 14: 2016 Financial Outlook Assumptions: Revenue Growth
14 2016 Financial Outlook Assumptions 2016 constant currency revenue guidance assumes volume growth consistent with 2015 levels and an acceleration of new product revenues Volume 2.70% 3.00% New Product Introductions 2.00% 2.50% Previously completed M&A 0.20% 0.30% Price 0.10% 0.20% Forecasted 2016
Slide 15: 2016 Financial Outlook Assumptions: Gross Margin Drivers
15 2016 Financial Outlook Assumptions 51.5% 52.7% 54.0% to 55.0% 45% 50% 55% 2014 2015 2016 +120 bps +130 bps to +230 bps 2016 Adjusted Gross Margin Drivers Operational efficiencies expected to drive approximately 60% of anticipated 2016 adjusted gross margin gains: • Cost improvement programs (i.e.
Slide 16: 2016 Adjusted Operating Margin Drivers
16 2016 Financial Outlook Assumptions 2016 Adjusted Operating Margin Drivers Improved financial leverage generated during 2015 expected to continue in 2016 Expected adjusted gross margin improvements of between 130 and 230 basis points Operating expense productivity initiatives identified so that ga
Slide 17: 2016 Adjusted EPS Outlook
17 2016 Financial Outlook Assumptions Portfolio capable of generating consistent revenue growth, and benefits of base business operational leverage, expected to lead to 2016 adjusted EPS growth of 10.6% to 13.0% Note: see Appendices for tables reconciling actual and forecasted adjusted earnings per
Slide 18: Any Questions?
18 Any Questions?
Slide 19: Thank You
19 Thank You
Slide 20: Appendices
20 Appendices
Slide 21: Non-GAAP Financial Measures
21 Non-GAAP Financial Measures The following appendices include, among other things, tables reconciling the following non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. This measure excludes the impact of translating the results of internat
Slide 22: Appendix A: Constant Currency Revenue Growth
22 APPENDIX A – RECONCILIATION OF CONSTANT CURRENCY REVENUE GROWTH DOLLARS IN MILLIONS December 31, 2015 December 31, 2014 Constant Currency Currency Total Vascular North America 90.3$ 82.3$ 10.3% (0.7%) 9.6% Anesthesia North America 50.6 47.7 6.8 (0.7 ) 6.1 Surgical North America 43.1 40.8 6.9% (1.
Slide 23: Appendix B: Constant Currency Revenue Growth
23 APPENDIX B – RECONCILIATION OF CONSTANT CURRENCY REVENUE GROWTH DOLLARS IN MILLIONS December 31, 2015 December 31, 2014 Constant Currency Currency Total Vascular North America 334.9$ 311.1$ 8.3% (0.6%) 7.7% Anesthesia North America 189.2 183.9 3.5 (0.6 ) 2.9 Surgical North America 161.3 150.1 8.7
Slide 24: Appendix C: Revenue Growth
24 APPENDIX C – RECONCILIATION OF REVENUE GROWTH DOLLARS IN MILLIONS 1: amount is comprised of incremental price on existing products and the sale of new products of $1.4 million and $5.3 million, respectively, both of which are a result of the businesses acquired and distributor to direct conversio
Slide 25: Appendix D: Adjusted Gross Profit and Margin
25 APPENDIX D – RECONCILIATION OF ADJUSTED GROSS PROFIT AND MARGIN DOLLARS IN THOUSANDS December 31, 2015 December 31, 2014 Teleflex gross profit as-reported 260,316$ 241,015$ Teleflex gross margin as-reported 53.7% 50.6% Losses and other charges, net (A) 1,895 2,109 Adjusted Teleflex gross profit 2
Slide 26: Appendix E: Adjusted Gross Profit and Margin
26 APPENDIX E – RECONCILIATION OF ADJUSTED GROSS PROFIT AND MARGIN DOLLARS IN THOUSANDS December 31, 2015 December 31, 2014 Teleflex gross profit as-reported 944,403$ 942,428$ Teleflex gross margin as-reported 52.2% 51.2% Losses and other charges, net (A) 9,449 4,886 Adjusted Teleflex gross profit 9
Slide 27: Appendix F: Adjusted Operating Profit and Margin
27 APPENDIX F – RECONCILIATION OF ADJUSTED OPERATING PROFIT AND MARGIN DOLLARS IN THOUSANDS (A) In 2015 losses and other charges, net related primarily to facility consolidations and reflect reversals of previously recorded charges. In 2014, losses and other charges, net related primarily to facilit
Slide 28: Appendix G: Adjusted Operating Profit and Margin
28 APPENDIX G – RECONCILIATION OF ADJUSTED OPERATING PROFIT AND MARGIN DOLLARS IN THOUSANDS (A) In 2015 losses and other charges, net related primarily to facility consolidations and reflect reversals of previously recorded charges. In 2014, losses and other charges, net related primarily to facilit
Slide 29: Appendix H: Adjusted EPS, Q4 2015
29 APPENDIX H – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – DECEMBER 31, 2015 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interest
Slide 30: Appendix I: Adjusted EPS, Q4 2014
30 APPENDIX I – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS QUARTER ENDED – DECEMBER 31, 2014 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interest
Slide 31: Appendix J: Adjusted EPS, Year 2015
31 APPENDIX J – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS YEAR ENDED – DECEMBER 31, 2015 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges (Gain) loss
Slide 32: Appendix K: Adjusted EPS, Year 2014
32 APPENDIX K – RECONCILIATION OF ADJUSTED EPS FROM CONTINUING OPERATIONS YEAR ENDED – DECEMBER 31, 2014 DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interest ex
Slide 33: Appendix L: Adjusted Tax Rate
33 APPENDIX L – RECONCILIATION OF ADJUSTED TAX RATE DOLLARS IN THOUSANDS Three Months Ended December 31, 2015 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $83,188 ($7,577) -9.1% Restructuring and impairment charges 2,131 797 Losses and
Slide 34: Appendix M: Adjusted Tax Rate
34 APPENDIX M – RECONCILIATION OF ADJUSTED TAX RATE DOLLARS IN THOUSANDS Year Ended December 31, 2015 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $244,646 $7,838 3.2% Restructuring and impairment charges 7,819 2,871 Losses and other c
Slide 35: Appendix N: 2016 Constant Currency Revenue Growth Guidance
35 APPENDIX N – RECONCILIATION OF 2016 CONSTANT CURRENCY REVENUE GROWTH GUIDANCE Low High Forecasted GAAP Revenue Growth 3.0% 4.0% Estimated Impact of Foreign Currency Fluctuations 2.0% 2.0% Forecasted Constant Currency Revenue Growth 5.0% 6.0%
Slide 36: Appendix O: 2016 Adjusted Gross Margin Guidance
36 APPENDIX O – RECONCILIATION OF 2016 ADJUSTED GROSS MARGIN GUIDANCE Note: In 2016, estimated losses and other charges, net relate primarily to facility consolidation expenses. Low High Forecasted GAAP Gross Margin 53.1% 54.0% Estimated losses and other charges, net 0.9% 1.0% Forecasted Adjusted Gr
Slide 37: Appendix P: 2016 Adjusted Operating Margin Guidance
37 APPENDIX P – RECONCILIATION OF 2016 ADJUSTED OPERATING MARGIN GUIDANCE Note: In 2016, estimated losses and other charges, net relate primarily to facility consolidation expenses. Low High Forecasted GAAP Operating Margin 19.3% 19.6% Estimated losses and other charges, net 1.0% 1.1% Estimated inta
Slide 38: Appendix Q: 2016 Adjusted EPS Guidance
38 APPENDIX Q – RECONCILIATION OF 2016 ADJUSTED EARNINGS PER SHARE GUIDANCE Low High Forecasted diluted earnings per share attributable to common shareholders $4.92 $4.99 Restructuring, impairment charges and special items, net of tax $1.00 $1.05 Intangible amortization expense, net of tax $0.90 $0.
Slide 39: Appendix R: 2016 Restructuring Plan
39 APPENDIX R – 2016 RESTRUCTURING PLAN Aggregate pre-tax charges of approximately $34 to $44 million1 , of which approximately $27 to $31 million will result in future cash outlays • 2016 pre-tax charges of approximately $21 to $23 million1 , of which approximately $6 to $8 million will result in c
Slide 40: Appendix S: 2016 Financial Outlook Assumptions
40 Euro to U.S. Dollar exchange rate assumed to be ~1.06 for full year 2016 Adjusted weighted average shares expected to be approximately 45.5 million for full year 2016 Calendar of shipping days: • 2 fewer shipping days in Q1’16 vs. Q1’15 • 1 additional shipping day in Q2’16 vs. Q2’15 • 1 additiona
Slide 41: Appendix T: 2011 Adjusted Gross Margin
41 APPENDIX T – RECONCILIATION OF 2011 ADJUSTED GROSS MARGIN DOLLARS IN THOUSANDS Year Ended December 31, 2011 Teleflex gross profit as-reported 708,778$ Teleflex gross margin as-reported 47.5% SKU rationalization 1,972 Adjusted Teleflex gross profit 710,750$ Adjusted Teleflex gross margin 47.6% Tel
Slide 42: Appendix U: 2011 Adjusted Tax Rate
42 APPENDIX U – RECONCILIATION OF 2011 ADJUSTED TAX RATE DOLLARS IN THOUSANDS Year Ended December 31, 2011 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $145,100 $25,778 17.8% Restructuring and impairment charges 3,681 1,377 Early termi
Slide 43: Appendix V: 2011 Adjusted Earnings Per Share
43 APPENDIX V – RECONCILIATION OF 2011 ADJUSTED EARNINGS PER SHARE DOLLARS IN THOUSANDS M aterials, labo r and o ther pro duct co sts Selling, general and administrat ive expenses Go o dwill impairment R estructuring and o ther impairment charges Gain/ ( lo ss) o n sales o f businesses and assets In