Avanos Medical, Inc. · NYSE:AVNS
Avanos Medical — Investor Day (June 2023)
80 slides from Avanos Medical's investor day presentation, Jun 20, 2023
Slide 1: Avanos Investor Day
AVANOS Investor Day June 20, 2023
Slide 2: Welcome & Opening Remarks
Welcome & Opening Remarks Joe Woody Chief Executive Officer
Slide 3: Forward-looking statements
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 transformation initiatives, constitute “forward-looking state
Slide 4: Today's Agenda & Speakers
Today’s Agenda & Speakers 4 Welcome & Opening Remarks Commercial Optimization Innovation Supply Chain Effectiveness Financial Transformation Closing Remarks Q&A Innovation Showcase 1 CEO Joe Woody SVP, Global R&D Lee Burnes SVP, Global Supply Chain & Procurement Sudhakar Varshney SVP, CFO & Chief Tr
Slide 5: Where We Were
Where We Were Two franchises: Chronic Care & Pain Management ~$800M Global Revenue Pain Management Chronic Care ~$10B Addressable Market International Global Business Operations U.S. GETTING PATIENTS BACK TO THE THINGS THAT MATTER 5
Slide 6: Where We're Going
Where We’re Going October 2022: Board reviewed 2023 - 2025 Strategic Plan to Reimagine the Business • January 2023: Launched 3-year Transformation • June 2023: Announced divestiture of Respiratory Health business to SunMed • June 2023: Announced acquisition of Diros Technology 6 PORTFOLIO CHANGE TO
Slide 7: Avanos Portfolio Evolution
Avanos Portfolio Evolution Completed spin-off as Halyard Health 2014 2016 2017 2018 2019 2021 2023 Acquired CORPAK* MedSystems Acquired CoolSystems (Game Ready) Acquired NEOMED*,an enteral feeding channel expansion (NICU) Acquired Summit Medical (AMBIT*) Acquired OrthogenRx, a leader in HA technolog
Slide 8: M&A Investments Have Yielded Attractive Returns
M&A Investments Have Yielded Attractive Returns 8 •Deployed more than $400M for M&A since 2016 • Expected to comprise ~35% of Avanos 2023 revenue •Acquisitions delivered: ✓Organic growth >12%* ✓Operating margins ~15%* ✓Year 5 ROIC 31%* •Highly-disciplined approach • Robust, actionable pipeline of Di
Slide 9: Strategy Supporting Value Creation
Strategy Supporting Value Creation 9 Invest in and grow Digestive Health above market Execute on all transformation priorities MSD growth and profitability in Pain Management & Recovery Deploy capital in key international markets and M&A
Slide 10: Two Scaled Portfolios
Digestive Health $365M Pain Management & Recovery $310M $675M Total Net Sales Two Scaled Portfolios 10 Short-Term Feeding CORTRAK* 2 NEOMED* TRIVISC* & GENVISC* COOLIEF* Pre-Surgical ON-Q* AMBIT* Surgical GAME READY* Recovery MIC-KEY* Long-Term Feeding MARKET-LEADING BRANDS TRIDENT*
Slide 11: Transformation Priorities: 2023–2025
Transformation Priorities: 2023–2025 11 Strategic & Commercial Optimization 1 Transform the Product Portfolio 2 Additional Cost Management Initiatives to Enhance Operating Profitability 3 Continued Efficient Capital Allocation Strategies to Expand Return on Invested Capital 4 DELIVERING VALUE TO ALL
Slide 12: Transformation Priorities: Transform the Product Portfolio
Transformation Priorities: 2023–2025 Strategic & Commercial Optimization 1 Transform the Product Portfolio 2 12 Portfolio focus by increasing investments in product categories: • Digestive Health (MIC-KEY*, CORTRAK* and NEOMED*) • Pain Management & Recovery (GAME READY*, COOLIEF*, AMBIT*, ORTHOGENRX
Slide 13: Transformation Priorities: Cost Management and Capital Allocation
Transformation Priorities: 2023–2025 Additional Cost Management Initiatives to Enhance Operating Profitability Continued Efficient Capital Allocation Strategies to Expand Return on Invested Capital 13 • Reduce indirect spend • Pursue outsourcing opportunities as appropriate • Simplify supply chain/o
Slide 14: Avanos Investment Thesis
14 Avanos Investment Thesis Solid core categories with consistent organic growth Direct adjacencies to add growth and margin improvement Clearly defined set of transformation priorities already in motion Leverageable financial model to generate material free cash flow and high ROIC
Slide 15: Commercial Optimization
Commercial Optimization Kerr Holbrook Senior Vice President & Chief Commercial Officer
Slide 16: Transformation Priorities: 2023–2025
Transformation Priorities: 2023–2025 Strategic & Commercial Optimization 1 Transform the Product Portfolio 2 Additional Cost Management Initiatives to Enhance Operating Profitability 3 Continued Efficient Capital Allocation Strategies to Expand Return on Invested Capital 4 16 DELIVERING VALUE TO ALL
Slide 17: Two Scaled Portfolios
Digestive Health $365M Pain Management & Recovery $310M $675M Total Net Sales Two Scaled Portfolios 17 Short-Term Feeding CORTRAK* 2 NEOMED* TRIVISC* & GENVISC* COOLIEF* Pre-Surgical ON-Q* AMBIT* Surgical GAME READY* Recovery MIC-KEY* Long-Term Feeding MARKET-LEADING BRANDS TRIDENT*
Slide 18: Digestive Health Summary
Digestive Health (DH) Summary 18 • Leadership and consistent above-market growth in >$1B core market • MSD growth expected with existing portfolio and commercial execution • ~60% gross margin • Acceleration via innovation and M&A in $6B+ adjacencies
Slide 19: Providing Short- & Long-Term Enteral Feeding Solutions
Long-Term Feeding: Months to Life 19 Short-Term Feeding Long-Term FeedingGastrostomy Tube Placement & Replacement Initial Feeding Tube Placement Indicates current make-up of DH portfolio Short-Term Feeding: Less than 30 days Enteral Pump, Nutrition and Supplements are not part of the current DH Port
Slide 20: Enteral Feeding Global Served Markets
’23 – ’25 Enteral Feeding Global Served Markets Enteral Feeding Tubes (currently served) Pumps & Sets (not currently served) Enteral Nutrition & Supplements (not currently served) Leader in Core Enteral Tube Feeding Market With $6B Near-Adjacency Expansion Opportunity 20 2023 2025 Expansion Opportun
Slide 21: Consistent Above-Market Actual & Expected Growth
’20 – ’25 Actual & Projected CAGR Consistent Above-Market Actual & Expected Growth 21 Leverage #1 Market Position & Commercial Infrastructure • Harness US commercial resources • Adopt direct sales model in key international markets Drive New Product Innovation • Continue US ENFit® conversions • Laun
Slide 22: DH Holds Strong Market Position
DH Holds Strong Market Position with Opportunity to Expand Portfolio Breadth Competitor 1 Competitor 2 Portfolio Breadth • Short & Long-term feeding • Pumps, Sets and Supplements Commercial Strength • Sales Force Size/Focus • Marketing capabilities Brand Position • Brand recognition • Quality reputa
Slide 23: DH Commercial Potential
DH Commercial Potential Channel & Patient Engagement Create Advantage Hospital (Short-Term Feeding) • #1 market position in short-term feeding • ~100 dedicated sales reps • Corporate Accounts team • Medical society partnerships Home (Long-Term Feeding) • #1 market position in long-term feeding • Dur
Slide 24: Short-Term Feeding (CORTRAK* 2)
24 Short-Term Feeding (CORTRAK* 2) Convert ICUs from blind placement to CORTRAK* 2; HSD growth Current Situation • ~$300M global served market; ~6% CAGR • #1 share in US guided placement • ~80% US market not converted to guided placement • Dedicated CORTRAK* 2 sales team Growth Strategy • Continue c
Slide 25: Neonatal Short-Term Feeding (NEOMED*)
25 Neonatal Short-Term Feeding (NEOMED*) Convert NICU to ENFit® standard; DD growth Current Situation • $200M global served market; HSD CAGR • #1 share in US market • 35–40% US market not converted • Dedicated NICU sales team Growth Strategy Growth Strategy • Continue conversion to ENFit® • Launch n
Slide 26: Long-Term Feeding (MIC-KEY* Portfolio)
Current Situation • ~$500M global served market; 4-5% CAGR • #1 share in US market • Dedicated US sales team • $6B in natural adjacencies 26 Long-Term Feeding (MIC-KEY* Portfolio) Extend global reach and launch next-gen portfolio; MSD growth Indicates current make-up of DH portfolio “MIC-KEY* will c
Slide 27: Opportunity to Expand in High-Potential Global Markets
LATAM Example: Q2 launch of NEOMED* opening new market 27 Asia Pacific Example: Q2 Launch of CORTRAK* 2 Western Europe Example: Q1 Nordics go-direct improving sales footprint & gross margin $150M SAM $300M SAM $50M SAM Opportunity to Expand in High-Potential Global Markets
Slide 28: Innovation Pipeline to Protect Base, Improve Share & Margin
Innovation Pipeline to Protect Base, Improve Share & Margin† Next Gen MIC-KEY G Evolve* Next Gen CORTRAK* 2 Next Gen NEOMED* ENFit® Next Gen Feeding Solutions Recent Launches Next Gen MIC-KEY* GJ Next 12 Months† Next 12-36 Months† Next Gen CORGRIP* Novel Securement ANCORIS* 28 Compatible Portfolio †
Slide 29: Actionable M&A Targets in Large, Attractive Adjacencies
Actionable M&A Targets in Large, Attractive Adjacencies† 29 Tubes and Initial Placement Devices 5 targeted organic launches in next 12-36 months $1B+ Pumps and Giving Sets 2 targeted organic launches strong M&A pipeline $2B Specialty Nutrition and Supplements Strong M&A pipeline $4B †Product Status:
Slide 30: Digestive Health Summary
Digestive Health Summary 30 • Leadership and consistent above-market growth in >$1B core market • MSD growth expected with existing portfolio and commercial execution • ~60% gross margin • Acceleration via innovation and M&A in $6B+ adjacencies
Slide 31: Two Scaled Portfolios
TRIVISC* & GENVISC* Digestive Health $365M Pain Management & Recovery $310M Two Scaled Portfolios 31 Short-Term Feeding CORTRAK* 2 NEOMED* Pre-Surgical ON-Q* AMBIT* Surgical GAME READY* Recovery MIC-KEY* Long-Term Feeding MARKET-LEADING BRANDS $675M Total Net Sales COOLIEF* TRIDENT*
Slide 32: Diros RF Technology Acquisition
Diros RF Technology Acquisition 32 • Provides a mid-tier solution enabling Avanos to offer the most comprehensive RF portfolio • Provides a key offering to target ambulatory surgery centers and office-based RF procedures • With COOLIEF* and Avanos Standard RF, TRIDENT* uses Avanos’ existing generato
Slide 33: Pain Management & Recovery Summary
Pain Management & Recovery Summary 33 • Four strong brands that connect patient lifecycle • Portfolio expected to deliver MSD growth and 60% gross margin • Commercial reset will improve sales effectiveness and expected to deliver <40% SG&A • Very selective investment in innovation, M&A and internati
Slide 34: Solutions Across Pain Management & Recovery Lifecycle
Providing Solutions Across Pain Management & Recovery Lifecycle Short-Term Pain Relief Hyaluronic Acid (HA) Surgical Pain Relief Pain Pumps Post-Surgery Recovery Cryo-Compression Longer-Lasting Pain Relief Radiofrequency Ablation (RFA) 34 Up to 6 Months of Pain Relief 6 Up to 12-24 Months of Pain Re
Slide 35: Focus on Winning in US Pain Market
Focus On Winning in US Pain Market; International Limited to “Right to Win” Categories Pain Market Dynamics • Consistent 4% market growth • Aging population • Trend towards ASC • High competitive intensity • Positive international dynamics in select categories 35 ’23 – ’25 Pain Management & Recovery
Slide 36: Expected Pain Growth Through Commercial Reset
Expected Pain Growth Through Commercial Reset, Refined Strategies & Select International Investment 36 Improve Commercial Execution • New sales and marketing leadership • Improved coverage with “bigger bag” • Increased focus on ASC Refine Product Brand Strategies • Repositioned products for ASC • Tu
Slide 37: Hyaluronic Acid (GENVISC* & TRIVISC*)
37 Hyaluronic Acid (HA) (GENVISC* & TRIVISC*) Expand sales footprint and customer reach; LSD growth Current Situation • $1B US served market ($500M multi-shot); LSD CAGR • Leader in Medicare 5-shot market; growth opportunity in 3-shot space • Direct + 1099 team targeting interventional pain and orth
Slide 38: Radiofrequency Ablation (COOLIEF* & TRIDENT*)
38 Radiofrequency Ablation (COOLIEF* & TRIDENT*) Protect, expand hospital base and grow ASC; HSD growth Current Situation • $380M global served market; ~6% CAGR • Hospital: ~10% of procedures; COOLIEF* #1 • ASC/office: ~90% of procedures, mostly Standard RF • Dedicated hospital/ASC RF sales team Gro
Slide 39: Surgical Pain Pumps (ON-Q* & AMBIT*)
39 Surgical Pain Pumps (ON-Q* & AMBIT*) Protect, expand hospital base and grow ASC; LSD growth Current Situation • $400M global served market ~2% CAGR • #1 US share and broadest portfolio • Decline in hospital, growth in ASC • Dedicated US hospital/ASC sales team Growth Strategy • Protect, expand ON
Slide 40: Cryo-Compression (GAME READY*)
40 Cryo-Compression (GAME READY*) Improve business model and profitability; MSD growth Current Situation • $300M global cryo-compression market; ~8% CAGR • Top brand across orthopedics, pro- athletes and physical therapists • US 1099 + direct teams targeting orthopedic customers Growth Strategy • Im
Slide 41: Pain Management & Recovery Summary
Pain Management & Recovery Summary 41 • Four strong brands that connect patient lifecycle • Portfolio expected to deliver MSD growth and 60% gross margin • Commercial reset expected to improve sales effectiveness and deliver <40% SG&A • Very selective investment in innovation, M&A and international
Slide 42: Innovation Optimization
Innovation Optimization Lee Burnes Senior Vice President, Global Research & Development
Slide 43: Transformation Priorities: 2023–2025
Transformation Priorities: 2023–2025 Strategic & Commercial Optimization 1 Transform the Product Portfolio 2 Additional Cost Management Initiatives to Enhance Operating Profitability 3 Continued Efficient Capital Allocation Strategies to Expand Return on Invested Capital 4 43 DELIVERING VALUE TO ALL
Slide 44: Portfolio Investment Optimized for Customer-Driven Innovations
Portfolio Investment Optimized to Focus on Customer-Driven Innovations R&D Focus: Pain Focused Digestive Health Focused R&D Spend: 6% of Net Sales 3-4% of Net Sales Portfolio: Technology Driven Customer-Driven Organic & Open Innovation Pain Digestive Health Pain Digestive Health 44 R&D SPEND EMPHASI
Slide 45: Customer-Driven Innovation Process Identifies Value
Customer-Driven Innovation Process Identifies Value Discovery of Unmet Needs Qualitative Needs Prioritization Workshop Needs Prioritization Quantitative Ideation Sessions Concept Testing & Refinement Qual and Quant Product Development and M&A Roadmap VoC Captured for 100s of HCPs & Caregivers Global
Slide 46: Organic R&D Focused on Fast-to-Market Opportunities
Organic R&D Focused on Fast-to-Market Opportunities Deep Understanding of Customer Needs Disciplined Investment Criteria Innovation in “Right-to-Win” Categories Disciplined Investment Criteria Centers of Excellence Model Project Management-Led NPD 46 DRIVING A STEADY CADENCE OF INNOVATIONS TO MARKET
Slide 47: Inorganic Open Innovation Focused on Breakthroughs
Inorganic Open Innovation Focused on Breakthroughs Internal R&D VCs Pre-Revenue External Co. Universities Partnerships Prioritize Best Opportunities Diligence & Develop the Opportunity In c re a s in g In n o v a tio n V o lu m e Transact & Integrate into Portfolio Activity Existing C o m m e rc ia
Slide 48: Digestive Health Innovation Strategy
Digestive Health Innovation Strategy† Pumps and Giving Sets Protect and grow our core to maximize growth Expand into near adjacencies to drive above-market growth Leverage NEOMED* brand to grow revenue at HSD in the NICU 48 $2B Tubes and Initial Placement Devices $1B+ LEVERAGE MARKET LEADERSHIP POSI
Slide 49: Avanos Innovation Portfolio Highlights
Avanos Innovation Portfolio Highlights 49 Concept Feasibility Development Validation Commercialization D ig e s ti v e H e a lt h Exploration N e x t 1 2 M o n t h s † 1 2 - 3 6 M o n t h s † Next Gen CORTRAK* 2 Next Gen HA Device COOLIEF* Procedural Expansion Next Gen GAME READY* Next Gen MIC-KEY*
Slide 50: Large Addressable Global Markets in Long-Term Enteral Feeding
Large Addressable Global Markets in Long-Term Enteral Feeding† 50 • Compact size supports mobility in daily living • Focused on needs of caregiver in the home Pumps & Giving Sets ($2B+ Served Global Market) Expand into near adjacencies to drive above MSD growth Next Gen Low-Profile Gastrostomy Produ
Slide 51: Growth Opportunities in Short-term Enteral Feeding
Growth Opportunities Focused on Safety & Securement Solutions in Short-term Enteral Feeding 51 Protect and grow our core to drive MSD growth Next Gen CORTRAK* 2 Enteral Access System† ($300M Served Global Market) • Guided workflow with continuous monitoring • Pediatric indication & International exp
Slide 52: Innovation Headroom in $200M NICU Segment
Significant Innovation Headroom in $200M NICU Segment† 52 • Painful condition for neonates must be eliminated • New system for improved workflow & time efficiency Eliminating NIV-Driven Abdominal Distension Grow revenue at HSD in the NICU • Critical fat is lost in today’s typical transfer methods •
Slide 53: Innovation Portfolio Summary
Innovation Portfolio Summary† 53 • Transformed and optimized innovation approach • Supports DH above-market growth thesis • Upside to Pain growth via open innovation • New products accretive to 60% gross margin †Product Status: The information presented herein involves technologies and concepts in d
Slide 54: 15-Minute Break
15-MINUTE BREAK 54
Slide 55: Supply Chain Optimization
Supply Chain Optimization Sudhakar Varshney Senior Vice President, Global Supply Chain & Procurement
Slide 56: Transformation Priorities: 2023–2025
Transformation Priorities: 2023–2025 Strategic & Commercial Optimization 1 Transform the Product Portfolio 2 Additional Cost Management Initiatives to Enhance Operating Profitability 3 Continued Efficient Capital Allocation Strategies to Expand Return on Invested Capital 4 56 DELIVERING VALUE TO ALL
Slide 57: Nearshored Manufacturing Facilities in the US and Mexico
5 Nearshored Manufacturing Facilities in the US and Mexico Tijuana (MX) Nogales 1 (MX) Tucson (AZ) Nogales 2 (MX) Magdalena (MX) Percentage of space utilized shown next to product family • 450K square feet of internal manufacturing capability • Nogales 2: molding & extrusion • Magdalena: primary res
Slide 58: RH Carveout & TSA; Conveying Manufacturing Sites
Straightforward RH Carveout & TSA; Conveying 2 Manufacturing Sites Open capacity for future acquisitions • Magdalena and Nogales 2 conveyed to buyer • Respiratory finished good production consolidated in Magdalena • Transfer non-respiratory production to Tijuana (Pain) and Nogales (Digestive Health)
Slide 59: 60%+ Gross Margin Through Transformation
60%+ Gross Margin Through Transformation Addressing stranded cost and inflationary headwinds 2022 Post-RH Stranded Cost Transformation Savings Inflation Impact Incremental Savings Funnel 2025 Path to 60%+ Gross Margin 56.8% 60-61% 490 bps (200) bps (440) bps 380 bps 140 bps G ro s s M a rg in Projec
Slide 60: Current Transformation Projects Deliver 380 bps of GM Improvement
25 8 13 4 9 3 1 2 3 263 39 126 57 40 Current Transformation Projects Deliver 380 bps of GM Improvement Additional 140 bps Awaiting Resource Allocation • Transformation projects focus on 60% of spend • $25M projected savings; $5M already executed • Primary focus areas: freight, logistics, insourcing,
Slide 61: Continuously Improving Supply Chain Resilience
Continuously Improving Supply Chain Resilience and Sustainable Process Capabilities 61 • Build capabilities in molding, extrusion, packaging, instrument manufacturing • Make vs. buy decisions • Standard KPI measurement across the network • Agile in change management process 1 Center of Excellence •
Slide 62: Financial Optimization
Financial Optimization Michael Greiner Senior Vice President, Chief Financial Officer & Chief Transformation Officer
Slide 63: Transformation Priorities: 2023–2025
Transformation Priorities: 2023–2025 Strategic & Commercial Optimization 1 Transform the Product Portfolio 2 Additional Cost Management Initiatives to Enhance Operating Profitability 3 DELIVERING VALUE TO ALL STAKEHOLDERS 63 Continued Efficient Capital Allocation Strategies to Expand Return on Inves
Slide 64: Our Path to 2025 and Beyond
Our Path to 2025 and Beyond 2025 GOAL**2023 PRO FORMA* *Restated to exclude Respiratory Health business and include Diros acquisition. **Reflects net sales for 2025, on a constant currency basis. $750M ~$50M+ $675M Global Net Sales Core Growth Driven By: • Strategic & commercial optimization • Trans
Slide 65: Revenue Walk to 2025
Revenue Walk to 2025 65 • Global market growth: • Digestive Health ~4% • Pain ~5% • Innovations centered around Digestive Health • Initiatives (CORTRAK* SOC, Go Direct, NEOMED*) • M&A totaling $50M by 2025 • Low margin product exits initiated end of 2022 ~$25M • RH divestiture announced in June 2023
Slide 66: Consistent Growth with Focused Portfolio
Consistent Growth with Focused Portfolio 66 $820 $675 $800 Digestive Health 6% CAGR 23-25 • Market growth 4% ~$28M • Initiatives $9M • Innovations $8M Acute Pain stabilization • Product exits throughout 2023 for International • Excluding exits, CAGR 2% Orthopedic Pain 6.5% CAGR 23-25 • Market growth
Slide 67: Focus on Higher-Growth Markets Supports MSD Growth
Focus on Higher-Growth Markets Supports MSD Growth 67 2022 2025 Higher Growth Markets (>6% CAGR) • Radiofrequency Ablation • Cold Compression Mechanical Therapy • Neonatal Enteral Feeding Devices • Enteral Pumps & Nutrition (via Organic Innovation/M&A) Moderate Growth Markets (3-5% CAGR) • Adult/Ped
Slide 68: Profitable, Focused Growth Supports Margin Expansion
Profitable, Focused Growth Supports Margin Expansion 68 ~+400 bps ❑ Respiratory Health Divestiture ❑ Supply Chain optimization ❑ Right-sizing of Avanos fixed cost ❑ M&A targets with similar margin profile Return to 2022 level +400 to 500 bps
Slide 69: SG&A Walk to 2025
SG&A Walk to 2025 69 • 3% yearly inflation • Business Process Outsourcing • Optimized sales organization and support functions • Reduced 3rd party / consultant spend • Post-divestiture optimizations: • Sales/mktg spend • Contract renegotiation due to smaller footprint Improved SG&A leverage: $10 - $
Slide 70: Capital Allocation Priorities
~3.5% annually Target margin accretive deals Returns above cost of capital ~$20M annually Opportunistic share buybacks No current thesis to support dividend R&D CAPEX SHARE REPURCHASE M&A SHARE- HOLDER VALUE CREATION Capital Allocation Priorities Driven by ROIC & Strong Balance Sheet 70 $ in million
Slide 71: Building Value Creation
MSD organic growth Margin expansion +400-500 bps EBITDA margin FCF generation >$100M FCF ~60% FCF conversion Increased ROIC From 5.8% to >8% ROIC Building Value Creation 71
Slide 72: Updating 2023 Guidance
Updating 2023 Guidance 72 Revenue (in millions) Adj. Gross Margin SG&A % Adj. EBITDA (in millions) Adj. Diluted EPS Q1 $192 56.4% 41.6% $26 $0.27 Q2 $193 - $196 57.0 - 58.0% 40.0 - 41.0% $30 - $34 $0.32 - $0.36 H1 $385 - $388 56.5 - 57.0% 40.5 - 41.0% $56 - $60 $0.59 - $0.64 H2 $415 - $420 57.0 - 57
Slide 73: Closing Remarks
Closing Remarks Joe Woody Chief Executive Officer
Slide 74: Avanos Investment Thesis
74 Avanos Investment Thesis Solid core categories with consistent organic growth Direct adjacencies to add growth and margin improvement Clearly defined set of transformation priorities already in motion Leverageable financial model to generate material free cash flow and high ROIC
Slide 75: Q&A
Q&A
Slide 76: Innovation Showcase
Innovation Showcase
Slide 77: References
77 References Pain Management & Recovery market sizes & growth rate sources: Digestive Health market size sources: • Core Products, Pumps, & Sets – Allied Market Research, Global Enteral Feeding Device Market 2018-2025; Internal analysis • Enteral Nutrition – Market And Markets Report, Enteral Feedi
Slide 78: References (Digestive Health)
References (Digestive Health) 78 1. Slide 24 – Source: COPY-05911 approved on 4-1-2022. See mark 50-54 sec 2. Slide 25 – Source: 2021 Customer Satisfaction Survey 3. Slide 26 – Source: https://tubefed.com/newsletter/a-cancer-survivor-shares-his-mic-key-tube-story/
Slide 79: References (Pain Management & Recovery)
References (Pain Management & Recovery) 79 4. Slide 32 – Source: Computer Simulated Lesion Representation, Avanos Data on File 5. Slide 32 – Source: RF Tined Treatment Research KJT Group, March 20, 2023 KJT 6. Slide 34 – Source: GenVisc 850 Package Insert 7. Slide 34 – Source: Clinical Study Referen
Slide 80: References (Pain Management & Recovery)
References (Pain Management & Recovery) 80 10. Slide 37 – Source: Internal, Data on File (Customer Insights VOC) 11. Slide 38 – Source: COOLIEF* patient testimonials • COOLIEF* success stories: Real patients with real relief (mycoolief.com) 12. Slide 38 – Source: NICE Link, Japan Reimbursement Code