Teleflex Incorporated · NYSE:TFX

Teleflex — Q1 2011 Earnings Presentation

36 slides from Teleflex's earnings presentation, Apr 26, 2011

  1. Slide 1: Teleflex Incorporated First Quarter 2011 Earnings Conference Call

    1 TELEFLEX INCORPORATED FIRST QUARTER 2011 EARNINGS CONFERENCE CALL Exhibit 99.1

  2. Slide 2: Conference Call Logistics

    2 Conference Call Logistics The release, accompanying slides, and replay webcast 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 32439030

  3. Slide 3: Introductions

    3 Introductions Benson Smith Chairman, President and CEO Randy Meier Executive Vice President and CFO Jake Elguicze Vice President, Investor Relations

  4. Slide 4: Forward-Looking Statements/Additional Notes

    4 4 4 4 4 4 Forward-Looking Statements/Additional Notes This presentation and our discussion contain forward-looking information and statements including, but not limited to, the expected launch of the Arrow NextStep antegrade catheter for chronic hemodialysis; our expectation of continued top-line

  5. Slide 5: First Quarter 2011 Highlights

    5 FIRST QUARTER 2011 HIGHLIGHTS

  6. Slide 6: First Quarter - Financial Highlights

    6 First Quarter - Financial Highlights Revenue of $389 million, up 6% constant currency Research & development spending up 19% to 2.8% of revenue Adjusted EPS of $0.96 A (A) Previously referred to as "adjusted diluted cash earnings per share from continuing operations

  7. Slide 7: First Quarter - Strategic Development Highlights

    7 First Quarter - Strategic Development Highlights Completed acquisition of VasoNova Inc. Transaction valued at up to $55 million Addresses market need for catheter navigation and location confirmation technology Received 510(k) clearance to market tip location technology as an alternative to chest

  8. Slide 8: First Quarter - Strategic Development Highlights: Marine Divestiture

    8 First Quarter - Strategic Development Highlights Completed divestiture of Marine business Transaction valued at ~ $122 million Consistent with strategy to exit cyclical assets Reclassified cargo container business to discontinued operations Expected 2011 revenue of ~ $50 million; minimal earnings

  9. Slide 9: First Quarter - New Product Introductions

    9 First Quarter - New Product Introductions Arrow NextStep Antegrade Catheter for Chronic Hemodialysis Received 510(k) clearance Provides benefits of step-tip and split-tip catheters in a single solution Expected to launch in United States later this year

  10. Slide 10: First Quarter - Group Purchasing Organization Update

    10 First Quarter - Group Purchasing Organization Update Group Purchasing Organization Contracts Awarded three new GPO contracts Received two GPO contract extensions Contracts for a combination of vascular access, surgical, respiratory, and anesthesia products

  11. Slide 11: First Quarter 2011 Financial Review

    11 FIRST QUARTER 2011 FINANCIAL REVIEW

  12. Slide 12: First Quarter - Financial Results

    12 First Quarter - Financial Results Revenue of $389 million, up 6% as-reported and constant currency Medical constant currency revenue growth of 3% Aerospace constant currency revenue growth of 42% Gross margins of 45.3%; down 290 bps Adjusted operating margins of 15.6%, down 260 bps Adjusted EPS o

  13. Slide 13: First Quarter 2011 Segment Revenue Review

    13 FIRST QUARTER 2011 SEGMENT REVENUE REVIEW

  14. Slide 14: Medical

    14 Medical Critical Care Surgical Care Cardiac Care OEM 0.67 0.18 0.05 0.1 North America EMEA Asia Pacific Latin America Japan 0.51 0.37 0.06 0.03 0.03 Q1'11 Revenue Sales = $354.0 million, up 3% constant currency Q1'11 Constant Currency Revenue Results Critical Care: $237.1 million, up 5% Vascular

  15. Slide 15: Non-Core Assets

    15 Non-Core Assets North America EMEA Asia Pacific Latin America Japan 0 0.93 0.07 0 0 Q1'11 Revenue Sales = $34.7 million, up 42% constant currency Q1'11 Constant Currency Revenue Results Cargo Systems: $34.7 million, up 42% Significant increase in aftermarket spare & repair volume Wide-body unit s

  16. Slide 16: 2011 Outlook

    2011 OUTLOOK Veleflex:

  17. Slide 17: 2011 Outlook

    7 2011 Outlook Reverse adel Om nary Goh Noncore serene Acuatedewrings perahare [PS cntiuton fom nonce amet (Caxhtlow trom operations: Gigral 2011 Oslo Post Maine 2011 Olook SM bliontost Mbilion] $185 nilion | $£25biionto$1 5S tlion] $Somilion_| $1 S7Stiionto tssilion rmbI% 2b. 21% Sion $20 mtn Sn $5

  18. Slide 18: Structure and Strategy

    STRUCTURE and STRATEGY Veleflex:

  19. Slide 19: Structure: Current State and Future State

    19 Structure Current State Future State Aligned by region North America EMEA Asia Pacific Latin America Japan OEM Aligned by product & region Vascular Access Surgical Respiratory / Anesthesia Cardiac OEM EMEA Asia Pacific Latin America Japan Future state aligned to end-markets will drive improved re

  20. Slide 20: Strategy

    20 Strategy Revenue Gross Margins Research & Development Operating Margins Pricing Sales force alignment Emerging market growth Clinical focus - not hospital supply Acquisitions to augment pipeline (e.g VasoNova) Pricing Product mix and facilities Non-core asset divestitures Pricing and mix shift Fa

  21. Slide 21: Summary

    21 Summary Expect continued top-line growth with particular strength in 2H'11 Gross and operating margins to expand from Q1'11 levels Committed to the achievement of "The High Fives"

  22. Slide 22: Question & Answer

    QUESTION & ANSWER Veleflex:

  23. Slide 23: Appendices

    APPENDICES Veleflex:

  24. Slide 24: Appendix A - Reconciliation of Teleflex Selling, General and Administrative Expenses

    24 Appendix A - Reconciliation of Teleflex Selling, General and Administrative Expenses

  25. Slide 25: Appendix B - Reconciliation of Teleflex Operating Expenses

    25 Appendix B - Reconciliation of Teleflex Operating Expenses

  26. Slide 26: Appendix C - Special Charge Income Statement Classification Summary

    26 Appendix C - Special Charge Income Statement Classification Summary

  27. Slide 27: Appendix D - Quarter-to-Date Reconciliation of Medical Constant Currency Revenue Growth

    27 Appendix D - Quarter-to-Date Reconciliation of Medical Constant Currency Revenue Growth

  28. Slide 28: Appendix E - Quarter-to-Date Reconciliation of Teleflex Constant Currency Revenue Growth

    28 Appendix E - Quarter-to-Date Reconciliation of Teleflex Incorporated Constant Currency Revenue Growth

  29. Slide 29: Appendix F - Critical Care

    29 Appendix F - Critical Care Vascular Access Respiratory Urology Anesthesia 0.44 0.19 0.15 0.22 N. America EMEA Asia Pac L. America Japan 0.49 0.39 0.05 0.04 0.03 Q1'11 Revenue Vascular sales up 6% Respiratory sales up 8% Urology sales up 5% Anesthesia sales up 1% End Market Growth Drivers Infectio

  30. Slide 30: Appendix G - Surgical Care

    30 Appendix G - Surgical Care N. America EMEA Asia Pac L. America Japan 0.49 0.39 0.09 0.02 0.01 Q1'11 Revenue Instrument sales up 1% Ligation sales up 4% Closure/Chest Drainage sales up 3% Minimally invasive surgical techniques Technology / product advances Emerging markets Instruments Ligation Clo

  31. Slide 31: Appendix H - Cardiac Care

    31 Appendix H - Cardiac Care N. America EMEA Asia Pac L. America Japan 0.3 0.48 0.13 0.05 0.04 Q1'11 Revenue Voluntary recall of 5800 Series Intra-Aortic Balloon Catheters announced in December 2010 negatively impacted sales in Q1'11 Emerging markets Technology innovation Aging population Pumps Cath

  32. Slide 32: Appendix I - OEM

    32 Appendix I - OEM Q1'11 Revenue Specialty product sales down 7% Orthopedic product sales up 7% Technology innovation Speed to market Demographics Increased regulatory scrutiny on suppliers Specialty Products Orthopedic Products 0.75 0.25 N. America EMEA 0.85 0.15 End Market Growth Drivers Sales =

  33. Slide 33: Appendix J - First Quarter Income Statement from Continuing Operations

    33 Appendix J - First Quarter Income Statement from Continuing Operations Amounts in Millions, except per share

  34. Slide 34: Appendix K - First Quarter EPS Reconciliation from Continuing Operations

    34 Appendix K - First Quarter EPS Reconciliation from Continuing Operations (A) In 2011, losses and other charges include approximately $9.3 million, net of tax, or $0.23 per share, related to the prepayment of Teleflex's outstanding senior notes issued in 2004, and related transaction fees and expe

  35. Slide 35: Appendix L - Year-to-Date Cash Flow Summary

    35 Appendix L - Year-to-Date Cash Flow Summary ($ in Millions)

  36. Slide 36: Appendix M - Reconciliation of 2011 Outlook Earnings per Share Guidance

    36 Appendix M - Reconciliation of 2011 Outlook Earnings per Share Guidance (A) Previously referred to as "adjusted diluted cash earnings per share from continuing operations A

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