Accendra Health, Inc. · NYSE:ACH
Accendra Health — Owens & Minor — Investor Day (December 2023)
94 slides from Accendra Health's investor day presentation, Dec 6, 2023
Slide 1: Investor Day December 6, 2023
I N V E S T O R D A Y D e c e m b e r 6 , 2 0 2 3 Proprietary to Owens & Minor, Inc. | ©2023 Owens & Minor, Inc.
Slide 2: Jon Leon, SVP & Corporate Treasurer
2 Jon Leon Senior Vice President & Corporate Treasurer Owens & Minor Proprietary to Owens & Minor, Inc.
Slide 3: Safe Harbor
3 This presentation is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the SEC's Fair Disclosure Regulation. This presentation contains certain ''forward-looking'' statements made pursuant to the Safe Harb
Slide 4: Use of Non-GAAP Measures
4 This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). In general, the measures exclude items and charges that (i) management does not believe reflect Owens & Minor’s core business and relate more to strategi
Slide 5: Agenda
5 Agenda Strategy & Vision 2028 Ed Pesicka Developing Talent & Culture Tammy Gomez Patient Direct Perry Bernocchi Products & Healthcare Services Andy Long Financials & Guidance Alex Bruni Q&A Session All Concluding Remarks Ed Pesicka • • • B R E A K • • • Proprietary to Owens & Minor, Inc.
Slide 6: Purpose Video
6 • • • PURPOSE VIDEO • • • Proprietary to Owens & Minor, Inc.
Slide 7: Ed Pesicka, President & Chief Executive Officer
7 Ed Pesicka President & Chief Executive Officer Owens & Minor Proprietary to Owens & Minor, Inc.
Slide 8: Today's Critical Takeaways
8 Today’s Critical Takeaways Our businesses continue to evolve and we will focus on high-value businesses for maximum return Our team has developed a multi-year strategic plan to both drive growth and enhance profitability We expect the Patient Direct segment to continue to outpace the market and gr
Slide 9: Owens & Minor Overview
9 Owens & Minor Overview 4,000+ Healthcare Providers Served 140+ Years of Dedicated Service ~400+ Facilities Worldwide ~85% of U.S. Population Accessible Through Payor Relationships ~3M Patients Served in the Home Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company p
Slide 10: Patient Direct – The Future of Home-based Care
10 Patient Direct – The Future of Home-based Care • Over the last five years we built a strong growth platform that’s at the center of where healthcare is trending • Doubled down on our belief in our Patient Direct business with the addition of Apria • Track record of strong growth throughout our pa
Slide 11: Solid Foundation in Product & Healthcare Services
11 Solid Foundation in Product & Healthcare Services • Historical foundation • Very large market • Need to strengthen our competitive position • Must better align production costs and product portfolio • Status quo not acceptable • Well positioned to achieve success Significant Opportunity to Drive
Slide 12: Our Recent Strategic Path
12 2017 2018 2019 2020 2021 2022 2023 Our Recent Strategic Path Acquired Ed Pesicka Joined as CEO Acquired Pandemic Acquired Industry Normalization Operating Model Realignment Deleveraged Balance Sheet Proprietary to Owens & Minor, Inc.
Slide 13: Time to Reflect: Owens & Minor Today
13 Time to Reflect: Owens & Minor Today Strengths/Opportunities Must find ways to deliver products and services at a lower cost across the business while reimagining our geographic footprint Executing on our product expansion opportunities into adjacent categories Capitalize on fragmented and growin
Slide 14: Vision 2028: Grow, Optimize & Invest
14 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 2 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand
Slide 15: Operating Model Realignment – Our Four Pillars
15 Operating Model Realignment – Our Four Pillars 1 Life of Program $250-400M On Path by End of 2025 $200M Run Rate Exiting 2023 $100M Run Rate On Track in 2023 $30M Savings Network rationalization and operational excellence Designing our organizational structure Sourcing and demand management Comme
Slide 16: Vision 2028: Grow, Optimize, & Invest
16 Vision 2028: Grow, Optimize, & Invest Strong brand recognition with a national footprint and local presence Proven model is expected to continue to drive organic growth Top positions across core disease categories and numerous opportunities to enter adjacencies Focus investments to drive organic
Slide 17: Our Long-Term Financial Targets to 2028
17 Our Long-Term Financial Targets to 2028 >$12B Annual Revenue >$750M Adj EBITDA1 >20% Adj EPS1 CAGR to $3.50+ >$1.3B Cumulative FCF1 (1) Represents a Non-GAAP financial metric. For additional information on Non-GAAP reconciliations see "Use of Non-GAAP Measures." Reconciliations for Non-GAAP measu
Slide 18: Unlocking Our Growth Potential and Capturing Opportunities
18 Unlocking Our Growth Potential and Capturing Opportunities 2028: Grow, Optimize, & Invest Patient Direct Products & Healthcare Services Our Patient Direct business is a high margin, growth engine and we intend to expand our position as a market leader in the home-based care space Balance Sheet We
Slide 19: The Individual Elements Form a Larger Picture
The Individual Elements Form a Larger Picture Purpose is why we exist The timeless north star that guides us Vision is where we’re going The next big mountain we’re going to summit Mission is what we do What we do each day to climb the mountain Strategy links Mission & Vision The path we will take t
Slide 20: Tammy Gomez, EVP & Chief Human Resources Officer
20 Tammy Gomez Executive Vice President & Chief Human Resources Officer Owens & Minor Proprietary to Owens & Minor, Inc.
Slide 21: Vision 2028: Grow, Optimize & Invest
21 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 2 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand
Slide 22: Our Teammates Are Our Core
22 Our Teammates Are Our Core • 22,000 Global Teammates • 40% Female Teammates in Global Management Roles • 27% Ethnically Diverse Teammates in U.S. Management Roles • 45% of Teammates with 5+ Years of Service • Diverse Board of Directors Proprietary to Owens & Minor, Inc.
Slide 23: Companies with Purpose Have Tremendous Impact
23 Companies with Purpose Have Tremendous Impact Employees can create huge savings for their organizations when they find meaning in their work. Compared to low-purpose ones, high-purpose companies show… $630B 3x Fulfilled employees are 3x more likely to stay with the same company for a decade Volun
Slide 24: Teammate Video
24 • • • TEAMMATE VIDEO • • • Proprietary to Owens & Minor, Inc.
Slide 25: Our Timeless Purpose and Timely Vision
25 Our Timeless Purpose and Timely Vision P U R P O S E V I S I O N Be the unstoppable and dynamic leader that connects patients and providers to trusted healthcare products and solutions Proprietary to Owens & Minor, Inc.
Slide 26: Play to Win, Act Like Owners, Advance with Speed, Reward Impact
26 PLAY TO WIN ACT LIKE OWNERS ADVANCE WITH SPEED REWARD IMPACT Anticipate customer needs to lead in the marketplace Encourage and take smart risks Eliminate unnecessary red tape Celebrate wins for company, customer and teams Our Vision Be the unstoppable and dynamic leader that connects patients an
Slide 27: Our Business Elements Form A Bigger Picture Together
27 Our Business Elements Form A Bigger Picture Together S T R AT E G I C P L A N How we achieve our Vision KPI P E R F O R M A N C E M G M T. How we track our progress G R O W T H — T A L E N T — E X C E L L E N C E 2 0 2 8 S T R A T E G Y E M P O W E R I N G O U R C U S T O M E R S T O A D V A N C
Slide 28: Operating Model Realignment: Talent
28 Operating Model Realignment Training Programs to Build Skillsets Adapting to Market & Workforce Trends We are investing in our teammates’ future for our future Recognizing Talent and Promoting from Within Upgrading Talent Where Needed Identify Gaps Retain & Invest in Our Team Expand Automation Un
Slide 29: How We're Raising the Bar
29 How We’re Raising the Bar Building a Great Place to Work For All 1. Hiring Focus 2. War for Talent 3. The Best People Diverse Hiring Practices Supplier Diversity Initiatives Community Engagement & Partnerships External Partnerships & Networks Proprietary to Owens & Minor, Inc.
Slide 30: Unleashing Our Team to Win
30 Unleashing Our Team to Win Drive profitable growth through 2028 PLAY TO WIN ACT LIKE OWNERS ADVANCE WITH SPEED REWARD IMPACT Proprietary to Owens & Minor, Inc.
Slide 31: Perry Bernocchi, CEO Patient Direct
31 Perry Bernocchi Executive Vice President & Chief Executive Officer Owens & Minor Patient Direct Proprietary to Owens & Minor, Inc.
Slide 32: Vision 2028: Grow, Optimize & Invest
32 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 2 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand
Slide 33: Vision 2028: Accelerate PD Growth
33 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand p
Slide 34: Macro Trends in Home-based Care in Our Favor
34 Macro Trends in Home-based Care in Our Favor Byram and Apria compete in the DME sub-segment of a Growth driven by aging US population and increasing volume of patients living with chronic diseases Growing demand for home-based care Increasing demand from payors & providers for value-based care mo
Slide 35: Benefits of Home-based Care
35 Benefits of Home-based Care Allows patients to receive treatment of chronic illnesses in their home Greater patient independence and improved outcomes 2 1 Growing demand for treatment of chronic illnesses Technology and product advancement allow for additional chronic conditions to be treated at
Slide 36: The Winning Combination of Apria & Byram
36 The Winning Combination of Apria & Byram A Leading Platform in the Home-based Care Market Organic Growth PATIENT DIRECT ✓Broadened portfolio ✓Expanded presence in higher-growth and higher-margin categories ✓Increased attractiveness to payor panels, providers, and patients ✓Growth within highly fr
Slide 37: Market Leader in Home-based Care: Revenue by Disease State
37 Market Leader in Home-based Care $2.6B Annual revenue 29% 17% 26% 7% 6% 4% 11% • Diabetes Respiratory • • Sleep Ostomy • Wound care • Urology • Other • • Leading position in key categories • 8% pro-forma organic CAGR from 2019-2023 • Diabetes category is primarily comprised of Type 1 and Type 2 i
Slide 38: Market Leader in Home-based Care: Active Patients by Disease State
38 Share of Active Patients by Disease State of annual revenue is recurring revenue from existing patient base 34% 80% 12% 11% 11% 7% 5% 21% • Sleep • Respiratory Diabetes • Wound care • Incontinence/Urology • Ostomy • Other • Market Leader in Home-based Care ~3M Active patients Proprietary to Owens
Slide 39: Market Leader in Home-based Care: Payor Mix
39 18% 80% • Medicare • Medicaid Commercial • 2% PD partners with payors covering 290M Lives PD Payor Mix Market Leader in Home-based Care 290M Covered lives • Access to ~85% of U.S. population • Growing Medicare Advantage population • Majority of payor partnerships are evergreen • Rated Best Overal
Slide 40: Market Leader in Home-based Care: Manufacturers
40 Market Leader in Home-based Care 1200+ Branded manufacturers Contracted with High Quality Manufacturers Proprietary to Owens & Minor, Inc.
Slide 41: Market Leader in Home-based Care: Sites in U.S.
41 Market Leader in Home-based Care 300 Sites in U.S. • 300 sites across U.S. • National footprint, local presence • Sales professionals, customer service, and skilled clinicians in the local community • Ability to expand in current footprint and add more locations Proprietary to Owens & Minor, Inc.
Slide 42: Reimagining Patient Care at Home for Improved Quality of Life
42 Reimagining Patient Care at Home for Improved Quality of Life Our goal is to be the leading, national provider of medical equipment, supplies, and care solutions for people living with chronic conditions at home or transitioning from acute care Our growth focus is the disease states that require
Slide 43: Patient Testimonial Video
43 • • • PATIENT TESTIMONIAL VIDEO • • • Proprietary to Owens & Minor, Inc.
Slide 44: What Makes Patient Direct a Market Leader Today
44 What Makes Patient Direct a Market Leader Today Competitive Positioning • Top 3 position • Strong brand and footprint • In-network access to insured population Extensive Portfolio • Solutions across care journey • Strategic alliances with preferred partners • Innovative portfolio Customer-centric
Slide 45: Our Ambition is to Grow to $5B Revenue in the Next Five Years
45 • Acquired 2017 • Leader in diabetes & wound care • Grown organically from $450M to $1.2B • Acquired 2022 • Leaders in sleep & respiratory • 275+ branches • Invest in base business Byram Acquisition Apria Acquisition • Accelerate growth in core categories • Invest in adjacent conditions Grow Thro
Slide 46: Three Strategies to Grow Patient Direct
46 Three Strategies to Grow Patient Direct Expand Leadership Leverage Technology • Grow base business above market • Focus on core therapies: − Diabetes − Wound Care − Sleep − Respiratory • Develop best-in-class digital capabilities • Support growth, maximize patient outcomes, and provide value-base
Slide 47: Expand Market Leadership Position
47 • Commercial Excellence • Large Patient Populations • Customer Experience • Expand Strategic Alliances • Lower Cost to Serve Expand Market Leadership Position Base Business Poised to Continue to Outgrow Market 1 Proprietary to Owens & Minor, Inc.
Slide 48: Develop Best-in-class Digital Capabilities
48 • Patient Management Platform • Customer Data Warehouse • Re-platform mybyram, Apria Direct • Innovative Digital Marketing • ERP & CRM Leverage Digital Capabilities & Technology Develop Best-in-class Digital Capabilities 2 Proprietary to Owens & Minor, Inc.
Slide 49: Spotlight: Using Technology to Rethink Patient Journey
49 Spotlight | Using Technology to Rethink Patient Journey • Common Platform for Data Collection • Adherence to Treatment • Patient Education • Develop Evidence for Value-Based Care • Care Management - Intervention • Remote Patient Monitoring • Optimize Patient Outcomes • Forecasting demand PMP Pati
Slide 50: Enter Adjacent Markets
50 • Orthotics & Prosthetics • Complex Rehab • Home Dialysis • Heart Disease CHF & RPM WCD Enter Adjacent Markets Significant Growth Opportunity in New Channels & Markets 3 Proprietary to Owens & Minor, Inc.
Slide 51: Potential Adjacent Market Opportunities
51 Potential Adjacent Market Opportunities Four potential adjacent market opportunities to help PD reach $5B+ in revenue 6 in 10 American adults have at least one chronic condition Note: All market sizes shown are US-only estimates as of 2022. Sources: CDC; Future Market Insights; TechNavio; Allied
Slide 52: We Will Continue to Invest to Support our Growth Ambition
52 We Will Continue to Invest to Support our Growth Ambition Grow through M&A Our ambition Continue organic expansion $2.6B 2023 expected annual revenue $1.8B 2019 proforma annual revenue1 $3.7B 2028 organic only annual revenue ambition $5B 2028 annual revenue ambition Proprietary to Owens & Minor,
Slide 53: We Will Continue to Invest to Support our Growth Ambition
53 Continue to invest in talent We Will Continue to Invest to Support our Growth Ambition Compounding growth rate with recurring revenue stream National footprint with a local presence Best-in-class commercial and marketing excellence Mature and scalable platform Proprietary to Owens & Minor, Inc.
Slide 54: Break
• • • B R E A K • • •
Slide 55: Med Distribution Video
55 • • • MED DISTRIBUTION VIDEO • • • Proprietary to Owens & Minor, Inc.
Slide 56: Andy Long, CEO Products & Healthcare Services
56 Andy Long Executive Vice President & Chief Executive Officer Owens & Minor Products & Healthcare Services Proprietary to Owens & Minor, Inc.
Slide 57: Vision 2028: Grow, Optimize & Invest
57 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 2 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand
Slide 58: Vision 2028: Optimize P&HS
58 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand p
Slide 59: P&HS Provides Healthcare Products and Services In Acute Care
59 P&HS Provides Healthcare Products and Services In Acute Care Medical Distribution (MD) • Distribution of medical products to primarily acute care hospitals through network of distribution centers Products • Manufacturing and sourcing of protective products and custom kits and trays – both branded
Slide 60: Market-leading Brands & Services Offerings
60 We Have Well-regarded, Market-leading Brands & Services Offerings Servicing customers across acute and alternate care sites with these offerings Products Healthcare Services Surgical & Medical Products Procedure Kits & Trays Distribution & Logistics Inventory Management Technology Perioperative S
Slide 61: Our Business Has Faced a Highly Dynamic Market Since 2019
61 Our Business Has Faced a Highly Dynamic Market Since 2019 2020 | Growth accelerated during COVID pandemic due to: • High demand for PPE • O&M rising to the challenge by ramping up production and supply chain capabilities Post-pandemic | Our business faced several challenges: • Customer excess sup
Slide 62: Our Three Strategies to Improve Competitive Advantage and Efficiencies
62 Our Three Strategies to Improve Our Competitive Advantage and Efficiencies Transitioning to a product-driven distribution business Leverage Scale of P&HS Profitably Rapidly Grow O&M Brand Product Portfolio • Driving operating efficiencies to be low-cost in commoditized areas • Investing where the
Slide 63: Leveraging Scale of P&HS Profitably
63 Leveraging Scale of P&HS Profitably From To One team with consolidated responsibility Multiple procurement teams Differentiated capabilities that command a premium market position Prioritization regardless of value Standardized offerings that focus on delivering value Complex offerings to custome
Slide 64: Spotlight: Changes In Our Operations Have Already Hit the Bottom Line
64 Spotlight | Changes In Our Operations Have Already Hit the Bottom Line Centralize Procurement Deliver Value Differentiate Capabilities Establish End-to-end Value Chain Working Capital Improvements • Plan, source, make, & deliver activities under “one roof” • Optimizing pricing & inventory managem
Slide 65: Spotlight: Growing Our Product Portfolio to Build Competitive Advantage
65 Spotlight | Growing Our Product Portfolio to Build Competitive Advantage • Surgical accessories • Apparel • Skin prep • Incontinence • Temperature management • Infection prevention/PPE • Wound care •Sterilization •Critical care •Endoscopy •Radiology •Specimen collection •Electromedical •ENT •Ente
Slide 66: Expanding into New Categories
66 Expanding into New Categories Increasing Pace of Product Launches 90% Spotlight | Growing Our Product Portfolio Active, multi-million-dollar investment in customer-centric category management Passive, supplier-centric product management FROM TO Of first wave expansion (2024) is coming from new ca
Slide 67: Significant Growth Opportunity in New Channels & Markets
67 Identify Adjacent Markets Expand Presence in Operating Room • Portfolio expansion to fill product gaps • Custom procedure trays • Enhanced services • Clinical education programs and assessments • Ambulatory surgical centers (ASCs) • Clean rooms • Consumer • Labs We Have Significant Growth Opportu
Slide 68: Organization Structure
68 Organization Structure Structure teams to align with business objectives Realizing These Objectives Has Required Changes In Our Business Ways of Working Streamline, empower and drive accountability Talent Development Develop high performers and hire top talent Proprietary to Owens & Minor, Inc.
Slide 69: Improve P&HS Profitability Through Execution of Strategy
69 5 4 3 2 1 Leverage scale of P&HS to achieve operating efficiency Rapidly expand O&M product portfolio Enter adjacent non-acute markets Expand presence in the Operating Room Investment in talent Improve P&HS Profitability Through Execution of This Strategy is Expected to Double Our Profitability b
Slide 70: Alex Bruni, EVP & Chief Financial Officer
70 Alex Bruni Executive Vice President & Chief Financial Officer Owens & Minor Proprietary to Owens & Minor, Inc.
Slide 71: Vision 2028: Grow, Optimize & Invest
71 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 2 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand
Slide 72: Vision 2028: Invest to Drive Value
72 Vision 2028: Grow, Optimize & Invest ACCELERATE PD GROWTH • Grow base business above market with focus on core • Best-in-class digital and technology 1 • Enter adjacent markets with focus on comorbid conditions 3 OPTIMIZE P&HS • Leverage scale of P&HS channel profitably • Rapidly grow O&M brand p
Slide 73: Where We Were … and Where We Are Today
73 Where We Were … and Where We Are Today 5 years ago… • Service issues causing customer losses • Significant revenue and Adjusted EBITDA decline in legacy business • Challenges with cash flow and cash balance • Unsustainable debt levels • Downgraded to as low as CCC+ rating • Net leverage as high a
Slide 74: Operating Model Realignment
74 Operating Model Realignment Optimizing profitability, accelerating growth, and generating cash to invest OMR goals on track • Meet or exceed $30M savings target for 2023 • Exit 2023 with a $100M run rate • Generating cash to reinvest in the future • On a path to $200M run rate by the end of 2025
Slide 75: Reinvest to Drive Organic Growth
75 Reinvest to Drive Organic Growth Invest in our people, technology, and proprietary product portfolio Technology to Improve Patient, Provider, & Payor Experience Drive Revenue Growth and Expand Product Offerings Expand in Adjacencies The Best People Proprietary to Owens & Minor, Inc.
Slide 76: >$12B Revenue Target in 2028
76 >$12B Revenue Target in 2028 Reinvestments and Execution Sustain Topline Organic Growth Patient Direct driving majority of targeted revenue growth 2020 2021 2022 2023 Guidance 2028 Target $9.2 $8.5 $9.8 $10.0 $10.3 - $10.4 $12.0B+ 2019 Revenue ($B) 2023 Guidance = Guidance provided on November 3r
Slide 77: Adjusted EPS
77 Adjusted EPS 2023 is the Post-pandemic Earnings Inflection Point Adjusted EPS growth driven by operating income margin expansion in both segments Expect >20% CAGR on Adjusted EPS Through 2028 2023 Guidance = Guidance provided on November 3rd, 2023 Reconciliations for Non-GAAP measures are present
Slide 78: Strong Free Cash Flow Generation
78 Strong Free Cash Flow Generation Driven by strong operating profit growth and disciplined approach to working capital and CapEx Ample Cash Flow for Reinvestment and Potential Strategic Initiatives² Cumulative FCF of $1.3B ’24-’28 Reconciliations for Non-GAAP measures are presented in the appendix
Slide 79: Continued De-levering of the Balance Sheet
79 Continued De-levering of the Balance Sheet Reducing leverage to 2.0x-3.0x target enhances financial and strategic flexibility Capital Deployment Optionality Grows as Leverage Comes Down 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 3.0x 2.0x 2019 2020 2021 2022 2023 Estimate 2028 Target Net Leverage Pr
Slide 80: Disciplined Capital Allocation Strategy
80 Disciplined Capital Allocation Strategy With leverage within or below target range, three priorities outlined below Organic Reinvestment M&A Invest across all business lines for the highest possible return Drive disciplined expansion and scale Return Excess Capital to Investors Evaluate opportuni
Slide 81: Opportunistic M&A
81 Opportunistic M&A Drives scale, operating leverage, and expansion into adjacent conditions and applications Disciplined Target Identification & Diligence Optimal Profit Growth & Integration Fit Profile Focus on Patient Direct Our Approach 1. Tuck-in acquisition in underpenetrated areas 2. Moderat
Slide 82: Our Long-term Financial Targets to 2028
82 Our Long-term Financial Targets to 2028 >$12B Annual Revenue >$750M Adj EBITDA1 >20% Adj EPS1 CAGR to $3.50+ >$1.3B Cumulative FCF1 (1) Represents a Non-GAAP financial metric. For additional information on Non-GAAP reconciliations see "Use of Non-GAAP Measures." Reconciliations for Non-GAAP measu
Slide 83: Ed Pesicka, President & Chief Executive Officer
83 Ed Pesicka President & Chief Executive Officer Owens & Minor Proprietary to Owens & Minor, Inc.
Slide 84: Unlocking Our Growth Potential and Capturing Opportunities
84 Unlocking Our Growth Potential and Capturing Opportunities 2028: Grow, Optimize, & Invest Patient Direct Products & Healthcare Services Our Patient Direct business is a high margin, growth engine and we intend to expand our position as a market leader in the home-based care space Balance Sheet We
Slide 85: Q & A
• • • Q & A • • •
Slide 86: Unlocking Our Growth Potential and Capturing Opportunities
86 Unlocking Our Growth Potential and Capturing Opportunities 2028: Grow, Optimize, & Invest Patient Direct Products & Healthcare Services Our Patient Direct business is a high margin, growth engine and we intend to expand our position as a market leader in the home-based care space Balance Sheet We
Slide 87: | ©2023
Proprietary to Owens & Minor, Inc. | ©2023 Owens & Minor, Inc.
Slide 88: Appendix
• • • A P P E N D I X • • •
Slide 89: 2028 Modeling Assumptions
89 2028 Modeling Assumptions Total Company Patient Direct Products & Healthcare Services Revenue Target $12B+ CAGR of 8%+ CAGR of 1%+ Adj. Operating Income Target 10%+ CAGR $400M+ $100M+ Adj. EBITDA Target >$750M Annually by 2028 Adj. EPS Target $3.50+ (>20% CAGR) Tax Assumption Adjusted effective t
Slide 90: Adjusted EBITDA Reconciliation
90 Adjusted EBITDA Reconciliation $ in millions FYE FYE FYE FYE LTM FYE Adjusted EBITDA Reconciliation 2022 2021 2020 2019 Q2 2019 2018 Net income (loss) from continuing operations, as reported (GAAP) $ 22.4 $ 221.6 $ 88.1 $ (22.6) $ (240.7) $ (394.7) Income tax (benefit) provision (11.5) 55.2 21.8
Slide 91: Net Debt Reconciliation
91 Net Debt Reconciliation $ in millions September 30, December 31, December 31, December 31, December 31, June 30, December 31, Net Debt Reconciliation 2023 2022 2021 2020 2019 2019 2018 Total debt, as reported (GAAP) $ 2,146.0 $ 2,500.9 $ 949.6 $ 1,026.0 $ 1,559.7 $ 1,669.7 $ 1,676.6 Cash and cash
Slide 92: Adjusted EPS Reconciliation
92 Adjusted EPS Reconciliation $ in millions, except per share data FYE FYE FYE FYE Adjusted EPS Reconciliation 2022 2021 2020 2019 Net income (loss) from continuing operations, as reported (GAAP) $ 22.4 $ 221.6 $ 88.1 $ (22.6) Pre-tax adjustments: Acquisition-related charges and intangible amortiza
Slide 93: Definitions of Non-GAAP Reconciliation Items
93 Definitions of Non-GAAP Reconciliation Items The following items have been excluded in our Non-GAAP financial measures: (1) Acquisition-related charges and intangible amortization includes acquisition-related charges consisting primarily of one-time costs related to the Apria, Halyard, and Byram
Slide 94: Definitions of Non-GAAP Reconciliation Items, continued
94 Definitions of Non-GAAP Reconciliation Items, continued (9) Goodwill and intangible asset impairment charges were incurred as a result of a decline in our market capitalization and lower projected financial results of certain reporting units due to customer losses and operational inefficiencies.