Slide 1: Preliminary Financial Outlook for 2008 Earnings Conference Call
Teleflex Incorporated Preliminary Financial Outlook for 2008 Earnings Conference Call Exhibit 99.2
Slide 2: Forward Looking Statements
3 Forward Looking Statements This presentation and our discussion contain forward-looking information and statements including, but not limited to, such matters as business strategies, market trends, future financial performance, forecast of diluted earnings per share, forecast of cash flow from ope
Slide 3: Jeff Black, Chairman and Chief Executive Officer
5 Jeff Black Chairman and Chief Executive Officer
Slide 4: 2008 Financial Outlook Highlights
7 2008 Financial Outlook Highlights Repositioned portfolio to deliver Significant operating margin improvement Strong cash flow Solid revenue growth Medical mid single digit revenue growth and return to segment operating margin in 20% range during the year Increased margins in Aerospace and Commerci
Slide 5: 2007 Strategic Highlights
9 2007 Strategic Highlights Created an over $1.4 billion medical technology business with acquisition of Arrow International Strengthened portfolio through bolt-on acquisitions Specialized Medical Devices Southern Wire Corporation Nordisk Aviation Products Divested Components Business in Aerospace w
Slide 6: Teleflex Portfolio Transformation
11 Teleflex Portfolio Transformation 2008E Segment OP Medical over 75% Source = 2006 data per SEC filings 2008E Revenues Medical over 60%
Slide 7: 2008 Medical Segment Outlook
13 2008 Medical Segment Outlook Full year impact of Arrow acquisition Mid single digit core growth Sales growth driven by: Arrow acquisition and critical care product lines International markets Improvements in OEM business Restructuring and related costs Segment operating margins reach 20% range du
Slide 8: 2008 Aerospace Segment Outlook
15 2008 Aerospace Segment Outlook Full year impact of Nordisk acquisition Core growth relatively flat resulting from platform transition 747-4 to 747-8 A 380 delays impact 747-4 conversions Supplier for new Airbus platforms for '09 and beyond Repairs growth steady, R&D investment for new engine repa
Slide 9: 2008 Commercial Segment Outlook
17 2008 Commercial Segment Outlook Commercial businesses remaining: Marine, Rigging Services and Power Systems Sales growth in Marine and Rigging Services offset by decline in Power Systems products from NA truck market Marine aftermarket, international and new products fuel growth Rigging Services
Slide 10: Kevin K. Gordon, Executive Vice President and Chief Financial Officer
19 Kevin K. Gordon Executive Vice President and Chief Financial Officer
Slide 11: 2007 Fourth Quarter Activities
21 2007 Fourth Quarter Activities Executing on Arrow International integration activities Accelerating regulatory compliance program to respond to Arrow FDA corporate warning letter Executing on Nordisk Aviation Products integration activities Fourth Quarter 2007 Special Charges: Inventory step-up I
Slide 12: 2008 Outlook Financial Goals
23 Revenue of over $2.4 billion Medical up due to Arrow acquisition and mid-single digit core growth Aerospace increases with acquisition Commercial relatively flat Overall segment operating margins in the mid teens for the year compared with ~11% in 2006 Operating cash flow of ~$250 million1 2008 O
Slide 13: 2008 Outlook Assumptions
25 Effective tax rate: 27% to 29% Capex: $60 - $70 million Depreciation & Amortization expense: ~$120 million Repayment of debt continues to drive reduced interest expense Total debt outstanding as of December 31, 2007 of ~$1.7 billion 2008 Outlook Assumptions
Slide 14: Arrow Integration Costs & Synergies
27 Run-rate annual pre-tax synergies of $70 - $75 million by 2010 Increased estimate of pre-tax synergies of $33 - $37 million in 2008 Integration costs of $70 - $80 million 2007 thru 2010 $35 - $45 million expense $25 - $30 million restructuring expense $10 - $15 million operating expense ~$35 mill
Slide 15: 2008 Outlook
29 Low High Earnings per share from continuing operations including special charges $3.03 $3.30 Addback special charges1 $0.67 $0.60 Earnings per share from continuing operations before special charges $3.70 $3.90 2008 Outlook Operating cash flow of ~$250 million2 1 = includes restructuring, integra
Slide 16: Jeff Black, Chairman and Chief Executive Officer
31 Jeff Black Chairman and Chief Executive Officer
Slide 17: Summary
33 Summary Redefined portfolio to increase margins, reduce cyclicality and market risk Achievable goals and targets for integration activity Sound working capital management and cash flow generation Capitalize on global presence, strong brands, established customer base and aftermarket or service op
Slide 18: Question and Answer Session
Question and Answer Session