Slide 1: Third Quarter 2015 Earnings Conference Call
1 TELEFLEX INCORPORATED THIRD QUARTER 2015 EARNINGS CONFERENCE CALL 1 Exhibit 99.2
Slide 2: Conference Call Logistics
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 53575576 2
Slide 3: Introductions
Introductions Benson Smith Chairman, President and CEO Liam Kelly Executive Vice President and COO 3 Jake Elguicze Treasurer and Vice President of Investor Relations Thomas Powell Executive Vice President and CFO
Slide 4: Forward-Looking Statements/Non-GAAP Financial Measures
Forward-Looking Statements/Non-GAAP Financial Measures This presentation and our discussion contain forward-looking information and statements including, but not limited to, forecasted 2015 constant currency revenue growth, adjusted gross and operating margins and adjusted earnings per share; and ot
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY 5
Slide 6: Executive Summary
Executive Summary Third quarter revenue of $443.7 million • Down 2.9% vs. prior year period on an as-reported basis • Up 4.2% vs. prior year period on a constant currency basis Adjusted EPS of $1.60, up 1.9% vs. prior year period • Adjusted earnings per share reflects unfavorable impact from foreign
Slide 7: Third Quarter Product Line and Geographic Revenue Review
7 THIRD QUARTER PRODUCT LINE AND GEOGRAPHIC REVENUE REVIEW 7
Slide 8: Third Quarter Highlights
Third Quarter Highlights Third quarter 2015 constant currency revenue growth of 4.2% • Acquisitions and distributor conversions contribute 160 bps of constant currency revenue growth • Sales volume of existing products contribute 115 bps of constant currency growth, of which, Vidacare products contr
Slide 9: Segment Revenue Review Q3'15
Segment Revenue Review Q3’15 Vascular N.A.: $82.6 million, up 8.6% Anesthesia N.A.: $47.6 million, up 1.6% Surgical N.A.: $39.6 million, up 11.1% EMEA: $120.9 million, up 1.1% Asia: $61.9 million, up 11.3% OEM: $39.0 million, up 2.5% All Other: $52.1 million, down 2.7% Note: Increases and decreases
Slide 10: Group Purchasing Organization and IDN Review
Group Purchasing Organization and IDN Review Group Purchasing Organization Update • 2 new agreements • 8 renewed agreements IDN Update • 2 renewed agreements 10 Track record of expansion of contractual agreements continues in Q3’15
Slide 11: Third Quarter – Product Introductions & Regulatory Approvals
11 THIRD QUARTER – PRODUCT INTRODUCTIONS & REGULATORY APPROVALS 11
Slide 12: ARROW Triple Lumen Pressure Injectable Acute Hemodialysis Catheter
PRODUCT DECSRIPTION 12 ARROW® Triple Lumen Pressure Injectable Acute Hemodialysis Catheter Product Introductions & Regulatory Approvals Teleflex recently received FDA 510(k) clearance to market the ARROW® Triple Lumen Pressure Injectable Acute Hemodialysis Catheter. The ARROW® Triple Lumen Pressure
Slide 13: Weck Efx Shield Fascial Closure System
Weck® Efx Shield™ Fascial Closure System Selected as a 2015 Innovation of the Year by Society of Laparoendoscopic Surgeons. Weck® Efx™ Fascial Closure Products are designed to allow surgeons to provide fast, safe closure of laparoscopic port sites with a range of options that suit their procedural a
Slide 14: Acquisition Update
14 ACQUISITION UPDATE 14
Slide 15: Acquisition Update
Acquisition Update Acquired certain assets of Atsina Surgical, LLC • Atsina, a portfolio company of Option3 and Research Corporation Technologies, is a developer of surgical clips • Proprietary angular element, or elbow, to secure, and then pull, tissue proximally during closure • Complements Telefl
Slide 16: Third Quarter 2015 Financial Review
16 THIRD QUARTER 2015 FINANCIAL REVIEW 16
Slide 17: Financial Results
Financial Results Revenue of $443.7 million • Down 2.9% vs. prior year period on an as-reported basis • Up 4.2% vs. prior year period on a constant currency basis Adjusted gross margin of 52.0%, down 10bps vs. prior year period • Product recalls / quality issues and foreign exchange impact adjusted
Slide 18: 2015 Financial Outlook
18 2015 FINANCIAL OUTLOOK 18
Slide 19: 2015 Financial Outlook
19 Constant currency revenue growth narrowed from a range of 4% to 6% to a range of 4.7% to 5.5% Adjusted Gross margin lowered from a previous range of 53% to 54% to a range of 52.5% to 53.0% • Projected increase of 100 bps to 150 bps vs. prior year Adjusted operating margin lowered from a previous
Slide 20: Question & Answer
20 QUESTION & ANSWER 20
Slide 21: Appendices
21 APPENDICES 21
Slide 22: Appendix A – Reconciliation of Constant Currency Revenue Growth
Appendix A – Reconciliation of Constant Currency Revenue Growth Dollars in Millions 22 September 27, 2015 September 28, 2014 Constant Currency Currency Total Vascular North America 82.6$ 76.7$ 8.6% (0.8%) 7.8% Anesthesia North America 47.6 47.2 1.6% (0.7%) 0.9% Surgical North America 39.6 36.1 11.1%
Slide 23: Appendix B – Reconciliation of Revenue Growth
Appendix B – Reconciliation of Revenue Growth Dollars in Millions 23 1: amount is comprised of incremental price on existing products and the sale of new products of $3.2 million and $4.1 million, respectively, both of which are a result of the businesses acquired. % Basis Points Three Months Ended
Slide 24: Appendix C – Reconciliation of Adjusted Gross Profit and Margin
24 Appendix C – Reconciliation of Adjusted Gross Profit and Margin September 27, 2015 September 28, 2014 Teleflex gross profit as-reported 228,212$ 236,167$ Teleflex gross margin as-reported 51.4% 51.7% Losses, other charges and charge reversals (A) 2,328 1,896 Adjusted Teleflex gross profit 230,540
Slide 25: Appendix D – Reconciliation of Adjusted Operating Profit and Margin
25 Appendix D – Reconciliation of Adjusted Operating Profit and Margin September 27, 2015 September 28, 2014 Teleflex income from continuing operations before interest and taxes 76,550$ 81,935$ Teleflex income from continuing operations before interest and taxes margin 17.3% 17.9% Restructuring and
Slide 26: Appendix E – Reconciliation of Adjusted EPS, Q3 2015
Appendix E – Reconciliation of Adjusted EPS from Continuing Operations Quarter Ended – September 27, 2015 Dollars in millions, except per share data 26 Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges (Gain)
Slide 27: Appendix F – Reconciliation of Adjusted EPS, Q3 2014
Appendix F – Reconciliation of Adjusted EPS from Continuing Operations Quarter Ended – September 28, 2014 Dollars in millions, except per share data 27 Cost of goods sold Selling, general and administrative expenses Research and development expenses Restructuring and other impairment charges Interes
Slide 28: Appendix G – Reconciliation of Adjusted Tax Rate
28 Appendix G – Reconciliation of Adjusted Tax Rate Dollars in Thousands Three Months Ended September 27, 2015 Income from continuing operations before taxes Taxes on income from continuing operations Tax rate GAAP basis $62,374 $803 1.3% Restructuring and impairment charges 660 252 Losses, other ch
Slide 29: Appendix H – Reconciliation of 2015 Constant Currency Revenue Growth Guidance
Appendix H – Reconciliation of 2015 Constant Currency Revenue Growth Guidance 29 Low High Forecasted GAAP Revenue Growth (2.3%) (1.5%) Estimated impact of foreign currency fluctuations 7.0% 7.0% Forecasted Constant Currency Revenue Growth 4.7% 5.5%
Slide 30: Appendix I – Reconciliation of 2015 Adjusted Gross Margin Guidance
Appendix I – Reconciliation of 2015 Adjusted Gross Margin Guidance 30 Note: In 2015, losses, other charges and charge reversals relate to expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014. Low High GAAP Gross Margin 51.95% 52.35% Losses, other charg
Slide 31: Appendix J – Reconciliation of 2015 Adjusted Operating Margin Guidance
Appendix J – Reconciliation of 2015 Adjusted Operating Margin Guidance 31 Note: In 2015, losses, other charges and charge reversals include expenses associated with the Restructuring Plan approved by the Board of Directors on April 28, 2014; acquisition and integration costs, and charges related to
Slide 32: Appendix K – Reconciliation of 2015 Adjusted Earnings per Share Guidance
Appendix K – Reconciliation of 2015 Adjusted Earnings per Share Guidance 32 Low High Diluted earnings per share attributable to common shareholders $4.53 $4.63 Restructuring, impairment charges and special items, net of tax $0.60 $0.60 Intangible amortization expense, net of tax $0.90 $0.90 Amortiza