Slide 1: Delivering sustainable double-digit earnings growth
26 February 2025 Delivering sustainable double-digit earnings growth 2024 Annual results 1
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed before, during or after the Presentation meeting. This information, which do
Slide 3: Hosts
Hosts Karim Bitar Jonny Mason Chief Executive Officer Chief Financial Officer
Slide 4: Overview
Overview 4
Slide 5: Strong delivery in 2024 and positive outlook
Strong delivery in 2024 and positive outlook Strategy is delivering broad-based growth Further significant operating profit margin expansion Double-digit EPS & free cash flow growth Strongest-ever new product pipeline Reiterating our 2025 & medium-term guidance 5
Slide 6: Our journey
Our journey Vision Pioneering trusted medical solutions to improve the lives we touch Promise: forever caring FISBE Operating People & Reward & strategy model culture incentives Our values 6
Slide 7: Successfully pivoted to sustainable and profitable growth
Successfully pivoted to sustainable and profitable growth Organic revenue R&D investment Operating margin1 Momentum growth Low Limited 2019 2.3% c.$50m 19.4% None and ageing product portfolio 3rd year increase Double-digit EPS 2024 6 years accelerating Increased 2x to 21.2% and cash flow 7.7% broad-
Slide 8: Convatec is positioned to deliver double-digit CAGR in EPS and FCF to equity
Convatec is positioned to deliver double-digit CAGR in EPS and FCF to equity Leading positions in structurally growing, recurring revenue, chronic care categories Targeting fastest growing segments by developing innovative new products Turnaround complete, strong foundations and momentum 8
Slide 9: Financial review FY24
Financial review FY24 9
Slide 10: 2024: strong financial performance
2024: strong financial performance Organic revenue growth1 +7.7% FY 23: 7.2% Broad-based growth across all four categories +350bps expansion since 2021 Operating margin2 expansion +100 bps 21.2% vs 20.2% +160 bps CC (+390bps at constant currency) Earnings per share3 growth +13.7% 15.2₡ vs 13.4₡ Firs
Slide 11: Successfully pivoted to sustainable and profitable growth
Successfully pivoted to sustainable and profitable growth Organic revenue growth1 Operating profit margin2 21.5% 21.0% 20.5% 21.2% 7.7% 20.0% 7.2% 19.5% 20.2% 5.6% 19.0% 19.4% 19.5% 5.3% 18.5% 4.2% 18.0% 18.5% 2.3% 17.5% 17.0% 17.7% 16.5% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 D
Slide 12: Broad-based growth across all categories
Broad-based growth across all categories Group Organic1 7.4% 5.3% 8.3% 11.2% 7.7% Constant currency 7.4% 5.6% 9.8% 11.2% 7.6% 42 2,300 (10) (16) 45 ($m) 2,200 34 52 2,288 2,289 +6.9% 2,100 2,142 2,000 2023 Advanced Ostomy Continence Infusion Hospital Care FX 2024 Wound Care Care Care (exited) Care 1
Slide 13: AWC: good growth, led by Aquacel & InnovaMatrix; OC: new launch underpins momentum
AWC: good growth, led by Aquacel® & InnovaMatrix® OC: new launch underpins improving momentum Organic 0.5% -2.7% 9.2% 6.8% 9.5% 7.4% • Strong performance in Aquacel® Ag+ ExtraTM, Advanced growth1 encouraging ConvaFoamTM launch which will Wound Care continue in FY25 • InnovaMatrix® sales up 34%, with
Slide 14: CC: strong growth driven by US; IC: diversification driving double-digit growth
CC: strong growth driven by US performance IC: diversification driving double-digit growth Organic 5.4% 5.4% 3.4% 5.1% 6.5% 8.3% growth1 Continence • Strong US performance, volume and share Care growth, supported by excellent customer service • Increasing proportion of Convatec and 501 Total 457 hyd
Slide 15: Operating margin up 100 bps
Operating margin1 up 100 bps +160 bps +100 bps 0.5% 0.9% 21.8% -0.6% 0.4% -1.6% 21.2% 0.6% 0.8% 20.2% FY Price Mix Operations COGS Commercial G&A FY 2024 FX FY 2023 productivity inflation productivity efficiency @ CC 2024 1. - Adjusted 15
Slide 16: Pivoted to double-digit adjusted EPS growth
Pivoted to double-digit adjusted EPS growth Adjusted P&L Adjusted diluted earnings per share YoY +13.7% 2023 2024 15.5 15.2 Operating profit $432m $485m 15.0 +12.4% 14.5 14.0 Financing & other $(75)m $(74)m 13.4 $ cents 13.5 12.6 13.0 Tax $(83)m $(99)m 12.5 12.0 Net profit $274m $312m +14.0% 11.5 11
Slide 17: Strong cash generation enables investment for growth and strengthened balance sheet
Strong cash generation enables investment for growth and strengthened balance sheet 700 12% growth YoY 7 93% 600 Operating cash 122 conversion1 500 (FY 23: 84%) 97% $20m 22 20 Equity cash improved working conversion2 400 79 capital vs (FY 23: 83%) 2023 52 300 591 598 Leverage 475 453 453 141 lower a
Slide 18: FY25 guidance
FY25 guidance • Continued broad-based growth excluding InnovaMatrix® AWC: MSD ex-IMX (which represented 96% of Group FY24 sales) Organic sales growth OC: MSD ex-InnovaMatrix ® 5-7% CC: M-to-HSD • Based on the implementation of LCDs on 13 April, we expect a reduction of InnovaMatrix revenue of IC: HS
Slide 19: +350 bps margin expansion delivered in 2021-24
+350 bps margin1 expansion delivered in 2021-24 2021 to 2024 adjusted operating profit margin1 bridge 2.3% 4.1% 4.3% 21.6% 21.2% 2.1% -0.4% 17.7% -7.3% -1.6% FY21 Price Mix Operations COGS R&D and G&A FY24 @ CC FX FY 24 @ productivity inflation commercial efficiency actual FX net investment 1. Adjus
Slide 20: Medium term: on track to deliver mid-20s adjusted operating profit margin
Medium term: on track to deliver mid-20s adjusted operating profit margin 2024 to 2026-27 adjusted operating margin1 bridge 24-26% 21.2% 2024 Price / Mix Operations Operations COGS G&A / 2026/7 productivity leverage inflation other efficiency 1. Assumes the LCD s are implemented in April 2025, and z
Slide 21: Financial summary
Financial summary 2024: strong financial performance delivered - sales, margin, earnings and cash each ahead of expectations 2025: expect another year of delivery, including further margin expansion and double-digit EPS, despite InnovaMatrix ® headwinds Medium-term: well-positioned to deliver sustai
Slide 22: Strategic update
Strategic update 22
Slide 23: AWC – Growth across key segments, driven by innovative new product pipeline
AWC – Growth across key segments, driven by innovative new product pipeline Single-use Antimicrobials Foam Biologics1 negative pressure CAGR CAGR CAGR CAGR Segment (‘24-’29) (‘24-’29) (‘25-’29) (‘24-’29) size $1.1bn c.6% $2.1bn c.6% $3.0bn c.6% $0.4bn c.10% Products ConvaFiber Commercial Sustain lea
Slide 24: ConvaNiox: our break-through solution for hard to heal wounds
ConvaNioxTM: our break-through solution for hard to heal wounds 96% more infected 3x faster wound 60% more ulcers healed ulcers healed area reduction within 12 weeks treatment within 12 weeks treatment within 12 weeks treatment 45% ConvaNioxTM 40% 40% 100 35% 90 Percentage area reduction 35% 30% 80
Slide 25: OC - Successful Esteem Body launch and improved commercial execution
OC - Successful Esteem BodyTM launch and improved commercial execution Convex products Flat products Accessories CAGR (‘24-’29) CAGR CAGR Segment Soft $0.5bn c.8% (‘24-’29) (‘24-’29) size $1.3bn $0.6bn Rigid $0.7bn c.3% c.2% c.7% Products * Service capability Commercial opportunity New and different
Slide 26: CC – Bolstering our US leadership, driving int'l expansion
CC – Bolstering our US leadership, driving int’l expansion & targeting fast growth segments US Europe Global Emerging Markets $0.8bn* CAGR (‘24-’29) $1.2bn* CAGR (‘24-’29) CAGR Segment Compact $0.1bn c.7% Compact $0.6bn c.7% (‘24-’29) size $0.3bn Standard $0.4bn c.4% Standard $0.4bn c.4% c.5% Produc
Slide 27: IC (diabetes) – Diversifying customer base
IC (diabetes) – Diversifying customer base Insulin pump penetration is accelerating CAGR ‘20-’23 Pumps c.6% People with Users of intensive 11% diabetes insulin treatment Multiple Large opportunity for c.350m c.10% (35m) Daily 94% increased pump penetration Injection 0% CAGR ‘20-’23 ‘23-’29 Pump pene
Slide 28: IC (non-diabetes) – very strong growth in new therapies
IC (non-diabetes) – very strong growth in new therapies Global growth drivers - subcutaneous infusion care Revenue growth, CAGR • 10m patients and 8% market growth¹ Parkinson’s • AbbVie and Mitsubishi Tanabe disease targeting advanced patients • 7.5m patients² and 8% market growth³ > 10% of IC reven
Slide 29: Innovate – strong and growing pipeline
Innovate – strong and growing pipeline 2022-2024 2025 2026 2027 InnovaMatrix® US Outside US 780G MioAdvance Extended Wear Globally ConvaFoamTM US Europe Global Emerging Markets Infusion set for Beta Bionics iLet pump US AbbVie Parkinson’s Japan Europe US GentleCathTM Air for Women 2.0 Europe & US Gl
Slide 30: Summary and outlook
Summary and outlook FY24 – pivoted to sustainable and profitable growth • Sixth year of accelerating organic revenue growth • Third year of further strong operating margin expansion2 • Double-digit EPS1 and free cash flow to equity3 growth 2025 guidance reiterated • Organic revenue growth of 5-7% in
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Slide 32: Appendix
Appendix 32
Slide 33: Majority of revenue is recurring – supporting patients with chronic conditions
Majority of revenue is recurring – supporting patients with chronic conditions Convatec FY ‘24 revenue split Underlying conditions Chronic Cardiovascular disease c.94% AWC Diabetes 6% Bowel & bladder cancer OC Crohn's disease Multiple sclerosis CC Spinal cord injuries Diabetes IC Parkinson’s 33
Slide 34: Convatec's FISBE strategy is delivering
Convatec’s FISBE strategy is delivering Focus Innovate Simplify Build Execute 8 launches Plant network Pricing Sales force >90% optimisation +60 bps Targeting chronic – recurring 2022-24 benefit to key accounts Eurotec & Herlev revenue 8 launches gross margin sites closed c.70%2 2025-27 NPS1 > 80 G&
Slide 35: Our model is designed to deliver double-digit CAGR in EPS & FCF to equity
Our model is designed to deliver double-digit CAGR in EPS2 & FCF to equity3 Medium-term targets Opportunity Medium-term outcome Sustainable Expanding operating Potential M&A to Double-digit EPS2 and FCF top-line growth profit1 margin enhance growth to equity3 CAGR 5-7%4 Strengthening organic growth
Slide 36: Group P&L - H1 / H2 split
1. Reported revenue and organic revenue YoY growth 2. Adjusted operating profit, margin and YoY growth Group P&L - H1 / H2 split 3. Net interest and adjusted other non-operating income 4. Adjusted tax charge and tax rate 5. Adjusted and diluted EPS in US dollar cents, and YoY growth 2023 2024 Italic
Slide 37: Investing to drive future growth and resilience
Investing to drive future growth and resilience Capex Key project - examples • Digital: omnichannel, improvements to supply chain hub $129m $122m • Automation: Further automation for IC in Osted and Reynosa Digital • Innovation: ConvaNioxTM and ConvaVacTM Automation • Capacity: AWC (Deeside) and IC
Slide 38: Adjusting items mainly non-cash
Adjusting items mainly non-cash Amortisation will reduce substantially in 2026 P&L Cash ($m) Commentary 2023 2024 2023 2024 Fundamental • Transformation related – e.g factory closure 22.8 22.3 10.0 18.3 restructuring • One-time material restructuring • Hospital care exit • Fair value movement of con
Slide 39: InnovaMatrix – outlook
InnovaMatrix® – outlook • Current implementation date would remove coverage LCD 13 April for DFU/VLU • 34% sales growth YoY InnovaMatrix® $99m • Increased Group organic growth by c.0.9% points revenue in 2024 Proportion of sales • Proportion has increased from 20% in FY23 outside the LCDs c.25% • 70
Slide 40: Update on US catheter code changes
Update on US catheter code changes - Attractive opportunity Market leader Vertically-integrated leader in the US: #1 in service, #2 in manufacturing Hydrophilic catheters >60% of Convatec US sales; market penetration c.40% Hydrophilic growing Expect increasing hydrophilic penetration in market and C