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Teleflex Incorporated Investor Presentation November 2015

CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

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Page 1: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

Teleflex Incorporated Investor Presentation

November 2015

Page 2: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

2 Important Information

This presentation and our discussion contain forward-looking information and statements, including, but not limited to, our financial goals with respect to revenue, gross profit and operating profit growth; our strategy with respect to increasing our market share; our strategy with respect to improving our operating efficiencies; expectations with respect to the completion of actions under our 2014 manufacturing footprint realignment plan (the “2014 Plan”) and the timing for realizing 2014 Plan-related savings; expectations with respect to the completion of actions under our 2015 restructuring initiatives (the “2015 Plan”) and the timing for realizing 2015 Plan-related savings; and other matters which inherently involve risks and uncertainties which could cause actual results to differ from those projected or implied in the forward–looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including those risks and uncertainties discussed in our SEC filings, including our most recent Annual Report on Form 10-K. The forward-looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date made. Other than as required by applicable law, we do not intend, and do not assume any obligation, to update these forward-looking statements.

Effective April 1, 2015, we realigned our operating segments in connection with the reorganization of certain of our businesses. Specifically, our Anesthesia/Respiratory North America operating segment was split into two operating segments, Anesthesia North America and Respiratory North America. Additionally, the businesses comprising our Specialty operating segment (which was not a reportable segment and, therefore, was included in the "All other" category in the Company's presentation of segment information) were transferred to the Anesthesia North America, Vascular North America and Respiratory North America operating segments. As a result of the operating segment changes described above, we currently have the following six reportable operating segments: Vascular North America, Anesthesia North America, Surgical North America, EMEA, Asia and OEM. In connection with our presentation of segment information, we will continue to present certain operating segments, including, among others, the Respiratory North America operating segment, in the “All other” category. All prior comparative periods have been restated to reflect these changes.

This presentation reflects continuing operations.

Forward Looking Statements

Segment Information/Additional Notes

Page 3: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

3 Our Company

• NYSE listed – TFX

• Global provider of medical technology

products that enhance clinical benefits,

improve patient and provider safety and

reduce procedure costs

• Serving healthcare providers worldwide

through a combination of our direct sales

force and distributors

• Employees: 12,000+ organized into regions,

divisions and global functions

• Leading market positions with established

global brands

• LTM 9/27/15 revenue of $1,801 million

Not dependent upon any one product, end-market or procedure

Business Overview Revenue by Market1

86%

6%

8%

Hospitals and Healthcare Providers

Home Care

Medical Device Manufacturers

1 = per 2014 Form 10K

Page 4: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

4 Our Segments

Vascular North America

• Our vascular access products facilitate a variety of critical care

therapies, including the administration of intravenous

medications and other therapies and the measurement of blood

pressure and taking of blood samples through a single puncture

site

• We believe that our vascular product portfolio offers the opportunity

to reduce injuries to the healthcare provider, expedite placement

of a central venous catheter, reduce patient exposure to x-rays,

expedite infusion of medication and reduce the risk of microbial

colonization and thrombus accumulation on catheter surfaces

• For the twelve months ended September 27 2015, our Vascular

North America segment represented $327.0 million, or

approximately 18% of net revenues

18%

10%

9%

30%

13%

8%

12%

Vascular North America Anesthesia North America Surgical North America EMEA Asia OEM All Other

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5 Our Segments

Anesthesia North America

• Our airway management products are designed to help

eliminate airway related complications and improve

procedural efficiencies for patients in surgical, critical care

and emergency settings

• Our pain management products are designed to provide

pain relief during a broad range of surgical and obstetric

procedures, thereby helping clinicians better manage each

patient‘s individual pain while reducing complications and

associated costs

• For the twelve months ended September 27, 2015, our Anesthesia

North America segment represented $186.4 million, or

approximately 10% of net revenues

Our anesthesia products include airway and pain management products

18%

10%

9%

30%

13%

8%

12%

Vascular North America Anesthesia North America

Surgical North America EMEA

Asia OEM

All Other

Page 6: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

6 Our Segments

Surgical North America

• Our surgical products include:

• Ligation and closure products, including clips and sutures

used in a variety of surgical procedures

• Access ports used in minimally invasive surgical

procedures, including robotic surgery

• Fluid management products used for chest drainage

• Reusable hand-held instruments for general and specialty

surgical procedures

• For the twelve months ended September 27, 2015, our Surgical

North America segment represented $159.0 million, or

approximately 9% of net revenues

• Microlaparoscopic products designed to

enhance surgeons‘ ability to perform scarless

surgery while producing better outcomes

18%

10%

9%

30%

13%

8%

12%

Vascular North America Anesthesia North America

Surgical North America EMEA

Asia OEM

All Other

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7 Our Segments

EMEA

• Our EMEA segment designs, manufactures and distributes medical

devices primarily used in critical care, surgical applications and

cardiac care

• For the twelve months ended September 27, 2015, our EMEA

segment represented $526.3 million, or approximately 30% of net

revenues

Asia

• Like our EMEA segment, our Asia segment designs, manufactures

and distributes medical devices primarily used in critical care,

surgical applications and cardiac care

• For the twelve months ended September 27, 2015, our Asia

segment represented $236.0 million, or approximately 13% of net

revenues

18%

10%

9%

30%

13%

8%

12%

Vascular North America Anesthesia North America

Surgical North America EMEA

Asia OEM All Other

18%

10%

9%

30%

13%

8%

12%

Vascular North America Anesthesia North America Surgical North America EMEA Asia OEM All Other

Page 8: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

8 Our Segments

OEM

• Our OEM segment designs, manufactures and supplies devices

and instruments for other medical device manufacturers

• Provides custom-engineered extrusions, diagnostic and

interventional catheters, sheath / dilator sets and kits, sutures,

performance fibers, and bioresorbable resins and fibers

• For the twelve months ended September 27, 2015, our OEM

segment represented $146.6 million, or approximately 8% of net

revenues

18%

10%

9%

30%

13%

8%

12%

Vascular North America Anesthesia North America Surgical North America EMEA Asia OEM All Other

Page 9: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

9 Our Strategy

Capitalize on Teleflex’s scope and size

Take advantage of unique Teleflex opportunities

Position Teleflex to succeed in the healthcare environment of the future

Increased utilization

Increased economic pressure

Footprint consolidation

Distributor to direct conversions

Page 10: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

10 Continue To Achieve Consistent, Sustainable and Profitable Growth

Page 11: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

11 Maintain Acute Focus on Research and Development

• Research and development initiatives are focused on developing new, innovative products for

existing and new therapeutic applications, as well as enhancements to, and line extensions

of, existing products

• Teleflex introduced 16 new products and line extensions during 2014 and 43 new products

and line extensions since 2013

• Portfolio of existing products and pipeline of potential new products consist primarily of Class

I and Class II devices, which require 510(k) clearance by the FDA for sale in the United

States

Page 12: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

12 Acquisition Approach

Fits into our existing strategic business unit franchises and call points

Product provides a superior clinical benefit to existing alternatives

Provides a cost benefit to a hospital

Strong IP and patent protection

Long product life cycles

Page 13: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

13 Rationalization

2014 Manufacturing Footprint Realignment Plan

• Plan developed in response to continuing cost pressures in the healthcare industry

and designed to enhance our competitive position and improve longer-term profitability

• Involves consolidation of operations and a related workforce reduction

• Expect to be substantially complete by the end of 2017

• Currently expect to realize plan-related savings beginning in 2015

2015 Restructuring Initiatives

• Initiated programs associated with the reorganization of certain businesses and consolidation of certain facilities in North America

• Expect to be substantially complete by the end of 2017

• Currently expect to realize plan-related savings beginning in 2015

Page 14: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

14 Key Investment Highlights

Well-positioned to take advantage of favorable industry dynamics

Diversified, global medical technology company

Leading market positions with established global brands

Diversified customer and supplier base

Strong cash flow generation and proven history of deleveraging

Experienced management team

Page 15: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

THANK YOU

Page 16: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

APPENDIX

Page 17: CLICK TO ADD TITLE - The Global Investment Banking Firm · devices primarily used ... of favorable industry dynamics Diversified, global medical technology company Leading market

17 September 27, 2015 LTM Revenue Data

Dollars in Thousands

2014 Revenue: 1,839,832$

Less - Q1'14 Revenue: 438,546$

Less - Q2'14 Revenue: 468,105$

Less - Q3'14 Revenue: 457,173$

Add - Q1'15 Revenue: 429,430$

Add - Q2'15 Revenue: 452,045$

Add - Q3'15 Revenue: 443,714$

June 28, 2015 LTM Revenue: 1,801,197$

2014 Revenue Less: Q1'14 Revenue Less: Q2'14 Revenue Less: Q3'14 Revenue Add: Q1'15 Revenue Add: Q2'15 Revenue Add: Q3'15 Revenue September 27, 2015 LTM Revenue September 27, 2015 LTM Revenue - %

Vascular North America 311,163$ 74,859$ 77,203$ 76,662$ 80,766$ 81,165$ 82,675$ 327,045$ 18.16%

Anesthesia North America 183,909$ 43,252$ 45,730$ 47,203$ 45,449$ 45,579$ 47,628$ 186,380$ 10.35%

Surgical North America 150,121$ 35,231$ 37,969$ 36,127$ 38,059$ 40,520$ 39,591$ 158,964$ 8.83%

EMEA 593,065$ 150,245$ 154,670$ 141,146$ 129,282$ 129,132$ 120,854$ 526,272$ 29.22%

Asia 237,696$ 49,602$ 62,539$ 62,035$ 48,529$ 62,042$ 61,935$ 236,026$ 13.10%

OEM 143,966$ 33,182$ 36,610$ 39,174$ 34,715$ 37,918$ 38,959$ 146,592$ 8.14%

All Other 219,912$ 52,175$ 53,384$ 54,826$ 52,630$ 55,689$ 52,072$ 219,918$ 12.21%

Total 1,839,832$ 438,546$ 468,105$ 457,173$ 429,430$ 452,045$ 443,714$ 1,801,197$ 100.00%

Source: Quarterly and Annual 2014 information per Form 8K filed on July 30, 2015; Quarterly 2015 information per Form 10Q filed on September 27, 2015.