Slides
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Strong start to the year, on track to hit our targets AGM trading update for the four months ended 30 April 2025 22 May 2025
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Disclaimer For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, a ny question or answer session and any written or oral material discussed or distributed before, during or after the Presentation meeting. This information, which does not purport to be comprehensive, h as not been verified by or on behalf of the Group. References to Convatec or the Company are to Convatec Group Plc and references to the Group are to Convatec Group Plc and its subsidiaries. This Presentation does not constitute an offer, invitation or recommendation in respect of the sale or purchase of any of the Company’s securities and should not be construed as a prospectus or offering document, nor should any recipients construe the Presentation as legal, tax, regulatory, financial or accounting or investment advice and recipients are urged to consult with their own advisers in relation to such matters. The recipient must make its own independent assessment and such investigations as it deems necessary. This Presentation includes certain forward -looking statements with respect to the operations, performance and financial conditio n of the Group. Forward-looking statements are generally identified by the use of terms such as “believes”, “estimates”, “aims” “anticipates”, “expects”, “intends”, “plans”, “predicts”, “may”, “will”, “could”, “targets”, “continues”, or their negatives or other similar expressions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies that are difficult to predict and many of which are outside the Grou p’s control. As such, no assurance can be given that such future results, including guidance provided by the Group, will be achieved. Forward -looking statements are not guarantees of future performance and such uncertainties and contingencies, including the factors set out in the “Principal Risks” section of the Strategic Report in our Annual Report and Accounts, could cause the actual results of op erations, financial condition and liquidity, and the development of the industry in which the Group operates to differ materially from the position expressed or implied in the forward -looking statements set out in this Presentation. Past performance of the Group cannot be relied on as a guide to future performance. Forward-looking statements are based only on knowledge and information available to the Group at the date of preparation of this document and speak only as at the date of this Presentation. The Group and its directors, officers, employees, agents, affiliates and advisers expressly disclaim any obligations to update any forw ard-looking statements (except to the extent required by applicable law or regulation). The industry and market data contained in this Presentation has come from third party sources and from the Company's own inte rnal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such sources, research and estimates are reasonable and reliable, they have not been independently verified and are subject to change without notice. Accordingly, reliance should not be placed on any of the ind ustry or market data contained in this Presentation. The Presentation contains non-IFRS financial information which Convatec’s management believes is valuable in understanding the p erformance of the Convatec Group. However, non-IFRS information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by oth er companies. Although these measures are important in the assessment and management of Convatec Group’s business, they should not be viewed in isolation or as a replacement for, but rather as co mplementary to, the comparable IFRS measures. The non-IFRS measures are explained and reconciled to the most directly comparable financial measure prepared in accordance with IFRS in the Financial Review and in the results statement dated 26 February 2025. 2
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Host Jonny Mason Chief Financial Officer 3
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Broad-based growth across all categories 1. Organic growth presents YoY growth at constant currency adjusted for acquisitions 2. Excluding InnovaMatrix, which represented c.3% of group revenue and decreased YoY 4 DD Strong demand for our infusion sets, particularly in new therapies. Positive phasing in the periodInfusion Care HSD M/HSD Strong performance in North America and in Europe. GC AirTM for Women performing wellContinence Care M/HSD MSD Growth led by North America & GEM, including new patient starts. Esteem Body performing wellOstomy Care MSD L/MSD2 Growth led by North America & GEM. Slower start in Europe but will accelerate through FY25 Advanced Wound Care excluding InnovaMatrix® MSD2 6.7%2 Strong start and on track to deliver targets. Inc. InnovaMatrix®2 organic revenue growth1 was 6.2% Organic revenue growth1 excluding InnovaMatrix®2 5.5-7.0%2 FY25 guidance Jan-Apr 2025
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Update on InnovaMatrix® (c.3% Group revenue) 5 Postponement improves outlook FY25 InnovaMatrix® guidance Revenues of at least $75m • Revenue down YTD impacted by the uncertainty caused by the now-postponed LCDs • Developing sales outside DFU/VLU Clinical evidence Growing real world evidence; RCTs1 will report in 2026 • DFU & VLU RCTs are on track to report in 2026 • Focus on securing long-term Medicare coverage • We welcome the second postponement of the LCDs until 1 January 2026 • Uncertainty remains; engaged with key stakeholders Local Coverage Determinations 1. RCT = Randomised Controlled Trials
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Gaining share in US Europe launch underway GEM to follow Gaining share in US, Europe & GEM Gaining share in US & Europe Starting to launch in Europe in Q4 25 Strong growth in non - diabetes therapies inc. Abbvie Parkinson’s Strategic progress 6 Launches underway Scaling in new markets Driving simplification and productivity Global Quality & Operations Commercial G&A
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Tightened FY 25 guidance 7 1. Organic growth presents YoY growth at constant currency adjusted for acquisitions 2. Excluding InnovaMatrix, which represented c.3% of group revenue and decreased YoY 3. Adjusted and diluted 4. As defined in the Financial Review of the 2024 ARA Adjusted operating profit margin Earnings per share3 Equity cash conversion4 22.0-22.5% ≥10% ≥80% 5.5-7.0% • Further operations, commercial & G&A productivity improvements, partially offset by recent FX moves • Guidance includes any anticipated tariff costs • Adjusted net finance expense: $70-75m • Adjusted book tax rate: c.24% • Capex: $130-150m • Adjusting items similar to FY 2024 at c.$20m • Guidance for each category remains unchanged: • AWC: MSD excluding InnovaMatrix®; OC: MSD; CC: M/HSD; IC: HSD Organic revenue growth1 ex-InnovaMatrix®2 Previous 5-7% FY24: 7.7% Unchanged FY24: 21.2% Unchanged FY24: +14% Unchanged FY24: 97%
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Summary On-track to deliver medium-term targets • 5-7% organic revenue growth1,4 • Mid-20s% adjusted operating profit margin by 2026 or 20274 • Underpinned by productivity initiatives and our strongest-ever new product pipeline Strong start to 2025 • Broad-based growth across all categories; new product launches performing well • Some positive revenue phasing in the period in IC; will normalise through the year • Postponement of LCDs improves outlook for InnovaMatrix® Tightened FY25 financial guidance • 5.5-7.0% Group organic revenue growth1 excluding InnovaMatrix®2. InnovaMatrix® sales of at least $75m • 22.0-22.5% adjusted operating profit margin, including FX headwind3 and any tariff costs • Double-digit adjusted EPS growth 8 1. Organic growth presents YoY growth at constant currency adjusted for acquisitions 2. Excluding InnovaMatrix® , which represented c.3% of group revenue and decreased YoY. We expect at least $75m InnovaMatrix revenue in 2025 3. Based on current FX rates we anticipate an adjusted operating profit margin headwind of c. 20bps versus FY24
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10 Appendix
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11 6 years of acceleration 2.3% 4.2% 5.3% 5.6% 7.2% 7.7% 2019 2020 2021 2022 2023 2024 Organic revenue growth1 Earnings per share3Operating profit margin2 19.4% 18.5% 17.7% 19.5% 20.2% 21.2% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 2019 2020 2021 2022 2023 2024 11.7c 12.0c 13.0c 12.6c 13.4c 15.2c 10.0c 11.0c 12.0c 13.0c 14.0c 15.0c 2019 2020 2021 2022 2023 2024 +350bps in previous 3 years +14% in 2024 1. Organic revenue growth presents YoY growth at constant currency adjusted for the acquisitions in 2023/24 and residual revenue following the exit of hospital care and related sales which concluded in 2024 2. Adjusted 3. Adjusted and diluted 5-7% organic revenue growth1 Mid-20s % operating profit margin2 by 2026 or 2027 Double-digit EPS3 CAGR 11 Medium-term targets Strong track record of delivery