Slides
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1 KeyBanc Capital Markets Healthcare Forum March 19, 2025
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2 Disclosures > Any statement concerning Management’s expectation with respect to future results is a forward -looking statement based upon the b est information currently available to Management and assumptions Management believes are reasonable, but Management does not int end the statement to be a representation as to future results. > Future results are subject to risks and uncertainties, including the risk factors described in the Company’s filings with the Securities and Exchange Commission, which include those in the most recent Form 10 -K and subsequent filings. Actual results in the future may d iffer materially from Management’s current expectations. > These forward -looking statements, including statements about continuing health crises, pandemics and epidemics, such as the COVI D-19 pandemic, are made based upon our current expectations and we undertake no duty to update information provided in this presen tation. > This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting p rinciples ("GAAP"). These non -GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, f inancial measures calculated in accordance with GAAP. Our Management believes that the non -GAAP data provides useful supplemental information to management and investors regarding our performance and facilitates a more meaningful comparison of results of operations between current and prior periods. > Our non-GAAP financial measures include revenue presented on a constant currency basis, which uses the average exchange rate for revenues from the prior year applied to the current year results.
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3 We are a global company focused exclusively on providing IV therapy products and other core critical care products across the continuum of care Consumables – 44% | 52% Post JV Gravity sets, needlefree and specialty IV consumables, vascular access, sharps safety, oncology, and tracheostomy Hemodynamic monitoring systems, temperature management, respiratory care, and IV solutions Vital Care – 28% | 16% Post JV Large volume, syringe, and ambulatory pumps; dedicated consumables; software with EHR interoperability and services Systems – 28% | 33% Post JV ICU Medical: a Global Leader with Focus and Scale 1. Business unit mix percentages are based on non -GAAP revenues for the year ended December 31, 2024. Post JV figures exclude I V Solutions.
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4 ICU Medical at a Glance Strong Disposables Profile Geographic Revenue Mix Pro Forma Financial Overview Share Price (3/17/25) $149.21 Diluted Shares Outstanding 24.7 Million Diluted Equity Value $3.7 Billion Net Debt $1.3 Billion Enterprise Value $5.0 Billion Single-Use Consumables Hardware US & Canada OUS Infusion Therapy Oncology Vascular Access Tracheostomy IV Solutions $1.04 B $333 M Consumables Infusion Systems Vital Care Ambulatory Syringe Pumps LVP Infusion $652 M 2024 Revenues – $2.35 Billion 1. Revenue figures, product mix and geographic mix are based on non -GAAP revenues for the year ended December 31, 2024. Post JV figures exclude IV Solutions. 2. Diluted shares outstanding reflect the average for the year ended December 31, 2024 and net debt is as of December 31, 2024 Critical Care Warming Anesth & Resp Pain Kits $311 M 64% 36%Post JV 88% 12%Post JV 2024 Key Highlights 1. Strong revenue growth across all segments and geographies 2. Progressed quality and remediation efforts 3. Successful completion of NA order-to-cash system cutover 4. Multiple plant consolidations in flight 5. Portfolio optimization with creation of IV Solutions JV with Otsuka
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5 Overview – Industry and Company Landscape ICU Medical:Industry: > Consolidated industry structure > High regulatory barriers > Hard to reproduce manufacturing assets > Recurring revenues with sticky market share absent unique events > Clinical tailwinds from guidelines > Concentrated geographic profit pools > Emerging software opportunity > Distinct industry circumstances leads to pump replacement cycle acceleration > A focused player anchored around infusion therapy, assembled the right assets > Rebuilt customer trust since acquisitions > Stable operations after two-year challenging period > 2023 provided baseline for revenue growth across all segments > Opportunity for profit improvements as “under-earning” relative to peers > Portfolio optionality > Incentives aligned with shareholder interests
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6 Infusion Consumables: Continuing a Legacy of Growth and Clinical Value ﹥ New automated compounding expanding CSTD utilization in pharmacy ﹥ New regulatory requirements driving continued adoption to ensure compliance ﹥ Incorporating closed systems into Vascular Access, ambulatory cassettes, and dedicated pump sets to simplify care ﹥ Increasing industry focus on products that support infection control best practices and standardization ﹥ Investments in manufacturing capacity support continued growth and supply continuity ﹥ Maximizing service levels through portfolio optimization Positioned to Continue Stable GrowthEstablished Portfolios Built on Quality, Reliability, and Clinical Performance Infusion Therapy Oncology ﹥ Industry-leading Clave gives customers clinically-preferred IV connector technology ﹥ Broadest catalog of IV sets allows for standardization of care across a range of clinical needs ﹥ Vertical integration allows for complete control ﹥ Complete closed system from preparation to administration ﹥ Flexible workflows with ability to combine the preferences of pharmacy and nursing into a single, standardized system ﹥ Cost-effective options that give customers choice while maintaining USP<800> compliance 6% CAGR 2019-20241 1. Reflects compound annual growth from January 1, 2019 through December 31, 2024 excluding the impact from the acquisition o f non-dedicated infusion consumables
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7 Key Consumables Categories Stabilized and Positioned for Opportunities ﹥ Attractive market structure ﹥ Strong global market position, leader in silicone segment ﹥ Broad portfolio and strong focus on innovation with pipeline of clinically-guided next gen technology ﹥ Grow PVC segment from market opportunity ﹥ Position to grow silicone segment globally with unique portfolio and customization services ﹥ Near-term launches of customer-support and portfolio expanding products ﹥ Diverse portfolio of strong brands: Jelco , Powerwand , Port-a-Cath , SuperCath , Saf-T Wing , ViaValve ﹥ Stabilized historically-challenged supply, halting customer attrition and letting us shift focus to share capture ﹥ Leverage complementary consumables to enhance portfolio, such as catheters with integrated Clave connectors ﹥ Establish an integrated vascular access and infusion ecosystem to help enable patients experience one-stick hospitalization for all therapy requirements Ready for Market and Portfolio AdvancementStable Foundation of Product Breadth and Clinical Value Vascular Access Tracheostomy
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8 Infusion Systems Uniquely Positioned to Grow ﹥ Best in breed devices for every pump modality ﹥ Pioneered and advanced IV-EHR Interoperability ﹥ Focused on platform quality, supply, and reliability ﹥ LVP with Best in KLAS recognition every year available ﹥ Pump technology aligns with new guidance from safety bodies ﹥ Continuing intentional focus on quality and remediation for platform stabilization ﹥ Approaching growth ramp with rollover opportunity ﹥ Seizing active market opportunities created by post-COVID and regulatory landscape ﹥ Giving a tired market technology that is meaningfully new and loved by customers: ﹥ IV Performance Platform future ready to grow with and adapt to industry and clinical trends ﹥ Single, cloud-based safety software to harmonize IT across all IV touchpoints from hospital to home care ﹥ Automating workflows for enterprise level efficiency, driving patient and clinician safety Delivering the Future of the Infusion Systems Market Bringing Meaningfully Novel Technology to a Hungry Market Foundation of Innovation and Clinical Value 2017–2023 Today 2024–Beyond “You don’t realize what you don’t have, until you see what you can have.” - ICU Nurse “I’ve traveled all over the country and I’ve not used a better pump.” - Charge Nurse, Gen. Med-Surg
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9 Strong Foundation to Build More Connected, Collaborative Care Core Value Proposition: Infusion Safety, Clinician Preference, Interoperability Leadership Informatics on All IV Touchpoints Large Volume Syringe Pain Future Clinician Collaboration Pharmacists, Clinicians, Medication Safety Secure Data Access Across Care Home Care, Hospital, Alt Site, IDN EHR InteroperabilityClinical Analytics Biomedical Reporting Alarm Forwarding 3rd Party Connectivity Real-Time Location Services Advanced Clinical Dashboards LifeShield IV Performance Platform
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10 The ICU Medical IV Performance Platform Large Volume Syringe Acute Pain Home Health ﹥ Single channel compliment to Plum Duo ﹥ Best of breed with enhanced precision ﹥ Quietness preferred by clinicians ﹥ Best of breed “family” ﹥ Enhanced startup time and time to occlusion detection ﹥ Ease of use preferred in acute space ﹥ Comprehensive pain and multi-therapy ﹥ Complete IV-EHR interoperability ﹥ Connectivity to home ﹥ IV-EHR Interoperability ﹥ Location Services Single, Harmonized IT Platform Across All IV Touchpoints Informatics, Future-Ready Foundation, Enhance Clinical Experience Informatics On Market Pipeline – New Generation of Precision IV Pumps on Single IT Platform
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11 Gross Margin Expansion Can Drive Value + 3pp Add’l wave 2 operational synergies > Manufacturing & supply chain consolidation > Price > Plant volumes 1. Gross margin figures reflect non-GAAP gross margin and revenues for the historical periods presented Post JV Closing + 3–4pp IV Solutions JV phase 1 40–41% + 1–2pp IV Solutions JV phase 2 43–44% 45% Gross Margin Expansion Opportunities Uncontrollable risks include currency and Mexican tariffs & inflation Stabilized Operations Foundation for Gross Margin Expansion 2022 Q1 Q2 Q3 Q4 Production normalization and wave 2 operational synergies 37% Production in excess of underlying demand Manufacturing / supply chain inflation and currency 37% Corrective actions to slow production and right-size inventory 34 %35 % 39 % 2024 Q2 Q3 Q4Q1 2023 Q1 Q2 Q3 Q4 Near-Med Term Final JV Separation
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12 Opportunities, Priorities, and Goals 2023: Opportunity for L-ICU consumables growth with unconstrained supply Opportunity to improve the performance of L -SM business with self-inflicted issues Significantly reduce need for air freight Baseline now set for IV systems (pump) segment to begin predictable revenue compounding Improve overall quality system and FDA warning letter remediation Like Hospira, prove our reliability to customers Return to positive cash flow Manage residual inflation and volatility best we can Fuel and FX are unknowns More time to pursue other strategic actions that create value 2024 and Beyond: Get all parts of portfolio growing Contract renewals of significant portion of L -ICU US sales in late 2024 Fully stable supply chain , production, and distribution network Significant product approvals received New wave of synergies and self-help Manufacturing and logistics consolidation Functional synergies post IT systems conversions Real estate Fuel, FX, and interest rates likely to improve by then Improving free cash flow Return to original capital allocation intent; turn value from debt into equity value, return capital after target leverage
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13 2025 Guidance & Modeling Assumptions In $Millions except per share amounts Excluding JV Transaction Expected Impacts from JV Transaction (assuming Q2 closing) Post JV Transaction Adj EBITDA 1 $395m to $425m ($15m) to ($20m) $380m to $405m Adj EPS 1 $6.55 to $7.25 Neutral $6.55 to $7.25 Revenue Growth (FXN) Cons umables Mid single digits n/a Mid single digits Infusion S ystems Mid single digits n/a Mid single digits Vital Care Flat ~ ($235m) ~ (37%) FXN / Flat organic 2 GM % 1 37 to 38% ~ ($45m) / ~ +2pp 39 to 40% OPEX % ~ 24% of revenue ($10m) / ~ +2pp ~ 26% of revenue Interest, Ne t ~ $95m ~ ($8m) ~ $87m Other Income/(Expense) ~ ($5m) ~ $25m 3 ~ $20m ETR ~ 25% Neutral ~ 25% Diluted Shares 24.7m Neutral 24.7m CapEx $90m to $110m ~ ($15m) $75m to $95m 1 Guidance excludes impact of potential tariffs related to Mexico and Canada imports that were announced on February 1, 2025 and subsequently deferred until March 4, 2025. 2 Organic growth rate excludes impact from currency, acquisitions, divestitures and the deconsolidation of IV Solutions resulting from the joint venture transaction. 3 Amount represents expected service fees and reimbursement of costs from the IV Solutions joint venture. Costs incurred related to the service fees and reimbursement are recorded within COGS and OPEX. 1.0 to 1.5pp currency headwind versus consolidated FXN growth rate (based on 12/31/24 FX rates)
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14 Potential Impact Of Mexico Tariffs No Exclusions (Worst Case) Excluding USMCA Qualified Products Unmitigated Impact Annual value of products imported into US from Mexico ~$350m < $80m 25% tariff impact ~$90m < $20m Mitigation Opportunities Near-term / Lower effort • American goods assembly abroad (9802) • Expand direct export of Mexico manufactured products to OUS • Temporary import bond for products to be exported from US Long-term / Higher effort • Direct export all Mexico manufactured products to OUS • Restructure supply chain 1. Tariff impact is estimated as of March 19, 2025 based on trade policies implemented and/or announced as of that date. It exc ludes the potential impact of future tariffs.
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15 KeyBanc Capital Markets Healthcare Forum March 19, 2025