Rochester Medical — Investor Presentation (November 2012)
25 slides from Rochester Medical's investor presentation, Nov 27, 2012
Slide 1: Winter 2012-2013 Rochester Medical Corporation Investor Presentation
Winter 2012-2013 Rochester Medical Corporation Investor Presentation
Slide 2: Outline
Outline Company Overview Investment Considerations Global Revenue Growth Trend Sound Growth Strategy Market Opportunity & Product Lines Financial Summary & Outlook 2
Slide 3: Company Overview
Company Overview Founded in 1988 Develop, manufacture and market innovative disposable incontinence and bladder drainage products Advanced technology company with deep & growing patent portfolio Vertically integrated with strong R&D and proprietary manufacturing capabilities Global sales & distribut
Slide 4: Investment Considerations
Investment Considerations Mid-teens revenue growth & doubling of net income this fiscal year Superior technologies enable market share gains in large global markets Favorable reimbursement changes support our technologies Seasoned US sales team & broad international distribution Recent divestiture s
Slide 5: Global Revenue Growth: Driven by Accelerating Direct Sales, US & OUS
Global Revenue Growth: Driven by Accelerating Direct Sales, US & OUS *F09 if £ to $ exchange rates had not fallen (1.966 – 1.558) 5
Slide 6: Sound Growth Strategy: Drive Sales, Profit & Cash Flow Improvements
Sound Growth Strategy: Drive Sales, Profit & Cash Flow Improvements Deliver mid-teens top-line growth* Paced by robust U.S. and U.K. Direct Sales growth Other international Direct Sales markets growing modestly Moderate Private Label sales growth Improve profitability Fixed cost leverage & reduced o
Slide 7: Global Market Opportunities: Superior Products Drive Share Capture
Global Market Opportunities: Superior Products Drive Share Capture (US$, millions) Product U.S. Market Europe Market Total Global Market Estimated Market 5 Year CAGR (%) ROCM Global Market Share (%) Key Competitors Intermittent Catheters $400 $400 $800 Low single digits <3% Coloplast, Hollister Male
Slide 8: Innovative Products
Innovative Products Products Features & Benefits Intermittent Catheters Magic3 & Hydrosil 3-layer construction enables soft, gentle outer layer with firm inner layer for easy insertion & removal Silicone (non-latex) Hydrophilic, antibacterial & phthalate-free Male External Catheters Spirit™ Hydrocol
Slide 9: Intermittent Catheters
Intermittent Catheters 9 Biggest growth driver for Rochester Medical Gaining share in $800 million growing worldwide market
Slide 10: Male External Catheters
Male External Catheters 10 Latex free Skin-friendly advanced adhesive innovations Wide array of styles and sizes offers security, confidence and convenience Spirit™ launched October 2012 First and only male external catheter to combine the moisture-wicking properties of a hydrocolloid adhesive with
Slide 11: FemSoft Insert
FemSoft Insert An elegant & proprietary solution for female stress incontinence Stress incontinence affects 14 million women in the U.S. Very positive response from OB/GYNs & urologists Compelling testimonials from consumers “FemSoft saved my life!” 11 U.S. and U.K. reimbursement coverage granted Gu
Slide 12: Favorable Market Dynamics: Support Growth & Share Gains
Favorable Market Dynamics: Support Growth & Share Gains Products Key Market Drivers Intermittent Catheters New product features offer measureable patient benefits & attract clinician support Change in U.S. reimbursement in 2009 allowing 200 catheters/month, up from 4/month International penetration
Slide 13: Sound Growth Strategy: Major U.S. Sales Force & OUS Presence
Sound Growth Strategy: Major U.S. Sales Force & OUS Presence Significant U.S. Home Care sales infrastructure ~21 reps today vs. 3 in 2010 Steadily increasing share of scripts written We estimate 1 of every 4 new patient scripts written for Rochester brand product Direct sales presence in the U.K. an
Slide 14: U.S. Sales Force Coverage – 2012
U.S. Sales Force Coverage – 2012 = One sales rep = One regional sales manager 14
Slide 15: Sound Growth Strategy: Expand Internationally to Drive OUS Sales
Sound Growth Strategy: Expand Internationally to Drive OUS Sales Drive organic growth in existing international markets Primary markets: Europe & Middle East Direct sales force located in the U.K. & the Netherlands Extensive distributor network outside the U.K. Partnered with Teleflex to sell our br
Slide 16: Global Sales & Distribution: International Sales – 63% of FY12 Total Sales
Blue shading denotes Rochester Medical Direct Sales activity LTM Distribution relationships in 58 countries Rochester Medical- manufactured products marketed in more than 75 countries 16 Global Sales & Distribution: International Sales – 63% of FY12 Total Sales
Slide 17: Sound Growth Strategy: Private Label a Steady Grower
Sound Growth Strategy: Private Label a Steady Grower Solid relationships with leading medical products customers around the world Coloplast Hollister B. Braun Quarterly fluctuations in sales growth will diminish as Private-label sales represent a smaller % of total sales 17
Slide 18: Sound Growth Strategy: Divestiture of Foley Catheter Line
Sound Growth Strategy: Divestiture of Foley Catheter Line Rationale for divestiture: to be a stronger, faster growing & more profitable company High barriers in Foley market Extensive manufacturing & marketing costs reduced operating income Financial implications of divestiture Near-term: limited im
Slide 19: Recent Quarterly Results (as of 9/30/12)
Recent Quarterly Results (as of 9/30/12) 19 *Revenue presented on reported basis including the effects of currency. Excluding currency effects, Q412 & FY12 revenue growth was 16% and 18%, respectively.
Slide 20: Q4 & Fiscal Year 2012 Highlights
Q4 & Fiscal Year 2012 Highlights Record revenue and record operating income for Rochester Medical U.S. growth robust, driven by strong Intermittent Catheter line performance Intermittent Catheters grew 44% worldwide in Q412 on share gains in this $800 million global market The U.K. reported solid gr
Slide 21: Financial Profile (as of 9/30/12)
Financial Profile (as of 9/30/12) Strong balance sheet $20.7 million in cash & marketable securities $17.5 million working capital (excluding cash) $5 million available on a $5 million Line of Credit Zero debt Positive free cash flow Share repurchase plan availability 21
Slide 22: Looking Ahead
Looking Ahead FY13 guidance(excluding Foley Business): $67 million in revenues, up 17%* $7 million in after-tax income** Expect strong direct Home Care sales growth Primarily driven by Intermittent Catheter products U.S. growth fastest complemented by more moderate Europe/ROW growth Expect stable Pr
Slide 23: Summary
Summary Rochester Medical is focused on delivering solid top line growth and improving profitability Clear strategy to grow sales Highly advanced & innovative product portfolio with further advanced products in the pipeline Large, global markets with opportunities to gain abundant market share Stron
Slide 24: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” with in the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results of Rochester Medical. Such statemen
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