Rochester Medical — Investor Presentation (September 2011)
25 slides from Rochester Medical's investor presentation, Sep 8, 2011
Slide 1: Rochester Medical Corporation Investor Presentation
SEPTEMBER 8, 2011 Rochester Medical Corporation Investor Presentation
Slide 2: Investment Considerations
Investment Considerations Three year plan to double sales & improve profitability by FY2013 Superior products drive above-market growth potential in large global markets Sound growth strategy includes increased U.S. sales force, international expansion & improving profitability Favorable underlying
Slide 3: Company Overview
Company Overview Develop, manufacture and market innovative disposable medical device products Primarily serve urinary incontinence and bladder drainage markets Vertically integrated with strong R&D and proprietary manufacturing capabilities Global sales & distribution presence Private label supplie
Slide 4: FY2013 Plan: Double Sales & Improve Profitability
FY2013 Plan: Double Sales & Improve Profitability FY2013 Plan Double sales to $83m in FY13 from $41m in FY10 Improve profitability Fixed cost leverage Measured operating expense growth Product mix shift to Direct sales Expect to deliver $9m - $10m in after-tax profit in FY13 versus an after-tax loss
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: Global Market Opportunities: Superior Products Drive Above Market Growth
Global Market Opportunities: Superior Products Drive Above Market Growth (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
Slide 7: Sound Growth Strategy: Fueled by Major U.S. Sales Force Expansion
Sound Growth Strategy: Fueled by Major U.S. Sales Force Expansion Significant investment in U.S. sales force in CY2011 Dual channel focus: Home Care & Acute Care Primary objective is to accelerate market penetration and top-line growth Nearly quadrupled total headcount Home Care: ~20 reps today vs.
Slide 8: U.S. Sales Force Coverage - 2010
U.S. Sales Force Coverage - 2010 = One sales rep 8
Slide 9: U.S. Sales Force Coverage - 2011
U.S. Sales Force Coverage - 2011 = One sales rep = One regional sales manager 9
Slide 10: Sound Growth Strategy: Expand Internationally to Drive Direct Sales
Sound Growth Strategy: Expand Internationally to Drive Direct Sales Drive organic growth via ongoing penetration of existing international markets Primary focus markets - Europe & Middle East Direct sales force located in the U.K. & the Netherlands Extensive distributor network outside the U.K. Util
Slide 11: Global Sales & Distribution
Global Sales & Distribution Blue shading denotes Rochester Medical Direct Sales activity LTM Distribution relationships in 58 countries Rochester Medical- manufactured products marketed in more than 75 countries 11
Slide 12: Sound Growth Strategy: Private-label Business Defined by Stable Growth
Sound Growth Strategy: Private-label Business Defined by Stable Growth 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 12
Slide 13: Sound Growth Strategy: Drive Improved Profitability
Sound Growth Strategy: Drive Improved Profitability Modest gross margin benefit resulting from an increased mix of Direct Sales Strong operating margin improvement driven by Fixed cost leverage as volume increases Measured operating expense growth $9 million - $10 million expected in FY13 vs. a loss
Slide 14: Favorable Market Dynamics: Support Growth & Share Gains
Favorable Market Dynamics: Support Growth & Share Gains Products Key Market Drivers Intermittent Catheters Change in reimbursement in 2009 allowing 200 catheters/month, up from 2/month International penetration Foley Catheters Medicare's refusal to reimburse hospitals for catheter-associated urinary
Slide 15: Innovative Base Products
Innovative Base Products Products Features & Benefits Magic3 & Hydrosil Intermittent Catheters 3-layer construction enables soft, gentle outer layer with firm inner layer for easy insertion & removal Silicone (non-latex) Hydrophilic, antibacterial & phthalate-free StrataSI & StrataNF Foley Catheters
Slide 16: Intermittent Catheters
Intermittent Catheters Biggest growth driver for Rochester Medical $800 million global market potential with <3% market share currently Emphasis on Magic3 Intermittent Catheters Magic3 possesses unique features and quality differentiation which drive clinical and consumer appeal 3-layer construction
Slide 17: Intermittent Catheters (cont'd)
Intermittent Catheters (cont'd) 17
Slide 18: Foley Catheters
Foley Catheters New StrataNF anti-infection foley catheter The only catheter indicated for reducing catheter- associated urinary tract infections StrataSI Silicone foley catheters utilize comfort layered technology The most significant advancement in foley catheters in 40 years Product sales tied to
Slide 19: Foley realized.
Foley realized. Go ahead, touch it. oe pe og
Slide 20: 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!" 20 U.S. and U.K. reimbursement coverage granted Fo
Slide 21: Financial Profile (as of 6/30/11)
Financial Profile (as of 6/30/11) Strong balance sheet Cash $34 million in cash & marketable securities $8 million available on a $25 million Line of Credit Working capital $35 million Total debt $19.6 million Long-term debt ($1.7 million) Plan to pay off debt associated with Laprolan acquisition wi
Slide 22: Recent Quarterly Results (as of 6/30/11)
Recent Quarterly Results (as of 6/30/11) 22
Slide 23: Summary
Summary Rochester Medical is focused on successfully executing on the FY2010 to FY2013 Plan Clear strategy to double sales to $83m in FY2013 Innovative, quality-differentiated product portfolio Large, global markets with opportunities to gain abundant market share Strong global sales and distributio
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
Slide 25: Slide 25
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