piper jaffray 25 th annual healthcare conference december 3, 2013 donald j. spence, chairman/ceo ...
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Piper Jaffray 25th Annual Healthcare ConferenceDecember 3, 2013
Donald J. Spence, Chairman/CEO
www.accellent.com
Helping People Live Better Lives
Forward Looking Statement
This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact communicated during this presentation may constitute forward-looking statements. Examples of forward-looking statements include those relating to our intentions, beliefs or current expectations concerning our results of operations, financial condition, liquidity, prospects, strategies and the industry in which we operate. These statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from our expectations are disclosed in the risk factors contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements made during this presentation are expressly qualified in their entirety by such factors.
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Accellent is an industry leader serving blue chip customers
• One of the world’s leading providers of outsourced manufacturing and design services to the medical device industry
− Scale and product diversity with focus on several large, growing markets− Broad set of capabilities within key product segments− Strong, long-standing customer relationships− 3200 dedicated employees in 5 countries
• Secure financial position− Recurring revenue base with Blue Chip customers− Solid liquidity position with $60M cash balance and undrawn ABL− 2013 Growth through Q3 in revenue and EBITDA
• Accomplished management team
• Strong support from KKR and Bain Capital
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Vision: Helping People Live Better Lives
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A portfolio of technologies to serve our customers
Design & Assembly
• Design & material selection
• Prototyping• Testing• Automation
design• Bonding/Welding• Clean room
assembly• Sterilization Mgt
Tube & Wire Forming & Fabrication
• Tube and Wire drawing, forming
• Platinum materials
• Laser Cutting• Wire coiling,
winding, grinding
• EDM wire, plunge
Metal Processing &
Machining
• Swiss Machining• Turning• Milling• Electropolishing• Passivation• Heat Treatment• Plasma Spray• MIM• Metallurgical
Expertise
Polymer Processing
• Extrusion• Film casting• Injection
Molding• Insert/ Over
Molding• Ultrasonic
Welding• Pad Printing• Coatings
Micro MachiningMicro Machining
ThermocouplesThermocouples
Polyimide TubingPolyimide Tubing
Coated Stainless Wire Coated Stainless Wire Welded Pull CablesWelded Pull Cables
Welded Electrode AssembliesWelded Electrode Assemblies
PT Electrodes & PT Electrodes & Marker BandsMarker Bands
Braided Braided Polyimide TubingPolyimide Tubing
Braided Braided Multi lumenMulti lumen
Handle DesignHandle Design
Braided Braided ShaftsShafts High Spring High Spring
Constant CoilsConstant Coils
Irrigation Tube Irrigation Tube SetsSets Insert MoldingInsert Molding
Polyimide Coated Polyimide Coated WireWire
Product focus integrated with process knowhow
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Upland, CA
Brooklyn Park, MN
Wheeling, IL
Laconia, NH
Brimfield, MA
Collegeville, PA
Trenton, GA
Galway, IRL
Juarez, MX
Arvada, CO
Trenton, GA
Orchard Park, NY
Salem, VA
Wilmington, MA
Aura, Germany
Penang, Malaysia
Over one million square feet of manufacturing space across
15 locations around the globe
Over one million square feet of manufacturing space across
15 locations around the globe
Global footprint with low cost locations
Examples of the Accellent Advantage
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Complete product design, development & production
• Worked in partnership with a key customer for over three years to develop and launch a novel new product in the ortho space.
–Developed patented proprietary technology–Provided insight to customer DFM–Launched program on schedule
Speed to market
• Helped a major customer bring a new and unique surgical product to market at least 6 months earlier than planned.
–Initial customer discussion in Q1 2012–Formally kicked off the program in Q3 2012–Product launch in Q3 2013 with favorable clinician feedback–Accellent currently producing 100% of growing customer demand
Seamless transfer and integration
• Transferred full manufacturing and assembly for a PMA cardio device from customer site to an Accellent location. Ramped up manufacturing volume to meet strong market demand.
Solid 2013 financial performance
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% Variance % Variance
2013A 2012A PY 2013A 2012A PY
Total Sales 135.4 126.0 7.5% 387.0 376.5 2.8%
Gross Profit 37.9$ 33.7$ 12.4% 99.1$ 96.2$ 3.1%% Margin 28.0% 26.8% 25.6% 25.5%
SG&A/R&D 13.0$ 13.3$ -1.8% 41.0$ 42.9$ -4.3%% of Sales 9.6% 10.5% 10.6% 11.4%
EBITDA 30.6$ 28.2$ 8.6% 76.6$ 75.9$ 0.9%% Margin 22.6% 22.4% 19.8% 20.2%
Net Cash Flow 4.1$ 2.6$ 4.7$ 10.7$
Q3 Sep YTD
Summary
• A global leader in serving the medical device industry.
• A strategy designed to support the product needs of our customers.
• Enduring customer relationships combined with favorable end market dynamics.
• Strong near term financial performance.
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