Teleflex Investor Presentation

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Teleflex

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2012-2016

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#1Teleflex Investor Presentation 图 Teleflex®#22 Forward Looking Statements - Investor Presentation This presentation and our discussion contain forward-looking information and statements, which inherently involve risks and uncertainties that could cause actual results to differ from those projected or implied in the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including those risks and uncertainties discussed in our SEC filings, including our most recent Annual Report on Form 10-K. The forward-looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date made. Other than as required by applicable law, we do not intend, and do not assume any obligation, to update these forward-looking statements. Teleflex®#3We are a Strong Company 23,000+ products ~15,500 $2.8 80,000+ Employees globally Billion in revenue customers Industry leading brands *Number of products calculated based on the number of stock keeping units offered by the company. Note: Data presented is as of December 31, 2022. 3 Teleflex®#4Making a Difference Teleflex products are used everyday: 24,000 In over 24,000 surgical procedures in the United States 2,000 By Interventional Cardiologists, Radiologists, and Vascular Surgeons in over 2,000 patients who require vascular intervention 8,000 To care for more than 8,000 patients in the Intensive Care Unit from neonates to adults 4,400 By emergency responders to treat 4,400 patients in the field, including more than 900 cardiac arrests 200 To treat nearly 200 men with benign prostatic hyperplasia (BPH) Note: Statistics included in the graphic above were calculated based on 2020 sales data, management assumptions and estimates. 4 3,500 By Interventional Cardiologists to treat over 3,500 Interventional Cardiology procedures Teleflex®#5Specialty and Complex Catheters, Large Bore Femoral Arterial Access Site Closure We Add Value Across Key Clinical Areas C Comprehensive Vascular Access 5 LO Emergency Medicine Manual Clip Ligation, Surgical Instruments and Surgical Stapling MIS treatment for BPH Teleflex®#6Teleflex Has Delivered for Shareholders Balanced Revenue Growth1 10% 8% 6.8% Growth 6.0% Growth 6% 4% 2% 3.3% M&A Contribution 2.0% M&A Contribution 2012-2016 2017-2022 Transformative Adjusted Margin Expansion Adjusted Gross Margin 59.2% 55.8% 54.1% 47.6% Adjusted Operating Margin 27.0% 25.1% 24.1% 19.0% 2011-2016 2017-2022 Robust Total Shareholder Return From 2012-20222 Portfolio optimization from strategic M&A and select divestitures 1. 2. Average Annual Constant Currency Growth for 2012-2016, and 2017-2022 periods. Total return includes stock price appreciation and dividends from December 31, 2012 to December 31, 2022. Note: See appendices for reconciliation of non-GAAP financial information. 9 -369% Teleflex®#7Teleflex Strategy 2023-2025 Deliver Long-Term Durable Growth 1. Drive sustainable revenue growth 2. Achieve margin and earnings expansion 3. Optimize our product portfolio 7 4. Advance corporate social responsibility and an inclusive culture Teleflex®#8Drive Sustainable Revenue Growth Balanced Portfolio with Multiple Market-Leading, High Growth Franchises -26%1 High Growth Portfolio The UroLift® System, Hemostatic Products, Arrow® EZ-IO® Intraosseous Vascular Access System, PICC Portfolio, Arrow OnControl® Powered Bone Access System, MANTAⓇ Vascular Closure Device, and Titan SGS® Stapler -64%1 ~10%1 Durable Core Other² Anesthesia, Interventional, OEM, Surgical, Vascular Access 1. As a percentage of 2022 revenue. 2. Includes revenue generated from the Company's respiratory and urology products (other than interventional urology products), and products sold to Medline pursuant to the manufacturing and supply transition agreement executed in June 2021. 8 Teleflex®#99 High Growth Portfolio - Early Penetration of Global Addressable Market Opportunity High Growth Portfolio ~$720M in 2022 Revenue 5% Penetration of Global Addressable Market1 The UroLift® System: $12B+ Hemostatic Products: ~$600M Arrow® EZ-IO® Intraosseous Vascular Access System: ~$500M PICC Portfolio: $400M-$500M Arrow OnControl® Powered Bone Access System: ~$200M MANTAⓇ Vascular Closure Device: $200M-$300M Titan SGS® Stapler: ~$250M 1. Calculated using 2022 revenue as a percentage of total global addressable market for the High Growth portfolio of products. Titan SGS Stapler added to portfolio through the acquisition of Standard Bariatrics in 2022. Teleflex®#10Achieve Earnings and Margin Expansion 10 10 Portfolio Mix High Growth portfolio will continue to drive margin expansion. UroLift 2, MANTA, hemostatic products, intraosseous, PICCs, and bariatric stapling Restructuring Activities Expect to deliver $45-$51M in pre-tax savings for 2023-2025 through previously announced restructuring programs Distributor to Direct Conversions Execute on our acquisition strategy, and reload on our opportunities to convert to direct sales Teleflex®#1111 Optimize Our Product Portfolio |- | New Product Introductions Strategic M&A and Divestitures Teleflex®#12Strong Track Record of Disciplined M&A Execution Select Transactions UROLIFT® Turnpike Guideiner V3 catheter QuikClot Z-Medica 2020 NeoTract 2017 TITAN SGS Titan SGS Stapler® Standard Bariatrics 2022 MANTA Essential Medical 2018 HPC MEDICAL High Performance Conductors 2020 Note: 1. From January 2011 to December 2022. 12 vidacare Vidacare 2013 catheters Vascular Solutions 2017 MINT LAP Mini Lap Technologies Inc. Mini-Lap Technologies 2014 80+ deals closed 1 $4.8B1 transaction value Teleflex®#1313 Advance Corporate Social Responsibility and an Inclusive Culture Pillar I: Principles of Ethics & Governance Corporate Governance Compliance, Integrity & Ethics • Sales & Marketing Practices IT Security & Privacy • Pillar II: Planet & Environment Emission Reduction Product Stewardship Responsible Consumption & Production Waste Management Sustainable Procurement Logistics and Distribution • • • Pillar III: People Supporting our Workforce Talent Management & Benefits Diversity, Equity & Inclusion Employee Recognition Employee Health & Safety Pillar IV: Prosperity & Sustainable Healthcare • Medical Education • Clinical Research Philanthropy MC-XX • Community Engagement Research, Development & Innovation . Product Safety & Quality Healthcare Access & Equity Product Stewardship Teleflex®#1414 Our Core Values Entrepreneurial Spirit • Be creative, take risks, and show initiative Initiate change and innovation • Take ownership and be accountable Build Trust Be sincere and authentic • Inform, ask, and listen · Be supportive and reliable Make It Fun . Be collaborative and friendly • Show appreciation • Make your work place a better place Entrepreneurials People Make it Fun 大木 Building . Trust People People at the center of all we do People drive innovation and success People make us who we are Teleflex®#1515 Disciplined Capital Allocation Framework Internal Investment For high-ROI growth drivers and restructuring activities Strategic M&A • Deployment of capital for growth and margin accretive acquisitions 56 Debt Repayment $ Cash to Shareholders • Pay down debt when appropriate • Maintain dividend as primary vehicle for returning capital to shareholders Teleflex®#16Teleflex Investor Presentation ThaThank You People Entrepreneurial rial Spirit Make it Fun iii Building Trust Teleflex®#1717 Appendix GAAP to Non-GAAP Reconciliations Teleflex®#1818 Note on Non-GAAP Financial Measures The presentation to which these appendices are attached, and the following appendices include, among other things, tables reconciling the following applicable non-GAAP financial measures to the most comparable GAAP financial measure: • Constant currency revenue growth. This measure excludes the impact of translating results of international subsidiaries at different currency exchange rates from period to period. Adjusted gross profit and margin. These measures exclude, depending on the period presented, the impact of (i) restructuring, restructuring related and impairment items, (ii) acquisition, integration and divestiture related items, (iii) other items identified in note (C) to the reconciliation tables appearing in Appendix B and (iv) intangible amortization expense. • Adjusted operating profit and margin. These measures exclude, depending on the period presented, (i) the impact of restructuring, restructuring related and impairment items; (ii) acquisition, integration and divestiture related items; (iii) other items identified in note (C) to the reconciliation tables appearing in Appendix C; (iv) intangible amortization expense and (v) MDR costs. Teleflex®#1919 Non-GAAP Adjustments The following is an explanation of certain of the adjustments that are applied with respect to one or more of the non-GAAP financial measures that appear in the presentation to which these appendices are attached: Restructuring, restructuring related and impairment items. Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve operating efficiencies and integrate acquired businesses. Depending on the specific restructuring program involved, our restructuring charges may include employee termination, contract termination, facility closure, employee relocation, equipment relocation, outplacement and other exit costs associated with the restructuring program. Restructuring related charges are directly related to our restructuring programs and consist of facility consolidation costs, including accelerated depreciation expense related to facility closures, costs to transfer manufacturing operations between locations, and retention bonuses offered to certain employees as an incentive for them to remain with our company after completion of the restructuring program. Impairment charges occur if, as a result of periodic impairment testing or due to events or changes in circumstances, we determine that the carrying value of an asset exceeds its fair value. Impairment charges do not directly affect our liquidity but could have a material adverse effect on our reported financial results. Acquisition, integration and divestiture related items. Acquisition and integration expenses are incremental charges, other than restructuring or restructuring related expenses, that are directly related to specific business or asset acquisition transactions. These charges may include, among other things, professional, consulting and other fees; systems integration costs; legal entity restructuring expense; inventory step-up amortization (amortization, through cost of goods sold, of the increase in fair value of inventory resulting from a fair value calculation as of the acquisition date); fair value adjustments to contingent consideration liabilities; and bridge loan facility and backstop financing fees in connection with loan facilities that ultimately were not utilized. Divestiture related activities involve specific business or asset sales. Depending primarily on the terms of the divestiture transaction, the carrying value of the divested business or assets on our financial statements and other costs we incur as a direct result of the divestiture transaction, we may recognize a gain or loss in connection with the divestiture related activities. Other items. These are discrete items that occur sporadically and can affect period-to-period comparisons. Intangible amortization expense. Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated useful lives. The amount of such amortization can vary from period to period as a result of, among other things, business or asset acquisitions or dispositions. MDR Costs. The European Union ("EU") has adopted the EU Medical Device Regulation ("MDR"), which replaces the existing Medical Devices Directive ("MDD") and imposes more stringent requirements for the marketing and sale of medical devices in the EU, including requirements affecting clinical evaluations, quality systems and post-market surveillance. The MDR requirements became effective in May 2021, although certain devices that previously satisfied MDD requirements can continue to be marketed in the EU until December 2027 for higher-risk devices and December 2028 for lower-risk devices, subject to certain limitations. Significantly, the MDR will require the re-registration of previously approved medical devices. As a result, Teleflex will incur expenditures in connection with the new registration of medical devices that previously had been registered under the MDD. Therefore, these expenditures are not considered to be ordinary course expenditures in connection with regulatory matters (in contrast, no adjustment has been made to exclude expenditures related to the registration of medical devices that were not registered previously under the MDD). Teleflex®#20Appendix A - Reconciliation of Constant Currency Revenue Growth, 2012-2022 Dollars in Millions Twelve Months Ended Revenue Twelve Months Ended Growth 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Prior Year Ended Dec 31 Revenue As Reported $1,492.5 $1,551.0 $1,696.3 $1,839.8 $1,809.7 $1,868.0 $2,146.3 $2,448.4 $2,595.4 $2,537.1 $2,809.6 Foreign Currency Volume, New Products, and Price (42.7) 76.0 5.7 (6.2) (129.1) (15.6) 12.6 25.3 (46.8) 4.9 44.9 18.5 51.1 84.2 69.2 59.9 M&A 25.1 121.1 98.6 14.8 4.7 205.8 111.7 165.1 186.3 7.5 26.2 (89.4) 171.7 55.9 (97.0) 105.9 (2.9%) 5.1% 0.4% (0.3%) (7.0%) (0.9%) 0.8% 1.3% (27.5) 1.7% Year Ended Dec 31 Revenue As Reported $1,550.9 GAAP Revenue Growth $ Less Foreign Currency Impact $ Constant Currency Revenue Growth $ 101.1 $ 58.4 $ 145.3 $ 143.5 $ 42.7 $ (5.7) $ 6.2 $ 139.6 $ 149.7 $ M&A Impact $ 25.1 $ 121.1 $ 98.6 $ $1,696.3 $1,839.8 $1,809.7 $1,868.0 $2,146.3 $2,448.4 $2,595.4 $2,537.1 $2,809.6 (30.1) $ 129.1 $ 99.0 $ 14.8 $ $2,791.0 3.9% 9.4% 58.3 $ 278.3 $ 302.1 $ 147.0 $ 15.6 $ (12.6) $ (25.3) $ 46.8 $ 73.9 $ 265.7 $ 276.8 $ 4.7 $ 205.8 $ 165.1 $ (58.3) $ 272.5 $ (18.6). 3.9% 9.4% 193.8 $ 7.5 $ (4.9) $ (44.9) $ 97.0 (63.2) $227.6 $ 78.4 26.2 $ 55.9 $ (27.5) 7.8% 1.2% 3.0% 7.8% 5.8% 8.5% (1.6%) (1.6%) (2.9%) 0.4% (0.3%) (7.0%) 6.8% 9.0% 8.8% 5.4% 1.7% 5.8% 4.6% 0.8% 5.2% 7.6% 8.5% 0.8% 3.8% 3.2% 0.3% 10.9% 3.2% 14.9% 14.1% 3.2% 14.9% 14.1% (0.9%) 0.8% 1.3% (2.1%) 4.1% 14.1% 12.7% 7.9% (2.4%) 8.8% 2.9% 0.3% 10.9% 7.6% 0.3% 1.0% 2.2% (1.0%) (2.1%) 0.2% 1.9% (3.6%) 7.8% (3.4%) 6.6% 3.9% 0.3% 1.0% 2.2% (1.0%) 6.0% (2.2%) 10.7% -0.7% 6.0% (2.2%) 10.7% -0.7% 0.2% 1.9% (3.6%) 20 20 2012-2016 Average Annual GAAP Revenue Growth 2012-2016 Average Annual Constant Currency Revenue Growth 2012-2016 Average Annual M & A Contribution 2017-2022 Average Annual GAAP Revenue Growth 2017-2022 Average Annual Constant Currency Revenue Growth 2017-2022 Average Annual M&A Contribution 4.7% 6.8% 3.3% 5.6% 6.0% 2.0% Teleflex®#2121 Appendix B - Reconciliation of Adjusted Gross Profit and Margin Dollars in Thousands Gross profit as-reported Gross margin as-reported Restructuring, restructuring related and impairment items (A) Acquisition, integration and divestiture related items (B) Other items (C) Intangible Amortization Adjusted gross profit Adjusted gross margin Revenue as-reported 12/31/11 Twelve Months Ended 12/31/16 12/31/17 12/31/22 708,778 $ 996,200 $ 1,171,802 $ 1,531,087 47.5% 53.3% 54.6% 54.9% 14,559 12,730 31,572 10,795 1,972 1,347 89,803 710,750 $ 47.6% 1,010,759 $ 1,196,674 $ 1,652,461 54.1% 55.8% 59.2% 1,492,528 $ 1,868,027 $ 2,146,303 $ 2,791,041 Teleflex®#22Appendix C - Reconciliation of Adjusted Operating Profit and Margin Dollars in Thousands Income from continuing operations before interest, loss on extinguishment of debt and taxes $ Income from continuing operations before interest, loss on extinguishment of debt and taxes margin Restructuring, restructuring related and impairment items (A) Acquisition, integration and divestiture related items (B). Other items (C) 22 22 12/31/11 Twelve Months Ended 12/31/16 12/31/17 12/31/22 229,570 $ 319,453 $ 372,279 $ 499,725 15.4% 17.1% 17.3% 22.4% 3,681 74,559 29,371 52,209 (7,399) 38,802 (2,355) 8,054 42,634 572 (551) 1,155 63,491 98,766 164,088 39,748 Intangible amortization expense MDR costs Adjusted income from continuing operations before interest, loss on extinguishment of debt and taxes $ 283,939 $ 450,676 $ 538,667 $ 754,571 Adjusted income from continuing operations before interest, loss on extinguishment of debt and taxes margin 19.0% 24.1% 25.1% 27.0% Revenue as-reported 1,492,528 $ 1,868,027 $ 2,146,303 $ 2,791,041 Teleflex®#23Appendix D - Tickmarks A. Restructuring, restructuring related and impairment items - For the year ended December 31, 2011, these charges consisted primarily of pre-tax restructuring charges. For the years ending December 31, 2016 and 2017, pre-tax restructuring related charges were $14.6 million and $15.3 million, respectively. For the year ended December 31, 2016, impairment items included (i) a pre-tax, non-cash $41.0 million impairment charge and a $14.9 million reduction in related deferred tax liabilities in connection with discontinuation of an in-process research and development project; (ii) $2.4 million in pre-tax, non-cash impairment charges related to two properties, one of which was classified as an asset held for sale and (iii) a $0.7 million reduction in related deferred tax liabilities. There were no impairment items during the year ended December 31, 2017. For the year ended December 31, 2022, pre- tax restructuring charges were $18.8 million, pre-tax restructuring related charges were $31.9 million; and pre-tax impairment charges were $1.5 million. B. Acquisition, integration and divestiture related items - For the year ended December 31, 2016, amounts attributable to these activities reflect reversals related to contingent consideration liabilities, including $8.3 million related to the discontinuation of an in-process research and development project, and the gain on a sale of assets, somewhat offset by acquisition costs. For the year ended December 31, 2017, the majority of these charges were related to our acquisitions of Vascular Solutions and NeoTract. For the year ended December 31, 2022, these charges related to the acquisition of Standard Bariatrics, Inc. and the gain related to a sale of a building. C. Other items - In 2011, these charges were due primarily to costs related to the separation of a former executive. For the year ended December 31, 2016, these items included relabeling costs and costs associated with a facility that was exited. For the year ended December 31, 2017, these items included both gains and losses associated with litigation settlements, the reversal of previously recognized income due to distributor acquisitions related to Vascular Solutions, the reversal of previously recognized income due to our distributor conversion in China and relabeling costs. For the year ended December 31, 2022, other items related to charges incurred in connection with a debt extinguishment. 23 23 Teleflex®

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