Owens&Minor Investor Conference Presentation Deck
Vertical Integration Creates Stability and Competitive Advantage
OMI's Owned Manufacturing Model - 2 weeks or less¹
RAW
MATERIALS
Source
polypropylene from
Texas
BA
NON-WOVEN FABRIC
PRODUCTION
Convert raw materials
into non-woven fabric in
North Carolina
2.5
A
ORDER PLACED
Order with Asia-
based manufacturer
7
MANUFACTURING
Transfer fabric to Mexico,
Honduras, or U.S. factory for
manufacturing of final products
ARRIVAL AT PORT
Products arrive at Asian
port
¹Per management estimates
3rd Party
al
Owens
SHIPPING
Order shipped across
Pacific
DISTRIBUTION
Finished products travel
from factories to OMI's
distribution centers
DELIVERY
Products shipped out for
delivery to final
destination
1²
ARRIVAL AT PORT
Products arrive at U.S.
west coast port
HOSPITAL/IDN
TRANSFER
Products sent to
distribution centers
Products arrives to
Cost to customer = OMI's Manufacturing + North American Shipping Costs + Operational Fees + OMI's Margin
Traditional Peer Distributor Model (Sourcing) – 5-6 months¹
customer
Americas-based manufacturing
OMI owned manufacturing capabilities
minimizes cost increases to customers
✓ No contract manufacturing
DISTRIBUTION
Finished products travel
from ports to distribution
centers
Reduces transportation costs
Reduces lead times
Peer
Fewer logistical steps and shorter lead times
provide more clarity in pricing and reduce
potential for pricing fluctuations between
placement of order and delivery
Americas-based Model Reduces Delivery Time and Minimizes Cost
+
DELIVERY
Products shipped out for
delivery to final
destination
Cost to customer = Manufacturer's Cost & Margin + Distributor's Cross Pacific Shipping & Port Fees + North American Shipping Costs + Operational Fees + Distributor's Margin
===
HOSPITAL/IDN
Products arrives to
customer
Owens
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