1.4.3.4.3 YE 2013 Earnings Call Summary
YE 2013
Earnings Conference Call March 26, 2014
CONFIDENTIAL
Forward-Looking Statements This presentation may include certain forward-looking statements, including but not limited to expected financial results and other planned events. Any such statements reflect various estimates and assumptions concerning anticipated results, and are subject to the risks and uncertainties discussed in detail in our securities offering documents. Whether any such results are, in fact, achieved will depend upon future events, some or all of which are not within our control. Accordingly, actual results may vary from the projected results and such variations may be material. Forward-looking statements speak only as of the date the statements are made. We specifically disclaim any obligation to update forward-looking statements or projections to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements.
2
CONFIDENTIAL
Full Year 2013 Financial Highlights • Continued growth • Sales of $960 million - growth of 9% over 2012 • Increased revenue across all regions • Strong profitability • LTM Adjusted EBITDA of $306 million (including pro forma effect of acquisitions) - growth of 16% over 2012 • Improved LTM Adjusted EBITDA margin to 31.8% • Issued HoldCo debt at extremely favorable rates on strength of operating profile • Substantial cash flow • Produced free cash flow from operations of $265 million • Paid down $106 million of term loan to return outstanding balance to pre-acquisition level 3
CONFIDENTIAL
4th Quarter 2013 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$300
$100 $261
$225
$75
$79
$218 $150
$50
$75
$25
$0
$0 2012
4
2013
$62 Margin: 30.4% 28.6%
2012
YOY % Growth
Sales
Adj. EBITDA
Reported
20%
27%
Operational
20%
25%
CONFIDENTIAL
31.2% Margin: 30.4%
2013
Full Year 2013 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$1,000
$350 $960
$800
$879
$306
$275
$263 $600
$200
$400
$125
$200
$50 2012
2013
Margin: 30.4% 30.0%
2012
YOY % Growth
Sales
Adj. EBITDA
Reported
9%
16%
Operational
10%
15%
31.2% Margin: 31.8%
2013*
___________________________ Note: * Includes pro forma EBITDA for Encap Drug Delivery and Bend Research ($0.1 for the first two months and $5.5 for the first nine months, respectively) and the effect of an accounting reclassification on the quarterly phasing through September ($2.7 for first nine months).
5
CONFIDENTIAL
2013 Sales by Region 4th Quarter
6
Full Year
$ in Millions
YOY % Growth Rpt.
YOY % Growth Ops.
$ in Millions
YOY % Growth Rpt.
YOY % Growth Ops.
$111
20%
15%
EMEA
$401
12%
9%
$100
31%
32%
Americas
$364
11%
12%
$50
2%
10%
Asia
$195
1%
7%
$261
20%
20%
TOTAL
$960
9%
10%
CONFIDENTIAL
2013 Free Cash Flow from Operations
Q4 2013
YTD 2013
Adjusted EBITDA
$79
$306*
Less: Capital Expenditures
(21)
(51)
55
10
$113
$265
($ Millions)
+/-: Changes in Assets and Liabilities** Free Cash Flow from Operations
___________________________ Note: * Includes pro forma EBITDA for Encap Drug Delivery ($0.1 for the first two months) and Bend Research ($5.5 for the first nine months). ** Exclusive of interest, taxes and non-operational items.
7
CONFIDENTIAL
Debt Structure, Credit Metrics and Liquidity ($ Millions)
Opening B/S Aug 1, 2011
Dec 31, 2012
Debt
$920
$831
466
HoldCo
OpCo
Term Loan
$825
$825
430
Euro Notes*
449
449
19
16
Foreign Debt
16
16
3
3
Capital Leases
3
3
-
-
PIK Notes
465
-
$1,408
$1,280
Total Debt
$1,758
$1,293
20
65
Cash
84
84
$1,388
$1,215
Net Debt
$1,674
$1,209
3.9x
3.0x
Net Sr. Sec. / EBITDA
2.5x
2.5x
5.8x
4.6x
Net Debt / EBITDA
5.5x
4.0x
$169
$214
Liquidity
$233
$233
___________________________ Note: * Period-over-period change due to FX translation.
8
Dec 31, 2013
CONFIDENTIAL
Earnings Conference Call March 26, 2014
CONFIDENTIAL
Forward-Looking Statements This presentation may include certain forward-looking statements, including but not limited to expected financial results and other planned events. Any such statements reflect various estimates and assumptions concerning anticipated results, and are subject to the risks and uncertainties discussed in detail in our securities offering documents. Whether any such results are, in fact, achieved will depend upon future events, some or all of which are not within our control. Accordingly, actual results may vary from the projected results and such variations may be material. Forward-looking statements speak only as of the date the statements are made. We specifically disclaim any obligation to update forward-looking statements or projections to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements.
2
CONFIDENTIAL
Full Year 2013 Financial Highlights • Continued growth • Sales of $960 million - growth of 9% over 2012 • Increased revenue across all regions • Strong profitability • LTM Adjusted EBITDA of $306 million (including pro forma effect of acquisitions) - growth of 16% over 2012 • Improved LTM Adjusted EBITDA margin to 31.8% • Issued HoldCo debt at extremely favorable rates on strength of operating profile • Substantial cash flow • Produced free cash flow from operations of $265 million • Paid down $106 million of term loan to return outstanding balance to pre-acquisition level 3
CONFIDENTIAL
4th Quarter 2013 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$300
$100 $261
$225
$75
$79
$218 $150
$50
$75
$25
$0
$0 2012
4
2013
$62 Margin: 30.4% 28.6%
2012
YOY % Growth
Sales
Adj. EBITDA
Reported
20%
27%
Operational
20%
25%
CONFIDENTIAL
31.2% Margin: 30.4%
2013
Full Year 2013 Financial Results Sales
Adjusted EBITDA
$ Millions
$ Millions
$1,000
$350 $960
$800
$879
$306
$275
$263 $600
$200
$400
$125
$200
$50 2012
2013
Margin: 30.4% 30.0%
2012
YOY % Growth
Sales
Adj. EBITDA
Reported
9%
16%
Operational
10%
15%
31.2% Margin: 31.8%
2013*
___________________________ Note: * Includes pro forma EBITDA for Encap Drug Delivery and Bend Research ($0.1 for the first two months and $5.5 for the first nine months, respectively) and the effect of an accounting reclassification on the quarterly phasing through September ($2.7 for first nine months).
5
CONFIDENTIAL
2013 Sales by Region 4th Quarter
6
Full Year
$ in Millions
YOY % Growth Rpt.
YOY % Growth Ops.
$ in Millions
YOY % Growth Rpt.
YOY % Growth Ops.
$111
20%
15%
EMEA
$401
12%
9%
$100
31%
32%
Americas
$364
11%
12%
$50
2%
10%
Asia
$195
1%
7%
$261
20%
20%
TOTAL
$960
9%
10%
CONFIDENTIAL
2013 Free Cash Flow from Operations
Q4 2013
YTD 2013
Adjusted EBITDA
$79
$306*
Less: Capital Expenditures
(21)
(51)
55
10
$113
$265
($ Millions)
+/-: Changes in Assets and Liabilities** Free Cash Flow from Operations
___________________________ Note: * Includes pro forma EBITDA for Encap Drug Delivery ($0.1 for the first two months) and Bend Research ($5.5 for the first nine months). ** Exclusive of interest, taxes and non-operational items.
7
CONFIDENTIAL
Debt Structure, Credit Metrics and Liquidity ($ Millions)
Opening B/S Aug 1, 2011
Dec 31, 2012
Debt
$920
$831
466
HoldCo
OpCo
Term Loan
$825
$825
430
Euro Notes*
449
449
19
16
Foreign Debt
16
16
3
3
Capital Leases
3
3
-
-
PIK Notes
465
-
$1,408
$1,280
Total Debt
$1,758
$1,293
20
65
Cash
84
84
$1,388
$1,215
Net Debt
$1,674
$1,209
3.9x
3.0x
Net Sr. Sec. / EBITDA
2.5x
2.5x
5.8x
4.6x
Net Debt / EBITDA
5.5x
4.0x
$169
$214
Liquidity
$233
$233
___________________________ Note: * Period-over-period change due to FX translation.
8
Dec 31, 2013
CONFIDENTIAL
