TELEFLEX INC Q4 FY2024 earnings call

• Leadership transition: Tom Powell to retire effective April 1, 2025, John Deren to succeed him as CFO. - Financial results: Q4 revenues $795.4M, up 2.8% GAAP/3.2% adjusted constant currency; adjusted EPS grew 15.1% to $3.89. 2024 Palette Life Sciences exceeded revenue guidance. - Acquisition: Teleflex to acquire BIOTRONIK's Vascular Intervention business for ~EUR760M, expected to close by end-2025. - Separation plan: Board authorized separation into RemainCo (vascular access, interventional, surgical) and NewCo (urology, acute care, OEM), expected to be tax-free distribution in mid-2026.

For the fourth quarter, Teleflex revenues were $795.4 million, up 2.8% year-over-year on a GAAP basis and 3.2% on an adjusted constant currency basis. Interventional and Surgical businesses had adjusted constant currency growth of 18.7% and 12.3% respectively in Q4. Palette Life Sciences revenues exceeded the high end of the $73 million to $75 million guidance for 2024. However, adjusted constant currency revenues for Q4 were $10.2 million below the low-end of expectations, with approximately half attributable to Interventional Urology and the rest due to lower hospitalizations impacting CVC and Vascular businesses.

• 2025 adjusted constant currency growth expected 1%-2%, excluding 2024 Italian measure impact. - 2025 adjusted EPS range $13.95-$14.35. - Assumes ~$55M foreign exchange headwind in 2025. - 2025 outlook includes pressure on Interventional Urology, OEM customer inventory management, and volume-based procurement in China. - BIOTRONIK acquisition expected to be ~$0.10 accretive to adjusted EPS in first year, driving double-digit ROIC early post-close.

• Tariffs: Significant exposure to Mexico manufacturing tariffs, which could negatively impact results. - Inventory management: OEM customers focusing on inventory management leading to temporary order delays. - Market impacts: UroLift business softness, volume-based procurement in China affecting Surgical business, and flu/COVID-19 impacting CVC/Vascular business.

Q: What prompted the review leading to the separation plan?

A: Teleflex continuously evaluates portfolio to maximize value; two businesses had different growth strategies, and separation would unlock value.

Q: How are sales forces synergized with BIOTRONIK acquisition?

A: BIOTRONIK strong in EMEA, Teleflex strong in Americas; combined sales forces can access cath lab and sell complementary products.

Q: Any update on intra-aortic balloon pump forecast?

A: No change in outlook; Q4 results ahead of expectation, quotation rates robust.

Q: Who will lead NewCo?

A: Beginning search immediately, including external candidates for CEO and CFO.

Q: How is tariffs exposure factored in 2025 outlook?

A: Current enacted tariffs are contemplated, with largest exposure from Mexico manufacturing tariffs.