Summary of Teleflex Conference Call Company Overview - **Company**: Teleflex - **Industry**: Healthcare, specifically Medical Supplies and Devices Key Points Company Separation and Strategic Focus - Teleflex is separating into two entities: RemainCo and Nuco, due to differing growth profiles and capital allocation strategies [2][4] - The separation was announced in Q4 earnings call in February, with significant inbound interest in the assets [2][3] - The company is prioritizing a sale of Nuco over a spin-off, with advanced stages of due diligence already in progress [4][5] Performance and Growth - RemainCo is expected to simplify operations, reducing from seven business units and 19 manufacturing sites to three business units and seven manufacturing sites [6] - Excluding volume-based procurement impacts and BIOTRONIK, RemainCo's business is growing at approximately 5% year-to-date [8] - BIOTRONIK, acquired four months ago, reported a growth of approximately 7% in its first year under Teleflex [8][10] BIOTRONIK Integration - BIOTRONIK's focus on complex PCI (Percutaneous Coronary Intervention) complements Teleflex's existing vascular and emergency medicine products [9][10] - The combined sales force will enhance market presence in Europe, Asia, and the U.S., targeting complex PCI procedures [10] - The introduction of Freesolv, a drug-eluting scaffold that absorbs in 12 months, is expected to provide innovative treatment options [12][14] Financial Outlook and Capital Allocation - RemainCo is projected to have better gross margins than Teleflex, with similar operating margins due to increased R&D investments [22][30] - The company plans to balance capital allocation between debt repayment and shareholder returns through share repurchases [29][30] - Tariff impacts have been mitigated from an initial $55 million to approximately $25-$26 million, with ongoing efforts to increase USMCA compliance [24][25] Market Dynamics and Future Considerations - The market for medical devices is expected to grow due to increased diagnosis and prevalence of conditions, with products being used in combination [18][19] - The balloon pump business, initially projected to grow, has faced a slowdown, but Teleflex has gained market share from 30% to 40-45% in the U.S. [33][36] - Future growth strategies will focus on internal R&D and potential smaller acquisitions, depending on market conditions [30][31] Risks and Challenges - The company faces pricing pressures from volume-based procurement in China, although most of its portfolio has already been affected [26][28] - The impact of tariffs and market dynamics will continue to be monitored, with guidance expected in February [25][29] Conclusion Teleflex is strategically positioning itself for growth through the separation of its business units, focusing on enhancing its product portfolio and market presence, particularly with the integration of BIOTRONIK. The company is committed to maximizing shareholder value while navigating market challenges and opportunities.

Financial Data and Key Metrics Changes - Second quarter revenues were $780.9 million, an increase of 4.2% year over year on a GAAP basis and up 1% on an adjusted constant currency basis [5][6] - Adjusted earnings per share were $3.73, a 9.1% increase year over year [6][25] - Adjusted gross margin was 59.7%, a 110 basis point decrease year over year, primarily due to cost inflation and unfavorable product mix [24] - Adjusted operating margin was 26.9%, a 20 basis point year over year increase [24] Business Line Data and Key Metrics Changes - Vascular Access revenue increased 1.4% year over year to $185.5 million, driven by growth in PICCs [9] - Interventional revenue was $170 million, an increase of 19.3% year over year, led by intra aortic balloon pumps and complex catheters [9] - Anesthesia revenues decreased 7.6% year over year to $96.4 million, impacted by tough comps in military orders [10] - Surgical business revenue increased 1.4% year over year to $114 million, with solid underlying trends [10] - Interventional Urology revenue decreased 8.3% year over year to $76.4 million, with pressure on UroLift [11] Market Data and Key Metrics Changes - Americas revenues were $525.7 million, a 2% increase year over year [7] - EMEA revenues decreased 2.1% year over year to $166.2 million, with strength in Interventional business offset by Anesthesia challenges [7] - Asia revenues were $89 million, a 1.2% increase year over year, driven by Southeast Asia, India, and Japan [8] Company Strategy and Development Direction - The company is progressing with the separation announced in February, aiming for focused strategic direction and streamlined operations [12][13] - A potential sale of NewCo is being pursued, with significant interest from potential buyers [13] - The acquisition of BioTronic's vascular intervention business is expected to enhance growth and improve margins, with anticipated annual revenues exceeding $800 million [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational excellence and value creation, with updated financial guidance reflecting strong performance [5][28] - The company expects total constant currency growth for 2025 to be in the range of 7.7% to 8.7% [28] - Management highlighted the positive impact of proposed CMS reimbursement changes on UroLift and Barajel, which could enhance growth prospects [72][73] Other Important Information - The company completed the acquisition of BioTronic for a net initial cash payment of €4 million [15] - The impact from tariffs is now estimated at approximately $29 million for 2025, a reduction from previous estimates [30] - The company plans to initiate a U.S. pivotal study for PRESOLVE technology in the coming months [19] Q&A Session Summary Question: Can you provide more context on the guidance bridge between tariffs, FX, and business outperformance? - Management expects organic growth of the BioTronic business in the second half of the year to be mid single digits, with a long-term growth expectation of 6% or better starting in 2026 [40][41] Question: Can you provide a rough breakout between the growth of remainco and newco? - Remainco is expected to grow in the upper 5% range, while newco's growth is anticipated to be in the mid single digits [45] Question: What is the outlook for the interventional business growth? - The interventional business is expected to grow high single to low double digits for the full year of 2025 [46] Question: Can you provide an update on the timing for the sale versus spin of NewCo? - If a spin proceeds, it is expected to occur in mid-2026, while the timing for a sale remains uncertain [50][81] Question: How will the proposed CMS rule impact UroLift? - The proposed rule is expected to provide a 10% uplift in reimbursement, which could significantly benefit UroLift's growth [72][84] Question: What is the site of service mix for Barajel? - The site of service mix for Barajel is spread across all three service sites, with the proposed uplift expected to encourage more product movement to the office side [87]

Q2 2025 Performance - Adjusted constant currency revenue grew by 1.0% year-over-year[12] - Adjusted gross margin was 59.7%[12] - Adjusted operating margin was 26.9%[12] - Adjusted EPS reached $3.73, a 9.1% increase year-over-year[12] 2025 Financial Guidance - Adjusted constant currency revenue growth guidance increased to a range of 7.70% to 8.70%, compared to the prior range of 1.00% to 2.00%[12] - Adjusted diluted EPS from continuing operations guidance increased to a range of $13.90 to $14.30, compared to the prior range of $13.20 to $13.60[12] - GAAP Revenue Growth is forecasted between 9.00% and 10.00%[41] Segment Performance (Q2 2025) - Americas reported revenue of $525.7 million, with adjusted constant currency revenue growth of 2.0%[13, 14] - EMEA reported revenue of $166.2 million, but experienced an adjusted constant currency revenue decline of 2.1%[13, 14] - Asia reported revenue of $89.0 million, with adjusted constant currency revenue growth of 1.2%[13, 14] Strategic Updates - Teleflex is progressing with the separation into RemainCo and NewCo, and is evaluating a potential sale of NewCo[23] - Teleflex completed the acquisition of BIOTRONIK's Vascular Intervention business for an initial upfront cash payment of €704 million[23]