1 | Financial data as of May 2010
Medical Supplies
2 | Financial data as of May 2010
VisionWe will be the best performing “Supplies” company in the Medical Device Industry.
Mission StatementWe will grow our business by delivering quality healthcare products with great value. This will be accomplished while maintaining a high level of profitability through world class operational efficiencies, commitment to customer satisfaction, and the growth and development of our employees.
3 | Financial data as of May 2010
Medical Supplies has…
A culture of winning, based upon the integrity, performance, and accountability of our people. We can and will affect the lives of our employees, our partners, and our customers.
4 | Financial data as of May 2010
Medical Supplies Marketplace Dynamics
• Our competitors basically fall into two different classes –BD, Bard, 3M, Hospira, Welch-Allyn or Private Label offerings from distributors such as Medline, Cardinal, McKesson, PSS
• Care providers are continually looking to drive down their controllable costs
• Large IDN customers are looking to be treated outside of any GPO affiliation and sometimes outside of typical distribution channels
• Migration of care to lower costs settings continues → Homecare, SurgiCenters
We continue to sell value beyond price in many commoditized markets
5 | Financial data as of May 2010
Medical Supplies-Strengths
• Sales expertise
• Channel partners
• Efficient supply chain
• Quality products / Brand preference
• New product pipeline
6 | Financial data as of May 2010
Medical Supplies Overview
2009 Net Sales: $1.7B
Leading provider of a broad range of high quality products used to improve patient care, including traditional wound care, incontinence, SharpSafety diagnostic and monitoring electrodes, operating room kits and accessories
#1 or #2 market positions across core product categories
Nursing Care
Medical Surgical
Original EquipmentManufacturer
2009 Sales by Product Group
SharpSafety12%
45%
19%
24%
7 | Financial data as of May 2010
Revenue by Care Setting
Hospital
Extended Care
Home Care
Physician Office
Ambulatory
8 | Financial data as of May 2010
Medical Supplies
• Broad portfolio of leading brands: Kendall, Curity, Devon, Medi-trace, Kangaroo, Monoject, Magellan
• Strong field sales presence • Strong brand name recognition and leadership positions• Clinically strong sales force• Solid clinician relationships• Product innovation• Products are differentiated based on quality and innovation and are preferred by
clinicians
• Wound Care• Incontinent Care • Open Suction • Urology• Enteral Feeding/
GI Access
CompetitiveAdvantages
Nursing Care
Key Products• OR and Positioning
and Essentials • Peri-natal • Electrodes and Paper • Chemo Safety • Collection Systems
Monitoring & OR Products
Leading provider of a broad range of high quality products used to improve patient care
• ISO certified design services
• World class manufacturing
• Custom drug delivery devices
Custom Product Solutions (OEM)
• Needles & syringes
• PreFill flush syringes
• Sharps disposal
SharpSafety
9 | Financial data as of May 2010
• Wound Care
• Incontinence Care
• Open Suction
• Enteral Feeding/ GI
• Urology
Nursing Care
10 | Financial data as of May 2010
• Needles & Syringes
• Sharps Disposal
• Prefilled Syringes/IV Access
SharpSafety
11 | Financial data as of May 2010
Monitoring & OR• OR Products
• Peri-natal
• Electrodes & Recording Chart Paper
• Chemotherapy Protection & Safety
• Collection Systems
12 | Financial data as of May 2010
Custom Product Solutions (OEM) ISO certified design services and world class manufacturing are combined to develop and
deliver high quality, custom medical and drug delivery devices built to meet customer specifications, budget and schedule.
• Manufacturing CapabilitiesInjection Molding ExtrusionHydrogel Mixing and Formulation RF WeldingBottle/Syringe Filling Custom ConvertingLaminating Ultrasonic WeldingDie Cutting Textile ConvertingElectrode Assembly Electronic PCB AssemblySuture Braiding/Monofilaments Rigid and Flexible PackagingSilicone Molding Absorbable and Non-Absorbable Polymers High-Speed Assembly Kit Manufacturing
• Customer Support ServicesChemical Testing PrototypingBiocompatibility Testing Design ValidationProject Management SterilizationDesign for Manufacturing Design Services
Covidien:Corporate Overview