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HAEMONETICS ® Partnering for Life…Making a Difference Haemonetics ® Transforming Our Business
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HAEMONETICS®Partnering for Life…Making a Difference
Haemonetics®
Transforming Our Business
HAEMONETICS®Partnering for Life…Making a Difference
We have two strategies to create shareholder value
1. Leverage business for improved profitability
2. Expand business by leveraging core competencies
HAEMONETICS®Partnering for Life…Making a Difference
Strategy 1 is working: we are transforming our profitability
FY03 ActualBase
FY04 ActualYear 1
FY05 Actua
lYear
2
FY06 ActualYear 3
Revenue 5% 8% 5% 9%Gross profit dollar growth
0% 12% 14% 12%
Operating income growth
3% 26% 27% 21%*
*FY06 excludes impact of arbitration award
HAEMONETICS®Partnering for Life…Making a Difference
Strategy 1 is working: gross margin continues to build
42%
44%
46%
48%
50%
52%
54%
FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06
HAEMONETICS®Partnering for Life…Making a Difference
Strategy 1 is working: operating margin continues to build
0%
4%
8%
12%
16%
20%
FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06
HAEMONETICS®Partnering for Life…Making a Difference
Strategy #1 is sustainable
• Deliver annual cost savings from increased manufacturing efficiencies ($35M+ over 8 years)
• Rationalize product lines • Plan expenses to increase at rate
lower than incremental gross profit growth
• Command accretive operating margins on new products or partnerships
HAEMONETICS®Partnering for Life…Making a Difference
We have two strategies that create additional shareholder value
1.Leverage the core business for greater profitability
2.Expand the business by leveraging Haemonetics’ core competencies
HAEMONETICS®Partnering for Life…Making a Difference
Core Competency Expansion Opportunity
Sales/service Internal R&D
Manufacturing process Marketing partnerships
Market innovation Acquisitions
Strategy #2 is working: leveraging competencies to transform business
HAEMONETICS®Partnering for Life…Making a Difference
Patient new products significantly expand market potential
LaunchEstimated
Market Potential
cardioPAT™ Q406 $100-$120MSmartSuction Harmony™ Q406 $45MFilter bag Q207 $15-$20MSmartSuction Solo™ Q307 $230-$240MTotal new products $390-$425M
HAEMONETICS®Partnering for Life…Making a Difference
Patient Division market potential exceeds $1 billion
• CardioPAT expands market surgical blood salvage market
• Orthopedic procedures untapped and growing
• SmartSuction adds new opportunity in premium suction
0
200
400
600
800
1000
1200
FY06 FY07
Dolla
rs in
mill
ions
Cardio Ortho Suction
MARKET POTENTIAL
HAEMONETICS®Partnering for Life…Making a Difference
Donor new products address customer needs
Launch Estimated Market Potential
Cymbal™ Q406 EUQ307 US
$380M(existing market – next
generation system)
eQue™ Q107 EU/US
$20M
eLynx™ Q107 EUQ307 US
$20M
Total new products
$40M
HAEMONETICS®Partnering for Life…Making a Difference
Donor Division market opportunity exceeds $1 billion
0
200
400
600
800
1000
1200
FY06 Sales Market Potential
Dolla
rs in
mill
ions
IT
Red Cells
BloodBankPlasma
Excludes equipment sales
HAEMONETICS®Partnering for Life…Making a Difference
Arryx strengthens and diversifies our research capabilities
• June 2006 acquisition agreement • Arryx technology: particle manipulation
through laser beams and holograms • Arryx BioRyx 200 - cell manipulation
instrument for laboratory use• Technology separates platelets, red and
white cells, and bacteria from blood
COULD LEAD TO DISRUPTIVE TECHNOLOGY
HAEMONETICS®Partnering for Life…Making a Difference
Acquisition strategically expands our opportunities to new, adjacent markets
Dialysis
Infection Control
Cardiology
Orthopedics
Surgical Supplies
Durables
Wound Care
Neurological
Hemostasis
Dental Blood Equipment and Consumables
Hig
hLo
w
Mar
ket a
ttrac
tiven
ess
HighLow
Fit with Competencies
Bubble size represents market size
Maroon bubble represents some
potential markets for Arryx technology
HAEMONETICS®Partnering for Life…Making a Difference
Integration plan ensures smooth transition and capitalizes on near term revenue
• Operations to remain in Chicago• BioRyx 200 marketing plan to be
developed • Next generation products to be
developed from BioRyx 200 platform with application for other markets
• Licensing opportunities to be pursued within and outside of healthcare
HAEMONETICS®Partnering for Life…Making a Difference
Shareholder value transformation modelModel: Sustain double digit revenue and operating income
growth
Haemonetics’ Growth DriversExpand to new
markets
•Business development•Acquisitions (1)
Establish product pipeline
•R&D (4)•Partnerships•Acquisitions (3)
$500M markets
Grow existing markets
•Patient $600M•Donor $900M•Supply chain mgmt
$1.5B markets
