Welcome and Meeting Objectives Mark Beran Chief Commercial Officer Meeting Objectives • Shared Understanding of eyewear sales approach and standard work on process • Introduction and education on EyeSplash Zero™ program • Understanding tools and resources TIDI has to facilitate your success • Development of key account plans with emphasis on coordination of sales efforts • Getting to know your TIDI team and our commitment to your success October 2015- TIDI Acute Care Sales Meeting TIDI is a Leading Infection Prevention Platform… • Market leader in infection prevention products – – – – #1 market share in core offering for both alternate site and dental Used during nearly every physician and dental office visit in the U.S. Established position in growing, specialized segments for acute care High barriers to entry • 1,600+ individual SKUs – – – Disposable products High replacement frequency significant recurring revenue Branded and private label • Low-cost, non-union manufacturing – – – 524,000 sq. ft. Neenah, Wisconsin manufacturing facility Utilizes lean manufacturing principles and focused on continuous improvement Low direct labor content: less than 3% of revenue Company History 1969: Founded as Ling Products 1997: Rebranded as Banta Healthcare Group 1973: Acquired by Banta Corporation 1997: Acquired major competitor, TIDI Products Recent Events and Accomplishments Divested from Banta Corp. 2005 2006 Entered acute care PPE market with acquisition of P2 line from Sage Timely Medical Innovations added disposable eyewear and face shields Acquired by J.H. Whitney Acquired securement division of Zefon International 2007 2009 2011 2013 Implemented lean manufacturing processes 2008 Acquired Global One - removed a competitor 2010 Launched enterprise-wide continuous improvement initiative 2012 Added resources supporting new product development efforts 2014 Extensive Product Offering • 1,600+ individual SKUs – Well diversified: no single SKU > 1.6% of revenue • High velocity, disposable products = frequent replacement and recurring purchases • Protects both patients and providers from infection caused by the transfer of pathogens – Allows access to specific areas of the body for exam / procedures – Aids in patient comfort, modesty, and peace of mind Provider Protection Patient Protection Alternate Site (64%(1)) Other 23% Towels 4% CSR Wrap 9% Table Barriers 41% Pillowcases 8% Capes and Gowns 11% Dental (24%(1)) Drape Sheets 13% (1) Percent Head Rest Covers 9% Other 13% Acute Care (12%(1)) Gloves 26% Bibs 28% Custom Barriers 19% Tray Covers 15% Gauze / Nonwoven 7% Isolations Gowns 25% Paper 1% of revenue YTD June actuals (excludes pro forma for securement). Includes only medical related product sales. Eye / Face Shields 43% Cabinets 5% Extensive Product Offering – Alternate Site Barrier Products: Exam table, towels, pillow case covers Patient Apparel and Draping: Gowns, capes, shorts, vests, drape sheets Equipment Covers and Sheaths Custom barriers for equipment frequently used in the healthcare setting Extensive Product Offering – Dental Bibs and Towels Tray Covers and Headrest Covers Custom Barrier Products Proprietary intra-oral camera sheaths and x-ray sheaths made for specific OEM devices Extensive Product Offering – Acute Care Cabinets House PPE products at the point of use Allows for rapid access to essential protection products Visual reminder to alert employees of an isolation area Isolation Gloves and Facemasks P2® facemasks protect from infectious diseases and hazardous chemicals P2® specialty gloves for chemotherapy or sterile processing Eyewear and Face Shields TIDI Tower® point of use Disposable Eye Shields FlipEase® pre-assembled, fully disposable eye wear A Strong Culture of Continuous Improvement • Relentless focus on driving value for customers • Proactive approach to understanding and addressing customer and end market users’ needs • Agile management team continually refining strategy to remain on the forefront of a dynamic industry • Continuous improvement culture with highly engaged, non-union workforce Lean Principles Drive Continuous Improvement Culture Company-Wide Focus on Creating Culture of Continuous Improvement • 2006 – 2010: Focus on improving productivity in manufacturing operations • Effort culminated in a radical reconfiguration of the flow of the manufacturing facility – Improved material flow resulting in reduction of 14,000 miles of material “travel distance” within the facility 2011: Focus on continuous improvement enterprise-wide as a business strategy to drive revenue growth and enhance margins • – – Enterprise-wide Value Stream Map – Regularly scheduled week-long Rapid Improvement Events throughout the year 2012 – 2014: Discipline & Structured process – Lean governance and prioritization by Lean Steering Committee and Lean Coordinator – Use of Strategy Deployment in ensuring performance to plan and accountability 2014 and Beyond True North “Create Value for the Customer” Proliferation of visual/daily management methods and A3 problem solving Cultural transformation using the Shingo Model of Operational Excellence Extensively documented processes contributing to a highly scalable platform Longstanding Relationships with Blue-Chip Customers 20 Year Average Tenure with Top Ten Customers • Value-added partner to premier national healthcare distributors – Works in collaboration with customers to develop new products – Category leadership helps influence and advise on SKU assortment and consolidation plans – Intense focus on improving and driving efficiencies in customers’ supply chain and logistics – Significant and important supplier • Validated by numerous customer awards – Category Captain at McKesson – McKesson 2014 Private Label Supplier of the Year Primary Care – Henry Schein Top 25 Priority Supplier – Henry Schein 2013 Medical Surgical Partner of the Year • Differentiated commitment to customer service – High levels of product quality – Consistent, reliable service Select Customers TIDI Strategic Initiatives • Drive the opportunity in Eye/Face protection – Focus on Assembled Eyewear Dispensers • TIDIShield Grab ‘n Go in the TIDI Tower • TIDIShield Flip ‘n Go – Develop and introduce new one-piece face shield product – Test an aggressive program in the dental channel • Strengthen Hand-Held Barrier business – Rebranded line under the TIDIShield name – Recently launched Dental Curing Light Sleeves – Continue supplying P&G Europe (Braun) • Optimize the core – Recently completed a deal to expand the core physician office paper business with McKesson • Integrate and grow the new securement business – Grip-Lok brand acquired 2Q14 Strategic Rationale for Securement Operation 1 On Trend with Infection Prevention and Patient Safety 2 Expands High Margin Product Offering 3 Diversifies Product Mix, Geographic Mix, and Channel Access 4 Expands TIDI’s Medical Device Manufacturing Capabilities with a “Controlled Environment” 5 Expands TIDI’s Expertise by adding Higher Acuity Medical Devices Securement Update Products Universal Works with virtually any line or tube Customers require fewer product models and less compatibility issues Largest user base Lower cost than competitive options Well-known brand Neonatal PICC / CVC Used to secure PICC or CVC catheter at “hub” Universal design and brand specific models Fastest growing securement category Designed for fragile skin Universal design for virtually any line or tube Unique model to the market Foley Other Secures Foley catheters at “Y” section Universal design – not brand specific Reduces hospital acquired infections Numerous niche applications Several products under development Patent protection Questions?