ICU Medical (ICUI) Wells Fargo 21st Annual Healthcare Conference summary

Macro environment and demand trends

• Demand and utilization remain stable, with hospital admissions and census levels supporting business needs; growth rate has decelerated compared to previous years but aligns with guidance assumptions.

• No significant negative trends observed in demand; capital equipment environment remains status quo.

Portfolio management and strategy

• Portfolio reshaping focused on building a coherent, integrated infusion business rather than maximizing growth rate.

• Recent moves, such as the Otsuka joint venture, aim to optimize capital efficiency and improve ROIC.

• Vital Care remains a less coherent part of the portfolio; no increased investment planned, and divestiture will be considered if value is appropriate.

IV systems and pump business outlook

• Growth in IV systems driven by competitive wins, refreshing the install base, and software enhancements; most recent growth attributed to competitive wins.

• Upgrade cycle for pumps expected to start next year and last three to four years, with a focus on customer satisfaction during transitions.

• Hospital financial pressures unlikely to significantly impact pump replacement schedules due to the essential nature of infusion pumps.

• Record year expected for pump business, with positive outlook extending into next year.