Merit Medical Systems (MMSI) 43rd Annual J.P. Morgan Healthcare Conference summary

Business overview and growth strategy

• Achieved approximately $1.4 billion in revenue for the year, with a broad, profitable product line supporting reinvestment and growth.

• Growth initiatives focus on operating margins, free cash flow, and aligning employee incentives with company goals.

• Maintains a global manufacturing footprint with major facilities in the US, Europe, and Asia, supporting scale and critical mass.

• Direct sales relationships are prioritized, with OEM and distribution models used strategically in select markets.

• Board and leadership team bring deep industry and financial expertise, supporting execution and strategic direction.

Product innovation and pipeline

• WRAPSODY, a fully in-house developed product, received FDA approval and is positioned as a platform for future innovations.

• Early sales and feedback for WRAPSODY have been positive, with the sales force trained and initial cases completed successfully.

• The company is pacing WRAPSODY’s rollout to align with financial goals and will provide further guidance at upcoming investor events.

• Additional products in renal therapy and endoscopy have been added through targeted acquisitions, enhancing the portfolio.

• Ongoing R&D efforts are expected to yield further product launches leveraging the WRAPSODY platform.

Financial performance and outlook

• Delivered revenue growth at the midpoint of the 5%-7% target range for the first year of the three-year CGI plan.

• Operating margins targeted at 20%-22% and a minimum of $400 million in free cash flow over the plan period.

• Fourth quarter results exceeded internal and external expectations, with strong performance across all regions and segments.

• OEM segment rebounded with over 20% growth in Q4, and long-term prospects remain strong due to reliability and customer relationships.

• China market performed better than expected, with volume increases offsetting price pressures from volume-based purchasing.