GNT SALES GROWTH STRATEGY

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Presentation transcript:

GNT SALES GROWTH STRATEGY Table of Contents Introduction Models Markets & Drivers Create Demand For Your Unique Value Sales and Operations Alignment

Models, Market & Drivers Table of Contents Models, Market & Drivers

Full Service Medical Device Development and Manufacturing Contact: Mark Kesti - VP Sales - mkesti@needletech.com - (610) 209 2179 3/26/2015 Full Service Medical Device Development and Manufacturing Med Device Company Partner Precision Component Mfg. Device Assembly, Packaging, Labeling Regulatory Submissions & Support Sterilization Supply Chain Management Design & Engineering Services Model Contract Mfg. Outsource Services Full Service OEM Marketing R&D OEM Sales Marketing CONFIDENTIAL

Business Model Comparisons Medical Device Business Model Comparisons Source: Avg. Med Dev Company, CY ’06, Medtronic, Stryker, Zimmer, St. Jude, Biomet, Edwards, Smith & Nephew; Avg. Medical Device Contract Manufacturer, = CY ’06 Accellent, Symmetry, Synovis & Plexis OEM, 2010 estimates

MEDICAL DEVICE OUTSOURCING – GLOBAL MARKET1,2 Market Drivers OEM Addressable Global Market for Med Device Outsourcing Materials Handling and Processing: (Packaging, Metal Fabrication & Molding, Plastic Extrusion and Molding, Sterilization) Finished Products (Implantables, Single Use, Surgical Instruments, Design and Regulatory Services) 2010 Global Demand for Med Dev Outsourcing = $ 60B 2015 Global Demand for Med Dev Outsourcing = $115B In Millions of $ 13% CAGR High growth segments 1. 2009 & 2010: GIA Estimates 2011-2015: GIA Projections. Error tolerance for data in this table is 10% (+/-). Data is not adjusted for inflation. It is reported in nominal terms. Data is reported at the Contract Service Provider’s Level. Regions analyzed under Rest of World include Europe, Asia-Pacific, Latin America, Middle East & Africa 2. “Contract Manufacturing in Medical Devices” Kalorama Information, Inc., Carlson and Granderson, Feb. 2011 5

Global and regional OEMs are increasingly challenged with4: What Is Driving OEMs To Outsource and Where Do They Go? Global and regional OEMs are increasingly challenged with4: Contract Manufacturing Companies Increasing margins Accelerating time to market Maintaining Focus on core competencies (R&D and Distribution) Reducing Supply Chain costs Limited manufacturing resources and capacity Constant need for product differentiation to maintain and grow margins Shortened product lifecycles Quality products and components Regulatory compliance risks Competitive cost Reimbursement decreases Quickly scaling up and scaling down to convert fixed costs to variable More complex regulatory requirements Managing multiple contract manufactures 3,000+ Total Med Device Outsourcing Companies

The B2B Sales Process for Strategic Sales Success

Focus on High Probability High $ Value OEM Opportunities Pipeline Management Opportunity Ranking Criteria A   B C Name of Account A's = 3pts B’s = 2pts C's = 1pt Name of Opportunity Is the Lead Current Customer? Yes - Today Yes – In the Past No Can we do this? (Does the product/component fit in core manufacturing capabilities?) Yes - Entirely Yes – Outside vendors required Existing NT/GM product/component? Yes - can use existing processes and tooling No - will need to make new tooling, molds, etc. No - would need new process, operators, etc. Total 12 month expected $ value? ≥ $200,000 ≥ $100,000 < $50,000 Account Ranking Date of first, expected PRODUCTION Shipment? ≤2 quarters 3-4 quarters Is the finished product FDA approved & CE marked? Yes or not required No, but FDA filing in process by customer No; FDA filing TBD Is it THIRD Party? Yes, but we have access to end user Yes Is this a " one off " order; customer won't provide annual volume. Unsure ; R&D stage Can we make required volumes Yes, with ramp up LEAD Source Engineer / Product manager from Current End User Customer Purchasing person from Current End User Customer RFQ or inquiry from non-customer Are we able to meet the customers timeline ? No, but within acceptable timeline Budget (does the opportunity have COMMITTED $) Yes-Today No but in Process Is the "Financial" Decision Maker Identified? Is the prospect currently purchasing this elsewhere ? no Sub-total Opportunity Ranking (Total A+B+C+D) Total Points Required to be A Opp. 40+ Total Points Required to be B Opp. 32-34 Total Points Required to be C Opp. ≤31 Sales Stage $ Value per Sales Stage $ Value per Sales Stage 95 Net New Revenue Opportunities totaling $9.7M 95 Net New Revenue Opportunities totaling $9.7M

Profitable & Predictable Build the Foundation for scalable & profitable $ growth that exploits OEM CM capabilities Standardized Sales Process Segment Focus Strategic Sales Training OEM CM Manufacturing Alignment OEM CM Quality System Alignment OEM CM R & D Alignment Standardized Internal Systems Support OEM CM Model Profitable & Predictable Revenue Growth Standardized Global Sales Process Success Metrics Actual YTD $ ≥ Budget YOY Actual $ Growth ≥ Market Segment Growth Operating Income $ ≥ YTD Budget Expenses are ≤ to YTD Budget Qualified Pipeline $ ≥ Goal % of Sales Team ≥ YTD Budget Measured Customer Satisfaction > Base Line Strategic Acct. YTD $ ≥ Goal Net New $ Sales Cycle Times ≤ Goal Net New $ Opportunities Higher $ Value High Probability Shorter Sales Cycles Penetrate & Expand $ with existing OEM customers and target high growth clinical segments & global regions

Contract Mfg. Products, Components, Services Strategic Account Management Penetrate & Expand $ with existing OEM customers and target high growth clinical segments & global regions Strategic Accounts Private Label Contract Mfg Vascular Access Bone Access Biopsy Intrvntl. Onc. Cardiovascular Orthopedics Coating Line Transfer Strategic Acct. 1 ■ □ Strategic Acct. 2 ● Strategic Acct. 3 Strategic Acct. 4 Strategic Acct. 5 Stragegic Acct. 6 ■ Existing OEM □ New Opportunity ● N/A

Sales & Operations must sing Table of Contents Sales & Operations must sing

Increase sales and profits with improved infrastructure integration & alignment 2013 2014 - 2015 Future State

Main Takeaways FOCUS! It’s a huge and complex market 2. Find, Develop and Close the Needle in the Haystack 3. Align Sales with Operations to manage growth Mark Kesti Vice President Sales Galt NeedleTech mkesti@galtneedletech.com markkesti@yahoo.com 610-209-2179