STERIS Plc (Ireland) 8-K Regulation FD Disclosure

STERIS Corporation’s 2005 Analyst Day

Exhibit 99.1

2

Except

for

historical

information

discussed,

today’s

presentation

includes

forward-

looking

statements

that

involve

risks

and

uncertainties.

Investors

are

cautioned

that

such

statements

are

only

predictions

and

that

actual

events

or

results

may

differ

materially.

Some

of

the

factors

which

could

cause

actual

results

to

materially

differ

from

those

anticipated

by

the

forward-looking

statements

are

set

forth

in

the

Company’s

latest

SEC

Filings

on

Forms

10-K

and

10-Q

and

in

its

earnings

release

dated

November

9,

2005.

Further,

these

forward-looking

statements

speak

only

as

of

November

15,

2005.

We

undertake

no

obligation

to

publicly

release

the

results

of

any

revisions

to

the

forward-looking

statements

made

today

to

reflect

events

or

circumstances

after

today

or

to

reflect

the

occurrence

of

unanticipated

events.

Forward Looking Statements

3

Today’s Agenda

>

STERIS Overview –

Les Vinney

>

Financial Overview –

Laurie Brlas

>

Healthcare –

Chuck Immel

>

Luncheon –

Dr. Steve Gordon, Chairman, Infectious Diseases,

Cleveland Clinic Foundation

>

Life Sciences –

Gerry Reis

>

Isomedix –

Robert Moss

>

Wrap-up

and

Questions

–

Les

Vinney

4

Today’s Objectives

Our purpose in hosting this event is to provide you with:

>

An increased understanding and knowledge of STERIS

>

The opportunity to hear directly from the leadership of the Company

>

An enhanced perspective on our industry and opportunities

>

The ability to interact with our senior management team

Company Overview

Presented by Les C. Vinney

President and CEO

6

Reasons to Consider STERIS

>

We are a market leader

>

Strong underlying industry demand

>

Stable company with strong financial position

–

Solid cash generation

–

Low debt levels

>

Substantial opportunities for growth in new markets and

geographies

>

Consistent revenue stream, with 58% recurring revenues

through the sale of consumables and service

7

Over Arching Vision

To See The World Free From

Infection And Contamination

8

Unique Product Offering

This balanced revenue stream

allows us:

–

A stronger competitive position

–

Protection from capital spending

cycles

–

Higher margins from

consumables and service

–

The ability to offer customers a

total solution

Balanced Revenue Stream

YTDFiscal 2006

Capital

Equipment

42%

Services 35%

Consumables

23%

9

Healthcare (Hospitals and Surgical Centers)

>

OR and Critical Care Equipment

>

Sterile Processing Capital Equipment

>

Consumables

>

Equipment Maintenance and Process Consulting

Life Sciences (Pharma

Production & Research, Defense)

>

Pharmaceutical Production

>

Research and Biohazard Containment Labs

>

Defense and Aerospace

>

Industrial Decontamination

STERIS Isomedix Services (Contract Sterilization)

>

Single-use Medical Devices and Surgical Kits

>

Personal Care Products

>

Packaging, Labware

Where you will find STERIS

Three Reporting Segments

YTD

Fiscal 2006 Revenues

Healthcare

68%

Isomedix

11%

Life Sciences

21%

Growth Drivers

11

Key Growth Drivers

Market Growth

Improve Execution

Diversify Revenue

Sustainable Profitable Growth

12

Industry Growth Drivers

>

Healthcare:

–

Organic growth of 3-5%

–

Drivers = aging population, surgical procedure growth, hospital spending on

construction, concerns over hospital acquired infections

>

Life Sciences:

–

Organic growth of 8-10%

–

Drivers

=

aging

population,

drug

consumption,

ongoing

investment

in

drug

production

(new

and

generic),

increased

FDA

pressure

on

cleaning

validation

>

Isomedix:

–

Organic growth of 5-7%

–

Drivers = medical device consumption, sterilization outsourcing

13

>

Increase

recurring revenues

>

Leverage

our channel

>

Introduce new technologies

>

Adapt

our technologies

>

Expand

internationally

Diversify revenue stream by product, service,

market and geography

Growth Strategy

14

Recent Progress

>

Integration of recent acquisitions going well

–

Browne product conversions in US

–

C-Max table launched in US

–

Cosmed

contributing strongly

>

New Product Pipeline Strengthening

>

New Market Opportunities

–

Ambulance decontamination first orders in

–

Prototype testing with government agencies

–

Joint ventures within food & beverage industry

>

International Offices and JV in Asia

15

New Innovations

Reliance®

Endoscope Reprocessor

HAMO LS2000 Endoclean

16

Tackling Emerging Threats -

MRSA

>

MRSA: an antibiotic-resistant

bacteria plaguing the UK.

>

Reviews of death certificates which

mention MRSA

show a

15 fold

increase since 1992.

>

300,000

cases

of

hospital

acquired

infection ,

causing

around

5,000

deaths

and

costing

the

NHS

as

much

as

£1

billion.

>

Patient transport can spread this and

other deadly diseases without proper

decontamination.

17

Actions to Improve Execution

Performance Transformation Initiative Targeting

Improvements In:

>

Business Processes

-

Becoming a market-led organization

-

Focusing on lean operations

>

Management Processes

-

Improving planning, talent and performance management

>

Mindsets & Behaviors

-

Embracing a singular culture “The STERIS Way”

18

Why own STERIS?

>

Market leader

>

Growing markets

>

Strong financial position

>

Substantial opportunities

>

Consistent revenue stream

STERIS Corporation’s 2005 Analyst Day

STERIS Corporation’s 2005 Analyst Day

Laurie Brlas, Senior Vice President and CFO

2

Fiscal 2006 Second Quarter Recap

11.7%

9.5%

Operating Margin……..

(11%)

$0.27

$0.24

Diluted EPS……………

(13%)

$18.9

$16.4

Net Income…………….

Change

2004

2005

(13%)

$30.9

$27.0

Operating Profit………..

42.1%

40.9%

Gross Margin…………..

4%

111.5

116.2

Gross Profit…………….

7%

$264.8

$284.4

Total Net Revenues…..

Fiscal 2006 Quarter Ended September 30, 2005

(in millions, except EPS)

3

Second Quarter Revenue Mix

Capital 43%

Life Sciences 21%

Isomedix 11%

Healthcare 68%

Service 35%

Consumables 22%

Fiscal 2006 Quarter Ended September 30, 2005

4

Second Quarter Segment Data

13%

4.4

5.0

Operating Profit………..

18.1%

15.5%

Operating Margin

(1.3%)

(1.2%)

Operating Margin

15.2%

11.7%

Operating Margin

Isomedix

Life Sciences

Change

2004

2005

Healthcare

32%

$24.2

$32.0

Revenues………………

N/A

(0.8)

(0.7)

Operating Profit………..

(5%)

$61.4

$58.4

Revenues………………

(16%)

27.3

22.8

Operating Profit………..

8%

$179.2

$194.0

Revenues………………

Fiscal 2006 Quarter Ended September 30, 2005 (in millions)

5

Cash Flow *

Fiscal 2006 Period Ended September 30, 2005 (in millions)

2Q06

$4.1

$28.6

Free Cash Flow…………..

15.0

14.6

Capital Spending…………….

$19.1

$43.2

Cash from Operations…..

2Q05

1H06

1H05

$84.3

$61.4

22.7

25.5

$61.6

$35.8

* Free cash flow is defined as operating cash flow less purchases of property, plant, equipment, and

intangibles, net (capital expenditures).

Financial Overview

7

Total Company Revenue Growth

0

50

100

150

200

250

300

350

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

2003

2004

2005

2006

(in millions)

8

Healthcare Revenue Growth

(in millions)

0

50

100

150

200

250

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

2004

2005

2006

9

Life Sciences Revenue Growth

(in millions)

0

10

20

30

40

50

60

70

80

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

2004

2005

2006

10

Isomedix Revenue Growth

(in millions)

0

5

10

15

20

25

30

35

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

2004

2005

2006

11

Gross and Operating Margins

0.0

10.0

20.0

30.0

40.0

50.0

2002

2003

2004

2005

2006

Operating Margin

Gross Margin

(percentage)

Estimate

12

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

2002

2003

2004

2005

2006

Quarterly Diluted Earnings Per Share

Current Financial Position

14

Strong Financial Picture

>

Low level of debt

>

Strong free cash flow

>

Capacity to fund growth

15

Strong Cash from Operations

Cash From Operations and Capital Spending (in

millions)

$102

$142

$133

$123

$151

$51

$66

$59

$68

$56

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

Cash from Operations

Capital Spending

16

Capital Spending

Healthcare

26%

Life

Sciences

8%

Isomedix

35%

R&D

5%

IT

12%

Other

14%

Estimated

Fiscal 2006

$60-65 million

17

Priorities for Cash

>

Fund growth through acquisitions

>

Share buybacks

–

1.6 million shares repurchased in first half fiscal 2006

>

Fund dividend payments

18

Acquisition Criteria

>

Strong financial discipline and detailed integration

>

Strategic fit

–

Expand internationally

–

Leverage healthcare channel

–

Drive recurring revenues

–

Improve technology offering

>

Targeted accretion in year one

>

Exceed ROI hurdle rate of 15%

19

Quarterly Long-Term Debt-to-Capital

0

10

20

30

40

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY 2002

FY 2003

FY 2004

FY 2005

percentage

FY 2006

Outlook

21

Our Current Financial Outlook

Including acquisitions and divestitures:

>

Revenue growth of 6-8%  

>

Earnings per share of $1.30 to $1.34 (6-9% growth)

>

Free cash flow of $85-90 million  (before acquisitions)

>

Capital spending approximately $60-$65 million

>

Depreciation and amortization $55-60 million

Fiscal 2006 Outlook

STERIS Corporation’s 2005 Analyst Day

Charles L. Immel,  Healthcare

2

Business Definition

A leading provider of an integrated offering of equipment, consumables,

and services to healthcare providers, enabling them to reduce cost and

improve outcomes in the surgical and acute care environments.

Sterile

Processing

Surgical &

Critical Care

Service

Service

BUSINESS UNITS

PRODUCT MIX

FY05

$764 Million

Recurring

Revenue

Surgical Tables

and Lights

Washers and

Sterilizers

Consumables

3

Surgical Environment

4

Sterile Processing Environment

5

Core Strengths

>

Integrated offering of capital equipment, chemistries,

and services

>

Service force of more than 1,000 professionals

>

Strong brand and channel in North America

>

Significant active installed base of equipment

>

Base of platform sterilization and disinfection

technologies

Industry Overview

7

Healthcare by Product Type

STERIS

STERIS

STERIS

STERIS

$1.8B

$1.4B

$1.6B

$0.5B

$15 –

17B

Adjacent

Markets

Served

Markets

•

Total served market size

greater than $5 billion

with low to mid single

digit growth rates

•

Global markets with

regional differences in

medical practice and a

diverse set of

competitors; STERIS has

a strong competitive

position in North America

•

Growth is tied to

replacement cycle,

capacity expansion,

technology innovation,

and procedure growth

3M

Ecolab

Regent Medical

Aesculap

Cardinal

Other

J&J

Getinge

Belimed

Sakura

Cantel

Other

Getinge

Hill Rom

Berchtold

Mizuho

Other

In-house

3rd

Party

STERILE

PROCESSING

SURGICAL/

CRITICAL CARE

SERVICES

Growth rate

3 –

4%

3 –

4%

2%       

Consumables

Capital & Integrated

Consumables

8

Base Market Growth

•

“Boomers”

continue to

increase demand for

acute care procedures

•

U.S. Hospital capacity

gaps drive robust

construction spend,

particularly in surgical

and critical care

$0

$5

$10

$15

$20

$25

$30

0

5

10

15

20

25

30

35

40

45

50

Sources: F.W. Dodge, The Outlook for Healthcare Facilities (Q3 2005);

Medtech

Insight Forecasted growth in Surgical Procedures

U.S. Healthcare

Construction Spending

3% CAGR

5% CAGR

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Strategy

10

Strategy

>

Create capital equipment and recurring revenue

synergies

>

Expand product portfolio and leverage the North

American sales and service channel

>

Introduce new technologies

>

Build international presence through selected

partnerships, acquisitions, and new technology

introductions

11

Sterile Processing Needs Assessment

>

Instrument throughput, loss,

handling

>

Chemistry management

and effectiveness

>

Appropriate and consistent

use of sterility assurance

products

>

Appropriate asset and labor

utilization

Surgical

Case

Scheduled

Organization

and Preparation

of Case Carts

Transport

of

Case Carts

Opening

of

Sterile Trays

Starting

Instrument

Counts

Handling/Passing

of Instruments

During Procedure

Use of Sterilizers or

Back-up Suppliers

During Procedure

Ending

Instrument

Counts

Operating

Room

Clean-up

Transport

of

Instruments to CS

Pre-Wash

Washing

Assembly

Sterilization

Tray

Distribution/

Storage

Historical Focus

Future Opportunity for Impact

Hospital Sterile Processing

Challenges:

12

Recurring Revenue Growth

Opportunity for Improved Recurring Revenue Growth Is

Substantial on Current Installed Base of Sterile Processing Equipment

*  Cost/Cycle includes: Detergents, Indicators, Wraps/Trays & Service

$330 million

$125 million

Annual

Consumable

Revenue

Opportunity

$10.00

$9.00

Average

Consumable

Cost/Cycle*

Steam

Sterilization

Washing

Systems

13

Recurring Revenue Growth

2001

2006

>

Launch of Synergy washer with

validated chemistries, reducing cycle

time from 45 minutes to 25 minutes

>

Acquisition and North America launch

of Browne chemical indicators

>

Launch of concentrated form of liquid

cleaning chemistry

>

Introduction of Steriltek

consulting

services

Healthcare Recurring Revenue

7% CAGR

14

Revenue From New Products

2004

2005

2006

Key Product Introductions

>

Synergy

®

Washer

>

Amsco

®

Century

®

Steam Sterilizers

>

Harmony

TM

LA

Surgical

Lights

and

Equipment Management Systems

>

Surgigraphic

TM

Surgical

Table

>

Amsco

®

Containers

>

Verify

®

Chemical Indicators

>

Hamo

®

Endoclean

>

Reliance

®

EPS

>

CMAX

TM

Surgical

Table

>

SterilTek Consulting Services

15% CAGR

Healthcare New Product Revenue

15

International Expansion Update

2001

2006

>

Acquisition of Hamo

Holding AG

>

Acquisition of Albert Browne, Ltd.

chemical indicators

>

Acquisition of FH Surgical SAS

>

Joint venture with Shandong SHINVA

Medical Instrument Company Ltd.,

Chinese sterilizer manufacturer

>

Added organizational infrastructure in

Europe, Asia, and Latin America

International Revenue

20% CAGR

16

Low Temperature Processing

>

Enter higher growth

GI applications with

differentiated HLD

product offering

Hamo®

Endoclean

Reliance®

EPS

>

Improve market

segmentation

>

Maintain global

focus on surgical

applications

>

Explore alternative

technologies

Sterilization

High level disinfection

Processing

Modality

$7 -

$20

$1 -

$7

Per Cycle Cost

Johnson & Johnson

3M

Ethylene Oxide suppliers

Other

Medivators

Olympus

Custom Ultrasonics

Other

Competition

2 –

4%

5 -

7%

Growth

$500 Million

$400 Million

Market Size

Surgical Application

GI Application

17

Expanded Offering in Surgical and Critical Care

>

Revenue per room ranges

from $35 thousand to $120

thousand

>

Develop appropriate price

point for each segment

>

Capture larger portion of

operating room spend

>

New Offerings

CMAX™

high-end surgical

tables

Lower tier surgical tables

Harmony™

“Lux

Classic”

mid-tier lighting system

3,800 Rooms

$215M

High End

800

General

1,100

Basic   

1,900

$88M

41%

$63M

29%

$64M

30%

New U.S.

Operating

Rooms / Year

Equipment

Spend

Source:

AHA

Annual

Survey,

Dec

2004;

U.S.

Market

for

Video

and

High

Tech

Devices;

Millenium

2005

18

Margin Improvement Actions

Unfavorable Factors

•

Steel, chemicals,

fuel, wage, and

benefit increases

•

Geographic mix

•

Initial impact and

integration of

acquisitions

Improvement Initiatives

•

Global strategic

sourcing investment

•

Lean initiatives

•

Manufacturing

network optimization

•

Pricing actions and

other market

initiatives

Near-term margin

pressure will begin to

improve over the next 6

to 12 months

19

Summary

>

Underlying market demand driven by surgical procedure growth,

new construction to address provider capacity gaps, and

ongoing need to address nosocomial

infections

>

STERIS has core strengths in channel and technology platforms

>

STERIS growth will be driven by expanding the offering

(product/geography), capitalizing on the value of capital and

recurring revenue synergies, and new technology introductions

STERIS Corporation’s 2005 Analyst Day

Gerry Reis, Life Sciences

2

Business Definition

A

global

provider

of

decontamination

and

sterilization

technologies,

products

and

services

used

by

research

facilities,

pharmaceutical

companies,

defense

and

industrial

customers.

Our

offerings

prevent

contamination

and

the

spread

of

infection

and

enhance

the

productivity

of

our

customers’

critical

operations.

3

Revenue Mix

FY05

$251 Million

Capital Equipment

Consumables

Services

Pharma Production

Research

Defense and Industrial

BUSINESS UNITS

PRODUCT MIX

4

Pharmaceutical and Research Business

A Fundamentally Attractive Market 

Size and Growth in Current Applications

Served Market Size

(current segments)

$ Millions

Growth Rate Percent

6-8%

10-12%

Research

Pharma

632

750

5

Industry Drivers

Observations:

•

Pharmaceutical industry consolidation continues

•

Generics and bio-pharmaceutical outpacing

pharmaceutical 

•

Increased regulatory scrutiny

•

Usage of validated cleaning chemistries increasing

•

Regulatory changes forcing innovation

•

Increased demand for vaccines associated with avian flu,

bioterrorism, etc.

6

STERIS

STERIS

Getinge

Scientek

Girton

Fedegari

MECO

Mueller

Other

6-8%

North America

$106M (35%)

Europe

$111M (38%)

ROW

$79M (27%)

STERIS

Getinge

Fedegari

Christ

SBM/Bosch

Stilmas

Other

Getinge

Relimed

Sakura

SBM/Bosch

Xinhua

Zibo

Other

5%

15-20%

(‘05 –

‘10 CAGR)

Pharmaceutical Capital

Total

$300M

7

STERIS

STERIS

5-7%

North America

$200M (39%)

Europe

$162M (31%)

ROW

$154M (30%)

STERIS

5%

5-12%

Getinge

Primus

Miele

Labconco

Other

Getinge

Tuttnauer

Tecniplast

Miele

Other

Getinge

Tecniplast

Miele

Xinhua

Other

Research Capital

(‘05 –

‘10 CAGR)

Total

$520M

8

14 %

12 %

(‘05-'10 CAGR)

12 %

Pharmaceutical

Consumables

Total

$450M

Consumables

North America

$200M (44%)

Europe

$180M (40%)

ROW

$70M (16%)

STERIS

STERIS

STERIS

STERIS

STERIS

7 %

5 %

('05-'10 CAGR)

7 %

North America

$55M (49%)

Europe

$38M (34%)

ROW

$19M (17%)

Research

Consumables

Total

$112M

Commodity

Solvents

Other

Formulated

Veltek

Other SAP

Other

Commodity

Solvents

Other

Formulated

Shield

Ecolab

Other SAP

Other

Commodity

Solvents

Other

Pharmacal

Alconox

Other

Formulated

Other

Other

Formulated

Other

Commodity

Other

Formulated

Other

STERIS

9

Service –

A Competitive Advantage

Observations:

•

Our

global

network

of

service

professionals

represents

a

competitive

advantage

•

Higher

margin

services

and

spare

parts

business

is

enabled

by

our

capital

equipment

business

•

We

are

integrating

our

service

and

capital

offering

10

Growth and Profitability Strategy

•

New direction

•

Improve economics

of capital business

•

Grow recurring

revenues

Turn Around of P&R

New Market

Opportunities  

Decontamination

technologies and services

for:

•

Ambulances

•

Patient care rooms

and other facilities

•

Military/defense

applications (aircraft,

sensitive electronics

and equipment, etc.)

•

OEMs in new

segments (e.g. food

& beverage

+

11

A New Direction

New Direction

•

Under Penetrated Segments: Research,

generics, bio-tech, cosmetics, high-level

containment laboratories

•

Under Penetrated Regions: Eastern

Europe, Middle-East, China, Japan,

Singapore

Former Strategy

Depth

in the

pharmaceutical

aseptic core

One-stop shop for

capital requirements:

•

Sterilizers 

•

Water stills

•

Isolators

•

Washers

•

Handling

systems etc…

Breadth:

Leverage core technologies

(capital systems, services and formulated

chemistries) into under penetrated

market segments. Global partnerships

with the major pharmaceutical companies

12

Improve Economics of Capital Business

1.

Redesign for lower cost

manufacturing

2.

Outsource non-critical

components

3.

Implement lean

manufacturing practices

4.

Balance loading of factories

5.

Develop manufacturing

capability in China

Finn Aqua

®

Pure 

Steam Generator

Finn Aqua

®

GMP Sterilizer

13

Grow Recurring Revenues

>

Launch Albert Browne sterility

assurance products

(Steraffirm™)

>

Prioritize sales and marketing

around high-margin spare parts

>

Enhance offering around

chemical storage and delivery

>

Integrate service offering with

capital

Cage-Klenz

®

Cage Washing Detergents

CIP 100

®

14

New Market Opportunities

Life Sciences is working with defense agencies, first responders,

and other industrial customers to explore the development and

adaptation of its technologies for use in decontaminating: 

–

Airplanes

–

Ambulances

–

Buildings

–

Food and Beverage Filling Lines

15

New Market Opportunities -

Progress

•

Partnerships with U.S Army’s Edgewood Chem-Bio Center

and other organizations within the U.S. Department of

Defense

•

Development of the only known gaseous technology capable

of decontaminating both chemical and biological warfare

agents

•

Multiple successful ambulance and room decontamination

trials completed (with initial sales outside North America)

•

Joint Development Agreement with the world’s largest

packager of liquid food products

16

Summary

>

Strong underlying growth driven by generics and bio-

pharmaceuticals, increased regulatory scrutiny, and aging of

baby boomers

>

New leadership team in place along with a stabilized and

competent sales and market team

>

Well positioned to leverage our success in under penetrated

segments and regions

>

Turnaround plan in place to return Life Sciences segment to

growth and profitability

STERIS Corporation’s 2005 Analyst Day

Robert Moss, STERIS Isomedix Services

2

STERIS

Isomedix

Services

is

a

leading

provider

of

sterilization,

microbial

reduction ,

and

materials

modification

services

to

medical

supply,

pharmaceutical,

consumer ,

and

industrial

customers.

STERIS

Isomedix

Services

provides

its

customers

safe,

effective

processes

in

a

timely

and

cost

effective

manner.

Through

exemplary

customer

service ,

process

quality ,

a

focus

on

efficient

turnaround ,

and

the

ability

to

develop

and

manage

complicated

partnerships ,

we

deliver

customer

value.

STERIS Isomedix Services Definition

3

Revenue Mix

Gamma

Ethylene

Oxide

MARKETS SERVED

SERVICE MIX

FY06 EST

Approx. $130 Million

Healthcare Medical

Consumer

Healthcare Other

4

>

Responsive to customer needs

>

Capacity –

monitor customer needs to meet demand

>

Proximity –

we serve all key geographies in North America with

21 facilities

>

Flexibility –

we offer all three key technologies, Gamma, EO and

E-beam

>

Experience –

we have been in the business for 32 years

>

Newer

“all-in-one”

processing

capability

–

Cosmed

acquisition

Key Strengths

5

San Diego, CA

Waukegan, IL

Grand Prairie, TX

South Plainfield, NJ

Coventry, RI

Our Business –

Geographic View

6

>

Advantages

>

Proven reliability

>

Broad application

>

Limitations

>

Pharmaceuticals

>

Plastics

>

Industries / Products

>

Medical Devices &

Supplies

>

Food Packaging &

Spices

>

Labware

Our Business –

Gamma Irradiation

7

7

8

>

Advantages

>

Gentle process

>

High volume

>

Limitations

>

Liquids

>

Industries / Products

>

Medical Supplies and 

Kits

>

Food spices

Our Business –

Ethylene Oxide

Sterilization

9

>

Sales representatives calling on key customers

>

Process validation

>

Service agreements

>

Processing

agreement

–

customer’s

products

come

at

will

>

Commitments –

a specific quantity is determined at a

specific price and schedule

>

Slot of time –

customer reserved specific time for a specific

product for a guaranteed payment

>

Customers

>

Major public medical device and supply companies

Sales Process

10

>

Provide specific treatment customer requires

>

Technical Consultation

>

Educational Seminars

>

Customers send their finished and fully packaged products to

Isomedix for sterilization treatment

>

Receive and stage in an Isomedix warehouse

>

Transfer for the sterilization processing into an irradiation cell /

EO chamber

>

Full pallets / truckloads

>

Smaller quantities

>

Remove from the special containers / chamber

>

Same configuration

>

Documentation to stringent standard (customer and regulatory) for 

proof of sterilization

>

Sterilized products are then shipped to the specified customer

location (either to a distribution point or back to the customer)

What is the Isomedix Process?

11

>

Demographics increasing medical device consumption worldwide

>

Medical commodity manufacturing moving to lower cost labor

>

In-house processing going contract / outsourcing

>

No rapid technology change foreseen

>

New applications developing

Industry Drivers

12

>

$443+ Million In NA

>

Includes in-house

operations and industrial

applications

>

Medical manufacturer

consolidation in Europe and

US

>

Migration to Asian contract

manufacturing

North America

Europe

Other

STERIS

0%

STERIS

STERIS

0%

$742+M Worldwide

$120M

$179M

$443+M

Industry Size

In-House

Sterigenics

Other

Sterigenics

Isotron

Other

Sterigenics

Isotron

Other

13

>

Sterigenics –

offers gamma, EO, E-beam and x-ray in 40

locations worldwide

>

Isotron –

gamma, EO, and E-beam in 16 locations in eight

countries (none in North America)

>

In-house

Captive

–

trend

towards

outsourcing

as

technology/facilities

age.

Few

investments

being

made

>

Other –

multiple companies with three or less sites

Industry Competition

14

>

Business Growth

>

Grow revenue 8-10% AAGR

>

Improve “same store”

operating income year over

year

>

Customer Focus

>

Improve customer satisfaction

>

Operational Excellence

>

Enhance performance

>

Improve business process

>

Control costs

>

Leadership Excellence

>

Experienced leadership team

Growth Strategy –

Key Strategic

Imperatives

15

Number of Years

Business Model –

Typical Product Life

Cycle

16

Number of Years

Business Model –

Isomedix Services

Facility Life Cycle

17

Number of Years

Business Model –

Isomedix Services

Advantage

18

>

STERIS Isomedix Services is well positioned to:

>

Take advantage of ongoing favorable market trends

>

Capitalize on new applications for irradiation and Ethylene Oxide

>

Expand into new geographies

>

Address strategic environment

>

Competition

>

Political and regulatory

Summary

STERIS Corporation’s 2005 Analyst Day