Michael L. Levitz Chief Financial Officer. November 15, 2017 Investor Presentation

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Transcription:

Michael L. Levitz Chief Financial Officer November 15, 2017 Investor Presentation

Forward Looking Statement This presentation may contain forward-looking statements concerning Insulet's expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects on Insulet. There can be no assurance that future developments affecting Insulet will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond its control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, and other risks and uncertainties described in its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 28, 2017 in the section entitled "Risk Factors," and in its other filings from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of its assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Insulet undertakes no obligation to publicly update or revise any forward-looking statements. 2017 Insulet Corporation, Omnipod, the Omnipod logo, Dash, Horizon and Podder are trademarks or registered trademarks of Insulet Corporation. All rights reserved. All other trademarks are the property of their respective owners. The use of third party trademarks does not constitute an endorsement or imply a relationship or other affiliation. 2

Insulet (PODD): Above-Market Growth on a Differentiated Platform 2017 Financial Guidance * 2021 Financial Targets $456 - $459 Million Revenue 25% Growth at Mid-Point $1 Billion Revenue 20%+ CAGR ~60% ~70% Positive EBITDA Positive EBIT in 2018 Gross Margin Up 200+ bps Above-Market Profitability Gross Margin Opportunity Sizable and under-penetrated market Execution drives near-term growth Going direct in Europe is transformational opportunity for revenue and margin expansion Innovation and Drug Delivery accelerate growth Experienced and talented team Product Platform Highly differentiated (simple, wireless) Convenience, compliance and control Innovation leverages platform for multiple applications and automated manufacturing Expansion from device to mobile High (and growing) quality and reliability while decreasing cost * As provided on Insulet s November 2, 2017 earnings call. 3

Significant Growth Opportunity 4-5% Share of U.S. type 1 diabetes market 1-2% Share of international type 1 diabetes market <20 Countries today <1% Share of type 2 diabetes market 2 Non-insulin drugs approved with the Omnipod platform Insulet internal analysis, International Diabetes Federation. Numbers are approximate. 4

Diabetes is a Worldwide Epidemic Global Patients Diagnosed 1 (in Millions) Global Diabetes Expenditure 2 ($ in Billions) [VALUE] 366 $376 $490 2000 2030 2010 2030 Global epidemic presents significant unmet need and market opportunity 1. http://care.diabetesjournals.org/content/27/5/1047 2. Economic impact of Diabetes; Ping Zhang; IDF Diabetes Atlas 4th edition 5

Omnipod Significantly Reduces Burden of Multiple Daily Injection (MDI) and Pump Therapy (CSII) Fewer Injections than MDI 80% of the Market Fewer Components than CSII 20% of the Market vs. vs. Omnipod: 1 MDI: 14+ Injections Required Per Pod (Average of 4.5/day) 1 Omnipod System Globally, majority of market relies on inferior, burdensome MDI as primary therapy; Omnipod simplifies life and improves outcomes Conventional Insulin Pump 6

Simplify the Transition from Multiple Daily Injections (MDI) # IFU Steps Required for Basal/Bolus Insulin Therapy Over 72 Hours 1 Reduced Burden for Clinicians and MDI Patients 3 days of nonstop insulin delivery* Fewer steps required for basal/bolus therapy Less complexity may improve adherence 2 Comprehensive data management (Glooko) *Up to 72 hours of insulin delivery Insulet internal data. 1. The methodology employed is derived from the average number of steps required to take an insulin injection from either an insulin pen or a syringe and vial method based on the manufacturer s Instructions For Use (IFU) for commercially available syringes and pens for low, medium and high case MDI users. The assumption on use levels is as follows: Low 2 shots/day, medium 4 shots/day, and high 6 shots/day. 2. American Diabetes Association. Promoting health and reducing disparities in populations. Sec. 1. In Standards of Medical Care in Diabetesd2017. Diabetes Care 2017; 40(Suppl. 1):S6 S10. 7

Reduce the Complexity of CSII Insulin Management # IFU Steps Required to Initiate Insulin Delivery 1 55 45 37 Reduced Burden for Tubed Pump Patients 3 days of nonstop insulin delivery* Fewer steps required to initiate insulin delivery Less complexity may improve adherence 2 Comprehensive data management (Glooko) 25 Omnipod System Animas Vibe MiniMed 630G Tandem t:slim 1. The methodology employed is derived from the number of steps from the point of picking up a vial of insulin to the point that the first dose of insulin is ready for delivery in each pump system. These steps were compiled from the publicly available Instructions For Use (IFU) for the insulin pump systems including, Tandem t:slim, Johnson and Johnson Animas Vibe, and Medtronic Minimed 630G. 2. American Diabetes Association. Promoting health and reducing disparities in populations. Sec. 1. In Standards of Medical Care in Diabetesd2017. Diabetes Care 2017; 40(Suppl. 1):S6 S10. 8

Drug Delivery is a Large Opportunity Significant unmet need for drug delivery self-injection devices; $10 billion global opportunity 60% Share of U.S. Neulasta Doses 50% 40% 30% 20% 10% 0% Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Amgen Neulasta partnership recently extended 9

Omnipod DASH Insulin Management System Secure Cloud Data Analytics BLE Pod BLE Blood Glucose Meter PDM (Android Locked-Down Device) User Secondary Display Mobile App Caregiver Follow Mobile App BLE = Bluetooth Low Energy PDM = Personal Diabetes Manager NOTE - Investigational Device. Limited by Federal (or United States) law to investigational use. 10

One Digital Platform Many Products Innovating to Simplify Life Omnipod Today DASH Mobile Platform* Horizon Automated Glucose Control System* Drug Delivery Platform Better Control Better Quality of Life Forbes 2017 Most Innovative Growth Companies *Investigational Device. Limited by Federal (or United States) law to investigational use. Device depiction is not currently cleared or pending clearance with the Food and Drug Administration. 11

Financials $500 $450 ~$457M 62.0% 60.0% Approaching [VALUE] Revenue ($M) $400 $350 $300 $250 $200 $150 $263.9M $367M +39% +25% Drug Delivery OmniPod 58.0% 56.0% 54.0% 52.0% 50.0% 50.5% 57.5% $100 48.0% $50 46.0% $- 2015 2016 2017 (Est.) 44.0% 2015 2016 2017 (Est.) 2017 Revenue Guidance = $456M - $459M * Gross Margin *As provided on Insulet s November 2, 2017 earnings call 12

Sustainable Cost Per Pod Reduction Opportunities Key Takeaways Continued sustainable cost savings Manufacturing Conversion Yield Components ~15% Cost Reduction Manufacturing Conversion Components Freight ~15-20% Cost Reduction Conversion savings through improvements in equipment utilization and labor efficiency Components savings by improved contractual agreements and competitive bidding 2015 2016 2021 (Est.) / / Savings by ocean freight and U.S. manufacturing Supply chain continues to drive significant margin growth in 2017-2021 13

2021 Targets $1 Billion in Revenue (20%+ CAGR) Above-market growth Strong momentum across businesses, each with 20%+ CAGR Growth on continued execution, new products and market access Approaching 70% Gross Margin Continue to raise the bar on quality and efficiency Clear line of sight to a target approaching 70% Expansion principally from operations improvements and U.S. automated manufacturing Additional margin improvement from going direct in Europe beginning on July 1, 2018 Other commercial opportunities across product lines Above-Market Profitability Leveraging investments to deliver above-market returns Experienced and talented team established High quality, reliability and decreasing cost 14

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