EX-99.1 2 dex991.htm KCI INVESTOR PRESENTATION KCI Investor Presentation
Kinetic Concepts to
Kinetic Concepts to
Acquire LifeCell
Acquire LifeCell
Creating a Platform
for Accelerated Growth 
and Continued Innovation
Monday, April 7, 2008
9:00 a.m. EDT
Web Cast Presentation
Exhibit 99.1


2
2
Important Information
The tender offer described herein has not yet been commenced. The
description
contained
herein
is
neither
an
offer
to
purchase
nor
a
solicitation
of an offer to sell securities of LifeCell.  At the time the tender offer is
commenced, Kinetic Concepts, Inc. (KCI) and its wholly-owned subsidiary
intend to file a Tender Offer Statement on Schedule TO containing an offer to
purchase, forms of letters of transmittal and other documents relating to the
tender offer, and LifeCell
intends to file a Solicitation/Recommendation
Statement on Schedule 14D-9 with respect to the tender offer. KCI, its wholly-
owned subsidiary and LifeCell
intend to mail these documents to the
stockholders of LifeCell. These documents will contain important information
about the tender offer, and stockholders of LifeCell
are urged to read them
carefully when they become available. Stockholders of LifeCell
will be able to
obtain a free copy of these documents (when they become available) and
other documents filed by LifeCell
or KCI with the SEC at the website
maintained by the SEC at www.sec.gov. In addition, stockholders will be able
to obtain a free copy of these documents (when they become available) from
by contacting the companies at the address specified on the Investor
Relations section of their respective websites.


3
3
Disclosure Regarding Forward
Looking Statements
Statements
presented
which
are
not
historical
facts,
including,
but
not
limited
to,
those
relating
to
revenue
growth,
financial
targets,
product
and
marketing
prospects,
and
product
demand,
are
forward-looking
statements
and
are
subject
to
a
variety
of
risks
and
uncertainties. 
Many
factors
could
cause
actual
results
to
differ
materially
from
those
stated
or
projected.
Additional
information
concerning
these
factors
is
contained
in
the
Company’s
filings
with
the
Securities
and
Exchange
Commission.
The statements made in this presentation reflect facts and circumstances
as of April 7, 2008 and the Company does not undertake any duty to
update any statement, including any forward-looking statement, unless
required by law.


4
4
Catherine M. Burzik
President and Chief Executive Officer
Kinetic Concepts, Inc.


5
5
KCI’s Strategic Vision
A Growth-Oriented, Diversified, Global
Medtech Leader with Best-in-Class
Therapeutic Platforms
Enhance leadership position in large, underserved
markets
Rapidly commercialize innovative technologies to meet
unmet clinical needs
Sustain growth through global market leadership
Diversify revenues along multiple technology platforms
Increase shareholder value
Strategic Priorities:


6
6
6
6
LifeCell
Acquisition Rationale
AlloDerm
is
the
“Gold
Standard”
in
Tissue
Regeneration
Strattice
(Reconstructive Tissue Matrix) is the next generation
growth platform
Proven proprietary technology
Meaningfully addresses revenue concentration
Enhances revenue and earnings growth momentum
Combines proven innovators with demonstrated track records
Best-in-class technologies combine for superior clinical outcomes
Substantial opportunities in the O.R. via new relationships
Ability to leverage KCI’s global infrastructure
Technology
Technology
Leader in
Leader in
Large Growth
Large Growth
Market
Market
Diversification
Diversification
Attractive
Attractive
Combined
Combined
Opportunity
Opportunity
LifeCell
is
the
right
strategic
fit
with
KCI’s
vision
and
provides
new
technology and a complementary business platform for growth


7
7
7
7
LifeCell
at a Glance
LifeCell
is the leader in the Tissue Regeneration market, with
a proven ability to develop and commercialize advanced
biological products made from human and animal dermis
Repair and
Reconstruction
Market
Orthopedics
6%
Urogynecology
Other
12%
Market leader in high growth
segments
70%+ share of U.S. hernia
repairs using biologics
90%+ share of U.S. breast
reconstructions using biologics
Strong historical revenue and
earnings growth profile
Strattice
product expected to drive
future growth and profitability
LifeCell
Overview
2007A Revenue: $191mm
78%
4%


8
8
Meaningful Revenue Diversification
Negative Pressure
Technology Platform
80%
Negative Pressure
Technology Platform
71%
Therapeutic Support
Systems
20%
Therapeutic Support
Systems
18%
LifeCell
11%
Pro Forma 2007 Revenue Profile
Pro Forma 2007 Revenue Profile


9
9
Compelling Operational Synergies
Leverage LifeCell’s
sales force to deliver current and
planned KCI products in the Operating Room
Utilize
KCI’s
sales
force
to
deliver
LifeCell
products
in
unserved
markets, such as in the treatment of chronic
wounds
Leverage and expand KCI’s international 
infrastructure
to
launch
LifeCell’s
new
Strattice
technology in Europe  


10
10
Existing Product Synergies
Today the products are used together to manage
complex clinical situations


11
11
Technological Synergies
Superior Tissue Repair and Regeneration
Superior Tissue Repair and Regeneration
Negative Pressure
Negative Pressure
Technology Platform
Technology Platform
Regeneration
Regeneration
Tissue Matrix
Tissue Matrix
Create Optimal Healing
Create Optimal Healing
Environment
Environment
Reduce Fluid Build Up
Reduce Fluid Build Up
Rapid Revascularization
Rapid Revascularization
Minimize Inflammation
Minimize Inflammation
Speed Cellular Repopulation
Speed Cellular Repopulation
and Remodeling
and Remodeling


12
12
Global Growth Strategy
U.S., Canada,
Germany, Austria,
Switzerland, Denmark
Japan, China,
India, Middle
East
U.K., Italy, France, Spain,
S. Africa, Norway, Sweden,
Finland, Australia,
Singapore, S. Korea
KCI Maintains an Expanding Global Market Presence
KCI Maintains an Expanding Global Market Presence


13
13
Paul Thomas
Chairman, President and Chief Executive Officer
LifeCell


14
14
Marty Landon
Sr. Vice President and Chief Financial Officer
Kinetic Concepts, Inc.


15
15
Basic Transaction Terms
$1.7 billion in cash
$51.00
per
share
of
LifeCell
stock
By end of Q2 2008
Purchase
Purchase
Price
Price
Consideration
Consideration
Estimated
Estimated
Closing
Closing


16
16
Compelling Financial Profile
Meaningful
Meaningful
Revenue
Revenue
Diversification
Diversification
Accelerated
Accelerated
Revenue &
Revenue &
Earnings
Earnings
Momentum
Momentum
Improved
Improved
Margin Profile
Margin Profile
~ $200 million revenue base in
$1B+ tissue regeneration market
2007 revenue growth of ~ 35% with
highly anticipated Strattice
introduction in 2008
2007 EPS growth ~ 35%
Enhances an already strong
margin structure


17
17
Strong Post Closing Balance Sheet
Manageable
Manageable
Leverage
Leverage
Level
Level
Rapid
Rapid
Delevering
Delevering
Strategy
Strategy
Pro forma leverage of ~ 2.9x
EBITDA at closing
Strong cash flow reduces 
leverage below 1.0x EBITDA in 2010


18
18
Brief Dilution Period Provides
Rapid Value Creation
Cash EPS
Cash EPS
GAAP EPS
GAAP EPS
Becomes accretive in 2009
Significantly accretive 2010
and thereafter
Becomes accretive in 2010
Significantly accretive 2011
and thereafter


19
19
Catherine M. Burzik
President and Chief Executive Officer
Kinetic Concepts, Inc.


20
20
Summary
Substantial revenue growth and diversification
Combines market leaders with best-in-class
technologies
Opportunity for O.R. Penetration
Expand LifeCell
platform to KCI’s U.S.
hospital relationships
Drive international penetration through
KCI’s global infrastructure
Combined product development pipelines
will create new clinical solutions


21
21
Question and Answer