INVESTOR CONFERENCE · previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or revise

INVESTOR CONFERENCENew York, NYSeptember 25, 2015

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© 2015 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Certain statements in this presentation contain forward-looking statements, within the meaning of the Private

Securities Litigation Reform Act of 1995, regarding the Company’s future plans, objectives, beliefs, expectations,

representations and projections. It is important to note that forward-looking statements are not guarantees of

future performance, and the Company’s actual results could differ materially from those set forth in any forward-

looking statements. For a more in depth discussion of factors that could cause actual results to differ from those

contained in forward-looking statements, see the discussions under the heading “Risk Factors” in the Company’s

previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The

Company assumes no obligation to update or revise any forward-looking statements.

Certain financial figures presented herein have been presented on an adjusted basis (non-GAAP). Reconciliation

between non-GAAP financial measures and reported US GAAP measures are included in the appendices to this

slide deck.

Forward Looking Statements & Non-GAAP Financial Measures

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Today’s Speakers

Steve StrobelSVP and CFO

Carlyn SolomonCOO

Carlos AlonsoSVP and

President International

Taylor SmithSVP and

President Surgical Solutions

Brian LawrenceSVP

and CTO

Alton ShaderSVP and

President Front Line Care

John GreischPresident and CEO

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Hill-Rom Investor Conference Agenda

Time Topic Speaker

9:00-9:30 Introduction & Strategic Overview John Greisch

9:30-10:00 Strategic Priorities Carlyn Solomon

10:00-10:20 Financial Overview & Outlook Steve Strobel

10:20-10:40 Audience Q&A Greisch/Solomon/Strobel

10:40-10:50 Patient Support Systems Carlyn Solomon

10:50-11:10 Front Line Care Alton Shader

11:10-11:20 Surgical Solutions Taylor Smith

11.20-11:30 International Carlos Alonso

11:30-11:40 Research & Development Brian Lawrence

11:40-12:00 Audience Q&A All

12:00-12:05 Closing John Greisch

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Meeting Objectives

• Present compelling value creation story

• Review global business unit strategic priorities

• Highlight key focus areas for innovation

•Discuss long-range financial objectives

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Our Mission

Every day, around the world,

we enhance outcomes for patients

and their caregivers

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Our Hill-Rom Commitment

Our culture reflects the commitment to win

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Reshaping the Portfolio Through Acquisitions…

2015: 2014: 2012: 2008:

Portfolio evolving with focus on enhanced clinical and economic value

Surgical Solutions Front Line CarePatient Support Systems

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2009 Revenue 2015 Pro Forma Revenue

Acute CareCapital

Service/Other

Surgical

Welch Allyn

Rental

52%

33%

15%

Acute CareCapital

Service/Other

Rental

…Leading to Revenue Diversification & Margin Expansion

$360M OUS Revenue9% Adj. Operating Margin

$1.4B $2.6B

* Including $40M run-rate synergies

$1.0B OUS Revenue15% Adj. Operating Margin*

Significant revenue diversification and margin expansion

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Global structure improves accountability for strategic execution

US

Europe

ROW

US

Europe

ROW

US

Europe

ROW

Patient Support Systems Front Line Care Surgical Solutions

Organized Across Global Business Segments

$1.4B+ $770M+ $400M+

®

Note: Approximate pro forma 2015E revenue

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Strategy Focused on Addressing Industry Trends

Evolving customer needs drive our strategy

ProviderConsolidation

Provide Economic& Clinical Value

Migration to Lower Cost Care Settings

Emerging MarketsHealthcare Access

InformationConnectivity

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Hill-Rom Strategy Tied to Clinical Focus Areas

Strategic Priorities

Strategic priorities targeted at profitable growth

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Premier Partner For Healthcare Systems

Differentiated Solutions For Patient Care

World-Class Sales & Marketing

Growth Through Acquisitions

Operational Excellence

Clinical Workflow

Surgical Safety & Efficiency

Respiratory Health

Wound Care & Prevention

Advancing Mobility

Clinical Focus Areas

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Expanded scale and portfolio breadth drive our customer relevance

• Enhanced value proposition with comprehensive solutions

• Provided meaningful information to improve patient safety and caregiver efficiency

• Established Enterprise Accounts team

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Recent Successes

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Focused innovation provides differentiated solutions

• Increased R&D investment 60% since 2009

• Refreshed major product platforms to strengthen leadership positions

• Drove $330M1 revenue from new products

• Increased exposure to recurring revenue streams and surgical footprint

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Recent Successes

1 LTM revenue from new HRC and Trumpf products launched from 2010-2015 (excl. Welch Allyn)

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Driving growth while achieving SG&A leverage

• Expanded global sales presence in Asia, EEMEA & Latin America

• Drove +35% revenue growth in Top 25 IDNs through Enterprise Account team

• Enhanced marketing with clinically focused capabilities

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Recent Successes


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Continued margin expansion through disciplined expense control and operating efficiencies

• Expanded pro forma adjusted operating margin by 600 bps from 2009-2015E

• Strengthened QA/RA organization with significant investment

• Initiated global manufacturing footprint consolidation

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Recent Successes



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Strengthening portfolio through M&A capital deployment of ~$3B

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Recent Successes




Surgical Safety

& EfficiencyWound Care

& PreventionClinical

WorkflowRespiratory

Health

Advancing

Mobility

New SS picture

Clinical Focus Areas

®

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2015 – 2018 LRP Objectives

Drive annual revenue growth of 3% - 5%

Expand adjusted operating margin by 450-550 bps

Drive adjusted EPS CAGR in the mid-to-high teens

Generate strong, consistent operating cash flow

Balance capital allocation between growth investments and deleveraging

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Summary

• Strategic priorities focused on driving growth and adjusted margin and EPS expansion

• Portfolio positioned to address evolving customer needs

• Successful execution against strategic priorities continues to drive shareholder value

• Disciplined capital deployment will balance continued growth objectives and deleveraging

• Experienced management team committed to achieve long term objectives

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Carlyn SolomonChief Operating Officer


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Hill-Rom’s Strategy to Win Across Portfolio


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Business Units

Patient Support Systems

Front Line Care

Surgical Solutions

®

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Hill-Rom’s Strategy to Win


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Patient Support Systems:Extend Global Leadership Position

Unrivaled in clinical reach and portfolio breadth

Extensive PSS portfolio breadth Unique clinical advantage

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Front Line Care:Workflow Enhances Patient Outcomes

Delivering connectivity in new patient care environments

Increasing connectivity Evolving point of care

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Innovative & competitive products

Surgical Solutions: Expand Growing and Innovative Platform

Significant opportunity to grow Surgical Solutions business

Expanded commercial presence

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Best-in-Class Service Capabilities

Hill-Rom’s infrastructure creates unmatched service capabilities

Unique service capabilities Leading rental platform

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Offering innovative solutions through unmatched customer partnerships

Strengthen Global Relationships with Key Constituencies

U.S. enterprise accounts New construction Evolving customer base Global key account management

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Focused Innovation to Address Customer Needs

Target innovation at patient centric needs of healthcare providers

Past

Present

Future

Infrastructure Solutions

Connectivity

Patient Centric Care

• Acquire patient parameters through new sensing modalities

• Manage large data streams to provide predictive analytics

• Anticipate trends to improve safety and efficiency

• Balance economic and clinical value with patient experience

Innovation Focus

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Target R&D AllocationCurrent R&D Allocation

Patient SupportSystems

Front Line Care (Respiratory)

Advanced Technologies

Patient SupportSystems

Surgical Solutions

Front Line Care

Advanced Technologies

Deploy resources to accelerate revenue and margin expansion

Support Growth Initiatives with Shift in R&D Spend

Surgical Solutions

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Patient Support Systems: Adding Smart Tech to the Patient Environment

Moving from “equipment” to smart therapy

Patient Safety Patient Experience Caregiver Support

Enhance Nurse Call Platform

Skin DefenseEarly Bed Exit

Mobile Caregiver Interface

Patient Engagement

Patient Lifts

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Developing unique and highly valued innovations in Front Line Care

Front Line Care: Leveraging Welch Allyn and Respiratory Care to Deliver Innovation at the Point of Care

Welch Allyn Respiratory Care

Personalized Respiratory Therapy

The Vest® Data Tracker

MetaNeb®

Spot Vision Screener

Diabetic Retinal Screening

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Surgical Solutions: Building a Leading Surgical Solutions Platform

New product launches to accelerate growth in Surgical Solutions

Surgical Tables & Lights Spine Fluid Management

Fluid Delivery / Surgical Access

Allen® Advance Spine Table

Lateral to Prone Spine Table

Trumpf® / da Vinci® collaboration

iLED® 7

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Adapt sales and marketing approach to evolving market needs

Upgrade Sales & Marketing Capabilities to Address Evolving Market Needs

• Expand Enterprise Accounts team to address customer needs

• Focused presence in key emerging markets with more “feet on the street”

• Deliver economic value through improved clinical results

• Leverage Welch Allyn access point to adjacent markets

Provider ConsolidationEmerging Markets Healthcare Access

Provide Economic & Clinical Value

Migration to Lower Cost Care Settings

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Implement Rigorous Lean Processes Optimize Manufacturing Footprint

Optimize Manufacturing Footprint and Supply Chain

Footprint consolidation and lean supply chain to yield 150+ bps of margin expansion

Accelerate product

rationalization

Reduced complexity

Reduced lead times and costs

• SKU rationalization• Late point configuration

• Supplier consolidation

• Warehouse consolidation

• Material flow and waste reduction

• Streamline product portfolio

• Enhanced manufacturing capabilities

19 current sites to be reduced to fewer than 10

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Summary

• Invest in innovation to provide differentiated solutions

• Strengthen commercial partnerships with healthcare systems

• Enhance value creation with sales and marketing capabilities and simplified operational footprint

• Align organization around global business units to execute strategic priorities and drive accountability

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Steve StrobelSVP and CFO

Financial Overview and Outlook

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2015 Guidance1

• Reported Revenue

– FY 2015 $1.96 - $1.97 billion

– Fourth Quarter $545 - $555 million

• Adjusted Earnings per Diluted Share

– FY 2015 $2.55 - $2.57

– Fourth Quarter $0.80 - $0.82

1 Includes Welch Allyn financial results since September 8, 2015 transaction completion, including interest associated with new borrowings, but excludes one-time costsassociated with the transaction; also excludes the potential impact of a non-cash stock compensation charge (see press release for details)

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Underlying Assumptions

• Stable developed markets

• Current foreign exchange rates

• No major new entrants in main markets

• Continued modest price pressures in most businesses

• Adjusted financial results exclude special or non-recurring items1

1 - See reconciliation in appendix and Hill-Rom.com for information regarding Non-GAAP financial measures

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2015 – 2018 Long Range Projection

Creating shareholder value through sustainable growth in earnings and cash flow

Key Metric HRC + WA 2015 Estimate1 HRC + WA by 20182

Revenue ~$2B CAGR 3% - 5%

Adjusted GM% ~45% +350-450 bps

Adj. Operating Margin % ~11.5% +450-550 bps

Adjusted EPS $2.55 - $2.57 Mid-to-high teens CAGR

Operating Cash Flow ~$235M$1B+ cumulative

(FY 16-18)

Leverage 4.5x Below 3.0x3

1 Includes Welch Allyn financial results since September 8, 2015 transaction completion, including interest associated with new borrowings, but excludes one-time costs associated with the transaction; also excludes the potential impact of a non-cash stock compensation charge (see press release for details)

2 Revenue CAGR relative to full-year 2015 pro-forma revenue of ~$2.6B. All other metrics relative to “HRC + WA 2015 Estimate”, which includes contribution from Welch Allyn only during the period since the transaction completion

3 Assumes no capital deployment for M&A transactions

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2015 – 2018 Revenue Summary by Business

Consistent growth across a more diversified portfolio

Low single-digit growth Mid single-digit growth Mid single-digit growth

• Patient-centered connectivity expansion

• Enterprise selling expansion

• Deeper emerging market penetration

• Leverage strong Hill-Rom enterprise relationships

• New product introductions across the portfolios

• Improve access to OUS markets with Hill-Rom’s infrastructure

• Expanded Trumpf commercial presence in North America

• New product introductions in Trumpf and Allen

• Accelerate emerging market growth

Patient Support Systems Front Line Care Surgical Solutions

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+350-450 bps

Key DriversAdjusted Gross Margin

Adjusted Gross Margin Expansion

Significant opportunities to expand gross margin

Welch Allyn Accretion

FootprintConsolidation

Portfolio Optimization

Acquisition Synergies

Lean Supply Chain

+350-450 bps

2018E2015E

~45%

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Adjusted Operating Margin Improvement

Growth and cost discipline lead to operating leverage

• Contribution from gross margin improvement

• Continued SG&A leverage augmented by acquisition synergies

• Incremental investment in research and development focused on higher margin growth

+350-450 bps

Adjusted Operating Margin

+450-550 bps

2018E2015E

~11.5%

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Adjusted Earnings per Share

Operating improvements and Welch Allyn accretion significantly accelerate earnings growth

+350-450 bps

Adjusted EPS (diluted)

Mid to high teens CAGR

2018E2015E

• Flat share count

• Tax rate approximately 30% - 31%

• Favorable impact from deleveraging $2.55-$2.57

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Operating Cash Flow

Diversified business leads to stronger and more consistent cash flow generation

+350-450 bps

2016E - 2018E Cumulative Cash FlowOperating Cash Flow

>$400M

2018E2015E

$700M+

$300M+$1B+

CapexOCF FCF

~$235M

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Deleveraging Profile

Capital allocation will balance deleveraging and profitable growth

1Total Debt divided by Adjusted EBITDA

+350-450 bps

Total Leverage1

4.5x

Below 3.0x

2018E2015E

• Near-term focus on deleveraging

• Dividend policy will be maintained

• Assumes no acquisitions

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Summary

• Balanced growth across a more diversified portfolio

• Enhanced platform and operating efficiencies provide significant opportunities to expand margins

• Profitable growth and cost discipline will drive operating leverage

• Capital allocation will balance profitable growth with meaningful deleveraging

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Carlyn SolomonChief Operating Officer

Patient Support Systems

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+350-450 bps

Patient Support Systems: Portfolio Overview

Strong global leadership position with direct sales force presence

+350-450 bps

Customers / Call PointsBusiness Overview

PortfolioKey Sector Trends

• Continued consolidation with success linked to fewer large healthcare networks

• Demand for device connectivity and decision support analytics

• Increased focus on patient experience and satisfaction

ROW

EuropeUS

$1.4B+

Opportunity: $3.5B

Market Growth: Flat to low single digits

• Integrated Delivery Networks

• Acute care hospitals

• High acuity long-term care

• C-Suite, Procurement, Architect, Biomed

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+350-450 bps

Patient Support Systems: Why We Win

Positioned as partner of choice to hospital systems

• Trusted brands with leading installed base across ICU and Med-Surg

• Broad portfolio of clinically differentiated solutions

• Enterprise Accounts team focused on evolving needs of healthcare systems

• Leading global service infrastructure and capabilities

Strategic PrioritiesWhy We Win

• Strengthen customer relevance by leveraging our unique portfolio

• Innovate to provide caregivers predictive insight into patient conditions

• Create operational flexibility to address capital volatility

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Patient Support Systems:Strengthen customer relevance by leveraging our unique portfolio

Leverage consolidation to become more meaningful partner to health systems

+350-450 bps

Enterprise Account TeamPremier Partner

• Continue to invest in dedicated team to partner with leading health systems

• Expand access to construction firms, equipment planners and turnkey operators

+350-450 bps

Connected PortfolioDifferentiated Solutions

• Simplify buying process with packaged offerings and connected solutions

• Enable greater efficiency through clinically relevant information flow

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Patient Support Systems: Innovate to provide caregivers predictive insight into patient conditions

Enable health systems to improve patient and caregiver satisfaction

+350-450 bps

Decision SupportPremier Partner

• Deliver information at point of care to enhance decision making

• Provide intuitive clinical communications platform to improve safety and efficiency

+350-450 bps

Sensing CapabilitiesDifferentiated Solutions

• Improve patient comfort and experience through skin defense innovation

• Develop enhanced solutions to prevent patient falls

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Patient Support Systems:Stable long-term growth and cash flows

Continue to drive low single digit growth in global PSS business

1 Excludes Home Care exit2 2015E excludes impact of FX rates

Historical Growth: 1% - 3% CAGR

2018E2009 2015E2

Projected Growth:Low single digit

PSS Historical and Projected Revenue1

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+350-450 bps

+350-450 bps+350-450 bps

+350-450 bps

Frames and Surfaces

Clinical WorkflowSafe Patient Handling

Patient Support Systems:Create operational flexibility to address capital volatility

Diversified portfolio reduces exposure to higher volatility segments

Service and Rental

Volatility

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Patient Support Systems: Summary

• Strong foundation with leading brand equity across the globe

• Stable growth platform with strong cash flow profile

• Leverage provider consolidation and diverse portfolio to become a more meaningful partner to our customers

• Develop and launch differentiated solutions

• Create operational flexibility to address capital volatility

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Alton ShaderSVP and President, Front Line Care

Front Line Care

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Front Line Care: Welch Allyn

Welch Allyn complements Hill-Rom’s portfolio and capabilities

• One-hundred-year history as innovative leader

• Provide solutions that improve clinical outcomes and patient safety

• Primary franchises are in Physical Assessment, Vital Signs and Cardiopulmonary and Blood Pressure and Thermometry

• Core technologies include connectivity and patient sensing

• Growth potential by combining Welch Allyn and Hill-Rom technologies and leveraging Hill-Rom’s commercial capabilities

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+350-450 bps

Front Line Care: Portfolio Overview

Large market and favorable trends for Front Line Care

+350-450 bps



• Health system consolidation and increased centralized purchasing decisions

• Patients moving to lower cost settings and caregivers require point of care solutions

• Seamless data connectivity to EMR more critical than ever

Respiratory Care

Welch Allyn

$770M+

Opportunity: $3.0B

Market Growth: Low to mid single digits

• Acute care hospitals• Physician offices

• Outpatient facilities

• Medical schools• Physicians, Nurses, IT, Respiratory Therapists

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+350-450 bps

Front Line Care: Physical Assessment

Welch Allyn is the “Gold Standard” in physical assessment segment

ProductsBusiness Overview

Opportunity

• Diagnostic systems to conduct physical exams: eye and ear, ENT, endoscopic and skin exams

• Inventor and innovation leader

• Trusted, gold standard and global leader

• Dedicated ambulatory sales force

• Diagnostic wall units

• Ophthalmoscopes/ Otoscopes

• Disposable Ear Specula

• Spot Vision Screener

• International expansion: Leverage Hill-Rom’s commercial infrastructure

• Domestic growth: Leverage Hill-Rom’s IDN relationships as central purchasing becomes more common

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+350-450 bps


Opportunity

Front Line Care: Vital Signs and Cardiopulmonary

Leverage sensing platform to strengthen combined patient safety offering

• Connected devices monitor vital parameters including blood pressure, heart rate, temperature, motion and respiration

• Real-time surveillance software

• Leader in low acuity setting

• Innovative and clinician friendly solutions with leading EMR connectivity

• Dedicated acute care sales force

• Innovation: Best-in-class solutions that combine Welch Allyn’s sensing and connectivity technologies and Hill-Rom’s technologies

• Connex® Vital Signs Monitor

• Connex® Spot Monitor

• EarlySense Vitals Surveillance

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+350-450 bps


Opportunity

Front Line Care: Blood Pressure and Thermometry

Leading installed base drives significant recurring revenue stream

• Temperature and blood pressure measurement devices and consumables

• Recurring revenue stream from consumables associated with installed base of devices

• Leader in disposable blood pressure cuffs

• Sold into all care settings alongside distributor channel partners

• Innovation: Digital blood pressure and temperature acquisition

• Emerging Markets: Products focused specifically on Emerging Markets’ needs

• FlexiPort®/Trimline cuffs

• Braun Thermoscan

• Probe cover disposables

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Leading airway clearance therapy in acute and chronic patients

+350-450 bps


Opportunity

Front Line Care: Respiratory Care

• Life-saving airway clearance solutions for acute and chronic patients

• Leader in category

• Innovative capital and disposable solutions drive higher margins

• Dedicated sales channel targets Pulmonologists and Respiratory Therapists

• MetaNeb: Expand commercial support for MetaNeb in ICU setting

• Vest: Execute new product development for NextGen Vest

• The Vest® System

• MetaNeb®

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+350-450 bps+350-450 bps

Recent SuccessesWhy We Win

Front Line Care: Why We Win

Portfolio provides differentiated solutions for diagnostics and therapy

• “Gold standard” brands in Welch Allyn and Hill-Rom’s Respiratory Care

• Innovative leader across all franchises

• Leverage Hill-Rom channel strength and international footprint

• Combine technological leadership from Welch Allyn and Hill-Rom to further advance sensing solutions

Spot Vision Screener

MetaNeb® Connex® Spot Monitor

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Front Line Care: Combined Leadership Across Care Settings

Bringing scale and portfolio depth to our customers

Primary Care/ Ambulatory

Emergency Department Operating Room ICU and Patient Room Post-Acute

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Front Line Care: Welch Allyn Near-Term Priorities

• Seamless integration: Integrate Welch Allyn into Hill-Rom while maintaining strong customer relationships and achieving our synergy commitments

• Leverage technology: Create new-to-world, best-in-class solutions that greatly improve clinical outcomes

• Domestic growth: Identify specific health systems where Welch Allyn can leverage Hill-Rom commercial relationships

• International expansion: Determine countries where Welch Allyn can best leverage Hill-Rom capabilities

Innovation and commercial execution will define our success

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Front Line Care: Summary

• Welch Allyn is a complimentary business to Hill-Rom and customers will benefit from the additional product breadth it provides

• Innovation is the cornerstone of our business and will drive our future success

• Front Line Care has significant potential for profitable growth across all franchises

• Significant opportunities exist domestically and internationally, and we will leverage Hill-Rom’s channel strength to ensure we achieve our goals

• Front Line Care is a platform for additional M&A activity

Front Line Care provides compelling value to our customers

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Taylor SmithSVP and President, Surgical Solutions

Surgical Solutions

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+350-450 bps

+350-450 bps



Surgical Solutions: Portfolio Overview

Surgical platform positioned to accelerate growth

• Equipment upgrade cycle with new advanced procedures and technologies

• Focus on patient safety and efficiency in the OR and peri-operative environment

• Continued procedure shift towards outpatient care settings

• Hospitals – OR and ICU

• Surgery centers

• Custom kit manufacturers

• OR managers, surgeons

Allen

Aspen

Trumpf

$400M+

Opportunity: $2.5B

Market Growth: Low to mid single digits

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+350-450 bps+350-450 bps


Surgical Solutions: Why We Win

Surgical portfolio focused on safety and efficiency

• Strong channel partnerships with distributors, strategic partners and customers globally

• Innovative product portfolio with market leading features

• Comprehensive service infrastructure to support critical surgical equipment

Intuitive Surgical Partnership

Advance Spine Table

Branded Partnerships

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Surgical Solutions: Strategic Priorities

• Gain leadership in operating room equipment

• Expand portfolio for minimally invasive surgical access

• Leverage Hill-Rom’s commercial platform for growth

+350-450 bps

Mid single digit growth

$400M+

2018E2015E

Revenue

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+350-450 bps+350-450 bps

Global PresencePremier Partner

Innovative PortfolioDifferentiated Solutions

Surgical Solutions:Gain leadership in operating room equipment

Leverage complementary commercial footprint and product offering to win

• Expand commercial presence in targeted geographic markets

• Leverage Hill-Rom access to health systems and distribution partners globally

• Enable advanced surgical procedures with integrated solutions

• Develop tiered offering to expand global relevance and presence

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+350-450 bps+350-450 bps

Surgical Solutions:Expand portfolio for minimally invasive surgical access

Accelerate growth through differentiated positioning and access devices

• Expand presence in spine and orthopedic segments

• Enable minimally invasive surgery and advanced procedures

• Add more disposable products

Innovative PortfolioDifferentiated Solutions

• Leverage Hill-Rom footprint and strategic partnerships to build international presence

• Reduce patient and caregiver risk in surgical environment

Global PresencePremier Partner

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Surgical Solutions: Leverage Hill-Rom’s commercial platform for growth

• Leverage Hill-Rom’s Enterprise Accounts

teams around the world to drive growth

• Accelerate market penetration in Asia, US, Latin America and Middle East through

continued commercial investments

• Expand position with key customers across entire product portfolio

Invest in additional commercial resources and optimize enterprise sales teams

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Surgical Solutions: Summary

• Surgical Solutions platform positioned to capture leading share inperi-operative environments

• Enhance product differentiation with improved focus and speedof innovation

• Accelerate growth in North America and International through Hill-Rom commercial and service infrastructure

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Carlos AlonsoSVP and President, International

International

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+350-450 bps

+350-450 bps



International: Portfolio Overview

Significant opportunity to leverage global platform

• Increased access to healthcare in developing markets needed to serve growing population and middle class

• New construction and hospital expansion in private and public sectors

• Comprehensive portfolio required for success across global markets

• Integrated Delivery Networks

• Acute care hospitals

• Contractors, Packagers, Distributors

• Physicians, Nurses, Procurement

LATAM

APAC Europe$1B+

EEMEA

CanadaOpportunity: $5B+

Market Growth: Mid single digits

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+350-450 bps+350-450 bps


International: Why We Win

Global infrastructure established to support future growth

• $1B+ international business provides scale to compete globally

• Established infrastructure with local channel resources

• Innovative product portfolio across equipment and instrument categories

• Successfully launched HR900 platform and Centuris

• Expanding presence in emerging growth markets

• Improving efficiencies in developed markets

• New management team aligned with global business units

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• Leverage comprehensive portfolio to grow globally

• Expand in emerging growth markets

• Improve commercial infrastructure and profitability

+350-450 bps

Mid single digit growth

$1B+

2018E2015E

International: Strategic Priorities

Revenue

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+350-450 bps+350-450 bps

Developing MarketsDifferentiated Solutions

Construction CapabilitiesPremier Partner

International:Leverage comprehensive portfolio to grow globally

Accelerate penetration in high growth markets

• Become the healthcare infrastructure partner of choice in new construction and renovation projects

• Expand position with contractors, packagers and turnkey operators

• Improve competitiveness through tiered-offerings (Basic, Standard and Premium) to meet customer needs

• Provide value-focused solutions in Emerging Markets (China, GCC countries, Mexico, Brazil)

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+350-450 bps+350-450 bps

International:Leverage comprehensive portfolio to grow globally

Leverage global footprint and portfolio breadth to drive profitable growth

• Enhance customer relevance with key account management across product categories globally

• Increase Hill-Rom’s global brand awareness

• Leverage PSS installed base to drive service and higher margin specialty products

• Lead technologically in developed markets (France, Germany, UK, Japan)

Portfolio OptimizationDifferentiated Solutions

Customer RelevancePremier Partner

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International: Expand in emerging growth markets

Accelerating growth in a profitable, sustainable and capital efficient way

Direct Channel

Distributor Channel

Focus Growth Countries

Opportunistic Growth

• Commercial focus: Optimize go-to-market strategy

• Product mix: Drive higher margin specialty products globally

• Recent successes: Significant growth in select countries within key regions including APAC, LATAM, MEA

–Patient Support Systems

–Surgical Solutions

–Front Line Care

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International: Improve commercial infrastructure and profitability

International profitability improvement remains a key focus area

• European operational excellence: Continue to execute operating plan to drive $10M+ savings via increased efficiency in Europe

• Continuous improvement: Improve commercial effectiveness by standardizing processes across global infrastructure

• Simplification: Leverage common support functions to maximize efficiencies

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International: Summary

• Leverage established global infrastructure and comprehensive portfolio to drive profitable growth

• Focus investment in key countries with highest growth potential

• Drive profitability and commercial execution

• Align organization with global business units to drive accountability

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Brian LawrenceSVP and Chief Technology Officer

Research & Development

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R&D Organization Driving Profitable Growth

Accelerating innovation to drive profitable growth

• Revenue growth driven by successful new product launches across portfolio

• Continued investment in R&D leading to increased productivity

(1) Revenue from Hill-Rom and Trumpf new products launched from 2010-2015 (excludes Welch Allyn)(2) Revenue from Hill-Rom and Trumpf new products launched from 2010-2015 divided by HRC and Trumpf total revenue (excludes Welch Allyn)

+350-450 bps

New Product Revenues(1)

$330

$150

20142013

US $M

LTM 2015

$260

+350-450 bps

Vitality Index(2)

18%

8%

20142013 LTM 2015

14%

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+350-450 bps +350-450 bps

Highlights

Recent Product Launches and Accomplishments

History of R&D execution and innovation

LikoGuard™

Compella™

Hand Hygiene

Navicare® Patient Safety

iLED® 7

VitalCough® Spot Vision Screener

Progressa

• Global leadership in ICU

• Prevention of skin breakdown and pulmonary complications

• Focus on early mobilization to improve patient outcomes

• Innovative vision screening for patients, pediatric to adult

• Portable, handheld, rapid remote scanning

• State-of-the-art user interface and data management

Selected Recent Launches

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+350-450 bps

Selected NPD Projects

+350-450 bps

Near-Term Innovation Pipeline

Next-Gen Vest

Next-Gen MedSurg

Patient Protection

Connex Spot Monitor

• Strengthen Welch Allyn’s position in low acuity vital signs segment

• Discrete/interval measurement of patient vitals

• Support for advanced algorithms

• Best-in-class ease of use

Strong R&D pipeline to accelerate growth

Highlights

TS7000dv

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Evolving R&D Capabilities to Drive Growth

Shifting Hill-Rom R&D to a high-tech focus

Past

Present

Future

Connectivity

Software developmentConnectivity platforms

Sensing capabilities

Patient centric care

Algorithm expertisePredictive analyticsMobile interfaces

Infrastructure solutions

Mechanical engineeringElectrical engineering

Ergonomics

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Long-Term Innovation Focus – Skin Defense

Sensing patient parameters

• Pressure, temperature, moisture

• Vital signs

• Cutaneous blood flow / ischemia

Algorithm capabilities

• Identify skin breakdown risk

• Predict wound formation

Advanced automated therapy

• Patient repositioning

• Enhanced heat and moisture removal

Target innovation at patient centric needs from diagnostic to therapeutic capability

Understand Anticipate React

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Long-Term Innovation Focus – Continuum of Care

Sensing patient parameters

• Vital signs

• Air pressure & flow

• Compliance & resistance, spirometry, and lung sounds

Algorithm capabilities

• Lung function analysis

• Atelectasis and localization of lung collapse/fluid

• Therapy effectiveness

Therapy delivery system

• Pressure, flow, and frequency adjustments to optimize therapy

• Targeted therapy for efficient, localized airway clearance

Innovation to extend continuity of care to the home for patients with chronic diseases

Understand Anticipate React

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Research & Development: Summary

• R&D investments continue to drive growth in revenue from new products

• Strong recent product launches and near-term innovative pipeline positioned to accelerate growth

• Footprint and skillsets focused on high-tech capabilities in sensing, connectivity, and analytics

• Long-term innovation focused on combining sensing, analytics, and therapy to drive breakthrough improvements in patient outcomes

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Q&A Panel

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Appendix: Non-GAAP Reconciliations

Pro Forma1

Twelve Months

Ended June 30,

2015

(unaudited)

Year Ended

September 30,

2009

Revenue

Total Revenue 2,578.2$ 1,386.9$

Operating Margin

Operating Profit (Loss) (GAAP Basis) 124.1 (382.7)

Acquisition and integration costs 29.4 5.2

Acquisition-related intangible asset amortization 87.1 9.0

FDA remediation expenses 4.7 -

Field corrective actions 4.9 4.7

Impairment of goodwill and other intangibles - 472.8

Litigation charges (credits) (0.6) -

Special charges 20.8 20.5

Welch Allyn discontinued product lines (2.6) -

Welch Allyn Scale-Tronix acquistion contribution 5.2 -

Welch Allyn sourcing and restructuring run rate 0.6 -

Welch Allyn stock-based compensation2

67.5 -

Operating Profit (Adjusted) 341.1$ 129.5$

Plus run rate synergies3

40.0$ -$

Operating Profit (Adjusted), including synergies 381.1$ 129.5$

Pro Forma Adjusted Operating Margin 15% 9%

Change in Adjusted Operating Margin 600 bps

1 Pro forma information presented is a combination of the historical consolidated financial statements of Hill-Rom and Welch Allyn.

2 Adjustment removes $71.5 million of expense related to Welch Allyn's long term incentive plan, offset by $4.0 million of estimated incremental Hill-Rom stock compensation expense for the Welch Allyn employees.

3 Represents estimate of annual merger synergies expected to be achieved by the end of fiscal year 2018. Actual cost savings, the costs required to realize the costs savings, and the source of the cost savings could differ materially from this estimate.

Documents

INVESTOR CONFERENCE · previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or revise