KI - worKIng for you

1
Welcome

Working for You.
2
Healthcare Market

• Recap 2004 Plan 2005
• Market Share
• GTM Segmentation
• Business Issues
• GPO Updates
• Design Issues
• AAHID
• Success Stories

3
Recap 2004

• Incoming - Record year
• - 27.4M - 93 of plan
  
• - 17 growth over 2003
• Shipments Record year
• - 25M 85 of plan
• - 6 growth over 2003

4
Region 1 Recap

• District Plan Actual of Plan
• Corbett 1.4 1.9 142.0
• NY 1.5 1.3 87.0
• Maloney 0.8 0.6 66.0
• Hinman 1.9 1.0 51.0
• Corb (NY) 0.3 0.2 53.0
• Strack 0.8 1.0 125.0
• Rier 0.5 1.0 206.0
• Al/TN 0.9 1.2 141.0
• N FL 0.7 0.7 103.0
• S FL 0.4 0.5 111.0
• Total 9.4 9.4 100.0

5
Region 2 Recap

• District Plan Actual of Plan
• Neid/Mah 2.6 3.5 134.0
• Fairburn 2.2 2.0 93.0
• Binford 0.7 1.2 169.0
• Kashwer 0.3 0.0 5.0
• St. Germain 0.8 1.2 147.0
• Thomason 1.4 1.0 74.0
• Turner 1.2 1.2 103.0
• Lowe 1.2 0.6 47.0
• Jones 0.8 1.2 150.0
• Healy 1.0 1.5 145.0
• Sliger 1.0 0.5 52.0
• Total 13.2 13.9 106.0

6
Region 3 Recap

• District Plan Actual of Plan
• Arnold 1.0 0.5 53.0
• Zimmerman 1.5 0.7 49.0
• Frantz 1.8 1.4 82.0
• Matusow 0.7 0.1 20.0
• Canter 1.4 0.8 59.0
• Total 6.3 3.6 58.0

7
Top Selling Products

• Incoming
• Perth 2.5M
• Flex 2.3M
• Daybed 2.2M
• Briar 1.6M
• Versa 1.5M
• Engage 1.4M

8
Market Share

• Herman Miller
• Hill-Rom
• Steelcase
• Nemschoff
• HON
• KI

9
Contract Magazine

• KI ranked 2 in Healthcare Furniture
• Nemschoff
• KI
• Brayton
• Kimball
• Herman Miller
• Wieland
• Brandrud
• Steelcase
• Hill-Rom
• Softcare

10
Plan 2005

• 26.9M
• 8.0 growth over 2004
• Market Segmentation
• Continued Curriculum
• NeoCon
• Healthcare Symposium
• Healthcare Design
• GPO Conferences
• AAHID

11
Market Segmentation

• Focus on Tier 1 and Tier 2
• Leverage KI strength in education market and
  existing relationships
• Identify GPO emphasis on Novation and MedAssets
• Key growth states CA, CO, TX, FL, VA, GA

12
Business Issues

• Top 3 Issues Facing Hospital CEOs
• Financial challenges Biggest worry is the
  budget!
• Uninsured 45 Million (16)
• Workforce shortage
• Source American College of Healthcare
  Executives

13
Financial Challenges

• Supply Chain
• One Source
• GTM clients choice
• Standardization
• Knowledge and commitment
• GPO

14
Capital Expenditure

• Hospital CFOs - increase capital spending
  average of 14 per year over the next 5 years
• Emphasis on technology
• 8 out 10 projects involve expanding capacity
• Increase ED capacity 51
• Increase OR capacity 50
• Add specialty units 38
• Increase lab capacity 35
• Increase bed capacity 35
• Add new outpatient center 35
• Expand outpatient facilities 34
• Build a new hospital 23
• Source Healthcare Financial Management and
  Price Waterhouse Coopers.

15
Construction Outlook

• 2005 - 26.3 billion 5.2 increase
• 2006 27.9 billion 6.0 increase
• 2007 - 29.9 billion - 7.2 increase
• 2008 - 31.7 billion 6.0 increase
• 2009 - 33.4 billion 5.4 increase
• 2010 - 35.1 billion 5.1 increase
• Source Centers for Medicare and Medicaid

16
GPO Updates

• Novation and MedAssets market against Nemschoff
  (Lifetime warranty)
• Premier RFP Q1
• Broadlane new contract

17
Design Issues

• Private Room Acuity Adaptable Point of Care
  Patient/Family Centered
• Bariatrics
• Paperless/Wireless
• Healthcare Practitioners
• Females of household key decision makers for
  healthcare
• Design catering to the boomer mindset
• Emphasis on education
• Luxury Units
• Infection Control (Cyrpton/Gore)

18
Bariatrics

• CDC estimates 65 of American adults are
  overweight. BMI gt 25
• 31 are obese. BMI gt 30
• 15 of children are overweight
• BMI (Weight lbs./ (ht inches) (ht. Inches)) x
  703
•  Nurses Health Study 60 of nurses overweight
• 10 lobby
• 20 in Cardiac units
• Solutions AGI and KI Heroic

19
Private Room

• 2001 Guidelines for Design and Construction of
  Hospital and Healthcare Facilities (New edition
  2006)
• Patient preference privacy
• Reduced noise, ambarrassment
• Improved quality of sleep
• Opportunity for family members to stay and
  participate in the healing process
• Reduced rate of medical errors, falls
• Infection control

20
AAHID

• American Academy of Healthcare Interior Designers
• Houston-based nonprofit July 2004
• Vision Certification Board of choice in
  assessing and qualifying the knowledge, skills
  and abilities of healthcare interior designers
• Specialists in field of healthcare design.
• NCIDQ support
• Advisory Council
• 50 founding members April 2005
• www.aahid.org

21
Success Stories

• Karla Boles Baylor University Medical Center
• Dayla Nelligan Inova Health System
• Deb Morris Lakeland Regional Medical Center
• Susan Binford St. Francis Hospital and Health
  Centers
• JJ Reis William Beaumont Hospital

22
Karla Boles

• Baylor University Medical Center
• Tier 1 948 beds
• 700K
• Timeline 1 year
• AD In-house
• Fulfillment Dealer
• GPO Novation
• Competiton Hill-Rom, Carolina, Brandrud
• Decision Criteria Aesthetics, design, function

23
Dayla Nelligan

• Inova Health System
• Tier 1 820 beds
• 700K
• Timeline 2 years
• AD Wilmot Sans
• Fulfillment Dealer
• Competition Herman Miller, David Edwards,
  Hill-Rom, Carolina, Nemschoff, Brandrud
• Products AGI/KI
• GPO MedAssets
• Decision Criteria Family of products, ease of
  maintenance, field replacability

24
Deb Morris

• Lakeland Regional Medical Center
• Tier 1 655 beds
• 500K
• Briar patient room
• Timeline 1 year
• AD HML Design
• Fulfillment Direct through DR
• Competition Carolina and Stryker
• GPO Novation
• Decision Criteria Function, Design, Finish and
  Family of Product

25
Susan Binford

• St. Francis Hospital and Health Center
• Tier 1 434 beds
• 600K
• Timeline 2 years
• AD Firm Lohr Design
• Fulfillment Direct through DR
• Product AGI and KI
• Competiton None
• Decision Criteria Relationship, Budget

26
JJ Reis

• William Beaumont Hospital
• Tier 1 967 beds
• 500K
• Timeline 2 years
• Product Sleepchair special Perth arm
• Competition Brayton, Patrician, Wieland
• Fulfillment Dealer
• Decision Criteria function, price,
  customization

27
Thank You

• WORKING FOR YOU

28
Full Grid Color Template
29
Rev. Full Grid Template