Canaccord Genuity Musculoskeletal Conference San Francisco, CA February 7, Integra LifeSciences Corporation. All rights reserved.

Transcription

1 Canaccord Genuity Musculoskeletal Conference San Francisco, CA February 7, Integra LifeSciences Corporation. All rights reserved.

2 Safe Harbor Statement Certain statements made in this presentation are forward-looking within the meaning of the Private Securities Litigation Reform Act of Among others, statements concerning management s expectations of future financial results, potential business acquisitions, government agency approvals, additional indications and therapeutic applications for medical products, biologics, and medical devices, as well as their outcomes, clinical efficacy and potential markets are forward looking. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted results. For a discussion of such risks and uncertainties, please refer to the information set forth under Risk Factors included in Item 1A of Integra's Annual Report on Form 10-K for the year ended December 31, 2010 and information contained in subsequent filings with the Securities and Exchange Commission. These forward-looking statements are made based upon our current expectations and we undertake no duty to update information provided in this presentation. NASDAQ: IART 2

3 Integra s Journey Company Founded st Product Artificial Skin Commercial Foothold in Neurosurgery Diversification Strategy 2005 Entered Orthopedics

4 Integra Today Neurosurgery Instruments Orthopedics Extremity Reconstruction Spine 3 selling organizations 3,000 employees worldwide $ M revenue Core regenerative technology platform International growth opportunity Strong and flexible balance sheet Private Label

5 ($ in millions) Historical Revenue Growth $900 $800 $700 $655 $682 ~$780* $732 $600 $550 $500 $400 $300 $200 $100 $0 Growth: $419 $278 $230 $186 $118 $93 $72 $43 $13 $15 $18 28% % % % % % % % % % % % % % % * 7%* *2011 revenue reflects the guidance range communicated 1/6/2012.

6 2011 YTD Revenue Mix Summary Product Category Revenue Geographic Revenue Mix 22% 41% 12% 6% 6% 37% 76% Orthopedics Neurosurgery Instruments U.S. Asia Pacific Europe Other Foreign

7 Diversification with Platform Synergies Regenerative Medicine Orthopedics margin expansion Neurosurgery stable growth Instruments cash flow Instrument Sourcing & Orthopedics Leverage Orthopedics Neurosurgery Instruments GPO & Corporate Acct. Management & Call Points

8 Our Markets & Long-Term Growth Market Market Size (WW)** Market Growth** Integra Growth* Spine $9 billion 2% 5-7% Extremity Recon $5 billion 8% 10-12% Orthopedics 7-9% Neurosurgery $1 billion 4% 4-6% Instruments $1 billion 2% 2-4% Total $16 billion 4% 5-7% *Long-term growth rates reflect the guidance communicated 11/14/2011. **Market size and growth are Integra s internal estimates. Orthopedics growth includes Private Label revenues, which are projected as flat.

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10 Extremity Reconstruction Summary Reasons to Like This Business 10-12% Above Corporate Average Drives New Products High growth segments - top line driver Strong position with customers Known leader in regenerative technologies New shoulder segment opportunity Future technology upsides with PyroCarbon Revenue Gross Margin Proprietary Technologies Strong track record for incorporating new extremity lines into the business and growing revenue

11 Our Regenerative Core Competency Provides the Base TenoGlide Tendon Protector Sheet NeuraGen Nerve Guide Integra Wound Matrix Inforce Reinforcement Matrix Integra Osteobiologics

12 Hardware Acquisitions Created Solid Extremity Orthopedic Portfolio Katalyst Bipolar Radial Head System Integra Total Wrist Fusion System Universal2 Total Wrist Implant System Tibiaxys Anterior Fusion Plates Panta Arthrodesis Nail Subtalar MBA Implant Uni-CP Compression Plate

13 Ascension Acquisition Fills Out Offering PIP Silicone and Pyro Carbon Titan Total Shoulder System Elbow Fracture System Capture Screw System Titan Resurfacing System Movement Great Toe System Total Foot System

14 Shoulder: Foot & Ankle: Hand: Ascension At a Glance Founded in 1996 Headquartered in Austin, Texas Acquired September 2011 Proprietary PyroCarbon technology Product Integra Ascension PIP arthroplasty MCP Arthroplasty Wrist arthroplasty/fusion TTC nail Total Foot System MTP arthroplasty/fusion Resurfacing (CoCr&Pyro) Hemi Shoulder (CoCr&Pyro) Total Shoulder

15 Modularity that Limits Uncertainty TITAN Total Shoulder Flexibility Intra-operative interchangeability Patient specific combinations for any surgery Surgeon can adjust the implant to achieve optimal fit and kinematics Familiarity = Reproducibility Surgeon and OR Staff learn just one instrument system for any patient indication primary, fracture, reverse and revision Familiarity w/ instrumentation equals reproducible results Revision Option Restore functionality of limb, when previous implants have failed Reduce complexity of procedure Prevent further trauma to patient without the need for stem removal

16 PyroCarbon Technology Opportunities Biocompatibility: Significant lower wear on bone and cartilage than Co-Cr alloy Safety and durability: More than 20 million patient years of use in cardiology Elasticity: Closer to that of cortical bone than any other metal implant material Strength: Three to four times stronger than natural bone Imaging: Makes use of MRI possible and data rich, unlike metal implants Limited competition: Only two PyroCarbon orthopedic providers in the world

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18 Spine Summary Reasons to Like This Business 5-7% Above Corporate Average Market consolidation Share growth potential in U.S. and International Leverages regenerative medicine Leverages relationships with neurosurgeons Market consolidation opportunities Gross margins exceed corporate average Revenue Gross Margin Acquisition Long-term opportunities to take costs out Revenue growth and scale in a profitable business model

19 Orthopedics Industry Changing Consolidating Small Players Selling Strong Demographics Market Size New Challenges Industry Dynamics Company Alphatec Nuvasive J&J Integra Amedica Purchased Scientx Osteocel Synthes, Nspine Seaspine, IST, Theken U.S. Spine $8.7B 2% CAGR $9.7B Regulatory and reimbursement hurdles Clinical evidence in higher demand Orthofix Zimmer Exactech Medtronic DePuy Blackstone Abbott, Endius Vertiflex Kyphon, Peak, Salient Confidence VCF Still a lucrative market with good demographic trends Product commoditization and pricing pressure

20 How We Win in Spine Less Customer Continuum of Differentiation More Regenerative technologies Distributer coverage & service model Acquisition execution Full-line portfolio Scale & infrastructure Niche players Specialized instruments & retractors Emphasis of Differentiation Many Spine Companies Few

21 $ in Millions New Product Drivers for 2012 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 Market Potential in 2012 New Product Areas* Newport MI System Daytona Deformity System Complete Cervical Cage Capistrano Allograft Spacer Vu apod Prime ALIF System Accell Evo3 DBM $0 MI, Lateral Deformity Standalone Interbodies Cervical Bone New opportunities in $1.5B marketplace *Source: idata and internal estimates.

22 New Product Drivers for 2012 Newport MI System Extended tab screws and locking cap provide smallest access on market Deployer and Integrated Cap Rod for one step delivery Daytona Deformity System Extended tab screws and locking cap technology Versatile instrumentation allows for multiple reduction techniques and en-bloc de-rotation

23 New Product Drivers for 2012 Capistrano Allograft Spacer Best-in-class assembled corticocancellous graft Compatible with PEEK instrumentation Entry to structural graft market Complete Cervical Cage Zero profile, stand-alone cervical cage IBD Two screws eliminate need for supplemental fixation

24 New Product Drivers for 2012 Vu apod Prime ALIF System Multiple fixation options include SpinPlate and screws Zero profile, anatomic shape, large graft window Accell Evo3 Optimized formulation with 3 times more Accell Demineralized Bone Matrix Ideal handling using Reverse Phase Medium

25 Orthopedics Initiatives for 2012 Spine Cross-pollinate hardware portfolio to combined distributor network Fuel orthobiologics momentum by rolling out products to legacy SeaSpine network Expand in International markets Execute on new product launches Extremity Reconstruction Focus the sales force on offering fully consolidated product line to customer base Develop winning strategy for our new entry to the shoulder market Cut costs to achieve Ascension accretion by mid-year Continue building product pipeline and enrolling diabetic foot ulcer trial

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27 Neurosurgery Summary Reasons to Like This Business 4-6% Leverage Opportunity Stable market Leading market share New product launches Opportunity in licensing Opportunity in leveraging customer base Revenue Operating Margin Business Development Underpenetrated international markets Stable business with operating leverage

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29 Instruments Summary Reasons to Like This Business 2-4% Internal Investment Leverage infrastructure Low capex & R&D <1% of sales = >FCF Product mix driving increase in gross margin Leadership position across multiple segments GPO portfolio breadth insulates business Internal sourcing engine Revenue Strong Cash Flow Operating Margin Expansion Stable business with high cash flow

30 Capital Structure Reported 9/30/2011 Cash $111M Credit Line* $193M Convertible Debt** (due June 2012) $165M Convertible Debt** (due Dec 2016) $230M Net Debt $477M *Balance outstanding on a $600 million line of credit. **Par values shown here; amounts not equivalent to those shown on balance sheet. 30

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