Exactech Investor Update

Transcription

1 Exactech Investor Update Helping surgeons worldwide make patients more mobile Q1 2017

2 Investment Highlights Targeting $47 billion global biomedical device market Consistent long term growth 2x as fast as overall market Broad product portfolio of innovative products Robust product pipeline expanding company s market Highly experienced orthopaedic management team Growing sales organization with increasing rep productivity Proven track record of creating long-term profitable growth 2

3 Our Strategy CUSTOMER INTIMACY Innovation Channel Development Operational Excellence 3

4 Our Story Surgeon founded Innovation to improve patient outcomes Surgeon input driven Collaborative relationship with sales force Financial stability 4

5 REVENUE IN MILLIONS 2010 A proven track record of growth $268M Vertical Supply Acquisitions Launched Internal Manufacturing French Distributor Acquisition Equinoxe Shoulder Launch Launching Vantage Ankle & Truliant Knee Systems First Knee Implant Sales Launched Three Revision Systems Launch of ExactechGPS CAS Technology Acquisition 50 0 YEAR

6 Targeting Highly Attractive Markets Extremities Knee Hip Biologics $2.0 Billion Sales $8.5 Billion Sales $7.0 Billion Sales $4.9 Billion Sales 8% Growth Rate 4% Growth Rate 2% Growth Rate 3% Growth Rate Source: OrthoWorld Orthopaedic Industry Annual Report April 2016 and company estimates 6

7 Broad Portfolio of Innovative Products 2016 Sales by Segment ($ millions) ExactechGPS KNEE HIP HIP $46.7 OTHER $ % EXTREMITIES $100.3 BIOLOGICS 19% 40% EXTREMITIES ANKLE CEMENT/SPACERS KNEE $ % 2016 sales by segment based on 2016 SEC 10-K excluding divested spine business 7

8 Extremities Equinoxe Platform Shoulder redefining intra-operative flexibility, solving clinical challenges surgeons face. Primary, Fracture, Reverse Bone conserving glenoid options Revision, Salvage and Tumor solutions Pipeline of strong clinical publications ExactechGPS Computer Assisted Surgery System launching 2H17 Preserve Short Stem launching 2H17 8

9 Extremities Vantage TM Ankle System Developed by world-class team of design surgeons. Full launch in

10 Knee Comprehensive total knee system with excellent clinical results. 40-year evolved design Multiple constraint options for primary & revision knees with NCM poly Exactech GPS - Computer Assisted Surgery System Optetrak Logic CC revision 10

11 Knee Truliant high performance, comprehensive system addresses primary and revision knee replacement. Supports surgeon goals for reproducible clinical outcomes Wide array of options for improved versatility Modified implant design to accommodate various patient anatomy Intuitive instrumentation with visual, audible and tactile feedback for intraoperative adjustability Expanded Exactech GPS computerassisted surgery applications Clinical introduction in 2H17 11

12 Hip Addressing the major philosophies of THA Primary, Fracture, Revision Tapered Wedge and Neck Preserving Stem designs Direct Anterior Approach instrumentation Acetabular cup with InteGrip technology Alteon Monobloc Revision System 12

13 ExactechGPS Surgeon controlled, computer-assisted technology for reproducibility in total joint arthroplasty. Surgeon maintains operating control Reproducible outcomes - Real-time feedback Competitive marketing edge for hospitals Applications for shoulder, primary and revision knee 13

14 Biologics Innovative, clinically effective biomaterials Optecure Allograft DBM products Accelerate Cell Therapy Ossilix TM Calcium Phosphate Cement Reveille TM Cartilage Processor 14

15 Cement, Spacer and Implant Removal Safety, simplicity and efficacy Cemex bone cement InterSpace preformed hip, knee and shoulder spacers with High Release technology AcuDriver Automated Osteotome System 15

16 Exactech Manufacturing Manufacturing in U.S. 65% Internal Implant Mfg Lean initiatives in manufacturing and entire company. 16

17 Our Reach US Network of independent sales agencies (35+) Independent sales representatives (300+) Managed by corporate regional vice presidents OUS Network of independent distributors and whollyowned subsidiaries Direct operations in: UK, Spain, Germany, France, Japan, China, Australia MANUFACTURING & HEADQUARTERS DISTRIBUTORS GLOBAL OFFICES/SUBSIDIARIES 17

18 Financial Trends 280 Revenues ($ Mil) Earnings Per Share G * 17G FY Guidance $ MM; +6-9% Proforma* FY 17 Guidance $ * Non-GAAP Revenue Growth and Diluted EPS Estimates excluding impact of impairment/restructuring announced 4Q16

19 Summary Financial Data $ and shares in millions Dec-16 Mar-17 Cash $13.1 $11.2 Debt $20.0 $16.0 Shareholders Equity $234.2 $240.3 Common Shares Outstanding (1) 14.3 Market Value (2) $433.4 (1) Per Q17 10-Q filing (2) Based on Market Closing Price $

20 Why Exactech? Understanding of market needs and opportunities Major new product introductions Sales channel opportunities Proven financial performance and corporate stability 20

21 Thank you. This presentation contains various forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which represent the company s expectations or beliefs concerning future events. These forward looking statements are further qualified by important factors that could cause actual results to differ materially from those in the forward looking statements. These factors include the effect of competitive pricing, the company s dependence on the ability of third party manufacturers to produce components on a basis which is cost-effective to the company, market acceptance of the company s products and the effects of government regulation, including without limitation an ongoing investigation by the U.S. Department of Justice of various practices within the orthopaedic industry, as well as other risks and uncertainties including those described in the company s filings with the Securities and Exchange Commission. You should carefully consider these risks before making a decision to invest in our securities. Results actually achieved may differ materially from expected results included in these statements.