Exactech sustains a customer centric culture that creates customer loyalty

Transcription

1

2 Exactech sustains a customer centric culture that creates customer loyalty

3 Targeting $30 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

4 : Founded : IPO 1994: First knee implant sales : Entered biologics market 1998: Internal Manufacturing : Launched Equinoxe Shoulder 2001: First bone cement sales : Acquired Brighton, MIS spine portfolio, Expanded direct OUS operations 2008: Acquired spinal startup, French distributor and Japan direct operations G

5 8% 6% 6% 4% 3% 3% 2% 2% 1% 1% 1% 0% EXAC SNN ZMH JNJ SYK WMGI BMET Last six months publicly reported constant currency orthopaedic revenue growth

6 $39 Billion Worldwide Market Sales ($ Bn) Spine Hips Knees Biologics Extremities 0% 2% 4% 6% 8% 10% 12% 14% 2010 Growth Rates Source: OrthoWorld-Orthopaedic Industry Annual Report 2010

7 Knees Hips Extremities Biologics & Spine Other Sales: $76.5 $28.7 $30.0 $28.0 $24.4 Growth: 1% 7% 32% 2% 12% 2010 sales by product line as reported in Company Press Release

8 4% increase ($ Millions) H10 1H11 % 2010 Revenues Knees 43%

9 Flagship Optetrak knee system Design has evolved for more than 25 years with excellent clinical results Rotating bearing knee CR Slope (PCL referencing technique) LPI tibial patellae instruments 2011 Introductions: Optetrak Logic PS Proximal Tibial Spacer FiT tray Optetrak Logic CR PS constrained insert CR constrained insert

10 ($ Millions) % increase H10 1H11 % 2010 Revenues Hips 15%

11 Products designed to address majority of requirements for total hip replacement Novation Element stem (Direct anterior approach) Novation CFS fracture system Evolving hip platform 2011 introductions: Novation Crown Cup scope expansion Delta femoral heads InteGrip revision acetabular system Novation tapered stem line extensions

12 8% decrease ($ Millions) H10 1H11 % 2010 Revenues Bio-Spine 15%

13 Innovative, clinically effective biomaterials, delivery systems and surgical techniques Accelerate platelet concentrating system Accelerated Recovery Technique (ART ) Accelerate Bone Marrow Concentration (BMC) Kit Accelerate PRP Sport Oralife dental allograft 2011 introductions: OpteCure line extensions Future product pipeline: Cartilage repair technology

14 Expanding portfolio of spinal fusion products Silverbolt MIS screw system Distribution expansion domestically and internationally 2011 introductions: Proliant polyaxial pedicle screw system Octane peek interbody platform Gibralt posterior cervical system

15 Cemex bone cement InterSpace pre-formed hip, knee and shoulder spacers InterSpace high release

16 20 35% increase ($ Millions) H10 1H11 % 2010 Revenues Extremity 16%

17 Platform Shoulder System is redefining intra-operative flexibility and solving clinical challenges surgeons face Fully leveraging the market momentum surrounding reverse shoulders by staying ahead of the innovation curve 2011 introductions Platform fracture stem for reverse Proximal humerus fracture plate Posterior augment glenoid CTA head Augmented reverse shoulder Future Pipeline * Cage Glenoid (minimal cement) * Ankle system *Pending FDA Clearance

18 Sales in over 30 markets OUS Sales organizations are required to meet sales quotas to maintain relationships with us Continuing to upgrade distributors in the US and expand into new countries overseas Expanded direct operations Initiating European operational headquarters US Network of independent sales agencies and direct sales reps Managed by regional directors OUS Network of independent distributors and wholly-owned subsidiaries Direct operations in: FRA,JPN,PRC,CAN,UK,ESP,GER

19 # of Reps $600 $400 $200 Sales $ Per Rep H11 $0 # Sales Reps Sales $/Rep (000s)

20 Founders and Officers (6) 27 years average industry experience 21 years average tenure with Exactech Leadership Team (9) 15 years average industry experience 7 years average tenure with Exactech

21 Annual st Half of Year G 0 1H10 1H Guidance - $203-$208MM 7%-10 increase 9% YTD increase

22 Net Income ($ Millions) EPS G G GAAP Results & Midrange of 11 Guidance EPS Guidance $ $0.90 Diluted EPS

23 ($ and shares in millions) Jun-11 Dec-10 Cash $4.4 $2.9 Debt $48.6 $42.8 Shareholders Equity $155.0 $145.4 Common Shares Outstanding (1) 13.2 Market Value (2) $184.0 (1) Fully diluted shares as reported in earnings release (2) Share price of $14.07 as of close

24 Return investment on significant expansion of OUS direct sales operations Expand presence / capabilities of US sales force Increase effectiveness of training and rep force expansion programs Drive sales growth from current product introductions Full market release of new knee systems- PS Logic ; CR Slope Continue share gains with Novation Element using anterior approach Fracture shoulder and plating systems Launch of organically developed spine products Capitalize on margin improvement and leverage from completed supply chain initiatives and direct operations

25

26 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.