Goldman Sachs Fourteenth Annual European Medtech and Healthcare Services Conference. Sveinn Sölvason, CFO September 7, 2017

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1 Goldman Sachs Fourteenth Annual European Medtech and Healthcare Services Conference Sveinn Sölvason, CFO September 7, 2017

2 Össur - a global leader in non-invasive orthopaedics Global medical device company More than USD 500 million in sales worldwide Over 3,000 employees across the globe CEO is Jon Sigurdsson since 1996 Sales USDm % Innovation driven ~4-5% of sales invested in R&D Over 1,200 patents Open innovation culture Profitable growth Organic and acquisitive sales growth ~4% average historical 5Y organic growth 19% EBITDA (adj.) margin in 2016 EBITDA (adj.) USDm % 60 Shareholders Listed on Nasdaq in Copenhagen in 2009 Market capitalization of ~2 billion USD Majority owner William Demant Invest A/S

3 The path to value creation lies in our business model Overview Segments Products Markets Strategic priorities Growth Innovation Efficiency Value creation Growth Profitability Cash flow 2

4 Our mission is to improve people s mobility Bracing & supports Average LCY growth 8% Prosthetics Average LCY growth 10% 18% 17% 19% 54% ~USD 280m 3% 12% 5% 2% 46% ~USD 240m 4% 6% 6% Sub-segment User profile Improving mobility Sub-segment User profile Improving mobility Injury solutions People recovering from fractures, ligament injuries or need a post operative treatment Products stabilizing joints Mechanical products People living with lower extremity amputation Complete product offering for lower extremity prosthetics OA People living with osteoarthritis Non surgical treatment by unloading affected joint with braces Bionic products People living with lower and upper extremity amputation Advanced microprocessor controlled feet, knees, hands and fingers 3

5 Össur is the second largest player in both markets B&S Market share Prosthetics Market share USD billion % #2 USD billion % #2 Market growth Primary sales channels Market growth Primary sales channels 3-5% 3-5% Volume Pricing/mix Hospitals O&P* Surgery centers Volume Pricing/mix Orthotic & Prosthetic clinics * Orthotic & Prosthetic clinics 4

6 With our well diversified global operations we are able to serve our customers locally 48% Americas California USA 5Y avg organic growth: +1% HQ Reykjavik Iceland ~1,200 FTEs EMEA Eindhoven Netherlands ~500 FTEs APAC Shanghai China 45% 5Y avg organic growth: +10% ~150 FTEs 7% 5Y avg organic growth: +6% ~1,200 FTEs Note: Percentage split indicates sales split between regions in 2016 Historical organic growth rates are calculated as a simple average of organic growth rates from Approximate headcount by locations as per mid-year

7 Össur s vision is to be the leading company in non-invasive orthopaedics MAIN FOCUS AREAS Growth Innovation Efficiency Maintain sustainable growth Execute ideas that add value Conduct business efficiently 6

8 USD million We create value for individuals and healthcare systems by providing innovative medical products and services High-end innovative products Sales and organic sales growth Indication based innovation Technology trade-up 3% 2% 7%* 5% 5% 4% Geograpic expansion Growth Acquisitions Expanding in the value chain High value services * Compound annual growth rate from 2012 to 2016 in USD terms 7

9 We focus on technology upgrades and indication based innovation so we can improve people s mobility MIND- CONTROLLED BIONIC PROSTHETICS 36,000 1,500 9, ,000 $70 $70 Note: Manufacturer sales price indicators in USD 8

10 We continuously seek out ways to optimize our operations with the objective to increase efficiency in our global service offering Global production footprint consolidated into three major sites Prosthetics B&S premium B&S value (outsourced) Gross profit Product mix improvements Consolidated scalable platform Growing Mexico platform Continuous improvement culture Operating expenses Economies of scale Shared service center in Poland Global process optimizations Efficient and effective integrations 9

11 USD million 5Y simple average historical organic sales growth of 4% Sales and organic sales growth 7%* Guidance for % 2% 5% 5% 4% 7-8% LCY growth 4-5% organic growth Technology trade-up Product offering Geography Acquisitions FX * Compound annual growth rate from 2012 to 2016 in USD terms 10

12 USD million Margin improvements through efficiency but with temporary pressure from acquisitions and FX Adjusted EBITDA and EBITDA margin 9%* 20% 20% 19% Guidance for % EBITDA margin (adj.) 18% 18% Efficiency programs Scalability Acquisitions FX * Compound annual growth rate from 2012 to 2016 in USD terms 11

13 USD million USD million Össur has a history of strong cash flow generation Cash generated by operations and as % of sales % x 82 17% 1.3 x % x 93 17% 17% Net interest-bearing debt (NIBD) and NIBD to EBITDA 0.6 x x CAPEX ~4% Strong cash generation TARGET 1-2x NIBD to EBITDA 12

14 USD million Dividend per share in DKK Össur initiated a share buyback program in 2013 and is currently paying out moderate dividends of 0.12 DKK per share Dividends and buybacks Shareholder distribution as of end U.K., 5% Others, 5% Iceland, 35% Denmark, 55% Dividends Buybacks Dividend per share in DKK Total payouts amount to ~USD 100 million since 2013, which was the first dividend year William Demant Invest A/S is a major shareholder with a holding of 42.1% at year end

15 Our value creation GROWTH We create value for individuals and healthcare systems by providing innovative medical products and services INNOVATION We focus on innovation through technology upgrades so we can improve people s mobility EFFICIENCY We continuously seek out ways to optimize our operations to increase efficiency 14

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17 Further information Please visit our website: Or contact Össur s Investor Relations David Hreidarsson dohreidarsson@ossur.com / General inquires IR@ossur.com 16