Exactech sustains a customer centric culture that creates customer loyalty

Transcription

1 Experience Exactech. Investor Presentation

2 Key to Our Success Exactech sustains a customer centric culture that creates customer loyalty

3 Investment Highlights Targeting $41 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 Proven Track Record of Growth (Annual Sales $ Mil) : First knee implant sales 1985: Founded : Acquired Brighton, MIS spine portfolio, Expanded direct OUS operations 2008: Acquired spinal startup, French distributor and Japan direct operations 2005: Launched Equinoxe Shoulder 2001: First bone cement sales 1998: Entered biologics market 1998: Internal Manufacturing 1996: IPO G

5 1Q 12 Estimated Growth % vs Competitors 12% 10% 9% 7% 6% 5% 5% 3% 3% 3% 2% 0% EXAC TRNX BMET SYK ZMH SNN JNJ WMGI Based on publicly reported orthopaedic revenue growth

6 Targeting Highly Attractive Markets $41 Billion Worldwide Market 10.0 Spine 2011 Sa ales ($ Bn) Biologics Knees Hips 2.0 Extremities -1% 1% 3% 5% 7% 2011 Growth Rates Source: OrthoWorld-Orthopaedic Industry Annual Report 2011

7 Broad Portfolio of Innovative Products (2011 Revenue $ Millions) Knees Hips Extremities Biologics & Spine Other Sales: $80.1 $33.7 $39.9 $24.3 $27.4 Growth: 5% 17% 33% -13% 0% 2011 sales by product line based on Earnings Release

8 Knee Product Revenues 30 1% increase ($ Millions) Q11 1Q12 % 2011 Revenues Knees 39%

9 Broad Knee Portfolio Flagship Optetrak knee system Design has evolved for more than 30 years with excellent clinical results Rotating bearing knee CR Slope (PCL referencing technique) LPI tibial patellae instruments 2012 Introductions: Optetrak Logic PS & CR Proximal Tibial Spacer FiT tray CRC insert Optetrak Logic RBK (OUS) GPS

10 Hip Product Revenues ions) ($ Mill % increase Q11 1Q12 % 2011 Revenues Hips 16%

11 Enhanced Hip Portfolio Products designed to address majority of requirements for total hip replacement Novation Element stem (Direct anterior approach) Novation CFS fracture system Evolving hip platform 2012 introductions: Novation Element Update Novation Integrip Cup Crown Cup large head/liner Revision acetabular system Novation Prime neck preserving stem

12 Biologics-Spine Revenues 13% decrease illions) ($ M Q11 1Q12 % 2011 Revenues Bio-Spine 12%

13 Proprietary Biologics Portfolio Innovative, clinically effective biomaterials, delivery systems and surgical techniques Accelerate platelet concentrating system Accelerated Recovery Technique (ART ) Accelerate Bone Marrow Concentration ti (BMC) Kit Accelerate PRP Sport Oralife dental allograft 2012 introductions: Ossigen collagen matrix Bone graft delivery system Future product pipeline: Cartilage repair technology

14 Evolving Spine Platform Expanding portfolio of spinal fusion products Silverbolt MIS screw system Proliant pedicle screw system Octane PEEK cervical interbody Distribution expansion domestically and internationally 2012 introductions: Gibralt posterior cervical system Gibralt cannulated screw Gibralt occipital system Expandable PEEK interbody cage

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

16 Extremity Product Revenues ($ Millions) ( % increase Q11 1Q12 % 2011 Revenues Extremity 9%

17 Extremity Products 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 2012 introductions CTA Humeral Head Posterior augment glenoid Augmented reverse shoulder * Cage Glenoid Rotator cuff interval instruments Resurfacing humeral head Future Pipeline Ankle system

18 Exactech Distribution Sales in nearly 40 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 d 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 owned subsidiaries Direct operations in: FRA,JPN,PRC,CAN,UK,ESP,GER

19 Sales Force Growth and Productivity 300 $600 # of Reps $ $200 Sale es $ Per Rep $0 # Sales Reps Sales $/Rep (000s)

20 Experienced Management Team Founders and Officers (6) 28 years average industry experience 22 years average tenure with Exactech Leadership Team (14) 16 years average industry experience 8 years average tenure with Exactech

21 Total Annual Revenues ($ Millions) G 8% 11 increase 2012 Guidance - $ MM 5-10% increase

22 Earnings Net Income ($ Millions) EPS G G GAAP Results & Midrange of 12 Guidance 12 GAAP Guidance $ $0.97 Diluted EPS

23 Summary Financial i Data ($ and shares in millions) Mar-12 Dec-11 Cash $3.5 $4.7 Debt $49.5 $46.6 Shareholders Equity $160.2 $155.3 Common Shares Outstanding (1) 13.3 Market Value (2) $211.5 (1) Fully diluted shares as reported in earnings release (2) Share price of $15.90 as of close

24 2012 Initiatives Return investment on OUS expansion Expand presence / capabilities of US sales force Sales growth with recent product introductions Logic PS&CR Novation Element anterior approach, large heads/liners and Integrip porous metal acetabular system Cage glenoid, augmented reverse and posterior augmented glenoid Continued launch of organically developed spine products Leverage good clinical outcomes with Biologics products Gain leverage from completed supply chain initiatives and direct operations

25 Thank you.

26 Disclaimer/Forward Looking Statements 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.