exactech investor presentation q1 2015
TRANSCRIPT
INVESTOR UPDATE1Q | 2015
KEY TO OUR SUCCESSExactech sustains a customer centric culture
that creates customer loyalty
Investment Highlights
Targeting $46 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
Our story.
• Surgeon founded
• Innovation to improve patient
outcomes
• Surgeon input driven
• Mainline & niche success
• Collaborative relationship with
sales force
• Financial stability
0
50
100
150
200
250
300
1985 1990 1994 1998 2002 2006 2010 2014
Proven track record of growth. (annual sales $ mil)
2010Vertical Supply
Acquisitions
2008
Entered Spine
Market2005
Equinoxe® Shoulder Launch
2001First Bone
Cement Sales
1998Entered Biologics Market
Internal Manufacturing
1996IPO
1994FirstKnee
ImplantSales
1985ExactechFounded
2008
French Distributor Acquisition
2010-12Expanded
OUS Direct Operations
2014Launch of
ExactechGPS®
CAS Technology Acquisition
Source: OrthoWorld Orthopaedic Industry Annual Report 2015
Targeting Highly Attractive Markets
0 2 4 6 8 10 120
2
4
6
8
10
Knee
Hip
Extr
Spine
Biologics
2014 Growth Rates
2014
S
ales
($B
illi
on
)
2014 sales by product line based on 2014 SEC 10-K
Broad Portfolio of Innovative Products2014 Sales by Business Unit ($ millions)
Extremities $79.032%
Other $23.49%
Knee $78.732%
Hip $43.517%
Bio-Spine $23.810%
Optetrak® Logic Knee System
• 30-year evolved design
• Streamlined instrumentation
• Multiple constraint options for
primary & revision knees with
NCM poly
• ExactechGPS®
Comprehensive total knee system with excellent clinical results.
ExactechGPS®
• Implant alignment accuracy
& precision
• Ease of use, cost-effective
• Surgeon maintains
operating control
• Competitive marketing edge
for hospitals
Guided, personalized surgery provides an effective solution to unmet needs
Portfolio PipelineExactech Knee
Concept Design & Development Limited Launch Full Launch Brand Maintenance
Adv. Ligament Balancing
GPSUni
Application
Logic Uni
AsymmetricPatella
LogicPorous
Tibia
Logic CC
GPSCC
Application
Logic RBK (US)
GPS v2
Logic CR Porous
Logic PS Porous
GPS
Logic PSC
Logic CRC
Logic PS
Logic CR
Logic FIT FBK
Cemented
Logic Fit RBK
Cemented
Optetrak PS/CR/R
BK
Optetrak CC
1H’152H’152016
Extremities
• Comprehensive platform
system
• Embraces the Glenoid with
unique bone-conserving
solutions
• Pipeline of strong clinical
publications
Equinoxe® Platform Shoulder redefining intra-operative flexibility, solving clinical challenges surgeons face
Portfolio PipelineExactech Extremities
Low Cost Shoulder
Muscle Augments
GPS Shoulder
Short/ Stemless Shoulder
Upgraded/ Ceramic
Glenosphere
Revision/Tumor Humeral Stem
Total Ankle
Cuff Sparing Instruments
Cage/ Augmented
Glenoid
Resurfacing Humeral
Head
CTA HH
Augmented Reverse Shoulder
Proximal Fx Plate
Cage Glenoid
Post Aug Glenoid
Platform Fx Stem
ReverseShoulder
Primary Shoulder
UHMWPE Glenoids
Humeral Heads
Original Fx Stem
Concept Design & Development Limited Launch Full Launch Brand Maintenance
2016 2H’15 1H’15
Hip
• Alteon® tapered wedge and Neck
Preserving stem designs
• Direct anterior approach
instrumentation
• Acetabular cup with InteGrip®
technology
Addressing the major philosophies of THA
Portfolio PipelineExactech Hip
Alteon Platform
Acetabular SysAlteon
HA
Alteon Revision Modular
Alteon Revision
MonoblockUniversal
Cup EMEA
Alteon Wedge
Alteon Neck Preserving
Novation Primary Femoral
InteGrip Cup
Element Femoral
GXL Cup
Crown Cup
AcuMatchFemoral
AcuMatchCup
Concept Design & Development Limited Launch Full Launch Brand Maintenance
2016 2H’15 1H’15
Biologics
• Optecure® / Opteform®
Allograft DBM products
• Accelerate® Cell Therapy
• Cartilage repair technology
under development
Innovative, clinically effective biomaterials
Portfolio PipelineExactech Biologics
BiCRI
Allograft Cartilage
Graft Delivery System
Reveille (Mincer)
Pure PRP
Tenomend
Ossigen
Accelerate PRP Sport
Optecure and Optcure CCC
Accelerate PRP
Opteform frozen
Opteform and Optefil RT
OpteMX*
*Distributed Product
Concept Design & Development Limited Launch Full Launch Brand Maintenance
Cement
• Cemex® bone cement
• InterSpace® pre-formed hip, knee
and shoulder spacers
• InterSpace® high release
Safety, simplicity and efficacy
Portfolio PipelineExactech Cement
Concept Design & Development Limited Launch Full Launch Brand Maintenance
Low CostCement
InterSpaceModular
Knee
InterSpaceFlat Hip
AcuDriver
CemexSystem
InterSpaceKnee
CemexManual
InterSpaceHip
InterspaceShoulder
Spine
• Proliant® pedicle screw system;
Silverbolt® MIS screw system
• Octane® PEEK cervical interbody;
Gibralt® posterior cervical
• Octane® Lumbar Interbody;
Expandable PEEK interbody
Expanding portfolio of spinal innovations
Portfolio PipelineExactech Spine
Design & Development Limited Launch Full Launch Brand Maintenance
Gibralt Line Ext.
Acapella One
Octane Straight Ti-coating
Octane MSilverbolt 2
Gibralt Occipital
Proliant Line Ext
Cervical Plate
Cervical Interbody
Silverbolt Octane T, P
Octane Straight
Proliant
Gibralt
Hydralok
Synergent DBM
2016 2H’15 1H’15
Exactech manufacturing
• Focused on U.S. manufacturing
• Up to 80% in-house
• Controlling costs to offset pricing
pressures and expand margins
Distributors
Global Offices
Manufacturing locations
Subsidiaries & HQ
USA
US
Network of independent sales agencies
Managed by corporate regional vice presidents
OUS
Network of independent distributors and wholly-owned subsidiaries
Direct operations in: Canada, UK, Spain, Germany, France, Japan, China
Our reach.
205
224
237
248 251
100
160
220
280
11 12 13 14 15G
Revenues ($ Mil)
FY Guidance$248-254MM; 0-3% increase;
3-6% constant currency
0.67
0.96
1.12
1.181.21
0.50
0.70
0.90
1.10
1.30
11 12 13 14 15G
EarningsPer Share
FY’15 Guidance
$1.18-1.24
Financial Trends
$ and shares in millions Mar- 15 Dec-14
Cash $12.3 $10.1
Debt $22.5 $23.3
Shareholders’ Equity $213.7 $211.4
Common Shares Outstanding (1) 14.2
Market Value (2) $293.5
(1) Fully diluted shares as reported in 5.7.15 10-Q(2) Share price of $20.98 as of 5.15.15 close
Summary Financial Data
Consistency in leadership.
• 30+ years average
industry experience
• 25 years average tenure
with Exactech
Founders and Officers
2015 Initiatives
Sustain momentum in Extremities- glenoid / augment launch
Return to above market Knee / Hip growth
Continue launches of organic spinal products
ExactechGPS (Guided Personalized Surgery) Knee
Alteon™ Hip system launch
Major new Knee & Hip Revision launches
Continue cash flow results from lean supply chain initiatives
Leverage opportunities to acquire seasoned sales agents due to market disruption
Why Exactech.
• Culture, agent relationships &
surgeon leadership
• Understanding of market needs
• Patient-driven innovations &
robust product pipeline
• Proven financial performance
and corporate stability
Thank you.