Transcript Corporate Update

INVESTOR UPDATE
1Q | 2015
KEY TO OUR SUCCESS
Exactech 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
Proven track record of growth.
(annual sales $ mil)
2014
Launch of
ExactechGPS®
300
CAS Technology
Acquisition
250
2010-12
Expanded
OUS Direct
Operations
200
2008
Entered
Spine
Market
150
1998
Entered
Biologics
Market
100
50
1994
First
Knee
Implant
Sales
1985
Exactech
Founded
2005
Equinoxe®
Shoulder
Launch
2008
French
Distributor
Acquisition
Internal
Manufacturing
1996
IPO
2010
Vertical
Supply
Acquisitions
2001
First Bone
Cement Sales
0
1985
1990
1994
1998
2002
2006
2010
2014
Targeting Highly Attractive Markets
2014 Sales ($Billion)
10
Spine
8
Knee
Hip
6
Biologics
4
2
Extr
0
0
2
4
6
8
2014 Growth Rates
Source: OrthoWorld Orthopaedic Industry Annual Report 2015
10
12
Broad Portfolio of Innovative Products
2014 Sales by Business Unit ($ millions)
Bio-Spine
$23.8
10%
Extremities
$79.0
32%
Hip
$43.5
17%
Knee
$78.7
32%
Other
$23.4
9%
2014 sales by product line based on 2014 SEC 10-K
Optetrak® Logic Knee System
Comprehensive total knee system with excellent clinical results.
•
30-year evolved design
•
Streamlined instrumentation
•
Multiple constraint options for
primary & revision knees with
NCM poly
•
ExactechGPS®
ExactechGPS®
Guided, personalized surgery provides an effective solution to
unmet needs
•
Implant alignment accuracy
& precision
•
Ease of use, cost-effective
•
Surgeon maintains
operating control
•
Competitive marketing edge
for hospitals
Portfolio Pipeline
Exactech Knee
Concept
Design & Development
Limited Launch
Full Launch
Brand Maintenance
Adv.
Ligament
Balancing
Logic PS
Logic
Uni
Logic
CC
Logic
Porous
Tibia
GPS
Uni
Application
GPS
CC
Application
Logic CR
Porous
GPS v2
Logic
RBK (US)
Logic
CRC
Logic PS
Porous
2H’15
1H’15
Logic CR
Logic FIT
FBK
Cemented
Logic Fit
RBK
Cemented
GPS
Asymmetric
Patella
2016
Logic
PSC
Optetrak
PS/CR/R
BK
Optetrak
CC
Extremities
Equinoxe® Platform Shoulder redefining intra-operative flexibility, solving clinical
challenges surgeons face
•
Comprehensive platform
system
•
Embraces the Glenoid with
unique bone-conserving
solutions
•
Pipeline of strong clinical
publications
Portfolio Pipeline
Exactech Extremities
Concept
Design & Development
Limited Launch
Full Launch
Brand Maintenance
Low Cost
Shoulder
Augmented
Reverse
Shoulder
Muscle
Augments
GPS
Shoulder
Revision/Tumor
Humeral Stem
Cuff Sparing
Instruments
Total
Ankle
Upgraded/
Ceramic
Glenosphere
2016
CTA HH
Cage/
Augmented
Glenoid
Short/
Stemless
Shoulder
2H’15
Resurfacing
Humeral
Head
1H’15
Proximal
Fx Plate
Cage
Glenoid
Post Aug
Glenoid
Platform
Fx Stem
Reverse
Shoulder
Primary
Shoulder
UHMWPE
Glenoids
Humeral
Heads
Original
Fx Stem
Hip
Addressing the major philosophies of THA
•
Alteon® tapered wedge and Neck
Preserving stem designs
•
Direct anterior approach
instrumentation
•
Acetabular cup with InteGrip®
technology
Portfolio Pipeline
Exactech Hip
Concept
Design & Development
Limited Launch
Full Launch
Alteon
Platform
Acetabular Sys
Alteon
HA
Alteon
Revision
Modular
Alteon
Wedge
Alteon
Revision
Monoblock
Universal
Cup EMEA
Brand Maintenance
Novation
Primary
Femoral
Element
Femoral
Alteon Neck
Preserving
AcuMatch
Femoral
GXL Cup
InteGrip
Cup
2016
2H’15
1H’15
Crown
Cup
AcuMatch
Cup
Biologics
Innovative, clinically effective biomaterials
•
Optecure® / Opteform®
Allograft DBM products
•
Accelerate® Cell Therapy
•
Cartilage repair technology
under development
Portfolio Pipeline
Exactech Biologics
Concept
Design & Development
Limited Launch
Full Launch
Brand Maintenance
Optecure and
Optcure CCC
BiCRI
Accelerate
PRP Sport
Allograft
Cartilage
Accelerate
PRP
Tenomend
Graft
Delivery
System
Pure PRP
Ossigen
Opteform
frozen
Opteform and
Optefil RT
Reveille
(Mincer)
OpteMX*
*Distributed Product
Cement
Safety, simplicity and efficacy
•
Cemex® bone cement
•
InterSpace® pre-formed hip, knee
and shoulder spacers
•
InterSpace® high release
Portfolio Pipeline
Exactech Cement
Concept
Design & Development
Limited Launch
Full Launch
Brand Maintenance
AcuDriver
Low Cost
Cement
InterSpace
Modular
Knee
InterSpace
Flat Hip
Cemex
System
InterSpace
Knee
Interspace
Shoulder
Cemex
Manual
InterSpace
Hip
Spine
Expanding portfolio of spinal innovations
•
Proliant® pedicle screw system;
Silverbolt® MIS screw system
•
Octane® PEEK cervical interbody;
Gibralt® posterior cervical
•
Octane® Lumbar Interbody; Expandable
PEEK interbody
Portfolio Pipeline
Exactech Spine
Design & Development
Limited Launch
Full Launch
Brand Maintenance
Octane
Straight
Gibralt
Line Ext.
Cervical
Silverbolt 2
Plate
Silverbolt
Octane T, P
Octane M
Acapella
One
Octane
Proliant
Line Ext
Gibralt
Occipital
Hydralok
Proliant
Synergent
Straight
DBM
Ti-coating
Gibralt
Cervical
Interbody
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
Our reach.
US

Network of independent
sales agencies

Managed by corporate
regional vice presidents
USA
OUS
Distributors
Global Offices
Manufacturing locations
Subsidiaries & HQ

Network of independent
distributors and whollyowned subsidiaries

Direct operations in:
Canada, UK, Spain,
Germany, France, Japan,
China
Financial Trends
280
Revenues ($ Mil)
248
1.30
251
Per Share
237
224
220
Earnings
1.18
1.21
1.12
1.10
205
0.96
0.90
160
0.70
0.67
0.50
100
11
12
13
14
FY Guidance
$248-254MM; 0-3% increase;
3-6% constant currency
15G
11
12
13
FY’15 Guidance
$1.18-1.24
14
15G
Summary Financial Data
$ 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)
Market Value (2)
14.2
$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
Consistency in leadership.
Founders and Officers
•
30+ years average
industry experience
•
25 years average tenure
with Exactech
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.