Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q2 2022 Earnings Presentation
22 slides from Orthofix Medical's earnings presentation, Aug 5, 2022
Slide 1: Improving patient mobility through innovation
Improving patient mobility through innovation 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Except for historical information contained herein, the statements made in this presentation constitute forward-looking statements that involve certain risks and uncertainties. These forward-looking statements are based on our beliefs and ex
Slide 3: About Orthofix
ABOUT ORTHOFIX We are a global medical device and biologics company with a spine and orthopedics focus. Our mission is to deliver innovative, quality-driven solutions while partnering – Helen PhysioStim Patient with health care professionals to improve patient mobility. 3
Slide 4: Transformational Leadership
Transformational Leadership Management team with industry leading experience Jon Serbousek Ehab Esmail President and Chief Executive Officer Senior Vice President, Quality, Regulatory and Clinical Affairs Doug Rice Roberto Donadello Chief Financial Officer Senior Vice President, Global Operations Ki
Slide 5: Orthofix Evolution
MOVING FORWARD Orthofix Evolution • Sustainable high-single-digit growth • Taking market share by investing and building on our core strengths ORTHOFIX TODAY • Accelerating R&D, strategic • Delivering and investing in partnerships, and disciplined innovation M&A OUR FOUNDATION • Experienced leadersh
Slide 6: Market & Portfolio
MARKET & PORTFOLIO – Randy Firefighter and M6-C Artificial Cervical Disc Patient 6
Slide 7: Orthofix Core Strengths & Synergies
Orthofix Core Strengths & Synergies Delivering best-in-class spine and focused orthopedic solutions SPINAL IMPLANTS ORTHOPEDICS Motion Preservation BIOLOGICS & Limb Reconstruction REGENERATIVE Spine Fixation TECHNOLOGIES Deformity Correction Bone Growth Therapies Biologic Solutions 77
Slide 8: Spinal Implants: Focused Execution
Spinal Implants: Focused Execution Innovative artificial cervical disc and comprehensive spine fixation portfolio MOTION PRESERVATION SPINE FIXATION • 60,000+ M6-C™ artificial cervical discs implanted over • Comprehensive interbody offering (PEEK, PTC, the span of 16+ years 3D-Printed Titanium, and
Slide 9: Orthopedics: Limb Reconstruction & Deformity Correction
Orthopedics: Limb Reconstruction & Deformity Correction Innovator in focused surgical specialties PEDIATRIC CHARCOT FOOT POST-TRAUMATIC • Comprehensive deformity correction portfolio • Adult diabetic deformity correction solutions • Complex limb reconstruction • History of cutting-edge pediatric sol
Slide 10: Biologics & Regenerative Technologies
Biologics & Regenerative Technologies Market-leading applications for spine and orthopedic patients BONE GROWTH THERAPIES - NONSURGICAL BIOLOGIC THERAPIES - SURGICAL • #1 prescribed bone growth stimulator in U.S. • #1 cellular allograft market share in spine • Proven Pulsed Electromagnetic Field (PE
Slide 11: Investing for the Future
INVESTING FOR THE FUTURE – Jennifer Spine Fixation Patient 11
Slide 12: Strategic Investment to Accelerate Sustainable Growth
Strategic Investment to Accelerate Sustainable Growth PRODUCT INNOVATION & DIFFERENTIATION • Creating consistent cadence of launches with high velocity innovation cycle • Partnering with surgeons to deliver differentiated solutions • Acquiring assets within focused verticals that add value • Investi
Slide 13: Accelerating Innovation for Value Creation
Accelerating Innovation for Value Creation CGBio Novosis™ rhBMP-2 recombinant bone growth protein IGEA N. America Bone Opus™ Mg Set Synthetic nView enabling technology Fitbone partnership with Growth Portfolio Biologic investment and Lima Orthopedics co-development Fitbone™ US Pediatric FiberFuse™ S
Slide 14: Orthofix Growth Drivers: Near Term
Orthofix Growth Drivers: Near Term Meaningful opportunities to grow within current significant markets M6-C DISC FITBONE INTERBODIES BIOLOGICS ACCELSTIM • Attracting new users • Strong early adoption • Comprehensive interbody • Building a robust portfolio • Ultrasound technology offering (PEEK, PTC,
Slide 15: Orthofix Growth Drivers: Future
Orthofix Growth Drivers: Future Notable growth opportunities through new indications and procedural solutions MID-TERM LONG TERM ASC SOLUTIONS PEDIATRICS FITBONE RCSTIM CGBIO FITSPINE • Neo Medical partnership • TrueLok™ expansion • Trochanteric nail system • Rotator Cuff IDE clinical • Conduct IDE
Slide 16: Commercial Channel
Commercial Channel Transforming our sales channel to realize synergies and sustained growth FOCUS ON MORE STRATEGIC DEDICATED MAXIMIZE BUSINESS COLLABORATIONS SALES CHANNEL PARTNERS BETWEEN SPINE AND ORTHOPEDICS • Selling multiple OFIX product lines • Cross-selling biologics & regenerative portfolio
Slide 17: Financial Overview
FINANCIAL OVERVIEW – Laura Wilkinson Three-Time Olympian and Orthofix Spine Patient 17
Slide 18: 2021 Revenue Mix
2021 Revenue Mix SPINAL IMPLANTS LIMB RECONSTRUCTION & 25% 23% DEFORMITY CORRECTION • Spine Fixation • Motion Preservation • Pediatric $464M • Charcot Foot 14% YoY Growth • Post-Traumatic REVENUE BY GEOGRAPHY 52% 22% 78% BIOLOGICS & REGENERATIVE TECHNOLOGIES • Bone Growth Therapies – clinical U.S. I
Slide 19: Quarterly Highlights
Quarterly Highlights SECOND QUARTER 2022 REVENUE $125 M • $118 million in net sales, flat on a constant currency basis $121 M $118 M versus the prior year $112 M • Global Orthopedics net sales growth of 11% on a constant $106 M currency basis driven by new products and channel expansion • Executed p
Slide 20: Financial Overview
Financial Overview TTM FY 22 Guidance REVENUE 1% CC Gross Margin 74% 74-75% Adj. EBITDA Margin 10% 12%* $460 M $464 M $460 M* June 30, 2022 Cash & Equivalents $60 million $407 M Long-Term Debt $0 2019 2020 2021 2022 F * Midpoint of August 5, 2022 full year guidance 20 20
Slide 21: Investment Highlights
Investment Highlights Taking market share by investing and building on core strengths Near-term momentum building to sustainable high-single-digit revenue growth Strong balance sheet and ability to invest organically and inorganically Innovative and differentiated products and surgical solutions Str
Slide 22: Orthofix (NASDAQ:OFIX)
Orthofix (NASDAQ:OFIX) ANALYST COVERAGE JMP Securities David Turkaly Ladenburg Thalmann & Co Jeffrey Cohen Sidoti & Company Jim Sidoti Stifel Mathew Blackman IR Contact: Alexa Huerta, Senior Director of IR 214-937-3190 alexahuerta@orthofix.com 22 22