Wright Medical — Tornier — Q4 2014 Earnings Presentation
25 slides from Wright Medical's earnings presentation, Jan 12, 2015
Slide 1: Investor Presentation 4Q 2014
Investor Presentation 4Q 2014 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements Statements contained in this presentation that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future ev
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures Tornier uses certain non-GAAP financial measures in this presentation, such as adjusted EBITDA, adjusted gross margin and constant currency. Tornier uses non-GAAP financial measures as supplemental measures of performance and believes these mea
Slide 4: A global medical device company focused on orthopaedic extremities
Tornier is… A global medical device company, focused on providing superior surgical solutions treating orthopaedic extremities injuries & disorders.
Slide 5: Well-Positioned for Long-Term Growth & Margin Expansion
Tornier is Well-Positioned for Long-Term Growth & Margin Expansion Based upon management estimates RESULTS DRIVEN TEAM
Slide 6: Well-Positioned for Long-Term Growth & Margin Expansion
Tornier is Well-Positioned for Long-Term Growth & Margin Expansion Based upon management estimates RESULTS DRIVEN TEAM
Slide 7: Well-balanced across Upper and Lower Extremities
LOWER EXTREMITIES Tornier is Well-balanced across Upper and Lower Extremities UPPER EXTREMITIES Leveraging dedicated sales reps and a broad & innovative portfolio, Tornier plans to drive above market growth in both upper and lower extremities
Slide 8: Extremities Market Growth driven by Demographics, Clinical Practice Patterns, and Design Enhancement
Extremities Market Growth driven by Demographics, Clinical Practice Patterns, and Design Enhancement • Unmet need for Early-intervention • Revision of existing Shoulders & Ankles • Less-invasive and Revise-able Devices • Aging population – Aging Workforce • Awareness to treatment options • “Quality
Slide 9: Global Upper Extremity Market driven by US Shoulder Volumes and Surgeon Practice Patterns
Global Upper Extremity Market driven by US Shoulder Volumes and Surgeon Practice Patterns US will remain > 70% of Global Market Size through ’19 • Additional Reversed Shoulder Arthroplasty adoption • Increased volumes through General Orthopaedic surgeons • Market expansion to early intervention and
Slide 10: Global Lower Extremity Market Driven by US Foot & Ankle Volumes
Global Lower Extremity Market Driven by US Foot & Ankle Volumes, Indication Specific Designs and Shifts in Practice US INTL Global Foot & Ankle Market By Segment Ankle Arthritis market expected to double within 4 – 5 yrs. • Shift in practice to TAA with ASP’s at 4x Fusion • Clinical data and Ease of
Slide 11: Well-Positioned for Long-Term Growth & Margin Expansion
Tornier is Well-Positioned for Long-Term Growth & Margin Expansion Based upon management estimates RESULTS DRIVEN TEAM
Slide 12: Comprehensive Portfolio Provides Full-line Support to the Extremity Surgeon
Tornier’s Comprehensive Portfolio Provides Full-line Support to the Extremity Surgeon JOINT REPLACEMENTS BONE REPAIR BIOLOGICS SOFT TISSUE REPAIR PROCEDURES Number of Extremities Products: UPPER Shoulder, Elbow, Hand & Wrist LOWER Foot & Ankle
Slide 13: Me! D
ae [Lo ay Me! D «fe US * TORNIER (@)
Slide 14: Anticipates a Mid-2015 US Launch of Simpliciti Ultra Short Stem Total Shoulder
Tornier anticipates a Mid-2015 US Launch of Simpliciti, Ultra Short Stem Total Shoulder Ultra Short Stem Estimated Market Opportunity: $200m - $250m • TSA penetration of Ultra Short Stem expected to reach 25% by 2019 • Ultra Short Stem will enable shift from Hemi-Shoulder to TSA • Ultra Short Stem o
Slide 15: Well-Positioned for Long-Term Growth & Margin Expansion
Tornier is Well-Positioned for Long-Term Growth & Margin Expansion Based upon management estimates RESULTS DRIVEN TEAM
Slide 16: The US Sales Channel has been Restructured with a Significant Portion now Direct Sales Territories
TODAY EXITING 2014 The US Sales Channel has been Restructured with a Significant Portion now Direct Sales Territories EXITING 2012 2014 US Revenue: ~ $200 Million 2014 US Growth Rate: 10% US Revenues represent ~ 58% of Total Revenue
Slide 17: Focused on Transforming to a Competitively Superior Sales Force
While Work Remains, Tornier is Focused on Transforming to a Competitively Superior Sales Force Agreements & Alignment Distributor Negotiation US Sales Channel Transformation Sales Mgmt. & Training Org. Timing 2012 Desired State Rep Training & Education Performance & Productivity Territory Staffing U
Slide 18: Strong International Footprint with Direct Sales in most Major Geographies
Tornier has a Strong International Footprint with Direct Sales in most of the Major Geographies Primarily direct sales Primarily distributor Mixed Model Country Office 2014 OUS Revenue: ~145 Million 2014 OUS Growth Rate: ~13% OUS Revenue represents ~ 42% of Total Revenue
Slide 19: International Commercial Team plans to Leverage Three Drivers for Above-market Growth
Our International Commercial Team plans to Leverage Three Drivers to Sustain Above-market Extremities Growth Selectively Invest in Emerging Markets 3 Introduce New Technologies in key geographies 2 Increased Penetration in existing geographies 1 • Establish Emerging Market Presence with Select Inves
Slide 20: Well-Positioned for Long-Term Growth & Margin Expansion
Tornier is Well-Positioned for Long-Term Growth & Margin Expansion Based upon management estimates RESULTS DRIVEN TEAM
Slide 21: Plans to Expand Gross Margin and Leverage Expenses to Deliver >20% EBITDA by FY19
Tornier plans to Expand Gross Margin and Leverage Expenses to Deliver >20% EBITDA by FY19 Gross Margin History & Expansion Plans Improvement Levers EBITDA History & Improvement Plans Improvement Drivers (in addition to GM expansion) • Manufacturing Efficiencies • Product Process Improvements • Insou
Slide 22: Full Year 2014 Financial and Key Metrics Update
Full Year 2014 Financial and Key Metrics Update FY14 Financial Update (1) Revenue (2) : 4Q: ~$96 million, 14.6% growth FY: ~$345 million, 11.3% growth Extremities revenue (2) : 4Q: ~$79 million, 16.0% growth FY: ~$288 million, 11.7% growth (1) Preliminary and unaudited (2) Constant currency, which i
Slide 23: Wright Medical and Tornier agree to merge
Wright Medical and Tornier agree to merge… Wright and Tornier Agree to Merge Creating Premier High-Growth Extremities-Biologics Company Combination Offers Comprehensive Upper & Lower Extremity Product Portfolio with Broad Global Reach Further Accelerates Growth Opportunities in Three of the Fastest
Slide 24: Well-Positioned for Long-Term Growth & Margin Expansion
Tornier is Well-Positioned for Long-Term Growth & Margin Expansion Based upon management estimates RESULTS DRIVEN TEAM
Slide 25: Thank You
Thank You