Slide 1: Voce Capital Management
vocecapital research | management © Voce Capital Management; August 2014 vocecapital research | management 0
Slide 2: CONMED Corporation: Correcting the Record
CONMED Corporation: Correcting the Record August 2014 vocecapital research | management
Slide 3: Summary
Summary ConMed filed an investor presentation after market-close on August 22, 2014 Voce believes the Board's analysis is misleading in many regards Overstates ConMed’s revenue growth and EBITDA margin improvement by: Choosing 2009 (trough year) as its starting point Failing to include 201
Slide 4: Overstated revenue growth
Overstated revenue growth ConMed’s portrayal $800 $767 $763 $750 $725 $714 $mm $695 $700 $650 $600 2009A 2010A 2011A 2012A 2013A Reality 6 Year CAGR: (0.0%) $800 $767 $763 $742 $740 $750 $725 $714 $mm $695 $700 $650 $600 2008A 2009A 2010A 2011A 2012A 2013A 2014E ¹ Notes: Includes inorganic growth. E
Slide 5: Inflated EBITDA margin improvement
Inflated EBITDA margin improvement ConMed’s portrayal Reality Approximately flat margins 20% 17.4% 18.0% 15.7% 16.0% 15.3% 14.7% 15% 13.3% 10% 5% 0% 2008 2009 2010 2011 2012 2013 PF 2013 ¹ 1. Adjusted for (a) MTF acquisition which, due to unusual accounting treatment, results in revenue to ConMed at
Slide 6: Shameless cherry-picking
Shameless cherry-picking ConMed chooses a favorable peer set to flatter its relative performance The Board ignores its own previous objective "peer sets" Public orthopedic competitors mentioned in ConMed’s previous 10-Ks Peers from 2013 proxy statement Most recent proxy peer group selected
Slide 7: Peer selection case study: THOR vs. HTWR
Peer selection case study: THOR vs. HTWR Two very similar companies: THOR is included in ConMed’s self-defined peer group; HTWR is excluded M a rk e t Cardiac: Ventricular Assisted Devices Cardiac: Ventricular Assisted Devices M a rk e t C a p $1.4 billion $1.4 billion M a rk e t P o s it io n #1 St
Slide 8: Misleading assertions about settlement discussions
Misleading assertions about settlement discussions ConMed’s Assertion Reality CONMED desires to “settle with Voce Capital in order to focus on Misleading. ConMed failed to accept Voce’s offer to settle by appointing execution” and wishes “to avoid the distraction of a proxy contest”1 two indepen
Slide 9: The choice for shareholders remains the same
The choice for shareholders remains the same Execution and Performance Culture: Product Development, Operations and Sales & Marketing Jim Green Jo Ann Golden Medtech public company Retired accountant CEO Duplicative experience with Product development and M. Tryniski operations expertise 1
Slide 10: Legal Disclaimer
Legal Disclaimer THIS PRESENTATION INCLUDES INFORMATION BASED ON DATA FOUND IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INDEPENDENT INDUSTRY PUBLICATIONS AND OTHER SOURCES. ALTHOUGH VOCE CAPITAL MANAGEMENT LLC, ITS AFFILIATES AND NOMINEES (THE “PARTICIPANTS”) BELIEVE THAT THE DATA IS REL