Integra Lifesciences Holdings Corporation · NASDAQ:IART
Integra Lifesciences — Investor Presentation (November 2014)
23 slides from Integra Lifesciences's investor presentation, Nov 13, 2014
Slide 1: Integra Investor Presentation
Integra Investor Presentation November 13, 2014 San Francisco, CA Investor Meeting at the North American Spine Society 1
Slide 2: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Measures
Forward-Looking Statements Safe Harbor and Non-GAAP Financial Measures Certain statements in this presentation (including statements regarding the Company’s estimates and expectations) that are not historical in nature are “forward-looking” statements within the meaning of the Private Securities Lit
Slide 3: Agenda
Agenda Review of Integra Strategic Changes • Peter Arduini, President and Chief Executive Officer Overview of SeaSpine • Peter Arduini Q&A • Peter Arduini • Glenn Coleman, CVP, Chief Financial Officer • Kirt Stephenson, Planned to-be-named Chairman of SeaSpine • Meeting Attendees 3
Slide 4: Key Takeaways
Key Takeaways Changes to Align Portfolio Will Create Shareholder Value Benefits to Simplified, focused two-division global structure enhances New Integra’s financial profile New Integra • Positioned for long-term top-line revenue growth target of 5–7% • Reiterating long-term Adjusted EBITDA margin t
Slide 5: Integra Strategy Update
Integra Strategy Update Peter Arduini, President and Chief Executive Officer 5
Slide 6: Our Strategy
Our Strategy Our Brand Promise: Limit Uncertainty Our Vision: To Become A Multi-Billion Dollar Global Medical Technology Company Our Strategy: Accelerate Execute Optimize Growth Long-Term Growth Targets Organic Revenue 5 - 7% with acquisitions 7% + Adj. Gross Margin 68 - 70% Adj. EBITDA 23 - 24% Adj
Slide 7: Business Composition
Business Composition 2014E* Revenue % Contribution Neurosurgery 26% Instruments 17% Extremities 15% Spine 19% International 23% *2014E based on midpoint of revenue guidance of $920-$940M and segment growth rates provided on 11/3/2014. 7
Slide 8: Integra: Positioned to Win
Integra: Positioned to Win CURRENT STRUCTURE 2015 PLANNED STRUCTURE Neurosurgery Specialty Surgical Solutions Global Instruments Extremities Wound Care Ortho & Tissue Technologies Global Spine Private Label International Spin Off Spine Currently Operating as Five Segments; Moving to Two Global Busin
Slide 9: Specialty Surgical Solutions Overview
Specialty Surgical Solutions Overview Key Products Specialty Lighting General Surgery, Collagen Benefits of Integrating Oral Surgery Instruments & Solutions Solutions Retractors & Containers Solutions Instruments and Neurosurgery • Increased growth with both Dural Neuro Tissue Cranial Repair Critica
Slide 10: Ortho & Tissue Technologies Overview
Ortho & Tissue Technologies Overview Key Products Regenerative Skin & Specialty Extremity Benefits of Orthopedics Burn Products Products and Tissue Technologies Structure • Focus on Extremities and Wound Regenerative Care markets; accelerated growth Nerve and Tendon • Synergies between collagen expe
Slide 11: Regenerative Technologies at the Core
Regenerative Technologies at the Core Neurosurgery Extremities Spine Dural Repair Skin & Wound Orthobiologics Appx. LTM* Revenue $140M** $75M $65M Market Procedures ~700,000 ~750,000 (U.S.) ~200,000 Future Next-gen onlay Investment in Human cell Advancements and sealant clinical studies integration;
Slide 12: Pro Forma Integra
Pro Forma Integra New Integra Today* Change Ex-Spine Revenue $895M ($140M) Revenue Growth ~8% + ~1 point Adjusted Gross Margin 66% Slightly dilutive to unch. Adjusted EBITDA Margin 19% Accretive Adjusted FCF Conversion 34% Accretive *Last twelve months ended September 30, 2014 as reported; Includes
Slide 13: SeaSpine Positioned to Grow Faster Post-Spin
SeaSpine Positioned to Grow Faster Post-Spin Target PublicCo Today* Peers for SeaSpine ** Revenue Growth Flat to down low-single-digits Up mid-to-high single-digits Profitability YES Over time, with scale OUS Revenue as % of Total ~11% ~23% R&D (%) ~6% ~8% Selling & Marketing (%) ~38% ~44% Avg. # of
Slide 14: Integra Positioned To Grow Faster In New Structure
Integra Positioned To Grow Faster In New Structure ~1% 5 - 7% 1 - 3% ~3% 2014 Est. Focus on Ex-Spine Five-Year Organic New Markets, Organic Growth New Products Growth Simplified, Focused Structure to Drive Global Growth Ortho Tissue Technologies Specialty Surgical Solutions • DFU, shoulder, ankle, s
Slide 15: Overview of SeaSpine
Overview of SeaSpine Peter Arduini 15
Slide 16: Spine Market Dynamics
Spine Market Dynamics Revenue Growth Rate (%) Diversified Pure Play Qualities of Successful Players Higher commercial investments as % of sales Differentiated portfolio Focus on spine SeaSpine New product pipeline Diversified Peers: Biomet, Pure Play Peers Include: Strong balance sheet DeP
Slide 17: Why Spin-Off Versus Sale?
Why Spin-Off Versus Sale? A Thorough Internal Review Determined a Spin-Off Creates More Shareholder Value Than a Sale Process Sale Spin-off Spine Market Conditions Improving Improving Valuation Unattractive More attractive; similar to public company peers Distribution Stability Non-exclusive distrib
Slide 18: The New SeaSpine Overview
The New SeaSpine Overview • Compelling portfolio of hardware and Pure Play orthobiologics solutions Total Addressable Spine Company • Agile, focused company where new Market: $5.3 B strategies can be implemented faster • Spine market is recovering with the Large and number of procedures growing Impr
Slide 19: SeaSpine: Differentiated Portfolio
SeaSpine: Differentiated Portfolio Orthobiologics Hardware LTM Revenue*: ~$65 million LTM Revenue*: ~$75 million MOZAIK™ Putty Anterior Cervical Fixation Accell® DBM Products Lateral IBD Shaped Strip DBM MIS Solutions MOZAIK™ Strip NanoMetalene™ IBD Standard DBM Products Deformity Correction Cancell
Slide 20: Product Pipeline
Product Pipeline Anterior Cervical Plate System* $500M Market Segment Hollywood Expandable IBD NanoMetalene™ 5 New $400M Market Segment $200M Market Segment Product Introductions in 2015 Lateral IBD Shaped Strip DBM *Awaiting FDA approval. $250M Market Segment $400M Market Segment Broad Hardware Sol
Slide 21: SeaSpine Investment Highlights
SeaSpine Investment Highlights SeaSpine Will be Positioned to Become a Premier Pure Play Spine Company Comprehensive Strategic Focus; Experienced Portfolio Positioned for Growth Leadership Team • Broad portfolio of • Agile, pure play where • Experienced CEO being hardware solutions: strategies can b
Slide 22: Key Takeaways
Key Takeaways Changes to Align Portfolio Will Create Shareholder Value Benefits to Simplified, focused two-division global structure enhances New Integra’s financial profile New Integra • Positioned for long-term top-line revenue growth target of 5–7% • Reiterating long-term Adjusted EBITDA margin t
Slide 23: Integra Investor Presentation
Integra Investor Presentation November 13, 2014 San Francisco, CA Investor Meeting at the North American Spine Society 23
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