Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Investor Presentation (March 2019)
16 slides from Enovis's investor presentation, Mar 12, 2019
Slide 1: 2019 Outlook
2019 Outlook March 12, 2019
Slide 2: Forward-Looking Statements, Non-GAAP Measures
Forward-Looking Statements, Non-GAAP Measures The following information may contain forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to Colfax
Slide 3: DJO Acquisition Completed
DJO Acquisition Completed ▪ Significant improvement in Colfax portfolio ▪ Higher margins, lower cyclicality ▪ Integration well underway, DJO team energized ▪ CBS training and resourcing launched pre-close ▪ Re-igniting longer-term growth potential of the business ▪ Increasing new product and workflo
Slide 4: Improving Portfolio Quality
Improving Portfolio Quality Pro forma for: September 2018 Portfolio DJO Acquisition Potential Howden Sale 2018 TTM $3.56bn $4.76bn $3.32bn Sales Gross Margin 30.8% 37.7% 42.6% +1180 bps Adj EBITDA $442mm $710mm $531mm & Margin 12.4% 14.9% 16.0% +360 bps Lower ✓ ✓✓ Cyclicality Creating a higher margi
Slide 5: DJO Strategic Rationale & Financial Goals
DJO Strategic Rationale & Financial Goals Colfax New DJO a Clear Fit DJO Performance Goals Platform Criteria ✓ Steady growth and Attractive end- beneficial secular trends markets ✓ Low cyclicality and Improve adj Ramp to volatility EBITDA 4-5% annual ✓ margins >50 #1 in Bracing and Rehab growth Mark
Slide 6: Integration Update
Integration Update ▪ DJO team, led by Brady Shirley, energized to join Colfax ▪ Quickly connecting DJO into Colfax processes ▪ CBS training underway, cascading through business ▪ Working together to bring extra support to highest priorities ▪ Standard work 100-day review to lock-in longer-term value
Slide 7: DJO 2019 Plan
DJO 2019 Plan ▪ Improve to LSD growth ▪ Continue Reconstructive share gain ▪ Return Prevention & Rehabilitation to growth DJO 2019 ▪ Improve reimbursement process 12-Month ▪ Complete operational transformation Plan ▪ Stabilize Prevention & Rehabilitation supply chain ▪ 1-3% Drive procurement and val
Slide 8: 2019 Outlook Update
2019 Outlook Update FabTech A&GH MedTech MedTech (12 months) (12 months) (10 months) (12 months) Adj. OP margins 12.25-12.75% 11-12% 11-12% 11-12% Acquisition amortization ~$35mm ~$28mm ~$65mm ~$78mm Inventory step-up - - ~$20mm ~$20mm Adj. EBITA margins 13.5-14.5% 13-14% 19-20% 18-19% Depreciation
Slide 9: Appendix
APPENDIX 9
Slide 10: DJO: Market Leader
DJO: Market Leader Prevention & Rehabilitation ($4bn market; 3-4% growth) Competitors ▪ Breg ▪ Ossur BRACING: Rigid and soft bracing for use in both #1 ▪ DeRoyal functional and acute settings GLOBALLY ▪ Dynatronics REHABILITATION: Musculoskeletal, neurological and #1 ▪ Kinetec soft tissue treatment
Slide 11: 2019 Outlook Update Provided on February 13th
2019 Outlook Update Provided on February 13th ▪ First quarter is progressing in-line with expectations ▪ Re-affirming 2019 guidance for legacy businesses communicated on the December Outlook Call ▪ Sales growth Total 7-9%; core MSD; acq. MSD; FX (LSD) ▪ Quarterly sales profile 23-24%, 25-26%, 24-25%
Slide 12: Current Portfolio Segment EBITDA (Unaudited)
Current Portfolio Segment EBITDA (Unaudited) Fabrication TTM as of September 28, 2018 Air & Gas Handling Corporate Consolidated Technology Adjusted EBITDA Net sales $ 1,437.3 $ 2,118.4 $ - $ 3,555.7 Operating income $ (103.7) $ 220.6 $ (57.9) $ 59.0 Restructuring and other related charges 64.1 21.9
Slide 13: DJO Historical EBITDA (Unaudited)
DJO Historical EBITDA (Unaudited) Year Ended December 31, TTM September 29, 2013 2014 2015 2016 2017 2018 Adjusted EBITDA Net Sales $ 1,020.8 $ 1,087.5 $ 1,113.6 $ 1,155.3 $ 1,186.2 $ 1,203.7 Net income attributable to DJO Global $ (203.4) $ (90.5) $ (340.9) $ (286.3) $ (35.9) $ 0.4 Discontinued ope
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended Adjusted Net Income and Adjusted Net Income Per Share December 31, 2018 Net income from continuing operations attributable to Colfax Corporation (1) $ 168.5 Restructuring and other related charges- pretax 77.7 Pension settlement (gain) loss – pretax (0.0) Acquisiti
Slide 15: Historical Information (Unaudited)
Historical Information (Unaudited) Three Months Ended March 30, 2018 Three Months Ended June 29, 2018 Air and Gas Fabrication Corporate Total Colfax Air and Gas Fabrication Corporate Total Colfax Handling Technology and Other Corporation Handling Technology and Other Corporation Net sales $ 347.7 $
Slide 16: Historical Information (Unaudited)
Historical Information (Unaudited) Three Months Ended March 31, 2017 Three Months Ended June 30, 2017 Air and Gas Fabrication Corporate Total Colfax Air and Gas Fabrication Corporate Total Colfax Handling Technology and Other Corporation Handling Technology and Other Corporation Net sales $ 273.6 $