Xtant Medical Holdings, Inc. · AMEX:XTNT

Xtant Medical — Bacterin International Holdings — Merger or Acquisition (July 2015)

28 slides from Xtant Medical's merger presentation, Jul 28, 2015

  1. Slide 1: Confidential Investor Presentation July 2015

    C ONFIDENTIAL INVE S T OR PRESEN TA TION JU L Y 2 0 15 OT C QX: BONE

  2. Slide 2: Important Cautions Regarding Forward Looking Statements

    IMPOR T ANT C A UTIONS R ega r din g F or w a r d L ookin g S t a t ement s This presentatio n contains certain disclosure s that may b e deeme d forward - looking statements withi n the meaning o f the Private Securities Litigatio n Refor m Act o f 199 5 that ar e subject to significant risks an d

  3. Slide 3: Convertible Debt Offering Summary

    C ONVERTIBLE DE B T OFFERING SUMMA R Y ORBIMED INTEN D S T O PURCH A SE $33 MILLION OF THE A GGREG A TE PRINCI P AL AMOUNT $65 MILLION SENIOR UNS E CURED C ONVERTIBLE DE B T OFFERING, 15% O VE R AL L O TMENT OPTION 6% - 8% C OUPON 22.5% - 2 7 .5% C ONVERSION PREMIUM 6 - YEAR TERM, NON - C ALLABLE A

  4. Slide 4: Bacterin International Inc. Company Overview

    B A CTERIN INTERN A TIONAL INC. C ompa n y O v ervi e w LARGE & GR O WING PORTFOLIO OF PROPRIE T A R Y ORTHO - BIO L OGIC PRODUC T S P ARTICI P ANT IN $3B US R E GENE R A TIVE MEDICINE MARKET PRODUC T S P O SITIONED FOR A V ARIETY OF ORTHOPEDIC APPLI C A TIONS, P ARTICULAR L Y SPINE INVE S TING IN C

  5. Slide 5: Revenue Performance

    REVENUE PERFORMANCE Quar t erl y R e v enu e G r o wt h 6TH C ONSECUTIVE Q U ARTER OF YEAR - O VER - YEAR GR O WTH PREVIOUS YEAR Q U ARTER RECENT Q U ARTER % YEAR - O VER - YEAR GR O WTH $8M $9M $10M 1Q14 v s 1Q15 4Q13 v s 4Q14 3Q13 v s 3Q14 2Q13 v s 2Q14 1Q13 v s. 1Q14 4Q12 v s. 4Q13 3% 3% 8% 7% 10

  6. Slide 6: Large Market Opportunity

    La r g e Mar k e t Opportunit y R E GENE R A TIVE MEDICINE & BONE REPL A CEMENT MARKE T S REGENER A TIVE MEDICINE MARKET ($3B) SOFT TI S SUE: BRE A S T RE C ON S TRUCTION ($400M, 13%) BONE REPL A CEMENT ($1 . 7B, 56%) SOFT TI S SUE: W OUND ($683M, 22%) SOFT TI S SUE: SPOR T S ($2 8 7M, 9%) SOURCE: B

  7. Slide 7: Key Product Lines: Growing Portfolio of Proprietary Regenerative Medicine Products

    O st eoSelect Putty (17%) O s t eoSponge (65%) Other (7%) 3Demin (2%) SportsMed (9%) KEY PRODUCT LINES G r o win g P ort f oli o o f P r oprietar y R egene r a ti v e Medicin e P r oduct s • 1 s t allog r aft t o mar k et as a c omp r e s sible DBM sca f old • Pa t en t ed p r o c e s sing t echnolo

  8. Slide 8: A global developer and manufacturer of spine implants and biologics

    A global d e v eloper and manu f actu r er of implants, su r gical in s truments, biologics and biom a t erials f or su r gery of the spine

  9. Slide 9: X-Spine Systems, Inc. Company Overview

    X - SPINE S Y S TEMS, INC. C ompa n y O v ervi e w LARGE & GR O WING PORTFOLIO OF PROPRIE T A R Y SPINE HAR D W ARE PRODUC T S INVE S TING IN CLINI C AL SUPPORT & PRODUCT DEVE L OPMENT E S T ABLISHED C OMMERCIAL ORGANIZ A TION IN A $6.9B US SPINE HAR D W ARE INDU S T R Y DRIVING GR O WTH IN DI S TRI

  10. Slide 10: Operating Performance

    OPE R A TING PERFORMANCE % REVENUE 30% GR O WTH $42.2M EBIT D A 44% GR O WTH 17% $ 7 .3M $4 . 1M 2 0 13 2 0 14 14% $2 9 .6M 10 © 2 0 15 Bac t erin In t ern a tional, Inc. All Rights R eser v ed. C ONFIDENTIAL 2 0 14 2 0 13 EBIT D A MARGIN $42.2M

  11. Slide 11: US Spine Markets

    US SPINE MARKE T S C omme r cia l O r ganiz a tio n i n $6. 9 Billio n U S Spin e Mar k e t Mar k et P articipant Non - participant V CF ($ 0 .5B, 7%) M O TION ($ 0 .4B, 6%) SPINAL S TIMUL A TION ($ 0 .2B, 3%) TRADITIONAL THOR A C O L UMBAR ($1.8B, 26%) TRADITIONAL INTERBO D Y ($1.5B, 22%) MIS ($1.5

  12. Slide 12: Key Product Lines

    KEY PRODUCT LINES G r o win g P ort f oli o o f P r oprietar y R egene r a ti v e Medicin e P r oduct s A minimally i nv asi v e, modular in t erspinous fusion s y s t em with angled spi k es th at all o w s f or adequ a t e L5 - S1 engagement and other v aria tions in p atient an a t o m y . Fricti

  13. Slide 13: Combination of biologic implants and surgical instruments

    A c ombin a tion of biologic implants & su r gical in s truments f or di s tribution in t o the r egene r a ti v e medicine & spine mar k ets

  14. Slide 14: New Corporate Structure

    NEW C ORPO R A TE S TRUCTURE T r ans f orm a ti v e C ombin a tio n o f T w o C omplementar y C ompanie s Bac t erin In t ern a tional Holdings, Inc. Bac t erin In t ern a tional, Inc. Biologics Subsidiary o f X tant Medical X - Spine S y s t ems, Inc. Ha r d w a r e Subsidiary o f X tant Medical 14

  15. Slide 15: Strategic Rationale

    S T R A T E GIC R A TIONALE B r oader C a talog Of P r oducts F or Spine Su r geons • Biologics plus ha r d w a r e is a p ow erful c ombin a tion • A v e r age re v enue per p r o c edu r e e xpec t ed t o inc r ease • Scale of p r oduct o f erings ma k es the c ombined c ompa n y mo r e a tt r act

  16. Slide 16: Combined Revenue Performance

    C OMBINED REVENUE PERFORMANCE P r eliminar y P r o F orm a B A CTERIN X - SPINE C OMBINED $20M $40M $60M $80M L TM - 03/ 31 / 15 2014 2013 2012 16 © 2 0 15 Bac t erin In t ern a tional, Inc. All Rights R eser v ed. C ONFIDENTIAL 18% 3 - YEAR CAGR

  17. Slide 17: Combined Distribution Channel & Sales Assets

    C OMBINED DI S TRIBUTION CHANNEL & S ALES AS SE T S Opportunit y t o Int r odu c e Bac t eri n P r oduct s In t o X - Spin e Citie s an d Vi c e V ers a = 10 SELLING AS SE T S Management has identified only 4 c ommon channels in the e xi s ting net w ork Primary call point f or all channels is Ortho

  18. Slide 18: Cross-Selling Opportunity

    $30M B A CTERIN OPPORTUNITY $56M X - SPINE OPPORTUNITY 3000 X - Spine P r o c edu r es $2,500 Bac t erin A SP BONE G R AF T S USED IN ALL PROCEDURES 2000 Bac t erin Spine P r o c edu r es $ 7 , 000 X - Spine A SP HAR D W ARE USED IN ALL PROCEDURES P O TENTIAL CR O S S - SELLING OPPORTUNITIES Annuali

  19. Slide 19: Financial Overview

    FINANCIAL O VE R VIEW 19 © 2 0 15 Bac t erin In t ern a tional, Inc. All Rights R eser v ed. C ONFIDENTIAL

  20. Slide 20: Key Financial Drivers

    KEY FINANCIAL DRIVERS C ompa n y O v ervi e w S TRONG REVENUE GR O WTH IN B A SE BUSINE S S, A UGMENTED B Y X - SPINE ENHANCED OPE R A TING LEVE R A GE •G r o s s ma r gin e xpansion • L e v e r aging c orpo r a t e e xpenses A C CELE R A TES P A TH T O PROFI T ABILITY GENE R A TING P OSITIVE C A SH

  21. Slide 21: Combined Operating Performance

    C OMBINED OPE R A TING PERFORMANCE P r eliminar y P r o F orm a Summar y P& L (000’ s ) • Y ea r En d 2 0 1 4 & Q 1 2 0 1 5 (000 ’ s ) R e v enue G r o s s P r ofit G r o s s Ma r gin P r ofit ( L o s s ) f r om Ope r a tions EBIT D A EBIT D A Ma r gin $ 7 7 ,6 5 9 $21,8 0 7 $5 0 ,812 $14,2 3 7 65%

  22. Slide 22: Transaction Summary

    T R AN S A CTION SUMMA R Y A C QUISITION Bac t erin is a c quiring X - spine S y s t ems, Inc., a global d e v eloper and manu f actu r er of implants and su r gical in s truments f or su r gery of the spin e . FINANCIAL IM P A CT Immedi a t ely a c c r eti v e t o EBIT D A, when e x cluding one - t

  23. Slide 23: Debt Overview

    DE B T O VE R VIEW P r o F orm a De b t Summar y SENIOR UNSECURED C ONVERTIBLE DE B T $65M $42M SENIOR SECURED DE B T FROM ORBIMED •15% C oupon •5 y ear t erm; 3 y ear no - call • R olling ov er e xi s ting $ 2 4M debt f r om Orbimed in addition t o the n e w $18M • 7 .5% e xit f ee 23 © 2 0 15 Bac

  24. Slide 24: Sources & Uses of Funds

    SOURCES & USES OF FUN D S N O TE: T otal senior secu r ed debt a t closing will be $42 million, which includes the r oll ov er of the cur r ent out s tanding $ 2 4MM t erm loan due Orbimed. GR O S S PROCEE D S FROM SENIOR SECURED TERM L O AN GR O S S PROCEE D S FROM SENIOR UNSECURED C ONVE RTIBLE N

  25. Slide 25: Summary

    SUMMA R Y Significant c r o s s - selling opportunities; di v ersifies p r oduct port f olio; e xpands cu s t omer base; inc r eases r e v enue per p r o c edu r e Imp r o v ed t op - line per f orman c e A cc ele r a t es p a th t o p r o fitability A c c r eti v e c ombin a tion and EBIT D A e xpa

  26. Slide 26: Thank You

    THANK Y OU OT C QX: BONE 600 Cruiser ln Belg r ad e , M T , U S A 5 9 7 14 1.406.388 . 0480 in f o@bac t erin . c om I n v e s t or R el a tions C OCKRELL GROUP 1. 8 7 7 .8 8 9 . 1 9 7 2 i n v e s t or r el a tions@the c ock r ellg r ou p . c om

  27. Slide 27: Bacterin Reconciliation of EBITDA

    B A CTERIN R E C ONCILI A TION OF EBIT D A F o r th e perio d endin g De c embe r 31 s t , 2 0 1 4 & Ma r c h 31 s t , 2 0 1 5 r especti v el y Appendix A © 2 0 15 Bac t erin In t ern a tional, Inc. All Rights R eser v ed. ( 000 ’ s ) L o s s F r om Ope r a tions Be f o r e Impairment 2 0 14 Q1 2 0

  28. Slide 28: X-Spine Reconciliation of EBITDA

    X - SPINE R E C ONCILI A TION OF EBIT D A F o r th e perio d endin g De c embe r 31 s t , 2 0 1 3 & 2 0 14 , Ma r c h 31 s t 2 0 1 5 r especti v el y Appendix B © 2 0 15 Bac t erin In t ern a tional, Inc. All Rights R eser v ed. ( 000 ’ s ) Ope r a ting in c ome 2 0 13 2 0 14 Q1 2 0 15 $ 2,2 0 7 $ 4

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