Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q2 2023 Earnings Presentation
22 slides from Orthofix Medical's earnings presentation, Aug 10, 2023
Slide 1: Corporate Investor Deck
Corporate Investor Deck August 2023 ©2023 Orthofix Medical Inc. All rights reserved | 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, relating to our business and financial outlook, which are based on our cur
Slide 3: Investment Highlights
a Extensive Portfolio Improved Clinical Large Addressable Investment Highlights Solutions with Outcomes & Markets with High Complementary Economic Value Growth Opportunities Technologies Building a Leading Global Spine & Orthopedics Company Expanded Distribution $175M Credit Facility Visionary Leade
Slide 4: Executive Leadership Team
Executive Leadership Team Experienced leadership with 250+ years in spine/orthopedics Keith C. Valentine Suzanne Armstrong John Bostjancic Roberto Donadello Kim Elting Ehab Esmail President & Chief Human Resources Officer Chief Financial Officer Senior Vice President President Senior Vice President,
Slide 5: Complementary High Growth Portfolio
Complementary High Growth Portfolio $7B of Focused High-Growth Market Segments* | 6.1% CAGR Spinal Implants Orthopedics Motion Preservation Limb Reconstruction Spinal Fixation Deformity Correction Full Continuum of Care Biologics Bone Growth Therapies Cellular Allograft Bone Growth Stimulation Demin
Slide 6: Orthopedics
Orthopedics Specialized portfolio of limb reconstruction and deformity correction products that address the most challenging orthopedic conditions Complex Foot & Ankle Complex Fracture Adult & Pediatric Limb Digital Healthcare Reconstruction Management Reconstruction TrueLok™ AHN TrueLok™ EVO XCalib
Slide 7: Spinal Implants
Spinal Implants Comprehensive best-in-class spinal implants offering driving rapid market adoption Cervical Thoracolumbar Fixation Interbodies M6-C™ NorthStar® Mariner® WaveForm™ Forza™ TI Modular Pedicle Screw System 3D Interbody Ti Spacer System Artificial Cervical Disc Posterior Cervical Fixation
Slide 8: Biologics
Biologics Full spectrum of biologic solutions to enhance the fusion process and promote bone repair and growth Cellular Allograft Procedural Solutions Demineralized Bone Fiber Demineralized Bone Putty Torrent® & Torrent C OsteoBallast® OsteoBallast NorthStar™ Trinity Elite™ Accell Evo3® & Evo3® c MT
Slide 9: Bone Growth Therapies
Bone Growth Therapies Safe and effective treatment and non-surgical alternative to overcome bone healing challenges We are proud to be the # 1 Prescribed bone growth first to offer a free PEMF technology approved Prescribed devices stimulator recycling program so Since 1986 patients can properly dis
Slide 10: Enabling Technologies
FLASH ™ Navigation with 7D Technology Enabling Machine-vision Navigation System Technologies Servicing the full continuum of surgical care ©2023 Orthofix Medical Inc. All rights reserved | 10
Slide 11: $730M Diversified & Complementary Business with Broad Commercial Reach
Diversified & 15% Complementary 27% Business with Broad Commercial Reach $730M TTM Revenue ~81% U.S. | ~19% OUS 58% Products distributed Bone Growth Therapies in 68 countries Spinal Implants, Biologics, and Enabling Techologies Orthopedics ©2023 Orthofix Medical Inc. All rights reserved | 11
Slide 12: Commercial Strategy Framework
Commercial Strategy Framework Geographic Footprint Clinical Relevance Double digit growth in global Proven track record of commercial reach procedural excellence, backed by compelling clinical evidence, spanning multiple markets Focused Distributors Training and Education COMMERCIAL Expanded market
Slide 13: Key Growth Drivers
Key Growth Drivers Spinal Fixation Spinal Implants BGT Fracture Distributor Partners Industry leading product & Biologics and procedure launches per year Continue share taking at >5x DD growth driven by the Onboard additional & continued penetration into market growth, from 45+ product recent AccelS
Slide 14: Q2 2023 Highlights
$187M $53M Q2 2023 Revenue Q2 2023 BGT Revenue 58% Growth YoY at Constant Currency(1) 10% Growth YoY 7% Proforma Growth YoY at Constant Currency(2) Orthofix $105M $29M Q2 2023 Global Spinal Implants, Biologics and Q2 2023 Global Orthopedics Revenue Enabling Technologies Revenue 5% Growth YoY at Cons
Slide 15: 2023 Full Year Guidance
2023 Full Year Guidance $752 – 758M Revenue $42 – 46M Adjusted EBITDA Revenue ranges above represent 7% to 8% proforma growth rates over prior year Guidance information is as of August 8, 2023, based on guidance provided by Orthofix leadership on that date. Inclusion of this information in this pres
Slide 16: Merger Highlights
Merger Highlights Meaningful Revenue Complementary Broader & Cost Synergies Portfolios Commercial Reach ✓ Est. Revenue Synergies: >$25M ✓ #1 Prescribed bone ✓ Accelerated adoption of growth stimulator differentiated technologies ✓ Est. Cost Synergies: ~$50M* portfolio in the U.S. ✓ Sustainable growt
Slide 17: Investment Highlights
a Extensive Portfolio Improved Clinical Large Addressable Investment Highlights Solutions with Outcomes & Markets with High Complementary Economic Value Growth Opportunities Technologies Building a Leading Global Spine & Orthopedics Company Expanded Distribution $175M Credit Facility Visionary Leade
Slide 18: Thank You
Click to edit Master title style THANK YOU ©2023 Orthofix Medical Inc. All rights reserved | 18
Slide 19: Appendix A
APPENDIX A ©2023 Orthofix Medical Inc. All rights reserved | 19
Slide 20: Proforma Non-GAAP Financial Measures
Proforma Non-GAAP Financial Measures Adjusted EBITDA Q2 22 (Proforma) NewCo On the Company's Q2 2023 earnings call held on August 8, 2023, Orthofix management presented Proforma Adjusted ($ in millions) OFIX SPNE NewCo Q2 23 Q2 22 Change EBITDA and Adjusted Proforma Gross Margin, both of which are L
Slide 21: Historical 2022 Quarterly Proforma Adjusted EBITDA
Historical 2022 Quarterly Proforma Adjusted EBITDA Proforma Historical Adjusted EBITDA Q1 22 Q2 22 Q3 22 Q4 22 FY 2022 ($ in millions) OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo Loss before income taxes $ (4.389) $ (16.832) $ (21.221) $ 3.042 $ (15.094) $ (12.052
Slide 22: Historical 2022 Quarterly Proforma Adjusted Gross Margin
Historical 2022 Quarterly Proforma Adjusted Gross Margin Proforma Historical Adjusted Gross Margin Q1 22 Q2 22 Q3 22 Q4 22 FY 2022 ($ in millions) OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo OFIX SPNE NewCo Total revenue, net $ 106.418 $ 51.263 $ 157.681 $ 118.070 $ 56.942 $ 175.