Enovis Corporation · NYSE:ENOV
Enovis — Q3 2023 Earnings Presentation
21 slides from Enovis's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results November 7, 2023
Slide 2: Forward-looking Statements Non-GAAP Financial Information
Forward-looking Statements Non-GAAP Financial Information This presentation includes forward-looking statements, including forward-looking statements Enovis has provided in this presentation financial information that has not been prepared in accordance with within the meaning of the U.S. Private Se
Slide 3: Q3 2023 Highlights
Q3 2023 Highlights • Organic growth of 6% • 10% organic growth in Recon • 4% organic growth in P&R • Expanded adjusted EBITDA margins 80 basis points • Gross margin expansion from productivity, mix and acquisition scale • Continued strategic M&A execution • Recent acquisitions moving up the scale cu
Slide 4: Q3 Reconstructive Segment Sales Performance
Q3 Reconstructive Segment Sales Performance Reconstructive Q3 Sales • US organic growth of 10% • Hip & Knee organic growth of 18% Growth: +16% Y/Y, Organic sales +10% • Extremities organic growth of 7% (vs +17% growth in 3Q22) • International organic growth +12% cc • Underlying market strength has p
Slide 5: Extending Enovis' Leadership Position in Global Reconstructive Market with Lima
Extending Enovis’ Leadership Position in Attractive Global Reconstructive Market with Lima • Definitive agreement to acquire LimaCorporate, a European orthopedics leader with robust product offerings and capabilities for €800m; transaction expected to close in early 2024 • Creates a ~$1B global reco
Slide 6: Q3 Prevention & Recovery Segment Sales Performance
Q3 Prevention & Recovery Segment Sales Performance P&R Q3 Sales • Organic growth of 4% Growth: Organic sales +4%; total reported sales +5% • Global Bracing SPD growth of 5% • Stable market environment • Gross margins up 150 bps • Supply Chain stabilized, EGX productivity Bracing momentum Q3 23 • Sus
Slide 7: Delivering on Strategic Goals
Delivering on Strategic Goals Organic Revenue Growth aEBITDA Expansion Gross Margin Recon Improvement Double-Digit High-Single >50 bps per Digit year Operating Leverage P&R +8% +100 bps Low/Mid YTD YTD Single-Digit Growth Investments • Recon backlog tailwinds continue • Innovation momentum and new p
Slide 8: P&L Performance
P&L Performance FY 202 • +9% reported sales growth, +6% organic millions Q3 2022 Q3 2023 $1,563 • +140 bps of adjusted gross profit margin Net Sales $384 $418 improvement, driven by mix and progress $884 on price vs. cost Adj. Gross Profit $218 $243 56.5% Margin 56.8% 58.2% • Increased investments i
Slide 9: Full Year 2023 Outlook
Full Year 2023 Outlook February May August November Comments Organic Sales Growth 5-6% (cc) 6-7% (cc) 7-7.5% (cc) 7.4-7.6% (cc) • Increased growth and profit outlook aEBITDA $255-$265mm $259-$267mm $262-$270mm $264-$270mm • Sales outlook including recent acquisitions: Depreciation ~$85mm ~$85mm ~$85
Slide 10: Balance Sheet Update: Acquisition Financing Secured
Balance Sheet Update: Acquisition Financing Secured Debt Outlook Benefits ▪ $900mm Revolving Credit Facility ▪ Favorable interest rates on total debt • ~$500mm anticipated post Lima close • 5.25-5.75% based on current outlook • SOFR + 1.125% to 1.75% based on ▪ Positive earnings accretion leverage •
Slide 11: Summary
Summary • Strong Q3 performance, increased FY guidance • High-single-digit growth YTD, further momentum for creating a HSD growth engine fueled by innovation • Strong margin improvement YTD, clear path for sustainable >50bps annual adjusted EBITDA improvement through mix, productivity and scale • Li
Slide 12: Appendix
Appendix enovis. Creating Better Together” 12
Slide 13: Q3 and YTD Sales Bridge
Q3 and YTD Sales Bridge © 2023 Enovis Corporation
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation © 2023 Enovis Corporation
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation © 2023 Enovis Corporation
Slide 16: Adjusted Gross Margin Reconciliation
Adjusted Gross Margin Reconciliation © 2023 Enovis Corporation
Slide 17: Q3'23 GAAP to Adjusted Non-GAAP Financial Measures
Q3’23 GAAP to Adjusted Non-GAAP Financial Measures © 2023 Enovis Corporation
Slide 18: Q3'22 GAAP to Adjusted Non-GAAP Financial Measures
Q3’22 GAAP to Adjusted Non-GAAP Financial Measures © 2023 Enovis Corporation
Slide 19: YTD 2023 GAAP to Adjusted Non-GAAP Financial Measures
YTD 2023 GAAP to Adjusted Non-GAAP Financial Measures © 2023 Enovis Corporation
Slide 20: YTD 2022 GAAP to Adjusted Non-GAAP Financial Measures
YTD 2022 GAAP to Adjusted Non-GAAP Financial Measures © 2023 Enovis Corporation
Slide 21: (de) M
(de) M Nts {( \\\\ iif / 2023