Bioventus Inc. · NASDAQ:BVS
Bioventus — Investor Presentation (September 2022)
26 slides from Bioventus's investor presentation, September 2022
Slide 1: Innovations for Active Healing
INNOVATIONS FOR ACTIVE HEALING Bioventus Company Overview Ken Reali September 2022 Chief Executive Officer
Slide 2: Forward-Looking Statements
Innovations For Active Healing Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this presentati
Slide 3: Bioventus: Innovations for Active Healing
Innovations For Active Healing BIOVENTUS: INNOVATIONS FOR ACTIVE HEALING VISION Returning patients to active lives MISSION We innovate and deliver breakthrough medical devices to improve patients’ quality of life Delivering diversified technology- and market-leading therapies across the spectrum of
Slide 4: Bioventus Today
Innovations For Active Healing BIOVENTUS TODAY MARKET LEADERSHIP INNOVATION & DEVELOPMENT VALUE CREATION $524M1 LTM Global Proforma Revenue 40%3 of +9% CAGR² Surgical 150 Strong Revenue Solutions 120 Revenue from Pain 90 Products Momentum Treatments 60 Launched 2016-2021 30 - since 2018 Restorative
Slide 5: Our Transformational Journey
Innovations For Active Healing OUR TRANSFORMATIONAL JOURNEY 2012-2015 2016-2020 2021 and Beyond Establishing Strong Diversifying with Positioning Portfolio Foundation Innovation for Long Term Growth • Entered US licensing • Completed IPO • Formed Standalone Company agreement for Gelsyn • Acquired Bi
Slide 6: Bioventus: A Compelling Investment Opportunity
Innovations For Active Healing BIOVENTUS: A COMPELLING INVESTMENT OPPORTUNITY Delivering diversified technology- and market-leading therapies across the spectrum of orthopedic specialties to generate enhanced scale and profitability Category leader with Innovative, new Demonstrated M&A differentiate
Slide 7: Strategic Building Blocks for Growth as Category Leader
Innovations For Active Healing STRATEGIC BUILDING BLOCKS FOR GROWTH AS CATEGORY LEADER Positioned to Benefit from Favorable Demographics and Tailwinds Across Call Points Pain Treatments Restorative Therapies Surgical Solutions General Spine Neurosurgeon Sports Medicine Foot & Ankle Orthopedic Foot &
Slide 8: Strong Track Record of Sustained Growth Provides Solid Foundation
Innovations For Active Healing STRONG TRACK RECORD OF SUSTAINED GROWTH PROVIDES SOLID FOUNDATION 1 . +9% 5-Year Total Revenue CAGR1 $555M ~7% 5-Year Organic Revenue CAGR2 19% Organic Growth in 2021 $340M $319M $275M 2016 2018 2020 2022 3 1. Total revenue growing in 2016 from $275 million to $439 mil
Slide 9: Expanding Addressable Market and Accelerating Growth with Recent M&A
Innovations For Active Healing EXPANDING ADDRESSABLE MARKET AND ACCELERATING GROWTH WITH RECENT M&A Surgical Solutions Pain Treatments Surgical Solutions Pain Treatments ~4x Increase in TAM $4.5B Bioness, Misonix and $17.0B 2016 TAM 2022 TAM CartiHeal Acquisitions Restorative Therapies Restorative T
Slide 10: Pain Treatments
Innovations For Active Healing PAIN TREATMENTS Driving Above Market Double-Digit Growth with Differentiation and Net Share Gains HA Global Sales Growth 2016 - 2021 Growth Strategy Clinically Differentiated1: Durolane 1 Highest Molecular Weight Successful Go-to-Market Private Payer 2 Strategy & Mitig
Slide 11: Surgical Solutions
Innovations For Active Healing SURGICAL SOLUTIONS Driving Double-Digit Growth from New Product Introductions and Channel Expansion Global Sales Growth 2016 - 2021 Growth Strategy Recent Innovations: OsteoAmp 1 Flowable/BoneScalpel Access 2 G Hardware Agnostic Channel Access 1 2016 2017 2018 2019 202
Slide 12: Restorative Therapies
Innovations For Active Healing RESTORATIVE THERAPIES Diversifying and Accelerating Growth with M&A Global Advanced Rehabilitation Sales Growth 2016 - 2021 Growth Strategy Leverage Exogen Sales Force and Call Point to 1 Bring Wound Products to Office Channel Accelerate Growth in Advanced Rehabilitati
Slide 13: Expanding International Presence with Disciplined Approach
Innovations For Active Healing EXPANDING INTERNATIONAL PRESCENCE WITH DISCIPLINED APPROACH International Operations Prior to Geographic International Market 2021 Expansion Development • 2 product offerings • Increased product Established 5 international (Exogen and Durolane) offerings to 7 from 2 in
Slide 14: Enhancing Growth with Innovation
Innovations For Active Healing ENHANCING GROWTH WITH INNOVATION Increased Sales Mix from R&D and Product Development New Product1 Revenue as % of Sales2 Market Development Capabilities 45.0% 40.0% Leverage existing sales relationships and 35.0% call point overlap to go deeper with 30.0% customers 25
Slide 15: Strengthening Portfolio with Growth-Accretive M&A
Innovations For Active Healing STRENGTHENING PORTFOLIO WITH GROWTH – ACCRETIVE M&A Integrations on Schedule for Completion and Synergy Realization + + Acquisition completed in July Acquired: March 2021 Acquired: October 2021 2022 Integration completed in Q1 Integration expected to be Initial launch
Slide 16: Accessing Breakthrough Technology with CartiHeal Acquisition
ACCESSING BREAKTHROUGH TECHNOLOGY WITH CARTIHEAL ACQUISTION CartiHeal Overview Breakthrough Technology Demonstrates Superiority • Only “off-the-shelf” implant designed to address osteochondral defects in the knee with and without OA • Unlocks applications for the millions of patients in the global k
Slide 17: Unlocking Significant Growth Potential with CartiHeal
Innovations For Active Healing UNLOCKING SIGNIFICANT GROWTH POTENTIAL WITH CARTIHEAL Measured Market Development to Align Private Payers on Reimbursement $2.6B Addressable Market Pathway for Establishing Reimbursement Initially covered as First 100 cases a Category III Code completed in (effective J
Slide 18: Successfully Renegotiated CartiHeal Purchase Agreement
SUCCCESSFULLY RENEGOTIATED CARTIHEAL PURCHASE AGREEMENT Revision Includes Milestones Tied to Reimbursement Strategic Rationale Transaction Overview • $315 million purchase price due after PMA approval, closed Addresses significant unmet need in cartilage defects acquisition July 2022 1 and knee oste
Slide 19: Delivering Value Creation for Shareholders
Innovations For Active Healing DELIVERING VALUE CREATION FOR SHAREHOLDERS CONSISTENT REVENUE and EBITDA GROWTH Delivering double-digit organic growth MARGIN EXPANSION Expanding operating margins through synergies, cost savings and revenue growth REPEATABLE FREE CASH FLOW Producing consistent free ca
Slide 20: Meaningfully Expanding Margins with Multiple Levers
Innovations For Active Healing MEANINGFULLY EXPANDING MARGINS WITH MULTIPLE LEVERS STRONG MARGIN PROFILE Adjusted Gross Margins in excess of 75% over the last 3 years OPERATION CONSOLIDATION Memphis facilities targeting doubling current output Manufacturing efficiencies expected to drive gross margi
Slide 21: Delivering Stable Cash Flow with Diversified Portfolio
Innovations For Active Healing DELIVERING STABLE CASH FLOW WITH DIVERSIFIED PORTFOLIO Portfolio Diversification Cash Flow Stability from Legacy Portfolio Only 25% of Selling price stability, along with Revenue from fixed pricing of supply contracts for Elective Surgical HA and BGS provide gross marg
Slide 22: Committed to Deleveraging the Balance Sheet
Innovations For Active Healing COMMITTED TO DELEVERAGING THE BALANCE SHEET Pause M&A as EBITDA Expansion and Free Cash Flow Generation Reduce Leverage Projected Deleveraging Near Term Financial Policy Focused on Deleveraging Leverage from Term Loan • Pause M&A to return net debt leverage from Term L
Slide 23: Environmental, Social and Governance Highlights
Innovations For Active Healing ENVIRONMENTAL, SOCIAL AND GOVERNANCE HIGHLIGHTS Culture Focused on Results, Caring and Learning • Recognized as one of 10 companies by Triangle Business Journal as a 2022 “Leader in Diversity” • Launched six Employee Resource Groups • 20% of all employees participate i
Slide 24: Bioventus: A Compelling Investment Opportunity
Innovations For Active Healing BIOVENTUS: A COMPELLING INVESTMENT OPPORTUNITY Sustainable Double-Digit Revenue and Earnings Growth Diversified Portfolio of Current and Future Growth Drivers Accelerating Operating Margins from Growth and Synergies Operational Execution and Disciplined Financial Manag
Slide 25: Appendix
Appendix Confidential 9/26/2022
Slide 26: Sustaining Double-Digit Growth
Innovations For Active Healing SUSTAINING DOUBLE-DIGIT GROWTH Maintain Double-Digit Growth Beyond 2022 as Drivers Transition Over Time Near-Term 2022 - 2025 Mid-Term 2025 – 2030 HYALURONIC ACID $2.0B TAM While current growth drivers largely BONE GRAFT SUBSTITUTES $2.7B TAM focused on our legacy port