Enovis Corporation · NYSE:ENOV

Enovis — Q4 2023 Earnings Presentation

24 slides from Enovis's earnings presentation, Aug 3, 2023

  1. Slide 1: Fourth Quarter 2023 Results

    Fourth Quarter 2023 Results February 22, 2024

  2. 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

  3. Slide 3: 2023 Recap

    2023 Recap Strategic Pillars Rapidly Expand High Shape P&R for Expand Margins With Accelerate Growth Growth & Margin sustained MSD EGX & Scale Through M&A Recon Platform growth Double-digit growth Outpaced peers with 5% Adjusted GM expanded Recent acquisitions across all channels and organic growth

  4. Slide 4: Q4 2023 Highlights

    Q4 2023 Highlights • Organic growth of 8% Y/Y • 11% organic growth in Recon • 6% organic growth in P&R • Expanded Adjusted Gross Margin 150 basis points • Adjusted gross margin expansion from productivity, mix and acquisition scale • Continued strategic M&A execution • Announced plans to acquire Lim

  5. Slide 5: Q4 Reconstructive Segment Sales Performance

    Q4 Reconstructive Segment Sales Performance Reconstructive Q4 Sales • US organic growth of 11% • Hip & Knee organic growth of 11% (vs +14% in 4Q22) Growth: +18% Y/Y, Organic sales +11% • Extremities organic growth of 11% (vs +13% in 4Q22) • International organic growth of +11% • Underlying market st

  6. Slide 6: Q4 Prevention & Recovery Segment Sales Performance

    Q4 Prevention & Recovery Segment Sales Performance P&R Q4 Sales • Organic growth of 6% Growth: +8% Y/Y, Organic sales +6% • Global Bracing growth of 6% (vs +2% in Q422) • Stable market environment • Adjusted gross margin up 240 bps Y/Y • Supply Chain stabilized, EGX productivity Bracing momentum Q4

  7. Slide 7: Significant Progress Since the Spin

    Significant Progress Since the Spin Revenue aEBITDA aEBITDA Margin +9% +14% CAGR CAGR 1,707 269 1,563 236 +140 bps 1,426 206 15.8 14.4 15.1 2021 2022 2023 2021 2022 2023 2021 2022 2023 Organic YoY YoY bps 6% 8% 15% 14% +70 +70 Growth (cc) Growth improvement Executing on Strategic Priorities and Buil

  8. Slide 8: New Product Highlights for 2024

    New Product Highlights for 2024 EMPOWR Revision Arvis 2.0 Evolve 34 & Pecaplasty Full TKA Revision System Augmented Reality CAS Comprehensive Portfolio of Including Lima’s TT Cones Solutions for Bunion Repair ROAM OA Intelect 2 Single Upright OA Brace 2nd Gen Electrotherapy Innovation Focus Better O

  9. Slide 9: Lima Milestones and Key Objectives

    Lima Milestones and Key Objectives Deal Recap 2023 Proforma w/Lima Progress • Acquired LimaCorporate, for €800m; • Senior leadership in place on day 1 Closed Jan 3rd 2024 with a defined strategy for years 1-3 ~$2B • Creates a ~$1B reconstructive • Aggressive, thoughtful, integration $1.7B business,

  10. Slide 10: P&L Performance

    P&L Performance millions Q4 2022 Q4 2023 millions FY 2022 FY 2023 Net Sales $409 $455 Net Sales $1,563 $1,707 Adj. Gross Profit $233 $267 Adj. Gross Profit $884 $994 Margin 57.1% 58.6% Margin 56.5% 58.2% Adj. EBITDA $75 $82 Adj. EBITDA $236 $269 Margin 18.3% 18.0% Margin 15.1% 15.8% Adj. EPS $0.72 $

  11. Slide 11: Met/Exceeded our upgraded FY Guidance

    Met/Exceeded our upgraded FY Guidance February May August November Actual Organic Sales Growth 5-6% (cc) 6-7% (cc) 7-7.5% (cc) 7.4-7.6% (cc) 7.9% (cc) aEBITDA $255-$265mm $259-$267mm $262-$270mm $264-$270mm $269mm Depreciation ~$85mm ~$85mm ~$85mm ~$85mm $84mm Interest Expense ~$23mm ~$23mm ~$23mm ~

  12. Slide 12: Full Year 2023 Progression

    Full Year 2023 Progression Organic growth vs. 2022 (%, constant currency) Recon P&R • Double-digit Recon 19.2 performance, 1H stronger 16.6 14.3 vs easy comp in prior year 9.4 7.9 8.2 7.9 10.3 11.4 6.4 6.1 4.1 3.6 4.1 4.6 • Consistent P&R results, Q4 benefiting from softer prior year comp Q1 Q2 Q3 Q

  13. Slide 13: Full Year 2024 Outlook

    Full Year 2024 Outlook 2023 Results 2024 Outlook Comments • Global markets grow in-line with historical Revenue $1.71B $2.05-2.15B averages • ~7% core growth aEBITDA $269mm $365-$380mm • DD recon growth continues • P&R stable in L/MSD Depreciation $84mm ~$115-$120mm • Lima guidance intact Interest E

  14. Slide 14: Summary

    Summary • Strong Q4 and Full Year performance, sets up nicely for 2024 • Delivering on strategic goals of HSD organic growth and >50 bps of annual margin expansion • Closed Lima acquisition on January 3, 2024…exciting momentum building and key integration milestones on track • 2024 Guidance of >$2B

  15. Slide 15: Appendix

    Appendix enovis. Creating Better Together” 6

  16. Slide 16: Q4 and 2023 Sales Bridge

    Q4 and 2023 Sales Bridge © 2024 Enovis Corporation

  17. Slide 17: Adjusted EPS Reconciliation

    Adjusted EPS Reconciliation © 2024 Enovis Corporation

  18. Slide 18: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation © 2024 Enovis Corporation

  19. Slide 19: Adjusted Gross Margin Reconciliation

    Adjusted Gross Margin Reconciliation © 2024 Enovis Corporation

  20. Slide 20: Q4'23 GAAP to Adjusted Non-GAAP Financial Measures

    Q4’23 GAAP to Adjusted Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures Dollars in millions (Unaudited) Enovis Acquisition- Restructuring Continuing Related Non-Cash & Other Other Income Tax Operations Adjustments a Adjustments b Adjustments c Adjustmentd Adjusted Ne

  21. Slide 21: Q4'22 GAAP to Adjusted Non-GAAP Financial Measures

    Q4’22 GAAP to Adjusted Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures Dollars in millions (Unaudited) Enovis Acquisition- Restructuring Debt & Continuing Related Non-Cash & Other Other Investment Income Tax Operations Adjustments a Adjustments b Adjustments c Adjus

  22. Slide 22: Full Year 2023 GAAP to Adj. Non-GAAP Financial Measures

    Full Year 2023 GAAP to Adj. Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) Dollars in millions Enovis Acquisition- Restructuring Continuing Related Non-Cash & Other Other Income Tax Operations Adjustments a Adjustments b Adjustments c Adjustmentd Adjust

  23. Slide 23: Full Year 2022 GAAP to Adj. Non-GAAP Financial Measures

    Full Year 2022 GAAP to Adj. Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures Dollars in millions (Unaudited) Enovis Acquisition- Restructuring Debt & Continuing Related Non-Cash & Other Other Investment Income Tax Operations Adjustments a Adjustments b Adjustments c

  24. Slide 24: enovis. Creating Better Together

    enovis. Creating Better Together”

Enovis — Q4 2023 Earnings Presentation on 6ix