Enovis Corporation · NYSE:ENOV
Enovis — 2024 JP Morgan Healthcare Conference
23 slides from Enovis's conference presentation, Jan 8, 2024
Slide 1: 2024 JP Morgan Healthcare Conference
Matt Trerotola Chairman, Chief Executive Officer 2024 JP Morgan Healthcare Conference Ben Berry Chief Financial Officer Kyle Rose Vice President, Investor Relations Exhibit 99.1
Slide 2: Non-GAAP financial information notice
Enovis has provided in this presentation financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from con
Slide 3: Two Attractive Business Segments
Two Attractive Business Segments P&R 64% Strong portfolio, outgrowing markets Sales Mix by Geography & Segment Fast growing reconstructive (Recon) platform DD growth engine in US, leading in Shoulder and rapid adoption in Knee & Hip Globalized footprint and offering through acquisition of Mathys Exp
Slide 4: Enovis Strategy and Goals
Enovis Strategy and Goals Strategic Pillars Strategic Objectives Acquisitions $2B+ Sales by 2024 EGX Innovation Talent HSD Organic Growth >+50bps aEBITDA margin/year Goals Shape and Improve P&R Aggressively Expand Recon Scale our company
Slide 5: Powerful momentum building as we enter 2024
Powerful momentum building as we enter 2024 1: Consensus Sales and aEBITDA estimate for FY2023 per FactSet Lima the “next” catalyst for growth & margins Deal closed Jan 3rd Aggressive, thoughtful, integration plan in place Deal metrics on track for 2024 Sales: $290-300mm aEBITDA: $70-75mm, aEPS: acc
Slide 6: Lima Acquisition Expands Recon Scale & Margins
Lima Acquisition Expands Recon Scale & Margins 1 $B ~$2B +~120bps 1 REVENUE GEOGRAPHIC MIX ADJUSTED EBITDA MARGIN Creates >$1B high-growth global Recon player and accelerates trajectory of margin expansion 2023 Enovis 2023 Combined1 1 Latest ENOV guidance plus estimated LimaCorporate 2023 full year
Slide 7: Addressing a Large and Attractive Market
Prevention & Rehabilitation (P&R) Est. Market Growth Rate 3-4% 7-8% 2-3% ~4% 7 6 10 5 Knee Extremities Trauma Sports Medicine Spine Biologics $48bn $5bn 9 8 3 Market Growth Trends Provide Runway 3-4% 6-7% 3-4% Well-positioned with strong long-term growth drivers Aging but active population Transitio
Slide 8: Scaled and Agile in Fragmented Industry
Scaled and Agile in Fragmented Industry Enovis is positioned for share gain, scale, and leverage Competitive Ortho Landscape Large, diversified majors Scaled, differentiated players Focused innovators Big enough for healthy, sustainable margins but additional room to scale Small enough to operate li
Slide 9: Uniquely Positioned Across Full Ortho Care Continuum
Uniquely Positioned Across Full Ortho Care Continuum PREVENTION Off-loading braces Back braces Cold therapy SURGICAL Shoulders Knees Hips Foot/Ankle RECOVERY Post-op braces Walker boots Cold therapy PERFORMANCE Athletic braces Muscle stimulation REHAB Electrotherapy Laser therapy Heat/cold therapy T
Slide 10: Lima M&A Creates ~$1B Recon Leader
Lima M&A Creates ~$1B Recon Leader, Attractive Mix & Innovation Combined Revenue & Geographic Mix Leading in Shoulder, winning across Recon with measurably better patient outcomes Drive DD organic growth from winning innovation and strong channel Continue to lead in Shoulder and rapidly gain share i
Slide 11: Rapidly Expanding High Growth & Margin Recon Platform
Rapidly Expanding High Growth & Margin Recon Platform Leverage Demonstrated Outcomes AltiVate Reverse® Shoulder: Breakthrough in range of motion Expansion in product bag penetration: ~65% to ~75% Leverage enabling technologies: e.g. ARVIS®, ADAPTABLE® Launch innovative technologies: e.g. DynaNail®,
Slide 12: Recon Proven Formula for DD Growth and Share Gain
Recon Proven Formula for DD Growth and Share Gain % of Enovis Recon1 Market Growth2 Projected Growth vs. Market Growth Projection US Shoulder ~30% 7-8% ~2x 12 – 15% US Hip / Knee ~30% 3-4% 3-5x 10 – 15% Foot / Ankle ~10% 6-7% 2-3x 12 – 18% Int’l Recon ~30% 4-5% 2-3x 7 – 10% 5-6% WAMGR 2-3X Market Gr
Slide 13: Fast-Growing Recon Business with Proven Playbook
Fast-Growing Recon Business with Proven Playbook 2X market growth led by Altivate Reverse and accelerating Altivate Edge anatomic stemless Proven MatchPoint® pre-operative plan and PSI system in 35%+ of procedures Sustained strong DD growth across segments 3-5X market growth powered by Empowr3D® Kne
Slide 14: Computer Assisted Surgery (CAS) Strategy
Computer Assisted Surgery (CAS) Strategy Enovis enabling technologies will provide a flexible and scalable approach Match Point™ System used in ~33% of Enovis shoulder cases Anatomically distinct Suite of offerings uniquely tooled to each anatomy Low capital costs Time and Space Efficient Micro foot
Slide 15: Successful M&A Track Record in Recon
Successful M&A Track Record in Recon 2022 ‘20-2021 2023 2024 2020-2021: Globalized Recon with Mathys, established Foot & Ankle business 2022: Advanced enabling technology capabilities 2023: Scaled Foot & Ankle to $100m run rate 2024: Scaling Global Recon STAR® ANKLE Accelerating Recon with attractiv
Slide 16: Market Leader in Prevention & Recovery with Differentiated Brands
Market Leader in Prevention & Recovery with Differentiated Brands P&R Sales & Market Position1 Market Leadership Technology and Brand Leadership $5B market expected to grow 3-4% per year Industry-defining products across Orthopedics Leader in fast growing Sports Medicine segment MotionMD® workflow s
Slide 17: Shaping P&R - Driving Core Growth and Accelerating Key Strategies
Shaping P&R - Driving Core Growth and Accelerating Key Strategies Investments focused on driving sustained above-industry growth + margin improvement Sales Growth 2023 YTD (9mo) Global Bracing & Supports Innovation Focus Modernizing Core segments Expanding into high growth categories Leading transit
Slide 18: Leading in Digital Healthcare with MotionMD
Leading in Digital Healthcare with MotionMD® A purpose-built SaaS platform creates stickiness and enables share gain SaaS Workflow Automation Software Solution Clinic Location Growth Key driver in large Hospital clinic conversions: $15mm 2020-2021 MotionMD® revenue delivers 600 bps higher gross marg
Slide 19: Delivering on Strategic Goals in 2023
Delivering on Strategic Goals in 2023 Set up for strong 2024 performance and momentum Organic Revenue Growth See appendix for non-GAAP reconciliations. aEBITDA Expansion +100 bps YTD 9mo Considerations for 2024 Recon Double-Digit P&R Low/Mid Single-Digit Gross Margin Improvement High-Single Digit Op
Slide 20: Appendix
Appendix
Slide 21: Q3 and YTD Sales Bridge
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Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation
Slide 23: enovis. Creating Better Together
enovis. Creating Better Together”