Orthopediatrics Corp. · NASDAQ:KIDS
Orthopediatrics — Investor Presentation (March 2022)
28 slides from Orthopediatrics's investor presentation, Mar 4, 2022
Slide 1: 2022 Investor Presentation
2022 Investor Presentation www.OrthoPediatrics.com
Slide 2: Disclaimer
22 0 2 2 / / Disclaimer Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "co
Slide 3: 234,000+ pediatric patients treated since inception
32 0 2 2 / / pediatric patients treated since inception 234,000+ OrthoPediatrics was founded on the cause of impacting the lives of children with orthopedic conditions
Slide 4: Historical Challenges of Pediatric Orthopedics
01 Children’s unique clinical conditions Existing solutions are re-purposed from adult implants Limited development of new technologies No specialized sales force in Pediatric Orthopedics Limited industry support of clinical education 02 03 04 05 42 0 2 2 / / Historical Challenges of Pediatric Ortho
Slide 5: OrthoPediatrics Solution
52 0 2 2 / / OrthoPediatrics Solution 01 02 03 04 05 Product development focused exclusively on pediatric patients Broadest pediatric specific portfolio in the industry Delivering first in market novel surgical solutions Only global commercial channel to market Leading provider of surgeon clinical e
Slide 6: Total Addressable Market – $3.3B
62 0 2 2 / / Total Addressable Market – $3.3B 1 Management’s Mar 2022 updates to IMS data from 2016 Competitive Dynamics $609M Trauma & Deformity $315M Scoliosis Fusion $200M Scoliosis Non-Fusion $187M Sports Medicine $140M Smart Implants Large incumbents repurpose adult implants Require specialized
Slide 7: Only Focused Pediatric Orthopedic Company
72 0 2 2 / / Only Focused Pediatric Orthopedic Company Consistent 20%+ Growth Since Inception1 1 Excluding COVID-impacted 2020 37 unique surgical systems Consistent cadence of innovative product launches Expanding suite of enabling technologies Internal R&D, acquisitions, and partnerships Only globa
Slide 8: Strategic Pillars
82 0 2 2 / / Strategic Pillars 02 Provide a broad product portfolio uniquely designed to treat children, surround pediatric orthopedic surgeons covering their needs 04 Expand addressable market through aggressive investment in R&D and select M&A opportunities 05 Train next generation of pediatric or
Slide 9: Focus on High-Volume Children's Hospitals
92 0 2 2 / / 1 Management’s Mar 2022 updates to IMS data from 2016 Comments ~1,400 Fellowship Trained Pediatric Surgeons Majority of Pediatric Centers are Teaching Hospitals Centers Treat Most Complex Pediatric Conditions 01 02 03 $378M Trauma & Deformity $195M Scoliosis Fusion $180M Scoliosis Non-F
Slide 10: Broad Product Portfolio: Pre-IPO
102 0 2 2 / / Pre-IPO Transitioned from Early Entry to Clinically Significant Cannulated Screws Response 5.5/6.0mm Fusion System PediPlate Physeal Tethering Hip Systems LCB / LPF ACL System BandLoc 5.5/6.0mm Banding Clavicle Plating System PediFlexPediLoc Femur PediLoc Tibia PediFragLocking Proximal
Slide 11: Accelerating Sales Growth Post-IPO
112 0 2 2 / / Accelerating Sales Growth Post-IPO Through Strategic Investment and Innovation $37.3 $45.6 $57.6 $72.6 $71.1 $98.0 2016 2017 2018 2019 2020* 2021 Total Revenue ($M) 2016 2021 CAGR U.S. Independent Sales Consultants 90 190 16% Instrument Set Deployments $7M $14M 15% Unique Surgical Syst
Slide 12: Post-IPO: Clinically Significant to Disruptive
122 0 2 2 / / Post-IPO moved from Clinically Significant to Disruptive 202020192017 2018 FireFly Patient Specific Navigation Guides 2021 DFOS Distal Femoral Osteotomy System MPFL System Wrist Fusion Plates PNP Pediatric Nailing Platform Response 4.5/5.0mm Fusion System Orthex External Fixation Syste
Slide 13: Strategic Acquisitions & Partnerships
132 0 2 2 / / Strategic Acquisitions & Partnerships Partnership Acquisition 202020192017 2021 04 Expand Market with M&A
Slide 14: Acquired Innovative Technologies: ApiFix and Orthex
142 0 2 2 / / ApiFix • Disruptive non-fusion technology • Viable alternative to failed bracing & spinal fusion • Posterior, minimally invasive approach • Motion preserving capabilities • Granted FDA HDE approval Orthex • Disruptive software complements ex-fix frame • Expands addressable market • Ser
Slide 15: FireFly Pedicle Screw Navigation Guides and 7D Surgical
152 0 2 2 / / FIREFLY® Pedicle Screw Navigation Guides FireFly S2/Alar Unique patient specific 3D printed bone models and drill guides, can be used with any Spinal Deformity Correction system. • 99.7% screw placement accuracy • Preoperative concierge surgical planning drives intraoperative efficienc
Slide 16: 7D Real World Experience
162 0 2 2 / / 7D Real World Experience Chris Comstock, MD & Eric Wait, MD Driscoll Children’s Hospital First Pediatric Deformity Installation in US I have noticed we are seeing shorter stays for our patients with complex spinal surgeries since we have started using the 7D technology. It used to be c
Slide 17: Physician Education and Awareness
172 0 2 2 / / Physician Education and Awareness OP Hands-on sales training and support • Annually invests 3% of sales on clinical education • Conducts >300 product/training sessions per year Continuous education • Major Sponsor of the prominent pediatric orthopedic societies Market development • Fos
Slide 18: Catalysts & Pipeline
182 0 2 2 / / Catalysts & Pipeline Enabling Technologies Scoliosis • Orthex surgical software • Firefly patient-specific planning/guides • 7D spinal interoperative navigation • PediPortal app • Advancing non-fusion treatment • Early-onset scoliosis innovations • Innovation in highly-complex fusion •
Slide 19: Trauma & Deformity and Scoliosis Growth
192 0 2 2 / / Trauma & Deformity +13% CAGR 14 26 2016 2021 $26.8 $65.8 2016 2021 Surgical Systems Revenue +19% CAGR Scoliosis >2X Growth 3 8 2016 2021 $9.3 $28.0 2016 2021 Surgical Systems Revenue >3.2X Growth 2021 Revenue by Product Family Trauma & Deformity Scoliosis Sports Medicine67% of Revenue
Slide 20: Strong History of Y/Y Growth
202 0 2 2 / / $0.6 $3.0 $7.1 $10.2 $16.1 $19.6 $23.7 $31.0 $37.3 $45.6 $57.6 $72.6 $71.1 $98.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Strong History of Y/Y Growth ($M) 400% 137% 44% 58% 22% 21% 31% 20% 22% 26% 26% -2% 38% U.S. International *Impacted by COVID *
Slide 21: Category Revenue Summary
212 0 2 2 / / $19.3 $22.5 $26.8 $32.8 $39.7 $49.4 $47.7 $65.8 $3.6 $7.4 $9.4 $11.6 $16.7 $21.5 $20.7 $28.0 $0.8 $1.1 $1.1 $1.2 $1.2 $1.7 $2.7 $4.2 $0 $20 $40 $60 $80 $100 $120 2014 2015 2016 2017 2018 2019 2020 2021 Re ve nu e ($ in M ill io ns ) Trauma & Deformity Scoliosis Sports Medicine/Other $1
Slide 22: Revenue Seasonality
222 0 2 2 / / Revenue Seasonality Seasonality Drives Stronger Performance in Summer Months and Holiday Periods 21% 26% 27% 25% 20% 25% 29% 26% 23% 19% 31% 27% 22% 27% 26% 25% 0% 5% 10% 15% 20% 25% 30% 35% 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020
Slide 23: Income Statement Summary
232 0 2 2 / / Income Statement Summary ($ in Millions) 1 Net loss per share attributable to common stockholders – basic and diluted FY 2018 FY 2019 FY 2020 FY 2021 Revenue $57.6 $72.6 $71.1 $98.0 Growth % 26% 26% (2%) 38% Gross profit $42.7 $54.6 $55.0 $73.4 Margin % 74% 75% 77% 75% Operating expens
Slide 24: Adjusted EBITDA Reconciliation
242 0 2 2 / / Adjusted EBITDA Reconciliation Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Net loss $0.0 ($14.0) ($16.3) ($32.9) Interest expense, net 0.4 0.6 2.2 3.4 Other income (0.3) (0.3) (1.1) (0.0) Provision for income tax (benefit) (0.2) (0.7) (1.1) (0.7
Slide 25: Adjusted EPS Reconciliation
252 0 2 2 / / Adjusted EPS Reconciliation Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Earnings (loss) per share, diluted (GAAP) $0.0 ($0.73) ($0.84) ($1.82) Accretion of interest attributable to acquisition installment payments 0.02 0.04 0.11 0.13 Fair value
Slide 26: Balance Sheet
262 0 2 2 / / Balance Sheet Assets Cash & short-term investments $54.9 Account receivable $17.9 Inventory (net) $57.6 Other current assets $3.3 Total Current Assets $133.7 PP&E (net) $28.5 Intangibles and goodwill $142.1 Total Assets $304.3 Liabilities Accounts payable $9.3 Debt $1.0 Accrued comp. &
Slide 27: Investment Summary
272 0 2 2 / / Investment Summary Only diversified company focused exclusively on pediatric orthopedics Large, underpenetrated market opportunity in pediatrics Highly concentrated customer base with targeted commercial strategy Broad product portfolio with innovative solutions Only provider committed
Slide 28: Contact details
2850 Frontier Drive Warsaw, IN 465852 ph: 574.268.6379 or 877.268.6339 fax: 574.268.6302 www.OrthoPediatrics.com2 0 2 2 / /