Professional Documents
Culture Documents
NASDAQ:OFIX
March 2017
Safe Harbor Statement and Use of Non-GAAP Measures
Except for historical information contained herein, the statements made in this presentation
constitute forward looking statements that involve certain risks and uncertainties. These forward
looking statements are based on our beliefs and expectations as of February 27, 2017, and we
do not undertake any obligation to revise or update such forward looking statements. Certain
factors may cause actual results to differ materially from those contained in the forward looking
statements, including those risks detailed from time to time in the Companys reports on file at
the Securities and Exchange Commission.
Orthofix may use certain non-GAAP financial measures in its presentations. Orthofix may use
non-GAAP financial measures as supplemental measures of performance and believes these
measures can provide useful information to investors in evaluating our operations, period over
period. However, non-GAAP financial measures have limitations as analytical tools, and should
not be considered in isolation or as a substitute for Orthofixs financial results prepared in
accordance with GAAP. In addition, investors should note that any non-GAAP financial measures
Orthofix uses may not be the same non-GAAP financial measures, and may not be calculated in
the same manner, as that of other companies. Investors can find reconciliations of our non-GAAP
financial measures to the most directly comparable GAAP financial measures in our earnings
press releases.
2
Orthofix is a bone fusion company focused
on the design, manufacture and distribution
of a broad range of regenerative and repair
products worldwide.
3
By The Numbers
2016NetSalesof$410million
TTMAdjustedEBITDAof$79.3million
TTMROIC*of10.6%
Globalpresenceinover70countries
Salesbreakdown:US 77%OUS 23%
CashonDecember30,2016of$40million
Nodebt
$125millioncreditfacilityavailable
Recentlycompleteda$75millionstockrepurchase
*Using38%taxrate
4
Constant Currency Net Sales and Adjusted EBITDA
NetSales AdjustedEBITDA
2.5%CAGR
$400
$100 14.1%CAGR
$350 $90
$300 $80
$70
$250
$60
$200
$50
$150 $40
$100 $30
$20
$50
$10
$0 $0
2014 2015 2016 2017 2014 2015 2016 2017
Guidance Guidance
CCNetSales* GuidanceRange CCAdj.EBITDA* GuidanceRange
*March09,2017foreignexchangeratesusedforcalculations
5
Bone Regeneration and Repair
EXTREMITY FIXATION
REPAIR SPINE FIXATION
6
Our Strategic Business Units
BioStim $176
18%
Biologics $58
43%
7
BioStim Bone Growth Stimulation
* MarketSize:$500MMarketShare:35%MarketPosition:#1
AnnualMarketGrowthRate:1% 3%
8 *InternalEstimates
FDA and CE Mark Approval for Next-Gen CervicalStim
and SpinalStim Devices
9
BioStim Policy Recommendation from NASS
10
Biologics Stem Cell Allograft
* MarketSize:$275MMarketShare:21%MarketPosition:#2
AnnualMarketGrowthRate:3% 5%
11 *InternalEstimates
Extremity Fixation
* MarketSize:$800MMarketShare:13%MarketPosition:#5
(ExternalFixation) AnnualMarketGrowthRate:2% 4%
12 *InternalEstimates
Spine Fixation
* MarketSize:$9.0BMarketShare:1%MarketPosition:#9
AnnualMarketGrowthRate:1% 3%
13 *InternalEstimates
Well Positioned For The Future
14
Achievement Highlights Since 2013
People Processes
NewManagementTeam FinancialControls
ReconstitutedBoardofDirectors WorldwideOracle&ITUpgrades
CultureofIntegrity&Performance SimplifiedCorporate&SBUStructures
PerformanceBasedCompensation OrdertoCashProcessImprovements
Products Performance
Investmentin: Adj.EBITDAExpansion~500BPS
BasicScience&ClinicalResearch FreeCashFlowOutlook
ObtainingTuckInTechnologies TTMDoubleDigitROIC
ProlificnewproductPipeline ResolvedLegacySEC/DOJIssues
OrthofixofToday
15
Looking Ahead
OrthofixofToday
LowSingleDigitTopLineGrowthCompany
~20%AdjustedEBITDAMargins
StrongFreeCashFlowPotential
DoubleDigitROIC
OpportunitytoLeverage:
LeadershipTeam
Infrastructure
FinancialStrength
TheNextChapter
Creatingadditionalshareholdervalue
16
2017 Organic Strategy
17
2017 Inorganic Strategy
18
Summary of Investment Highlights
19
Thank You
NASDAQ: OFIX
www.orthofix.com
ORTHOFIXINC2017
February27,2017