Enovis Corporation · NYSE:ENOV
Enovis — DJO Global — Debt Investor Presentation (December 2014)
25 slides from Enovis's debt investor presentation, December 2014
Slide 1: DJO Global
+ + MOTIONS MEDICINE DJO GLOBAL December 2014 ES Sf DIO
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by DJO Finance LLC, the public reporting subsidiary of DJO Global, Inc. (DJOFL). The information contained in this presentation is for information purposes only. The information contained in this presentation is not investment or financial pr
Slide 3: DJO Global
DJO Global Revenue and Adjusted EBITDA(1) Headquarters Founded in 1978 in Carlsbad, CA San Diego $1,176 $1,216 $1,075 $1,129 People ~5,400 employees in 27 countries $264 $271 $264 $274 Orthopedic Unique strategy focusing on injury prevention, Focus conservative treatment and rehabilitation 2011 2012
Slide 4: Preeminent Competitor
Preeminent Competitor Attractive Industry Key Competitive Dynamics Advantages Key Growth Strategies • Large addressable markets • #1 in Orthopedic clinics • Differentiated solutions that keep people moving • Arthritis is a large market with • #1 in Physical Therapy clinics 44 million patient suffers
Slide 5: Market Opportunity
+ + MOTIONS MEDICINE Market Opportunity ES Sf DIO
Slide 6: DJO Global - Historic Addressable Markets
DJO GLOBAL - HISTORIC ADDRESSABLE MARKETS • DJO Global historically focused in sports medicine and physical therapy markets • DJO Global has strong share in those markets DJO Global market share $2B $1B $17B $300M Global Bracing & Supports Market Global Recovery Sciences Market Diabetic Footwear Mar
Slide 7: DJO Opportunity
DJO Opportunity Total Consumer MotionCare Elective Market Orthopedic Surgical Market $17B $26B $20B $110M in 2014 $35M in 2014 $10M in 2014 DJO Growing 17% DJO Growing 28% DJO Growing 16% 7 COMPANY CONFIDENTIAL
Slide 8: Continuum of Care
Continuum of Care 8 COMPANY CONFIDENTIAL
Slide 9: MotionCare
MotionCare 1 2 4M 44M $26B Motion Care 3 Total Patient Total Patients Opportunity at $1,500 per patient Surgeries in Clinic $17B Over 44 million patients in clinics with arthritis could benefit from our MotionCare protocol and products Total Orthopedic 1 – Estimated from $17B market at an ASP of $4,
Slide 10: Consumer Sports Medicine
Consumer Sports Medicine Patients seeking preventative or conservative/non-surgical care products Orthopedic Surgeon The consumer Retail Channel sports medicine market is nearly Retail Pharmacy 7x the size of the Sporting professional Goods Retailers sports medicine & physical therapy market $3B Pro
Slide 11: Orthopedic Implants
Orthopedic Implants • Drive deep into large niche opportunities that are hard for the larger players to address • Strategy successful in shoulders and minimally invasive hips • The only company that can provide orthopedic care products from the onset of arthritis through surgical rehabilitation $17B
Slide 12: Competitive Advantages
+ + MOTIONS MEDICINE Competitive Advantages ES Sf DIO
Slide 13: Sustainable Innovation Gap
Sustainable Innovation Gap • Rapidly developing and launching differentiated solutions that help keep people moving • Stay ahead of the competition • Stronger pricing power 2010 2011 2012 2013 2014 2015 13 COMPANY CONFIDENTIAL
Slide 14: Leading Market Positions: Defensible, Comprehensive Product Offering
Leading Market Positions: Defensible, Comprehensive Product Offering Strong Brand Names • Market leader in multiple market segments and product categories • Established global presence with over 60 years of history in the physical therapy market and over 30 years of history in the orthopedics market
Slide 15: Diverse Sales Forces Provide Differentiated Presence with Multiple Prescriber & Provider Groups
Diverse Sales Forces Provide Differentiated Presence with Multiple Prescriber & Provider Groups Customer Call Point How we get there • Orthopedic Surgeons • DonJoy and Surgical Distributor Partners • Podiatry • Physical Therapy/ Chiropractic • Independent Sales Representatives • Spine Surgeons • Dir
Slide 16: Competitive Advantages in Manufacturing, Distribution and R&D
Competitive Advantages in Manufacturing, Distribution and R&D • Main manufacturing facility in Tijuana, Mexico • Culture of continuous improvement, driving company-wide productivity • Efficient, automated distribution capabilities (24-72 hour delivery) • Comprehensive mechanical and electronic R&D c
Slide 17: Financial Summary
+ + MOTIONS MEDICINE Financial Summary ES Sf DIO
Slide 18: Historical Financial Summary
Historical Financial Summary Revenue Selected Income Statement Metrics ($ in millions) ($ in millions) LTM $1,216 FY2012 FY2013 Q3-14 $1,176 $1,129 Revenue $ 1,129.4 $ 1,175.5 $ 1,215.7 $1,075 Adjusted Gross Profit(1) $ 689.2 $ 707.1 $ 736.2 2011 2012 2013 LTM Q3-14 % of Revenue 61.0% 60.2% 60.6% Ad
Slide 19: September 27, 2014 Capitalization Table
September 27, 2014 Capitalization Table ($ in millions) Debt: Rate Maturity Revolver ($89.5 million available) $10.0 L+4.75% Mar-2017 Term loans (3) 889.0 L+3.75% Sep-2017 Second priority senior secured notes (3) 330.0 8.75% (4) Mar-2018 New Senior unsecured notes due 2018 (3) 440.0 9.875% Apr-2018
Slide 20: DJO Opportunity
DJO Opportunity Total Consumer MotionCare Elective Market Orthopedic Surgical Market $17B $26B $20B $110M in 2014 $35M in 2014 $10M in 2014 DJO Growing 17% DJO Growing 28% DJO Growing 16% 20 COMPANY CONFIDENTIAL
Slide 21: Business Units Overview
+ + MOTIONS MEDICINE Business Units Overview ES Sf DIO
Slide 22: Bracing and Vascular – 41% of LTM Q3'14 Revenue
Bracing and Vascular – 41% of LTM Q3’14 Revenue Bracing Products Vascular Products Bracing and Vascular Highlights Bracing and Vascular Revenue • Broad range of soft goods – key to GPO penetration ($ in millions) • Innovative rigid bracing, walking boots and cold therapy $477 $495 $444 • Exos thermo
Slide 23: Surgical Implant – 8% of LTM Q3'14 Revenue
Surgical Implant – 8% of LTM Q3’14 Revenue • Diverse portfolio of orthopedic Knees Hips Shoulders reconstructive joint products for knees, hips and shoulders • Primary focus on shoulder segment with a track record of innovation – over 50% of revenue • Niche market position with less than 1% share in
Slide 24: International – 26% of LTM Q3'14 Revenue
International – 26% of LTM Q3’14 Revenue • Continue to go-direct in countries that have shown promise • Accelerate investment into China and India • Continue to invest in over performing developed countries 2013 Sales Mix by Geography International Net Sales ($ in millions) Spain, UK Benelux & Nordi
Slide 25: Recovery Sciences – 25% of LTM Q3'14 Revenue
Recovery Sciences – 25% of LTM Q3’14 Revenue • Home Electrotherapy - TENS • Promotes healing of Non- • Clinical Electrotherapy Pain Management & NMES Union Bone Fractures and Muscle Stimulation Spinal Repair Surgery • Continuous Passive Motion • Home Traction Devices • Clinical Traction Devices • Io
DJO Global — Debt Investor Presentation (December 2014) on 6ix