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Investor Presentation
May 9, 2018
1
Cautionary Note Regarding Forward-Looking Statements
This presentation includes forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally
can be identified by the use of words such as “anticipate,” “expect,” “could,” “may,” “will,” “believe,” “estimate,” “continue,” “guidance,” “future,” other words of
similar meaning and the use of future dates. Forward-looking statements in this presentation include, but are not limited to, statements about the company’s
anticipated financial results for 2018, including net sales from continuing operations, adjusted EBITDA from continuing operations and adjusted earnings per
share from continuing operations, anticipated strong shoulder sales growth in 2018, and anticipated U.S. lower extremities improvement in 2018 and the
company’s need for additional capital. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Each forward-looking
statement contained in this presentation is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by
such statement. Applicable risks and uncertainties include, among others, the failure of the company’s 2017 U.S. sales force additions to achieve expected
results, focus on core product portfolio and incentives to drive U.S. lower extremities and biologics sales or delay in realization thereof; the risk of continued
supply constraints; the failure to integrate the legacy Wright and Tornier businesses and realize net sales synergies and cost savings from the merger with Tornier
or delay in realization thereof; operating costs and business disruption as a result of the merger, including adverse effects on employee retention and sales force
productivity and on business relationships with third parties; integration costs; actual or contingent liabilities; adverse effects of diverting resources and attention
to providing transition services to the purchaser of the large joints business; the adequacy of the company’s capital resources and need for additional financing;
the timing of regulatory approvals and introduction of new products; physician acceptance, endorsement, and use of new products; failure to achieve the
anticipated commercial sales of our AUGMENT® Bone Graft products; the effect of regulatory actions, changes in and adoption of reimbursement rates; product
liability claims and product recalls; pending and threatened litigation; risks associated with the metal-on-metal master settlement agreement and the settlement
agreement with the three settling insurers; risks associated with the subsequent metal-on-metal settlement agreements and ability to obtain the additional new
insurance proceeds contingent thereon; risks associated with international operations and expansion; fluctuations in foreign currency exchange rates; other
business effects, including the effects of industry, economic or political conditions outside of the company’s control; reliance on independent distributors and sales
agencies; competitor activities; changes in tax and other legislation; and the risks identified under the heading “Risk Factors” in Wright’s Annual Report on Form
10-K for the year ended December 31, 2017 filed by Wright with the SEC on February 27, 2018 and subsequent SEC filings by Wright, including without limitation
its Quarterly Report on Form 10-Q for the quarter ended April 1, 2018. Investors should not place considerable reliance on the forward-looking statements
contained in this presentation. Investors are encouraged to read Wright’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks
and uncertainties. The forward-looking statements in this presentation speak only as of the date of this presentation, and Wright undertakes no obligation to
update or revise any of these statements. Wright’s business is subject to substantial risks and uncertainties, including those referenced above. Investors,
potential investors, and others should give careful consideration to these risks and uncertainties.
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Note on Non-GAAP Financial Measures
Wright uses non-GAAP financial measures, including constant currency net sales, gross margin from continuing operations, as adjusted,
and EBITDA from continuing operations, as adjusted. Wright’s management team believes that the presentation of these measures
provides useful information to investors and that these measures may assist investors in evaluating the company’s operations, period over
period. EBITDA is calculated by adding back to net income charges for interest, income taxes and depreciation and amortization
expenses. While it is not possible to reconcile the adjusted EBITDA forecast in this presentation to the nearest metric under U.S.
generally accepted accounting principles (GAAP) without unreasonable effort, the adjusted EBITDA forecast excludes non-cash share
based compensation expense and non-operating income and expense, all of which may be highly variable, difficult to predict and of a size
that could have substantial impact on the company’s reported results of operations for a period. Investors should consider these non-
GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in
accordance with GAAP. Reconciliations of the non-GAAP financial measures used in this presentation to most comparable GAAP
measures can be found on our website.
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Wright is Leader in 3 of the
~$8B
Global extremities/
Orthopaedic Markets biologics market
#1 #2 Leader
Wright position in Wright position in Highly differentiated
foot & ankle market shoulder market biologics portfolio
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Recognized leader in high-growth
extremities & biologics market
Differentiators
That Matter Global footprint with the largest
specialized direct sales force in the U.S.
THE
ONLY
PLAYER WITH A SINGULAR FOCUS
ON
EXTREMITIES-BIOLOGICS
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In High-Growth Markets, We’re Positioned to Grow
Faster than Market
Available Market ~$8B (est.)
Multiple continued growth opportunities
Key Priorities
Revenue Cash
1. Continued strong Vision 1. Improve inventory and
shoulder growth, instruments efficiency
Your First Choice
driven by PERFORM™ in Extremities 2. Improve DSO
Reversed glenoid & Biologics
3. Leverage SG&A
2. “Restore the Core” in
U.S. Lower Extremities –
sales force performance
3. Improve International growth
4. Drive enabling technologies
Lower Extremities
PROstep™ MIS (Minimally Invasive Surgery) (Anticipated launch: 3Q 2018)
INFINITY™ BIOFOAM™ 3D (Anticipated launch: 4Q 2018)
INVISION™ Revision Ankle System (in rollout)
PROPHECY™ INVISION™ Revision Ankle (Anticipated launch: 2Q 2018)
ORTHOLOC™ 3Di Ankle Fracture LP System (in rollout)
SALVATION™ Limb Salvage Line Extensions (in rollout)
Upper Extremities
Biologics
PERFORM™ Reversed Glenoid (in rollout) AUGMENT® (in rollout)
SIMPLICITI™ Shoulder System (in rollout) AUGMENT® Injectable (pursuing
BLUEPRINT™ 3D Planning (staged rollout of PMA-Supplement with Panel Track)
new modules throughout 2018)
UPPER EXTREMITIES
BIOLOGICS
9 9
Product Pipeline:
Upper Extremities
Fixation
Long-term stability with ADAPTIS™
Integrated Porous Metal
Augmentation
Specifically shaped for treating
challenging glenoid anatomy
Orientation
Circular design and independent central screw
allows for an infinitely adjustable construct
POST-OPERATIVE
MEDICAL MONITORING
ANALYTICS
Rich pipeline under development
VIRTUAL
and patent pending to support SURGICAL
PLANNING
patient outcomes
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A Look Into Lower Extremities
LOWER EXTREMITIES
UPPER EXTREMITIES
BIOLOGICS
15 15
Product Pipeline: Lower Extremities and Biologics
PROstep™ MIS
Anticipated Launch: 3Q 2018
INFINITY™ BIOFOAM™ 3D
Anticipated Launch: 4Q 2018
AUGMENT® Injectable
Anticipated Launch: TBD – PMA-Supplement with Panel
Track
* Panel Track Supplement does not necessarily result in a panel meeting. It affords
FDA additional time to review the submission beyond 180 days. The current
average for Panel Track Supplement review and approval is 300+ days.
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INBONE™, INFINITY™ & INVISION™:
completing the options
Plating System
Fusion Bolts
First comprehensive solution for Charcot & Beams
arthropathy and advanced midfoot reconstruction
$60M-$80M 18
INBONE™, INFINITY™ & INVISION™
Total Ankle Replacement
Continuum of Care
Technologically
Advanced SALVATION™ Limb Salvage
Promising new lower extremities product portfolio
Products
Expected to
Plating Fusion Bolts
Outperform External Fixator System & Beams
Market
AUGMENT®
Alternative to autograft in
ankle and hindfoot fusion
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Restore growth in core U.S. foot and ankle business
U.S. sales force execution and new product launches
Focus on Execution
Improve sales force
productivity
~50% of US lower
extremities direct sales
force now focused on Ongoing &
selling core products New Product
Launches
Compensation plan is
incentivized for growth MIS
Ankle Fracture
INVISION™
SALVATION™
AUGMENT®
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Opportunity for Significant
Leverage Going Forward
> 50% OF OPERATING EXPENSE
CAN BE HIGHLY LEVERAGED
Key Drivers Sizing the Opportunity
Return on previous investments % OF OP EXPENSE
AUGMENT®
Depreciation R&D
International Expansion Amortization Sales Force
14% 30%
Sales Force
Medical Education
Non-EBITDA 100% Re-invest at rate of sales
Hubs
Sales Management, Distribution
Leverage existing infrastructure Marketing, Med Education G&A
24% 32%
EXCLUDING ABOVE ITEMS AND OTHER DISC OPS, EXPECT TO BE CASH FLOW POSITIVE IN 2018
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Clear path to high-growth and
profitability
with more levers coming into play
1 2 3
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2018 annual guidance
$
1 Guidance range communicated on 5/9/2018. The fact that we include these projections in this presentation should not be taken to mean that these amounts continue to be our projections as of any subsequent date.
2 Adj. EBITDA from continuing operations, which is measured by adding back to net income/loss from continuing operations charges for interest, income taxes, depreciation and amortization expenses, non-cash share-based
compensation expense, non-operating income and expense, and transaction and transition costs.
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Advancing toward our goals
1Q 2018
Non-GAAP Results
from Continuing Ops. Longer-Term Goals
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For additional information,
please contact:
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Execute
and Deliver
Investor Presentation
May 9, 2018
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