An International High-Growth Platform With a New Approach to - PowerPoint PPT Presentation

An International High-Growth Platform With a New Approach to Orthopaedics PATIENT WELL-BEING MEDICAL EDUCATION INNOVATION

Disclaimer IMPORTANT NOTICE This presentation has been prepared by Medacta Group SA ("Medacta" and together with its subsidiaries, "we", "us" or the "Group") and includes forward-looking information. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions. There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward- looking information and statements made in this presentation. The important factors that could cause such differences include: changes in the global economic conditions and the economic conditions of the regions and markets in which the Group operates; changes in healthcare regulations (in particular with regard to medical devices); the development of our customer base; the competitive environment in which the Group operates; manufacturing or logistics disruptions; the impact of fluctuations in foreign exchange rates; and such other factors as may be discussed from time to time. Although we believe that our expectations reflected in any such forward-looking statement are based upon reasonable assumptions, we can give no assurance that those expectations will be achieved. [This presentation also contains non-Swiss GAAP measures of performance. Definitions of these measures and reconciliations between these measures and their Swiss GAAP counterparts, if not defined in this presentation, can be found on page 20 of this presentation. THIS PRESENTATION IS NOT AN INVITATION TO PURCHASE SECURITIES OF MEDACTA OR THE GROUP. 2

Vision and Values Healthcare System Patient Well-Being Sustainability …through products and services …so that its advanced solutions which make surgery and rehabilitation faster, more effective bring economical benefits to the Redefining Innovation and less painful… medical environment… Surgeon and Medical Education …so that the surgeon is never alone while discovering new technologies and treatments… Medacta takes a leadership role with a strong commitment to provide innovative surgical techniques and products that add economic value and sustainability to healthcare systems 3

An International High-Growth Platform With a New Approach to Orthopaedics 1 2 3 4 5 High-Growth Differentiated Dedicated Rich Pipeline of Experienced and Orthopaedics Minimally Invasive Surgeon Education Innovation-Led Committed Company with and Personalized Program Offerings Leadership Team International Reach Treatment Options Unique Profile Combining Teens Growth With High Profitability € 273m 14% 32% 2016-2018 CC 1 Revenue CAGR 2018 Revenues 2018 Adjusted EBITDA Margin 2 Notes : 1. Constant currency growth rate based on FY2018 average exchange rates 4 Excludes €0.6m of IPO costs and €0.9m of IFRS conversion costs 2.

Proven Track Record of Growth Built on the 1 HIGH GROWTH TRACK RECORD DIFFERENTIATED OFFERING Foundations of Long-Term Family Values SUPERIOR EDUCATION RICH PIPELINE EXPERIENCED MANAGEMENT Significantly investing in new product families leveraging “Our vision resulted from my own experience: passion, the existing business innovation and medical education to create products and Shoulder & Sports Med services that improve care and return patients to a life free Continued expansion of high growth Spine franchise from pain and disability. Our mission today is to continue to excel in all fields the Company has expanded.” Established business with Spine strong momentum for further growth Alberto Siccardi (Founder, President) Hip & Knee Reported Revenues Shoulder & Sports Med Spine Knee Hip Direct Market Presence 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Through surgeon medical education, Medacta innovation aims to provide better results both for patients and the healthcare system in terms of efficiency and economic savings 5

High-Growth Orthopaedics Company with 1 HIGH GROWTH TRACK RECORD DIFFERENTIATED OFFERING Attractive Business Mix and International Reach SUPERIOR EDUCATION RICH PIPELINE EXPERIENCED MANAGEMENT …Strong Geographic Diversification 5,6 … Medacta in Numbers 2018 Revenue Split Other 3% €273m 14% 32% Europe APAC Japan 46% Revenue CC Revenue Adjusted EBITDA France 7% Rem. 21% CAGR 2016-2018 1 Margin 2018 2 2018 12% APAC 1% Australia Switzerland 14% 12% 970+ 400+ ~1,150 Germany 6% Employees 3 Patents 4 Surgeons Attending Italy USA 5% Educational Activities 29% Austria Rem. in 2018 5% North Europe 5% America 29% Attractive Business Mix Coupled with… …and Presence in Most Attractive Markets 2018 Revenue Split Hip 56% 35% Knee Spine 7% 1% New Business Lines 12 20 90% Significant ramp-up expected in 2019 Shoulder & Sports Med Medacta Countries with of Global Branches Distribution Orthopaedic Revenue Notes : 1. Constant currency growth rate based on FY2018 average exchange rates Covered 7 Agreements Excludes €0.6m of IPO costs and €0.9m of IFRS conversion costs 2. 3. Number of Medacta employees as of 31-Dec-2018 4. 268 Granted, 141 Pending 5. Other includes only distributors not already allocated in the other regions; North America also includes Canada 6 6. Numbers may not add up due to rounding Medacta is present in target regions of countries that constitute 90% of the global Ortho market. S ource: “Orthoworld: The Orthopaedic Industry Annual Report”, May 2018. Content republished with permission from ORTHOWORLD, www.orthoworld.com 7.

Proven Track Record of Differentiated Growth, 1 HIGH GROWTH TRACK RECORD DIFFERENTIATED OFFERING Outperforming Key Competitors SUPERIOR EDUCATION RICH PIPELINE EXPERIENCED MANAGEMENT Global Ortho Market is Growing at ~4%... Medacta Stands Out in Broader Ortho Peer Universe Segment breakdown 1 Market Statistics 1 EBITDA Margin (2018) 5 Hip 40% 15% $49bn Global Market Size 2017 34% Other 2 Knee 18% Market Growth +3.9% 18E-22E 4% 30% 11% Extremities High Growth, 18% High Margin Market Share of Sports Med >50% Spine Territory Big-4 Ortho Players Segments in which Medacta is present …While Medacta is Outgrowing the Market and Key Competitors 20% L2Y Constant Currency Revenue CAGR 3 (Ortho Only - 2016-18 for Medacta, 2015-17 for Peers) 14% 10% 3% Big 4 Players 0% (Ortho only) 4 0% 10% 20% Next 3Y Revenue Growth 6 Notes : Source: “Orthoworld: The Orthopaedic Industry Annual Report”, published in May 2018. Content republished with permission from ORTHOWORLD, www.orthoworld.com 1. 2. Includes Trauma, Orthobiologics, craniomaxillofacial, bone growth stimulation and miscellaneous items 3. Constant Currency based on FY2018 average exchange rates for Medacta 4. Includes S&N (includes Knee and Hip Implants, Trauma and Extremities, Sports Medicine), Stryker (includes Orthopaedics and Spine), J&J (Orthopaedics), Zimmer pro forma for the acquisition of Biomet 5. FY2018 EBITDA margin for peers based on information from publicly available sources (Capital IQ, as of 31-Jan-2019) 7 6. Low to mid teens Medacta medium term revenue growth guidance, FY2018E-2021E revenue growth calculated for other companies based on information from publicly available sources (Capital IQ, as of 31-Jan-2019)

Pioneer in Minimally Invasive Solutions for 2 HIGH GROWTH TRACK RECORD DIFFERENTIATED OFFERING Hip Replacement SUPERIOR EDUCATION RICH PIPELINE EXPERIENCED MANAGEMENT Typical Benefits for the Patient, Surgeon and Healthcare System Anterior Minimally Invasive Surgery (AMIS) for Hip Replacement AMIS ecosystem SURGICAL TECHNIQUE AMIS is an evolution of the anterior approach: simpler, more reproducible and less invasive Surgical DEDICATED IMPLANTS 1 Technique Specifically designed to facilitate implantation through Shorter the anterior approach. Success evidenced by clinical hospitalization outcomes and customer satisfaction ADVANCED INSTRUMENTATION 2 Decreased Developed specifically to make the AMIS post-operative pain technique easier and more reproducible AMIS Friendly Implant 3 MEDICAL EDUCATION Immediate post-operative M.O.R.E. AMIS Education Programme is a highly effective teaching programmes muscle tone preservation for the anterior approach 4 SERVICES & TOOLS Reduced risk of dislocations Assist surgeons in the promotion of their practice and AMIS Mobile Leg Positioner patient education 5 Shorter rehabilitation and faster return to daily activities 70% 2 330,000+ 1 15+ Years of Procedures performed Conversion Experience worldwide Rate Notes : 1. As of 31-Dec-2018 8 2. Illustrative conversion rate calculated on the basis of 195 new learning centre participants between 1-Jan-2016 and 30-Jun-2016 who became active customers within 24 months after attending a course. Refers to all Medacta customers