January 7, 2012 David Mowry, Interim President and CEO Specialists SERVING Specialists Exhibit 99.2 [ 1 ] |
Forward-Looking Statements [ 2 ] Statements contained in this presentation that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as “expect,” “anticipate,” “project,” “intend,” “will,” “may,” “believe,” “should,” “could,” “continue,” “estimate,” “outlook,” “plan,” “guidance,” other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Tornier’s actual results to be materially different than those expressed in or implied by Tornier’s forward-looking statements. For Tornier, such uncertainties and risks include, among others, Tornier’s future operating results and financial performance, fluctuations in foreign currency exchange rates, the effect of global economic conditions, the timing of regulatory approvals and introduction of new products, physician acceptance, endorsement, and use of new products; the effect of regulatory actions, changes in and adoption of reimbursement rates, potential product recalls, competitor activities and the costs and effects of litigation and changes in tax and other legislation. More detailed information on these and other factors that could affect Tornier’s actual results are described in Tornier’s filings with the U.S. Securities and Exchange Commission, including its most recent quarterly report on Form 10-Q. Tornier undertakes no obligation to update its forward-looking statements. |
Non-GAAP Financial Measures [ 3 ] Tornier uses certain non-GAAP financial measures in this presentation, such as constant currency. Tornier uses non-GAAP financial measures as supplemental measures of performance and believes these measures provide useful information to investors in evaluating Tornier’s 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 Tornier’s financial results prepared in accordance with GAAP. In addition, investors should note that any non-GAAP financial measure Tornier uses may not be the same non-GAAP financial measure, and may not be calculated in the same manner, as that of other companies. A reconciliation of the non-GAAP financial measures used in the presentation to the most directly comparable GAAP financial measures can be found on Tornier’s website www.tornier.com under the “Non-GAAP Measure Reconciliation Tables” section of the “Investor Relations” page. |
Specialists SERVING Specialists Global Medical Device Company, Focusing on Surgeons Treating Extremities Injuries and Disorders EXTREMITIES [ 4 ] |
The Tornier Story: Positioning for Future Growth BROADEST PRODUCT PORTFOLIO Upper Extremities Lower Extremities Biologics/ Sports Medicine Leader in Innovation, Science & Education HIGH GROWTH MARKET Robust Drivers Assure Growth $6.5B 7-9% CAGR (’12 – ’17) SCALE FOR EFFICIENT SALES Target High-Volume Extremities Specialists Upper Extremities Lower Extremities [ 5 ] Extremities EXECUTION FOCUS FOR 2013 |
Attractive Market for Extremities BROADEST PRODUCT PORTFOLIO Upper Extremities Lower Extremities Biologics/ Sports Medicine Leader in Innovation, Science Education SCALE FOR EFFICIENT SALES Target High-Volume Extremities Specialists EXECUTION FOCUS FOR 2013 HIGH GROWTH MARKET Robust Drivers Assure Growth Extremities $6.5B 7-9% CAGR (’12 – ’17) Upper Extremities Lower Extremities [ 6 ] |
Large and Growing Global Extremities Market $2.7B ~ $4.0B 8-9% CAGR UPPER EXTREMITES $2.1B ~ $3.0B 7-8% CAGR SPORTS MEDICINE & BIOLOGICS $1.7B ~ $2.5B 7-8% CAGR LOWER EXTREMITIES Total Extremities Market Is $6.5B with 7-9% CAGR [ 7 ] 2012 2017 2012 2017 2012 2017 |
Robust Extremities Market Drivers Provide Opportunity for Future Growth and Differentiation Active, Younger Patient Population Expanding Knowledge of Treatment Options Early Stages of Device Innovation Opportunity for Material and Design Improvements TECHNOLOGY PATIENTS OUTCOMES Upside for Continued Clinical Improvements Economic Environment Driving Clinical Data Requirements [ 8 ] |
2012 Actions Focused on Capturing Opportunities ACTIONS ACTIONS OPPORTUNITY OPPORTUNITY Specific Press-fit Shoulder Broaden Lower Extremities Offering US SALES CHANNEL EXECUTION OVERHEAD / EXPENSE REDUCTION 1 2 3 Access to Foot & Ankle Sales Channel New Sales Management Organization Developed 2013 Playbook for Upper & Lower Focus COGS Reduction / Insourcing Facilities Consolidation Introduced 14 New Products including the Ascend Flex Acquired Foot & Ankle Bone Fixation Portfolio OrthoHelix Acquisition * Nine months ended September 30, 2012 constant currency growth of 8.9% over nine months ended October 2, 2011 [ 9 ] BROADEN PORTFOLIO 9%* Y-O-Y Extremities Revenue Growth |
OrthoHelix Acquisition: Complementary Capabilities PRODUCTS Broad Shoulder Portfolio Elbow Arthroplasty Strong Ankle Arthroplasty Sports Medicine & Biologics Foot & Ankle Fixation Comprehensive Upper & Lower Extremities Portfolio with Minimal Overlap GEOGRAPHY US Europe Emerging Markets US Only Channel US Cross Selling & Geographic Expansion US SALES CHANNEL 18 Distributors 3 Direct Territories Upper Extremities Focus 50+ Metro Distributors Sole Focus on Lower Scale and Flexibility Focused Upper & Lower Extremity Sales Forces R&D EXPERTISE Arthroplasty / Replacement (Motion) Materials / Biologics Plate Design / Repair (Fixation) Broad R&D Talent to Be Leveraged into Each Market Segment THE PAYOFF [ 10 ] and Accelerated Financial Performance Global Extremities Leadership |
Filling Out Our Extremities Product Portfolio SCALE FOR EFFICIENT SALES Target High-Volume Extremities Specialists HIGH GROWTH MARKET Robust Drivers Assure Growth Extremities $6.5B EXECUTION FOCUS FOR 2013 BROADEST BROADEST PRODUCT PORTFOLIO PRODUCT PORTFOLIO Upper Extremities Lower Extremities Biologics/ Sports Medicine Leader in Innovation, Science & Education Upper Extremities Lower Extremities 7-9% CAGR (2012 – 2017) [ 11 ] |
Portfolio Strategy Leverages Strong Arthroplasty Position $1.2B $6.5B CALL POINT FOCUS [ 12 ] #2 Top 5 #1 JOINT JOINT REPLACEMENTS REPLACEMENTS BONE REPAIR BONE REPAIR BIOLOGICS BIOLOGICS SPORTS SPORTS MEDICINE MEDICINE SHOULDER HAND, WRIST AND ELBOW FOOT AND ANKLE PROCEDURES LEVERAGE Strength of Products / Innovation R&D Skills and Talent Key Physician Relationships Common Call Points |
13 12 10 2 3 35 9 CALL POINT FOCUS Most Comprehensive Extremities Product Portfolio 88 Distinct Extremities Products [ 13 ] 4 JOINT JOINT REPLACEMENTS REPLACEMENTS BONE REPAIR BONE REPAIR BIOLOGICS BIOLOGICS SPORTS SPORTS MEDICINE MEDICINE SHOULDER HAND, WRIST AND ELBOW FOOT AND ANKLE PROCEDURES |
January ‘13 Filling Out Portfolio with High-Impact New Products UPPER EXTREMITIES UPPER EXTREMITIES Shoulder Arthroplasty % of Addressed Procedures ADDED Ascend Flex Press-Fit Reverse Shoulder (Revision Friendly) LOWER EXTREMITIES LOWER EXTREMITIES Foot and Ankle Procedures % of Addressable Procedures OrthoHelix Foot and Ankle Portfolio [ 14 ] |
Varying Treatment Anchors Fracture Resurfacing Stemless Anatomic Reverse Revision Convertible CTA Glenoid Conservative to More Aggressive Treatments PyC Tornier Shoulder Portfolio: Building a Continuum of Care Ascend Flex [ 15 ] Options |
The “Go-To” Company for the Specialist [ 16 ] CLINICAL DATA DRIVEN STRATEGY Aequalis Shoulder Registry Simpliciti Shoulder US IDE Study Salto-Talaris Total Ankle Data Set Pyrolytic Carbon Material & Application Biologic Augmentation Synthetic Growth Factors Significant Investment in Training & Education Unique Shoulder and Foot & Ankle Master Courses Tornier Fellows Courses ACTIVE FUNDAMENTAL RESEARCH COMMITMENT TO CLINICAL EDUCATION RESPECTED FOR RESPECTED FOR SCIENTIFIC RIGOR SCIENTIFIC RIGOR |
Efficient, Targeted Sales Distribution BROADEST PRODUCT PORTFOLIO Upper Extremities Lower Extremities Biologics/ Sports Medicine Leader in Innovation, Science Education HIGH GROWTH MARKET Robust Drivers Assure Growth Extremities $6.5B 7-9% CAGR (’202 – 2017) EXECUTION FOCUS FOR 2013 SCALE FOR SCALE FOR EFFICIENT SALES EFFICIENT SALES Target High-Volume Extremities Specialists Upper Extremities Lower Extremities [ 17 ] |
US: Planning for Focused Upper and Lower Sales Distribution CHANNEL FOCUS MIRRORS CUSTOMER SPECIALIZATION Upper Extremities Lower Extremities Sales Force: Surgeon Specialists: Shoulder, Elbow, Wrist & Hand Foot and Ankle [ 18 ] Complete Offering / Procedure Coverage Product Pull-through / Cross-Selling Access to New Surgeons & Accounts Entry into “OPEN OrthoHelix Territories INCREASED SELLING OPPORTUNITIES Scale Drives Flexibility ” |
International: Addressing Mature and Underpenetrated Markets OUS Launch of OrthoHelix Products in 2H ‘13 MATURE MARKETS Focused Extremities Channels – Japan Converted to Direct 2Q12 – Belgium Converted to Direct in 3Q12 – Canada Conversion Planned for 1H13 UNDER PENETRATED MARKETS – Underpenetrated in So America & Asia – 4 New Countries Added in 2012 • – Additional Registration and Approvals – Introduction of Complementary Products Direct in Key EU and PACRIM Markets Ongoing Channel Conversions Untapped Geographies Leverage Existing Geographies [ 19 ] |
The Outlook for 2013 BROADEST PRODUCT PORTFOLIO Upper Extremities Lower Extremities Biologics/ Sports Medicine Leader in Innovation, Science Education SCALE FOR EFFICIENT SALES Target High-Volume Extremities Specialists Upper Extremities Lower Extremities HIGH GROWTH MARKET Robust Drivers Assure Growth Extremities Extremities $6.5B 7-9% CAGR (2012 – 2017) EXECUTION FOCUS FOR 2013 [ 20 ] |
POSITION POSITION EXPERIENCE EXPERIENCE Dave Mowry Interim President & CEO Shawn McCormick CFO Terry Rich SVP US Commercial Ops David Andersen VP Global Marketing Robert Ball VP Global R & D Stéphan Epinette VP International Commercial Ops Kevin Klemz VP, Chief Legal Officer Greg Morrison VP Global HR Energized, Execution-Focused Leadership Team EXPERTISE EXECUTION FOCUS Medical Device Orthopedics Drive Revenues & Profitability Do Fewer Things, Better [ 21 ] |
Positioning the Company for Future Growth Continue to Innovate Across Portfolio 10 – 12 New Products Per Year Increase the Focus of Our Sales Channels Balanced Global Extremities Growth Direct in Mature Markets; Expand in Emerging Markets Expanding OUS Channels Leverage OrthoHelix to Achieve Foot and Ankle Leadership [ 22 ] TECHNOLOGY TECHNOLOGY LEADER LEADER DRIVE DRIVE REVENUE REVENUE DRIVE DRIVE REVENUE REVENUE INCREASE INCREASE GROWTH RATE GROWTH RATE |
2013 – We Will Focus on a Vital Few Initiatives US Sales Channel Alignment 1 OrthoHelix Integration 2 New Product Launches 3 [ 23 ] |
Positioned for Growth: Revenue * Expected 2012 revenue as reiterated in press release on January 7, 2013 [ 24 ] HISTORY HISTORY GEOGRAPHY GEOGRAPHY $201M $227M $261M $274 - 277M* 2009 2010 2011 Expected 2012 $75.8-78.8M* $274 - $277M Expected 2012* US ~56% OUS ~44% |
Summary BROADEST BROADEST PRODUCT PORTFOLIO PRODUCT PORTFOLIO Upper Extremities Lower Extremities Biologics/ Sports Medicine Leader in Innovation, Science & Education HIGH HIGH GROWTH MARKET GROWTH MARKET Robust Drivers Assure Growth Extremities $6.5B 7-9% CAGR (’12 – ’17) EXECUTION FOCUS FOR 2013 SCALE FOR SCALE FOR EFFICIENT SALES EFFICIENT SALES Target High-Volume Extremities Specialists Upper Extremities Lower Extremities [ 25 ] |
Specialists SERVING Specialists [ 26 ] |