Orthofix Medical (OFIX) 8-K CANACCORD Adams Musculoskeletal Conference

CANACCORD Adams Musculoskeletal Conference

University of Nevada, Las Vegas

February 24, 2009

Orthofix International

Alan MilinazzoPresident &CEO

Safe Harbor Statement

Except for historical information contained
herein, the statements made in this
presentation constitute ‘forward looking
statements’ that involve certain risks and
uncertainties.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 Company’s reports on file at the
Securities and Exchange Commission.

Orthofix Overview

•Global medical device company with an emerging
focus on the spine sector, including minimally
invasive surgical and non-surgical devices and
biologic products.

•Total 2008 revenue of $520 million; 74% of total
revenue up an average of 16%

•Strategy for long term growth includes new product
introductions and market expansion

•Focus on improved cash flow and deleveraging the
balance sheet

•Spine: Market-leading spinal bone growth stimulators, including
only FDA-approved cervical spine stimulator; spine implants &
biologics

•Orthopedics: Internal and external fixation, deformity correction
and long bone stimulation

•Sports Medicine: Focus on knee bracing and cold therapy with
recent expansion into soft goods, back bracing, etc.

Core Businesses

55%

55%

19%

19%

26%

26%

Orthofix

DJO

Biomet

l$245-$250 million market; growth rate vs. 2007 = 5%-6%

lOFIX ’08 revenue growth YTD = 11%

Only FDA

approved

cervical spine

stimulator

U.S. Market- Spine Stimulation

• $4.1 billion global spinal fusion market; growing ~ 3.5%

• Orthofix current market share ~2%

Thoracolumbar

Cervical

IBD

$2.3B

$2.3B

$775M

$775M

$1.1B

$1.1B

Global Markets- Spine Implants & Biologics

• $1.5 billion U.S. bone graft substitute market; growing ~ 9%

• 2008 Trinity® revenue ~ $20 million

+9%

$1.76

$1.88

$1.04

$1.19

$1.34

$1.48

2006-2012 Market

($ in billions)

GFs

DBMs

Synthetics

Allograft

Stem Cells

‘08

‘09

‘10

‘11

‘12

‘07

‘06

$1.63

U.S. Market- Spine Implants & Biologics

• $419 million global non-fusion market; growing >40%

$112

$112

$132

$132

IPD Devices

Dynamic Stabilization

Cervical Discs

$175

$175

Global Markets- Spine Implants

Europe

U.S.

Internal
$1,230

$ millions

l External fixation market growing 1.0%

l Internal fixation market 7.6%

l External fixation market growing 2%

l Internal fixation market growing 3%

OFIX = 44%

Market share

OFIX < 1%

Market share

OFIX = 6%

Market share

OFIX <1%

Market share

Global Markets- Orthopedics (Fixation)

Smith &
Nephew

Biomet

38%

38%

DJO

Orthofix

30%

30%

21%

21%

11%

11%

l $240M-$250M U.S. market growing 10%

l OFIX 2008 revenue growth = 14%

U.S. Market- Orthopedics (U.S. Stimulation)

$1.76

$1.88

$1.04

$1.19

$1.34

$1.48

2006-2012 Market

($ in billions)

$1.63

GFs

DBMs

Synthetics

Allograft

Stem Cells

• $1.5 billion U.S. bone graft substitute market; growing ~ 9%

• 2008 Trinity® revenue $3.5 million

U.S. Markets- Orthopedics (Biologics)

Knee

Back

Ankle

Walkers

Elbow

$35

Wrist

$51

$784

$784

$115

$115

$150

$150

$154

$154

Shoulder

$47

OFIX ’08
growth
= 12%

U.S. Market- Sports Medicine (Bracing)

Motorized

Motorized

$75

$75

$26

$26

•Cold therapy market growth = 8%

•OFIX 2008 growth = 16%

Non-motorized

OFIX market

share

>35%

U.S. Market- Sports Medicine (Cold Therapy)

$83

$83

$174

$174

$47

$47

$60

$60

$101

$101

$270

$270

$467

$467

$150

$150

$86

$86

Post-Op
Bracing

Ligament
Bracing

Shoulder Bracing

OA Bracing

Cold Therapy

Foot & Ankle

Soft Bracing

Back Bracing

Upper
Extremity

lTotal available markets pre ‘08 = $462 million

lTotal available markets by ‘09 = $1.3 billion

U.S. Market- Sports Medicine Expansion

2008 revenue growth in 3 core business segments = 7.5%

Spine

Sports Medicine

Orthopedics

‘08 revenue

= $252 million

Gross margin of

mid to high 70%

‘08 revenue

= $129 million

Gross margin of
~70%

‘08 revenue

= $94 million

Gross margin of
mid-60%

2008 Vascular and Other revenue = $44 million

Core Business Segments

• Brad Mason named Group President, North America

and President of Orthofix Spine

• Bob Vaters named as Executive Vice President

and Chief Financial Officer

Key Management Changes

q New product introductions

q Focus on internal fixation/deformity correction devices

•Including geographic expansion in LA, Europe & Asia

q Focus on long bone stimulation & biologics in U.S.

•2008 stimulation revenue up 14%; market growing 10%

•2008 biologic revenue = $3.5M

qProfitability improvement

•SG&A reductions

•Optimization of geographic markets

•Focus on higher gross margin product platforms

Growth Strategy- Orthopedics

qLeverage strong distribution channels

•Well-established distributor partners

•Targeted migration to hybrid sales force

qLeverage strong market share in high growth areas

•Osteoarthritis knee bracing- 16% market share; OFIX
revenue growth = 14%

•Cold therapy- 37% motorized market share; OFIX
revenue growth = 16%

qProduct launches into new market segments

Growth Strategy- Sports Medicine

Growth Strategy- Spine Stimulation

Launch

accelerated

to May 1

Growth Strategy- Spine Implants &
Biologics

Blackstone- Improved U.S. revenue growth
2H08

Blackstone- Improved adjusted operating
loss

qQ408 cash balance decreased $1.4 million
sequentially from Q308, including impact of Q408
$10 million debt prepayment.

qQ408 leverage ratio = 3.4 vs. 4.0 requirement.

qAdditional $7 million debt prepayment made 2/09.

qLeverage ratio at 12/31/09 would be 3.0 based on
achieving low end of 2009 EBITDA guidance and
no additional debt prepayments for the remainder
of ’09, versus 3.25 maximum allowable ratio at
year-end.

Cash Flow/Operating Results

qRamius proposal seeks 40% of Orthofix Board
seats with only 5.5% stock ownership

qOrthofix has publicly expressed concerns about 2
of 4 Ramius nominees

qOrthofix has indicated willingness to interview
other 2 nominees; no response from Ramius

Ramius

Important Additional Information

Ramius Capital and certain of its affiliates have filed a preliminary proxy statement with the SEC in connection with
a special general meeting of shareholders at which Ramius proposes to make changes to the composition of
Orthofix's board of directors. Orthofix intends to file with the SEC a proxy statement in opposition to Ramius'
proposals. SHAREHOLDERS ARE URGED TO READ ORTHOFIX'S DEFINITIVE PROXY MATERIALS AND ANY
OTHER RELEVANT SOLICITATION MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and shareholders may obtain (when
they are available) a free copy of proxy statements filed with the SEC by Orthofix at the SEC's website at
www.sec.gov or by contacting Georgeson, 199 Water Street, 26th Floor, New York, NY 10038 or by calling (212)
440-9800 (bankers and brokers) or toll-free (800) 323-4133 (all others).

Orthofix International N.V. and its directors and certain executive officers are participants in the solicitation of
proxies in connection with the special general meeting of shareholders. The names of such persons are: James F.
Gero, Peter J. Hewett, Jerry C. Benjamin, Charles W. Federico, Dr. Guy J. Jordan, Ph.D., Thomas J. Kester, CPA,
Alan W. Milinazzo, Maria Sainz, Dr. Walter P. von Wartburg, Kenneth R. Weisshaar, Robert S. Vaters, Michael
Simpson, Bradley R. Mason, Raymond C. Kolls, J.D., and Michael M. Finegan. Information regarding such
participants, as well as each such person's respective interests in Orthofix by security holdings or otherwise, is set
forth in Orthofix's Revocation Solicitation Statement dated January 12, 2009, which may be obtained free of charge
at the SEC's website at www.sec.gov and Orthofix's website at www.orthofix.com. More current information
regarding such persons, as well as each such person's respective interests in Orthofix by security holdings or
otherwise, will be set forth in the definitive proxy statement materials to be filed with the SEC and distributed to
shareholders by Orthofix as described above.

Notification of Proxy Statement Filing