Investor Presentation
Pitch Book
ABC LLC
Confidential | 2016
2 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
CONTENTS
ABC: Investment Rationale 06
ABC: Company Positioning 17
Market Attractiveness: Lumbar and Cervical TDR Devices 27
ABC: Principal Risk Factors 41
Comparable Analysis and Equity Market Performance 43
ABC: Transaction Summary 03
ABC: Financial Projections & Valuation 47
Appendix 57
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Investor Presentation l ABC LLC l Confidential l 2016
ABC: Transaction Summary 01
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Investor Presentation l ABC LLC l Confidential l 2016
Transaction Summary (1/2)
sanitized data to maintain client confidentiality
Valuation
Summary
Investment
Rationale
Using DCF valuation methodology, ABC will have a base equity value of USD………….. The estimated WACC of …. and
terminal growth rate of … from 2026 have been assumed to arrive at the base equity value. By increasing the terminal value to
…., the equity value will increase to USD……..
Based on a conservative …. premium to trading and precedent transaction comparables, the relative valuation for ABC will be
USD….. and USD………, respectively
ABC’s valuation at USD……. represents about X% and Y% discount to the …….. acquisition of …….. for …….., and ……..
acquisition of ………… for ………
ABC’s XYZ technology offers superior functionality as compared to all the currently available and expected TDR technologies in
the DDD market
ABC’s XYZ technology offers superior functionality that is far ahead of its competitors in restoring the biomechanical
characteristics of a human spine
The potential market opportunity for ABC’s XYZ technology would not only exceed the present TDR technologies, but also
disrupt Fusion’s market for spinal arthroplasty
Rising TDR penetration and increasing use of Next-generation discs is expected to drive the total Lumbar & Cervical
spine market
With better clinical outcomes and improved economic data from XYZ pivotal studies, adoption rate and reimbursement scenario
is poised to improve in the near future
XYZ will have the first mover advantage in both Europe & US markets, as it is the first elastomeric technology with CE Marking
and US FDA approval in the pipeline
ABC is expected to see strong revenue growth, with higher operating margins and return on capital as compared to its
closest peers
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Investor Presentation l ABC LLC l Confidential l 2016
Transaction Summary (2/2)
Company
Positioning
Industry
Outlook
ABC is a US-based medical devices company that has developed a next-generation total disc replacement technology designed
to replicate the natural biomechanics of the human spine
ABC’s flagship technology, XYZ is the next generation elastomeric based total disc replacement platform which has the ability
to reproduce normal spinal function
The company’s Intellectual Property includes a comprehensive patent portfolio, exclusive rights to the proprietary polymer family
and key manufacturing innovations
.... and .... display superior strength and durability along with enhanced range of motion compared to that of a healthy
human disc; The products have passed biomechanical tests demonstrating significant strength, durability, stiffness and range of
motion
ABC plans to expand its geographical reach, while enforcing competitive barriers, optimizing its R&D capabilities and
cost minimization
An aging population and higher per capita income in the older age groups would increase healthcare spending; population in the
age group 45-64 is most prone to low back pain and neck pain which are the initial symptoms of Degenerative Disc Disease
US Healthcare expenditure per capita has increased at a CAGR of 3.4% over 2008-12; health insurance is replacing out-of-
pocket healthcare costs
EU Healthcare expenditure per capita has increased at a CAGR of 2.5% over 2008-12; an aging population would further
augment the healthcare spending
US Lumbar and Cervical TDR market is forecasted to reach USD3.6bn and USD1.4bn, respectively by 2016; Europe Lumbar
and Cervical TDR market is currently around one-fifth of US market
Spine Implant market is currently dominated by fusion procedures which account for more than 50% of the market; top 2
companies account for around 50% of the market share of the Spine Implant market
sanitized data to maintain client confidentiality
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Investor Presentation l ABC LLC l Confidential l 2016
ABC: Investment Rationale 02
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Investor Presentation l ABC LLC l Confidential l 2016
ABC’s XYZ technology offers superior functionality as compared to all the currently available and
expected TDR technologies in the DDD market
ABC: XYZ Technology
Source: ……………
Fusion First/ Next Generation XYZ
Tech
no
log
y E
nh
an
cem
en
t
Low
High
Uses viscoelastic
polymer
………….
Bone
Fusion of
vertebrae
Uses either
metal-on-
polyethylene/
polyurethane or
metal-on-metal
core designs
Mimics the
stability…………
Controlled,
predictable
motion
Restores correct
spine alignment,
…….
Restores disc
height only with a
fixed centre of
rotation
Reduces strain
on adjacent discs
and ……
Forces adjacent discs &
facets to absorb excess
pressure, increasing
chances of degeneration
10 to 25% cases need to be re-
operated within ten years
Recorded cases of
deformation/ failure of cores
in polyethylene devices;
increased levels of metallic
ions release from metal
devices
Removes the need for a
keel and is also
unencumbered by
bearing …….
Over 40 years of product life
XYZ is a one-piece
viscoelastic artificial disc
consisting of an elastomeric
core bonded to titanium alloy
retaining plates
Polymer-metal bond strength
is …… times that of the
natural disc
Withstand …… times the
amount of translation
experienced by the human
lumbar disc without failure
The biocompatible,
viscoelastic materials helps
mimic the functionality of a
human disc
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8 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC’s XYZ is the only one-of-its-kind technology that is far ahead of its competitors in restoring the
biomechanical characteristics of a human spine
ABC: Competitive Benchmarking
Source: ……………; Individual company websites
Data removed to preserve client
confidentiality
Data removed to preserve client confidentiality
Data removed to preserve client confidentiality
Data removed to
preserve client
confidentiality
Stability
Motion
Motion & Compression
Stability, Motion
& Compression
Biomechanical Characteristics of
a Human Spine
Re-establishes the natural resistance to loading/ flexibility
while creating stability and restoring the center of rotation
Provide viscoelasticity to mimic the dynamic stiffness and
load sharing characteristics in the human disc
Preserve physiological Range of Motion (ROM) in flexion,
extension, lateral bending, rotation and compression.
XYZ
Competing Next Generation TDR
Fusion
First Generation TDR
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9 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
The potential market opportunity for ABC’s XYZ technology would not only exceed the present TDR
technologies, but also disrupt Fusion’s market for spinal arthroplasty
Addressable Lumbar & Cervical Spine Market:
Source: ……………
Lumbar & Cervical TDR Eligibility Primary Growth Drivers XYZ Advantage C
urr
en
t F
usio
n M
ark
et
Tier III
Tier II
Tier I
[ ]
[ ]
[ ]
[ ]
[ ]
[ ]
Higher benefits from a
viscoelastic, anatomically
optimized ……..
Allows multi-level ……..
applications
Installs a degree of stability
that the first generation of
TDRs cannot
Able to reproduce the normal
spinal function and alignment
Proven and advanced
technology alternative to
Fusion and other TDR options
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10 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Rising TDR penetration and increasing use of Next-generation discs is expected to drive the total
Lumbar & Cervical spine market
US Market Opportunity in Lumbar and Cervical TDR:
Source: ……………
Total Number of TDR Discs (‘000s) Eligible Procedures (‘000s), TDR Pen. Total Market Size (USD Bn)
1.9
2.6
3.6
1.1 1.2
1.4
2014 2015 2016F
Lumbar Cervical
254
268
286
208 217
242
41%
52%
65%
75% 76%
77%
2014 2015 2016F
Eligible Lumbar TDR Eligible Cervical TDR
Lumbar Pen. Cervical Pen.
154
204
273
192 203
230
2014 2015 2016F
Lumbar Cervical
Number of TDR discs is expected to grow at CAGR of
33% for Lumbar and 9% for Cervical
Total market size of TDR procedures is expected to
grow at CAGR of 37% for Lumbar and 13% for
Cervical
TDR penetration in eligible procedures is expected to
increase led by adoption of new generation TDRs
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11 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
With better technology adoption in Europe, the reimbursement scenario in Europe is relatively
favorable for TDR coverage
Insurance Coverage for Healthcare in the EU:
Source: ……………
Region Healthcare Insurance Scenario Healthcare payer coverage ABC Advantage
United Kingdom
Switzerland
Germany
Britain's National Health Service (NHS) was recently
judged the “world’s best health-care system” by the
Washington-based Commonwealth Fund
NHS provides cost-efficient care spending USD3,405 per
person per annum
No employer-sponsored or government-run insurance
programs available; consumer-driven healthcare
Healthcare insurance penetration among Swiss citizens is
99.5% (2011)
Govt. has enacted price controls for hospital and physician
reimbursement
Insurers are required to charge similar rates to the young
and old, cover pre-existing conditions, and operate as non-
profit entities
85% of the population is mandatory or voluntary member of
the public health scheme while the rest have private health
insurance
Private health insurance instead of the government health
plan can be availed when gross salary is higher than
EUR53,550 per annum
ABC’s first mover
advantage, superior
technology, coupled with
following benefits is
expected to improve
reimbursement scenario
in EU for TDR:
EU has a higher
adoption rate of new
technologies
Medical devices in the
EU are typically
priced at a discount to
those in the US
.... is available in EU
since 2009 and ....
since 2012
Positive clinical
outcomes data from
pre- and post-market
in EU
CE Mark approval for
.... and .... in EU
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12 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
With the release of better clinical outcomes and improved economic data from XYZ pivotal studies,
reimbursement scenario is poised to improve in the near future
Insurance Coverage for Lumbar and Cervical TDR in the US:
Source: ……………
Reimbursement Scenario Payer Coverage for Lumbar and Cervical TDR ABC Advantage
Increased scrutiny over
fusion reimbursement:
Rising concerns related to
clinical efficacy of Fusion
procedures have increased
the need for an alternative
treatment for DDD market
• Blue Cross/ Blue
Shield have limited
fusion procedures
Difficult reimbursement
scenario for first
generation TDRs due to
increased procedural costs
not substantiated by
identifiable benefits over
Fusion
~ 35-40%
of the US
population
is currently
covered
for TDR
Lu
mb
ar
&
Ce
rvic
al
Lu
mb
ar
Ce
rvic
al
The one-of-a-kind .... pivotal
study in TDR study design
includes economic endpoints as
per discussions with insurers
(……….)
Inclusion of economic
components in the pivotal study
as well as …….. measurements in
the study’s endpoint success
criteria differentiates the current
study from previous studies of
commercially available TDRs
Release of better clinical
outcomes and economic data on
XYZ combined with surgeon and
patient advocacy would improve
reimbursement over the next two to
five years
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13 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
XYZ will have the first mover advantage in both Europe & US markets, as it is the first elastomeric
technology with CE Marking and US FDA approval in the pipeline
ABC: Product Commercialization & Regulatory Approvals
Source: ……………
XYZ Lumbar Disc Received in …. Completed … patient
multi-center study, …..
European Union Post-clinical study CE Mark Approval Highlights Pre-clinical study
Completed ……………..
XYZ Cervical Disc
Received in …… Initiated pilot clinical study,
… (to be completed in …)
Completed …………….
U.S. Highlights FDA Approval Clinical Study
XYZ Lumbar Disc Received FDA IDE approval;
enrolled more than 400 patients
for pivotal study
Expected to receive approval by
2016/2017 ………………
XYZ Cervical Disc
Initiation of FDA IDE application
for .... in ….., following post
market study in EU
Expected to receive approval by
2017/2018
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14 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
The company’s intellectual property is protected through patents, exclusive licenses, proprietary
manufacturing methods and trade secrets
ABC: Intellectual Property
Source: ……………
Pa
ten
ts
Re
gis
tere
d T
rad
em
ark
s
8
3
Approved US patents
Patent Applications
Patent Applications 20
XYZ …. ….
XYZ is a one-piece ……….
XYZ was developed and designed by a
team of clinicians and experts in the fields
of biomechanics, pathology, spinal surgery
and polymer science, and evolves total disc
arthroplasty beyond the current ball and
socket designs (first generation discs)
It is developed in conjunction with ……..
A proprietary method for bonding ……...
It was developed to optimize the polymer to
metal bond, thereby extending the life
expectancy of the device in vivo
Biomechanical testing in flexion, extension,
lateral bending, rotation and compression
demonstrated exceptional bond strength
and durability
It is a …….. elastomer
The polymer is optimized for performance
in the spine, and extensive testing
demonstrated its superior biocompatibility,
biostability and biomechanical durability
The licensed material is protected through
……. Patent and know-how
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15 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC’s superior technology, regulatory approval to market in Europe and imminent FDA approval
makes it a far attractive investment prospect as compared to other transactions in the industry
Precedent Transactions in the Lumbar & Cervical Spine Market:
Source: Aranca Analysis; *Received FDA approval in 2010; #Urgent Medical Device Recall announced in 2013; **……………
CE Marking in Europe for Lumbar and Cervical TDR
FDA IDE approval for U.S. pivotal study (Lumbar)
FDA PMA approval expected in ….
Next Generation XYZ technology for
Lumbar and Cervical TDR
Target Buyer Year Technology Market Status Value (USD Mn)
2011 …… …… …… Data removed to preserve client
confidentiality
2004 ……
IDE trials not started*# ;2
years from filing PMA with
FDA for US approval
…… Data removed to preserve client
confidentiality
2003 …… IDE trials underway for
Lumbar** ……
Data removed to preserve client
confidentiality
2011 …… - …… Data removed to preserve client
confidentiality
2003 …… FDA approval received in
2003 ……
Data removed to preserve client
confidentiality
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16 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Low Median High
Forward Revenue 2-Year CAGR (%)* 1.5 278.4
FY+2 EBITDA Margin (%) (0.2) 45.9
FY+2 EBIT Margin (%) (14.7) 38.0
FY Debt to Equity (x) 0.1 0.6
FY Return on Asset (%) (9.4) 19.5
FY Return on Equity (%) (68.1) 19.6
6.0
ABC is expected to see strong revenue growth, with higher operating margins and return on capital
as compared to its closest peers
ABC: Financial Benchmarking
Medtronic, Inc. NuVasive, Inc. Orthofix International N.V. Stryker Corporation
…….. …….. …….. ……..
…….. …….. …….. ……..
Source: Capital-IQ; *Forward 2-year revenue CAGR for ABC is ……………
23.5
12.5
0.3
0.04
3.1
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Investor Presentation l ABC LLC l Confidential l 2016
ABC: Company Positioning 03
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Investor Presentation l ABC LLC l Confidential l 2016
ABC is a US-based medical devices company that has developed a next-generation total disc
replacement technology designed to replicate the natural biomechanics of the human spine
ABC: Company Background
Source: ……………
XYZ Cervical Disc (....): It is an intervertebral disc prosthesis
for the cervical spine used to treat chronic back neck pain due
to a spinal disc damage
XYZ Lumbar Disc (....): It is intended to treat single-level
lumbar disc disease as it replicates the biomechanics of the
lumbar disc thereby enabling 3-dimensional motion
Business
Overview
Products
Incorporated in …., Ohio, ABC is involved in developing next generation solutions for degenerative disc disease (DDD). The
company’s flagship platform, XYZ, is a next generation total disc replacement technology designed to replicate the natural
biomechanics of the human spine
Manufacturing
Has established a fully validated internal manufacturing facility having ISO …….certification
Relies on qualified third party to manufacture components and ………….
Modular design of the manufacturing facility enables significant expansion, relocation or duplication of products
Post assembly operations such as packaging, labeling and sterilization are carried out by third parties
Geographic
Presence
European Union
………
United States
………
Patents Has strong intellectual property credentials with ……………….
Rest of the World
……..
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19 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
The company has an impressive growth story with CE mark approval in Europe and an expected
FDA approval in the near future for its products
ABC: Company History
Source: ……………
…..
Established in
Cleveland, Ohio
….
Received ISO …. certification for in-house manufacturing
Initiated .... pivotal study in EU
Received FDA IDE approval for .... pivotal study
…..
Attained CE Mark
approval for marketing
....
….
Published favorable results from European post
market assessment study on ....
…..
Attained CE marking for
marketing ....
….
Commenced post-market
European pilot clinical study for ....
….
Initiation of FDA IDE
application for ....
following the post-market
study in the EU
….
Expected completion of
post market EU clinical
study in ....
Plan to commence
……for China
Expected FDA approval for
.... following the IDE study
…..
Expected FDA
approval for ....
…..
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20 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
XYZ is a next
generation
technology in the
total disc
replacement
space which
works in
conjunction with
the adjacent
anatomy and
replicates the bio-
mechanics of a
natural human
disc
ABC’s flagship technology, XYZ ……………has the ability to reproduce normal spinal function
ABC: XYZ Total Disc Replacement Technology
Source: …………
To stabilize the spinal unit in …….
To provide viscoelasticity to ……
To correct spine alignment, …….
To re-establish natural resistance to loading and flexibility
while creating stability within the functional spinal unit
(FSU)……..
To absorb and release load as ……….
To provide a differentiated elastomeric design that eliminates
the necessity for ………
Restores disc angle, height, lordotic curve and
center of rotation
Displays extensive biomechanical and
biocompatibility characteristics
Reproducible surgical procedure requiring
limited number of instruments
Requires no bone-milling or excess sculpting
of the intervertebral body endplates to implant
the device
Made from exclusive proprietary polymeric
material ….. which is optimized for
performance in the spine
Features Objectives
Unique anatomically optimized design which
replicates the human disc’s quantity and
quality of motion
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21 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
XYZ technology’s modular design, enables the ............ mimic functions of a human disc
ABC: XYZ - Modular Design
Source: ……………
…… Facilitates in retaining the position of the plates with the help of incumbent apertures. The bone interface side of each end cap
has a small fin to facilitate device placement
Rails for …..
The rails are present on the bone interface of the end cap to provides short term device fixation while the bead coated titanium
endplates provide long term fixation on the bone interface
The retaining plates are bonded to the polymer core, allowing for load transfer to the polymer which subsequently controls
device performance and therefore segmental function
……… The ……..
…….
…… It is ABC’s proprietary trademarked technique used to bind the polymer to the metal components
………..
Stress shielding
design features
The product’s design helps endure static and dynamic mechanical testing conditions under both physiologic and supra-
physiologic loads characterizing the strength and durability of the technology
Biocompatibility tests show no evidence of cell lysis, toxicity, delayed dermal contact sensitization, or systemic toxicity and the
device is non-pyrogenic, non-irritant and not genotoxic
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22 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
.... is an intervertebral disc prosthesis for the cervical
spine used to treat chronic neck pain caused by
spinal disc damage in the cervical region
.... is intended to treat single-level lumbar disc
disease L3 to S1 by replacing symptomatic lumbar
degenerative disc at L3/L4 through to L5/S1
ABC’s XYZ technology will help patients with lower back and neck pain by replacing ………..
XYZ products
Source: ……………
Closely mimics the kinematics of the human cervical spine segment by
providing appropriate motion and stability under physiological loads
The unique titanium endplates are asymmetric to accommodate
anatomic differences in rostral and caudal endplates
The core chamber allows polymer movement into an aperture when the
disk is compressed and results in reduced stress in the polymer core
It is a more effective alternative to fusion as it enables 3-D motion
thereby replicating the biomechanics of the human lumbar disc
It restores the center of rotation and lordotic curve
Its design facilitates the polymer to expand radially along the polymer
annulus into the chamber formed by the end cap and the retaining plate;
limited by the metal interface to control stiffness of the disc
Fe
atu
res
C
urr
en
t S
tatu
s
The .... has been proven to be clinically effective in a 50 patient EU study
It is the first elastomeric technology to complete a multi-center study in
the EU and receive US IDE approval for pivotal study
It currently has limited sales in the EU and expects the FDA approval by
2016/17
Pro
du
cts
It received CE Mark approval for .... in May 2012 and has limited
commercialization
The company believes the test results from ongoing .... FDA study will
provide excellent data support and a proven regulatory pathway for an
efficient IDE process for the ....
It is currently in the development phase in the US and expects the FDA
approval by 2017/18
XYZ Lumbar Disc XYZ Cervical Disc
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23 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
The products have passed biomechanical tests demonstrating significant strength, durability,
stiffness and range of motion
Product Load Testing
Source: ……………
Test XYZ Lumbar Disc XYZ Cervical Disc
Resistance to walking cycles ..years ..years
Resistance to simulated significant bends ..years ..years
Deformity caused by prolonged testing ..mm in 50 years ..mm in 50 years
Endurance to compressive load compared to human disc .. Times .. Times
Survival against fatigue cycles .. years (.. mn cycles) .. years (.. mn cycles)
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24 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
.... and .... display superior strength and durability along with enhanced range of motion compared to
that of a healthy human disc
Results from Stress Test
Source: …………..
Flexion/ Extension
Lateral Bending
Rotation
Axial Compressive
Strength (N)
3,000 4,000
20,000
6,000
20,000
8° to 13° …………… …………… ……………
±6° ±6° …………… ……………
±3° …………… 1° to 14° ……………
Human XYZ Human XYZ
Lumbar Disc Cervical Disc
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25 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC’s Intellectual Property includes a comprehensive patent portfolio, exclusive rights to the
proprietary polymer family and key manufacturing innovations
US Patent Timeline
Source: …………..
Patent number: …
Filed: …
Issued: …
A patent on the Artificial Disc
used in correcting the spinal
column
Patent number: …
Filed: …
Issued: …
A patent on the Artificial Disc
used in correcting the spinal
column
Patent number: …
Filed: …
Issued: …
Protects the apparatus for
replacing a damaged spinal
disc in a spinal column
includes an artificial disc
Patent number: …
Filed: …
Issued: …
A patent on the Artificial Disc
used in correcting the spinal
column
Patent number: …
Filed: …
Issued: …
Patent protecting the methods
and apparatus for replacing a
damaged spinal disc
Patent number: …
Filed: …
Issued: …
Protects the apparatus for
replacing a damaged spinal
disc in a spinal column
includes an artificial disc
Patent number: …
Filed: …
Issued: …
Patent on the method used for
replacing the damaged spinal
disc between first and second
vertebrae of a spinal column
Patent number: …
Filed: …
Issued: …
Patent protecting the methods
and apparatus for replacing a
damaged spinal disc
.. 2006 .. 2009 … 2013
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26 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC plans to expand its geographical reach, while enforcing competitive barriers, optimizing its R&D
capabilities and cost minimization
Source: …………..
Geography
ABC …….
It also plans to venture into ………
It is aggressively pursuing markets in …..
“Expanding geographical footprint”
Manufacturing Base
ABC’s manufacturing function is …….with only the
……… process executed in the in-house facility
The …….
“Significant cost advantage”
Patents
ABC’s …….
“Significant Competitive Barriers”
Research & Development
It utilizes dedicated surgeon and clinical …….
“Optimized R&D process”
ABC:
Corporate
Strategy
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27 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Market Attractiveness:
Lumbar and Cervical TDR Devices 04
28 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Population in the age group 45-64 is most prone to low back pain and neck pain which are the initial
symptoms of Degenerative Disc Disease
US: Population with Low Back Pain by Age (2012) US: Population with Neck Pain by Age (%)
Source: US Centers for Disease Control and Prevention
19.1%
25.8%
31.6%
33.1%
29.9%
31.1%
18-24 25-44 45-54 55-64 65-74 >75
6.5
13.1
19.1
17.4
14.5 13.7
18-24 25-44 45-54 55-64 65-74 >75
29 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
An aging population and higher per capita income in the older age groups would increase
healthcare spending
US: Income per Capita by Age (USD 000’s) US: Population by Age
7.9 8.9 11.9 13.2 13.6 15.6
20 23 31 33 35 38.1
26 31
39 44
47.4 50.8
27.5
33.9
42.8
47.8 49.1
53.5
22.7
28.7
35.9
43.3
46.6
49.6
15
17.6
21.6
25.7
30.2
33.9
1990 1995 2000 2005 2010 2013
15-24 25-34 35-44 45-54 55-64 >65
21.70% 21.90% 21.30% 20.50% 19.80% 19.50% 19.40% 19.10%
14.80% 13.90% 14.00% 14.40% 14.10% 13.90% 13.60% 13.00%
17.20% 15.80% 14.20% 13.40% 13.40% 13.50% 13.60% 13.60%
15.20% 16.00% 16.00%
14.70% 13.30% 12.80% 12.70% 12.70%
10.10% 11.80% 13.40% 14.40%
14.50% 13.90% 13.40% 12.20%
8.50% 8.10% 8.60% 10.30% 11.80% 12.40% 12.70%
12.80%
12.50% 12.60% 12.40% 12.30% 13.10% 14.00% 14.70% 16.60%
1990 1995 2000 2005 2010 2013 2015 2020
0-14 15-24 25-34 35-44 45-54 55-64 >65
Aging Population (>45 years)
Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements
30 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
US Healthcare expenditure per capita has increased at a CAGR of 3.3% over 2010-14; health
insurance is replacing out of the pocket health expenditures
US: Healthcare Expenditure Per Capita (USD) US: Health Consumptions Expenditure by Source of Funds
8,269
8,524
8,790
8,988
9,403
2010 2011 2012 2013 2014
12.20% 12.20% 12.00% 11.90% 11.50%
35.20% 35.40% 35.30% 34.80% 34.40%
21.20% 21.40% 21.50% 21.50% 21.50%
16.20% 16.00% 15.90%
16.40% 17.20%
3.90% 3.90% 3.90% 3.90% 3.90%
11.30% 11.10% 11.30% 11.50% 11.50%
2010 2011 2012 2013 2014
Out of pocket Private Health Insurance Medicare
Medicaid Other Insurance Programs Other Third-Party Payers
Source: World Bank, Centers for Medicare and Medicaid Services
CAGR: 3.3%
Health
Insurance
31 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Insurance penetration has increased over the years; uninsured rate remains lowest in under 18 and
above 44 age group
US: Insurance Penetration US: Uninsured Rate by Age (as of March 2014)
10.8
11.0
11.2
10.8
11.0
2010 2011 2012 2013 2014
6.6%
18.9%
24.9%
20.3%
14.0%
0.9%
Under 18 18-24 25-34 35-44 45-64 >65
Source: Organization for Economic Co-operation and Development; Centers for Disease Control and Prevention;
32 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Obamacare has resulted in considerable decrease in uninsured rate in 2014-16; growth in premiums
remained moderate contrary to expectations of a sharp increase
US: Uninsured Rate US: Average Annual Employer Premiums (USD 000’)
16.9% 17.3%
13.8%
11.7%
10.8%
2012 2013 2014 2015 2016*
5.4 5.6 5.9 6.1 6.3
15.1 15.7
16.4 16.8
17.5
2011 2012 2013 2014 2015
Single Coverage Family Coverage
*Note: 2016 figures are update till 31 July 2016
Source: Gallup Well-being Index July 2016, Kaiser/HRT Survey of Employer Sponsored Health Benefits
33 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
EU Healthcare expenditure per capita has increased at a CAGR of 2.5% over 2010-14; an aging
population would further augment the healthcare spending
EU: Healthcare Expenditure Per Capita, PPP (USD) Europe: Population by Age
3,701
3,815
3,848
3,890
4,007
2010 2011 2012 2013 2014
20.50% 19.30% 17.60% 15.90% 15.40%
15.60% 15.70% 16.00%
14.6% 14.0%
13.9% 13.9% 12.8% 11.7% 11.1% 10.3%
15.50% 15.00%
14.50% 14.20%
14.20% 14.30% 14.20% 13.10%
14.10% 15.00% 15.20%
15.00% 14.30% 14.20%
14.10% 14.20%
11.70% 11.70% 13.50%
14.30% 14.70% 14.50% 14.40%
13.90%
10.90% 11.00% 10.60% 10.70% 12.20% 12.80% 13.10% 13.60%
12.70% 13.90% 14.70% 15.90% 16.30% 16.90% 17.30% 18.90%
1990 1995 2000 2005 2010 2013 2015 2020
0-14 15-24 25-34 35-44 45-54 55-64 >65
Aging Population (>45 years)
Source: World Bank, UN Department of Economic and Social Affairs
CAGR: 2.5%
34 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Gross premium written for life insurance is growing at a faster pace compared to total gross premium
written in Europe
Europe: Total Gross Premium Written (USD Bn) Europe: Life Insurance Premium Written (USD Bn)
1,211
1,259
1,304
1,339
2012 2013 2014 2015
717
757
799
818
2012 2013 2014 2015
Source: Insurance Europe, August 2015,2016
CAGR: 3.3% CAGR: 4.4%
35 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Spine Implant market is currently dominated by fusion procedures which account for more than
50% of the market; motion preservation market is relatively small owing to the limited adoption of
first-generation TDR
Global Spine Implant Market: Sales By Segment
Source: LDR Holdings Company Filings
5%
26%
16%
14%
39%
Motion Preservation
Traditional Thoracolumbar Fusion
Traditional Interbody Fusion
Traditional Cervical Fusion
Other
Potential Market for Motion Preservation Procedures
Thoracolumbar fusion is performed on the low back region for reasons such
as instability of the spine, fracture, degenerative disc disease, or stabilization
for tumors with an objective to stabilize the spine so that pain or deformity is
reduced
Interbody fusion includes removal of the intervertebral and replacing it with a
bone (or metal) spacer using the anterior or posterior approach
Motion Preservation includes cervical and lumbar disc replacement, dynamic
stabilization, etc. used for the treatment of pain and loss of function caused
by specific back problems, such as degenerative disc disease, etc.
Cervical fusion is performed on the back of the neck region for reasons such
as instability of the spine, fracture, degenerative disc disease, or stabilization
for tumors with an objective to stabilize the spine so that pain or deformity is
reduced
36 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Eligibility of Lumbar TDR procedures is expected to increase, led by higher adoption by physicians
and positive clinical data proving the benefits of TDR over Fusion
US Lumbar Target Procedures* (000’) US: Eligible Procedures (000’) US: Lumbar Market Penetration (000’)
Source: Management Reports; *Includes Fusion, TDR, PDSS, NR
2016 65%
2015 52%
2014 41%
2013 37%
2012 34% 289
297
306
315
325
127
175
254
268
286
43
66
105
139
186
US: CAGR 3.0% US: CAGR 22.5% US: CAGR 44.2% Market
Penetration
37 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Eligibility Cervical TDR procedures is expected to increase, led by higher adoption by physicians and
positive clinical data proving the benefits of TDR over Fusion
US Cervical Target Procedures (000’) US: Eligible Procedures (000’) US: Cervical Market Penetration (000’)
2016 48%
2015 63%
2014 73%
2013 76%
2012 77% 239
246
254
261
269
172
197
208
217
242
83
124
156
165
186
US: CAGR 3.0% US: CAGR 8.9% US: CAGR 22.4% Market
Penetration
Source: Management Reports; *anterior cervical fusion
38 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
More than 0.27Mn Lumbar and 0.23 Mn Cervical discs would be required for single and multi-level
TDR procedures by 2016
US: Segmentation of Total Lumbar Discs (000’s) US: Segmentation of Total Cervical Discs (000’s)
29 43 68
90 121
19
30
48
64
85
14
24
38
50
67
62
96
154
204
273
2012 2013 2014 2015 2016
One-level Two-level* Three-level*
63
95 120 126
143 38
58
73 77
87
102
153
192 203
230
2012 2013 2014 2015 2016
One-level Two-level*
Source: Management Reports; *Includes total number of discs required in…
39 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
US Lumbar and Cervical TDR market is forecasted to reach USD3.6bn and USD1.4bn, respectively
by 2016; Europe Lumbar and Cervical TDR market is currently around one-fifth of US market
US & Europe: Total Lumbar TDR Market Size (USD Mn) US & Europe: Total Cervical TDR Market Size (USD Mn)
717
1,156
1,897
2,592
3,576
235 329
392 450
516
2012 2013 2014 2015 2016
US Europe
546
844
1,093
1,189
1,386
172 197
220 242 262
2012 2013 2014 2015 2016
US Europe
US: CAGR 49.4%
Europe: CAGR 21.8%
US: CAGR 26.2%
Europe: CAGR 11.0%
Source: Management Reports
40 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Top 2 companies account for around 50% of the market share of the Spine Implant market; majority
of the companies are currently focused on fusion technologies
Global Spine Market: Companies by Market Share (2013) Global Spine Market: Industry Landscape
Source: LDR Holdings Company Filings; Capital-IQ
33.5%
20.8% 7.5%
6.7%
4.7%
3.2%
2.2%
2.2%
1.7%
1.2%
16.3%
Medtronic
Depuy/Synthes
NuVasive
Stryker
Globus Medical
Orthofix/Blackstone
Alphatec
Zimmer
K2M
LDR Holdings
Others
Fusion
First Generation
TDR
Competing Next
Generation TDR
41 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC: Principal Risk Factors 05
42 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC’s superior technology and positive economic data from its ongoing clinical study is expected to
help mitigate the industry risks
Key Risks
Source: ……………
Re-imbursement Risk
Regulatory Risk
Technology Risk
Risk: If reimbursement from third-party payers for lumbar and cervical TDR declines significantly; surgeons, hospitals and other
healthcare providers may be reluctant to use TDR products which can adversely affect sales
Mitigation: Economic data generated from the .... IDE study will be used to expedite national coverage for .... as a viable
standard of care for DDD. This economic data will support .... reimbursement in advance of market launch
Risk: The safety and efficacy of some of the first generation products are not yet supported by long-term clinical data, which
could limit sales, and might therefore prove to be less effective than initially estimated
Mitigation: ABC has enrolled more than 400 patients and expects to complete .... Pivotal Clinical Study enrollment in the near
term, which will place the company on track to receive FDA approval by 2016-17 and prove the safety and efficacy of the
products. ABC will expedite similar process for .....
Risk: The spine industry is intensely competitive, subject to rapid change and highly sensitive to the introduction of new products
or technology by industry participants..
Mitigation: ABC superior technology is already accepted in Europe. Availability of .... in Europe since … has increased
awareness of ABC’s clinical approach to TDRs. As a result, the company remains far ahead of its competitors
Pricing Risk
Risk: The increase in physician-owned distributorships could result in pricing pressure on ABC’s XYZ product or harm the ability
to sell products to physicians who own or are affiliated with those distributorships
Mitigation: Adoption of XYZ is expected to increase as first generation TDR devices are introduced in the market and positive
clinical data showing the benefits of TDR over fusion. .... and .... TDR would see higher sales due to its superior technology,
resulting in higher adoption among surgeons
sanitized data to maintain client confidentiality
43 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Comparable Analysis and
Equity Market Performance 06
44 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
AxioMed’s peers are trading at mean Price to Sales multiple of 3.5x, EV/EBITDA multiple of 15.3x
and EV/Sales multiple of 3.0x
Trading Comparables
Source: Capital-IQ
Company Country of
Listing
Stock
Price
(USD)
52 Week
High/ Low
(USD)
Market
Cap
(USD Mn)
Enterprise
Value
(USD Mn)
P/Sales EV/EBITDA EV/Sales
LTM FY+1 FY+2 LTM FY+1 FY+2 LTM FY+1 FY+2
…. US …. …. …. …. 0.7x 0.7x 0.6x 10.5x 7.3x 6.3x 1.1x 1.1x 1.0x
…. US …. …. …. …. 4.7x 4.6x 4.2x 11.5x 11.3x 10.5x 4.0x 4.0x 3.6x
…. US …. …. …. …. 3.5x 3.3x 2.9x NM NM NM 3.4x 3.2x 2.8x
…. US …. …. …. …. 6.9x 6.7x 5.8x NM NM NM 6.5x 6.3x 5.4x
…. France …. …. …. …. 3.3x 3.2x 3.0x 31.1x 23.7x 20.4x 3.4x 3.3x 3.1x
…. US …. …. …. …. 4.0x 3.8x 3.6x 11.8x 10.1x 9.0x 3.9x 3.7x 3.5x
…. US …. …. …. …. 2.7x 2.7x 2.5x 18.7x 12.6x 11.1x 2.8x 2.8x 2.6x
…. US …. …. …. …. 1.3x 1.3x 1.3x 9.8x 8.5x 7.9x 1.3x 1.3x 1.3x
…. US …. …. …. …. 3.5x 3.4x 3.3x 18.6x 12.4x 11.7x 3.4x 3.4x 3.2x
…. US …. …. …. …. 4.0x 4.0x 3.9x 10.6x 10.4x 8.4x 4.0x 4.0x 3.9x
Mean 3.5x 3.4x 3.1x 15.3x 12.0x 10.7x 3.4x 3.3x 3.0x
Median 3.5x 3.4x 3.2x 11.7x 10.8x 9.7x 3.4x 3.3x 3.1x
Max 6.9x 6.7x 5.8x 31.1x 23.7x 20.4x 6.5x 6.3x 5.4x
Min 0.7x 0.7x 0.6x 9.8x 7.3x 6.3x 1.1x 1.1x 1.0x
sanitized data to maintain client confidentiality
45 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Returns from S&P Healthcare Equipment index has outperformed the S&P500 index in the last five
years; Europe’s MSCI Healthcare Equipment index has registered 3x returns compared to MSCI
Europe index in last five years
US & Europe: Equity Market Performance*
Index Returns Last 3-months Last 6-months LTM 3-Year 5-Year
S&P500 Healthcare Equipment index -1% 8% 7% 7% 123%
S&P500 index 2% 7% 10% 180% 84%
MSCI Europe Healthcare Equipment index 4% 6% 4% -52% 100%
MSCI Europe index 4% 4% -5% -85% 50%
Source: Bloomberg; rebased
0
50
100
150
200
250
2011 2012 2013 2014 2015 2016
S&P500 Healthcare
Equipment index
MSCI Europe index
S&P500 index
MSCI Europe Healthcare
Equipment index
46 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
US Healthcare Equipment market remains highly undervalued whereas Europe Healthcare
Equipment Market is overvalued
Average Values Last 3-months Last 6-months LTM 3-Year 5-Year
S&P500 Healthcare Equipment index 0.89 0.88 0.86 0.76 0.69
S&P500 index 2.08 2.08 2.04 1.86 1.80
MSCI Europe Healthcare Equipment index 2.39 2.35 2.23 1.99 1.88
MSCI Europe index 1.42 1.42 1.40 1.30 1.32
S&P500 Healthcare
Equipment index
MSCI Europe index
S&P500 index
MSCI Europe Healthcare
Equipment index
Source: Bloomberg
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
2011 2012 2013 2014 2015 2016
US US & Europe: Equity Market Valuation (EV/ Sales)
47 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
ABC: Financial Projections
& Valuation 07
48 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Valuation Summary
ABC: Football Field Analysis
Summary:
Using DCF valuation methodology, ABC will have a base equity value of USD….. The estimated WACC of …% and terminal growth rate of …% from 2026
have been assumed to arrive at the base equity value. By increasing the terminal value to ..%, the equity value will increase to USD….
Based on a conservative ..% premium to trading and precedent transaction comparables, the relative valuation for ABC will be USD…. and USD…..,
respectively
Based on a optimistic …% premium to trading and precedent transaction comparables, the relative valuation for ABC will be USD…. and USD….., respectively
DCF
Trading Comparables
Precedent Transaction Comparables
(USD Mn)
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49 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
DCF Valuation
ABC: DCF Valuation
(All values in USD Mn, unless
stated otherwise) 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Terminal
value
Net operating profit adjusted for taxes …. …. …. …. …. …. …. …. …. …. …. ….
Depreciation & amortization …. …. …. …. …. …. …. …. …. …. …. ….
Changes in working capital …. …. …. …. …. …. …. …. …. …. …. ….
Capital expenditure …. …. …. …. …. …. …. …. …. …. …. ….
Free cash flow …. …. …. …. …. …. …. …. …. …. …. …. ….
PV of free cash flows …. …. …. …. …. …. …. …. …. …. …. …. ….
WACC ….
Total firm value ….
Less: Debt ….
Add: Cash and cash equivalent ….
Equity value ….
sanitized data to maintain client confidentiality
50 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Trading Comparables
ABC: Peer Companies
Company name Country
Mcap
(USD Mn)
Enterprise
Value
(USD Mn)
EV/Sales EV/EBITDA
LTM 2016E 2017E LTM 2016E 2017E
…. US …. …. 3.9 3.7 3.5 11.8 10.1 9.0
…. US …. …. 2.8 2.8 2.6 18.7 12.6 11.1
…. US …. …. 1.3 1.3 1.3 9.8 8.5 7.9
…. US …. …. 3.4 3.4 3.2 18.6 12.4 11.7
…. US …. …. 4.0 4.0 3.9 10.6 10.4 8.4
…. France …. …. 3.4 3.3 3.1 31.1 23.7 20.4
…. US …. …. 4.0 4.0 3.6 11.5 11.3 10.5
…. US …. …. 6.5 6.3 5.4 NM NM NM
…. US …. …. 1.1 1.1 1.0 10.5 7.3 6.3
…. US …. …. 3.4 3.2 2.8 NM NM NM
Mean 3.4 3.3 3.0 15.3 12.0 10.7
Max 6.5 6.3 5.4 31.1 23.7 20.4
Min 1.1 1.1 1.0 9.8 7.3 6.3
(All values in USD Mn,
unless stated otherwise) Base case Bull case
Peer EV/Sales …. ….
Premium attributed …. ….
Target EV/Sales …. ….
ABC Sales (2020E) …. ….
ABC Enterprise Value …. ….
Less: Debt …. ….
Add: Cash …. ….
Equity value …. ….
sanitized data to maintain client confidentiality
51 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Precedent Transactions Comparables
ABC: Precedent Transactions
(All values in USD Mn,
unless stated otherwise) Base case Bull case
Peer EV/Sales …. ….
Premium attributed …. ….
Target EV/Sales …. ….
ABC Sales (2020E) …. ….
ABC Enterprise Value …. ….
Less: Debt …. ….
Add: Cash …. ….
Equity value …. ….
Announced Target Buyer
Transaction value
(USD Mn) Implied EV (USD Mn)
Implied EV/
Sales (x)
Implied EV/
EBITDA (x)
Transactions related to lumbar and cervical disc
… …. …. …. …. …. ….
… …. …. …. …. …. ….
Other transactions related to spine
16-May-11 …. Stryker Corporation 331.1 307.9 3.3 107.4
… …. …. …. …. …. ….
… …. …. …. …. …. ….
… …. …. …. …. …. ….
… …. …. …. …. …. ….
… …. …. …. …. …. ….
Mean …. ….
Min …. ….
Max …. ….
sanitized data to maintain client confidentiality
52 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Assumptions
ABC: Valuation Summary
Income Statement:
We estimate number of units sold to increase at about …. yoy during 2017-2019E. We have modelled number of surgeon to increase at …. between 2016E to
2019E and have moderated the growth rate thereafter
We have used average price of … for Lumbar Disc and … for Cervical disc for rest of 2014 and have modelled it to grow by … yoy
We expect price for .... and .... be at premium in US compared to Europe
We have assumed ….surgeons in 2017E and have modelled it to grow between …. during 2018-2021E. We assume Lumbar disc sell to start in ….and
Cervical disc sell to start in …..
We have assumed per unit cost for .... and .... at ….. and ……..respectively and have increased the cost by … yoy from 2016E
We expect ABC SG&A as % of sales to be lower than peers due to its outsourcing model. We assume ABC SG&A as % of sales to be around …
Balance Sheet:
We have taken working capital ratios (Receivable Turnover Ratio, Inventory Turnover Ratio, Prepaid expenses and Accounts Payable ratio) in line with peers
We have taken capex as % sales at around … during 2015E to 2018E in line with the peer’s average
We model depreciation and amortization as percentage of gross fixed assets and intangibles at … during 2015-2019E, close to peers average of 13.9%
We have assumed ABC to be debt free during the forecast horizon
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53 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Profit & Loss Account
ABC: Financial Statements (1/3)
(All values in USD Mn) 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Revenues …. …. …. …. …. …. …. …. …. …. …. ….
COGS …. …. …. …. …. …. …. …. …. …. …. ….
Gross profit …. …. …. …. …. …. …. …. …. …. …. ….
R&D …. …. …. …. …. …. …. …. …. …. …. ….
SG&A …. …. …. …. …. …. …. …. …. …. …. ….
EBITDA …. …. …. …. …. …. …. …. …. …. …. ….
Depreciation and Amortisation …. …. …. …. …. …. …. …. …. …. …. ….
EBIT …. …. …. …. …. …. …. …. …. …. …. ….
Interest expense …. …. …. …. …. …. …. …. …. …. …. ….
Income tax expense …. …. …. …. …. …. …. …. …. …. …. ….
Effective tax rate …. …. …. …. …. …. …. …. …. …. …. ….
PAT …. …. …. …. …. …. …. …. …. …. …. ….
sanitized data to maintain client confidentiality
54 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Balance Sheet
ABC: Financial Statements (2/3)
(All values in USD Mn) 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Fixed asset, net …. …. …. …. …. …. …. …. …. …. …. ….
Intangibles …. …. …. …. …. …. …. …. …. …. …. ….
Cash …. …. …. …. …. …. …. …. …. …. …. ….
Receivable …. …. …. …. …. …. …. …. …. …. …. ….
Inventory …. …. …. …. …. …. …. …. …. …. …. ….
Prepaid expenses …. …. …. …. …. …. …. …. …. …. …. ….
Total current assets …. …. …. …. …. …. …. …. …. …. …. ….
Total assets …. …. …. …. …. …. …. …. …. …. …. ….
Accounts payable …. …. …. …. …. …. …. …. …. …. …. ….
Long term debt …. …. …. …. …. …. …. …. …. …. …. ….
Share Capital …. …. …. …. …. …. …. …. …. …. …. ….
Retained earrings …. …. …. …. …. …. …. …. …. …. …. ….
Shareholders equity …. …. …. …. …. …. …. …. …. …. …. ….
Total liabilities and Equity …. …. …. …. …. …. …. …. …. …. …. ….
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55 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Cash Flow Statement
ABC: Financial Statements (3/3)
(All values in USD Mn) 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Net profit …. …. …. …. …. …. …. …. …. …. …. ….
Depreciation & Amortisation …. …. …. …. …. …. …. …. …. …. …. ….
Receivable …. …. …. …. …. …. …. …. …. …. …. ….
Inventory …. …. …. …. …. …. …. …. …. …. …. ….
Prepaid expenses …. …. …. …. …. …. …. …. …. …. …. ….
Accounts payable …. …. …. …. …. …. …. …. …. …. …. ….
Change in working capital …. …. …. …. …. …. …. …. …. …. …. ….
Cash flow from operations …. …. …. …. …. …. …. …. …. …. …. ….
Capital expenditure …. …. …. …. …. …. …. …. …. …. …. ….
Cash flow from investing …. …. …. …. …. …. …. …. …. …. …. ….
Proceeds from issue of share …. …. …. …. …. …. …. …. …. …. …. ….
Proceeds from raising debt …. …. …. …. …. …. …. …. …. …. …. ….
Cash flow from financing …. …. …. …. …. …. …. …. …. …. …. ….
Net change in cash …. …. …. …. …. …. …. …. …. …. …. ….
Beginning cash …. …. …. …. …. …. …. …. …. …. …. ….
Ending cash …. …. …. …. …. …. …. …. …. …. …. ….
sanitized data to maintain client confidentiality
56 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Key Performance Ratios
ABC: Financial Ratios
2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Gross margin …. …. …. …. …. …. …. …. …. …. …. ….
R&D as % of sales …. …. …. …. …. …. …. …. …. …. …. ….
SG&A as % of sales …. …. …. …. …. …. …. …. …. …. …. ….
EBITDA margin …. …. …. …. …. …. …. …. …. …. …. ….
EBIT margin …. …. …. …. …. …. …. …. …. …. …. ….
Net Margin …. …. …. …. …. …. …. …. …. …. …. ….
ROE …. …. …. …. …. …. …. …. …. …. …. ….
ROA …. …. …. …. …. …. …. …. …. …. …. ….
Debt/ Equity …. …. …. …. …. …. …. …. …. …. …. ….
Receivable turnover ratio …. …. …. …. …. …. …. …. …. …. …. ….
Inventory turnover ratio …. …. …. …. …. …. …. …. …. …. …. ….
sanitized data to maintain client confidentiality
57 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Appendix 08
58 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Peer Profiles (1/2)
Company Overview
Company Name Business Description Headquarters
Total
LTM Revenue
(USD Mn)
Alpha
Alpha is involved in design, development, manufacturing, and marketing of products for the surgical
treatment of spine disorders. Its product portfolio and pipeline addresses the cervical, thoracolumbar,
and intervertebral regions of the spine, as well as covers various spinal disorders and surgical
procedures.
…..
….. …..
Beta
Beta is engaged in design, development, and commercialization of musculoskeletal implants that
promote healing in patients with spine disorders.
…..
….. …..
Theta
Theta Group is involved in designing, developing, and commercializing proprietary complex spine
technologies and techniques in the United States and internationally.
…..
….. …..
Gamma
Gamma designs, manufactures, and markets surgical implants, devices, and instrumentation for the
treatment of spine disorders in the United States, France, and internationally.
…..
….. …..
Sigma
Sigma manufactures and distributes implants in France. It offers PASS range, a polyaxial spine
system; ……..
…..
….. …..
59 Pitch Book
Investor Presentation l ABC LLC l Confidential l 2016
Peer Profiles (2/2)
Company Overview
Company Name Business Description Headquarters
Total
LTM Revenue
(USD Mn)
Delta Delta, Inc. manufactures and sells device-based medical therapies worldwide.
…… ….. …..
Zeta
Zeta develops and markets minimally disruptive surgical products and procedurally integrated
solutions for the spine.
…….
….. …..
Eta
Eta designs, develops, manufactures, markets, and distributes medical devices used principally by
musculoskeletal medical specialists for spine and orthopaedic applications.
…..
….. …..
Mu
Mu provides orthopaedic reconstructive implants used in hip and knee joint replacements; and
trauma systems, as well as other related products.
……..
….. …..
Lambda
Lambda designs, develops, manufactures, and markets orthopedic reconstructive devices, spinal and
trauma devices, biologics, dental implants, and related surgical products in the Americas, Europe,
and the Asia Pacific.
………
….. …..
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