The Ortho Market Reflecting Back & Looking Ahead

2011-2025 June 14, 2017

Chicago, IL

Agenda 1. Market Overviews 2. Buzz at OMTEC 2011 3. Fast Forward to 2016 4. Buzz Prior to OMTEC 2017 5. Companies to Watch 6. Panel Discussion

1. Market Overview

Source: ORTHOWORLD estimates, 2017

Product Segment Performance: 2016 vs. 2015 ($Millions)

1. Market Overview (cont.)

Source: ORTHOWORLD estimates, 2017

1. Market Overview (cont.)

Orthopaedic Product Sales Projections: 2017 to 2021 ($Millions)

Orthopaedic Product Sales Trajectory 2015 to 2021 Projected ($Millions)

2. Buzz at OMTEC 2011… Healthcare Reform Slowdown in procedural volumes Uncertainties and delays at FDA Evolving hospital/surgeon/OEM relationship Looming 2.3% excise tax Reimbursement pressures Consolidation Mood: Somber

3. Fast Forward to 2016 ACA became law...with implications Procedural volumes , prices More predictable FDA Surgeon employees the norm Commoditization Device tax off-the-table More restrictive payer policies Mega-Deals Mood: Upbeat

4. Buzz Prior to OMTEC 2017 a) Value Based Healthcare b) Shift to Outpatient/ASC Settings c) Shifting Technological Emphasis d) Predictive Analytics e) 3D Printing

5. Potential “New” Companies To Watch Cardinal: Service experts seeking ortho

presence with lower-cost devices

Kaiser: Fully integrated system

Aetna: Lots of real-time data to quickly change delivery of care

Google, Apple: Ambition dependent

Philips, Samsung, IBM Watson: Partnership dependent

Panel Discussion

Scott Bruder

Founder and CEO

Bruder Consulting And Venture Group

Kyle Rose

Principal

Medical Technologies, Canaccord Genuity

Eric Lohrer

Partner

Loreda Holding

Don Urbanowicz

Principal

Urbanowicz Consulting, LLC

For more information, contact: Don Urbanowicz

Urbanowicz Consulting, LLC durbanowicz@du-llc.com

973.216.5292 www.urbanowiczconsulting.com

Thank You!