Q1 2018 Investor Presentation

Jon Sigurdsson, President & CEO

Sveinn Solvason, CFO

26 April 2018

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Q1 Highlights

Apr-18

Sales EBITDA Q1 Highlights

• 8% growth in USD

• 1% organic growth

• -3% EBITDA growth in USD

• EBITDA% 14% vs. 16% Q1 2017

• GPM 62% vs. 62% in Q1 2017

• Good contribution from high-end

products such as bionics in prosthetics

• Slow start of the year for B&S

• Strong comparable quarter and shifts in

sales days impacting growth

• Soft sales growth and additional

investments in R&D impacting

profitability

• FX impacting profitability negatively by

about 50 basis points

• New financing completed with ~20 bps

better interest margins

Note: Amounts are in USD and all growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated

USD million USD million

131 142

Q1 '17 Q1 '18

20 20

Q1 '17 Q1 '18

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Q1 Sales highlights by business segments

Apr-18

Sales contribution in USD million

Organic LCY USD

Growth

contribution+2% -1% +1% - +1% +7% +8%

Note: Bridge is an approximation for growth contribution and figures in bridge are rounded to million

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Q1 Sales highlights by geography

• High-end products contributing to

growth in prosthetics

• Soft quarter for B&S

• Own distribution companies growing

modestly

Apr-18

Note: Amounts are in USD and all growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated

Percentages next to charts refer to % of total sales

• Soft growth in most markets but high-

end products such as bionics and

Unloader performing well

• Growth in the EMEA region negatively

impacted by ~2%-points due to shifts in

sales days

• Strong growth in both prosthetics and

B&S

• All major regions performing well

• Excellent performance in China and

Australia

Americas

1% growthEMEA

-1% growth

APAC

19% growth

40%

57 million

52%

73 million

8%

11 million

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Profit & Loss Q1

Apr-18

Financial results

USD million Q1 '18 Q1 '17

Net Sales 142 131

LCY growth 1% 17%

Organic growth 1% 7%

Gross Profit 88 82

% of sales 62% 62%

EBITDA 20 20

% of sales 14% 16%

EBIT 14 15

% of sales 10% 11%

Share in net profit of

associated companies 1 0

Income tax 3 4

Effective tax rate 24% 26%

Net Profit 10 10

% of sales 7% 8%

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Q1 EBITDA bridge

Apr-18

Note: Operational expenses delta profitability impact refers to quarter-on-quarter changes and measured in LCY

All growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated

EBITDA margin bridge Item USD m Description

EBITDA Q1 ‘17 20.4

Δ GP +1.2• 1% organic sales growth

• Product mix

Δ S&M -1.6• 4% growth

• Investments in emerging markets

Δ R&D -0.6

• 9% growth

• Investments in R&D projects for

high-end products

Δ G&A -0.3 • 3% growth

FX +0.6• Negative ~50 bps impact from FX

on EBITDA margin (net of hedge)

EBITDA Q1 ‘18 19.8

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Status on efficiency initiatives

Apr-18

Initiative Description Completion Status Update on progress

Manufacturing and

distribution

• Simplify manufacturing and

distribution organization

• Further growth of the Mexico

operation

2020 On track

• Investments in equipment in Mexico

• Expect to finalize moving our

distribution from West Coast to

Mexico in Q3 2018

Strategic sourcing

• Volume concentration

• Best-practice evaluation

• Global sourcing

• Process improvement

• Vendor relationships

2020 On track

• Good progress made

• Currently working on several

categories

Costs in Q3 2018 and 2019 of USD ~12 million in total (special items)

Savings per year by end of year 2020 of USD ~10 million

Note: Össur announced efficiency initiatives in September 2017. For further information see company announcement no. 68/2017.

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Cash flow and other items

• NWC investments in the quarter expected to reverse

• CAPEX USD 8 million or 6% of sales

• NIBD is USD 146 million or 1.4x EBITDA (last 12 months)

Apr-18

Cash generated by operationsUSD million

10

23 23

34

6

7%

16% 16%

22%

4%

Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18

Cash generated by operations % of sales

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Guidance for 2018

Apr-18

Actual 2017 Guidance 2018

Sales growth

LCY8% 4-5%

Sales growth

Organic5% 4-5%

EBITDA margin

Before special items18% ~19%

CAPEX

% of sales3% ~4%

Tax

Effective tax rate25-26%* 23-24%

*The tax rate has been normalized for all the one-time benefits impacting the tax rate in Q1 2017. Reported effective tax rate amounted to 16%

in the FY 2017.

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Highlights

• Good contribution from high-end products such as Bionics in

Prosthetics

• Slow start of the year for B&S

• Strong comparable quarter and shifts in sales days impacting

growth

• Soft sales growth and additional investments in R&D impacting

profitability

• FX impacting profitability negatively by about 50 basis points

• New financing completed with ~20 bps better interest margins

Q&A

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Financial calendar and upcoming events & conferences

Apr-18

Further information

David Hreidarsson

Investor Relations Manager

e-mail: dohreidarsson@ossur.com

Tel: +354 515 1380

Össur press releases by e-mail

If you wish to receive Össur press releases by e-mail please register on our

website: www.ossur.com/investors.

Financial calendar

Interim Report Q2 2018 25 July 2018

Interim Report Q3 2018 24 October 2018

Interim Report Q4 2018 and Consolidated Financial

Statements for FY 20184 February 2019

Annual General Meeting 7 March 2019

Meet with us

Reykjavik (Q1 roadshow) 3 May 2018

Zürich (Q1 roadshow) 16 May 2018

Oslo (Q1 roadshow) 16 May 2018

Paris (Q1 roadshow) 17 May 2018

London (Q1 roadshow) 17 May 2018

Brussels (Q1 roadshow) 17 May 2018

Copenhagen (Q1 roadshow) 18 May 2018

Goldman Sachs 15th Annual European Medtech

and Healthcare Conference (UK)5-6 September 2018

Dansk Aktionærforening’s InvestorDagen (DK) 18 September 2018

12th HSBC Healthcare Day 2018 (GE) 12 November 2018

DNB Nordic-American Life Science Conference

(US:NY)29 November 2018

Danske Bank Winter Seminar (DK) 4-5 December 2018

© ÖSSUR. 25-Apr-18

Forward-looking statement

This presentation contains forward-looking statements, which reflect the Management’s current views with respect to certain future events and financial performance. Although the statements are based upon

estimates the Management believes to be reasonable, there is no assurance that these statements will be achieved.

Statements containing the financial outlook for 2018 and the following years naturally involve risks and uncertainties, and consequently actual results will differ, and may differ materially, from those projected or

implied in the forward-looking statements.

The risks and uncertainties may include unexpected developments in the international currency exchange and securities markets, financing, market driven price decreases for Össur’s products, delay or failure of

development products, production problems and unexpected cost increases, development of new technologies by competitors, the introduction of competing products within Össur’s core areas, exposure to product

liability and other lawsuits, changes in reimbursement rules and governmental laws.