Wright Medical

A global leader on an upward path

Investor Presentation
November 2, 2016

Cautionary Note Regarding Forward-Looking Statements

This presentation includes forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by the use of words such as anticipate, expect, intend, could, may, will, believe,
estimate, look forward, forecast, goal, target, project, continue, outlook, guidance, future, other words of similar meaning
and the use of future dates. Forward-looking statements in this presentation include, but are not limited to, statements about the
companys anticipated financial results for 2016, including net sales from continuing operations, adjusted EBITDA from continuing
operations and adjusted earnings per share from continuing operations; anticipated sales and cost synergies and dis-synergies and the
timing thereof; the companys expectations regarding the benefits of its merger with Tornier and integration efforts and progress; the
effects of the MSA and settlement agreement with the Three Settling Insurers and the amount and funding of the settlement amounts; and
the companys ability to achieve its key financial goals. Forward-looking statements by their nature address matters that are, to different
degrees, uncertain. Each forward-looking statement contained in this presentation is subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among
others, the failure to integrate the businesses and realize net sales synergies and cost savings from the merger with Tornier or delay in
realization thereof; operating costs and business disruption as a result of the merger, including adverse effects on employee retention and
sales force productivity and on business relationships with third parties; integration costs; actual or contingent liabilities; adverse effects of
diverting resources and attention to providing transition services to the purchaser of the large joints business; the adequacy of the
companys capital resources and need for additional financing; the timing of regulatory approvals and introduction of new products;
physician acceptance, endorsement, and use of new products; failure to achieve the anticipated benefits from approval of AUGMENT
Bone Graft; the effect of regulatory actions, changes in and adoption of reimbursement rates; product liability claims and product recalls;
pending and threatened litigation; risks associated with the MSA and settlement agreement with the Three Settling Insurers; risks
associated with international operations and expansion; fluctuations in foreign currency exchange rates; other business effects, including
the effects of industry, economic or political conditions outside of the companys control; reliance on independent distributors and sales
agencies; competitor activities; changes in tax and other legislation; and the risks identified under the heading Risk Factors in Wrights
Annual Report on Form 10-K for the year ended December 27, 2015 filed by Wright with the SEC on February 23, 2016 and Wrights
Quarterly Report on Form 10-Q for the quarter ended September 25, 2016 anticipated to be filed by Wright with the SEC on November 2,
2016. Investors should not place considerable reliance on the forward-looking statements contained in this presentation. Investors are
encouraged to read Wrights filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties.
The forward-looking statements in this presentation speak only as of the date of this presentation, and Wright undertakes no obligation to
update or revise any of these statements. Wrights business is subject to substantial risks and uncertainties, including those referenced
above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Note on Non-GAAP Financial Measures

Wright uses non-GAAP financial measures, including combined pro forma net sales, gross margin from
continuing operations, as adjusted, and EBITDA from continuing operations, as adjusted. Wrights
management team believes that the presentation of these measures provides useful information to investors
and that these measures may assist investors in evaluating the companys operations, period over period.
While pro forma data gives effect to the merger as if it had occurred on the first day of fiscal 2015 and
enhances comparability of financial information between periods, pro forma data is not indicative of the
results that actually would have been obtained had the merger occurred on the first day of 2015. EBITDA is
calculated by adding back to net income charges for interest, income taxes and depreciation and
amortization expenses. While it is not possible to reconcile the adjusted EBITDA forecast in this presentation
to the nearest metric under U.S. generally accepted accounting principles (GAAP) of the combined business
without unreasonable effort, the adjusted EBITDA forecast excludes non-cash stock based compensation
expense and non-operating income and expense, as well as the expected impact of such items as inventory
step-up amortization, charges associated with product rationalization initiatives, transaction and transition
costs, all of which may be highly variable, difficult to predict and of a size that could have substantial impact
on the combined companys reported results of operations for a period. Investors should consider these nonGAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial
performance prepared in accordance with GAAP. Reconciliations of the non-GAAP financial measures used
in this presentation to most comparable GAAP measures can be found on our website.

The New Wright Medical:

Global Leader in Extremities/Biologics

~$8B

Global
extremities/biologics
market

~2X
Wright Medical growth
rate vs. the market

#1
Wright Medical
position in
extremities
market
4

The New Wright Medical: Premier

Extremities/Biologics Company
Merger closed on Oct 1, 2015

Further accelerates growth opportunities

in three of the fastest growing areas in
orthopaedics
Comprehensive upper & lower extremities
product portfolio with broad global reach
Significant scale and scope to provide
accelerated path to profitability and
stronger financial profile

Merger provides added scale and scope

for accelerated pathway to profitability
Upper Extremities
Lower Extremities

3% 7%

Biologics

21%

Sports Med & Other

Legacy
Wright
2015 Sales
$332M

Upper Extremities
Lower Extremities

4%
12%
69%

Biologics

Pro Forma*
2015 Cont.
Ops. Sales
$615M

Other

5% 1%
13%

Upper Extremities
Lower Extremities
Biologics

Legacy
Tornier
Pro Forma*
2015 Cont.
Ops. Sales
$283M

41%

43%
81%

* Pro forma gives effect to the Wright/Tornier merger as if it had occurred on the first day of fiscal
2015. Pro forma adjustments include the reduction of Torniers sales to remove from Lower
Extremities revenue the U.S. sales associated with Torniers Salto Talaris and Salto XT ankle
replacement products and Torniers silastic toe replacement products, and adjustments within
Tornier product lines to conform product line revenue reporting. Additionally, as a result of the
divestiture of the large joints (hip/knee) business from Wright, this revenue is now reported as
discontinued operations.

Sports Med & Other

Merger integration: Continued strong progress, significantly de-risked

Global sales force integration completed ahead of schedule!
Cost synergies have materialized earlier than anticipated
Dis-synergies have played out better than originally anticipated
Materially improved our balance sheet
Completed sale of European large joints business
Continued to grow core business well above market rates of growth

Reached Settlement Agreement in Metal-On-Metal Hip Litigation

Settlement addresses ~85% of known U.S. revision claims that do not have potential
statute of limitations issues and removes a great deal of uncertainty that has been
associated with this litigation

Augment Bone Graft: U.S. launch driving biologics growth

Continued to convert new accounts; over 775 surgeons trained since launch
Expect momentum to continue as we work through value analysis committee
approvals, add new customers and further penetrate top decile accounts
Evaluating future PDGF platform development opportunities
7

Why invest in
Wright Medical?

Leader in
fastest growing
orthopaedic markets
Multiple growth
opportunities and
robust pipeline of
innovative products
Accelerated path to
profitability, stronger
financial profile
8

Leadership in the fastest-growth

segments of the orthopaedics market
OUR
FOCUS

8%
to

10%

8%
to

7%

9%
5%
to

to

8%

6%

6%
3%
to

3%

4%

2%
to

3%
Lower
Upper
Biologics
Extremities Extremities

Sports
Medicine

Trauma

Knee

Spine

Source: 2014 iData Research Inc., 2013 Millennium Research Group, 2012 Life Science Intelligence, Management Estimates

Hip
9

Why invest in
Wright Medical?

Leader in
fastest growing
orthopaedic markets
Multiple growth
opportunities and
robust pipeline of
innovative products
Accelerated path to
profitability, stronger
financial profile
10

Multiple growth opportunities

Extend leadership
position in shoulder and
leverage sales force

UPPER
EXTREMITIES
MARKET

Accelerate foot &

ankle growth through
market expansion and
leverage sales force

LOWER
EXTREMITIES
MARKET

8 10%
CAGR

8 9%
CAGR

Leverage opportunities for

selling biologics across
expanded upper and lower
extremities portfolio

$2.7B

$3.7B

$1.7B

$2.8B

2014

2018

2014

2018

BIOLOGICS
MARKET

5 6%
CAGR

$1.1B
2014

$1.4B
2018

Available Market ~$8B

Wrights core upper/lower U.S. extremities

businesses growing ~2x the market 11

Strong new products lined up for 2016

and beyond
INVISION Revision Ankle System
Physician testing in 2016
Launch expected 3Q 2017

SALVATION Limb Salvage System

Physician testing completed
IN ROLLOUT

AUGMENT Bone Graft

IN ROLLOUT

Proven therapeutic option

FDA approved on September 1, 2015
$300M initial U.S. market opportunity

SIMPLICITI Shoulder System

IN ROLLOUT

First minimally invasive shoulder option in U.S.

$200M-$250M market opportunity

INFINITY Total Ankle Replacement System

IN ROLLOUT

Third generation design

Further penetrate end-stage ankle arthritis market opportunity
2015

2016

2017

12

Simpliciti Shoulder:
a highlight of our upper extremities product pipeline
Provides clinical benefits,
simplifying surgery &
reducing variables

U.S. launch in progress:

Ultra-short stem design 1st truly bone
sparing system in US
opens new market category

Designed for simple

revision/removal
Expands patient pool
surgeons willing to treat
Reduced costs and
inventory for hospitals

MARKET OPPORTUNITY (U.S.):

$200M-$250M

13

Inbone & Infinity: completing the options

Total Ankle Replacement
Continuum of Care
Designed to relieve pain and
preserve motion in arthritic
ankle joint
High growth, underserved
market
Powered by accuracy of
PROPHECY patient specific
guides
INVISION revision ankle in
development

MARKET OPPORTUNITY (U.S.):

$75M-$90M
14

Salvation: a promising new lower extremities

product portfolio
SALVATION Limb Salvage Portfolio
First comprehensive solution for
Charcot arthropathy and
advanced midfoot reconstruction

Fusion Bolts &

Beams

Large, underserved market

High ASP and resistant to price
pressure

Plating
System

Physician testing completed;

full launch in progress

External Fixator

MARKET OPPORTUNITY (U.S.):

$60M-$80M
15

Augment Bone Graft:

a game-changing biologic

BREAKTHROUGH BIOLOGIC
First and only proven alternative
to autograft for ankle and/or
hindfoot fusion
Demonstrates equivalent safety
& efficacy with less pain
Only synthetic growth factor to
market in last 10 years

PROVEN, UNIQUE,
LABELED AND SAFE
Recombinant human plateletderived growth factor (rh-PDGF)
stimulates bone formation
Provides a scaffold for new
bone growth

Avoids unwanted bone formation

in surrounding tissues observed
with BMP-based products
16

Augment accelerates Wrights

growth opportunities
TARGET MARKET #1:
Ankle Fusions &
Hindfoot Fusions
PMA-demonstrated
results
Eliminates harvest
site complications
Patients avoid any
donor site pain

Estimated potential market:

$300M (U.S.) per year

17

rh-PDGF platform accelerates

Wrights growth opportunities
FUTURE CLINICAL STUDY
OPPORTUNITIES:

Augment
Injectable

Chronic
Tendinopathy
(Tennis Elbow)

Rotator Cuff Repair

Spine
ESTIMATED POTENTIAL MARKET:

$2.0B+ per year

18

Global leadership, unique positioning,

multiple growth opportunities
VISION: Premier High-Growth

Extremities-Biologics Company
TECHNOLOGY
LEADER

SPECIALIZED
SALESFORCES

GLOBAL
FOOTPRINT

Dedicated to serving the needs of

extremity specialists with vision,
excellence and distinction
19

Why invest in
Wright Medical?

Leader in
fastest growing
orthopaedic markets

Multiple growth
opportunities and
robust pipeline of
innovative products
Accelerated path to
profitability, stronger
financial profile
20

Accelerated path to profitabilitymore

levers coming into play
STEP

STEP

STEP

Sustain revenue
growth/ minimize
disruption

Leverage existing
resources

MID TEENS GROWTH

once integrated

Deliver cost
synergies of
~$40M to $45M

adjusted
EBITDA margins
in 3 to 4 years

~20%

21

Complementary businesses

= minimal revenue disruption

Complementary Product Portfolios

Upper Extremities
percentage of revenue

81%
7%

Lower Extremities
percentage of revenue

Revenue
Dis-Synergies:
~$15M in 2016
incremental ~$10M
in 1H 2017

69%
13%
Based on 2015 YTD pro-forma revenue from continuing operations

22

Meaningful leverage opportunities with

existing resources already in place

Augment
infrastructure

International and
Back-Office
infrastructure

Manufacturing
capacity

Sales Organization
and Medical
Education

Inventory &
Instruments

23

Clear line of sight to deliver merger

cost synergies
Key
Synergy
Areas

Public company expenses

Overlapping support functions
Overlapping systems

Vendor consolidation
Process improvement

2016 anticipated
cost synergies of
~$25M

Anticipated
Year 3 Annual
Cost Synergies:

~$40M-$45M

24

2016 guidance

Net Sales

Adj. EBITDA

from Continuing
Operations(1)

from Continuing
Operations(1,2)

$677 million to
$683 million

$43 million to
$48 million

$
1 Guidance range communicated on 11/2/2016. The fact that we include these projections in this presentation should not be taken to mean that these amounts
continue to be our projections as of any subsequent date.
2 Adj. EBITDA from continuing operations, which is measured by adding back to net income/loss from continuing operations charges for interest, income taxes,
depreciation and amortization expenses, non-cash share-based compensation expense, and non-operating income and expense

25

Advancing toward our goals

+
3Q 2016
Non-GAAP
Results from
Continuing Ops.

GOALS

9%*

Mid teens

ADJ.
GROSS
MARGIN

78.2%

High 70s% range

ADJ.
EBITDA
MARGIN

4%

Adj. EBITDA margins

approximately 20%
in 3 to 4 years

SALES
GROWTH

* Pro forma constant currency sales growth from

continuing operations

Once Integrated
With Tornier

26

The New
Wright Medical.
A global leader on
an upward path.
POSITIONED TO OUTPERFORM
Merger creates premier
extremities/biologics company
Multiple growth drivers
Merger integration focused on
increasing business momentum
Accelerated path to profitability,
stronger financial profile

27

For additional information,

please contact:

Julie Tracy
Chief Communications Officer
julie.tracy@wright.com
(901) 290-5817
www.wright.com NASDAQ: WMGI

28

Wright Medical
A global leader on an upward path

Investor Presentation
November 2, 2016