CONMED (CNMD) investor relations material

Growth strategy and market positioning

• Focused on accelerated growth, targeting 5%-6% top-line growth in 2024 and double-digit EPS growth, with strong drivers in minimally invasive laparoscopic, robotic, and sports medicine markets.

• Key products AirSeal, BioBrace, and Buffalo Filter are central to growth, delivering clinical and economic value in fast-growing markets.

• Both minimally invasive surgery and sports medicine are seen as equally strong opportunities for share gain, with product growth drivers split between them.

• Global demand and procedure volumes remain strong, with a shift toward ambulatory surgery centers and private hospitals outside the U.S.

• The company benefits from the shift to minimally invasive procedures, aligning with its product strengths.

Financial performance and outlook

• Q2 2024 organic revenue grew 6% constant currency, driven by sequential improvement in AirSeal and strong BioBrace performance.

• Guidance for the second half of 2024 implies 6%-8% growth, with confidence based on commercial initiatives and international outperformance.

• International business, representing 45% of sales, is expected to accelerate, aided by regulatory approvals and new product launches in markets like Brazil.

• Margin expansion continues, with gross margins up 50-100 basis points and ongoing focus on free cash flow conversion and working capital improvements.

• Investment in sales force and R&D will continue, balanced with margin expansion goals.

Product and geographic expansion

• AirSeal shows high single-digit to low double-digit dollar growth, with clinical data supporting adoption and increased penetration in both laparoscopic and robotic procedures.

• AirSeal is present in about 6%-7% of U.S. laparoscopic procedures and 35%-40% of robotic procedures, with installations expanding globally.

• BioBrace benefits from strong market growth and clinical recommendations, with recent regulatory approval in Brazil and ongoing international expansion in Europe, Japan, and Canada.

• Sales force expansion and training are ongoing to support product adoption and growth.