Enovis (ENOV) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Key business updates and integration progress

• Raised guidance for the year after a solid first half, with expectations for accelerated growth in the second half and beyond.

• Focused on integrating the Lima acquisition, with 70% channel integration completed outside the U.S. and most U.S. overlap resolved.

• Provided additional historical disclosures to clarify integration impacts and seasonal effects from Lima’s international business.

• Dis-synergies from integration peaked in Q2, expected to moderate in the second half as cross-selling ramps up.

• Cross-selling opportunities, especially in the U.S. with new product combinations, are expected to drive growth in Q4.

Portfolio and product innovation

• Strengthened global shoulder market position to number three, with a mid-teens market share after the Lima acquisition.

• Launched AltiVate augmented glenoids, filling a key portfolio gap and expected to ramp in Q4.

• ARVIS augmented reality system for shoulder surgery received 510(k) clearance, with a limited launch planned for the remainder of the year.

• New hip stems and impactor devices to refresh the hip portfolio, aiming to regain share in coming quarters.

• Foot and ankle segment continues double-digit growth, driven by acquisitions and new product launches across all foot segments.

Financial performance and outlook

• Margins improved by nearly 200 basis points in the first half, with Lima accretive by over 100 basis points and further synergy benefits expected.

• Revenue guidance now exceeds $2 billion with margins approaching 18%, up from $1.5 billion and 14% margins in early 2022.

• Business now balanced between reconstruction and prevention/recovery, supporting strong cash flow and future investments.

• Integration of Lima and Mathys supports above-market growth, with cross-selling and operational synergies expected to sustain momentum.

• Positioned for continued growth through organic initiatives and bolt-on M&A, with momentum expected into 2025 and beyond.