2013-P04 Revenue – Recovery Sciences
2
ACTUAL
Business Unit Actual Plan
Var. to
Budget in
CC
Achiev. %
in CC
Prior
Year
Var. to
PY in CC
Growth %
in CC PF SPD
SPD
Growth%
in CC PF
G-A-S 3'422 3'948 -528 86.6% 3'613 -149 -4.1% 180 -9.2%
France 1'491 1'534 -43 97.2% 1'386 123 8.9% 78 8.9%
Canada 338 365 -34 90.7% 347 -0 -0.1% 18 -0.1%
UK 117 174 -55 68.5% 120 3 2.5% 6 -2.9%
Nordic 332 373 -72 80.7% 327 -7 -2.2% 18 -10.1%
Spain 634 634 -1 99.9% 534 107 20.1% 32 14.1%
Australia 95 85 7 108.3% 80 15 19.1% 5 12.5%
Italy 195 321 -127 60.5% 304 -107 -35.1% 11 -35.1%
Benelux 185 267 -82 69.4% 212 -25 -11.7% 10 -11.7%
South Africa - - - n/a - - n/a - n/a
China 157 86 71 182.2% -0 158 -82968.4% 8 ########
Direct markets 6'967 7'787 -863 88.9% 6'923 118 1.7% 366 -2.2%
Export 1'172 1'088 84 107.7% 1'026 146 14.2% 59 14.2%
Export Surgical - - - n/a - - n/a - n/a
Distributor markets 1'172 1'088 84 107.7% 1'026 146 14.2% 59 14.2%
Unallocated - - - - - -
Total 8'138 8'875 -779 91.2% 7'948 264 3.3% 425 -0.3%
PERIOD
2013-P04 YTD Revenue – Recovery Sciences
3
ACTUAL
Business Unit Actual Plan
Var. to
Budget in
CC
Achiev. %
in CC
Prior
Year
Var. to
PY in CC
Growth %
in CC PF SPD
SPD
Growth
% in CC
PF
G-A-S 14'666 14'822 -326 97.8% 14'758 -113 -0.8% 181 0.5%
France 6'001 6'185 -259 95.8% 5'855 133 2.3% 73 4.8%
Canada 1'605 1'771 -211 88.1% 1'720 -93 -5.4% 20 -3.1%
UK 448 571 -120 78.9% 428 31 7.3% 6 8.6%
Nordic 1'578 1'476 -54 96.4% 1'494 13 0.9% 20 3.4%
Spain 2'639 2'628 -21 99.2% 2'446 186 7.6% 33 10.3%
Australia 517 426 72 117.0% 359 166 46.2% 7 48.0%
Italy 1'062 1'356 -304 77.6% 1'363 -300 -22.0% 13 -21.0%
Benelux 910 963 -65 93.2% 851 56 6.5% 11 9.1%
South Africa - - - n/a - - n/a - n/a
China 389 512 -123 75.9% 324 65 20.2% 5 20.2%
Direct markets 29'816 30'711 -1'412 95.4% 29'600 144 0.5% 368 2.2%
Export 6'380 6'744 -364 94.6% 6'125 255 4.2% 77 5.4%
Export Surgical - - - n/a - - n/a - n/a
Distributor markets 6'380 6'744 -364 94.6% 6'125 255 4.2% 77 5.4%
Unallocated - - - - - -
Total 36'196 37'455 -1'776 95.3% 35'724 400 1.1% 445 2.6%
YEAR-TO-DATE
Country update Australia
– General RS business update • Overall YTD end of April RS up 39% on Last year 11% on budget.
• Direct NSW (New South West) Physio Channel Sales Team with combined portfolio (B&S, RS, Dr Comfort ) progressing well.
• Launched Wireless Professional – Australian Market will require Education around Active Stimulation.
• Current month RS on track to come close to budget.
Initiatives of the month
– Trained Practitioner Supplies Sales Team and Customer Service Team on Electrotherapy range, RPW, Artromot and Compex. Should see better understanding and Sales from them.
– Orthotic & Prosthetic Centre and Australia Medical Suppliers promoting the new Professional Wireless after Roadshow in April.
– Direct NSW (New South West Customers) email and Sales Team promotion of End of Financial Year savings on Mobile range.
Challenges / Issues to deal with
– EMS (UK) Electrotherapy recently introduced in Australia and New Zeeland by Whiteley Medical directly competes with Mobile range features and price, but with touch screen.
– Chattanooga range does not include Economy HiLo Treatment Tables so we miss out on most of the Treatment Table business in Australia. Allows Competitors to get new Clinic setups with competing brands of Electrotherapy.
– Quoting against Longest RPW Unit Customer is looking at bringing in 10 Units from China. Has been quoted $6500US each, but would need to pay freight.
Complemented Activities
• Practitioner Catalogue delivered to Direct Accounts in NSW.
• All Distributors trained on Wireless Professional plus updated new Sales members on the current Electrotherapy range.
Country update Canada
– General RS business update • P4 strongest Period in 2013
• 5/6 Chat Specialty Dealers attending June Global Dealer meeting in Las Vegas
• New hire in place (Derrick Nield)
– Compex Consumer/TENS HHC focus
Challenges / Issues to deal with
– May 1 2013 DJO Canada implemented basic function testing of ALL Chat product prior to shipping – this to combat high out of box failure rate.
– Results of first 5 units tested = 4 US failures
– Results of 24 units in stock = 4 Stim and 11 US failures • NOTE: Failure = non function or function outside of acceptable
range
– Support needed = Resolution
– Wireless Pro – registration?
Initiatives of the month
– Compex • Staff Training (Heiko)
• Event presence @ Vancouver Marathon
• Retail Dealer commitment (Vancouver)
– Non Franchise (Fast Freeze) • Email blast to bracing and supports customers yielded good
response
– Continue successful promo (accessory package) for Transport
– HHC TENS webinar program for national chains (Jimmy G)
– PT and AT National conferences this week.
“Highlight” of the month - ISAKOS
– ISAKOS Wireless Pro workshop • Immediate positive feedback on
Twitter from attendees (CDN PTs)
– Customer Visits with Johnny C
– Dedicated RS training day with Medelco (DJO Canada’s largest RS Dealer), thanks to; Johnny C, Farley B, Heiko V and Jimmy G
Country update
– General RS business update • RS P4 : 78 %
– Chatt ok
– CC weak
– Ormed : order pattern
• YTD : 95%
• P5 trend : 70%
• Shockwave business is difficult true FYZZIO , Pricesetting
Initiatives of the month
– Mailing Wireless PRO In BE-LUX true Stimform
– Wireless PRO day en evening on 16 th May
– Showroom Fysiosupplies , new businessbuilding
Country update: Netherlands
• General evolution
– The Dutch RS market is struggling. 20% of the Physiotherapy Practices goes bankrupt, due cutting down the reimbursement of Physiotherapy.
– The RS market becomes a “price fighting market”.
Initiatives of the month
– Wireless Pro tour: introduction of the Wireless Pro to POS and distributors
– Wireless Pro education tour: Creating workshops with some distributors.
– Mailing of the wireless Pro Brochures and video to existing customers.
– Region and Montane Action: trade in your old table and buy a new one. Old table goes to a charity organisation.
Challenges / Issues to deal with
– Delay of the RPW mobile upgrade, without any information.
– Competitors are decreasing their RPW prices.
– A lot of table actions with very high discounts also be done by competitors.
– More clarity about RPW mobile situation.
Complemented Activities
• Focus on new product Wireless Pro
• Sell Intelect Neo in English version with Dutch manual and maybe upgrade later, to have more revenue from this product earlier to compensate RPW loss of sales.
Country update
– General RS business update • Sales update
– P04 was a weak month. 81% vs. Plan looks really bad , it also reflects our ambition as it was 98% of 2012.
• General evolution
– No shockwaves were sold this month! Critical to reach our targets! Last year € 40.000 was representing Shockwaves in P04. So “base-line” business grew with +14% YoY. Analyse is that change of Sales Structure is working! DK is constantly overperforming electrotherapy. Cefar TENS was 50% of the entire RS turnover – passing magical 1.000.000 SEK (€ 117.650), only stimulators and in SWE. NOR is dropping, unmanned, recruitment on-going. FIN is building up direct sales tacticaly.
Initiatives of the month – Promo’s, roadshow, mailings
• Congresses attended; Naprapathy Practitioneers Annual congress, National sportsmedicina Association, Ort. Manual Therapists Congress.
• 2 inspirational Shockwave seminars hosted with strategic partner SECMA for Ultrasound diagnostics.
– Complemented activities • Activating launch plan “WS PRO-Excellence in execution”
Challenges / Issues to deal with
– Requiring actions • SWE Storz-distributor dumped pricing in mail campaign -
24%. Nordic has a clear strategy to deal with this in 2 ways;
– Remove focus on price as decision parameter by:
1. “100% satisfaction gurantee” (patient results)
2. Not loose a deal on price! DJOs stamina vs. Stefan Ahnén AB.
– Support needed • Ambitious 3 year plan demands new products.
• Discussions with Johnny (May 21-22th)
“Highlight” of the month
– Nice pictures • Good relationships with Norwegian distributor great when we
must tackle challenges there.
– Anecdote, order coming • SWE National Hockey Team therapist got so happy about his WS
PRO he´d put it on his FaceBook side.
– Something positive • (One of the only 2 in Nordic); UEFA-certified clinic in Nordic
invites DJO to consult how to implement more NMES in their treatment protocols this fall. Heiko will be involved.
France
– General RS business update
• Good P4 with + 8% compare to 2012 (1170K€ vs 1070)
• P4 Achievement : 99% Budget
• WS Pro sales : 106 units
• P5 starts slowly due to lots of days off
Initiatives of the month
National PT mailing (WS Pro Brochure)
Organization of >10 WS Pro PT training evenings
RPW National Emailing for demo
Challenges / Issues to deal with
– MEDEN Problem : contacts our main customers directly to sell their tables (close to Montane range) at a lower price
Decision after MEDEN’s visit ?
– RPW Price War – Storz direct
=> Decision after Manfred Schulz’s visit?
– Marketing Deliverables evolving on a Global Basis! • Pre-commitment initiative at Global Distributor Summit
• Intended to generate revenues at launch
– Initial launch - International to English-Speaking and CE Mark entities – September, 2013
– Graphic User Interface and User’s Manual Translations
– Establishing Concurrent Translation Plan • Spanish
• Turkish
• French
• German
Intelect Neo, Vectra Neo – May, 2013 Report
38 COMPANY CONFIDENTIAL
– Working with OEM supplier for a Chattanooga Cryotherapy Unit.
– Gate 1 has been signed
– Finalizing Design – June 2013
– Scheduled to show at Medica 2013
– Target Launch Date for Global – Q1 2014
Cryotherapy – Global Launch Product -
– Working with an OEM supplier for Chattanooga EMG Triggered Stim devices
– Identified opportunities for 1 and 2 channel units
– Scheduled to show at Medica 2013
– Target Launch Date for unit – Q4 2013/Q1 2014
EMG Triggered Stim – Global Launch Product
Single Channel Unit
41
Initiative Overview ▪ Expanding Patient Lift Line to become a full line
player ▪ Owner Brad Freeman
▪ Cross-functional departments
▪ Cross functional dependencies ▪ Engineering , RA, QA, PDM
▪ Target date domestic Sept 1st/ Actual Date Sept 1st
▪ Target date Intl 2014
Patient Lifts Initiative Milestones
▪ Milestones Completed ▪ Product gaps/opportunity identified ▪ Part Numbers/Descriptions/COR Initiated ▪ Forecast ▪ IFU User manuals drafted, labels under review
▪ Milestones Pending ▪ Regulatory assessment ▪ Catalog ▪ IFU & Label reviews ▪ Catalog ▪ Creative Brief
Risks/Challenges ▪ Risks/Challenges
▪ Technical Files not in order from vendor ▪ Up-to-date supplier agreement needed ▪ Engineering & regulatory resources needed ▪ Large amount of Marketing deliverables
▪ Mitigation Plans ▪ Weekly meetings with accountability ▪ Recruit additional in-house resources to
help
Financial Metrics
Company Confidential
Original Revised Variance
Revenue $225k $100k ($125k)
EBITDA $89k $40k ($49k)
42
ACTIVE-K Re-Positioning / Focus on ACTIVE Rehab
The ACTIVE motion device to be used right after the knee surgery • High efficient isokinetic muscle training • Specific preset treatment protocols for the
rehab after ACL/PCL, cartilage repair and prosthesis implantation
• Biofeedback and cutting edge sensor technique for a gentle and fast rehab
ONLY
THERAPY PROTOCOLS
Reduction /Streamline of Information, by different colored chip cards, reducing functionality
EVERYTHING (like today)
JUST ACTIVE Functions
FOCUS on pre-programmed THERAPY PROTOCOLS
• Reduction / MORE EASY therapy protocols
– Significant reduced functions in levels
– Faster and easier access to treatment for patients and PTs
– NEW Demo-Function in Therapy Protocols
(easy + fast training of different levels for patients + PTs)
Hardware Update, snow board binding, for a better guidance of the entire leg! Easy to mount on existing units.
BEFORE AFTER
• Too many options • Training protocols too
complex and too long • USPs unclear: CPM?
Active? Both? • Competition: unclear,
strong risk of cannibalization in rental business
• Active device* for active patients • Active 20: 20 min. rehab protocols • Active Control: biofeedback,
controlled motion, and documentation of rehab progress
• Active-Come Back: accelerated rehab with faster return to play
Summary Re-Positioning
* Passive motion build in but less relevant feature
Availability
47
ARTROMOT® Version: – Germany: Since February
– Outside Germany: Since April
Chattanooga™ Version: • ON HOLD
ACTIVE-K Sales due to re-design/-positioning:
48
Region Units
Germany 28
AS 19
Total 2012 47
Region Units
Germany 24
AS 6
Total Q1/2013 30
GAS
ESSD Congress ; 12 -14 Sept, Malmo
European Society for Swallowing Disorders ( ESSD ) will be holding its 3rd Congress in Malmo , SWEDEN .
DJO has agreed to be Silver Sponsor at this meeting ( details in next slide )
There will also be a PRE-Congress Workshop on Vitalstim – that will be conducted by Dinesh Verma and Prof Pere Clave ( President of ESSD ) and his team members.
Dr Radika has submitted her series of Case studies for presentation at the congress - as Vitalstim Therapy Outcomes – Asian Studies… This will further boost VS presence with clinical outcome sharing ( subject to approval and acceptance by Congress committee )
ESSD Silver Sponsorship Package - DJO
• the silver sponsorship package DJO would have is the following: • • SILVER SPONSOR 18,000.00€ • Recognition as SILVER SPONSOR on: • Congress website homepage with logo and link to sponsor’s website • One page advertisement inside congress programme, DinA5 size, inserted in all
congress bags • To organise a technical symposium limited to 30 min. • Recognition and logo in congress programme , inserted in all congress bags • Between session slides on auditorium screen and parallel room screen • 1 insert in congress bags (Format to be authorised by the organisers) • Complimentary space, (3 x 2) 6m2 for exhibition stand in exhibition hall used also
for catering and posters • 6 complimentary exhibitors registrations to congress • 2 Full delegate complimentary registrations to precongress course and congress •
COMING UP : Dinesh “promo tour” Europe
Dinesh will be planning a visit to European selected markets. His 4 day trip to Europe will target –
• Conduct Presentation and Demo with key customers / KOLs - an hour presentation on VITALSTIM Therapy .
• Provide KEY Selling points to Sales teams in respective countries so that they can go out and sell product with full confidence.
• Create interest among Dysphagia professionals about VS program and upcoming course at Malmo/
• Any other business / follow up and planning.
• DINESH WILL CONTACT YOU BUT IF YOU ARE VERY INTERESTED PLEASE PROACTIVELY REACH OUT TO HIM
Update on Travel /support Johnny – May
– Visit MEDEN table manufacturer • Main goal was manufacturing facility visit
• Situation with distributors selling similar products was discussed
• Adding a Low cost treatment table to our line might be a way for us to fix this situation (more detail will follow)
– Investigate the interest and potential for this product line
– More to follow
– Field visit Benelux (Stimform)
– In market Training RS team Germany
– ISAKOS Toronto & field visit Canada
– field visit in Sweden & strategic support RS DJO team
– Visit Spain - Wireless Pro introduction
– Work with Kai (and Yorick) on setting up Basic int’l RS training course
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