Globus Medical

To become the pre-eminent musculoskeletal company in the world by developing products that promote healing in patients with musculoskeletal disorders.

MISSION

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GLOBUS MEDICAL OVERVIEW

• Founded in 2003 by an experienced team to create products that enable surgeons to promote healing in patients with musculoskeletal disorders.

• Experienced leadership team with over 200 years combined in the spine and medical device industry

• Comprehensive portfolio of Innovative Spine products

• Product development engine has generated over 180 productssince inception

• Worldwide exclusive sales distribution channel

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• 4Q 2018: Sales $195.9 million, up 11.3%• 2018: Sales $713.0 million, up 12.1%; non-GAAP EPS $1.68• 2018: Gross margin 77.8%, Adjusted EBITDA margin 34.1%• 2019 Guidance: Sales $770 million; EPS $1.72• Cash $602.8 million; Debt free

LAUNCHED NEW PRODUCTS IN SPINE• ELSA AL™, ELSA ATP™, ViaCell, Rod Link Reducer

INVESTED IN EMERGING TECHNOLOGIES• Robotics R&D and commercial sales force• Orthopedic trauma R&D and senior sales force management

ROBOTICS• Launched ExcelsiusGPS™ 4Q17• Surgical Trajectory Guidance and Navigation• CE Mark and 510(k) clearance• Acquired KB Medical, Swiss base surgical robotic company• Acquired Surgimap pre-surgical planning software company

TRAUMA• Entered $6 Billion Orthopedic Trauma market• Hired senior management to build commercial sales force• As of 1Q18 secured FDA 510(k) clearance on 11 systems

– Covering 75% of orthopedic trauma market

2018 HIGHLIGHTS

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• Leverage Integrated Product Development Engine• Continued Sales Force Expansion• Drive Operational Excellence• Investment in Emerging Technologies

GLOBUS STRATEGY

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• A “full bag” with over 180 products• 30+ products in development at any time• 5-10 product launches expected each year

• new products ‘12 (15), ‘13 (15), ‘14 (15), ‘15 (14), ‘16 (17), ‘17 (11)• Broad portfolio of issued patents and new applications

• Differentiated product pricing

LEVERAGE PRODUCT DEVELOPMENT ENGINE

QUARTEX™

CREO® & CREO AMP®

UNIFY®

RISE®MONUMENT®

KINEX® PLUS

FORTIFY® I 8

COALITION MIS™ MAGNIFY™-SCALIBER®-L

2003 2005 2007 2009 2011 2013 2015

Continuous innovation: from static cages to expandable technologies

Globus Posterior Interbody Fusion

SUSTAIN®-O CALIBER®

SUSTAIN® Arch RISE ®SIGNATURE®

LATIS®

LEVERAGE PRODUCT DEVELOPMENT ENGINE

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ALTERA ®

Exclusive U.S. sales force includes direct sales representatives and distributors

• Actively recruiting experienced sales representatives• Increase sales force proportional to sales growth • Robust sales training and development programs

CONTINUED SALES FORCE EXPANSION

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• Early stages of adoption• Leverage GMED sales force/relationships

Robotics

• Lack of innovation in market• History of collaboration with clinicians to

solve unmet needs

Trauma

Other Adjacencies

EMERGING TECHNOLOGIES

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ROBOTICS

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Why Robotics?

Minimally Invasive Surgery• MIS associated with Less blood loss, less muscle damage and

faster recovery• Today MIS is skill-intensive with large time/learning curve and high

radiation exposureRobotics Advantages

• Improve accuracy Reduce complications• Pre-operative and intra-operative planning Improve outcomes• Significant reduction in radiation exposure due to fewer images

Potentially Huge Market • Spine, Orthopedics, Neurosurgery

Competitive Advantages

Multiple Imaging Technologies• Pre-op CT, intra-op CT, fluoroscopy

Robotic and Navigational Capabilities• Streamlined surgical workflow with extensive instrumentation options

Intuitive User Interface • Touchscreen monitor and tablet

Rollout Plan

Submit to FDA 4Q16

Build/Train Capital Sales ForceMeaningful Revenue

20182016 – US Team2017 – Int’l Team

• Greater than $1B in Sales (13% CAGR)

• EPS Growth to exceed Sales Growth (14% CAGR)

• Multiple Robust Franchises• Spine• Imaging, Navigation, and Robotics• Trauma

1Assumes current foreign exchange rates unless otherwise noted. Adjusted financial results exclude special items. See www.globusmedical.com for information regarding Non-GAAP financial information used throughout this presentation, including adjusted operating margin and adjusted EBITDA margin.

2020 GMED OBJECTIVES1

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• Right, On Time in-house manufacturing

• Precision, timely and cost-effective manufacturing

• More collaboration earlier in the product development process

• In-house manufacturing of roughly 50% of products

• Counter lever to industry-wide pricing pressure

DRIVE OPERATIONAL EXCELLENCE

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Globus Manufacturing Expansion Plan

Geographical Diversification

• Looking to move and expand to separate location outside of Audubon, PA.

• Exhausted available workforce in current geographical region.

• Rapid growth due to recent launch of Robotics and Trauma divisions.

• Open to expanding/relocating other areas of the business (operations, product development, etc.) over time.

Facility Expansion

425 Stump Road Location – Approx 170K sqft

• Looking to make this location a full manufacturing facility

• Immediate and future renovations of approx. $5M which will include: – Electrical upgrades to run specialized machinery – Ventilation/HVAC upgrades which may include roof

support and upgrades– Parking lot expansion and improvements– Upgrades and improvement to existing office space

Workforce Expansion

• Immediate move of 150 skilled machinists• 150-250 additional jobs in 3 years. • Starting salary’s range from $30-$150k• Benefits include; health, dental/vision, 401k,

annual bonus & stock options, life insurance.

Estimated Employment & Compensation Impact

Relocating

Created

NPSD Residents (3)

Notes:

(1) Number of jobs upon full employment at project site (anticipated by Jan. 2023) per Globus Medical internal projections.

(2) Source of Multiplier – US Bureau of Economic Analysis, RIMS II, for Medical Device Manufacturing (Greater Memphis Medical Device Council, Economic Impact Analysis prepared by Younger Associates, November 2015).

(3) Assumes 15% of average-salaried campus employees will reside in the North Penn School District.

Direct Jobs (1) Indirect Jobs (2) Total Jobs

15024059

25040098

400640156

DirectCompensation (1)

Indirect Compensation (2)

Total Compensation

$7.5 Million

$12.2 Million

$3.0 Million

$12.5 Million

$20.4 Million

$4.9 Million

$20.0 Million

$32.6 Million

$7.9 Milliion

Relocating

Created

NPSD Residents (3)

Projected New School Tax Revenues

Notes:

(1) Projection based on (a) current School District millage rate (26.096) unchanged during entire period and (b) taxpayer pays tax within the 2% discount period.

(2) Projection based on Globus Medical employees only, excluding any construction jobs and any ongoing indirect jobs generated from the project.

Globus Medical: The project would generate substantial tax revenues for the North Penn School District – far more than alternative use of the proposed site

Property Taxes: The proposed Project is estimated to generate an additional $1.1 million of total school property tax revenue (1) during the construction period and the first 20 years of operation, if the proposed LERTA is approved by North Penn School District.

Earned Income Taxes: School District EIT would be an estimated $300 thousand over 20 years should 15% of average-salaried campus employees (2) reside in the District.

Realty Transfer Tax: The District would also receive Transfer Tax of $40 thousand.

Total Recurring Annual School Tax Revenue by 11th year: $480 thousand

Estimated School Tax Revenue Scenarios: Alternative Uses for Proposed Site

Over a 22 year period (2020-2041), Globus Medical would provide the highest tax revenues of various alternative uses for the proposed site

Current Use: If continued, would generate $117 thousand per year, or approximately $2.4 million over 22 years

Alternative Use 1: Globus Medical with 10-Year, 10% declining LERTA The project would generate an estimated $9.5 million in tax revenues ($3.5 million in

property taxes and $6.0 million in earned income taxes) This use would provide a return nearly 4 times greater than the current use

Alternative Use 2: Warehouse/Retail (same as before but new owner): Little or no new property tax revenue: About same as current use. Much lower EIT revenue: Fewer jobs, lower pay

Alternative Use 3: Convert to Another Housing Development?- School expenditures would potentially exceed new tax revenues…

LERTA Provides Key Economic Incentive Assistance

Goal: encouraging economic development in targeted areas

Property tax exemptions on improvements:- Up to 10 years- Up to 100% (may vary by year)

Improvements on vacant and economically underutilized areas qualify

Approval Process:- Step 1: School Board support indicated by Memorandum of

Understanding (“MOU”)- Step 2: Boundaries set by Montgomery Township Board of Supervisors

after holding at least one public hearing- Step 3: School Board Formal Resolution

School District LERTA Support:An Important Component of the Project

LERTA in Montgomery County: A Key Economic Development Tool- North Penn & at least 5 other Montgomery County School Districts have participated

(Hatboro-Horsham, Norristown Area, Pottsgrove, Souderton Area, Spring-Ford Area)- Most have adopted a 10-year, 10% declining balance exemption

Important component of total financial & incentives package- Significant factor in Globus Medical’s decision-making process- Improves economic viability of investment during initial years of operation- School District 10 year, 10% LERTA participation is critical- Globus Medical/School District partnership will have multiple positive outcomes

• Incremental economic & tax revenue impact will be substantial• Globus Medical would look forward to continuing its tradition of community

participation in partnership with the District

We respectfully request that the District participate in bringing this project to the community through favorable consideration of the LERTA proposal